Warrior Trading Blog

$5K Green Day! | Ross’ Trade Recap


What’s up, everyone? All right. So, I’m finishing the morning here up just under $5,000, which is a solid green day. Almost twice as what I made yesterday. But what’s funny is that today I feel a little frustrated because I took some really solid stabs, but I didn’t get any home runs. Now, yesterday I traded with smaller size. So the profits I made were, well, they were bigger winners percentage wise. And today I stepped up to the plate and we just didn’t connect. I didn’t see the big momentum that I was hoping for. And so, even though I’ll walk away with almost $5,000, it doesn’t feel quite as satisfying having not had that big momentum trade. So hoping tomorrow we see something really strong on the gap scanners, can get a couple of trades and finish the week with my fourth consecutive green day.

All right, so we’re going finish up today here just before 10:30. I’m not going to keep trading. First hour, one hour of trading, $5,000. Not a bad morning. I’m a little disappointed that we didn’t get better follow through on either CETX or CODA. Both of these were on the watch list this morning, on the gap scanner, and neither of them really gave big moves like what we had yesterday on IMRN.

I’m going to right click here, go to timeframe, historical date, and then set the scanner for 9:25 AM. So this morning at [inaudible 00:01:26] 9:25, CETX was the leading gapper as you can see right here. And that’s because it had a reverse split. So this reverse split setup is one that we’re really familiar with. We’ve traded a lot. The thing that this did not have going for it was it didn’t have a true headline, a news headline, a breaking news catalyst and that’s a little disappointing.

Jag X is one that did the reverse split. On the day of the split, it didn’t do anything. And then the next day it comes out with the news catalyst and squeezes up to $17. So ultimately, CETX probably would’ve been a much better setup today if it had had news in addition to just announcing the reverse split. And I was cautious on it, sort of like I don’t know if it’s worth trading, but the bell rang and it started to squeeze up right here and you can see how it broke. It broke $3. That was right here. This sort of very light volume pre-market action or opening range action. So right around 9:44 it breaks $3, it pops up to 3.33, it pulls back and I added right at 3.50. So my cost basis was 3.50, which was a high entry. And I was like, oh, 3.50 is a little high.

It squeezes up to 3.96, it then surges up to 4.58, and I added again at 4.45. So I was being a little aggressive there. But at that point, I was like, hey, I’m up a dollar a share, I’m going to add going into the halt. And so I had 6,000 shares and then I added another 3,000 shares going into the halt. So now I had 9,000 shares and my cost basis was around 74.

It resumes from the halt and it dips down here. I had put out an order while the stock was halted to add because I thought it would resume high up here, maybe around five it would dip down, pick up my order, which I had at 4.50 and then surge up. So I got filled on this right at the resumption of 4.27, it drops. It then surges up and I add now just sort of to try to salvage the trade. Again thinking maybe if this does break over 4.27 it’ll break 4.50, but now I was a little nervous because it opened kind of low and did this dip. It double topped right here at 4.27, and when it doubled topped and couldn’t break 4.27, that was my indicator to just hit the bed.

And so, I sold. My cost basis at that time was 3.84. And so, on this dip here down to 3.50, I was red by 34 cents. And then it comes back up and I ended up getting out for a small profit. I would’ve done better if I hadn’t added, would have done better if I just sold the whole thing up here, obviously, in this case. But then yesterday, you’ve got IMRN, which if we go back to, and I’m only using the ten second chart because it’s a fast timeframe and the one minute is little hard to read on this. Sometimes these types of stocks just move so quickly. So on IMRN right here, on this one yesterday, I added at just under $4, so it was right here. It then squeezes up, it gets halted.

And right here, I had a chance to add on this dip, but I didn’t. And look at this thing. I mean, this basically just goes straight up to 6.80. It taps the 200 moving average. And that was my mental target on CETX, was that maybe we would tap this 200 moving average right here and that did not happen. So if it had happened, adding at 4.45 or whatever it was and having a 3.84 average, would have been great. 3.84, as soon as it hit 4.84, 5.84, 6.84, that would’ve been $2-$3 a share. It could have been a great winner, but today wasn’t the day. So you can say, well, lack of headline probably part of the issue. But of course, we see stocks without news end up making big moves sometimes. So that makes it a little hard to know if that’s really going to be the determining factor.

