Daily Recap: Balancing Patience and Opportunity in Trading

Today, I focused on exercising patience, waiting longer than usual to enter trades. My goal was to avoid the initial market volatility and find more stable setups. While waiting nearly 30 minutes seemed beneficial, I missed a few early opportunities. Moving forward, I may adjust this to around 15 minutes to strike a better balance. Despite some challenges, I ended the day with a profit of $22.75, bringing my total account balance to $1,252.82. Let’s dive into the details of my trades.

Trade 1: AEON

I aimed to play the bounce off the VWAP, hoping to catch a resurgence in momentum. However, the momentum had already faded by the time I entered at $3.12. In hindsight, an entry around $3.00 would have been more optimal. I attempted to utilize the ABCD pattern, but the pullback was too prolonged, indicating weak buying momentum. This entry lacked confirmation on the 5-minute chart, leading to a stop out at $2.97, resulting in a loss of $26.25. Moving forward, I need to enter resistance bounce trades much earlier to capture potential gains or minimize losses.

Trade 2: VRPX

This entry wasn’t ideal either, as I bought in after the momentum had decreased, evident from the low volume. I entered at $1.42, setting my stop at $1.32, the previous low. Fortunately, the VWAP resistance held, and the stock gained momentum a few minutes later. I progressively moved up my stop with the uptrend, eventually getting stopped out at $1.56 for a gain of $49.00. Although this trade was profitable, I recognize that it was partly due to luck. I need to ensure my entries are backed by solid upward momentum.

Summary

Overall, I ended in the green today, but my trading performance was subpar. Improving my entry points and ensuring stocks still have strong momentum before entering are critical areas for improvement. I’ll continue working on patience and finding the right setups to enhance my trading success.