Warrior Trading Blog

-$1k is OK | Mike’s Trade Recap

recap

What’s up, guys? I’m here in New England at our office, checking out the team and trading with Ross. Unfortunately today, I am red. A thousand bucks. I took a loss on two trades.

 

I was stopped out of Tesla first, and then I tried to get a trade to work on LUV, and unfortunately that came back and stopped me out as well. But, good thing is, is that a 17000 trade, last week, and a $2500.00 trade yesterday. Still, well in the green, keep those losses small and we’ll be back at it first thing tomorrow morning.

All right. Good afternoon, guys. Let’s jump in and do a recap of this mornings action. Fortunately, it was a red day. I ended just over a thousand bucks in the red, but hey, that’s okay. We’ve had a lot of great days this month. They’ve been relatively big days. Small step back is fine. I’m okay with small losses. Just talk a little bit about how that took place today. First one, was LUV. Now, this one had a really good technical look on it, in it was breaking through a very significant pivot here on the daily. Let’s take a look and check out the daily chart, this LUV. Big pivot in through this $50.00 level. 50 bucks, if we expand this chart way out, we’ll see that it has a real nice pivot into this $50.00 level, and that’s definitely something you want to pay attention to. When you have those big whole dollar levels, $50.00, $100.00, those are big cyc levels, too. If they happen to be at the same spot as a significant pivot, is definitely a point in time where you want to pay very close attention to the price action.

What I liked about this today is that if it did break below the $50.00 pivot and started to sell, there was potential for this thing to break down pretty nicely, and back towards the $45.00 number here. What I tried to do is as soon as it broke it this morning, and we’re seeing some price action against that $50.00 level from the underside, confirming the weakness, I jumped in short at 50 bucks. We started to get a nice fade down towards 48, but it did that same sort of action we’ve been seeing lately, wig saw back.

Now, I did take off a nice piece of profit here as we started sell into the window, below the $50.00 level, down through 49.40s, but unfortunately I didn’t get all of it off. I was looking to get down near 48 for the whole thing, look for a quick two points on this trade. We had this quick snapback and I stayed pout with it here, I actually added some back against that $50.00 level to see if we could roll back over, which we did look really good, we looked like we wanted to, but we held that upward trend here and sat against that 20 moving average, that $50.00 level, the VWAP.

Then, once we got this pop through, I stopped out. I did catch some slippage on this, unfortunately. It popped through 50 kind of quick, made its way up to 50.50, 50.60s really quickly, and by the time I got out it was right near 51, I gave back my win on this, plus a little bit more, which isn’t the ideal situation I understand that. I was really trying to get this trade to work with below 50 bucks, because at a really nice pocket, really good technical set up, and it had some relative weakness to the overall market. Now, this is a situation where, could I have stopped out earlier? Yeah, I could have. Definitely. I was risking the profit that I had made to keep me in the trade, in the event it wanted to reject that level and turn over, and really start to sell. Sometimes, I will do that because there’s much more to the trade to be had then a quick sale.

Today was just not one of those days, probably because the action just hasn’t been in the favor of continuation and momentum. That’s just a different type of market, we got to trade it a little bit differently, be a little bit quicker on our feet. And just understand that we don’t have a ton of momentum or continuation right now, and shift our strategy a little bit. That’s okay, that’s part of being a trader is adapting. As a trader, we all know we don’t win every day, and today is just one of those days where it wasn’t in my favor, it was funny. We were, me and Ross were driving into the office this morning, and we were talking about what’s going on in the market, and I was saying that there’s a big gap taking place again, and typically that’s a sign for me to sit on my hands because when we have these gaps in the market overnight, it always makes it tougher to trade. I know the type of trading that I’m doing, it poses a real problem for me. I typically try to stay away from the action for a while just to see how it plays out.

Of course, it plays out in that effect where I end up in the red, but you know what? It’s all good. We’ll be back at it and be able to make that back real quickly. In any event, let’s take a look at the next trade that I took, Tesla. This one looked really good. We had this really nice wedge playing out on it here in the pre-market. I really liked this for a gap fade, as you can see we were retesting that descending resistance, and we had an ascending support here that fell in line with the major moving averages off the daily, really nicely. We had 100 day and we had a 200 day fall into place there, and I actually tried to get short on this, right out of the open at 315 as it plunged. I just wasn’t quick enough and I missed that initial trade. Being that I had a little bit of FOMO on this, I wanted to try and get it, see if I can get a continuation move.

If we dial into a faster timeframe here, you’ll see where I tried to enter, it actually was … I’m still okay with the entry, it just was one of those situations where I didn’t get that quick continuation, which is definitely a risk when you’re trading these higher priced names and they have a little bit more volatility to them. What I was looking at on Tesla here, was this. We had this initial lope it in, we were grinding back hard, we were holding this trend. And right here, when we started to break that trend, we were also breaking below the daily 100, the daily 100, and that pre-market wedge we had been putting in. 310 is where I got short, looked really good here, I thought we were going to go to lows and beyond, and hit a really nice trade. And it caught support and routed back out here. I stopped out at just over 311.

Took just over a point loss on that, again, on a stock like Tesla, you got to have at least that type of stop and you gotta understand that it’s going to move a lot. I decided to stop out on that, took a little bit of a loss there, and that’s what made the loss overall about a thousand bucks. Again, big trade, about a week and a half ago for 17000 plus. Really nice trade yesterday on AT&T for 2500 bucks, so quick step back, it’s all part of this strategy. I understand it. It’s a relatively small loss, and it’s really important to be able to play that defense and navigate the markets when it’s seeing this choppy, erratic action.

In the event guys, we’ll be back at it first thing tomorrow. I’m up here in the New England office with our team, and going to go out and enjoy some of this change of season weather and walk around the town a bit. Everyone have a great evening, and we’ll be back here first thing tomorrow morning.

Oh, hey. I didn’t see you there. 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.