Warrior Trading Blog

+$38,824.37 in 3 days! November $100k Challenge 38% of the way done!

3 days

+$38,824.37 in 3 days! November $100k Challenge 38% of the way done!

All right, everybody. Let’s do our Friday mid-day market recap. We’re going to go over the trades from today. This has been an incredible start to the month. We’re three days into the $100,000 November team challenge, and we’re at over $38,000. We’re 38% of the way there in three days.

Really, I thought that I was setting the bar low by putting the team challenge at $100,000. I really did. I thought that would be conservative. We’d probably be able to do it, but geez, $38,000 in three days is ridiculous.

Today is my 25th consecutive green day, working this hot streak and up close now to $50,000 in the last 25 days, which is crazy. I want to try to get up to 50 days now. That might not happen. I’m going to set the bar high and aim for it. If I come in at 30 days, or 35, that’s still good. But today is the 25th consecutive green day.

Everyone who’s been here in the chat room for the last 25 trading days, you’ve just been able to watch over my shoulder as this winners add up. I encourage anyone watching this on YouTube or watching the Facebook recaps to get in the chat room, because you’re missing out on an incredible hot streak right now. It’s really just awesome.

Anyways, my gains today, for my contribution, $2,240.99. I’ll drag this up, so you guys can see it. Let’s see. Let’s see, all right, so you guys can see there. Those of you watching in the chat room, those of you on Facebook Live, I’ll show you the P&L.

The $100K November challenge started on Wednesday and will run through the end of the month. Those are my three days so far. Mike has two days. Today, he made $4,500. Jeff, he’s got two days. He hasn’t added today yet. Roberto hasn’t updated today. John [Elten 00:02:30], $4,600 today, awesome. Sam hasn’t updated yet. [Arsh 00:02:35] hasn’t updated. Jason, $112. Shawna, $567. Josh, $363.

First day of the challenge, we were up $7,777 as a team. Yesterday, $18,000, and today, $12,000 so far. But we’re waiting on a couple people to add in their P&L for the day. We’ll see where we end today. Obviously, there might be some red trades on there today that bring us down, but we’ll just see what it looks like. In any case, today is looking right now pretty good at $12,000.

Remember, we only needed to make $5,000 a day as a team to hit $100,000 at the end of the month. I wanted to set the bar low. I didn’t want to too much pressure on some of these students who have only been trading for five, six, seven months. Some of us have been trading for longer, but I didn’t want to put a lot of pressure on these guys. I want them to be part of the challenge, to have fun.

One of the things that I feel like is when I’m looking at a trade, and even today, I was like, “I don’t want to have a big loss, because I don’t …” When I say big loss, I mean like a $5,000, or $6,000, $7,000 loss. I don’t want to have a big loss, because it’s going to bring down the team average. It gets me back into that mindset of stop out fast. It’s OK to have losses. Just stop out fast, because otherwise, you’re bringing down the whole team.

Today, I had a loss, and I lost $37 on it, actually, my first loser here in November. So $37, who cares? Manage the loss. Roberto losing $11 the other day, even Jason losing $1,000. A thousand dollars for me is my max loss, so it wouldn’t be uncommon for me to have a $1,000 loss. That’s not a big deal. You bounce back from it.

I just want to double-check my accuracy. I know for the month of October, I showed you guys my metrics yesterday, accuracy was 80%, just awesome. Eight out of every 10 trades I take are winners. Accuracy this week, accuracy since November 1st, 85%. It’s ridiculous. Let’s see. I’ve taken 13 trades and won on 12 out of the 13. Let’s see. Now, since this week, accuracy’s been 82% with 24 trades and 19 winners.

Again, it all comes down to having a strategy. Trading is hard in a lot of ways. It’s hard psychologically. It’s hard to follow the rules. Those are the parts of trading that are really hard. But learning the rules, and I teach you guys the rules obviously in our Warrior Pro class, in the Warrior Starter, and then in the Warrior Pro. I teach you the rules, the rules that I follow. Your job is to implement them every single day and to have the discipline not to deviate away from that strategy. Trading is easy once you learn the strategy and once you decide that you’re willing to be disciplined enough to follow the rules every single day.

And yes, we will have hot streaks like this that certainly make trading feel incredibly easy. And then we’ll also have red streaks, where we’re struggling to be consistently green every day of the week. Those are the days where trading is going to feel hard. The thing is we’re not doing anything really that differently. It’s just the market changes. We have to be able to adapt to a changing market and emotionally pivot.

