Warrior Trading Blog

$1.3K A Day Keeps The Job Away! | Ross’ Trade Recap

ross recap 7/06

What’s up, everyone? All right, so here we are at the end of a holiday week, the end of my second week of trading in our new office, which I’m still getting set up, but I’m loving it. I’ve got the fiber Internet.

 

I’ve got this nice space to work in, and the last two weeks, they’ve been pretty good, $26,000 last weeks, 12,000 this week, $38,000 in two weeks, so I’ve broken in the space with some big winners, and I’m really happy about that, finishing today up another $1,300, which is good.

I’ll say that the momentum today wasn’t as good as it was yesterday. Yesterday was a $7,000 day, but it wasn’t horrible. There were some opportunities. The biggest one was on XBIO, as that squeezed up from about $5 all the way up to $6 and I think it was 20 cents, so that was a pretty big window, and I was able to capture a couple of small moves within that range, which was good, so finishing the week with green trades, on a green note. I feel good about that, and I’m excited to go into the second week of July.

Now that the kind of 4th of July holiday is behind us, we can really get out of it. We’ll have regular weeks of trading for the rest of the month, and I want to really stack up those profits as much as I can because July is typically a slow month for me, and so the fact that right now it’s been pretty good, I want to strike while the iron is hot and make as much as I can.

All of you guys who watch these videos, whether you watch and you’re thinking about trading or you’re currently an active trader, anyone who’s not already a member of the Warrior Trading family, I want you to go over to the website right now, warriortrading.com, and join, whether it’s the monthly chat room, the Warrior Starter, which includes chatroom and some access in our classes or the Warrior Pro Course, because we are still running our 4th of July Special.

4th of July, it’s all about freedom and independence, the two things that got me into the markets, all right? I want you guys to join. I want you to become part of the family so you can watch over my shoulder every single day while I’m trading, all right?

Now, let’s break down the trades from today that helped me give me … that helped get me $1,300 of profit, and if you guys have any questions, any comments, leave them below because I’m going to come back through it later today and over the weekend and then answer them, so I hope you guys enjoy and I’ll see you first thing Monday morning.

All right, everyone, so we’re going to over our trades from today, midday market recap, finishing the morning up $1,366, which is not too bad. Green is good. This is not going to be the biggest day of the week for me, but it’s another thousand bucks, and I’m happy with that. This has been so far a great start to the month.

Let’s see if I can pull up my trader review stats here, so let’s go down month of July. Monday, I made $8,000. Tuesday, I lost 2,800, and then, Thursday, I made 7,700, so plus 1,300 today, that’s a $12,000 week in four days of trading, which is terrific, so off to a really good start here.

If we look at the detailed … you’ll see … Let’s see. Let’s just look starting for the month, look at net … Let’s see starting July 2nd, so this was as of yesterday, $10,812, average winning trade, 580, average loser 702. I had a bigger loss, a bunch of small winners, but percentage of success is 70%, so the accuracy is on point, and I just need to get a couple of those bigger winners to help really boost up that average winning trade, but, overall, this is pretty good.

When you look just year to date, for instance, you’ll see my average winners are closer to a thousand bucks, $1,200 average winners, $1,100 average losers, up $3,025 on the year before today, so things are looking pretty good for 2018.

I finished 2017 with $335,000 of total profit in my small account that I started with less than 600 bucks. I had another 50,000 in my main account, so that was 380,000 right around there for 2017, so once I break over 380,000, this will be the new best year of all time. 380,000, last year was the best year I’d had, and it looks like I’m only about 50,000, 60,000 away from that level, and it’s July, so that’s good. That’s really great.

The thing is when I started trading, I wasn’t thinking about making $1,000 a day. I wasn’t thinking about making $5,000 a day. This year, I’m averaging … My average daily gain or loss is $2,659 of profit. Think about that. How many jobs do you make $2,659 per day? There’s not a not a lot of jobs where you can get that, and the ones that you can, you need to go to school for a long time to get there.

