Warrior Trading Blog

$5,514.64 and I’m LOVING the Momentum


$5,514.64 and I’m LOVING the Momentum

All right, guys. Time for our Midday Market Recap. Finishing the morning, $5,514.64. You know what? This has just been a really great month so far. Today’s my 28th consecutive green day. I’m going to mark it in the calendar, make it official, plus $5,514.64, day 28, so I am now at the halfway point. The goal is 56 consecutive green days because that’s my all-time record, and so we’re only halfway there. I mean, I’ve still got a long way’s to go because every day is hard.

Staying focused and not screwing up, it can be a challenge, but in the last 28 days, I’ve made $57,000, and my account, you can see right now, is, I mean, it’s basically doubled in 28 days. I’m at 111,000 this morning. Tomorrow, I’ll be 116,000. It’s doubled in 28 days, which is really solid. Right now, just letting those gains build up. It doesn’t really matter. I mean, yeah, I’ve got like $400,000 in buying power, but I don’t use it. It’s just sitting there for the time being as I build up this account.

This is, of course, the account that I started with $583 on January 1st. I’m at 116,000 in this account right now, but I took out $70,000 in April, at the end of April. If I had that money still in here, I’d be at like 187 or 186,000 or something like that, and the goal is to turn this into a million dollars, but I’m not sure that I’m just going leave all the cash in there because I don’t need to day trade with a $400,000 account. I’ll at some point have to think about what I’m going to do with this excess capital, but for the time being, just letting it roll into the account and just keep growing it and keep building it.

Let’s go over the trades from today. Twenty-eighth day consecutive green day. It’s also the seventh trading day of November, and I’m waiting for some of the other folks on the team to put down their daily PNL for the November Challenge. We’ll go over the November Challenge in a minute, but for right now, let’s go over the trades from this morning. First trade of the day was KONE. This morning, we had three stocks on the watch list. We had OTIC, which was on the gap scanner.

We had KONE, K-O-N-E. We had KBSF and we had YECO. Those were the four stocks that were on the gap scanner. So I was watching OTIC until just at the end of sort of the pre-market session it started to dip down and then as soon as the bell rang it sold off. So those of you guys watching on Facebook, I’ll put this up here, and remember, if you’re watching on Facebook, feel free to add comments and stuff like that. I’ll come back and answer those later in the afternoon or even tomorrow if you guys are still leaving comments.

So that was OTIC this morning. It broke down. No trade and no trigger. It didn’t give me an entry indicator. There’s my PNL by the way for this morning. So $5,014.64. All right, so OTIC didn’t give me a trigger. No trade on that one. The next one on the scanner was KBSF or on the watch list. Oops. KBSF. There we go. So KBSF, a huge move yesterday from $2 to $14, $15. Started to curl up pre-market. The bell rang and it dropped five points. No good. No opportunity. No trade for me.

Yesterday the volume on this was actually only eight million shares. It wasn’t an incredibly crowded stock. In contrast, we’ve got Craig today up 300% with nine million shares of volume. This one is getting kind of more and more crowded by the minute. I’ve got a little under $2,000 profit on this stock and you know, I’ll keep an eye on it. I’m not sure. My last entry was down here at 385. It popped up, then dropped down, stopped me out and then it ripped.

Can watch it for the next five minute pullback, and you could certainly scalp. You could do one minute scalps when you’re looking at this one minute chart there’s no reason you couldn’t have done a one minute scalp right here over five bucks, from five up to 5.30, but you just want to make sure you’re scaling down your risk because the last thing you want to do is let’s say I’m green on the day, so I started with 5,000 share positions right here on KONE. So maybe I could scale up to 10,000, 15,000. I could go to 20,000 shares because hey, I’ve got a big cushion on the day.

But then what happens when I take a 20,000 share position at 2:30 in the afternoon and all of a sudden boom, it drops a point? I could lose $20,000. So instead of increasing my risk into the day, I want to decrease my risk into the day. This is sort of a two different kind of mentalities when it comes to trading because some people will increase their risk through the day. What I kind of do is I start with sort of a medium level of risk to try to build my cushion, to get myself green on the day.

