Warrior Trading Blog

+$5,181.92 In 1hr +$25k On The Week!

+$5,181.92 In 1hr +$25k On The Week!

All right, everybody. So we’re going to do our midday market recap, go over the trades from this morning. This is another awesome day here, finishing $5,181.92 which is not bad at all. I mean, really we’ve had a fantastic month. The only bad part of the month was one red day on Monday, last Monday but since then, we’ve bounced and the worst day in the last week and a half or whatever has been $2,435. The best day, $15,442. So let’s see. In the last six days, I think today is, let’s see, one, two, three, four, five, six, seven. Today is the seventh day of this little hot streak. So day seven. I’ll write that down.

Let’s see, in the last seven days, I have made it looks like $38,399.75. That’s not bad. It really is not bad at all. So I’ll write this on my calendar, $5,181.92 here this morning which is awesome. It’s funny, obviously so many traders are talking about cryptocurrencies and stuff like that. Obviously, you can make a lot of money in cryptocurrencies, there’s no question about it. There’s huge opportunities there. There’s a lot of volatility. But I think some traders or some people maybe lose sight of the fact that you can make that kind of money trading stocks and you’ve been able to do it for years and years.

This is nothing new, right, to be able to make $38,000 in a week and a half. It’s not like this is only something that’s because of cryptocurrency or whatever. I mean, this is just the way it it day trading. If you know how to trade, if you’ve got the strategy, you know the set up, you can be incredibly profitable. That’s true whether you’re trying to day trade stocks or you’re trying to day trade cryptocurrency. But I don’t want traders to lose sight of the fact that the small cap market is really hot right now and November was amazing, best week of the year so far was about $80,000 in profit. That was the second week of or third week of November. Ridiculous. I mean, just absolutely crazy.

Here we are about a month later in December and I’m up around $25,000 this week and we still have two days left. We’ve got Thursday and Friday still. This is going to be, seems like so far, a great week and hopefully it will continue to be a really strong week. So we can break down the stocks. I’ll show you what I traded today and really I wasn’t even nearly as aggressive as I could have been today. I could have been so much more aggressive. This could have been a $15,000 day. I was just a little bit unsure if … I just couldn’t totally tell if the stock that I made a lot on, CPAH, was going to be like a home run trade or if it was going to give me false breakouts. So I started a little bit more conservative on it.

When you start with smaller size, it’s hard to … You can scale up a little bit but usually it’s the first and second trades that are the best. So if on the first and second trades, you’re only taking 2,500 shares or 3,500 shares, you don’t really want to take eight or 10,000 on the third and fourth trade because then you end up risking giving back everything you made on the first couple of trades and just statistically not the place to be really aggressive. You kind of have to be willing to step up to the plate and be aggressive on that first trade and today I just really wasn’t.

So anyways, let’s look at how we traded today, what we’re looking at. You can see here my PnL but why don’t we start with looking at the gap scanner from this morning, all right? So let’s go back to how things looked this morning around 9:15 AM. So here’s my gap scanner. This is how I find the needle in the haystack. So we’re going to go right click on this guy and we’re going to do, let’s see, time frame … Oh no, let’s see, we want to do historical data and we’ll say 9:15 AM. All right, so this is exactly what I was looking at this morning at 9:15 AM. This was the gap scanner. So I look at this to help me find stocks that are worth trading.

All right, so the very first stock on the scan is DPW. You can see down here that I ended up trading DPW and made 100 bucks on it. So DPW was gapping up. This stock has news about opening a new cryptocurrency mining division or something like that so it’s kind of sympathy on cryptocurrency stuff. You can see it had this pre-market high of 5.83. It’s been moving up quite a bit in the last week or so from 50 cents all the way to six bucks, obviously a huge move. So on this one, I took just one small trade on it. It really wasn’t the most impressive. Let’s just go back here to my order entries. Let’s see.

So I got in at 5.60 and I sold at 5.64. So why did I do that? Well, we had a little bit pre-market resistance here around 5.50. So I saw on the level two at 5.50 a 230,000 share seller, 230,000 shares, that’s a big seller. So I saw him at 5.50 and traders started to buy him up. So he went from 230 to 220, 210, 200,000, 190,000, 180, 170, 160, 150, 140, 130, 110 and as I saw traders accumulating his sell, his shares, I press the buy button but I used my hotkey. I pressed shift one and I got filled at 5.60 because just in the second before I pressed shift one, the seller was gone and stocks popped up 10 cents.

