It's not an official trading day, but I am trying to get used to waking up an hour earlier to trade. I AM keeping things kinda official by doing some paper trades just like I would do things for real.
When I looked at marketwatch this morning, I thought that maybe I'll get lucky and things will go just like it did yesterday.. a nice bullish trend. It looked good as this was how marketwatch was at that time..
However, the charts were not as strongly bullish..
the winds might be changing, or maybe price will bounce and head up some more..
On the 15-minute, it's more clear that price has indeed turned bear and is at the start of a possible big move down..
It's also a clear bearish move on the 5-minute. I want to get in on this now and hopefully ride it to a quick win.
the moving averages are nicely widening, but price is already at the 100 ema (the orange line), so I was worried it might bounce off of that.
I always SELL my options on the option chain. The option I always sell is called a 'vertical'.. it's actually 1 complex strategy, made up of 2 single options. (sell the strike price at the delta of the trade, then BUY another option further away from the money) This is to offset the risk which, if sold (or bought) just as a single option would require A LOT of buying power. (currently, to sell a single option all by itself would cost $76,000 in BP)
Price was dropping fast and I did increase my wingsize to 10 wide asking for .95 in credit. The order filled almost instantly and I received 1.20 for the trade! That was great, but it meant that the market was very volatile at the time, and I could easily LOSE my trade, just as I could easily WIN the trade. I stuck to my plan and opened my closing order for a .50 target, or a 1X stop.. but since the market gave me 1.20 (.25 more that I wanted), I adjusted my usual 1X stop (which in this example would've been 2.40) to a stop of 2.00.. that was what I was willing to risk on this trade.
You can see from this snap I took right after the trade ended, that price ALMOST fell enough right after I got in, but pulled up for a while, before heading down to hit my target, all in 1 big red candle.
Here's the final result..
