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+$528.72 on the 150th Day of the Year!

swing trades

+$528.72 on the 150th Day of the Year!

All right, guys. So, we’re gonna do our midday market recap here, and go over trades from this morning. Before we do, I want to put out a special announcement. Tomorrow at 1 p.m., I’m gonna be hosting a webinar on “The Three Myths to Penny Stock Trading”.

So this is gonna be a fun webinar, where I talk about some of the things that you guys probably don’t already know about penny stocks. All right? So, we’ll be talking about the different tiers of penny stocks, the different classifications, the difference between sub penny, trip zero, OTC, regular exchange, and giving you guys lots of info to help you become better traders if you are interested in penny stocks. So that’s tomorrow at 1 p.m., but right now we’ll do our midday market recap.

Okay, so let’s go over today’s trades. Now, interestingly on FENG, F-E-N-G, I see a 60,000 share seller that just popped up at $3.68. This morning was, again, a very slow start to the day. I didn’t take my first trade until 10:17, which is very late for me. Usually I’m trading within the first … you know, the first 10 minutes. So, to not trade until 10:15 or whatever, is very unusual.

Yesterday I didn’t trade at all, and I didn’t trade because there weren’t A-quality setups. So it was an opportunity to practice a discipline, and today I was given the opportunity to practice it again. We didn’t have anything that looked good on the gap scanner. We had R-A-D-A, RADA, and ITXG or IGX-, whatever, IDXG. But I didn’t really like either of those. One, the price is not quite right; two, the pre-market chart wasn’t that great. So, just wasn’t into them, and I said, “You know what? I need to take an A-quality setup.”

Now, ZYNE has been on my watch for a couple days. I wasn’t really planning on trading it today, but when it started to pop up, I thought, “Okay, well, you know what? If it’s gonna make a new high versus yesterday,” which it did, it popped up to $6.57, which was yesterday’s high, then I thought, “Okay, I can jump in this for continuation and maybe we’ll see a move back up towards the 9 moving average.”

So I jumped in this at $6.63 and $6.65, with 5,000 shares. Now, I also, I tried to buy 7,500 but I didn’t get filled on that final order, so I canceled it. It pops up to a high of, let’s see, $7, which, you know, I mean that’s $1,500, that’s a pretty good trade. But at the same time on this one, I was thinking, this had more potential on the daily chart. If it could get over $7, up to $7.25, $7.40, $7.50, it has room all the way up to $8.44.

And we saw this day just last week, where it put in a really big candle. So it made me think that this had the potential for a bigger move, and that, potentially, I could hold this as a swing trade with my entry at 64 or 65, or at least hold maybe 1/4 of my position overnight. And so I wanted to give it as much room as I could.

Well, I got in, it pops up to $7, and then it comes all the way back down to 70. So I go from being up $1,500, to up only $250. Then I thought, “Well, you know, you just gotta sit with it, let it work, let it do its thing.” 5-minute candle forms, first 5-minute candle to make a new high, it pops back up to $7, and then it drops back down to $6.82 and it’s still flagging. So I said, “Well, I’ll hold it and I’ll set my stop right around the 20 moving average.”

And so this is where I stopped out. Now, you know, I only made $415 on it, so I gave back about $1,000 versus what I had. On the other hand, if this had broken over $7, gotten up to $7.25, $7.30, I could have just kept running … basically holding it, letting it run with a trailing stop. So, I put a mental stop on this at the low of the last 5-minute candle, and as that broke, that’s pretty much when I was like, “Okay, I’m gonna have to throw in the towel on it.” So I think I gave it enough room.

And this is sort of the balancing act that we all do, is you don’t want to sell too soon. Let’s say I sold this whole thing at 75. It goes up to $7 and you’re like, “Ah, why did I sell it so soon?” And then when it goes up to $7 and you hold it so maybe it goes to $7.25 and it comes back down to $6.80, you’re like, “Ah, why didn’t I sell it?” So, you have to sort of … it’s obviously a judgment call and every case is a little bit different.

For me, the reason I was more confident holding this one a bit longer was because of the daily chart and the history of it bouncing last week, so I thought it had more potential to make a bigger move. Although it only went up 35 cents from my entry, that’s still a decent trade, and I was able to protect my profit with a little bit of a profit stop. So $415.

After that I got onto FENG, and I bought this on the first 5-minute candle to make a new high, right here at $3.55. I jumped in this one with 4,000 shares, it pops up to a high of 59, it drops back down. It drops back down to 45, or 47. So I went from being up like $200, to down $300, and I thought, “Hmm, this isn’t good.” Because on ZYNE I was never in the red. ZYNE was basically just, jumped on the train and just, you know, it was leaving the station, and I’m off.

