Warrior Trading Blog

+$1k Going Long and Short! | Ross’ Trade Recap

What’s up, everyone? All right, so mission accomplished. Finishing the week with one more green day. This week, it was pretty good, overall. Monday, Tuesday, great. Oh no, sorry. Tuesday, Wednesday was great. Monday, for labor day, the market was closed. Thursday, red day. And I was disappointed because I got a little aggressive. I’d been a little complacent, little sloppy because I’ve been on such a great green streak. I’ve been jumping things right off the scanner and well, that bit me yesterday. But today I set the goal, bounce back just with a green day. I was not trying to make back every penny I lost yesterday. That’s not what it’s about. It’s about just clearing the slate, and putting that day behind me, and turning a new leaf. So today I took two trades. I have two winners and I’m locking up $1,000 of profit, which is great. So I am totally happy with that. Be back at it first thing on Monday morning.

And guess what? In the description, you guys will see a link to register for my webinar this coming Monday at 7:00 PM Eastern. So those of you guys who are still trapped in the nine to five grind who want to learn a little bit about what it means to be a day trader, how I find the stocks that I trade every single day like NTGN today, how I find low risk entry points, how I manage my risk, and where I try to start taking profit once I’ve gotten in a trade and I’m in the green. All right, we’re going to be breaking all of that down Monday at 7:00 PM, so you guys better register, and everyone who registers will get a free copy of my bestselling book, How to Day Trade. All right, so hope to see you guys 7:00 PM Monday. Everyone else, I’ll see you first thing Monday morning, live streaming 9:15 for the watch list. Hopefully we’ve got some great stocks on the scanners.

All right everyone, so we’re going to do our midday market recap. Go over the trades from today. I took two trades on NTGN. Two winners, which is great. One long and one short. My first trade today was to the short side and I made about $600 which was surprising. So the majority of my profit today was from going short, which is very unusual. Typically I trade to the long side, so this is a little bit different, but NTGN was an interesting stock. This is the area where I was looking at being short. Now this was on the Gap Scanner this morning, but I wasn’t really that into it with a 17 million share float, not being a history of big, big moves. I just thought it would be a little bit of a grinder. I just didn’t expect to see really anything that exciting out of it.

And I think that it did exceed my expectations in the fact that it broke the pre-market high of 370 and it did squeeze up to a high of 425, so as it squeezed up here first to 384 and then 390 and then 4, I was looking at it as a possible short, because I felt like it was grinding. I didn’t really feel like it looked like something to me that would take off and really, really go crazy, especially with the float being what it was. So I was looking at a possible short right here and right here. But what I wanted to see was a false breakout. So I wanted to see it break over 4 and then come right back down. And I was going to short at 397, and maybe I would get filled at 399, but my order was a limit order to short at 397, so I typed it in here, 3,000 shares, 397 all right. Hands on the sell button to short. So it comes up here at taps 99, but I didn’t want to short it if it was going to break through, because of course this is what can happen when they break through. I wanted to let it break and then coming back down, short it.

That would make me feel much more comfortable. And it didn’t break through here and then it didn’t break through here, so we have a double top. So I was like, all right, well, but this would’ve been a winner and this would’ve been a winner to. It then comes back up, and now again, I’m still thinking short bias. It rips through, hits a high of 22, does a one minute pullback, which I didn’t trust. I didn’t think it would hold this level, especially with this topping tail. It hits a high of 25, it then rejects and drops down. So as it’s right in this area here, I’m looking at this and I’m thinking, all right, this is the high a day. This is the low, the pullback. I’m going to short it right here for the breakdown below this level. At the time, I thought it was very unusual that… And we were right here, that we had this big move on flat volume. This felt like a divergence to me, and it is, but it felt also just like an indicator that even though it was creeping up, it wasn’t on increasing volume. It’s just flat volume.

