Warrior Trading Blog

+$17,911.25 in my 10 Day Hot Streak

hot streak

+$17,911.25 in my 10 Day Hot Streak

 

 

All right, guys. So, time for our midday market recap. We’ll go over the trades from today. This is my eighth consecutive green day; we’re enjoying a really nice hot streak right now. In the last eight or nine days I’m up $18,000, so just, this has been awesome. This is what I needed, a nice hot streak. So my account two weeks ago was at $45,000, today it’s at $60,000, and tomorrow morning it’ll be at $63,000, just under $63,000. So 30% account growth in two weeks, just awesome, awesome momentum.

And obviously, this is the account I started with $583 at the beginning of the year. I withdrew $70,000, so if I hadn’t taken out that money I’d be at $135,000, or $133,000 in the account right now; right around there. So making my way up towards 150, kind of just keep chugging along, building up this account. But yeah, today was another solid day.

So, we’ll go over the stocks I traded today. Two names, five trades, four winners, accuracy is still really on-point; 90% for the last eight days. So you can see here we’ve got KTOV: $609.28, and IMUC: $2,263.31, and so total gains today: $2,872.59. So really solid day. Now, what’s awesome is that the trade on IMUC was straight off the watch list, it was so easy.

And I say this a lot but trading is not hard, trading is a super easy job once you have a strategy, once you learn how to trade. Because all you do is sit here, you do the same thing every day. Some days are really good, some days are slow, but you’re just doing the same thing every day; just looking for the setup, taking the trade, executing the trade. I mean, it’s hard to manage your emotions, not get stubborn, not get frustrated, but once you’ve mastered that stuff the actual act of sitting here and trading is easy. The hard part is finding that strategy that works.

You know, and even for me, yeah, during the months where trading was a little bit more difficult, I wasn’t making money, it felt, it just felt maybe frustrating because I kept … I was coming in doing the same thing every day, I just wasn’t seeing a lot of follow through, I wasn’t seeing success. So I was like, “All right, well what’s going on? Is this me, is this the strategy, is it the market?”

And I think it was just a slow market at that time. So in any case, IMUC, we’ll look at that one first. This one was on our watch list. It was our … I don’t know, it was in … let’s see. We’ll pull up the watch list here for those of you watching on screen share in the chat room. So we’ll do historical date of 9:15 a.m., all right, so as of 9 … wait a second. There we go.

As of 9:15 a.m. IMUC was our third leading gapper. At that time it was gapping up 17% with 209,000 shares of volume. So it had volume, relatively low float, and we had traded it yesterday, and so this was actually a continuation setup from yesterday’s move. Yesterday had a high of $2.34 so I knew that was a line in the sand to watch, previous day’s high. I also knew that we had the 200 moving average at $3.21 and that would be possible resistance. So those were kind of the two levels I had on my radar.

I knew that IMUC was gonna be possibly a continuation trade follow through, but what was it lacking that I usually like to see? It was lacking a fresh catalyst, or news; a good headline. And so that made me just instinctively a little cautious and a little hesitant because I wasn’t sure it was gonna be clean. I actually thought there was a good chance it could do a false breakout or form a bull trap. A bull trap is when you see a setup you think you want to get into, you buy it, and as soon as you get in it drops, so it was a trap. There’s bull traps and there’s bear traps and when stock is looking like it’s gonna do continuation with no headline, no news whatsoever, that can be a trap.

So I was a little bit nervous but I saw the pre-market high was $2.24 and we opened at $2.11. So we opened at $2.11 and I was watching, and I was like, “You know what? I really think that this is gonna pop up and it’s gonna retest the pre-market high of $2.24. At the very least I think it’ll retest pre-market highs.” So I jumped in at $2.20. I got in at $2.20 anticipating the break or pre-market high of $2.24 with a simple 10 cent target. And I said, “Look, on my first couple trades my goal is to try to build up my cushion.

So my first couple trades I’m just gonna kind of scalp small winners. 10 cents is fine because 10 cents with 5,000 shares is $500.” So if I can do that once and then a second time, well that’s my daily goal at that point. So even if I could just do it once, that gives me a cushion and now I’m green on the day, and that puts me in the driver’s seat. So I got in at $2.20 and I added at $2.40, and then I sold on the move up to $2.60 and $2.70. And on those trades I made, I think it was $1,100. So it was like a nice, quick, easy profit based on a break of pre-market highs.