But I start with medium because if my first trade is red I want the chance that I can still potentially get out of the red and go back to green on the day. If I start with high risk and I immediately go into the red, it’s going to be really hard for me to get back to green. I start with medium risk and then if those couple trades go well and I start to have a cushion, then I’ll increase my risk during the first hour when I usually make the most money.

Then by 10:30 I start tapering back the risk so I don’t position myself to give back my morning profit. Because if I give back my morning profit at 11AM, it’s very rare that I would have the opportunity to make it back in the afternoon, so I’ve got to start tapering down. So my risk profile is kind of this sort of like bell curve where it’s up and then comes back down.

Anyways, first trade of the day was on KONE on the watch list, so let’s take a look at this one. Pre-market this popped up to a high of 7.40 and clearly showing from 5.50 to 7.40 that it was willing to make some big moves. So the market opens, it starts to surge up right here, as you can see. What I did on this was I basically bought a one minute opening range breakout. The high of the first one minute candle was 6.75 and the low was 5.89, so pretty big candle there.

I jumped in at 6.75. As soon as I saw the bid coming up, so as the spread tightened up, first it was like 6.60, 6.30 by 6.60, 30 cent spread, but the spread tightened up, tightened up, tightened up and then boom, I hit the order. Twenty-five hundred shares at 75. I tried to add another 2,500 shares, but I only got a partial fill of 847 shares because it popped up really quickly. Then I used my hot key just to add another 2,500 at 6.90 anticipating now the break of $7.

It pops up to a high of 7.49, 7.50, 7.85. I’m scaling out on the ask most of my position, taking some profit, and then when it dropped back down I sold the rest to break even. You can see here this move popped up to 7.85, down to six right here, 6.52, and then back up on this candle to 7.65. So very whippy. Right out of the gates a lot of volatility.

So that was the first one, but that gave me a $3,888 winner right out of the gates, right off the watch list. So that was trade number one. Trade number two was YECO. YECO was also on our scanners. This one I was a little bit nervous about because of the fact that the spreads were pretty big. You can see the bell rang and this just surged up from five to six and then up to 6.85. It got, I believe it got, did it get halted? Let me pull this back and check.

Yeah, it got halted and then when it resumed, it resumed higher so I scalped it out of the halt. Long $8. It pops up to, it actually ended up being a little heavy at eight so I flipped out and just unloaded half at eight because I got in at eight and all of a sudden the spread opened to 7.30 by $8, which is crazy, so I was like okay, I need to reduce my risk. I just got out half break even, then it pops up to 8.85. I try to sell 750 shares. It doesn’t get filled.

I sell 750 at 8.59 and sell the rest coming back down. So a winner on that, but not a very big winner. I was a little nervous about the spread. Then I got back in it at let’s see. You can see I even sold the rest of it at $7 for a one point loss even though I was only losing $1 or so because it was a small position, but then I got back in at $8 and I thought this was going to pop up to nine, which it did. It came up to 8.90.

I sold half at 8.90 and then it dropped from 8.90 on this one candle all the way down to $7. A two point drop, which is really pretty crazy. So I ended up giving back all my profit on that, selling the rest at $6. Total I lost $169 and it just wasn’t an easy one to trade. It was very hard to manage risk.

Then I had the trade on Craig. Craig I’ve traded a couple times. I’ll show you CALI first, C-A-L-I. This one I jumped into because it was right through here. It popped up on the five minute chart. It popped up on our scanners. It was China stock, so I jumped in this at 28. It popped up to a high of 3.45. Came back down, I stopped out for a $78 loss. Not a big deal.

Now Craig, this is the one that’s made a big move. You can see here from $1.50 it just hit a high of 6.15, so this is one that now we can watch for the next five minute pullback. My first trade on it was long at 2.30. Obviously a great entry. Long at 2.30, scaling out at 2.60, a little more at 2.60 and then it came back down. I had to sell the rest at 2.27 and then look, all the way down to $2. I ended up taking a loss on it. I was red on the name by 600 bucks because it popped up, and I’ll go back on the one minute chart, this was right here.

