Irish Born Investor's avatar
$16.6m follower assets
16th June 2022 - Trading Journal & Market Breadth
Today's trading journal is brought to you by IBKR. I use them as my main brokerage for both investing and trading. As a European investor I have tried several different platforms and I can safely say they have the most comprehensive platform available to any EU based investor. In terms of platform power, safety and products (Stocks, Options, Futures etc.) You can check out the platform here.

Market Outlook:

I want to develop this section somewhat along with the tools I use to measure the market. I have been building some simple market breadth indicators and charts. These could be very useful to any trader or investor. h/t to StageAnalysis on Twitter for some inspiration on these. All of these are built in Tradingview.

$QQQ Stocks Above 100 Day, 150 Day & 50 Day

$SPXC Stocks Above 100Day, 150 Day & 50 Day

$SPXC $QQQ $IWM Stocks Above Short Term 20 Day Moving Average

$SPXC $QQQ New Highs/New Lows

The above charts are useful warning or buy signals. For the moving averages you want to see at least 30% of stocks move above the main averages before considering a buy and you want to see that trending upward. Same for New High/Lows. As you can see today we have made 618 New Lows while only making 2 New Highs! That is not a market you want to buy!

Pre Market Work:
Only stock that caught my eye today was $GO. But not looking for any swings while this level of selling is happening. Trimmed all my watchlists with the stocks that have been badly broken the past week.

Trading Day:
Executed a small but good $SPXC futures trade toward the end of the day today. I entered at $3642.00 with a stop at $3635 and a profit target of $3665. I sold after a few minutes at $3670 exactly. Perfect in and out trade. It's really nice when they work like this.
End of day Thoughts:

It's very important in a market like this not to force trades. I've said before that if I try to consistently day trade I get frustrated. When I am working toward swing trading it's interesting I find the one or two hit and run day trades much easier. It's as if there is no pressure and I am far more patient. It is such a different feeling to sitting down at the beginning of the day searching for trades to make.

I hope we begin to level out soon however for now I will remain patient and look to make small moves or none at all. Tomorrow is a large options expiry date volatility and shenanigans will be high!
Notes & Open Trades:
  • No Positions

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.
Zack Morris's avatar
Good on your for keeping a trading journal. I've started at least 3 times but it never sticks. Do you journal daily?
Irish Born Investor's avatar
@zmo yes, any day I trade. Sometimes I’m not as good and if I wasn’t writing in Commonstock it would probably be shorter on days like yesterday but I find it very helpful posting it here to provoke my own thoughts and ideas.

In terms of doing it my opinion is if you can’t be consistent doing something like this then you’ll find it difficult to be consistent in your trading. Or at least that’s a lot of my purpose for doing it to develop that consistent habit.

Zack Morris's avatar
What consistent trading habit are you trying to develop?
Irish Born Investor's avatar
@zmo zero impulse. It’s very hard to write something down then ignore it. If you don’t write your thoughts they change quickly in your head to suit your narrative depending on your mood. Reducing that impulse to trade or look for action is very valuavle
Zack Morris's avatar
@irish 2 follow-ups (honestly curious because as I've said, I've tried and failed at this habit 3 times):

1) do you type or write? do you find there's a difference for you?

2) have you ever missed out on an idea because you resisted impulse/wanted to study further before acting?

I ask #2 in particular because I just watched this interview with Druckenmiller where he talks about his philosophy of "invest, then investigate." Which is counter to what I try to implement (not necessarily counter to what I do implement lol).

Basically, Druck says that in his opinion markets move so fast today that he prefers to invest on intuition and size up on conviction.

Indeed, I've found that my largest errors over time have been errors of omission not errors of commission.