Remember last week we were talking about the orthodontist who’s got over $1 million in student loan debt, and he’s making $250,000 a year, and he’s just paying the minimum interest on his debt, so I’m making more than him and I didn’t have to take out $1 million in debt to be able to get here. I don’t have any student loan debt, so it’s obviously a pretty awesome career, but the reality is trading is not for everyone. Not everyone is going to get it. Not everyone is going to have the mentality to be able to do it, because not everyone is going to feel comfortable taking the risks that we have to take every single day, so it is a select group of us who have what it takes to be traders.

One of the things you’ll realize is that, once you have all the people who have what it takes to be traders, the sad thing is, even though they have what it takes, a lot of them will still fail, and they’re going to fail not because they don’t try hard, not because they don’t have what it takes, not because they don’t really want to be successful, but for one really important reason. They don’t have a strategy. They don’t know the rules of the market. They don’t know how to find stocks to trade, and so they’re just at the mercy of trading, what they hear about on message boards or what they get emailed about for hot stock penny picks or whatever it is, and they end up losing money.

That’s the thing that’s really frustrating, and that’s what we’re trying to prevent, so you guys who are in this room, those of you who watch on Facebook, watch on YouTube, if you think you have the aptitude to be a trader, I want you to make sure you’re getting a good education and you’re learning the strategy before you just throw money in the market because, 90% of the people that come into the market, they end up losing money, and it’s not fair. The market, it really is … It’s rigged to favor big money, and retail investors like all of us, we really have the cards stacked against us, so we need to come into the market every single day with a very specific strategy of how we’re going to conquer it.

Fortunately, for me, I’ve got one that’s been working to the tune of $2,600 a day, but even though I have the entrepreneurial spirit, even though I have the aptitude, even though I have the mental willingness to take the risks in exchange for the reward, I was almost part of the 90% who failed. I was a failing trader for two years before I finally turned it around, and the reason that I was failing was because I didn’t know how to manage my risks, and so I ended up having lots of big losers. My biggest loss was like $25,000 and my biggest winner was probably like 4,000, right?

Now, look at where I’m at now. My biggest winner is 24,000 and my biggest loser is 10,000, and it’s not to say that a $10,000 loss is insignificant, but in the context of where I’m at now, it’s actually not that bad. Relatively speaking, my biggest winner is two and a half times bigger than my biggest loser, and that’s what’s good.

This would have never happened to me. This moment where I finally turned the corner, it wouldn’t have happened if I hadn’t discovered this one pattern in the market. I’ve been using Trading Review now for a couple of years. We can go back here. Let’s see, let me just scroll down win-loss expectation, so this is the account over the last couple of years since 2016, all right? You can see. I mean, really, this has been an incredibly profitable time right here the last year and a half. I really stepped up to the plate and put the pedal to the metal, but none of this would have happened, this equity curve. It wouldn’t have happened if I hadn’t figured out this one really critical secret, and once I figured it out, that for me was the turning point.

The critical thing for me that has led to my success, has allowed me to make as much money as I have in the last several years, let me just back this up, is that the stocks that I make the most money on, price and volume, they’re stocks under $10, right here, and this is 500,000. That’s half a million dollars of profit, trade stocks between $2 and $5. These are just little bars, but this is a lot of money that it represents, so I make the most money trading stocks under $10. That was a huge discovery.

The second big discovery was, let’s see, that I make the most money on stocks that have high relative volume performance by the instrument’s relative volume, so stocks that are trading on five times higher volume than average is where I made $787,000 of that profit. Right? That’s crazy. Think about that, $780,000 of profit, so this is the sweet spot.

Now, before I discovered this, I was trading stocks like this. Stocks like Facebook, stocks like Netflix, those are all going to be in this column right here, because they just trade on pretty much average volume, so when I was trading a stock like Apple back in 2012, this stock, back then, it was like $700 a share or something, but look at how much it moves on any given day. You could look at this. You could say, “This stock is moving. I could trade it.” It went from 185 to 187, but percentage-wise, that’s like … It’s just such a small move, and the volume, this is the volume today and this is the volume over the last 20 days, it’s average volume. We make money on above-average volume.