It squeezed all the way up to 2.69 and then came all the way down to 1.94 and so I had to stop out. Then it pops all the way back up to a high of 3.25. I ended up getting back in at 2.80, selling at 2.95, selling more at 3.05. At this point just scalping the breakouts. So any time we had a good little one minute pullback, that’s when I would go in. So in this case it was one minute pullback right here, scalping to move up to 3.25.

Then we had another one minute pullback around 3.44, another one around $4, another one on the five minute setup, which I got in at 3.85, it popped up. Got my entry of 3.85 up to a high of 4.19, which was right here. Then it dropped all the way back down to 3.66. So I had to stop out break even. I sold half into profits, stopped out the rest break even because it just didn’t hold that move.

This was kind of the challenge. This stock has had a really big range. Now with over 10 million shares of volume it’s certainly getting crowded. The problem with that amount of volume is that we start to see false breakouts. We’ll see that the entries for high of day breaks are no longer working because there are people that are going to put an order just above the high of day break to short or to sell a big position, so now even though the high of day break is usually a good setup, as soon as you break over that level you’ve got people that are selling.

That creates a wall. Then people who bought high immediately panic and sell and then it drops. That’s what creates that false breakout. Then likewise, you get the drop and then people are buying on those dips, so people who are shorting in the drop get faked out and then it squeezes back up. So you start seeing a lot of tug-of-war. I like to sort of stay away from stocks that are experiencing that tug-of-war.

The next entry that I would personally consider for Craig would probably have to be a five minute pullback, bull flag, kind of like what we had here. But by the time we get it we’ll probably have 12 or 15 million shares of volume and I’m really not sure it’s going to be clean. I’m already up $5,500 on the day so I’ve certainly hit my daily goal. I don’t need to push it, but at the same time look at MYO the other day.

MYO two days ago squeezes from $6 all the way up to $11, so this little pullback here, even though maybe I would have said at that point, “Look, I’ve already had a green day, why trade it?” It worked. This pullback right here worked well as well. It moved up to 11. So that was MYO yesterday or two days ago, and then yesterday we had KBSF. KBSF was the big mover yesterday. Yeah, even though I don’t usually like to trade in the afternoon and stuff like that, look at this. From four all the way up to six pullback, from six to eight pullback, from eight, 10, up to 12, 13, 14.

So this is one of those times where I kind of have to dig deep and keep myself focused to try to capitalize on these opportunities. While at the same time being disciplined enough to not give back profit by being really aggressive at lunch hour or one, two, three in the afternoon. That’s kind of the internal struggle of these hot periods in the market. Today, just for instance, my accuracy has gone down. I took a total today of seven trades and I’m green on four out of the seven.

I guess I’ll call that person back. So green on four out of the seven trades, so my accuracy isn’t really super, super strong today. We’re seeing that the market is a little bit choppy and I definitely have to be careful. SGOC, someone mentioned is halted. Look at that. That just squeezed up from 1.40 up to 1.80, so all of a sudden someone’s like, “Hey, we’re having a strong market day. I’m going to jump into this and let’s see what it does.”

They jump in, boom, it pops up and now other traders are like, “Oh, that could be the next Craig. I want to jump in it.” That creates the self-fulfilling prophesy of these stocks just going parabolic. These are periods of time where there are going to be a lot of opportunities and we want to try to capitalize on them as much as we can while still managing risk.

Today for instance, I might not have a problem taking a couple more trades, but I certainly don’t want to give back too much of that profit because $5,000 is a pretty solid day. I mean, $5,000 a day would be a million dollars a year, so don’t want to turn your back at a $5,000 day, but my daily average right now for 2017 is let’s see, around $1,000 a day average. Having a big day where you make, the market’s strong and you’re able to make eight, 10, 12, 15,000, that just really kind of helps build up your average and give you a cushion for those days where you don’t make anything. You break even or you’re red.

