Warrior Trading Blog

+$160 on My Portable ATM! | Ross’ Trade Recap

Ross_5.3

What’s up my everyone. All right, so here I am trading on the road again, two laptops, two USB monitors. That’s all I need. This right here is a traveling ATM. Today, it put out 160 bucks. Not the biggest winner, but you know what? Hey, green is good. The last couple of days have been incredible. 14,000 on Wednesday, 7,500 yesterday. Over $20,000 of profit on the month of May and it’s only three days in. What I kind of been saying here is that some days the market’s hot, it’s time to be aggressive, pedal to the metal. Other days, the market it’s a little slow, it’s a little choppy and if the best thing you can do is have a small loss or even a small profit, that’s fine. Just live to trade another day. I know it’s hard because we all have our daily goals. We have our weekly goals, and sometimes you’re going to hit your entire monthly goal in the period of three or four days and it’ll be the end of the month.

But what’s important is that when the market’s not hot, that you’re not being overly aggressive trying to achieve a daily goal that is not realistic for that day. You have to keep that in mind. What is realistic to get from the market on this particular day? I might have a goal of 5,000 or $10,000, but if the market’s not going to give it, it’s not going to give it. You got to just adjust the goal and adapt the strategy. One of the big things there is being able to ease off the throttle when the market’s slow and then pedal to the metal when things are hot. Things were super hot on Wednesday and Thursday, today things slowed down. So I eased back, reduce the share size, reduced risk, $160 a profit. Hey, that’s fine with me. All right, so I’ll be back at it first thing on Monday morning back in the office. As always, any questions, comments on today’s recap, leave them below and I’ll see you guys on Monday morning.

Okay. We’re going to do our midday market recap. Kind of an uneventful day here in the sense that I’m going to finish up only about $160. Really just didn’t have a whole lot of follow through. These were the two stocks I traded, RHE and RBZ. RHE I actually was up about $1000 on and I gave back that profit trying to scalp what I thought was going to be a break at the pre-market highs. We can look at this one first. This one was our leading gapper this morning, but of course the problem with it was that by the time the bell was ringing, it was already up. It was up 95%. At that time, the morning… or let’s look at… you can just look at 9:25 AM. By 9:25 AM it already had 2.1 million shares of volume. It was fairly crowded and it was… which isn’t necessarily a bad thing, but the issue more was that it had already made a big move and it had dropped quite a bit on these two occasions.

As the bell rang here, I took my first scalp jumping in right about here at 4.90, and then selling 4.92 and then selling on the move up to 5.11. On that move right there, I made about $1,100, which was not bad. I got out, I then got back in right here as it broke over the high a day. This was a little aggressive. I got into this with 9,000 shares thinking it was definitely going to hit the pre-market high. It hit a high of 25. It then dropped down to 5.01. I was like, “Ooh, if this breaks five, I mean there’s a chance it’s going to flush all the way back down, so I stopped out.” Actually I was down about $150. I gave back the whole thing. Of my whole profit on the first trade I gave back on the second trade. Then I got back in right here at 5.18 thinking that now that it popped back up, it was going to hold. It hits 5.30 and I sold that for $400 of profit, 450, got me out of the red and back into the green, but only by $360.

Then I was like, “Okay, let’s slow down for a second because I don’t want to go… I don’t want to be read today.” Another 9,000 share position on this one that goes the wrong way could put me down $3,600. So let’s slow down.” I slowed down. I didn’t take this setup here, which was a false breakout. It then broke the [V-U up 00:04:33] and then it never gave another opportunity. That was it. Unfortunately, the stock… the majority of the move to the long side was pre-market at like seven in the morning. Of course I don’t trade pre-market, so I miss that opportunity. Then once the bell rang, more the… volatility has been to the sell side, but of course no shares available to borrow. I wouldn’t have been able to trade it even if I’d wanted to. That’s the way it goes. Sometimes they’re just up too much pre-market and then they don’t hold the move. The reality is the catalyst was not a particularly strong one at all to me. I mean, I looked at it and they got approved for a four or $5 million loan.

Not really sure. It wasn’t totally clear why that was such a strong catalyst. But in any case, yeah, so up 310 on that. The watch list we also had ARCI on watch. This one the volume was too light. It was a nice daily set up, kind of opening up here potentially. But it did not give me an entry point, so no trades on that one. We also had DFFN on watch from yesterday. No trades on that either. It didn’t end up looking good. By the time the bell rang, it had already been stair stepping down way too much. Back in this area, it was looking okay, maybe a retest of the pre-market of the after hours highs from yesterday, but it had sold off and it was below the 200 on the daily, so that one was out of play. TAIT from yesterday was definitely out of play. That ended up being a big red candle on the daily, almost a bearish engulfing candle.