What happens when you have above-average volume? You’ve got high demand. What happens when you have high demands? Stocks move really quickly. That’s when you get stocks like this one today, XBIO, from $4.40 to $6.20, a 50% move in one day, so realizing that the stocks that I made the most money on were stocks that moved more than 2% in a day. I mean, literally, all of my profits are stocks that are more than 2% in a day, so these were really big discoveries that I made, and I wouldn’t have made any of these discoveries if I hadn’t taken thousands and thousands of trades.

I needed all of that historical data so I could go and data mine it and then draw these conclusions, so just in the last, whatever, two, two and a half years, I’ve got 2,500 trades. It takes that amount of trades, if not more, to draw real conclusions about your strategy, about the patterns in the market, about what works and what doesn’t work, so anyone of you guys, I really believe anyone of you guys could make these same discoveries as long as you did a couple of things. One, you meticulously track all of your trades.

Now, just tracking it in Trader Review is good. Tracking it in Excel where you could add notes to the trades is even better, where you say, “This was a bull flag. This was a bear flag.” This was the strategy that I actually traded. This was just sort of the raw numbers, which is helpful, but by itself, it doesn’t give maybe as much insight, so, number one, track all your trades and then, number two, practice trading for a year, year and a half, maybe two years to build up enough data to start having something that you can really did through.

You guys can all do that. The only problem is it takes a lot of time, and a lot of people don’t want to spend that time, and they’d rather start on day one making $1,000 a day, making $2,000 a day, right? That’s the goal is just to start on day one, and so I realized when I started Warrior Trading, and I first started it as a blog, but there was a huge demand for educational content, because, for me, when I was learning how to trade, it was trial and error. I was struggling to figure it out, and I was doing all this Googling. What does this moving average mean? What does this mean? What does this mean? What does this mean? There wasn’t one common database that had all this information.

I wanted to learn one strategy. Does someone have a strategy they could show me, that they could teach me, that works, that’s proven to be profitable? I couldn’t find it. I couldn’t find it, and so I ended up having to spend all this time figuring it out myself, but what I started doing is I started Warrior Trading as a blog where I chronicle my ideas and what was working for me, and it was a journal basically, and I would write about moving averages and write about the momentum trading strategy, and I started realizing the site was getting a lot of traffic organically just from people Googling the same things that I was writing about, and, the next thing I know, the site is doing 100,000 sessions a month, 200,000, 400,000, 600,000. We’re now doing over 1 million sessions a month of people trying to find this information.

Clearly, there’s a huge demand, and it’s because the market is more accessible than it’s ever been in the history of the stock market. You can access it right here on your phone. You can access it with a laptop. You can access it from Rural Vermont, from The Berkshires of Western Massachusetts. You can access it from Oklahoma, from Indiana, from the middle of nowhere. If you have an Internet connection, you’ve got a mobile hotspot, you can access the Internet, so with all these people trying to access the Internet and trying to capture a little bit of profit, there’s a huge demand for a little bit of education, for understanding a good way to trade the market, a safe way, a smart way, and so that led to Warrior Trading to what it is today with the chatroom, with the classes.

Our goal is to help every single one of you who are wanting to learn how to trade get there the easy way, so you can start using the strategy that I’ve proven through years of trial and error and, now, through years of historical data of profitable trading is successful, so you can learn my strategy and you can learn it in three months, and you don’t have to spend years of trial and error. You can start trading. You can get into it, and some of you, on month four, when you finish the Warrior Pro Class, you’re going to be trading profitably like Justin. All right?

Some of you guys are going to be month six, month nine, month 12. Everyone is on a different learning curve, depending on the amount of time you can dedicate and everything like that, but the reality is you can learn a strategy that’s already been proven to be profitable. You could do that or you could do it the hard way, which is to try to reinvent the wheel, and the reality is you can reinvent the wheel, you’re going to figure it out, you’re going to go through … You’re going to get closer and further away, closer and further away, closer and further away, and then when you finally figure it out, you’re going to realize you’re right back here in the same spot, because almost all of the profitable day traders out there trade a variation of the same strategy.

