Daily Recap: A Profitable Day of Patience and Strategy

Today was a great day! My patience paid off, resulting in a profit of $94.35 and bringing my account balance to $1,159.85. Although the day started with a less-than-ideal trade, I made up for it with a solid second trade. Let’s break down the trades.

Trade 1: ZAPP

My first trade of the day was ZAPP. I entered at $13.30, right when it broke out of the opening range high. This was not a great entry, as the price immediately corrected. I was testing the idea of breaking out of the opening range, but it didn’t work out this time. This strategy seems to require a stop loss set to the low of the opening range, which usually involves a large price gap and a very small position size. I didn’t like this strategy and probably won’t use it again. I hit my arbitrary stop loss at $12.91, resulting in a loss of $13.65—not terrible, but not ideal either.

Trade 2: IVP

My second trade with IVP was much better. I decided to try the ABCD pattern with a strict stop loss. The advantage of the ABCD pattern with a strict stop is that losses are typically small, as I aim to enter close to my stop. I entered at $6.80, right when the second candle (after the low) turned green. I prefer the ABCD pattern because I enter before it breaks the previous high, offering a better reward if the trade goes my way.

In this case, the price ramped up heavily and halted for 5 minutes due to the rapid increase. After the halt, the price gapped up well over $8.00. I decided to take my profits, as this was already well over a 3:1 risk-reward ratio. Despite some slippage due to high selling activity, I exited at $8.24 for a gain of $108.00. This was about a 5:1 risk-reward ratio—super awesome!

Conclusion

Overall, today was much better. I focused on practicing patience and looking for better trades. The first trade wasn’t a loss due to impatience; it was just a flawed strategy. However, the win on my second trade was definitely due to patience and choosing a better setup. Patience and strategy really paid off today!