Compounding your account at a 15-20% rate will unlock financial freedom you would never have imagined.
Don’t go in everyday looking to yield the same return. Look for the days or trend you optimize in.
Did not plan to place a trade at all today but saw $SPY was forming a bullish structure.
My two trades were mainly focused on $740 $ $741 option calls.
$740 calls were instantly profitable after we broke ORB high of $739.25 and my plan was to let runners run while moving stops in profit up.
$741 calls trade idea was mainly focused on rolling over profits secured from the first trade for continuation. Same methodology was applied for moving stops into profits and moving it up after securing equity.
My focus was trading a bit tighter today and letting my runners run after securing equity out of the position.
Trading doesn’t have to be difficult if you have a plan in place and follow that plan.
A strategy I like to use when trading $SPX is setting up a bracket and trailing the stops in profit on break out or reversal plays.
Once structure is established I tend to allow trend to carry the contracts up. If it fails and invalidates my thesis and stops me out I’ll revisit the trade if the structure still stands.
Premium tends to move on breakouts with vega pushing delta. It has a slimmer chance of returning to your entry point if price action pushes. A stop is still a win in my books considering you followed your rules and understand why you were in the trade.
For my example of the trade if SPX continued pushing beyond $9.20 high on the premium it should not deviate back to my stop unless price action rejects.
As all things do not remain constant, the same applies to trading. You always need to account for variance and price manipulation when entering in a position with a thesis.
My thesis for the trade was similar to my $SPY trade where we had developed structure and we were holding above ORB high. These two confluences with a gap fill above gave me enough reasoning to test out longs.