Warrior Trading Blog

207th Trading Day +$9K! | Ross’ Trade Recap

What’s up, everyone? All right. Here we are finishing the 207th trading day of the year in the green. Now as you guys know, Friday I took no trades, and I was kind of disappointed. I saw nothing that looks good enough for me to take the risk.

 

Each time I take a trade, I’m risking between $500 and $1000, so if there’s nothing worth losing $500 or $1000 over, I’m not going to trade. No trades on Friday. This morning, I sit down to look at the watch list or the gap scanner and there was nothing on there that looked good. I was just kind of like, “Well, I don’t know.”

I had one stock on watch that was a maybe and that was BOXL, first daily candle to make a new high. I jumped in and made just under $5,000 on that trade. Then all of a sudden another stock pops up on the scanner, rips. I jump in and make another $4,500 on that. Puts me up $9,000 on the day. Unexpected, but a big green day and I’m happy with that. We’ll break it all down in the midday market recap. Any questions, any comments, leave them below and I’ll come back through and answer them. I love seeing them, so please don’t hesitate to put a comment down below. All right? See you guys first thing tomorrow morning.

All right, everyone. We’re going to jump in here to the midday market recap. Finishing the morning up $9,068.03. That is a big green day and I certainly wasn’t expecting it today. Well, as you guys know, Friday I didn’t trade at all. This morning, the gap scanner was dead. There was nothing on there that really looked good, but we had BOXL on kind of the watch list as a maybe because of the fact that it had been pulling back for several days. BOXL was on the watch list as a daily setup for the first daily candle to make a new high. This was the bull flag, first candle up. One, two, three candles of pullback. First candle to make a new high was today.

Entry at 3.45 and 3.50 and there was that squeeze up to $4. We didn’t break over at four, but that 40 cent move, 50 cent move there was enough for me to make $4,658. That was a nice one. It was totally a daily setup. It wasn’t off the gap scanner. It was just something that we’re watching for a technical breakout. That gave me my cushion right away on the day and then RSLS and INPX were the next opportunities. This ended up being the biggest green day in over a month, which is awesome. Making $9,000 in one morning is certainly a nice feeling. It makes up for the fact that I took no trades on Friday.

I lost money on Thursday, took no trades on Friday, and then today bounced back with a big green day, which is awesome. To have two nice big green trades in one morning is really pretty nice. On RSLS, I could have definitely done better. On BOXL, I couldn’t have done a lot better than how I traded it. Let’s look at BOXL first. Actually, why don’t we look at the watch list, the gap scanners first? For those of you guys tuning in for the first time either on YouTube or on Facebook, really everyday is pretty much the same process. As a day trader, we have the same routine. Yeah, Eric. If you go to warriortrading.com/store, you can see our merch.

You can see t-shirts, sweatshirts, crop tops, whatever you want. We’re not going to judge you, Eric. Eric say he’s buying a crop top almost definitely. Anyways, this morning started same as always. As a day trader, we always have the same routine, which is looking at this scanner. This scanner right here is showing us all of the stocks in the entire market that are going to be opening higher. Stocks only open higher for a small handful of reasons. The biggest reason is because there’s some type of catalyst, some type of news. My job is to find the stock that I think is going to move today. I don’t make money by buying a stock like let’s look at Sprint.

Well, actually that’s even moving more than I typically think, but let’s look at Sirius Satellite Radio. This is the one I use as an example a lot. Today it had a high of 6.22 and a low of $6.12. That is an eight cent range. It dropped at the most to eight cents. All right? An eight cent range. If you took 10,000 shares, which will be $60,000 worth of stock, if you bought it in the middle, at the most you’d be up $400 and at the most you’d be down $400. If you took $600,000 worth of this stock, at the most you’d be up only $4,000 or down $4,000. It just doesn’t move. In contrast to stock are RSLS, this one from $3 up to $7.

If you bought 10,000 shares of this stock, that would be $30,000 at $3. Well, 10,000, you’re up at $4, you’re up $10,000. $5, you’re up $20,000. $6, you’re up $30,000. That is doubling your money potentially in one trade. Obviously, these are the types of stocks that we look for. The stocks that can make these types of moves are always going to have a few things in common. They’re going to have generally some type of strong daily chart. They’re going to have a float of less than 10 million share. Oftentimes they’re going to have some type of catalyst.

The catalyst on this one, there was a headline here, but it’s also a recent reverse split, which kind of increases the potential. This scanner right here is showing me stocks that are starting to move up. This morning, APTI was the leading gapper. However, when I looked at the headline on it, I saw that it was an acquisition. This company has been bought out and it’s going to trade sideways. BVSN. This stock was on the scanner, but only a hundred shares a volume. Oftentimes those are just kind of like false alarms, so nothing there. CCRC. Whoops. This was $13. Outside my price range. I have a cutoff of 10 bucks.