But on this one, I got in and I fell back a little bit. So that made me immediately a little bit more protective, because I was looking at taking a loss, not just stopping out break even. So when it came back up here to 60, I said, “You know what? I’m just gonna sell it at 58 because I’m not sure. I’m having a hard time seeing if this thing’s really gonna work.” So I sold at 58 for $113. It ends up going up to 74, up to 82, and then up to 88. So you know, on this one, I just wasn’t sure.

If, as soon as I got in on the first 5-minute candle to make a new high, it had popped up to 75 or 80, then I certainly would have just held it because I would have said, “Look, I’m in the driver’s seat.” But because I was sort of touch-and-go there for the first like 15 minutes of getting in the trade, these three 5-minute candles, I felt that I probably would be better off reducing my risk on it. So that was the reason I sold this sooner.

It was because for 15 minutes after getting in, I was basically break even instead of green. And that’s why I would have really preferred, obviously, to get in a trade and have it pop up right away. So yeah, Bruno, I mean, obviously I’m a big advocate, a big fan, of taking partial profits along the way. On ZYNE I only had 5,000 shares, so I kind of felt like at that point I might as well just hold the whole thing for a bigger move, because I only really had half size. I certainly could have sold half at $7, but I really thought it was gonna break over $7, and I was sort of, in my mind, preparing to start selling maybe at $7.05 or $7.10, but it just didn’t break over that level. So, that’s okay.

But anyways, finishing the morning up $528.72, which is fine; green is good. It’s a good day, green trades. You know, we’ve been in this sort of slow period where I haven’t had a lot of really good opportunities, so it’s nice to put a couple green trades under my belt here, and hopefully we see this continue, obviously, through Thursday and Friday. But having said that, I usually don’t do as well at this sort of tail end of the week.

So again, we might just have to exercise some patience, and not push it too hard knowing that once the market is strong again, once we’re seeing really good opportunities, I could jump into a stock with 10,000 shares at $3.50, it pops up to $4, it gets held to … it reopens at $4.40, goes to $4.50, $4.70, $5.

You know, I mean, I can have eight $10,000 days back-to-back, but we’re not in a market that’s giving that type of profit away. And if you try to get it you’re just gonna get stopped out. You know, it’s just not there. It’s kind of like casting your line when there’s just not a lot of fish in the water right now. You know, they’re not here right now. So sure, we can put on the bait, we can cast our line, we can waste fuel, waste energy trying to catch fish, but if there’s nothing there right now, there’s nothing there.

They will come back, they always do, and we just kind of have to wait for it. In the mean time, if we spot a little opportunity here or there, okay, that’s fine; try to go for it, and for the most part, taking minimal risk.

The only reason that I’m red on the week right now is because I lost my internet connection in the middle of a trade on Monday morning, which is just the luck of the draw. Disappointing, but an unavoidable reality when you work from home.

So it’s just like that’s me paying my work-from-home tax kind of thing, it’s just paying my dues and I’ll get it back on one of those mornings where I make $5-$10,000 in the first 30 minutes, and then can just hang out in the yard for the rest of the day, or whatever. So, I try not to get too, too frustrated when we have slow days, or when we have a little bit of a slump. And the nice thing is, we had some good opportunities. ZYNE was fantastic, you guys could have all done a lot better than me on that one if you had wanted to sell sooner. FENG, also really not bad at all.

So the good new is, the two stocks that I looked at were both pretty decent, so my hope is that we’ll start seeing more of that and we can kind of get ourselves back into a little bit of a groove with some green trades. But, you know, $500 is good, $500 a day. You know what? If I could do $500 a day for the rest of the month, that’d be fine; I would be totally fine with that. And I already have made myself my little sticky, which is the new goal is $500 a day. I’m reducing my goal until we get back into a stronger market, and then I’ll bump it back up to $1,000 a day.

Okay. So now, [Saib 00:11:02], getting in FENG at high-of-day I wouldn’t do, but on the first 5-minute candle to make a new high, or the second 5-minute candle to make a new high, those are valid setups. So, entry at $3.75 right there is totally valid. Okay, so this afternoon I’ll keep an eye on the reversal scanner in case there’s a good opportunity there. Maybe we’ll get something we can trade.

You know, you kind of have the two choices. Choice one is you just accept that trading is a little slower right now, maybe not making as much money as we’d like, and choice number two is that you stick out the whole day, you trade through the afternoon, kind of just continuing to look for setups. Just make sure that you keep that mental capacity so you’re able to continue to make good decisions even as you get further and further away from the open.

All right. So that’s about it for me today. I’ve got the Warrior Pro Mentor Session at 3 p.m., so that’s gonna come up here in just a little bit. And yeah, so that’ll be with Warrior Pro students. So, 3 p.m. today, mentor session, and then everyone else, I’ll see you first thing tomorrow morning. Okay. So that’s it for now. I’ll see you guys later this afternoon, or in the morning. All right. Thanks, guys.

Oh hey, I didn’t see you there. Well, 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 anytime I go live or upload new videos. Until then, happy surfing.