Warrior Trading Blog

4th day of the $100k Challenge +5,436.22

4th day

4th day of the $100k Challenge +5,436.22

What’s up everybody? All right, so we’re going to do a mid-day market recap here for today. This is the fourth day of the November 100K Challenge, and although I did not trade today, the team is up as of right now, $2,632.00, which puts our four day total at $42,7 … hold on, let me just scroll to the bottom … $42,079.37. So, I’ll turn this around so … hey guys, sorry. Let me turn on … actually, no. This is fine. My audio … this set cuts out a lot. I’ve got to plug it in.

Anyways, just going over the trades here. Yeah, so I didn’t trade today, and Mike didn’t trade today. Mike was here, he just didn’t see anything that looked good. Jeff may have traded today, but hasn’t updated his positions yet. Sam Arsh, and Josh also may have traded today, but haven’t updated positions yet. We’ll wait for those updates to come in and probably by the end of the day, or by tomorrow, we’ll have a better look at today’s actual total gains.

In any case, $41-42,000.00 over the course of just a few short days is not bad at all. I really am so impressed with you guys. I wanted to come on and do this recap because even though I didn’t trade today, I knew DCIX was going to be the stock to watch. I thought because I was going to be out this morning that there was a good chance it would go to $100.00, or do something really crazy, which it didn’t really end up doing that, but it definitely would have given us an opportunity.

Let’s back this up … oh, let’s look at DCIX. Let’s back up DCIX, and I’ll break down the plays that I would have been looking at getting in. I know it’s easy in hindsight to say this, but just based on the pre-market pattern … we’ve got the pre-market pattern right here. This is the five minute chart. For me, when I look at this pattern, this is really pretty obvious. Right around 8:25 we’re moving up. Moving up. It hits a peak of 1577 at 8:30, and then it pulls back a little bit. Pulling back. We come back up, we tap 1589 right there at 8:55. A little more consolidation. A little more consolidation, and now here we are at about 9:20 right before the bell. 9:25.

So, what would I typically do? I would typically mark the pre-market high, which in this case is 1703. I will usually have an order ready to go at that price, 1703. Sometimes I’ll jump in a little lower. I’ll jump in at like 1650 or 1680, depending on the open. Now, let’s look at the one minute chart here and see what the actual open looked like. Let me pull this back. So, we know we’ve got 17 as a possible entry. The very first candle, not surprisingly, we squeeze up from … we open around 16. In this case, I might have said we’ve got a little pre-market pivot right here around 6:35 or 6:40.

Probably the half dollar would have been the spot to get in, if you were being aggressive. If your entry was 1650, you want to first see it hit 17, pop up to 17 and boom. It went from 17 all the way up to a high of 2326. It was halted. It resumes lower and drops back down to 17, which shows you if you chase these, you can really get burned.

This was definitely a good example of the type of stock where we would do the typical gap and go trade, get in for either a break of pre-market high, number one. Or, number two, break up the pre-market pivot. Selling through that squeeze from 17 to 18, 19, 20, 21, 22, 23 … that’s six points. However, the way it halted in an open lower, to me is a little unusual. We don’t usually see that right out the gate. Of course, it surged right back up to 26, and then dropped back down to 19. Crazy volatility. I am sure the spreads were big, and I’m sure you would have had to mitigate that risk by using smaller size.

I wouldn’t have taken 5, 7,500, or 10,000 shares on this type of stock at $17.00. Realistically, when the place I make the most money on these types of stocks is when they’re below 10. Even HNMY … remember just a couple of weeks ago we had MNMY make this incredible move from $4.00 all the way up to $38.00 per share. Obviously, it was a fantastic move. The thing really took off, but for me, the easiest place to make money was at the beginning of the move before it broke over 10. Once it was over 10, in these days, the spreads were so big … it just didn’t trade in the same way.

Basically, we didn’t see the same kind of follow through at breakouts that we see when they’re a little bit lower priced. When stocks are over 10, and especially over $15.00, we start seeing false breakouts. Whole dollar breaks, half dollar breaks, bull flags, bear flags … they just don’t resolve in the same way. I just usually kind of start to move away from them as the price gets really high.

Last year we had DRYS, obviously which went from $2.00 to $120.00, and then all the way back down. On that one, I can certainly say that, “Oh, I would have done this,” or, “Oh, I would have done that,” I was out on the day that it went from 50 to 100. I had some meetings, and realistically, I don’t know how much I would have traded it, because the spreads were probably really big, and it would have been more difficult to manage risks. WINS, this one that went from $20.00 all the way up to $230.00 before it got halted and it’s still halted, this has been halted since June … so, for four months, five months … this one, I didn’t even trade once. I didn’t feel like it was safe to trade. So, I left it alone.

For me, today, I probably would have been able to capitalize on a trade on DCIX out of the gates. TOPS, this was a same sector as DCIX and not surprising that they’re kind of moving in tandem. TOPS, GLBS is another one in the same sector. A little bit of a pop out of the gates. EC is also in the same sector. You can see all of these popping up a little bit, but nothing super impressive compared to DCIX.

That was the one today that I definitely would have wanted to try to get a piece of, and I was watching yesterday thinking about it … I was thinking about it all weekend that it was going to be in play this morning. But, you know what? You can’t get it every day, so I’m not going to beat myself up. I’ll be back at it first thing tomorrow. The good news is the team has done pretty well today. Right now, looking at about $2,500.00 in profit with three people still waiting to get their tallies in. Today might be a day that we’re a little below the $5,000.00 a day average that we need to maintain, but since we made $7,700.00 on the first day of November, $18,000.00 on the second, and $13,000.00 on the third, we’re well ahead of our average right now.

We’ve got a nice cushion where we can afford to have some slow days. In fact, right now we’re 42% of the way to our $100,000.00 goal on day four. Not bad there. I’ll just mark on my calendar no trades of day four of 100K challenge. Tomorrow we’ll back at it. Hopefully tomorrow will be my 26th consecutive green day. Right now I’m on 25 consecutive green days, and I just want to keep that going through this entire month, and just have another fantastic month.

We’re off to a great start, and hopefully we can keep it up. I think we will be able to, especially seeing as how we’ve had such a strong start to the week with DCIX. All right, so that’s about it for me today. Yeah, Emmanuel, TOPS … just looking at that trade, entry would have been the same, a break of pre-market high entry at 119. So, 119 and then selling through that first spike. It ended up hitting a high of 184. Yep, that’s what I would have done on that one.

XXII, Matthew, this one is a very thickly-traded stock. If we look at the float on it, you’ll see it’s 84 million shares. It trades very slowly, it’s a slow mover. Maybe swing trade potential for a bounce off the 200, but I don’t see it as a day trade opportunity, really. TVTY, a big drop on that one. I’m not sure what the catalyst was, but a nice bear flag here at the $40.00 range, and then continuing lower. This one, it doesn’t even seem like it’s really wanting to bounce. Maybe it will be another bear flag on it for another sell-off in the afternoon, if it gets up to VYAP, and then fades off that level.

I’ll leave it alone. I’m not going to start my day with afternoon trading. Anyway, that’s it for me. I will see you all first thing tomorrow morning, and hopefully we’ve got some good setups on the GAP scanner in the morning. All right, I’ll see you guys in the 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.