Warrior Trading Blog

+$6.6k on OPGN in Less Than 1 Hour! | Ross’ Trade Recap

Ross_9.4

What’s up everyone. All right, well here we are finishing the 11th consecutive green day, definitely a hot streak here. Over the last 14 days, I’ve made over $65,000 trading one hour a day. Today, another $6,600 on one stock, OPGN. Now, the disappointing thing today is I had my first loss of the month. I had two winners and one loser. So far this month I’ve taken a total of four trades, and I had one winner yesterday, one trade, one winner.

Now, as I think about it, I’m trying to remember if I only took that one trade, but I think I only did. I think it was just one trade yesterday. That puts me at four trades on the month. Three winners, 75% accuracy and nearly $10,000 of profit. We are moving in the right direction, building that cushion for the month of September. So I’m in the driver’s seat for the rest of the month, and it’s just coasting from here. Continuing to strive for that $2,000 daily goal.

And when I have some days that I see an opportunity, I’m going to feel like I’ve got a little bit of a cushion. I can take the risk for that potential big winner. All right, so hope you guys are enjoying these recaps. As always, questions, comments, leave them below, and I’ll see you all first thing tomorrow morning, live streaming 9:15, the pre-market watch list.

All right everyone. So we’re going to break down the trades from today. I’m going to finish here my 11th consecutive green day, up $6,656 and 18 cents, which is awesome. That puts me up about $9,000 on the week here, which is terrific. Because this is only Wednesday, and the markets were closed on Monday. So it’s a two day … Two days in the week, I’m already up $9,000, close to 10 grand actually. And this puts me in great shape as I make my way towards the weekly goal.

Weekly goal is 10,000, monthly goal is 40 grand, and this is a good start. One of the other things that’s of course really nice is being able to start to build a cushion early in the month, because then it puts me into the driver’s seat for the rest of the month.

If I see an opportunity to be aggressive on something, I’ll feel like I can afford to take it. If it ends up being a winner, it’s just going to put me in better shape, and if I do have a few back to back losses, I’m going to have to slow down and adjust. But at least at this point, I’m in a position of strength. Whereas last month at this time, I was already in the red.

So the one stock that I traded today was, OPGN. Now this was straight off the watch list, but I wasn’t totally sure how I was going to trade it, because by the time the bell was ringing, the pre-market chart was a little bit messed up. So let’s look at this.

At 9:25 AM, so five minutes before the bell was ringing, this was gapping up 57%, 878,000 share float, 569,000 shares of pre-market volume, and aa price of just over $10, at 10.25 so this was the only thing about it that I was like, oh, that’s a little high.

The headline, I was also a little skeptical on, not this one. But this one, entering into a definitive agreement. And you can see that, let’s see … “Pursuant to the implementation agreement, the business of the seller and the business of the company will be combined by the purchaser’s acquisition of all the issued and outstanding capital stock.”

So any time you have these acquisitions and mergers and these types of catalysts, it can be a little bit confusing, what that really means. What is the actual dollar figure that’s tied to it? And that wasn’t totally clear, to me and probably to other traders and investors who have been actively trading this stock. And that’s why it hasn’t been trading, just pinned at one price. So, as we were getting ready for the bell to ring, unfortunately it was breaking below the [V-wap 00:04:25], it was selling off a little bit.

The other stock that I was watching this morning was tops, T-O-P-S, and I could have taken a trade on this one, on a red to green move on the five minute chart. But when this happened I was really still focusing on OPGN, and starting to kind of wind down a little bit, because I’d had a couple of really great trades. So I decided to not take that trade.

And actually today I have, let’s see, three trades, two winners and one loser. And we’ll break down each of those trades, and those are all on OPGN. All right, so OPGN, let’s go back here to the open. So this is the open, and as you can see, I’ll pull these off, the bell rings, and we start with two red [doji 00:03:04] candles back to back.

You’ve got a red doji right here, and another one right here. And then all of a sudden it rips up. Let’s look at the ten second chart to dive in a little bit deeper on how this pattern was really unfolding. So I’m going to go back to ten second chart, and here we go. All right, so the bell rings and it immediately starts surging up. And I said, “You know, I’m not feeling comfortable about jumping into this. I think a red to green move is going to be a safer setup.”

So a red to green move where it pulls back and then surges back up. I was like, I just think that’s going to be better. I’m a little nervous about jumping into it. So on this stock being above $10 I knew the risk was going to be higher. So in the first 10 seconds it surges up to 1092, and then drops here back down to 1030, and then goes down to 1004. Now, I had drawn this line at 990, which was sort of the pre-market support level.

And then I had a pre-market resistance level up here at 12, right here. Now we ended up moving that up to 1237 or so, which was the high of this candle. But at the time, this morning I was looking at resistance around 12 and support around 990. And so right here we’re coming down to 990, it looks like we’re going to break. And then it surges up right here.

Part of me was tempted to jump in this, because I thought maybe this is the red to green move, but I … And I was actually using the ten second chart, but because this candle was so red, I just didn’t feel like I could trust it yet. And I was still watching the one minute chart as well. And the one minute was not looking very good.

So I left that alone. It pulls back a little bit more. It then does this kind of bear flag right here. It drops down to 990, it hits a low of 92, and now it’s breaking this support level, and it’s bare flagging right above it, and then it drops down.

And so at this point I was kind of like, all right, well, I guess this is it, I guess this isn’t gonna work. Oh, hang on one second.

Hmm, that’s interesting. Let me just … No, it doesn’t look like that’s streaming. Hang on. I’m just gonna change one of my stream settings here.

Let’s see. Stop. Sorry guys, those of you who are watching.

Okay. All right,

I’m just going to copy paste this streaming key here.

Okay. And that’s what it was. Okay. Paste. And paste. Alright, so we’ll get that back up and running here. So in any case, I’m going to have to play with my settings there again, it looks like there might be some issue.

So in any case, OPGN dips down here, drops to 962. And I’m thinking, all right, well this is clearly weak. It’s not holding up very well. So I’m just gonna leave it alone. And then it surges up here, right here, to 1038. It then pulls back for a second, and boom. That’s where I jumped in, because all of a sudden it turned around here. And so this, to me, I felt like kind of trapped short sellers because it had this drop and then all of a sudden it rips back up.

So as it ripped back up, I watched it right here. And that’s where I jumped in for a break, over the V-wap, first one minute candle to make a new high on the one minute chart. So I’m in there, I actually tried to buy 9,000 shares.

So to answer your question about managing risk on that type of trade, the way I manage the risk on that trade essentially was, I focused on what I really believed wasn’t A-quality entry. I knew I wanted to focus on a red to green move. I felt that a red to green move would be lower risk than trying to do a breakout over high of day, for instance.

If I bought a high of day break getting in with my entry at a 1090 that would have been really extended. That would’ve been a really high place to be a buyer, and there’s a really good chance that, on that type of set up, it would have seen a potential false breakout. And I could’ve been in it at the high, and getting stopped out back down at 1030 or something like that. And that would be a 60 cent stop. That’s way too much risk with 9,000 shares. It’s a $4,500 plus loss.

 

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