Warrior Trading Blog

+$9,716 on $CTRV! | Ross’ Trade Recap

Ross_6.6

What’s up everyone? All right, so here we are. I’m wearing red second day in a row and it’s because I wanted to be really careful today. Yesterday I only made $110. I only took one trade and it was a very small winner. I felt that since the last few days this week we’ve kept seeing the leading gapper roll over that that’s been a little tricky for momentum. Today when I saw CTRV on the gap scanner up 140%, I knew there was going to be a lot of risk in trading it given what we’d seen on GNCA, CTRM, and RWLK. Well we ended up getting a couple of great opportunities on it, and I made $9,700 just on CTRV. Fantastic. Almost $10,000 of profit. Actually, I was up over $10,000 before my final exit. I gave back just a little bit of profit.

Then trade number two INSY, squeezing up, taking off, moving really fast. I jumped on the momentum going into a halt. We had two halts in a row. I ended up losing $2,000 on it. Unfortunately I’m going to finish today up $7,500 verus the $9,500 or so that I was up earlier, but hey green is good, really awesome trading. I can feel great about that. I’m going to try and finish off this week with one more green day tomorrow. If I can do it will be by ninth consecutive green day. As of right now I’m up just over $20,000 on the month of June, which means I’m 50% to my $40,000 goal and we still have a full three weeks left in the month, which is awesome. All right, so as usual any questions on the recap leave them below. I’ll come back and answer them later this afternoon. I’ll see you guys first thing tomorrow morning 9:15 for pre-market analysis.

All right everyone, we’re going to do our midday market recap here. This is where I’m going to finish the day up $7,585.28, making it my eight consecutive green day. You know we’re on a little bit of a hot streak here, which is terrific. I mean it’s obviously great to make $50,000 in eight days. Hopefully the momentum keeps up. Yesterday I only made $110. I took it really slow. Today probably could have been a $15,000 day, but I limited myself to 6,000 shares on all of my trades on CTRV. But with 6,000 shares max size I made $9,716 trading this gap and go setup right here, the break at the pre-market highs. High of day is $15.75, which is pretty impressive. I did well on this one. I could have done a little better if I’d let myself take bigger size.

Let’s, I’m going to move this over like this and let’s kind of break down this one. This morning CTRV was our leading gapper. We’ll pop the gap scan up right here. Gap scan timeframe historical date. We’ll do this at 9:25 am. At 9:25 am CTRV was gapping up 140%, showing a 17 million share float. That’s actually wrong. The float is less than a million shares because they recently did a reverse split. Remember, for those of you guys that aren’t familiar, if a stock does a 10 to 1 reverse split, and they have a 10 million share float before the split, after the reverse split their float will be only one million shares. To make it easy to understand, if the stock is trading at 10 cents and you are holding 10,000 shares of it at 10 cents, you’re holding $1,000. What is that, 10 cents times 10,000, yeah I guess it’s $1,000 worth of the stock. On the next day after the 10 to 1 reverse split you look and you’re like whoa the stock is trading at $1.00. This is awesome. I’m up $10,000. Then you realize wait a second, I’m only holding $1,000 shares. What they did is they bumped the price up, they drop your shares down, so you’ve got the same $1,000 in the stock. When you multiply that across the entire float, the float goes down by that ratio, so down by 10.

Now with a 70 to 1 reverse split, this float went down to about 5,000 shares, tiny float. It was gapping up this morning, 140% with news here, which is just sort of like perfectly timed. Now this stock on a daily chart doesn’t really have a history of being a former runner necessarily, but didn’t look bad. It had a few levels that were interesting. My bias on it was to the long side. However, the reason I kept my share size at 6,000 shares was because GNCA on Monday. Big gap up, sold off on the gap. CTRM on Tuesday, big gap up, sold off on the gap. RWLK yesterday, big gap up, sold off on the gap. I was like you know I just, CTRV looks really good, but being that it’s a little higher priced and being what we’ve seen on these last couple of gappers that were really big and higher priced, I better go easy with 6,000 shares because I could lose 50 cents or a dollar per share really quickly on this if I’m not careful.

This is how I traded it. Pre-market high was $12.31, but it broke and was up to $12.85 by the time the bell was ringing. I switched over to the one minute chart, trading this on the one minute because the five minute just moves too fast. Right out of the gates, the second the bell rings, this thing pops up to a high of $13.88. I was like let’s give this thing a second. I am worried that if I jump into this at $13.88 I am just buying it way too high and it could drop right back down to $12.00 in a second and I’ll be down almost $2 per share. I gave it a second. I was just like let’s just be careful on this. Then let’s look for the first candle to make a new high. That was right here. This was a red to green move.

