Learn to ride the Momentum to the $1k/day goal! +$1.3k in 60min

All right, guys. Let’s do our Mid Day Market Recap. We’ll go over the trades from today. Finishing the morning up $1,342, which is not bad. Yesterday was a really great day, up over $4,000. Today, $1,000. I’m happy with that, especially in the first hour. We’ll go over the trades that I took.

For those of you watching on screen share on YouTube, you can see my P&L here. Those of you on Facebook, you can see $448 on CCCR and $893 on MTBC. I took a total of … Let’s see. I took two trades on MTB … No, three … I took two trades on MTBC, one winner, one loser, and I took two trades on CCCR, which were two winners. Four trades today and three winners and one loser. Not bad. Accuracy this week is got to be in the 80s. It’s pretty solid. I’ve only had, I think, two losers this week. I’d love to keep that up for as long as I can.

One of the things that I said earlier today is that when I’m looking at trades, I kind of ask myself, “Would I be comfortable taking this with 10,000 shares?” If I’m not comfortable jumping in right away with 10,000 shares, then there’s a reason. If the reason is simply there’s not enough volume, then that’s a good enough reason to not take the trade. If the reason is like, well it’s a little extended, or well, there were two [inaudible 00:01:40] in a row. I don’t know if I trust it, then I could take smaller size. I could just take 2,000 shares, but reality is, the set up isn’t as good as I’d like it to be.

Today I was trading with between 5,000 and 12,000 shares. I felt comfortable with those share sizes and actually the smallest one was 3,000 shares, so between 3,000 and 12,000. Those trades for me were all focusing on quality set ups. Set ups that I really thought had home run potential. Now, I didn’t actually get any home run trades today. Despite that, I’m still walking away with $1,300. It means that even though none of them worked out as well as I might have liked in the back of my mind home run potential, they worked out well enough to give me my daily goal, which is terrific. If they’d worked out better, I might be up three or $4,000 again today, which would definitely put a real dent in the monthly goal.

Okay, let’s took at the trades that I took. Now, one of the things I also mentioned yesterday was the importance of buying pull back set ups. On MTBC this morning, this one was squeezing up. It was gapping higher. It squeezed up to a pre-market high of 202, and then it pulled back. It pulled back on this both flag pre-market and I said, “I like this over 192 as soon as the bell rings.” The bell rang and I jumped in, 192. I jumped in expecting an immediate break over $2.00. What ended up happening is that we actually popped up to 199, dropped down to 183, and then came back up to 194, and then did this sort of quick little red to green move up to 205, and then back to 178. It really wasn’t clean. Even though it was a decent flag, it just didn’t work out the way I thought it would. Despite that, I got in a 92, I held through the pull back, with a 10 cent stop, so I was about to bail out. Right around 80, or 82, 81, I was ready to get out. I had my hand over the hot key, prepared to bail out, and then it popped back up to 94. I was like, “That was a close one.” All right. Back up to 94. Then I said, “All right.”

Even when it was selling off, I’m thinking, okay well I’m going to wait for the first candle to make a new high to see if we get a red to green move, but at the same time, if it drops 50 cents, I can’t hold waiting for red to green move. I need to see resolution, and I can’t just hold red and red and red. Anyways. Pops up here to 194, pulls back and then goes up to 205. I sold at 202 and 203, 201, and 199. A little under 10 cents per share. That was totally fine. I was happy with that.

MTBC pulls back, goes under the VWAP, consolidates and then suddenly bursts through the VWAP, and pops back up through $2.00, back up to 205. It then pulls back, right here. We’re watching this pull back and I said, “Okay. I’ll take a one minute pull back on this trade.” We hit 205. We pulled back, down to 195 as we came back up over two, I got in with 5,000 shares at $2.00. We popped up to 202, dropped down to 197, and at that point I was like, I don’t think I like this anymore. I’m going to get out and break even, and I did. I lost $25. My on loser today was a $25 loss. Big deal right? Doesn’t matter. I lost $25 on that one and it ended up going up to a high of 213.

On the five minute chart I was watching for a possible bull flag, right around 10:20 as it hit the nine moving average, but it was too weak. It sold off and it’s continued to go down. Ended up doing well on it, but it really wasn’t a home run trade. It wasn’t a very easy one to trade in fact.

The next one CCCR, this one was not on my watch list. It just started popping up and as it popped up here, to 295, someone mentioned it and I was like, well, the thing is the volume is really light. It only has like 45,000 shares of volume. I need to wait for a pull back. I watched it go up to 305, to 310, and then to 323. I was like, yes it’s a run, but I still need to wait for a pull back. I need to be able to manage my risk on this. It pulls back right here at 947, down to 320, 314, and as it came back up and it broke over 320, I got in and I had a target of 340, 350 with a 10 cent stop. I’m in at 320. Stop is 310. Target 340, ideally.