I wanted to be in it at 5.50 and then sell it at 5.60, 5.64. So I sold it at 5.64 which was fine  but I only made a hundred bucks instead of whatever, 300. So because of that, I also only bought 2,500 shares because I immediately realized this was not what I wanted to get in at. So I didn’t press the order a second time. So a small win there in DPW. So that was our first gap on the scans. We had a couple others here, ORPN, FNSR, CAPR, but I didn’t really like these ones that much. Then the fourth or fifth went down it was CHFS. So this one was gapping with news. This is one that we’ve traded a few times in the past. So I knew that there was some potential on it. Pre-market high, 4.36.

Now, if we look back just two weeks ago, the stock went from $3.68 all the way up to $24.45 in one day which is crazy. So this is a huge move. So when I saw it gapping up today with news, I thought, “Yeah, I’m definitely going to want to jump in it.” Or hopefully it will give me the opportunity because I know it has potential. Nathan, to answer your question, how can I avoid bad fills on my hotkeys in the future? Really, I can’t, because when you press the hotkey, you’re buying it five cents above the current market price based on my hotkey. What I could have done is instead typed in in my level two window DPW and typed in 5.52 and then pressed the buy button. I just was a little slow in doing that and so I used my hotkey instead.

So the best thing to do would be maybe to not use the hotkeys and just always type in your orders. The market order wouldn’t have been better. The market order would have been the same in this case. We don’t want to use market orders because if I accidentally typed in 250,000 shares and I press buy and I have the buying power, the market order is going to fill all the way up to $6.50. I mean, it could just be a crazy bad fill and you could lose a hundred grand in a matter of minutes or seconds. So we don’t use market orders.

Now, the other way to avoid having what’s called a fat finger order which is when you accidentally type in 250,000 when you meant 25,000 or 2,500 is to have a max position size. So my account warns me right at 6,000 shares. I usually have it set at 11,000 but this week I brought it down to 6,000 because I made $15,000 on Monday and I knew that statistically, after a $15,000 green day, I’m more likely to be aggressive because I have a little more confidence and then have a big loss. So I decided to bring down the risk. Now, for tomorrow, I can probably just put this back at 11,000. I don’t think that would be an issue. But whatever. That would also prevent me from taking a massive order by accident.

All right, so anyways. Let’s see. I’ll just mute this here. We’ve got ELTK on the scanners. We’ll just take a quick peek at it. I’m not going to take a trade at this hour, ELTK. It’s squeezing up a little bit. Nice day, room up to nine bucks but kind of light on volume, 400, 600,000 shares. I don’t know, we’ll see. Maybe it will open up but I’ll leave it alone. So anyways, so CHFS was the other one I was watching and the market opens. It starts to pop up a little bit and so I jumped in this one with 5,000 shares at 4.19 and 4.25. Look, even though this is the same time stamp, 9:30 and 15 seconds, that’s six cents apart. That’s how fast the market can move right out of the gates. Crazy. So I got in this at 22 average, or whatever it was, 23 and it pops up to the half dollar. It hits a high of only 4.45. I sold it at 39, 42 and the rest at 23 for a $747 winner, so not bad. So with that and then with DPW, I was up around $847.

Third trade was SPEX. This one was not on my watch list. It was on the scanners right here, $1.43 and $1.45. I jumped in at 1.45, 2,500 shares. Not as aggressive, partially because this is one that’s a little on the cheaper side, being below $2. I saw it popping up but I also saw the 200 moving average to $1.50. I thought that could be a problem. You can see it ended up a high of $1.55 but it just didn’t really do much. So I ended up only actually making $33 on that trade. All right.

Then we had LTEA, another one that actually wasn’t even on the scanners but someone in the chatroom said, “Hey, look at LTEA, it looks like a good one-minute pull back.” I pulled it up and I said, “Yeah, that does look like a good one-minute pullback.” The high is 2.84. So LTEA, 2.84. So I got in here, let’s see it, 2.80 and 2.81. We popped up 2.89, I sold partial and now as it popped, it was kind of interesting because it popped up to 2.90 and on this candle, it dropped down to 2.61. So I went from being up 500 bucks to down 1,000 and then it popped up here to 3.05 and I sold for profit. But I was quick to get out of it at 84, 93. Let’s see. I sold at 84. I added back at 93. I guess I ended up selling at 87 which was just ended up giving back some profit, selling more at 94 and then 3.04. This was just kind of a choppy stock. It really wasn’t that clean.