When you get used to making $4,000 or $5,000 a day, and you start doing the math, and you’re like, “If I can do $2,000 a day consistently, that’s half a million a year. Three thousand a day is $750,000. Four thousand a day is $1 million.” You start putting the numbers together, and now when you have a day where you only make $400, you’re like, “What the heck? Four hundred dollars doesn’t cut it. I need to make $1,000 today. I need to make $2,000.”

But listen, all things considered, $500 a day is really good money. Sometimes that’s all the market’s willing to give us. You’ll see there’s going to be days on this calendar where I’m sure Mike won’t trade. He won’t see any good set-ups, probably the same with [Arsh 00:07:21], possibly true with others. John, myself, Shawna, I don’t think there will be any days that we don’t trade, when we actually come into the market and don’t trade, because the three of us I know are willing to scalp and go for small winners. Sam, and Jason, and Josh, I’m not as sure about. We’ll see if they have days they skip.

But anyways, so there’s the total right now, $38,824.37. Dang, not bad. All right, so let’s go over my trades for the day, my contributions to this November challenge. I’m going to move that over. I’m going to bring this back down here.

OK, DCIX, this was the big winner today. How much is it up right now? It’s up 148%. Right now, it’s at $6.25. This morning, when we were putting together our watch list, it was at $4.40. I said it in the room. This is the one that everyone’s eyes are going to be on. This is the leading gapper. It’s the number one biggest gapper in the stock market today. We want to watch this. It’s gapping up, and it has a low flow, and it has a recent reverse split.

The thing to remember about reverse splits, and this is a stock that when we look at the daily chart, has done five reverse splits. People were asking me in the chat room, you guys were like, “Why is the float so ridiculously low? That’s crazy. It shows on Trade Ideas as a quarter million share float. How can it possibly be so low?”

The thing with the float is that every time the company does a reverse split … and you can see here, this daily chart is hideous. It’s ugly. It’s just totally red. You see the S on my chart for split, so we’ve got one, two, three, four, five. I don’t know the ratio of these splits. They might’ve been four to one, five to one, three to one.

But let’s just say, these are all 10 to one. Let’s just say, for instance, you start on this day with 100,000 shares. You’ve got 100,000 shares of this stock, but it’s dropped, and it’s only at 10 cents. All right. It’s at 10 cents, so 100,000 shares at 10 cents. They say we’re going to do a reverse split, and it’s 10 to one. Tomorrow, the stock is going to open at $1.00, and your 100,000 shares at 10 cents are going to become 10,000 shares at $1.00. You still own the same dollar value of the stock, but the price is different on the reverse split. So you’re like, “OK, now I own 10,000 shares to $1.00. Fine, whatever, same thing.”

Then over the next couple weeks, it goes down to 10 cents again, so the company does another reverse split. Let’s just say, for instance, it’s 10 to one again. So they’re like, “OK, you have 10,000 shares at 10 cents. Tomorrow, you’re going to own 1,000 shares at $1.00.” You’re like, “Again, OK, fine.” Again, same dollar amount, now you’re 100,000 shares at $1.00. It goes back down to 10 cents. They do it again. Now you’ve got 100 shares at $1.00. They do it again. Now you’ve got 10 shares at $1.00.

They keep doing these reverse splits. So the float, which originally might’ve been 10 million shares, every time they do these splits, it goes from 10 million, to 1 million, to 100,000, to 10,000, if they were doing to ten to one. I’m not saying that these were, because I didn’t check to see what the reverse split was. But the point is, every time they do the reverse split, the available shares get smaller.

All right, so this is a stock that right now has a very low float, and we know that it can move very quickly. We know that, because we made some good money on it last year, but it just has the technical characteristics of a stock that can move fast. A recent reverse split combined with a low float, this bottoming curling pattern, and this can suddenly trap people who are short or who just were short, and finally, today’s they cover, because it’s bouncing up so much.

This was it, a low of $1.56 yesterday. Yesterday was a low of $1.56. Today is a high of $6.24. That’s a big move, 300%. It’s up 150% today, and I’m up $1,545 on it.Now, I could certainly say I could’ve done better. I could’ve capitalized on it more.

I told you guys yesterday I didn’t know if I was even going to trade today. I flew from California back to the East Coast yesterday afternoon. I landed at midnight. I had to get my bags. I had to drive home an hour-and-a-half, or whatever it is. I finally fall asleep at like 2:30 in the morning. I happened to wake up, because the sun was out at 8:30. I was like, “I’m awake. I guess I’ll trade.” I got up. I came into my office, and I told myself, “Look, don’t try to be a hero today.” I’m a little tired.

