Warrior Trading Blog

+$18,558.14 As I Cruise Over $100k In Profits On The Month!

$100k

+$18,558.14 As I Cruise Over $100k In Profits On The Month!

 

Oh, hey. I didn’t see you there. Well, I was just signing a copy of How To Day Trade by Ross Cameron. I’m expecting to sell a lot of these. I just broke over $100,000 on the month. Remember yesterday when we were sitting here, hanging out with June, and I was talking about how sometimes getting knocked off the horse is what you need to get back up and start fighting? To get really aggressive.

Well, that’s what happened today. Yesterday I lost $2800 and I was saying to myself, “That’s disappointing because it means I now have $18,000 between me and $100,000” or around $17,000. I was not sure if I would be able to do it. In order for me to make $100,000 this month, to have the first month ever where I broke over $100,000 I needed to have really good performance for these last five days of the month.

Yesterday losing $2800 I needed to be averaging $3000 a day with no red days. Having a red day started to make me think that maybe it wasn’t going to happen for me this month. I got knocked down. One of the things that I talk about a lot with trading is that feeling of getting knocked down and how difficult it can be.

The worst day I ever had trading I lost over $30,000 in one day. It happened really fast. Last year the worst day of the year was a $15,000 loss. Actually, I had two $15,000 red days. It’s hard. Dealing with the emotions of losing $15,000 in one day is not easy. Losing $30,000 in one day is not easy. I know traders who have lost a lot more than that.

Something that happens when I lose $15,000 in one day is pens explode. Last time I lost $15,000 I just sat there and popped a pen and I got myself a Jackson Pollack ceiling. I look up at that ceiling and it reminds me, “Bring it down. Take a breath. It’s all right. It’s just one day. You’re in this for the marathon. It’s not a sprint.”

I said that this morning. I said, “Guys, this is just one month.” I’m at 400. As of today, I’m at $436,000 in my account that started with $583. I still have $566,000 or $564,000 before I cross a million dollars. I’m not even halfway in.

I like watching the Tour de France and it’s like we’ve got one leg, one sprint. If you end up screwing it up that doesn’t mean you blew up the whole race. You still have a lot more opportunities for redemption. On the same note, you don’t want to use all of your energy just to win the yellow jersey on one day and then you used up all of your energy, all of your mental capacity, and now you can’t perform for the rest of the race. It has to be a marathon.

There’s this story I was listening to about … I can’t remember where I was listening to this but about I think a cross-country coach who taught the students who were running, “We always finish strong.” It’s not about getting off to a really great start. It’s about finishing strong. What she did was instead of timing students just for their best time in the sprint she would time them from the position they were in when they crossed the two miles left mark and how many positions they could gain between the two miles left and the end of the race.

Students who passed the most other students in that last leg are the ones that she said did the best. What it taught the students to do was to pace themselves and just ingrained this philosophy of we finish strong. It’s not about starting strong because it’s not, right? If you flop right out of the starting gates it’s about finishing strong. That’s what the marathon is all about.

I’m pretty competitive. I am. When it comes to sports I always push myself. This summer when I was riding my book doing 10 miles up and down the highway I was going as fast as I could because I was trying to set my own best time. There was a day where I almost fainted on my bike. It was like 85 degrees out but I was trying to set my personal best time.

I get really aggressive … Family board games, I am pretty much not allowed to play them because I flip the board. I’m just so competitive. I can’t help myself. It’s just in my nature. It definitely comes out in my trading. In California, I was playing some ping pong. I want to spike it. I want to nail it. That’s just the way I am. I have that drive to really try to compete. It’s not just with other people. It’s also definitely against myself.

With trading, I set this mark that I would have a $100,000 month. I didn’t think I would make $18,000 today. I didn’t think for a second I would have that type of day this morning. The bell rang, we saw a couple of good opportunities, the big one was BSPM. I jumped in, I started riding momentum, getting aggressive, and this day just became the best day of the year. Best day of the year so far. I think today is the 18th trading day of 2018. I’ve got two red days under my belt and the rest are green days and I’m up right now $100,005 on the month.

Again, it’s not just about breaking $100K. It’s about closing above $100K, staying above $100K. For the next three days of January I’ve got to be disciplined. I’ve got to keep building my cushion. I have to remind myself that this is a marathon. I’m not even at the halfway point of this account.

Yes, I’m going to finish the month of January in really good shape, which is great. That’s finishing one leg of the race but I’ve still got … If each leg is $100,000 I’ve still got five plus legs left. I’ve got a lot ahead of me. I need to stay focused, I need to stay disciplined, and I just have to remind myself that. I don’t want to get so hyper-focused on short-term goals that I lose sight of the big picture.