And so I said, all right, I’m going to go ahead and take this one to the short side. So I go short, and I jumped in 12,000 shares short. Now on this one you can see right here I had easy to borrow, I didn’t have to pay anything for the borrow, I was just able to go short just with the click of the button, which is great. So I shorted at 10, after the break of 7, and then short again I guess at 8. It drops down to 99. I cover cover, and then I cover two more times at 6 and 8. So, in a period of two seconds got a fairly big range of fills. But I covered on that drop right there. Now I shorted it and then I had to hold for 45 seconds, whatever. For a second there it popped up to 417, and I was like, all right, well, my stop is up here. And so because I went into the red by like 1,200 bucks, as soon as it came back down, I was covering. Because my process generally as a breakout trader is that, if I’m going to buy a breakout, like let’s say… and let me just use arrow. Let’s change that setting here real quick. Edit.

Let’s see. Let’s make that white, like that. There we go. And we’re going to go ahead and save, set as default. All right, so if I had got in right here, for the break over 4, that’s a breakout trade and it was pretty much an instant winner, right? It instantly ripped from 4 up to 420. That’s a breakout trade, instant resolution. That’s what I like to have. So if I get into a trade like this where I short it at 410 and then it pops up to 417, it tells me that my timing was a little bit off. So I timed it on my entry right around there, but it took another minute or so before it dropped. So because I went red on the trade, I change my focus from trying to be a potential big winner to simply trying to salvage the trade, get out break even, or if it does actually do what I thought it would do, I’m going to take profit pretty quickly.

Now the result is that I’m not going to have as good of a profit/loss ratio on this trade because I ended up risking like 1,500 to make only 600. However, if I had held and said, well, I’m not going to take profit until I’m up 3,000 for that true two to one profit/loss ratio, well, I would’ve ended up losing on the trade. So instead I take the smaller profit, recognize that it wasn’t the best trade ever, and then I’m willing to get back in. So then I switch and I go long. And this was based on the five minute chart. For the first five minute candle to make a new high. So arrow here. Oh, come on. I thought we set this as default. Let’s see. Did you do too? I don’t know. Whatever. So yeah.

So I got back in here for the first candle to make a new high. That was 16, 17. It breaks, it hits a high of 23. I was looking for it to break over high a day. It didn’t. And so I got out and made $400 on the long side there. So really nothing super exciting. $1,000 halfway to the daily goal and I’m happy with that. But I would say that it definitely wasn’t the easiest day, today was a little bit choppy. And so I’ll just be content to make a little money, finish the week on a green note, and as always live to trade another day.

Reminder, this coming Monday at 7:00 PM Eastern, I’m going to host a free workshop. So for those of you guys watching on Facebook and YouTube who are still in the nine to five grind, who want to hang out on Monday night and learn a little bit about what I do here every day, which is trade the market for about an hour. I’d love for you guys to register. So those of you in the chat room, I will drop the link for you, those of you on Facebook and YouTube, I’ll put the link here in the description so you can check it out, and hopefully I’ll see you guys registering. I also encourage you to keep an eye on notifications for Facebook and YouTube live over the weekend because I will jump on from time to time and do some impromptu Q&A, and you just be available. So I will see you guys over the weekend, and I will definitely see you all back here on Monday morning. Hopefully we have some good stocks on the Gap Scanner, can make a little bit of money. Right now, let’s see, green on every day of the month except for yesterday. Yesterday was a red day, but that’s okay. Green is good and I’m green on the week, which is great.

So we’re off to a pretty good start here in September, and I’m looking to continue that through next week. All right, so that’s the game plan. I hope you guys have a great weekend, study up. Those of you guys who are already in the classes, market is just going to keep picking up here as we come towards the end of the year. October, November, December. That’s when things really heat up. Those are the months where I average about… Well, in November, December $70,000 a month. So I’m going to be trying to really step up, and maybe this’ll be a year where I can be averaging 80 or 90 or maybe even a hundred thousand for those two months. The best month of my career right now is $117,000 in one month, and I know I can do better, because on that month I was up over 125 before my last day being a red day, so I can do better. Let’s see if this is going to be the year.

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