Now I could have waited to get in at $2.24, but I thought I would get in a little bit early. I like to anticipate the breakout spot because, well obviously, number one: it gives me a better cost basis, better average, number two: if we hit the breakout and we do that false break and we come back down, I’m more likely to be able to stop out break even, and number three: it reduces the likelihood that I’ll miss my entry because it suddenly pops up really fast, which sometimes happens when these hit the breakout point.

So in at $2.20, adding at $2.40, selling at $2.50 and $2.60; we hit a high of $2.70. So from $2.20 up to $2.70 that’s 50 cents, I mean, that’s 20%, that’s an awesome move. So awesome 20% move there, then we get the little bit of a pullback and I added right here on this pullback at 58 for the retest of high of day. Now this one I actually lost money on. I got in at 58 with 2,500 shares, it pops up to a high of 70 and I was like, “Okay, I want to see it break over 70,” you know, break and make new highs.

It hits 70 and then it pulled back down. And on that one it dropped … obviously, from 58 to 70 is only 12 cents. So it instantly dropped back down to like 55 and I was like, “Well okay, let me give it a second.” It drops down to 50 and then suddenly it drops to 40 and 30. I stopped out at 38 so I lost 20 cents with 2,500 shares, which is a $500 loss. So on that one … so actually I went from being up exactly $1,500 on this first push, to being up only about $1,040 or something. I was still up over $1,000 but my margin was pretty tight.

So that first trade was $1,500, then I lost $500, and then it popped back up and it was consolidating right here at 55. And I saw these candles of consolidation on the one-minute chart, and I thought that after those three taps — one tap, two taps, three taps, almost four taps at $2.55 — if it broke over $2.55 it would almost instantly go to 60 and 65 and there’s a really good chance it would go to 70 and then squeeze to high of day. And anyone who is short on this candle right here would get stopped out.

So I got back in at 55, and on this one I took 10,000 shares. I started with 2,500, I added, added, added; 10,000 shares. We got the pop all the way up to 79, only for a second. As it came back down I started selling. I was selling on the ask, trying to get out on the ask and get as much profit as I could. In total I made 12 cents, so I sold at an average … from 55 entry, I sold at 66 or 67, which really isn’t that bad, considering it didn’t hold up that long.

So that gave me $2,263.31 on three trades; two winners, one loser. We ended up pulling back and doing a little bit of a VWAP break right down here; Over $2.50, the half dollar. I didn’t take that trade. Maybe, I don’t know, it just to me it seemed a little extended coming into the half dollar and this ended up being more of a bull trap.

So one of the things that might have been a possible indicator or warning of the bull trap, was the fact that we had this rejection right here on the five-minute chart. This was a rejection here, this red candle was a bit of a rejection. So we had one, two rejections already, and then kind of curling back up after this fairly sharp pullback.

That’s a spot where sometimes short-seller’s try to short on the pops, and then as it comes back down, cover. So on this one I just didn’t want to be in it. I felt like there wasn’t news, it was a little choppy already, I had one loss on it, and actually this was a close one because when I got in at 58, or 55, it dropped down to 50 and then popped back up. So for a second I was red on the trade and I was like, “Oh no, I’m gonna give back another $500, this is not good.” But, you know, it popped back up so it ended up being okay.

So that was IMUC, and then … so let’s see, that was … wait, I thought I took five trades today. Hang on. No, that’s … I took … because I added at 40, that was … added here, added there and then, okay. So that’s IMUC. KTOV, this was the second one that I traded. And this one started to squeeze up here as you can see, it popped up … well it was active pre-market so it was already on our gap scanner. It was, where was it? KTOV, 7.44 million share float, gapping up 7.8%. So I already had it on watch, but I knew that … I don’t think I saw any headline on it so I was kind of like, “I’m not sure why this is gapping up.” Plus we have resistance at the 200 moving average of $2.42.

Well it ends up popping up from $2 all the way up to a high of $2.16. It pulls back on a one minute micro-pullback as you can see on this one-minute chart, and I decided to get in 5,000 shares right here at $2.12 for the first one-minute candle to make a new high. So, let’s see. That’s right … I’m trying to draw a little square but … so right in this candle’s where I got in. It pops up to $2.26 and then up to $2.37, and then it drops back down. I was selling into the push.

I was selling half when I was up 10 cents, another quarter when I was up 15 cents, and I sold the rest at 35. So actually got a really good fill with the high being 37, I sold the rest at 35, which was solid. And on this one I actually added at 26, as well. So I was being a little bit aggressive on it but I thought it had good potential to hit that $2.42 resistance. Ended up doing a one-minute micro-pull, a second micro-pullback right here from $2.25, popping back up to $2.35 not making new highs, and then fading.

