Daily Recap: Patience Pays Off in a Slow Market

Today, I took a much slower approach, spending most of my time watching the market. There weren’t many opportunities that fit my strategy, and while there were potential entries, most would have likely resulted in stop-outs. This led me to be cautious, opting to observe rather than trade impulsively. I ended up taking just one trade, but it was a successful one, ending the day with a profit of $62.16, bringing my account balance up to $1,098.00. Let’s break down the trade.

Trade on BOF

BOF caught my eye today due to some positive news, leading to a gradual premarket gap up. At the open, the price initially sold off, ramped up, and then started to sell off again. There was an entry point early on, but I decided against it because my 7-cent offset would have likely resulted in a stop-out. I stayed patient, monitoring the stock throughout the day and passing on a couple more entries that would have also stopped out.

Late in the day, I saw another entry opportunity. This time, I waited for the price to dip below my entry point and then come back up, hoping to avoid entering on a potential downtrend and ensuring my stop loss would be sufficient. I entered at $1.38 with a 7-cent stop loss at $1.31. The price fluctuated for a bit before suddenly surging, hitting my 3:1 RR take profit in seconds. I exited at $1.59, securing a profit of $62.10.

Reflection

I’m proud of my patience today and my focus on observing rather than forcing trades. By waiting for a setup I felt confident in, I managed to make a profitable trade. I’ll continue refining my understanding of the market and aim to make well-considered trading decisions moving forward.