When I did this, I did the same thing when I flew to Italy. I flew to Italy overnight. I landed at, I don’t know … I got on the plane at like 9:00, landed at 6:00 in the morning, or something like that. I make my way to the hotel room. I sit down, and look, it’s 2:30 in the afternoon, 3:30 in the afternoon. The bell is about to ring East Cost time. I might as well trade. And what did I do? I lost $7,000. Half asleep, I lost $7,000, and I felt like an idiot.

Today I said not going to do that. If I trade, I’ll trade with small size. On the DCIX, you’ll notice that my very first trade, which was a great entry at 336, was only 1,500 shares. Then I doubled to 3,000 shares at 48. I was being more conservative. And I also told myself, “Look, all I really want to do is take a couple trades, be green on the day, even if it’s only $500. I just want to contribute to the challenge. I don’t want to miss out on a day.” But I certainly wouldn’t want to have a red day, because I would just feel like such a jerk if I did that.

I went small on a set-up that I really thought was good. I went small, because in case it did a false break-out, where it popped up, and then immediately tanked, which we have seen on a lot of gappers recently, I was a little worried about that. That’s why I went smaller. Got in at 36. It pops up to $4.80, then $4.89. I’m selling on the ask, taking some profit.

Just to break down the one-minute chart, pre-market high on this was the half dollar of $4.50, $4.49. As soon as we started popping up, I jumped in at 36 as a starter, because I was very confident that we would at least double tap against pre-market high and that we would probably break it by a few cents, maybe 50, 55, something like that. I was getting in for that scalp. Then all of a sudden, boom, it pops up to a high of $5.29. Did I sell us too soon? Yeah, I did. Could I have been more aggressive? Yes, I could.

John, he made $4,000 on the same trade where I made like $1,200. He took bigger size. He was more aggressive, and that’s fine. He was in the place. He had done his pre-trade routine of sleep well, eat well, and get mentally prepared, go over the watch list. I hadn’t really done that, because I was tired, and I didn’t have breakfast. I didn’t want to be as aggressive, so I’m totally OK with the way I traded DCIX. That was a good trade, entry at $4.36 and then move up to a high of $5.29. Again, this left a lot of profit on the table for anyone in the chat room who wanted to take a piece of this, get in at $4.50 and scale out on the move up.

That was my first trade. I took a couple of scalps on it, ended up making another $400 or $500 on those scalps. On one-minute pull-backs, the first one was at 9:34, the second one at 9:37, as you guys will see here on the order entry window. There’s 9:34. There’s 9:37 down there. Once I had a cushion on the day, I was a little more aggressive with share size, and then I scaled it back down.

The last trade I took was LBIX. This one hit our high-day momentum scanner. When it hit the scanner, I looked at it and said, “OK, this has some potential.” It made a big move on Wednesday. I jumped in this at $2.14, pops up to a high of $2.38. I was able to lock up $695. With that, felt like I was in pretty good shape. Tried to take a stab at $6.35 on DCIX during this consolidation, but it didn’t get filled on that, so no big deal.

Anyways, finishing the morning up, $2,240.99. And team challenge today, still waiting on a couple people to enter their P&L. But it looks like we’re sitting right around $12,000 today as a team, the 10 of us. The 10 of us are up a combined profit of $38,824.37 right now. We are 38% of the way to the $100,000 challenge, and we’re only three days in. If we kept having good trading like this, maybe we would be on track to make $300,000 this month. But let’s start with the $100,000 challenge, and we’ll finish it up. If we blow it out of the water, then for December, maybe we’ll set the bar a little bit higher.

In any case, regardless of what the dollar amount of the challenge is, it’s fun to be doing this with these other traders for you guys to be able to watch. This is just a cool idea that we had.

We’re going to keep it going through the whole month, so those of you on YouTube, make sure you subscribe so you can watch the recaps every day. People on Facebook, feel free to leave comments down in the Comments section. We’ll come back and answer those later. If you have any questions about the trades, or the strategies, or whatever it is, we’ll be happy to answer those.

All right, so that’s about it for me today, finishing up here. I hope you guys all have a great weekend, and I will see you back here first thing Monday morning next week. All right, have a great weekend, everybody. See you on Monday.

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 any time I go live or upload new videos. Until then, happy surfing.