First candle to make a new high right here. On this one we had, the high was $12.57. It broke. I was slow to get in. It actually popped from $12.57 all the way up to $13.50. There I took a small position at $13, I got a partial fill, let’s see here, at $13.56. I sold at $14.34 and then I added back at $14.40. So it squeezed up here to a high of $14.75. It then pulled back and I think I bought right here on this one minute pull back for a scalp higher. Maybe that was a couple minutes later. Let’s see. I added at $14.40, $14.50 right here trying to ride the momentum up to $14.75, sold it, sold it. I think I was down unrealized. Then I got back in here this new entry, which was my best trade, was right here. Right in this area here I made about $3,000. It wasn’t a big big winner, but it was decent.

Then I was watching this consolidation here on the one minute chart. Now during this period of time because of the way it dropped so aggressively here I sort of thought it maybe was done, but it held up. It held the VWAP and it held this 20 moving average, so that’s when I started to shift my bias that this thing was going to work. As soon as it started to squeeze up right here, I was like I can’t wait because when I waited here I got filled $1 higher than where I really wanted to get in. I anticipated it and started jumping in 70. This is literally in the same second I’m filling 15 cents away. To give you perspective of how fast this was moving. 9:44 and 53 seconds I get my first fill and my second fill. I add here. As it breaks $14 I tried to add again at $14.50 because I was like this thing looks like it’s really going to take off, and I didn’t get filled.

The reason I didn’t get filled was because I already had max size. What I was trying to do was add at $14.50 and do a quick scalp over that level, so add and then sell half. Add and then sell half. I added, didn’t get filled on the add order because I was already at 6,000 shares here, and instantly the order was just rejected. Then when I tried to sell half, I sold half, or a quarter of the existing position. Anyways, this is where I kind of screwed up. Then I held the rest going into this halt right here. We got a high of day of $15.75. As I went into this halt, instead of holding potentially 7,000 shares or something like that, because I wasn’t able to add, I was holding a smaller position.

This here with potentially 9,000 shares, I mean this could have been by itself a $10,000 to $15,000 winner plus the $3,000 I made back here. I could have done a lot better on this today, but at the same time $9,700 is good and $7,500 on the day is pretty good as well, so I’m not going to beat myself up too much. The most important thing is capital preservation when the market is a little choppy. The hotkey I’m using ZVZZT. This is NASDAQ test stock. If I press shift one I’m going to buy. Let’s go down, so dropping down at the bottom. Shift one to buy, shift one, shift one, shift one. Those are my orders popping up right there. Oops, I’ve got 12,000 shares. What it’s saying here is nope you can’t take your bigger size, you’re maxed out. All right, so now I’ll press control Z, I’ll sell half, sell half, sell half. This is a test stock so this profit doesn’t change here. You can just trade it as much as you want.

Basically if I was looking at this, I might say ooh I’m looking for the break at the half dollar, shift one, shift one. It broke the half dollar, it’s at 65, I’m going to put an order on the ask to sell half. $10.01 here, one cent below the ask to be aggressive. No fill. Cancel the order. Control Q. Control X, sell half on the bid. Sell the rest at the bid. Yeah, so anyways that’s kind of, that’s the hotkeys. Shift one, control Z, control X allowing me to get in and out quickly.

Yeah I could have been more aggressive here, but whatever. Still a good trade. Then INSY just super disappointing. I took two trades on it and lost on both of them. It got halted right here at 58. Resumed from the halt. I got in at 55. It then drops down to 43. I stop out for a $300 loss. It pops back up, squeezes it. Again, I get back in at 77. I increase my max share size to 12,000 shares because this is a lower priced stock and at that point I was already up almost $10,000 on the day. I take a full 12,000 shares. It hits a high of 90. I was looking for the break of two dollars. Then it rolls over and I stopped out as it came back down and lost $2,000. That was disappointing. It just did not hold up well at all. That’s the way it goes sometimes. That’s fine. Still going to finish the day up $7,500.

As much as I might feel like man I was up almost $10,000 and now I’m up only $7,500, I just try to put that on the back of my mind and not focus on it. It’s a green day. I’ve got $7,585 more than I had two hours ago. Another really good day of trading. A great gap and go setup on CTRV. Maybe I was too aggressive on INSY, but I could have also seen it working. It was probably worth the risk. I’ll be back at it first thing tomorrow morning. Remember 1:00 pm Eastern today, free workshop. I would love for you guys who haven’t already registered to register and be there. CTRV is going to be one of the examples that we talk about today because we’re going to be talking about the gap and go strategy. Buying stocks that are gapping up, riding momentum, gap up, go up. Gap and go. It worked really well on CTRV with $9,700 of profit. Hopefully we will see some more good opportunities like that in the weeks ahead.

All right, so that’s about it for me here today. I will see you guys all first thing tomorrow morning. Those of you guys in the workshop I’ll see you at 1:00 pm in just about two hours. All right, I’ll see you guys soon.

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