Warrior Trading Blog

+$13,031.60 On 2 Trades On The 20th Day Of 2018. What A Day!

20th day

+$13,031.60 On 2 Trades On The 20th Day Of 2018. What A Day!


All right, I’m taking you guys on a little bit of a walk here. We’re outside walking across a little bit of ice here. Going out to my tree stand. I don’t come out here that often but at some point, probably many years ago, someone set up a tree stand out here and every now and then if I have a really bad day of trading, I’ll come out here and just sit in it. I don’t hunt, but I just like being able to come out and slow down, and just be quiet for a little bit. Now, today I’m doing it ’cause I actually had a great day of trading and I want to come out and just take a breath and take it in a little bit because these types of days I’m up $13,000 today. They don’t happen every day. I only have days like this a couple times a year.

You really want to be grateful for them. All right, so here we go. I’m out here at the tree stand making my way up. It’s nice and quiet. Now, like I said, the last time I was out here was after a big red day, and I just wanted to get out of the office and slow down a little bit. It’s nice up here though. Nice and quiet. Nice view. There’s a little river down there, it’s kind of frozen over. It’s easy to get caught in that kind of bubble and caught in the zone of just being, staring at the computer, hour after hour, staring at your PNL, watching it go more into the red, or even more into the green. Even after a great day like today, I have to be careful because statistically I have my biggest losses right after my biggest green days.

Why do you think that is? Overconfidence. Getting overconfident, getting too aggressive and then boom. Quick loss, big loss. I need to be really careful tomorrow as we finish up this month, that I don’t do something stupid. I have to continue to trade smart, continue to be focused and so coming out here is an opportunity for me to meditate a little bit and catch my breath, get focused. Put today behind me, whether today is a green day or a red day, put it behind me and come into the market tomorrow with a clean slate. Fresh, focused, ready to take a couple of good trades. You know what, if tomorrow ends up being a great day, that’s awesome, but if it ends up being a little bit slow, that’s all right too.

Really everything I do right now I do to try to become a better trader. The way I eat, the way I sleep, the exercises I do, everything is related to trying to be the best trader I can be. It’s crazy how when you’re trying to get good at something, how much your life revolves around it. Right now, for me, it’s just all about trying to be the best trader I can be, the best teacher I can be for you guys, and to try to turn this $583 account into a million bucks. I’m gonna sit out here for a few more minutes, meditate, relax, then head back into the office for my Warrior Pro Mentor session at 3 PM with students. All right, so we’ll break down all the trades from this morning, the winners, everything that went right in today’s midday market recap. I’ll let you guys get into it and if you have questions, put them in the comments below, I’ll come back and answer those later.

What’s up everyone? All right, so we are going to break down the trades from this morning. Today is the 20th day of 2018, we were just doing our 2017 year in review. 20th day of 2018, finishing the morning up $13,031.16. I’m at this point setting the bar so high for myself, I really don’t know when I’ll ever have a month where I make this much again. The last few days here in the month just stacking up the profits. It’s crazy. If I had all the money that I’ve made this month sitting in neatly stacked whatever, thousand dollar stacks, I mean, it would be a lot of money sitting here. It’s just crazy, another $13,000. It’s almost like it’s pretend money because it’s just so much. When I walk around the grocery store, and I’m picking stuff out, I’m like, I could buy anything here, you know? There’s nothing here I can’t afford. I could buy this whole grocery store, you know?

It’s like, I don’t know who else in the grocery store made $13,000 today, but it’s a ridiculous amount of money. Running my card for $120 in groceries is like nothing. I mean, that’s like no big deal, it’s like not even, doesn’t even put a dent in what I made today. These kind of days though, it’s really just building the cushion because there will be a slow period. I’m not gonna lose sight of the fact that I will have a period at some point this year when the market really does slow down for me and we’re making even $1,000 a day will be difficult. I want to be just really grateful for these gains, I’m not spending them all on $15,000 velvet suits and limousine rides to the grocery store, I’m saving it and doing the smart thing, reinvesting it into the market and I hope that we, of course, continue to see a really strong market. I would love that, but if things do slow down, I will be prepared.

That’s my approach as I’m always preparing for winter is what I call it. Just preparing for that inevitable slow period that will come. Today, $13,000, let’s break it down. First trade of the day was on STRM. My first trade I didn’t take until 9:42, which is kind of unusual that I waited that long to take my first trade, but there just wasn’t anything that looked really good for a gap and go. The overall market down 300 points at one point today, we’re down 293 points right now. That probably is weighing on the small caps a little bit, but in any case I bought STRM on, let’s see, the first one minute pull back right here, I got in with 10,000 shares at $2. No, I got in with … let’s see, yeah, 10 … actually, geez, did I take that? No, I took 10,000 shares at $2 and then I added 2,500 shares at 2.10 to 12,500. I sold half at 2.13, a quarter more at 2.13. Held some through a pull back and sold the rest at 2.18 and 2.13.