I trade the lower price stocks. All right. Next one down, BBOX. This one is an acquisition. AGC Networks to acquire BBOX. All right. Kodak, Eastman Kodak. This one had a headline, but as you can see here, I was watching it possibly over the pre-market high, which was 3.90, but the bell rang and it sold off. It didn’t give me an opportunity to take a trade, so really nothing there. That was Kodak. Going down the scanner, light volume. Too expensive. Whatever. This one, GSL, I didn’t look at very closely. Ended up selling off a little bit. Pretty much the scanner …

I usually look at the top 10 and there really wasn’t anything on the top 10 that looked that great. That was disappointing, but it’s the way it goes sometimes. I said, “All right. Well, nothing on the scanners. Is there anything we can watch from last week?” BOXL was the only one that I was considering watching from last week. However, I said pre-market during our pre-market analysis that I wasn’t sure it was going to work because yesterday was a big red candle. The trigger on this is always the first daily candle to make a new high, which is 3.50. Now you could have taken this as a swing trade setup. Your entry would be 3.50.

Your target would be 10%, so that’s 35 cents. That’s $3.85. All right. You put a 3.50 buy order, and if the buy order goes through, you have a 3.85 sell order. You could have taken this trade while you were at work. It ended up breaking 3.50. Pops up to 3.85. Hits 3.99. Ends up dropping back down. On this one, someone in the room said, “Hey, Ross. Check out BOXL. It’s squeezing up. It’s getting close to that 3.50 trigger on the daily chart.” Let’s go back here. This first came on the scanner at 3.39 right here. $3.39. On this one, I was like, “Okay. BOXL. I like the look of it,” so I take a starter. I’m in at 3.40.

I add at 3.44. I add at 3.47. I add more at 3.48, and I add more at 3.50. On this one as you can see, I had just under 17,000 shares, which is no doubt a pretty big order. I felt pretty confident on this one. I jumped in it. Back of my mind target was $4 and I scalped the break here. You can see, this is where it did this little pullback. I’m in it right here at this price of 3.50. It pops up to 3.80. It drops back down to 3.69. It then pops up to 87. Pulls back. Hits a high there of 88. Drops down. Ends up hitting a high of day of 99 before selling off. I’m in it for the break of the half dollar, and I sold tiny shares here at 68 and 78.

Sold a good chunk at 71 to book profit. Sold more at 80 and 81. Then ended up selling my last like 350 or 400 shares a little bit later as it dropped down right here. In any case, this was about … Let’s see. Well, with 17,000 shares or 16,000, this was about 30 cents of profit. I took big size on it, but the reason I did that was because the daily setup was so strong. It was a former runner and I really did feel pretty confident on it. I stepped up to the plate with this one and got that breakout. As that was happening in this little range here, RSLS has hit the scanner at 2.42, and then it hits a 2.45. It keeps hitting 2.45, 2.75, 2.77.

As I see it, I look and I think, “Well, you know what? RSLS, this one’s got some potential.” Yes, I lost money on it last week. I traded it on, what was it, Wednesday. No, I traded it on Thursday. I lost money on it, but I knew if it broke over 3.55, the high of Thursday, that it had potential on the daily to get up to $4. I said, “You know what? I like this. I’m going to step up to the plate.” I jumped in it at 2.99 and 3.02. I got partial fills on both of those orders right there. As you can see, partial fills. It hits a high of 3.10 and is halted. Halted at 3.10. It then resumes and I add more at 3.47 and 3.61.

On this one, I’ve got about 11,000 shares, but I’m in at I guess 3.30 or so. My cost basis is like 3.30. It’s kind of in the middle here. I’m going to pull this back to a 15 second chart just to kind of show you what was happening coming out of that halt. Let’s back this up. Back this up. All right. Here we go. It pops up here. I buy it at the top, which is a high entry. No doubt about it. Momentum trading is often about buy high, sell higher. It’s not that typical buy low, sell high type of philosophy. It just doesn’t work that way with momentum. You’re buying something that’s already moving and you’re trying to ride that momentum.

You’re riding a wave as long as you can. You can’t jump on until the wave is formed. If you’re surfing, you don’t just sit on flat water and say, “Well, there’s no waves. I guess I’ll just sit here until one starts to form.” You go somewhere where there are waves and then you jump on it. Here, I jump on the wave at three. It resumes and hits a high of 3.49. It pulls back for a second. Then as it surges back up, I add. It pops up to 3.69 and then drops down for a second to 3.25. All right? Moment of kind of truth and there I was like, “Uh-oh. I’m heavy on this with 12,000 shares. If this drops back down to 3, I’m in trouble.”

