Warrior Trading Blog

4th Green Day! +$557! | Ross’ Trade Recap

Ross_7.29

What’s up, everyone? All right, so here we are Monday morning, beginning of the new week, but coming to the end of the month of July. Only three days left, two days after today. So I’m up $557 today. It’s a green day, but not a lot of progress. I was red for a moment on three out of four stocks I traded, and then I went from red to green on one of them. So today I’m green on two stocks, red on two stocks, down $1,500 on my biggest loser, up $1,600 on my biggest winner. So you know, not just… I don’t know. Again, it feels like two steps forward, two steps back, but of course this is my fourth consecutive green day, and in these last four days I made $3,300, $1,100, $500 and $500, so $6,000 of profit. I mean, that’s not nothing. That is progress.

So let’s try and make two more green days, finish up the month strong and then going into August, just slow down, coast. It’s been a great year so far. This is a great time to be studying, going over your data, your metrics. Not a good time to be swinging for home runs. It’s August, it’s slow summer trading. So try to be disciplined, trade the best, leave the rest, and have a good August and then hey, things will pick up in the fall. All right, so see you guys first thing tomorrow morning, 9:15 for pre-market analysis. As Usual, any questions, comments, leave them below. I’ll see you guys in the morning.

All right everyone. So we’re going to do the midday market recap for today. Really not … I mean, just not a lot of action in the market. Another sort of tough day of trading. The last few days have been tricky. Let me grab my calendar. I guess Thursday I made $1,300. Friday was only $539. Today’s $557. So you know, green days are good. I’d certainly take the green day over a red day any day of the week, but you know, fourth consecutive green day. The fact is, I was down about $1,100 today, sort of at my low of day and I was able to bounce off those lows with a little bit of … A couple of green trades to finish up the morning. But I think at my best I was up about $700, $800 on the day and that my worst down $1,100 so finishing kind of in between, but at least on the green side of that line. Just disappointing not to see better follow through.

So let’s look at the gap scan for this morning. Leading gapper was actually NBY but it’s cheap stock at $1.33. It’s not typically one that I would really go for. So left that one alone completely. You could have done a gap and go trade on it for a break of the pre market high of $1.44. It did squeeze up to $1.60 so that’s 16 cents of profit per share. But yeah, I don’t know. I left it alone.

Next one down. CTXR, this one, another lower price stock, ATHE, a third lower price stock. So these ones are tough because being cheaper, I generally don’t find that I do really well on them. I don’t get big wins on the low price stocks, so I pretty much leave them alone. I can pull up my trade review stats again just to show you that this isn’t anecdotal. I mean, I really have metrics that show that I’m not as profitable on these cheap stocks.

So let’s go reports view. So going into the metrics, detailed price and volume. So this is under $2.00. I’m not saying I don’t make money, but I don’t make nearly as much. In terms of this being $1.5 million of profit, only about less than 10% of that is from stocks under $2.00. Less than 10%. So the bulk is on stocks between $2.00 and $5.00 and a good amount between $5.00 and $10.00, and a little bit between $10.00 and $20.00. And that’s typically the stocks that are going parabolic that were just at $5.00 and are going totally crazy on the day.

And then above that level, well, I start to go into the red, pretty quickly. I don’t know, above $20.00, I lose money. And of course I don’t trade above that level nearly as often, but in any case, that’s in the last couple of years. If I just go January year to date, it’s even worse.

I mean only $7,500 of profit on $2.00 stocks. I mean in a way I could almost start a little mental competition of can I actually try to make $50,000 on cheap stocks this year and trade a little differently? But it’s just not where I’m doing well. So anyways, steer clear of that. By knowing my metrics, I’m able to essentially try to minimize trading in areas where I don’t do well and maximize trading on areas where I do really well. I mean, that’s the idea of looking over your data. So the gap scanner basically had nothing this morning. SINT was the only one that I was watching closely. That was actually our second leading gapper right here. Now interestingly, it shows a 21 million share float. However, look at the chart. 30 to one reverse split here today. Yeah, it took effect today.

So you take 21 million, you divide it by 30. 21 divided by 30 brings us down to a 700,000 share float. Very low float. About … Well by the time the bell rang, it’s got 4.39 million shares of volume now, but even before the bell rang, it had almost a million shares. So I drew this pattern pre market that we were already stair stepping down, all right? So the critical levels when you’re dealing with this sort of stair stepping pattern is the previous high and the previous low. A break of the previous low confirms that we’re stepping down short below $3.51. And you would have done … Well, you would’ve done pretty well, dropped to below $3.00. Or breaks above $4.38, long above $4.38. Now as you can see, it ended up not actually breaking $4.38. Trading in between the step in between these sort of brackets, is going to be a little risky.

Now I did take a trade on this using a ten second chart. I did a red to green move. I was a long at a $3.85 for the first sign of green buying volume. This ten second chart is taking a second to load, but that ended up being a pretty decent entry right down here. I mean I literally bought right there, $3.84. That was where I jumped in. That was my first entrance. So you know, I was in that break. We popped up to a high of $3.97, we pulled back. We then squeezed up to $4.11, pulled back. And then right here, I added the break of $4.11, I got long at $4 … Let’s see, I’m looking at my orders. $4.11 and $4.14 is where I added there and I added for the break over high a day.

