Coming Back to Trading

 Hello all, Last day trade that I took was on October 29th, so almost a full month off as I'm getting back into the swing of things this coming Monday.

Halloween weekend was a good one, lots of stuff going on so wanted to leave the desk on a good note. Then shortly after we had a wedding party in Vegas so took the whole week off as a break looking to get back into things that next Monday on the 11th.

Trip was great, everyone made it home and then Monday morning happened. I was ready to roll and a friend texted us all that he tested positive for covid. And it was a snowball from there, fiancé went to work that day and as soon as we got the text, came right back home. I was sitting there 'trading' but didn't take anything. Market is a mess but that's a different story.

Pretty much convinced myself it wasn't time to come back yet. Fiancé tested positive yet I've been negative and feeling fine this whole time. Everybody is fine now, I wasn't feeling ready to come back yet. With our house being a covid house, we really couldn't do anything outside. Seemed like the perfect time to trade right? Heart was not in it.

I looked back and saw I hadn't taken a week off since 1st week in October, and before that, 1st week in July. To the guy that can do it 250 days straight no breaks, good for you. I'm not there and probably wont ever be. I need a damn break.

So I took a big one. Coming back on the 23rd, it'll have been almost a full month of no day trading. But I didn't completely avoid the market. I still woke up around the open, watched, and took several swing trades on options. Which has overall been a big success really. Main thing is getting calls further out so 1. I can have to time to sit through consolidation periods and 2. When it goes against me, there's still value left in the option, it doesn't just go straight to 0. 

The big takeaway from the break though is recognizing when I don't want to trade, and when I do. Flat out wasn't feeling ready to come back yet last week. But this week it started hitting me again. Started missing the grind and the process. 

So here I am typing it all out to help get me back into the flow of the daily routine again. 

I left off trading with my October monthly review. 

My biggest issue was risk. Inconsistent risk. 

Another was not cutting losers fast enough. I crunched numbers and found that only 10% of my trades accounted for 2/3rds of my losses this month. That number can be cu tin half by exiting faster and not waiting to see.  

And the last was not walking away after bad performance.

My solutions are 

-Account for spread in slippage in all entries. Scalps and reversals are at $25 risk. Big Picture trades and V-shape reversals at $50 and best big picture trades are at $100

-When the wave doesn't move in my favor right away, its not the one I'm looking for yet. I have to get out and re asses my adds. Keep the core, but the adds should not kill the trades potential p/l from exiting too late. I have to get out when it comes back on me. 

-I have new walk away rules I am using. 

All these plans, and a bit more with goals, on sticky notes next to me, and I have my big whiteboard back I'm using as a goal board to list what the goals are. November will be a short trading month for me but regardless goals are here and will carry over into December. 

90% Compliance. Exiting fast on losing adds. Correct risk to account for all variables. Walk away when needed to. All trades follow entry criteria. 

As for the market itself, things are pretty crazy looking. SPY at ATH but gaps everywhere, looking choppy making a big triangle now holding above big pivot level 354, but under old ATH at 359. Bulls win until they don't, all my swings I've been taking were calls and as usual, until the bulls lose, the long is on and I don't see them giving it up again anytime soon. 

Technically we are in good position for a bounce and more upside, pretty good looking bull flag, but seeing these gaps all lower we have a reason to fail this ATH breakout and fill those gaps in lower. So really I can see both ways from here. 

As for stocks, things just not clean. I am going through my list just about every day still and I'm grossed out by how things are looking. Not because I think they are weak looking, but just the chop and lack of clear direction. Tight ranges, big breakouts that come back in range, then break lower, then back in range. MAs catching up and not acting as S or R. Its ugly out there. Probably chose a good 3 weeks to not day trade.

So overall market is telling me I really need to be selective and not settle if things out there are not clear. 

Typing this up makes me feel ready to roll again. Will keep the blog posts coming on Monday.