Two absolute Goats of investing.

Tudor Jones is one of the most impressive interviewees along in Market Wizards books along with Druckenmiller. Nice interview here.

Day traded $CVX short today. Which isn't what I'm about these days but on very directional days like this when everything is coming down and I'm clearly not going to be trading swings then I don't mind.

I prefer these sort of Shorts than any other form of day trading. They're quite obvious and the risk is easy to manage. The problem with day trading is you usually need to anticipate the move somewhat unlike swing trading where you can afford to wait for a break of a certain price and you don't have to be in in seconds. In day trading you are on such fine margins that every cent counts. Which is why I find it unsustainable. Never the less here is the trade. I shorted at the top of the bar with the arrow and closed the trade near the bottom of the bar.

Because it's a day trade I am comfortable using very large size (+margin) knowing that I have about .30 cent per risk per share on a solid probability trade. I'm in and out 3 to 1 risk reward. Moving my stop down to breakeven minute after the trade moves my way and peeling into the weakness.

The problem with these trades is they are difficult on "normal" market days. Days like today are not too common.

Sharing out of interest not as advice!

This is a really lovely new feature from Tradingview & Interactive Brokers allowing people to trade and see their portfolio directly from Tradingview! I’ll certainly be using this.

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https://commonstock.com/post/cb641f0d-0364-43a0-a2e3-06b90a7d88a1 by @richardmoglen

https://commonstock.com/post/46452989-3abe-4b8a-9e6d-00b06e09a723 by @007

I must say that his book How to Profit in Bull & Bear Markets has been one of the most enjoyable books I’ve read so far.

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Note: No trades were made yesterday 8th June 2022.

Still optimistic going into today. Market still in a tight formation with plenty of setups looking decent. CPI Numbers tomorrow will likely move the market one way or another.

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Reviewed some charts this morning. Nothing too taxing. Added $OLPX to my focus list with a nice setup on a recent IPO. In Stan Weinstein's book he describes recent IPO's being different in terms of analysis. Overhead resistance is not as important. I like the accumulation here as pointed out and the volume dry up the past few days.

I also had an interesting discussion with @europeandgi today about one of his holdings, $XOM. The stock has advanced quite a lot and we were discussing whether it would be a good idea to sell some calls against the position as a form of hedge. The stock is right at the cusp of All Time Highs. Despite being somewhat extended (Up almost 240% from Oct 2020) it is showing phenomenal RS (Relative Strength). I crudely drew what I would like to see it do to be very bullish. Essentially what I drew is a VCP Pattern (Volatility Contraction Pattern) coined Minervini but a pattern of supply vs demand that has been visible in stocks going back 100 years. It is quite noticeable in the highlighted area from 2021.

Long story short, to me, the stock is still very bullish technically and with some healthy consolidation could easily push much higher. Figuring out tops perfectly is impossible but one can use the weight of evidence to ride their winners as long as they can.

Lastly I identified $SPOT as a nice looking short setup if the market turns sour. I would consider getting short on a break below around $110. With a target of $90.

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I bought $OLPX about an hour into the market today. After a soft open I saw it advancing. I have posted the Hourly chart below for some context on where I bought. Unfortunately we pulled back but it remained relatively strong until late in the day when everything really pulled back. My stop is at $13.80 so there is still plenty of space for it to gyrate.

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The market dumped into the close. I have moved to caution. My positions held up relatively well but if the market is on not on my side then my positions will go nowhere. Tomorrow the CPI print will likely decide a direction. If we continue to dump tomorrow I will cut my positions and go back to cash.

I will be reviewing my trades somewhat. I think I might be jumping in that bit too early at the moment in terms of entry. Trying to gain that extra few cents when I should probably be waiting for more proof that the breakout isn't failing. I don't want to read too much into it considering conditions and only a few trades as sample size but it's something I am aware of.

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Notes & Open Trades:

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Please note I operate my risk with options that I can lose 100% of the premium. This is the safest way to trade them in my opinion. Even if I cut at 50% once I am setup to lose 100% within my risk threshold then I will stay ahead of my required R:R.

Today's trading journal is brought to you by IBKR. I use IBKR as my main brokerage for both investing and trading. The ability to be able to easily set up sub accounts within my main brokerage and transfer funds between them is one of my favourite features in Interactive Brokers and allows me to easily track and switch between my Trading Acc. vs my Investing Acc & my Son's account! You can check out the platform here.

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Still cautiously bullish with the indices chopping sideways and building energy for a big move. Each pull back is holding short term moving averages (10/20MA). It seems to me we are setting up to test the 50 Day MA area. What happens after that I have no idea.