I encourage all of you guys to think the same way because some of you you’re just getting into trading or you’re just starting to get interested in the market. Making $500 a day might be a big goal. There may be days where you’re not consistently making $500 and you start to get stressed out, you start to get impulsive, you start to get desperate. That’s going to impact your trading, you’re going to start losing money. Then you get more stressed, more impulsive, and it snowballs.

Instead you have to think, “This is a journey.” This learning to trade can be a year-long journey. For most of our students it’s a three month warrior pro class and then another two, three months of training. It’s like a four to six month learning curve before they’re really starting to ramp up and become successful. You’ve got to figure this is a year-long journey and, “A year from now, I want to be a successful trader.”

We’re at the beginning of the year 2018. New year, new you. It’s a great time to get started. Again, if you have that very short-term outlook you can get yourself overwhelmed. I just encourage you to step back, look at the big picture. Every day that you’re sitting and watching the market, that you’re watching these charts, you’re becoming a little bit of a better trader.

All right. We’re going to break down all of the trades from this morning in today’s midday market recap. Before we do that I want to show you guys a couple of clips of me playing ping pong in California.

What’s up, everyone? We’re going to start breaking down the trades from this morning. I’m impressed. I really wasn’t expecting to have such a great day of trading but things just came together and I’m just finishing here the best day of the year. Up $18,558.14. Let me show you my P&L here.

I traded across two accounts. I’ve got my main trading account that’s got $17,021 and I have my IRA account that has $1537 of profit. This account, the IRA, had $9777 this morning. It’s up more than 15% in one day. I locked up a trade on BSPM. Remember, I was still holding this trade overnight because I didn’t want to make it a day trade because I knew it was going to be a loss but it was going to be only a small loss. I was like, “I’ll just hold it overnight and I’ll sell it in the morning.”

I sold that this morning. It doesn’t count as a day trade. That means this week I’ve taken two trades in my IRA, the first two trades ever, and total profit is … Let’s see, today is $1537 plus $1200 on Monday or was it Tuesday? That means $2737 versus the $8300 starting balance. That’s 32% in one week. Not bad at all. The target on this account is to get it above $25,000 as soon as I can. I’ve got a ways to go. I’ll open on Monday around $11,500 or $11,200. That’s cool there.

The only trade I took today was BSPM long at $2.97, selling at $3.45. About 50 cents there on 3000 shares, $1500. Obviously could have held it longer since BSPM went all the way up to $6 but hindsight is 20/20. You just never know how high it’s going to go.

Let’s see, I’ll do full-screen here. I don’t know why we keep having this issue with Facebook. It looks like Facebook isn’t even updating. It’s such a pain. I don’t know what’s wrong with it. Oh, no. There it goes. It’s updating very, very slowly. Well, I know the audio is coming through okay on Facebook. I’m not sure what I should do.

Maybe just leave it for now and you guys who are watching on Facebook if you go onto our YouTube channel later today I’ll have this same video uploaded on YouTube and you can see it with all of the detail. In the description of this video I’ll just put a link over to our YouTube channel so you guys can watch it there.

All right. Let’s see, we’ll just keep going with the recap today. Again, this is, as of right now, my first month … Well, that’s not true. I crossed over $100,000 in November but then I fell back below it. The only way for me to stay above $100K right now on the month is to either not trade for the next three days or to trade smart for the next three days. I’m going to trade smart. That’s the thing to do. Just because you cross one line doesn’t mean you stop.

I just have to trade really smart for the next three days and try to keep myself above $100,000 of profit on the month. Yeah, let’s go back and look at the first trade. The first trade of the day today was LFMA. It’s a $267 winner for me. A little bit of a small win. This was based on anticipating a break of pre-market highs. I got in it as soon as the bell rang.

I was obviously disappointed in this because it popped up to a high of .57. I got in it at .48. I was pretty aggressive on the size. I took 15,000 shares of this. I was thinking it would really squeeze. I had a target of $272. I was thinking a $2000, $3000 winner. That didn’t happen. It hit a high of .57 and then just got really sluggish. I stopped out at .51, .55, .51, .50, .46, .48, .46, and .37. I ended up making $267 but obviously that was not a very good trade. A little disappointing on that. That was LMFA.

Then our first stock on the scanner this morning was BSPM. BSPM, boom, it hits the scanner at $2.69. Now we were already kind of watching this because yesterday it had popped up a little bit. It had popped up to $2.50 and pulled back. We kind of had it on watch as maybe a stock that was worth just keeping an eye on in case it started to get more volume because of this nice wedge pattern on the daily chart.