You either trade momentum or you trade reversals, and we teach both. I prefer momentum because it’s more profitable in my opinion. Financially, it actually is more profitable, but, for me, it is. For some, reversals might be better, but we teach both strategies, so you could either go the long way of trying to figure it out or you can get started right here, so this is all just to set the sort of foundation of what we’re going to talk about today when we go over these trades.

Today is not the biggest day of the week. Today is not the biggest day of the month. Today is just a $1,300 day, which is below my $2,600 per day average, but it’s a green day and I’m happy with that, so it’s another decent day in the market and it just helps keep me going to that $650,000 goal that I have for this year. It’s actually 665,000 because last year I made 335 in the small account, which means I need to make 665 this year to cross over $1 million, and when I do, whether it’s in December or it’s in January or February of next year, I would have proven that you can make $1 million with as little as 600 bucks.

If you have $600 in an account and you have a strategy, you could become a millionaire trading. I am $650,000 or so of the way there. Let’s see, where are we? $660,000, so we’re 66% of the way there and 340,000 to go. It’ll happen. It’s just a matter of time. I will cross that line, and even where I’m at now with 600,000, to make that in 18 months of trading is pretty incredible. We’re all really, really fortunate.

Like I said, trading is not for everyone. Not everyone in the world can be a profitable trader. Otherwise, everyone would do this and no one would work regular jobs because this is an amazing job, so it is a specific type of person that’s willing to be a trader.

A lot of you guys, you own small businesses. A lot of you have that entrepreneurial spirit. You want to be self-sufficient. You want to work from home, and I get that. That’s the same drive that I have and that’s what ultimately will make you such a successful trader because you’re so motivated for that freedom, that independence. Other people want the security of a nine-to-five job, and there’s nothing wrong with that, and there’s nothing wrong with that at all. It’s totally okay, but to each their own.

Anyways, it’s just been a great start to the month of $1,200, which is fantastic, so I’m happy about that, and, again, so today is July … was July 6th, and we have extended our 4th of July sales through this weekend, so you guys can use the coupon code “Firework” to save 30%, 30% on the chatroom, 30% on the simulator, 30% on the Warrior Starter Course, which includes the chatroom and the simulator, or 30% off the Warrior Pro Course, which is our flagship class. All right, so we’d love for you guys who haven’t already gotten to the classes to join.

We’ve done surveys, a lot of surveys, and we know that, students who are just chatroom members, you guys have about a 50% chance of being profitable. About 50% of the chatroom members, just regular chatroom, are profitable, so that’s your baseline. Now, that’s not bad. That’s five times higher than the average success rate. The average success rate is only 10%, but 50% is still pretty low.

Graduates of the Warrior Pro Class have an 82% chance. We did a survey, and we found 82% of our graduating students profitably trading the markets, so that’s where we want to get you to. Inner Circle is 90%. That’s the top tier. Inner Circle right now is on a waiting, so we’re not even accepting new application right now.

We want to get you in a place where you have the highest likelihood of being successful, and summer is a great time to learn how to trade especially because, when things pick up in the fall, September, October, November, December, that’s when you want to really make sure you got the skills so you could put the pedal to the metal and make as much as possible.

Last November, I made $82,000, best month of all time. December, I made 84,000, best month of all time. January, I made $117,000, best month of all time. Crazy. Three months and nearly $300,000 of profit, just absolutely crazy, so, anyways, so I want to see you guys have that same level of success. I know so many of you guys email us and thank us for the success that you have, and we just want to keep seeing those emails coming in, keep seeing you guys in the chatroom making money.

