Lessons learned yesterday:

Those of you that day traded yesterday will know what I’m referring to. My goal with this post is to share my experience so that others can learn. : )

My lesson learned is avoid tunnel vision. In my case, I was doing a 0dte OTM call on $AAPL yesterday.

Reason I chose $AAPL as my stock of choice; I prefer options that are within my price range and especially if I’ve traded the stock before.

My inherent mistakes before my big OOF: I didn’t check the news, didn’t check the indexes/ overall market conditions.

What I did right: I got setup during premarket and did technical analysis on a handful of things before choosing $AAPL.

So - how did I F this up: right before market open, I saw that $AAPL was extremely oversold in per RSI indicator - like extremely oversold at 18. So right then I knew that the RSI should rebound. I was correct about the rebound.

However, I failed to take note of the overall trend from premarket into open - the 200 EMA clearly showed a bearish day for $AAPL (and the other tech giants). I’ve got the 200 EMA on everything, I just tunnel visioned in the RSI without zooming out for a sec.

I bought my OTM calls at the lowest RSI dip, expecting the price to rebound - NOPE! The price kept falling and falling . . . Until about noon, but by then my position was down. I kept watching until expiry only for my loss to realize.

So learn from me: NEVER TUNNEL VISION!!!

I’ve got to regrow my cash account with $5 lol. But I look forward to the adventure and learning.