Warrior Trading Blog

A Clean Slate +$819! | Ross’ Trade Recap

clean slate

What’s up everyone? All right, so here we are. October 1st. It’s a new month, starting fresh, clean slate. Whatever you did in September, it’s behind you, right? We all started this morning in the same place.

 

Zero profit, zero loss on the month unless you’re carrying over trades, but for the most part, as day traders, we all start in the same place. Now our job is to build the profit cushion. Here I am finishing the day up just about, let’s see if that goes into focus, $819. Not bad. I’ll take it. Green is good. It’s a good start, a little bit of a cushion that I’m building and I’m just going to keep it going. We’re still in the $500,000 a day type of market for me, for my strategy.

I’m looking forward to the big green days again that I was having like in the spring and a couple times during the summer but right now I’m just treading water, making progress, growing the account, slow and steady. That’s the name of the game, right? Right now you have an opportunity to set your rules for the month of October. Even if you had a bad start. You lost money today, don’t worry. I’ve had a lot of months where I start with a big red day on the first day of the month.

You’re not the only one. All right. It’s still your opportunity to reset. Make your rules for the month of October. What are you going to do this month to try to get yourself back into gear, get yourself focused, get yourself profitable? All right, so enjoy the recap today. Any questions, any comments, leave them below and I’ll come back through and answer later this afternoon. All right, see you guys tomorrow. All right everyone. So we’re going to do our midday market recap. Go over the trades from this morning. First day of October, and I’ve got my calendar. It is all cleared out ready to start a new month, Monday, October 1st, up $819.57.

Today is the 177th trading day of the year so let’s see. I didn’t put these in my Excel doc just yet and I haven’t updated, I’ve got to go and log on and get my broker statements for the month of September to see where everything finished. This puts me still somewhere around, let’s see, $375,000 of profit on the year, which is pretty good. About $710,000 in the account that I start with $583 January 1st 2017. I’ve got 290,000 to go. In a hot market, $290,000 that’s like three months, four months. I had this big goal of crossing this finish line by the end of this year.

It would take me two years to take $583 and turn it into a million bucks. The bar is getting higher and higher and higher as I have these months that are sort of behind what I need to track. At this point I’ve accepted that it’s not going to happen by the end of December. If it does, it would be because I had a couple of absolutely crazy good days of trading. You never know. I mean, I’m not going to say never because really you just don’t know.

There’s times where in a week I’ve made a 100,000 bucks so it could happen. I don’t envision it happening, but you just never know. In any case, I’m sitting with $290,000 between me and the million dollar line in the sand, which is what I got my eyes set on and really focusing on. I think it’s probably going to happen for me at the end of January, February or maybe March the latest. It’ll probably be you know, maybe at the most six months from now. Again, it really depends on the market. If the market continues to be choppy then at the rate of my progress in October or in September it would take a long time, but based on how I did last fall, last fourth quarter and first quarter, if I do that again I’ll cross that line by the end of January.

We’ll see, can’t control it. You got to trade the market you’re in, not the market you want to be in, so today taking the profit $819. Not pushing my luck. Green is good. I’m happy with that. I’ll close these up here for a second. My two trades LEVB and NEON. All right. LEVB was right off our scanners. Today as usual, those of you who have just attended our workshop, I’m going to go here to historical date. Every single day. I run this scan in the morning, this is going to show me the stocks in the market that are moving up the most in the pre-market trading session. This is our top 10 right here. NEON is number one, you see I traded at 612 bucks.

All right. LEVB is number one, two, three, four, five, six, seven. I made $200 on that. All right, so leading gapper NEON, this one was a reverse split. They did a 10 to one reverse split. That means yesterday on Friday the stock was 35 cents right around there. If you were holding 10,000 shares on Friday at 35 cents, this morning when you logged in you’d see, hey, I’m only holding a 1000 shares, what the heck happened to my 9,000? Other 9,000, and then you realize, well wait a second, the price is at $3.50 so you still have the same amount of money in the stock.

It’s just the split but what often happens is that because when the split happens, LEVB is still going up. When a split happens, it effectively decreases the float by that same multiple so the float that was 38 million shares, you had to change in those 10,000 for a 1000, changing those 38 million, you got 3.8 million left. Now it’s a low float of stock overnight, right? Suddenly the demand or the supply is dropped down and if demand does come in, it can move very quickly and that’s what we often see is that just the very fact that traders are aware of this pattern in the market, it just creates this reverse split setup.

