1.
Trade plan for Wednesday ✅
$S&P 500(.SPX)$ finished up day 2 of consolidation this week. We saw some relative strength in $NVDA and $META again today. If $SPX can breakot above 6251 we will see 6300. WAIT for 6251
$NVIDIA(NVDA)$ to 163 in play by Friday if it holds above 160 tomorrow
NVDA 160C very cheap for at the money. This can work above 159
$Palantir Technologies Inc.(PLTR)$ through 140 can run to 144-150 range
PLTR July 11 142C best above 140 as a lotto tomorrow.
We can see another range day tomorrow if $S&P 500(.SPX)$ stays under 6251 and $Invesco QQQ(QQQ)$ continues to trade under 556. BE PATIENT in this environment. Good luck tmrw everyone! 🫡
2.
The biggest mistake traders make when they first start out is focusing on the reward versus understanding how to manage their risk.
Everyone reading this post has a different risk appetite.
For some traders they can lose $500 and it will ruin their day. For another trader they can lose $5000 and won't blink an eye.
Once you understand your true risk, you will trade without emotion.
Size too big? Your emotions will control the trade.
Size for zero? You're in control.
What is sizing for zero?
Most people buy $1k of calls with a 50% stop loss ($500) .. Instead I would try buying $500 of calls to account for my max risk and allow the trade to see its full potential.
This strategy removes all emotion out of the trade and will allow you trade without fear.
Most traders size up too big too fast after a few wins and blow up their accounts. This is a big mistake and should be avoided at all costs. If you can master risk management, you'll be able to scale up over time gradually as your account grows.
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