Warrior Trading Blog

+$61k in 6 days of the Nov $100k Challenge!

6 days

+$61k in 6 days of the Nov $100k Challenge!

All right, everybody. So today is day six of the November $100,000 challenge and it was another awesome day. This day started actually a little bit on the slow side. I had four small trades and then finally that fifth trade was a big winner. So here we are six days into this challenge. 10 traders all working to make $100,000 and we’re at $61,611.87. I’m really impressed. This is fantastic.

We’re averaging $10,000 a day which is double the pace that we needed to be at. We needed to be at $5,000 to hit 100K by the end of the month and we’re sitting at $10,000 a day average. Our best day was an $18,000 day. Today right now is actually one of our slowest days with only $6,000. I’m contributing $4,954.1 to the challenge.

Mike, no trades today from him. Despite the fact that he has no trades today, he is still leading the challenge with $14,000 in profits. I’m at 13,600. Let’s see. Jeff and John are trailing behind but both in really good shape. So four of us have already crossed over $10,000 on the month which is also really good. Some of us are a little slower on the month but that’s okay.

We’re all just working to stack up these profits and focus on consistency. Again, just really pumped to have a really good follow through. So again, today, it started a little bit slow. We’ll break down the trades from this morning. I was really thinking that I might be done for the day after my first four trades because I was only up like 250 bucks and I just wasn’t really feeling it. We weren’t seeing very good follow through.

So let’s look at those first couple of trades. All right. So first trade of the day was on IZEA. This one was on our watch list as a gap and go stock. Unfortunately, it’s just been really weak today. But we looked at the pre-market chart and we can see that it had this nice consolidation pre-market under 5.17. So as soon as the bell rang, you can see my entry here at 5.29 and 5.30, as soon as the bell rang, it started to pop up and I wanted to jump right in it.

So let me just scroll this back here on the one minute. So I jumped in. I really wanted to get in at, well, I guess the pre-market high was 30. So I was watching 30. But I jumped in as soon as the bell rang. It popped up to 38 and then it dropped all the way down to 4.95.

So I ended up, what I did is I sold half of my position at 32, another quarter at 30, more at 30 and then the rest at 31 and 21. So on that first trade, I think I made, it wasn’t a big winner, like 280 bucks or something like that. It wasn’t impressive. It drops down and then it surges back up and so I jumped back in it at 5.40, as you can see right here, 5.40. I started with a smaller size, 2,500 shares, tried to double, no fill.

Put my shares up on the ask at 5.60. High of the day was 5.60 and then boom, it dropped back down. I sold at 5.50 and then sold the rest at 5.20. So I ended up losing money on the second trade and finishing up only $141 on the name. It was just really choppy. You can see this one minute chart. It surges up. It drops back down. It surges back up. Not clean at all.

So my first two trades, not very good. One winner, one loser, green on the day but only by 140 bucks or yeah, I guess it’s 140 bucks. So nothing super impressive. The other stock on our gap scanner was ONCS. So ONCS, I saw that one on the scanners. Very crowded on volume but it started to pop up and so I said, “All right. I’ll jump in.” I jumped in at 2.38 and then I saw at 2.40 as it hit that level and you can see, I hit 2.40, one, two, three, three times right in here. There was a hidden seller. The reason I knew it was a hidden seller is because we saw lots of buying going through at 2.40.

Tons of buying, 2.40, 2.40, 2.40 but the price isn’t moving. So someone is unloading a big position right there at 2.40 and when I realized there was a hidden seller, I said, “Nope, I don’t want anything to do with this. I’m going to try to put my shares on the ask,” which I did. I sold 1,200 at 40 and then boom, I just bailed out the rest, break even. $29 profit.

So thanks to being able to see that hidden seller because I learned how to time and sales and read level two, I was able to actually get a very small winner instead of what would have been a lost. So I’m glad for that and that does show where experience really comes into play. So ONCS, whatever, $29 winner. So now I’m up after three trades 170 bucks.

So again, this is a very slow day. If I take one trade and I lose on it, I’m going to go into the red and I really want to be on 27th consecutive green day which I’m going to write down here. So today is day 27 plus $4,954.1. I mean, I take a little bit for granted. I think sometimes making nearly $5,000 in one day. I

mean, geez Louise, five years ago, six years ago, a day like this would have been like, “Yes, $5,000.” I would have been so excited. That would have been enough to pay all my bills for the entire month. Now, life is a little bit different and I’ve gotten used to having these big days but it’s still, I don’t want to lose sight of the fact that this is a really great day.