This was that pull back here, the high was 2.19. $1,300, that’s basically 10 cents with 12,000 shares. Not the biggest winner I’ve ever had, but green is good, I’m happy with that. It just felt like we were not having much of an exciting day. It was a slow day, and then in the chat room, Jay, I think it was Jay, he posted, “Hey guys, ARGS just has this new patent that was issued.” I took a look at it, took a look at the link and I saw okay, ARGS has a patent dated today January 30th. I thought starting to pop up and I hesitated a little bit, it tapped a high of 60 and then it dropped down. It hit 16, it pulled back. As it curled back up, that’s when I got in with 7,500 shares at 2.60 basically, 2.57, 2.59 and 60. Okay? It hit 60, it then pops up to 70 and I’m like, you know what?

This looks strong, I’m gonna go up to 10,000 shares, so I added another 2,500 at 2.70. It then keeps squeezing to 2.88 and I’m thinking okay, I’m gonna add, I think this is gonna break over $3. Now I’m gonna start stepping it up a little bit. I added 88 and I added 2.93, so now I have 15,000 shares. With an order to add another 5,000 at 3.07 to bring me up to 20,000 shares. Definitely aggressive on the share size, but I wasn’t really worried about this one doing anything super crazy because the spreads weren’t too crazy, it didn’t feel out of control. Adding here [inaudible 00:09:41] taps 3, it’s then halted at 3.06 on a circuit breaker. It resumes and squeezes all the way up to 3.89. I added 2,500 shares at 3.70, which got me up to 17,500 shares. Canceled my order at 3.07 ’cause it didn’t fill.

I sold 500 shares at 3.87 and then it dipped back down. I sold another 1,000 at 368, I held through this little pull back waiting for the first one minute candle to make a new high. That happened right here and we popped up and we hit 69. We started to see resistance and I said I’m hitting the bid, I’m bailing out, sold … I tried to sell all of it on the bid at 352, I filled 12,000 shares. Had to cancel the order and sell the rest at 45, 43, and 40. Ended up with only $11,000 of profit … I say only because my goal was that this was gonna get over $4. As soon as this hit 3.85, I was up $17,000. If it had broken over 4, I would have made over $20,000 on the trade. This could have been a 20 to $25,000 winner. It had that potential and it all started with a max risk of about $1,000.

Starting with about $1,000 of risk, which is like 12 cents with 7,500 shares. I started with small size, once I was up $750 I added 2,500 shares and I adjusted my stop to break even, now I’m not risking anything. I’m risking $1,000 of profit, but I’m not risking a loss. Once I was up $3,000 I added another 5,000 shares. Again, adjusting my stop. At that point my average was 3.71 and I had 15,000 shares. I was like, look, I can stop out of this at this point $1,000 profit, but I was more aggressive because I saw the potential. Now, it didn’t realize the full potential because on the one minute micro pull back it dropped, it didn’t work, and that was a little disappointing, but if you step up to the plate like this enough times, eventually you will have one that works. It does the one minute micro pull back, it squeezes up to 4.25 and gets halted again, resumes at 4.50 and you’re making $34,000 in one trade. That will happen eventually. It’s just a matter of time.

As long as you’re able to stop out quickly, these types of trades are still winners even though they don’t work as well as we might like. Starting with small size, adding as it’s working and then just continuing to adjust the stop as you’re in the profit zone. Finishing with $13,000 is great. For me, this was the point where I was like, look, I have crushed it this month, if I end up not making $3,000 down here, let’s say when I got it added at 2.93 it dropped right back down to 2.70 and I had to sell break even, to me it was like I already have such a big profit cushion that I can take that risk. For some of you guys who might not have felt comfortable with this level of risk, you might have added down here at 2.57 and just held it. Maybe you sold half at 2.93 or $3 and you sold the rest at 3.50. That’s okay too. It’s a little more conservative, but it’s okay. It’s a winner. Right? It’s just about booking profits as consistently as you can.

Here we are, breaking over $120,000 on the month. I’m at $122,293, right around there for today … for the month, as of today. We’ve got one day left, which is tomorrow, hopefully we have some good opportunities and, I mean, I don’t know, it’s … again, I don’t know when I’ll ever have another month where I’m over $100,000 let alone $122,000 but it just comes down to being disciplined and being focused on looking for a quality setups and when you see them, being willing to be aggressive. The best month of my career was November with 82,000. That was the best month to date. In December, I made 84,000. That was the best month to date. In January, I’m up $122,000. This is my best month to date.

I can only really guess what January has in store for me. What February has in store for me, so hopefully we have a great month of February, we continue to see really good follow through and we can just keep growing this account. Here this month I’ve made half of what I’ve made in all of 2016, so that really does say a lot about this month. It’s been a great month. All right, so sitting at $457,000 in my account that started with $583, the account is growing very quickly and I just have my eyes set on a million dollars. It’s a big goal, I’m not even half way there, but I’m just gonna keep working at it one day at a time. I would need about 55 more days like today before I crossed that line. 55 days. There’s only 20 trading days in a month, right? That’s like three solid months of making $10,000 a day.

It’s not gonna happen. That’s just not realistic, so it’s gonna take another, 8, 9, 10, maybe 12 months, maybe longer. But I just need to stay focused every single day and the biggest thing will be keeping the losses tight because having those set backs can be really, really hard. All right, but anyways, that’s it for me, I hope you guys all have a great afternoon and I will see you first thing tomorrow morning back here in the chat room. All right, see you guys in the morning.

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