Anyways, here, today, we’re making a thousand bucks, 1,300. XBIO, this was the biggest winner today. Actually, it was kind of interesting. It was a little bit choppy. I first got in it for the break of $5 right here. We saw it starting to curl up, and I jumped in for the $5 break. It pops up to a high of 5.22, and then promptly drops all the way down to 4.81 as you can see right here.

It then pops back up, so, in this very first move, I made $268. I made a very small profit, and I stopped out as it came back down, and I thought, “Geez, another choppy stock. I don’t know.” It then curls back up and breaks over 5.20, and then I get back in. It hits 5.40, and then it drops to 5.15. Okay? Once again, I’m right on the trade and I’m thinking, “Geez, this thing is hard,’ and then it breaks over 5.45 and makes this big push here up to 6.09. This is what we call … These are micro pullbacks. This is a pullback. This is a pullback, and this is the third pullback.

My best exit was up here around 6.19, which was pretty good, so, overall, made some good money on a stock. Let’s see, where was this, 6 … Yeah, actually, I guess I tried to sell up there. Maybe they didn’t get filled, but, overall, it was okay. I made some money on it, but it wasn’t a $1,000 winner or anything like that, and it was because it kept chopping around. It scared me right here. It scared me right here, and then, finally, it takes off, but I was a little too nervous to add up here at the half dollar because it had just done these two sort of choppy moves.

Here, you see it’s backed up at [inaudible 00:22:19], so XBIO today is up 46%, all right? That’s what we’re talking about. 46% is awesome. That’s a huge move. Look at the volume. It’s above-average volume for the last few days. It’s under $10. This stock has everything that I look for in a stock that has home-run potential. All right, so XBIO, $824, green is good.

PRAN, this one, I jumped into out of the gates [afraid 00:22:52], anticipating a break of yesterday’s high. Yesterday’s high was 2.60, so I was looking at this for continuation. The bell rings. It dips down for a second. It opens at 2.32 and, as it surges up, I added for for the break over to 50. It pops up to 2.50. It pulls back. I add for the break of 2.90. It hits a high of 2.91, and then it drops all the way back down to 2.55, so I actually was up about $1,100 on this and then I lost 300 as it came back down right here, so I’m up $747 on it. It’s not the biggest winner I’ve ever had. It’s just kind of an average trade, and it really didn’t hold up very well, which is disappointing.

[TAET 00:23:37], this one, I jumped into hit the scanners, so we use the scanners back here. This is how I find the stocks to trade. Once you know what your sweet spot is, the challenge is how do I find these stocks in real time? You can see XBIO is on the scanners right now, real time, 12.10, so that’s telling you that stock is moving, which it is, so TAET, it hits the scanner down here at 2.15, 2.20. 2.40. I see it popping up, and I’m like, “Okay.” Clearly, this is what I look for. I look for stocks to hit the scanners multiple times in a row. If they’re in yellow, it means it’s hitting my massive volume and Low Float Scan. That’s the name of the scan, so the horizontal coloring is based on the name of the scan.

This is massive volume medium float, so it’s in green, all right? This one, let’s see, down here is up 8% in the last 10 minutes, all right? We’ve got a couple of different scans, so the yellow one is the one that I really like the most because that’s stocks that are moving quickly, so it hits first to 2.20, and then it just boom, boom, boom, boom, boom, boom, boom, hitting, hitting, hitting, and that’s what I like to see.

It goes all the way up to 2.89. Now, it’s also up 8% in the last five minutes or 10 minutes, so it’s hitting two scanners at once, right? It pops up here, so I’m adding. I got in at 2.50, 2.40, 2.50. I added 2.60. I added 2.70, and I added right up here going into the halt at 2.88. It looked like it was about to get halted, so I’m adding 2.88, 2.88, and then what happens? It drops. It doesn’t halt.