So 27th consecutive green day, 203rd day of the year. I’m actually right now at $184,000 on the account that started with $583 on January 1st and I’m at $217,000 total profit on the year, 217 grand. So we’ve still got seven weeks left of the year. 222,000 was my 2016 total so it looks like we’ll hopefully be able to break that year, maybe even this week or early next week.

So anyways, so when I had three trades in and I was up only 170 bucks, I was very mindful of the fact that this could turn quickly. Remember, a couple of weeks ago, when I was earlier in this hot streak, I had a day where I was up 300 bucks, ended up losing 500, instantly went to the red, 200, lost another 500 and now I was down 700 bucks and I was asking myself, “Why did you bother trading? Your first three trades were bad. The market wasn’t on your side. You should have just stepped back.”

So HTGM was the fourth trade. HTGM pulled the stock up. This was also on our gap scanner. We were also watching it pre-market. It started as you can see here it would pop up and this was the one where I finally say, “Okay, I need to take a little break.” I jumped in at as you can see at 2.79, only 2,500 shares.

I was already scaling back on my size because I was feeling a little bit unsure and I didn’t really know if this set up was going to work super well. I was getting in for the whole dollar break. I got in at 97, it pops up to 3.03. I couldn’t sell on the ask. I sold on the bid at 3.02, $3 and then I ended up selling the rest at 93 and it dropped all the way down to 2.56. So it popped up and then got rejected really hard. It was not clean.

At that point, I think someone in the room said, “Ross. You might want to just take a break for a second. Things are choppy.” I said, “Yeah, that’s a really good idea. I’m just going to stop for a few minutes.” So even though I made $69 on that one, it put me up $230 on the day. So I figured, okay, $230 on the day, well, that’s day 27 that’s green. I’d be happy with that. Today is not feeling very clean. It’s a little choppy out there.

Maybe I’ll just take the 200 bucks and be done. Then there’s John in the room. He says, “Hey, take a look at SPI. It’s squeezing up and it’s a recent reverse split.” Now, KBSF which just today squeezed up from $2 all the way up to 7.65, huge move, 200% plus. This is one that also, look at this chart, recent reverse split and within three days, it was hitting $18. That’s the recent reverse set up.

So you see the stock, the S on my chart. That says it was a recent reverse split. So they did a reverse split and then the next day, boom, the stock squeezes from two bucks to four bucks. It gaps up the next day. It goes from five to 12. The next day it ends up opening and squeezing all the way to 18 and then selling off. So that’s the recent reverse split set up.

Today I missed KBSF although I would personally not be against watching it over $7 for the five minute candle to make a new high. It’s really not a bad looking set up. The only problem is that the low of the pull back is 6.34 which is a nearly 70 cents stop. That’s too far away. So that might be a little bit of an issue. But keep KBSF on watch.

But in any case, SPI. Same set up. Recent reverse split. Starting to pop up. You can see the S on the chart. So when I saw that, it was already hitting 150. I saw it and I realized the chart, the potential and I said, “This is it. This is the one. I know this look. I know this set up. I wasn’t expecting to see it today but I’m going to jump in.” So boom, I’m sending the order, 7,500 shares at 1.59, 1.60, just as it was about to get halted, I put out another order at 1.72, right there. So 10,000 shares along with an average price of 1.63, 1.64. All right. So sent that order a couple of times and that’s because my hot key is already set to 2,500 shares. So I don’t have a hot key for a larger size than 2,500. I just use shift, one.

You know what, my commissions are $2.50 per trade. Pressing it four times is 10 bucks. I don’t care. I’m up $5,000. $10 in commissions doesn’t matter. So I press it four times, boom, boom, boom. I’m in. Now, it’s halted. Halted on circuit breaker because it squeezed up so fast. So on this one, I said, “Okay, well, that’s fine. If it opens below 72, I’ll add over 72.” It actually opened at 71, dipped down to 70 and then popped right up to 2.05.

I added another 2,500 shares at 1.95 which gave me 12,500 shares total. I put them up on the ask to sell ask, 50% of my position at 2.05. Another quarter of my position at 2.05 because I saw some resistance. I wasn’t sure if it was going to hold over that whole dollar so I’m scaling out three quarters. I sell another quarter and then I added back 5,000 shares at 47 and 53.