Now as it turns out yesterday it didn’t really do that much. It pulled back. Then this morning it was gapping up a little higher and it started squeezing as soon as the bell rang. It squeezed from $2.57 up to $3.00 and that’s where I jumped in it because I saw it was starting to move. My approach is I see it on the scanners, I see the setup, I’m going to jump in.

3000 shares long in my IRA account at $297. I got in in my main trading account at $3.00 and then I added at $3.17 an $3.28 and was selling at $3.57, $3.48 and $3.40. I was pretty aggressive buying it pretty high. You know, right into that first squeeze but I did think it had a lot of potential. It taps a high of $3.65 and then it pulls back a little bit and then surges up to a high of … Let’s see, well, all the way up here to $436.

My next trade on this … I was scaling out all the way through $4.17 and $4.11. I then added back at $3.90. Getting in here at $3.90, 10,000 shares, selling at .95 because it didn’t really hold up very well. .90, adding back at $5.35, adding at $5.40, selling at $5.59, $5.42. Oh, sorry, sorry, sorry. Which one was that? I just got myself distracted.

$5.35 and $5.42 that was a brief trade I took on NYO. NYO was off our scanners as well. This one had a pre-market high of $5.60. As it started to squeeze up I jumped in for the break over the half dollar anticipating that break by getting in at $5.36, $5.35. It ends up hitting resistance up here in the .60s. I sold some at .59 and the rest as it came back down.

Then back to BSPM. I got in this again at $4. This was on this pullback right here, this one minute pullback. I added at $4. I tried to add in my IRA but I don’t know what happened. I must have pressed the button wrong. It didn’t get rejected. It just didn’t even get received at all. Nothing happened there. That was strange. That was on BSPM.

Back in at $4, adding at $4.58, adding at $4.52, selling at $4.55, adding back at $4.79 and $4.80. Selling at $5. Getting in, getting out, scalping this squeeze up to $5.09. The pullback, this sort of grinding action through here. Adding back at $5.03, adding at $5. Selling at $5, getting back in at $5.20. Selling at $5.38, $5.36, adding at $5.41, selling at $5.52.

Really active, buying, selling, scalping these breakouts. Adding at $5.45, selling at $5.73. Adding at $5.80, selling some at $5.87. Looks like some at $5.60. I guess I took a little bit of a loss on those shares. Adding back at $5.75, selling at $5.90. Best exit on this one was $5.95. Height of day is $5.97.

Not bad. Really, not bad at all. $14,000 profit on BSPM in my main account plus $1500 in my IRA account. This just was a stock that took off today over 100% out of nowhere. It started to pop up, got an early trade on it, built my cushion, added back on the pullback on this one minute chart, scalping it through the moves up here. This was sort of a grinding period. It was a little bit choppy but then I got back in right here as it curled back up for a squeeze through high of day. Hit a little resistance at $6 and then it’s kind of faded down through there.

It’s worth watching on Monday if it holds up in this level. It’s still holding well above the 50% line of the move. I think there’s potential there. I just don’t know exactly how well it’ll hold up over the weekend. That was BSPM. Some great trades on that one.

Then the last trade of the day was on BURG. This one hits our scanners and we had traded this one a few times earlier in the year or actually it was last year. Let’s see, let’s go up to this one. BURG, here it is at $4.09, $4.06. It first hit at $3.70, $3.74, $3.79. When I see a stock hit the scanners several times in a row I see all the volume. It makes me more aggressive about jumping in. I got in this pretty high at $3.80 and $3.88.

It ended up getting halted on a circuit breaker at $3.90. I was kind of in right at the high. The reason I jumped in this so quickly is because I knew it was a stock that’s a former runner. It’s a stock that has made big moves. You can see on these days even though this is a red day and this is a doji, these are days where the stocks spiked up like 50 cents or a dollar per share. It has a lot of range.

When I pulled up the daily chart I recognized that it had room up to $4.32 and above that level of the high this candle I had room up to $5.14. Since BSPM was so strong I thought, “Okay, this has potential.” I jumped in it. I ended up finding out that this was a newsletter alert.

What sometimes happens is different … There’s all kinds of newsletters all around the world for trading stocks, commodities, all that stuff, cryptocurrency. What newsletters usually do is they put out either a report on a stock or they put out a buy alert because the person thinks its a good setup.