It popps up to 330, hesitates, drops back down to 320. Then it pops up to 337, again hesitates, starts to reverse. I bailed out. I wasn’t expecting after a 16% move, that the one minute pull back, would only give us eight cents to the upside. I really thought it was going to be more than that. A little disappointing there. I thought it had a lot more potential, especially because the daily chart, a break out on the daily. What was one of the problems with this stock? It didn’t have a catalyst.

Now that’s a problem, on the one hand, because when it pops up, short sellers are going to look at it and be like, I’m going to short this. This thing is up for no reason. It pulls back. If that pull back gets bought up and it squeezes through the highs, those early short sellers who are shorting the stock that had no catalyst, can get squeezed. Even though the stock has no reason to move, the simple fact that now these people need to cover, and by covering they’re buying, it creates more momentum to the upside. We do sometimes see incredible moves on stocks with no news, but you need to have that first pull back get bought up. In this case, it didn’t really work out super well.

Anyways. I took a little bit of a break, and then I came back and saw it was consolidating under 330, and that’s when I took my last trade of the day where I got in at 330 for the break over this flat top. We had tapped once, twice and three times at 330. I was like, okay. I’ll get in here 330, 3,000 shares. We pop up to 340, 341. We can’t hold that level. We drop back down. I only made three cents on it. Three cents per share but $448 total on the name on two trades.

That’s it. $1,300, daily goal, four trades, biggest loss $25. I think that’s pretty good risk management. I lost half a penny on that trade with 5,000 shares. Overall, today is a pretty good day. This week has been pretty good in terms of managing risk. Even though I’ve been a little aggressive on my share size, I’ve been managing my risk and keeping my stops tight, which is important. This is definitely a bounce back week. I’m up about $6,000 on the week right now. We still have two days left, Thursday and Friday. Having said that, Thursday and Friday are not usually my best days of the week, especially Fridays. Tomorrow, I’ll probably be conscientious to scale back a little bit, kind of ease back out of the market going into the weekend. Then when we come back on Monday, I’ll be ready to be aggressive again. Thursday and Friday, if I can add an extra $500 each day, and finish the week up $7,000, I’m fine with that. That’s fine.

What I don’t want to have happen is I get aggressive and I lose three or $4,000 or something like that. I just need to be mindful and I’m going to put it on a post it note, go easy. Go easy on Thursday and Friday. I’ll just slap this up on my monitor. I’ll be the first thing that I see tomorrow when I come and sit down. Go easy. You’re coming to the endo of a week. It’s been a great week so far. Let’s not do anything to jeopardize what has been a good couple of days.

We still have two and a half weeks left of the month. Thursday, Friday and then two full weeks. I’m hopeful that we’ll have some more good opportunities like what we had yesterday. If I can give me some three, four, $5,000 days. If not I can grind on $1,000 a day. $1,000 a day would be an extra $12,000 with 12 days left in the month. That’s not bad, it’s just slow and steady. Slow and steady but doing everything I can to avoid the loss. That’s the thing I keep reminding myself. The best traders are obsessed with reducing risk and minimizing their losses as much as possible. I feel good about the way we’ve been doing that this week. We want to continue it into Thursday and Friday.

All right. That’s about it for today. Kind of a short Mid Day Recap. Some pretty relaxed trading, nothing too stressful, low risk, low stress, $1,000. That’s pretty good. The weather is awesome, so good day to get out and maybe enjoy some sun here in the early afternoon. Let’s see. I think that’s about it. Over on YouTube, we’ve got episode seven from Behind the Trades from last Friday. That’s up and those of you that want to submit questions or stories for our Friday episode of behind the trades, you can do that at warriortrading.com/show. I also have an interview on YouTube that I just added yesterday with one of our students. He graduated from the Warrior Pro class last month and in the last month he’s made about $3,600 live trading. He traded in the Warrior Pro class in the simulator. Graduated from the simulator, went into real money, made $3,600 in his first month and he’s not using big size. He’s taking it real easy, 500 shares. Definitely check out that interview with him. It’s great to see students that are doing well and to get a little bit of insight into what’s working for him.

All right guys. Yeah I guess that’s about it for today. Another solid day in the market. I hope you guys all have an awesome afternoon. I’ll see you first thing tomorrow morning. All right thanks guys. See you soon.