We squeezed up to a high of 2.61, a full point from my entry. I sold my adds at 46 and 34, actually giving back just a little bit of profit there. I was up a little over $5,000 and whatever. This had, I thought, the potential to squeeze in to another circuit breaker halt and then possibly open around 2.70, maybe go up and squeeze and top $3. Now, on the daily chart, this didn’t have any resistance until 4.41 right here.

So lots of room. We had gap fill. Gap fill is when a stock gaps down and then we’ve got room all the way up to the top of the gap. Now, this one started to get into the gap on this day right here so gap fill was actually from that level up to there. All right. Now from today forward, the gap fill is now going to be from the top of today’s candle up to there. So gap fill is from right now, 2.61 up to 4.41.

All right. So those are sort of the windows that I was looking at room up to the 4.41 level. That was back of my mind potential, we didn’t get all the way there but I’ll take the $4,700 of profit. Not bad at all. So that means tomorrow, my account will be up over 110,000, growing and growing and again I haven’t decided what I’m going to do with this capital that just kind of building up right now, at some point, draw down the account again. Maybe start next year with $30,000 or something like that. But I’m just going to keep growing this account.

The goal is to take $583 and turn it into $1 million. So obviously it’s not going to happen in one night. It’s not going to happen in one month. It’s not going to happen in one year. It’s going to take me some time to do that but that’s the goal. So I’m at $184,000, 18% of the way to the goal. Just keep working at it, keep grinding. I don’t mind if it takes me three years. It will be a really incredible accomplishment and something that will hopefully inspire all of you guys and remind you that it’s not about having a lot of money in the account. It’s about having a strategy. That’s what it comes down to. Do you have a strategy? Do you have a set of rules that you follow every single day that give you an edge in this market?

No, Phillip. I wouldn’t buy it to see if gaps up tomorrow. That would be partially because of the fact that the daily candle is pretty weak. If it was consolidating, near high of day. If this thing squeezes back up and it closes around 2.40, then I would say maybe. I’d have to look at the financials and make sure there’s not a risk of the company doing a secondary offering but then I would say maybe. But the way it is right now it doesn’t look set up for that.

KBSF, I don’t know. We’ll see where this thing opens tomorrow or see where it closes first. But right now, this is a bull flag. There’s no doubt about it. This is a bull flag. The law of the pull back is 6.34, the high is 6.85. So this is the type where I would typically say, all right, put my order let’s say 6.90 this afternoon, size down 1,200 shares.

That would be the place I’d be considering punching it at 6.85 and then adding at 6.90, maybe adding a little more at 7. I would probably sell half 7.15, 7.20. Target high of day on the rest, 7.65. That’s kind of the way I think about these and it’s worth keeping an eye on. But it is sort of the wrong time of day for that type of trade so not sure that I would actually do it. I think I’m going to be done for the day.

I’ve already written in my calendar. It’s bad luck for me to keep trading after I’ve written down my daily total. So that will do it for me today, $5,000. We’ll wait for the rest of the team on the November challenge to update their P&L but Josh, I knew he was going to be out for a couple of days so he might have been out today. I’m not sure.

He’s not in the room right now so he might be out today as well. Shauna, nice and consistent. Doing a pretty good job. Jason, doing a good job recovering from that lost, I think it was on Tesla. I remember that trade. That was a rough one. He’s rebuilding. We’ve all been there. We know what it’s like. You rebuild one brick at a time, one trade at a time. You don’t do it all at once.

[Arsh 00:17:45], couple of nice days. Couple of small losses here. I know he’s holding Snapchat puts right now. Take a peek at Snap. We’ll see how this … Well, it does look like they probably did pretty well. So he bought those at 25 cents. Not sure where they’re at now. But so that’s looking pretty good. Let’s see. Sam, back on the green side today which is good. John, I know he was in the red but got himself back to green.

Waiting on Roberto, waiting on Jeff and Mike no trades today. So again, Mike, trade the best, leave the rest. He’s actually only traded three out of our six days so far of this challenge and he’s leading the way so it goes to show that you don’t have to over trade to be on the leader board. John is definitely the type that trades every single day but he’s definitely stacking up some consistent profits.

Anyways, that’s it for me. I will see you all first thing tomorrow morning back in the chat room. Hopefully we’ve got another great day. It will make it my 28th consecutive green day. All right, everyone. I’ll see you first thing tomorrow morning. Remember, those of you watching the recap on YouTube or Facebook, feel free to add comments and I’ll come back to answer them later on. All right. Thanks everybody.