So remember, when you see these do like one-minute micro-pullbacks you want to make sure it makes new highs. So in this case here, when it doesn’t make a new high, that’s usually not a good sign. Now, sometimes we’ll see the setup where it just sort of consolidates in this wedge. It keeps … it doesn’t make a new high but it also doesn’t make new lows, and it just sort of consolidates here until it finally breaks out.

And we call that the ABCD setup because it goes up and then down, and then up and then down, and it keeps doing that ABCD until finally it breaks out. I mean, it’ll break one way or the other. But in this case, this was too extended off of the moving average in order for it to really form that really clean pullback up near the highs.

So only one trade on that one and then you can see, this one did another one of those breaks over the VWAP. Right here at $2.14 it came up and broke over the VWAP, $2.15, pops all the way to $2.40, pulls back down to $2.15, and then squeezes up to $2.70. So just like, whoa, really opened up. I didn’t trade it. At that point, I was like, “Look, I’m up $2,800, I’ve got my daily goal.

Take the money and get out of the market.” And that’s something that you really have to learn how to do. It’s not about being in every single trade or trying to trade every single stock that’s moving. It’s simply bringing … It’s simply taking more money out of the market than you put in each day. And if you’re doing that consistently, you’re doing something 9 out of 10 traders can’t do. So don’t underestimate the value there, even if you’re only making $150 a day.

If you think you have a strategy right now where you can easily capture $150 a day, you should be doing that every single day. Because inevitably, over time, that’ll increase to $175, to $200, to $250, to $260. It’ll slowly go up, so start small, set small goals, but just try to be consistent. So right now I have, I think I’m at 91% accuracy. Hang on, let me just check this. In the last … yeah, 91% accuracy in the last eight days. So for me right now, if I take 10 trades, the odds are 9 out of 10 of them I’m gonna make money on.

So I have pretty high level of confidence, but still for the first couple trades, even despite that confidence, my focus is: try to build the cushion, try to get that small winner; $300, $400. Now for me that small winner might be as much as your daily goal. Your daily goal might be $300 or $400, which is fine, it’s wherever it is. Mine’s $1,000, and today’s another day where I’m up over that goal, so it starts by building the cushion, and once I have the cushion on that first trade, then I feel more comfortable being more aggressive.

And actually it’s kind of good that I lost $500 — I made $1,500, lost $500, so I was up only $1,000 — because that kind of made me like, “Okay, now I want to look for that next setup to get myself back up to where I was.” And that made me a little bit more aggressive, which is how I ended up going from $1,000 all the way up to $2,200.

So yesterday we had a couple circuit breaker halts, today we didn’t have any, but we’re seeing some really strong momentum. And I’m gonna try to ride this hot streak just as long as I can, really; see where it takes me. But on the week right now, I’m up $7,000, last week was a good week, as well. Hopefully we can just continue this momentum into Friday, take a couple trades tomorrow, look for a couple low-risk opportunities, and then jump back in … enjoy the weekend, then jump back in on Monday morning. Okay?

So that’s about it for right now. This is the 124th trading day of the year. So, let’s see, D124, and I’m finishing the day up $2,872.59. So, awesome. Hopefully we’ll have a good finish on Friday. Typically Thursdays and Fridays are a little slow for me, but we’re in a very strong market, the momentum is hot, so I’ll look to try to finish the week strong tomorrow. All right guys, so remember: focus on quality. It’s trade the best, leave the rest. You don’t have to trade a lot. You know, I only took four or five trades today including the one where I doubled, or averaged up. So it’s not about trading a lot, just look for those one to two opportunities where you can get in the market, capture profit, and get out.

So on the year, right now I’m at … let’s see. To answer your question there. I’m at $168,000 total. I’m at $134,000 versus my starting balance of $583. So in the beginning of the year I had two accounts that I was trading in because I thought I might be trading in the small account for a long time. I might only be making like $40 or $50 a day and I didn’t want to not trade and not make money, so I traded in both accounts. Once I built that small account up, I closed my regular account and now I’m just trading in the one.

So basically I made an extra, I think it was $34,000, in my original account before I turned it off for the year. I don’t know, from $583 I’m at $134,000, right around there, and total gain on the year is $164, or $168,000. I’ll probably … I don’t know what I’ll … I mean, hopefully I end up having a good enough year that that $34,000 I just won’t even care about it, and I’ll just focus on this year being what I was able to do with the $583 account. But for right now, I’d rather say I’m up 168 than 134, just because 134 it doesn’t feel like … 134 is good, but it’s not maybe as good as I’d like it to be.