RBZ was the next one that I traded. I took a 6,000 share position on this for the break over $8, which was right about here. As it curled up here, I jumped in. It actually hit $8, and then dropped all the way back down to the 7.67. I got in as it was coming up. It hit eight and I could see buyers, but I could also clearly see there was a seller on the ask that was not moving. I gave it a second and then when it didn’t break, I just boom, bailed out and got back out for a small loss, $150. Today is the day we’re going to be up 160. This is for me a pretty much a flat day. It’s a break even day. I did not get the daily goal of $2,000, but I’m still up more than 20,000 on the week and now on the month of May, which is fantastic.

The really important thing, and I emphasized this yesterday or tried to during the recap, there will be days where the market is really, really hot. Like it was on Wednesday and like it was on Thursday. Those are the days to keep trading, for me past 10:30 to go straight to 11:00, to keep trying to find opportunities. Then they’re going to be days like today where there’s really nothing that’s opening up, things aren’t working and traders are starting to just leave the market. People are like, “You know what? It’s Friday, this is a waste of my time. I’m just going to lose money if I keep trading.” More and more traders are going to start to leave. Then let’s say it’s 11:30, something pops up on the scanner that has good news and actually is a really valid setup.

Well, unfortunately by that time, since 50% or 70% of the day traders out there have already left the market, there aren’t going to be people there to press the buy button, which is what would create the volume and help fuel a breakout. You kind of have to think about, well, what are other traders doing today? This is a Friday. Are they more likely to leave early? Is this the beginning of a long weekend? It’s not, today, but if it were, that would be another really big important factor to keep in your mind because when you’re trading in the market, you’re not just trading against computers and algorithms. I mean, you might be at times, but a lot of times you are trading with and against other actual traders. If you’re trading pre-market you’re trading after hours when there aren’t a lot of other traders. Often you’ll see that the stocks are much more erratic.

They can have bigger spreads, they are just more difficult to trade. That’s also true at 1:00 in the afternoon on a Friday when a lot of the traders have already left for the day. Our European traders, who we’ve got a ton of here, the market opens at 3:30 in the afternoon for most of you guys. By the time it’s four o’clock in… 4:00 in the afternoon here and the market’s closing it’s 10 o’clock in Europe. A lot of people have already long since thrown in the towel. They’re not going to trade until nine, 10 o’clock at night. Some people will but most won’t. You just kind of have to think about that sort of mindset. When are there the most traders in the market because that’s when you’re going to see peak volatility. That’s always the first hour. Then it sometimes picks up again at the last hour as some of the international countries are starting to come online for their morning.

But you look at the S&P 500, typically peak volume is going to be in the morning, and then afternoon it lightens up. The last couple of days actually we’ve had kind of volatility midday there, back at the evening. This is a day where we had to sell off going into the close. But the typical day minus these big after hours spike, there’s volume in the morning and then decreasing as you get further into the day. That’s more of a typical pattern right there. I think that these after hours trades here… I’m not exactly sure what that’s about, but in any case, it’s certainly true with the small cap market. I do have some live trades from yesterday that I will upload. I wasn’t recording today. I’m on my Traveling Trading Station. I’m on the road. But I do have trades from yesterday.

I wasn’t recording on a Wednesday and I wasn’t recording on Monday and Tuesday. The market was kind of slow. Well, today probably wouldn’t have missed much anyways. But yeah. I do have a couple that will go up there for live trading archives for students. Anyways, coming to the end here of a really great week but not a big fireworks kind of blow out, and in either a bad way or good way, just a kind of non event type of day. A couple good stocks on the scanners but didn’t really materialize for traders who focus on trading the long side. Some of you guys who trade the short side may have had some better opportunities if you had shares available to borrow. But that’s okay. Right now I’m just happy to be off to a great start for the month of May. Up $20,000, 50% to the day… to the monthly goal.

Today was just a day where I stepped up, I didn’t connect and so I’m not going to force it.I’ll just take the breakeven day, which is essentially what this will be and live to trade another day, be back at it on Monday. If I don’t have the chance to hit my daily goal, 2000 to four or $5,000, then there’s kind of no point in trading because on days when the market is hot, like yesterday, I can make $7,500 or 14,000 like the day before, and when the market’s not hot, it doesn’t matter how much you trade, you’re just not going to find those big moves. Best strategy is just to step back and hold your hands. It can be hard to do that, but it’s the right thing to do.

I wish you guys luck if you do end up keeping at it here this afternoon, but probably I really don’t know what you’ll get out of it. Most likely you guys are probably just end up shutting it down here pretty soon. I will see you all back at it first thing on Monday. Remember, the new chat room for small cap students is launching on Tuesday. Those of you who are verified 100K Club members, you could send over a copy of a broker statement, we’ll verify you and then you’ll get that badge on your name and the new software. All right everyone. I hope you guys have a great weekend and I’ll see you all on Monday.

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