But back of my mind target is still … Now that it’s over 3.50, that it could go to $4. Then it pops up to 3.77 and then it drops back down to 3.50. Then it pops up to 3.97 and then it drops back down to 3.56. You can see these candles. Then it breaks over $4 and hits a high of 4.46. I take a little bit of profit at 76, a little at 61 because I started to get a little concerned about it. Then I sell at 90 and then four. Then I ended up adding as it squeezed up to $5. I added up here for the break of five.

But the thing with this again is that it’s so easy to say in hindsight that, “Oh, man, Ross. You were in this at 3.40 or whatever it was. Why didn’t you just hold until $6 or $7?” But there’s no way of knowing that a stock is going to go that high. Just as an example, I’ll just pull up this other chart here. Of course, now RSLS, it’s kind of sad because it’s come all the way back down to 3.10. I mean this made this huge move from $2 up to $7 and then came back down to $3. The good news is that this is volatility and volatility means opportunity for profit, right? You could trade this long and you could trade it short here.

You could trade it both directions, but look at a stock like ANY. ANY, this one, if you sold at 2.50, you absolutely did the right thing because it’s back down at $2. But if you sold at 2.50 and then it runs up to 3.20 or 3.30, do you feel like an idiot? You’re like, “Oh, man. I sold it too soon.” You can’t help but feel that way. You have to kind of just give yourself the permission to take your profit and not beat yourself up. You’re never going to get the top and bottom of every move. If you make money, you’re doing something nine out of 10 traders aren’t doing consistently. Yes, you can always try to make a little bit more.

Maybe in a stronger market, I would have held the whole thing longer. Maybe I would have tried to add it and turn this into a big win. I’ve had $20-$30,000 winners before and they were on RSLS type stocks, but I’ve also had $8-$10,000 losers before on these types of stocks because they’re so volatile, right? If I just kept adding, adding this, I knew it was probably going to happen. I just didn’t know that it was going to happen here. I thought maybe it would happen here or here, or maybe it would happen way up here.

You know it’s going to happen eventually and you don’t want to be holding a big position right here when it happens because that’s how you can give back all of your morning of profit. Anyways, on this one, and I’ll go back and look at this one again, ANY popped up. INPX also popped up. This one I lost 800 bucks on. I jumped in it at $4.18 going into the halt, thinking it was going to continue. It was also a reverse split. Notice reverse split here on the daily chart. This is sort of a catalyst. It came back down to 3.30. I sold at 3.90, which was the right move, and booked my loss. 800 loss, but it was the right thing to do.

Just remember, you’re never going to get the top and bottom of every single move. If you’re making money, you’re doing the right thing. We can always try to capture more profit, and again, maybe in a stronger market I would have held the whole thing longer. I really wanted to hold the whole thing over four, but then these kind of flashes right here made me a little nervous. Of course, when you’re holding full size and it’s a big position, you know that if it does do a big drop getting out, you’re going to get slippage. You’re not going to get a good fill and you’re going to lose even more than you’d like to. It’s all about capital preservation.

Anyways, RSLS, jumped back in it at 4.90. Sold at five. A little over five. INPX, in at 12 and 18. Stopped out of that as it dropped. RSLS back in at 6.15, 6.17. Selling at 6.30, 6.37. Lots of kind of partial fills partially because that will happen because of the spreads are so big. You won’t always be able to get full orders. People are tucking orders in between the spread, midpoint orders and stuff like that. Back in at seven, 500 shares. Stopped out of that. Back in at $5. Sold some at 5.14. Stopped out at 4.80. That one I was trying to do a bought and bounce coming out of the halt right here, but it didn’t bounce.

Cut your losses, keep them tight, and that way you’re not holding as it keeps going lower. But on this one, I didn’t have shares available to short it. That was not an option for me, so I could only trade at one direction. I think I did pretty well on it. I’m happy with these three trades. Definitely a lot of tickets today. Commissions will be on the higher side, but for $9,000, I’m willing to pay those higher commissions. Today was the day to be more aggressive. It definitely wasn’t on Friday. Friday was the day to sit on the sidelines. Today was the day to step up to the plate with bigger share size. This is why I’m leaving more money in my account right now.

I’ve got, let’s see, windows account value. This morning, I started with $130,000 in my account. 16,000 shares times $3.50, that was my biggest position today. 16,000 shares times 3.50, that’s a $56,000 trade that I made 4,000 on. Almost a 10% winner there, which was good. I today didn’t even use all of my buying power, but it’s there in the event that I see an opportunity. If we have a day like today where RSLS ends up ripping up to $8, $10, $15 and then another stock starts to squeeze up and goes up $2, $3, $4 a share, that’s the type of the day where I might want to be in multiple trades at once and really try to put this buying power to use.

