Today was a day that reinforced a lesson I've learned over my 11 years of day trading: experience is invaluable. As I navigated the SPY trades, I was reminded of the importance of trusting my instincts and the patterns I've come to recognize over the years. The day started with a straightforward plan: execute a short at the open if the price popped into a predetermined level. This plan was based on the blue levels I had marked before the market opened, which I use to develop my trade strategies.
The morning trade was executed flawlessly, and as the day progressed, I found myself teaching a live trading class. This was an opportunity to demonstrate the nuances of trading, particularly how premium behaves. The premium was melting down, and I wanted to show my members how it would react when it came back to the strike price. As predicted, the premium exploded, a testament to the importance of understanding how these elements interact.
The real lesson of the day, however, came from observing the chart's behavior. As the price cruised up at a 45-degree angle, I knew from experience that this was a signal to avoid shorting. I've seen this pattern countless times, and it always leads to the same outcome: a big green day with minimal pullbacks. It's a look that I urge traders to memorize, as it can save them from making costly mistakes.
Experience has taught me that when I say something is going to happen, it often does. This isn't just about predicting market movements; it's about recognizing patterns and understanding the market's rhythm. For those new to trading, it might be tempting to short during minor pullbacks, but as I've learned, this can lead to fighting the market all the way up. Trusting in the patterns and having the discipline to follow them is what sets successful traders apart.
In conclusion, today's trading session was a reminder of the power of experience and the importance of trusting in the patterns that have proven themselves over time. As I locked in a $2,205 profit, I was reminded once again that in trading, as in life, experience is the best teacher.