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I spent my pre-market time today reviewing some of my watchlists and deciding how I would clean them up a bit. As has happened to me in the past, I've been missing a few setups and breakouts that I had identified by not tracking them effectively.

I need a much smaller FOCUSLIST along with a tiered Watchlist system. Also I have become a little frustrated with some aspects in TradingView, sometimes I realise it can be a bit "retail" when it comes to wanting to scan and see some additional information that is useful for a trader. Which is a pity because I love using it to look at charts. As mentioned previously I also use TC2000 which is a much more powerful scanner for a trader. I've decided to move the bulk of my watchlists over there and make use of that platform more whilst continuing to use TradingView for lighter work. See the platform below:

​Note I have Created "FocusList", "Watchlist", "Tracklist". I will use these tabs to try to rank my setups and stocks I am monitoring.

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No trades for me today. Just monitored my positions. Nothing to worry about going on in my opinion with my holdings and a nice powerful move by $ZM. I did not add to the position but may consider doing so if the week continues strong. $ASH had a breather day and $SHLX is still looking solid.

$CELH stood out to me today as a stock that could be getting ready to move upward if the market has a sustained rally.

We are sitting right at the 200 Day MA which is flat. Definitely one to watch.

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Improving your system all the time whether for trading or investing is very important. Consistency in your process and routine helps create balance and in turn feed the potential to make good decisions on a regular basis. This can take the form of a journal, a notebook, checklists, reminders. Whatever it is try to improve slightly every day and every week in all aspects of life. That is what I am trying to do.

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Notes & Open Trades:

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Please note I operate my risk with options that I can lose 100% of the premium. This is the safest way to trade them in my opinion. Even if I cut at 50% once I am setup to lose 100% within my risk threshold then I will stay ahead of my required R:R.

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News: I am delighted to have partnered with Interactive Brokers for for the next few months. I use IBKR as my main brokerage having tried many others including Degiro, Tastyworks, Trading212. For a trader or investor based in Europe it is by far the most powerful and professional platform to use long term in my opinion. I'll be writing some more about it's pros and cons going forward but for now if anyone has any questions please feel free to DM me or comment below. You can check out their platform here: Interactive Brokers - Please note I do not receive any bonus or referral if you sign up, I will speak honestly about my experience (good and bad) with the platform and others. Thanks for the support!

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Recap from last week: My better half had an appendicitis last week so I was trading minimally and didn't have time to do my write ups. On Friday 3rd June I traded $HDSN & $SHLX. On the former I was stopped out as it reversed quickly. In hindsight the volume wasn't there. I'm still in $SHLX from $14.39 with a stop at $13.80. So far it hasn't made the move I wanted but it's in a strong sector with a good setup.

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I did not do much work last week except work on some scans and I also want to streamline my watchlists a bit better. I currently use TC2000 & Tradingview. I love tradingview for many things but they fall down with scans and the speed at which you can go through watchlists. I think I need to have only my focus list on there and use TC2000 for everything else including my sector lists. This will require a bit of work.

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Situational awareness:

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Cautiously Bullish on Monday. The market is coiling for an explosive move one way or the other. I believe that will be upward but my belief is of course weakly held.

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Pre Market Work:

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Chinese names rallying early pre market. I had been keeping an eye on $PDD other names with a lot of volume were $FUTU & $DQ. Regardless of big moves none of these names currently meet my criteria to trade in terms of a proper setup. I am also on the fence on whether I would even want to trade Chinese names, however it must be considered if they show significant accumulation and trend. So far they have not in my opinion.

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$ASH a Chemical name had a nice setup and a strong pre-market volume. It also had a positive shake out in the last week or so testing the 200 Day twice with a strong bounce on the second time around. Some other notable names I've mentioned recently were $BMBL & $DOCN both of which are continuing to set up well for a longer outlook.

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Trading day:

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Identified in Pre-Market I took $ASH at $111.20.

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Notice the higher than average volume on the day + RS + Price breakout. To me this looks like a positive name to be long despite the fade with the market late in the day.

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Shell stayed largely flat for the day and $ZM. was all over the place but it's range is still very tight with the moving averages converging more each day. On a breakout from this point I would considering adding to my call spread position which is currently slightly in the green. Notice the volume dry up in orange.

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End of day Thoughts:

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As mentioned in pre market I certainly wish to improve my watchlists. They're pretty good but some fine tuning and ability to scroll through them quickly would help. I also want to develop my scans a bit more in TC2000.

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Notes & Open Trades:

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Please note I operate my risk with options that I can lose 100% of the premium. This is the safest way to trade them in my opinion. Even if I cut at 50% once I am setup to lose 100% within my risk threshold then I will stay ahead of my required R:R.

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