We’ve got a high all the way up to $4.39. Which wasn’t bad, but it didn’t hold and came right back down. And next thing you know, it was breaking the lows. So I was hoping that we would break the top of this step here. Hope is a dangerous word in trading. But I was optimistic that it would break that level. It didn’t. And so when it came back down, I had to sell my position. So I only made $670 on it. Not a home run obviously. And trading within the range there is always going to be a little riskier. So that was my first trade right out of the gates, but that got me green on the day. I was actually up on the day closer to maybe $700, $800, but then when I sold the rest of my positions, it came back down. I gave up a little profit. So that was trade number one.

Trade number two, I believe was OBLN. No actually, sorry, trade number two was CTRM. This one is my biggest loss of the day, $1,500, and it was actually on the gap scan gapping up on news. Let’s see, where is it? Right here. Gapping up about 6% with some news that they had just, I don’t know, bought this new vessel. It’s a shipping company. I knew this stock had a history of dropping, but also a history of making big moves. So I was like, this is a stock that’s has volatility potential in it and I’m going to take a stab. I actually pulled up the ticker, and I pressed the buy button on this as it broke over the half dollar of $4.50. As it broke and I saw this volume coming in, I pressed the buy button.

I didn’t even look at how many shares of volume were on the day and the spreads at the time were tight, so I wasn’t really worried about it. It immediately pops up here to $4.99. 10,000 share seller, maybe 15,000 share seller at $5.00. It wasn’t able to break that level and it came right back down to $4.30. I held through that drop, it pops up, and I sold right here on this drop at $4.30 and at $4.03. My worst exit was $4.03 … Actually, sorry, $4.08 was my lowest exit, which is not great. So disappointing there. I jumped into it a little aggressively, a little too fast. If it had broken over $5.00, I was willing to add and the halt level was at $5.27 and I was thinking this might be one that could … Well it’s moved quickly in the past, but today wasn’t its day and I was a little too aggressive on it.

So there I went from up $670 on the day to down about $800 on the day, now red. So that’s not great. Next trade was on OBLN. OBLN I jumped into as it was breaking this five minute pattern right here, I tried to scalp the break over seven and I made some money on it. I Made I think about $700, or maybe 800 I got myself back to basically break even on the day with this trade right here, as it was squeezing up. But it didn’t end up holding that level and I got back in right up here, and then I gave back the profit on this red candle and went right into the red. And so then I was down about $800 on the day again. I took a trade on HEPA, which hit the high day momentum scanner. This one obviously failed high a day volume on a red candle.

So at that point I was red on a OBLN, I was red on HEPA and I was red on CTRM, red on three out of four names. I was down $1,100 and I kind of was like, all right, well remember Ross, obviously this isn’t how you want to start the week. At the same time I’m loving $100 in the red. It’s just one day. It’s not gonna make or break your month, or certainly your career. So just let it be what it is. Don’t worry about it, just call it a day. So I was pretty much ready to call it a day, and I saw OBLN consolidating on this chart here through this area and I was kind of watching it, and as volume came in right here in this area, I decided to get back in it.

This was a little aggressive. I was looking at an ABCD pattern. I saw that there was a headline posted or there was something about I think, a patent or USPT, US Patent Trademark office or something like that. I’d have to scroll up, but in any case, I saw that there was something there and so I was like, alright, you know what? I’ll, I’ll give it another stab. Having said that, I already knew that this wasn’t an A quality daily chart until I broke over Friday’s high. We were trading in yesterday’s range. We didn’t have a fresh catalyst on the day until that news was was posted and it did not actually get posted on the East Signal yet, so it was a little risky. But I did take a scalp on this and we got a move down here. I added 675 and this ended up squeezing up to a high of a 709, and I sold as it broke over seven, so did a little scalp here from my entry at 75, did a scalp for the break of seven, and ended up making almost $1,700 on that trade.

And like that, I went from down 1100 on the day to up 557 on the day, and at that point I said, all right, I’m done. So I threw in the towel, I was able to get myself from red back to green, which is good. And right now we’ve got two more days left in the month. Today doesn’t do much to add to my monthly P&L. This has been a somewhat difficult month, last month. Well we had a great start to June. The first two weeks were amazing. I made about $55,000, or something like that. 40,000 or $45,000. It was a great start. Really solid. I made 29,000 in the first week alone. On the second week, I had a $21,000 green day, best green day of the year so far, but then the second two weeks were pretty bad and it gave back some of that profit.

Continuing, July has just been difficult and we’re experiencing the summer slowness, which is tough. So kind of having to grind on smaller numbers and be content with $500 to $1,000 days until things start to open up a little bit more. So that’s kind of where I’m at right now. Just try to finish up the month with a couple more green days here tomorrow and Wednesday, if I can. And then August, setting the bar pretty low. I have low expectations for the month of August. If I could make some money that, that’d be terrific. If I can be green, obviously that’s a good goal, but I’m not gonna expect to hit home runs in August. It’s a slow time of year, so it’s a great time of year to be trading the Sim. It’s a great time of year to be studying. And if you can be green in August, well you’ve got a great shot at being green all year round, since August is one of the trickiest months of the year.

So anyways, just try to, through the month of August, if you get some profit each day, you take that money, you walk away, don’t overstay your welcome. Go get out there, enjoy the weather, you know, do your thing and just know that things will pick up again in the fall. So that’s the game plan. Today, most of my positions were between a 5,000 shares because I got a couple of partial fills, a HEPA and CTRM were both partial fills. I think SINT was also a partial fill, so between 5,000 shares and then 9,000 was my biggest position, which was a little aggressive for today, but worked out.

Anyways, that’s it for me. I’ll be back at it first thing tomorrow morning, 9.15 pre-market analysis. Hopefully we see some good follow through and can have another green morning. All right. See you guys first thing tomorrow. If you’re still watching, you must’ve 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.