So anyways, that’s where I’m at on the year. I’ve had some great months, some slow months, but that’s part of trading. Okay, so again, that’s about it for today. I’ll be back at it first thing tomorrow morning. We’ll finish off the week strong and have our midday recap, and then I hope you guys will enjoy the weekend. This has been kind of a funny week because we’ve had the day off … had half day on Monday, then the day off on Tuesday. Anyways, that’s okay, we’ll get a little bit of rest this weekend and then be back at it on Monday morning.

The answer to your question, Robert, yeah I was using SureTrader for the first six weeks, first six weeks or so, and then once I crossed over $25,000 I moved my money back to the states. So actually, not only did I cross $25,000, I blew all the way through up to $42,000 or $43,000 and then I took all of that money out and have been trading with a local broker since then.

Let’s see. Erik, that’s good that you’re trading in a simulator, I mean that’s absolutely the right place to trade. Last week on Friday we did our Behind the Trades episode where I was talking about the importance of sim trading, how much that would have saved me in terms of frustration, and loss — financial loss — if I had just traded in the simulator before trading with real money. I really, really encourage that. Look, if you can trade … just discipline yourself to trade with a simulator for one month and if you can trade there for one month, and you’re profitable, then you can feel like you’ve paid your dues to go trade with real money.

I would say, [Karim 00:20:38], trade in the simulator until you are making money. If it’s three weeks or a month and that’s okay, if it’s longer, then, you know, maybe whatever. Hey, Joe. I see you logging in on Facebook Live. Thanks. So Christian, yeah, when I was trading with SureTrader, the biggest challenge was the commissions because they were expensive, for sure.

They were, well for me at that time, they were $4.50 per trade plus ECN fees. So taking 10,000 shares would probably have cost me like $60. Taking 10,000 shares now would cost you $100, their rates have gone up, which makes it that much harder to trade there. But the reality is, if you’re focused on A-quality setups, just trade as little as possible. Look for that best quality setup, get in, take the trade, and get out. Take your money and run. That’s what you have to do, just be really aggressive about that and be super disciplined about not over trading.

Don’t overtrade, just look for that setup. And if you’re in the chat room and you see I’m watching IMUC or KTOV or whatever it is, just watch that chart, whichever one happens to be in play. Look for the best quality setup and do one entry and one exit. Just take the money and get out. And once you’ve built that account up to $25,000, then switch it over to Lightspeed and you’ll be at $2.50 per trade. So Warwick, yeah, we have a lot of students who are using TradeZero who are happy there. They’re only for international traders though, no US residents, that’s the only rule.

Okay, so I’ll move that out of the way so you guys can see the scanners again. I didn’t start with TradeZero because I’m not allowed to because I’m a US resident. Yeah, SureTrader, it’s not your forever broker, it’s just a means to an end. You trade there until you’ve built up your account and then you switch. Now, some of you guys have gone a different route, which is to trade options with Jeff, swing trading, knowing that options settle overnight. So if you have a small cash account you can trade options, they settle overnight, and he’s doing like 30%, 40% on these option contracts. So he’s very quickly growing his account, which is a different method if you don’t want to use a offshore broker.

Yeah, I use a five cent offset, and commissions on Fantasy Stock Traders are half a penny per share. Jeff puts his trades right in the chat room. You can see he just bought IWM 142 calls at $1.62, the August 18, so you can see that alert right in the announcements tab. As part of the Warrior Pro course he teaches options, and we also have an options FAQ section on the website. Yeah we do, [Leo 00:24:26], you can check out the website warriortrading.com. The options are part of the swing trade course, Larry. So at the end of the day trade course, after the three classes — the VWAP, the position sizing, and the scalp trading classes — you’ve got the five swing trade classes. So they’re technically classes … I guess it would be classes 19, 20, 21, 22, and 23 I think.

All right, so let’s see. Yeah, Lee, just email us and we can set that up for you. All right everyone, so with that, I’ll let you guys enjoy the afternoon and we’ll pick back up first thing tomorrow morning. Okay, bye guys.

Oh hey, I didn’t see you there. I was just working on the dream board for my next home run trade; hopefully it comes soon. Until then, make sure you subscribe to get email alerts any time I go live or upload new videos. Until then, happy surfing.