Just because you hit your daily goal doesn’t necessarily mean you want to walk away when there’s a lot of opportunities. You usually want to try to keep trading a little bit, but reduce your risk so you don’t give back the easy gains from the morning. Yeah, with Craig, I don’t know. We’ll watch the five minute setup on it. I just don’t know if it will be clean. CACD is halted as well someone’s saying. This is one of those things that we notice during strong markets is that you have one stock leading the way and then three or four others start squeezing up as well.

So you’ve got CADC halted and SGOC. CADC has 100,000 shares of volume. SGOC has got 570,000 so a little bit more volume on that one. You know, on these I would say okay, high before the halt for SGOC is 1.84, so if it opens below that level, I would typically be adding at 1.84. There’s a good chance it will open higher. I might add at two bucks, but you know, you just have to be a little careful because we haven’t been seeing the cleanest follow through on some of these sort of sympathy moves.

Some of them like CALI have been popping up and then fading. Or even like YECO, which on a day where the market is strong for small caps has just gotten hammered back down. It’s kind of crazy. So definitely want to make sure you trade smart. Look at Craig. Look at how fast that just dropped from 5.50 down to 5.07. That’s a pretty sharp drop. This is actually one of the biggest candles of the day and it’s red. That’s kind of where this one’s at.

It’s a good reminder to take your profit and know when to walk away. All right? So sure, daily update on the November 100K Challenge. All right? So this is where we’re at right now. It looks like Sam got another trade up on the board, so I’m finishing the day up $5,514. Mike’s up $602 on I think it was KSS. Jeff hasn’t updated yet. Roberto, 387. Nice consistency from Roberto. John [Altan 00:20:13], I know he was green today I think about 1,000 bucks, so he’s also on a nice little hot streak.

Sam, 2,200. Harsh, we’ll wait on him to update. Jason, small loss, but that’s okay. That’s good risk management. Shauna, nice day there, 890 bucks, and Josh, back on the leaderboard here after a couple days off, $68. So right now the team is up $9,000 on the day, $72,000 on the month. We’re 72% of the way to 100K and this is only day seven so great job to the team. It’s just nice to see across the board some pretty good consistency.

I’m now at this point where I’m really trying to avoid having a big red day. I think if anyone’s going to have a big red day it’s probably going to be me because of the level of risk that I take on some of my trades. Yesterday I was down 2,600, or the day before, but I got myself back into the green by 700 bucks. That was a close call. I’m really hoping I can stay focused, but you know, there’s a lot of days ahead of us so I’ll just take it one day at a time and see what I can do.

Right now I’m back in the lead with 19,000, but we’ll see. I think Mike has got a good chance of catching up and John slow and steady. He’s in pretty good shape too, especially after he updates his gains today. Anyways, that’s where we’re at for the November $100,000 Challenge. Of course you guys can follow this. There’s a link, if you go to WarriorTrading.com and search in the search bar for 100K Challenge you can see this page and you can look at all the stats yourself.

All right? So again, let’s see, CADC resumed. Yeah, I see that. It’s a little on the high side with a big spread. It’s also a five cent tick stock, so more risk on that. SGOC, kind of dipping down, so not seeing really good follow through. Open, squeeze up to a high of 29 and then rolling over so got to be quick. Get in, get out. That I think has to be the sort of policy right now. Then Craig, we’ll watch this one for a five minute setup to see if it gives us a decent opportunity, but with that big red candle it’s going to take a few candles to curl because when they drop down like that, it’s not usually what we like to see.

I’m probably done for the day. Going to take my $5,000 and be happy with that and be back at it first thing tomorrow morning and we’ll finish up the week hopefully with another good day of momentum and then we can go into the weekend feeling good. All right everybody? So again, those of you watching on YouTube or Facebook Live, feel free to post comments and I’ll come back, comments, questions, whatever, I’ll come back and answer those for you later on.

All right, I’ll see you all first thing tomorrow 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.