Warrior Trading Blog

$55K in One Month!

one month

What’s up, everyone? All right. Here we are, end of April. It’s been an incredible month. Finishing the month up $55,000, and we’re going to break it down today. I’m going to talk a little bit about some of the lessons I learned this month, an amazing first two weeks, a little bit of a difficult second two weeks, but some good lessons learned, some good profits made, and setting really the rules for May as we get started tomorrow morning with the month of May. All right. Let’s break it all down in today’s Midday Market Recap.

 

All right, everyone. We’re going to do a short Midday Market Recap, finishing the month here of April up $55,148.80. All in all, it’s been an awesome month, second best month of the year. January was the best at 117,000. Last month was 42,000, which is good, and here we are, 55,000 for April. I’m excited about that. Love for you guys to tell me how you did this month. Hopefully, you were able to put away some profits.

We had some amazing trades at the beginning of the month. The beginning of the month was just incredible. It was massive follow-through, big green days, day after day after day. Second day of the month, I was … First day of the month, I made 11,000. Second day, I made 14,000. It was just a huge 25,000 start to the month in two days. That’s what you love to have happen.

It just puts you in the driver’s seat right away, and if you decide you want to be a little bit aggressive, you’ve got a cushion to do it, and I pushed it a little bit. I got myself all the way up to up 75,000 on the month, and then gave back a little bit of profit trying to roll those winners into $100,000 month, but, all in all, 55,000 is fantastic, and I’m really excited about that.

Right now, as we end April, we have to start thinking about what are we going to do in the month of May, and I think, for me, the month of May is going to be, at least initially, focusing on getting really good quality entries because when you get a good quality entry, regardless of your share size, you put yourself in a position of confidence.

Today, I started that effort with a couple of trades, ATOS. This one was a pre-market setup. It was a gap and go setup. I was watching it over the pre-market high of 4.10, and I got in during this consolidation. If I break this down into a 10-second chart, you’ll be able to see my entry. Here, we had some consolidation right in this area, a high of 25 and a pullback. I get in anticipating the break of 20 right here, the first one-minute candle to make a new high, over breaking over high a day. I put my order on this one at … Let’s see.

My order, I put at 4.25, and it got filled at the top of the order, exactly at 4.25. That was kind of a bummer because it wasn’t a good fill, so in at 4.25, and I sold it at 4.30, 4.34, and 4.26, so only made 240 bucks on it, didn’t take big size, just took a little small trade, small winner, but the setup was decent there, anticipating the opening range breakout and getting in there for a move higher.

The problem, and I knew this was going to be a problem on this one, is that the daily chart just wasn’t really strong, and what we ended up doing is tapping the 20 moving average almost to the penny. Do you see how we hit that level there? That’s always tough when you run into those resistance points because they just really slow down the momentum. That was the ATOS.

In MYND, I jumped in this one for a five-minute flag breakout. As you can see here, it was consolidating. I get in for the first candle to make a new high right there, popped up to a high of 50, but as you can see, it was a false breakout. It didn’t hold those levels, and I just stopped out of this coming back down, so $760 loss on it, but the entry was okay, and the setup was decent. It’s just we did not follow through.

All in all, happy with today. It’s not, obviously, a big green day, not finishing the month with a big green day. That’s whatever, but it’s been a great month, and you got to keep things in perspective.

One of the things I talked about earlier today, and I’ll say it again for those of you guys on Facebook and YouTube watching the recaps, again, if you’re on Facebook, you’re on YouTube, love for you guys to subscribe to our channel. Give us a thumbs up. Throw in comments. I’ll come back through and answer them later this afternoon. I go through and answer each one of them personally. Love for you guys to give me some questions to answer in my afternoon so I can make good use of my time sitting on the couch, but one of the things I said this morning is that it’s so funny with trading when things start to get slow.

Obviously, momentum really slowed down on the second half of April. We had incredible momentum the first two months, or first two weeks, two and a half weeks. I made $75,000, and then, in the last week and a half, I’ve lost about, whatever, 20,000, 25,000, and that’s fine. It’s three steps forward, one step back. I’m okay with that. I don’t mind that, but it’s just interesting how quickly the tide changed.

I was thinking this weekend about driving race cars in Las Vegas, which you guys know I sometimes do, and how if I’m trying to set my best lap time, I’m pushing it and pushing it and pushing it, trying to get the best lap time because I want to get around that track faster than Jeff, and he’s in a faster car, so I really got my work cut out for me. I’m just pushing as hard as I can, but then just imagine it starts to drizzle, it starts to sprinkle a little bit. The track gets wet, and I’m saying, “No, forget …” I’m still pushing 100%. I’m going as hard as I can, and guess what’s going to happen? I’m going to start to lose control. I’m going to start to slide around, and I’m not going to be able to set my best track time, my best lap time when the track is wet. It’s just not going to happen. It starts sprinkling, and I got to slow down. It starts pouring rain, and I got to slow down.

Well, with trading, why am I not able to see the rain on the windshield? Why am I not able to adapt, or why do I choose to keep pushing it? Why do I choose to be so aggressive in spite of conditions not being really that great? That’s something that I just don’t know. I think that something that I need to work on is being more patient and being more cognizant of the market that I’m in because I have this tendency to be really aggressive and, like I said, just really get my best lap time regardless of the weather.

