Hi, everyone!

I’m a newer trader. Learning some emotions and finding my system, keeping my account small right now with just $200. I would love some of your input here.

I entered a trade today on SPY (bought 1 put at 0.75) with a price target of 423.2 in what I thought was an intraday supply zone/resistance level.

The trade ended up hitting my SL before reaching my PT. $-20. For reference here is a picture with my entry and SL being hit. Based on this the R:R was 2:1. If I saw strength through the 423.2 level, I was going to set an SL at the point aiming for a PT of 422.5 with a r:r of about 4:1.

I’m assuming that this was a liquidity sweep by institutional traders, given that it sort of false broke out before going to the target level. Additionally, there was some earlier supply at this level following the morning breakdown (which I did trade but sold too early). I ended the day -$8, but I wanted to see if you guys had inputs on why that was a bad entry point or if there was bullish sentiment given the reversal structure going on.

Further, does anyone trade with liquidity sweeps and if so how? This has happened to me a few times in the past so my account is even on the 8 or so trades I’ve taken (usually take 1 or 2 a day).