Look at it. I mean, in this candle, we went from 3.05 all the way back down to 2.64. So just not super clean. So anyways, a couple small trades on that, $358. So with these four trades, I’m up 1,200 bucks on the day. That’s when I saw CPAH. Now, CPAH we actually saw earlier at 2.72 and $3 but when we saw it, when it first popped up, I wasn’t sure really what I thought because it hit three and then it dropped down to 2.54 and I thought, “Well, this is a pretty big pullback. I think I’m just going to leave it alone.” But it ends up consolidating under $3 as you can see. John said, “Hey guys, check out CPAH. It’s hanging under three. It looks good for a one-minute breakout.”

I pulled it up. I looked at the chart and immediately I was like, “Yeah, that actually does look good right now. So I typed in the level two, CPAH, I see $3 on the ask. I didn’t even have time to press my order. I pressed shift one. I pressed shift one and I filled 800 shares at 3.27. It was already up to 3.27. It was already up 27 cents. I pressed at the order again to buy and now it’s at, a second later, at 3.48. At this point, I’m just like, “Okay, I know I’m getting in this on the high side. But clearly, the stock is really strong. So now I had 2,303 shares at an average price of I think it was 3.40. So I’m in this at 3.40 and it squeezes up to a high of what was it four or 3.86 and it’s halted on a circuit breaker halt. So that one is now halted and I’m holding it, all right.

So while that halted, LBIX hits the scanners. I looked at that and I thought, “Okay, it’s worth a stab.” So I jumped in LBIX at $1.88. That ended up being my sort of one loss of the day. Maybe that one didn’t hit the scanner. No, I guess someone might have called that in the room and I looked at. Oh no, there it is. LBIX at 1.70. So I jumped in LBIX, $1.88, $1.90, and this one, look at this, it hit $1.92 and it came all the way back down. Not pretty at all. I lost $727 on it. I scaled out half at 83 for a small loss. Tried to sell the rest. I wasn’t able to. Then CPAH resumes and I’m like, “Okay, I got to focus on this one because this one is the one that’s really strong.”

So now I’m focused on CPAH. You can see here on this one, I’m selling some of it at 4.76 and 4.55 and then I added back at 4.43. I guess I sold, oh, I only got a partial fill of 100 shares and then I sold it at 26. So all of that’s happening. Meanwhile, I’m sort of trying at the same time to sell LBIX at 71 on the ask, I don’t get filled. Finally, I just sold the rest at 66. I was kind of trying to do a couple of things at ones and that’s always hard to do which is why I like to just take one trade at a time. I don’t like to trade multiple stocks at once. I like to just do one trade at a time. Trade it as best as I possibly can and then I can always come back and take a second trade or a third trade. But anyways, I got a little sloppy on LBIX but it was more important at the time that I focus on CPAH and $727 is a not a big deal really. It’s not a bad loss.

So anyways, after those trades put me up on the first trade on CPAH, I was up $2,346. So I was up like 2,800 bucks on the day and I thought, “Not bad, it’s a good day.” I ended up taking one more trade on CPAH. Now you can see this did a five-minute flag pattern, a pullback. So the first candle to make anew high was right here at 4.05. Now, you can see I got filled. I bought there but I got filled at 4.15, 4.17 and 4.20. I was using 1,250 shares reducing my risk, reducing my size. So three orders, I had 3,750 shares. It pops up to 53 and I sell half. 54, I sell another half. Then I held the rest.