Sometimes, every now and then, we get these surprises where it’s about to halt and then, all of a sudden, it keeps trading, and I don’t know why that happens, but, anyways, it drops down here to a low of 2.35, so it literally drops 50 cents, and I had just added up here, so, now, my cost base just went from 2.50 to 2.70, so my new average is 2.70, way up here, and I’m like, “Dang it.” I could have sold from my 2.40 entry and made 40 cents per share. I could have just made a thousand bucks, and, instead, I added, and the reason I added is because if this had halted, which I thought it was going to, it would have most likely resumed higher, around 3, maybe 3.10, 3.20, and we would have seen the potential move up here towards 3.50. That would have been like a 70-cent winner.

That would have been a great win. I mean, that could have been a $10,000 winner, but it didn’t happen. It drops down, so, right here, we’re doing a flag pattern, and I’m watching and I’m like, “Okay, waiting to add. Let’s see if it curls back up,” because this wouldn’t be the first time we’ve seen them dip down a little bit and then surged back up, right?

It surges up here to 2.80, and I sell some of it basically breakeven to reduce my risk, and then I have my order ready to add back over 2.80 if it shows me strength here and, on this candle, as it dropped, I had to stop out, and so I ended up losing $84, which realistically is not a big deal considering I had good size on it, but it was not a winner, so kind of disappointing that it didn’t hold up better. It’s back here a little bit below my average, so if I was still holding it, I’d be able to [inaudible 00:27:05] on it, but it kind of looks like it’s grinding back up, so, I don’t know, maybe it’ll be in play on Monday. I’m not really sure.

That was that, and then NVIV, same kind of thing, I jumped in this one with 10,000 share at 2.23. It pops up to a high of 2.39, so I’m up 1,700 bucks, and then it comes all the way back down and then I ended up stopping out for a $121 loss, so I just … Things today were a little bit slow, but 1,300 bucks in a slow market, I’m okay with that. Green is good, but today was a little bit of a close call, a little bit choppy, so I suppose that’s not surprising considering it’s Friday on a holiday week.

I did the best I could today, but we’ll be back at it first thing Monday morning, and I’m hoping that we see good follow through. I’m hoping that the momentum from the first few days here of July continues and that July will be a really strong month. Last year, let’s see, 7/1 of ’17 through 7/30 of 2017 … Let’s see. I just want to see what last year was. 31 … so last year … Last year was not a very good month for me. I only made 6,000 bucks. I mean, really, it was not impressive. My accuracy was poor, not a lot of big winners. It was not a great month.

Go back one more year, 2016, and July was good, $32,000, right? Who knows? July could be a hit or it could be a miss. Right now, I’m off to a good start, and I’ve already made more than I made last year in July, so I don’t know. We’ll see. So far, it feels good, and last June, just this last month, it was good also, so I think we might be in for a good summer of momentum.

I think last year, one of the problems was that a lot of traders took their money out of the stock market and put them into the crypto markets because crypto was going so crazy, but, obviously, crypto has slowed down a lot and it’s really not a focus for most traders anymore, so I think that money has come back into the stock market, and that’s going to fuel more momentum, so I’m optimistic that this is going to be a good summer and we’re going to go into a good fall and, hopefully, I’ll have another record-breaking month later at some point this year. 117,000, that’s my high water mark, so we’ll see if I come back up and top that again this year.

All right, so, anyways, that’s it for me. I’ll probably try to come on live either on YouTube or Facebook at some point this weekend and hang out with you guys. We’ve got our 4th of July party tomorrow, which is going to be fun, so that’ll be up at my house. We’re going to have a bunch of the team at Warrior Trading up there and our family and friends and everything, so maybe I’ll do a little livestream at some point from the party. Let’s see what the weather is like and everything, but, yeah, that’s about it for me today. We’ll be back at it first thing Monday morning, 9:00, 9:15 premarket analysis.

Again, I really encourage you guys to come over to the website. Check out the specials that we’re running this week. We’re going to continue them through this weekend, and we’d love to have you guys join the Warrior Trading family, those of you on YouTube and Facebook who aren’t already in the room, so feel free to leave questions, leave comments below in this video. I read all of them, and I’ll come back through and answer them later tonight and over the weekend.

All right, so that’s it for me. I’ll see you guys first thing on Monday morning. Have a great weekend, everybody.

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