That can create a spike of volume because traders see it and they’re like, “Oh, this person has put out the alert. I’m going to jump in.” Now when we see it hit the scanners we don’t really know what caused the spike. We don’t know if this company just came out with a breaking news headline that’s just now hitting the wire. We don’t know if all of a sudden a short seller has decided to cover a big position and that created a little bit of a pop. We also don’t know how many other people might be short who would also start covering as this continues to squeeze up. We don’t always know what causes it.

What we focus on is the momentum. The stock is squeezing up. What I often will do is jump in with a 10 cent max loss. I’m jumping right in as the stock is squeezing with a 10 cent max loss and profit target is usually 15, 20 cents. About a one to one, two to one ratio.

Now in this case it ended up getting halted at $3.90, opening higher, hitting a high of $4.17, and then dropping down. It dropped down and I’m still holding. Then as it curled back up and broke over the high of this candle of $3.17 I sold half at $3.18. Now I didn’t know if it was going to squeeze and continue higher. I thought it might. The fact that it dropped all the way back down to my entry point before curling back up made me think I should sell half now that it’s back up here.

I sold half and then I ended up selling the rest as it came back down to $3.93. A winner, nonetheless, with 9000 shares. It was not a bad trade. It just unfortunately didn’t really hold up. Again, with these you just never know because this one didn’t hold up super well. SMIT, this one also hit the scanners and didn’t hold up super well. CAPR put in a pretty nice move here squeezing up through the highs. I decide not to trade it because I wasn’t sure it was going to work. It ended up working really well. Then of course BSPM worked very well.

That’s sort of the thing where even for me my accuracy is only 68%. I’m not right 100% of the time. Some of these stocks I get into I think that they could go higher and they take me out. Other times stocks like BSPM go much, much further than what I think. If I had known this would go up to $6 obviously I would have held my whole position from $3. You just don’t know.

What you have to do is you have to have a set of rules for how you’re going to trade every single day. You have a profit target and you have a max loss. My max loss is usually 15 to 20 cents. Profit target is also 15 to 20 cents. If I am taking big size there are times I’ll take profit with five cents or 10 cents. Other times I go for the fences and I try to get a 40, 50 cent winner.

Today my accuracy obviously definitely better than yesterday. Today I took a total of nine trades and I had nine winners, not including OGEN, which I sold for a loss in my main account. I didn’t open that trade today so I don’t know if … It doesn’t really count as a loser for today. Well, maybe it does. Nine out of 10 or nine out of nine. However you want to figure it. Accuracy pretty good.

Average win today 24 cents per share with my biggest winner being a 55 cent winner. My smallest winner being only about eight cents per share. Those are pretty good average winners. 24 cents versus a stop-loss of about 10 cents per trade. It’s kind of a pretty tight stop with 10 cent stop, 20% profit target. That’s two to one. If I’m right more than 50% of the time I’m going to do pretty well.

All right. Anyways, that’s about it for me. I guess the reminder is going back to that kind of Tour de France analogy. The month of January is just one stage of the race. My goal is to turn this $583 account into a million dollars. As of today I’m at $436,052.18. I’ve still got $564,000 between me and a million dollars. I’m not even at the halfway point.

Yes, I’m finishing the January stage in really good shape. It’s been a great month. A really great push here. I still have a long ways to go. I need to be focused. I need to be disciplined. I need to just keep trading the very best that I possibly can. I don’t really expect to cross a million dollars by the end of this year because for me to do that I would need to literally make like $660,000 in 2018.

That’s more than double … Actually, a little less than double but it’s close to double what I made last year. I don’t know that it’s realistic for me to set the bar of I’m going to double my gains. Obviously we never know. If we continue to see markets like this that I suppose could happen. Again, it’s a marathon, not a sprint. I’m in this for the long haul.

Yes, the goal is to turn this into a million dollars. That will happen. I have to stay focused on the big picture and not get super caught up in the short-term stages or the short-term sprints because by doing that I can get myself impulsive, get myself into trouble, and end up having a big loss, which I really don’t want to have.

All right. Anyway, that’s about it for me today. Surprise day, a Friday that is now the best trading day of the year. Not expecting it at all but I’ll take it. $18,500 puts me up $32,000 on the week and $100,580 on the month. All right. I’ve got a $580 cushion. I got to stay above the $100,000 level. We’ve got three days left in the month and we’ll see how we can do come Monday morning.

All right. That’s it for me. Again, those of you watching on Facebook you can go check it out on YouTube. I’ll have this midday recap uploaded and the quality will be better so you guys can stream it there. All right. I’ll see all of you guys back here on Monday morning. Enjoy the weekend, everybody.

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