So that was CETX. CODA was the other one. Higher price on the gap scanner down here, up 20%. The bell rings, it pops up, sells off, does this really nice red to green move here. And I ended up really only scalping near the high of day. I just was sort of looking at it possibly going into a halt at 15, so I did a scalp right in here, and another one right in here. So, small scalps here, both times with 6,000 shares, so made about 20 cents on the first one, 20 cents on the second one. And that’s $2,200 or so. Again, didn’t get halted, didn’t give us that level of volatility that we would’ve needed. Of course, the halt is just a reflection of a high level of volatility, but we just didn’t really have that today to the extent that I was hoping for.

So I stepped up to the plate, traded pretty aggressively on CETX and fairly aggressively on CODA, and it didn’t really connect. Yesterday I wasn’t aggressive enough and I ended up leaving a lot of money on the table. So that’s kind of the luck of the draw. So, today’s going to be a day where I’m up almost five grand, but I feel a little kind of like, eh. Could have done so well yesterday if I was as aggressive as I was today yesterday. And then today nothing really worked out, nothing gave us huge moves. I did okay because I had decent share size, but that’s not really what I was hoping for. And of course, on CETX, had it halted going down right here instead of bounce back up to 4.15, I would have hit my max loss and that would’ve been it for the day.

So that could have gone the other way pretty easily, which is disappointing to add high and instead take the profit to add and then have it fail like that. So I don’t know, it’s kind of hard to know the rhyme or reason why some of them work so well and others don’t. But I guess for me, I just sort of have faith in the strategy and in the system and knowing that the majority of the time, more often than not, these will work out well. And ultimately, if I did just use the same share size across the board, I wouldn’t have to have these issues where I felt like I was too conservative one day and too aggressive the next day. But of course, the problem is, I always say, you’ve got to know when to put the pedal to the metal and to increase share size in order to really maximize on a hot streak.

And when you’re seeing stocks like this three days in a row, gaping up and failing, gaping up and failing, well, it makes sense to bring back your share size. So, we had a couple fails yesterday morning, BLIN, and there was another one that kind of failed. So then when IMRN popped up, I was a little conservative. Today I was more aggressive because IMRN yesterday was so strong, but this one failed. So, now tomorrow I’m going to be more conservative and then we’re going to see one go up like 400%. That feels like kind of what’s happening. But I don’t know, if I see something that really does seem to show strength tomorrow and I can get a good pullback entry on it and I can add on it, then maybe I’ll be able to find a happy medium there where I’m moderately aggressive and giving things the opportunity to work.

All things considered, I guess it’s okay to, in this case, have a $2,600 winner knowing that the potential, if it worked well, was $10,000. And I was willing to risk a little giving back a little profit up here in exchange for what could have been a move up towards five or $6. I just don’t like that that could have been a bigger red trade if it had failed hard here. But the halt was also a little funny because it popped up to 4.58 at 9:44 and then at 9:45 the clock halted at 4.27. And the reason it halted at 4.27 and not at high of day was because at 9:45 the circuit breaker halts become tighter. So this one was sort of breaking right at 9:44, 9:45. And so, at 9:44 the circuit breaker halt was every 20%.

Remember, the rules are that at the open the bands are twice as big to allow the volatility that always exists at the open. And so, trading right on that line, it kind of surged up just before 9:45, dipped down, and then kind of came back up and got halted, which is a scenario I’ve never seen before. It takes a very … it would have to be timed right at 9:44, 30, to 9:45, 30. Right in that one minute and this one just kind of fell in there and then got halted just below high of day, which was a little odd and that might’ve been kind of part of the problem. Plus no news. And the float, I think, was about 2 million shares adjusted for the reverse split, which is low, but not super, super low. So maybe not as much interest there from other traders out there.

But in any case, mark it down as the third green day in a row. Started the week with a $10,000 loss, bounced back on Tuesday, green Wednesday, green Thursday, try to finish the week green. And if I can get myself another $3,000 of profit, I’ll be up 20,000 on the week, which would be a really solid week, doubling my weekly goal of $10,000. So I think that’s probably my goal for tomorrow, to see if I can find something that looks good and make $3,000 and then go into the weekend feeling good.

All right, everyone. So, I’ll see you guys first thing tomorrow morning, 9:15. Remember, Fridays for the last month or so have been wildcard. Wildcard Fridays, surprise, momentum, some big, big winners. So I’m definitely going to be willing to be aggressive if we see something that looks good tomorrow. All right. See you guys in the morning.

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