But at the same time, I could write myself a check out of this account for $100,000 and drop the account down to, well, 39,000, 30 plus 9,000 today. That would be enough to trade pretty much everything I did today because of course, you have your buying power, which is times three or times four. At this point, I’m just kind of leaving the money there. Probably closer to the end of the year I’ll take a little bit out. If I get up towards 200,000, that’s definitely a good time to take money out, but right now I’m just rolling over these profits and it’s giving me the buying power to take bigger positions and be a little more aggressive.

We did have a stock today that I was watching, PCG. This is PG&E California electric company. As you can see right out of the gates, this sold off pretty hard. I was watching it for a reversal. It starts selling off. It starts selling off. The daily level I was watching was $26.67 and that was because that was the low of this candle. Where is it? I’m going to zoom my chart out a little bit more. Back here in 2009. That was nine years ago. However, that was the level I was watching, a double bottom off that level. It halted going down because of all the wildfires and everything else. It’s been down sharply over the last few days.

The wildfires are certainly not good for their profit margin. They’re going to be having to spend a lot of money rebuilding the infrastructure. But anyways, it drops down and is halted … Where was it? It was halted right here on this candle. I was watching it to buy over $27. It breaks 27 right here and goes 27.25. It then flashes down to $25, dropping $2 per share, and then rips here up to 29 bucks. Had the long bias on it. That was the right idea, but even here, if I bought it right here and then was suddenly down $2 a share, even if it was only a thousand shares, that’s $2,000 in the red.

That’s not fun. It’s probably for the best I didn’t take the trade on it, but yeah, pretty volatile there. Anyways, that’s about it for me this morning. Great way to start the week. I definitely needed this here this month after last week ended up being awash. It put me pretty much breakeven on the month. Last week, I made some money on Monday, Tuesday, Wednesday, and then I lost money on Thursday, and I didn’t trade on Friday. It was breakeven on the month coming into today and now I’m up 9,000 on the month. I mean that’s certainly a nice boost. Couple more days like this and I’ll be in really, really good shape on the month.

It just again goes to show that you can be having a bad month and then in one day turn it all around with one big win. I mean that’s how it often is. Last November, I had a day where I made $30,000, 33,000. It was my best day of all time. Then the next day I made 40 grand. $73,000 in two days trading stocks like RSLS. I was being a little more aggressive on it. I remember buying it was something like this, 10,000 shares at $3, and then it ends up opening closer to four. I was immediately up 10,000 bucks. It surges into a second halt and it halts going up. I’m still holding the full position, and I’ve got like 10,000 shares up $2 a share.

It opens higher again and I sell it up here for like $30,000 of profit. It made this whole move in basically like two candles. That’ll happen sometimes and those are the opportunities to be aggressive. To use a stop order here, I have to go to, was is it, expanded order entry bar. Expanded. Then I can go down here to … Where is it? Is this where it is? Now I’m trying to remember. I haven’t used the stop orders before. Now I’m confused. I don’t remember. Order quantity. I thought it was somewhere in here, but I just haven’t been using stop orders, so I’m actually not sure. You can set them up with a hot key.

That I know you can do. Anyways, 11:30. Up almost $10,000 on the day. I actually was up $10,000 before my last trade on INPX and then one loss on RSLS. Did end up taking two losses today. I lost about a thousand dollars on those two, but today was the day that it was worth continuing to trade. Yup, that’s right. Change day to stop it looks like for order type. Yeah, sorry about that. All right. We’ll be back at it first thing tomorrow morning live right around 9:00-9:15 for pre-market analysis in the chatroom. Hopefully we end up seeing some good follow through and this momentum continue. No doubt it’s a little disappointing to see RSLS drop as much as it did.

I still think it just takes one stock like this to make a big move and then continue to really squeeze out short sellers. This type of drop ends up being a pretty good win for short sellers. I don’t know that this one really is going to be the one that puts the fear into them to not be as aggressive, but maybe because this was a pretty big move from 3.30 up to seven. I’m sure there’s some short sellers who lost money on that squeeze, and I’m sure there are some long traders who FOMO’d into it way up here and way up here and who lost money as it came back down.

Winners and losers on both sides I’m sure, but hopefully you guys did well on it today with the entry first at three and then at 3.50. All right. I will see you all back at it first thing tomorrow morning. Anyone with questions, comments, leave them below and I’ll answer them later this afternoon. All right. Bye, everyone. If you’re still watching, you must have really enjoyed that video. So why not subscribe and get email alerts anytime I upload new content? Remember, when you subscribe, you become a member of the Warrior Trading family.