I’m in such a tunnel vision of trying to get my best time, trying to have my best month, that instead of adapting to the market, I’m just so focused on that goal that it gets me into trouble, because, realistically, the last two weeks, I could have maybe even made money if I had slowed down. It’s one of those things. Having the best time around the track isn’t the person who is gunning it down every one of the straightaways. It’s the person who’s in control, who’s able to get out of those corners the fastest, who’s able to hold the fastest line.

One of the things they say about race car driving is that there is a fastest line around the track. It’s how you come into the corners, how you go out of them, how you handle the turns. There’s a fastest line that will get you around that track, and you want to be on that line as close as you can. Sometimes, you have to go a little slower to stay on the line. If you go to fast, you’re going to swing out off the line, you’re going to get a little out of control, and you’re not going to have your best time, so it feels counterintuitive sometimes to slow down, but sometimes that’s exactly what you need to do to have the best time, and this month, if I had slowed down a little bit in the second week and in the third week or the third and the fourth week, I probably would have done a lot better because I would have not had those big, big losses that were the result of me being so aggressive on really kind of in choppy markets.

The action that we saw today on MYND, this is the rain on the track. The waters on the track when you see this type of action. It’s choppy. These are false breakouts. Look at CRK. I didn’t trade this one, but this is the rain on the track. This is the false breakout. It pops up and drops back down. It doesn’t hold up.

I think the challenge, this is maybe the hardest part, is that when you’re driving on a track that’s got water on it, I think we can all just understand that analogy, you can see the track is still wet, and you know it’s got to dry, and it’s going to take a couple hours, whatever, to dry, or whatever it is, but with trading, what’s tough is that you can see choppy markets, choppy markets, and then next thing you know, you see a stock like CHEK go from 8.50 to 11.50, and you’re like, “What the heck? This makes no sense.” All of a sudden, this one takes off, or all of a sudden, GNPX does a red to green move, the way we were kind of talking about this morning, and it goes from 17.50 to 19.50. That’s, I think, what creates a little bit more of the impatience is that you never know when one’s all of a sudden going to take off.

I guess what I would say on this is that you’re never going to catch usually the first stock at the beginning of a hot streak because the first stock catches everyone off guard. It surprises short sellers to get squeezed out. It surprises long-base sellers because, all of a sudden, it’s like, “Whoa, I wasn’t expecting momentum, and here we go. The stock just went from $10 to $15,” or whatever it is. Then that can start the next round of momentum.

I thought that we might see a little more sympathy momentum from the move on GNPX last week from $8 to 18, and we really didn’t. This was just like one isolated move, and we didn’t see sympathy really carry over into other stocks, which was maybe a little surprising, but, in any case, I think you just have to have this attitude of I’m going to take, when the market is a little bit choppy, and I’m going to understand that the market is choppy based on the type of gappers we’re seeing, based on the reactions we’re seeing to the gap and go trades and based on the follow-through were seeing on stocks that hit the scanners. When a stock like MYND hits our high-day momentum scanner, typically, it takes off, and it goes from a $1.40 to 2.43 or whatever it was. It goes up to 3.50 or 2.50, 2.55, 2.60, and it continues higher.

When you’re seeing stocks hit the scanner nothing happens. Nobody’s buying them. You can tell the excitement is just sort of subdued. I wish there was a way of, and maybe I’ll, I don’t know, think of this, I’m giving you guys this kind of indicator, this hot, strong indicator where you could just see it right on your screen.

The market’s hot right now. This is a day to be aggressive because those days where we see stocks, like LEDS pop up, and then you see CHFS pop up and ever stock that hits the scanner pops up, gets hauled to, runs up 30, 40%, those are the days to be aggressive, but days where you’re seeing stocks pop up and fade, pop up and fade, like this, these are the days to slow down, so we need to come up with some type of red light, green light indicator, that gauges the strength of the market, so you can see the rain on the windshield, and you can see, look, all right, guys, this is not a day for me to be aggressive. The last four stocks that popped up just got slammed back down, or, hey, this is a day that we got to dig deep and stick it out a little longer because this is a day where we might take six trades and make $3,000 on every single one of them.

It’s just something that I just thought of right now in terms of of that indicator. It doesn’t exist, but, just, in general, having that presence of mind of what’s the market like right now and not getting so tunnel vision on I got to achieve this goal because I started to have this goal of making $100,000 this month, and it ended up costing me some of my gains because I was being so aggressive, and that’s tunnel vision. You got to trade with the market. The market will give you great months, and then it’s going to take it right back if you’re not careful.

Going into the month of May, my focus is to avoid that tunnel vision, to look for A quality setups, take really good entries, but, of course, be mindful every single day of what’s the condition of the small cap market. I trade small caps. For Mike, it’s large caps, but he has the ebbs and flows just the same. There are weeks that go by where you don’t see good follow-through in the large caps, and you just have to be a little bit more conservative. Anyways, that’s setting my intention for the month of May. Flipping the calendar, starting a new month here tomorrow, and, hopefully, we get it off to a good start, start to make some money, and build that cushion on the month.

We’ll be back here first thing tomorrow morning, 9:00 AM, 9:15 for pre-market analysis. We’ll see if we can find a couple of stocks to trade, and we’ll get May off to hopefully a decent start. All right. That’s the game plan. I know many of you guys are working on your game plans, also, and my job is to be your first base coach, encouraging you to trade smart and stay focused. I’ll see you all back here first thing tomorrow morning. All right. See you guys in the morning.

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