In hindsight, in hindsight, I should have been much more aggressive on this. Maybe I should have start with 5,000 shares at 4.05 and doubled to 10,000 at 4.50 so I would have had 10,000 shares at 4.25. If I had done that, look, it squeezed all the way up to 6.29, sorry, 6.76. I could have made 20,000 bucks on that trade. I was just a little bit conservative partially because I was watching the spreads and the spreads were kind of big. So right here at 4.05, just before I was about to press the buy button at 4.05, it was crazy. It was 4.05 on the ask and then it dropped all the way down to 3.83 and then it goes to 4.10, 4.17 and that’s when I pressed the buy button. So it was like I knew I was risking 30 cents and I didn’t want to lose 30 cents with 5,000 shares, that’s 1,500 bucks. I didn’t want to lose 1,500 when I was only up 2,800 on the day so I decided to reduce my risk.

It pops up to 4.50 so we’ve got now 4.50 on the ask and then it drops down to 4.20. So I go from being up 35 cents, up 1,000 bucks to break even. I thought, “Geez, maybe I should just start to scale out.” So when it popped back up to 4.50, that’s when I decided to start selling and then it gets halted. So this one is just one of those ones where it wasn’t … If I go back to the 10-second chart, you might be able to see it a little bit better. It just didn’t make me feel really, really comfortable. So look here, so this is where it was at 4.02 and that’s the drop there, that red candle down to 3.80 and then it pops up here so this is where I got in at 4.10. It hits 4.42 and then it drops all the way down on the bid to 4.12, down to 4.12 right there and then it pops up to 4.68 and now it’s halted.

Then it resumes higher and obviously went all the way up to 6.79. So you can see. Yes, this stock moved a lot but it was a little bit choppy. I was a little nervous about it. You know what, I captured 4,670 bucks and I kept my risk conservative. So $5,000 is a green day. I’m at $211,000 in this account right now. I’ll be at $216,000 tomorrow. I mean, I am just building this account up. As of right now, I’m at $321,000 in total profits on the year and in my account that started with $583, I’m at $287,000. So obviously the goal here is now to turn it into 300K by the end of the year. So I’ve got $12,000 between me and hitting 300K and that will be really exciting. If I can turn $583 into 300K in one year, that’s a huge achievement. That puts me 30% of the way to a million dollars which is what I’m going to do with this account, from $583 to $1 million.

I’m not going to reset the account. I’m going to grow it all the way to a million bucks and I’m going to prove that making a million dollars in the market doesn’t take a background in finance. It doesn’t take having a trust fund from your parents. It doesn’t take anything more than the knowledge of a strategy. That’s all it takes is knowing the rules. So this challenge, it’s going to carry me through 2018 and probably through 2019. It will probably be in 2019 that I break over a million bucks. I am going to take money out of this account. I’ll probably start January 1st with like 25, $30,000. I don’t need 211,000. I’ll take that money out, whatever, that’s fine. But I’ll know that the dollar amount that I started with was 583 and this is that same account.

So I have already taken out 70 grand. I’d be at 281,000 if I hadn’t taken out the 70,000 earlier this year. So that’s fine. I will draw the account down. I don’t need a million dollars in buying power. But I will be growing this account through next year, that’s the game plan. So anyways, I would love to be able to hit 300K by the end of the month. That gives me basically two weeks right now. I’ve got about two weeks. So $6,000 a week for the next two weeks. You think I can do it? I think I can. We’ll see. I’m pretty confident I can do it. But you know what, I just got to be disciplined. I can’t get myself into a pinch where I have a big red day because we’ve all seen that happen to me more than once this year where I get aggressive and I lose five or 6,000.

If I lose $5,000 tomorrow, now I go from being 12,000 away to 17,000 away and that’s going to be harder. I need to just keep making steady progress. Just shaving a little bit off that 12,000, get it to 10, to eight, to seven, to six, to five, to four, to three and then cross over that level by the end of the year. So it takes discipline and that’s going to be the name of the game. So anyways, we’ll be back at it first thing tomorrow morning. Hopefully we have some great opportunities and we can finish up this week strong. The way trading has been the last few days, I’m just, I’m loving it. We’re having a great follow through.

So we’ll see what we can do here on Thursday and then on Friday. We’ll finish up the week hopefully feeling good and then go into the weekend and be back at it on Monday morning. All right. So anyways, that’s it for me today. This afternoon, 3 PM Eastern, I’ve got a class with our students, Warrior Pro [inaudible 00:24:09] session. So I’ll see you guys there at 3 PM Eastern. Everyone else, I’ll see you first thing tomorrow morning back here in the chatroom. All right. See you guys in the morning.