Reverse split squeeze, that’s kind of what we had on this one. I was not as aggressive on it as I could have been. Some of you guys jumped in it like right down here at $4. It goes, squeezes up, it gets halted at 3.70, it pops up, it dips down. I did not get in at $4. I waited and got in at 4.43 right here. I bought 6,000 shares at 4.43. Let’s see. Let me pull back this order. This was my trade right here, actually 4.45 and 4.47 because I got filled some of it coming out of the hall, which usually I would cancel the order, but on this one I left that order open because I really thought it had potential.

I was like, all right, holding this. In at 45, 47 as it squeezes up here to a high of 75, that’s where I booked my profits as it goes up. Didn’t hold that level but I jumped in before and after the second halt. A little scalp there, 600 bucks, about 10 cents on 6,000 shares. Then LEVB, this was the second one that I traded, whatever is down right here, six million share float gapping up pre-market, with some news. I’m watching this one. I take a scalp on it out of the gates in at 35 and 36, out at 39.

As soon as I got in, I realized I bought from a hidden seller. I pressed those 6,000 shares and boom, boom, I’m in and the stock doesn’t even move. There’s volume going through, but it’s not moving. That’s how I know there’s a hidden seller, so when I’m seeing the tape, when I’m seeing lots of orders going through but the price is not breaking this level, that’s when I know someone’s trying to unload a position. That made me nervous. It then does pop up to 40, 43 and I end up selling it at whatever it was.

It hits a high of 60, so it went up without me there, but that’s what happens. Of course, pull back sideways and now making this breakout here in the late morning. That was my trade on LEVB, a little scalp on that. Looking at the scanner, SYN was our second leading gapper on the surface. You’d say looking at the scan, this looks really interesting. The price is good. 50% gap, 3 million share float, lots of volume pre-market.

The problem is that when you pull this out, you realize that that little bounce is in this context and that’s a problem, right? I made this big move on Friday, came all the way back down and is now just kind of bouncing off the lows. These usually fade back down and go lower. I don’t take trades on these types of bounces off the lows. That one was off the list. NBEV, I still with 2.6 million shares of volume pre-market at this point I felt like it was getting extended and getting crowded. It ends up doing a red to green move which was pretty nice. Where is it? Right here, red to green move. First candle to make a new high, 6.74 and it squeezes up to 7.30.

That was a nice move but I was sort of watching NEON and LEVB. This one drops down, pops up and I missed it. IGC, also on the scans right here. You see this one right here, float on both of these is a little higher. Lots of volume pre-market. This one also did a little red to green move. I just wasn’t feeling it. A little pop there ended up working and the rest of these, OGEN, this one had some really big sellers out pre-market, wasn’t super interested. ACST, the pre-market chart on this wasn’t that great. It popped up and sold off. This is just a downward consolidation, don’t like that. That was the top 10. I usually focus on the top 10 gappers and I just didn’t see anything that really worked for me. This move on Tesla is so nasty for people that were short. I mean, it crushes on people. That is such a ridiculous bounce. Tesla settling the SEC suit over the weekend, they announced it and then they settle it the next day. Ultimate slap in the face to anyone who is short the stock or holding puts. God forbid someone had written …

I mean, if someone had written the calls as a way of profiting, they’re expecting they would go to zero, gosh, this could be so bad. In any case, not in my wheelhouse to take that type of trade. No trades there on Tesla. Ended up not really a lot of clean action anyways, so whatever, it’s just kind of back to where it was, by the dip I guess. All right. That’s really about it for me. You know, a good green start to the month. Like I said this morning, every single one of us as of this morning, we were in the same place. We were all breakeven on the month. Time to start building the cushion. Gavin, he’s already left, he’s out working in the main area now.

He made I think about a 100 bucks today, just shy of his daily goal. He traded four stocks, green on all four so great job to him. He scalped some of the small caps NEON. I saw he took two trade on that. Took a trade on IGC. I don’t think he traded LEVB, but I’d have to go double check. He’s at the beginning parts of his learning curve, making some good progress, which is what I love.

Again, Monday meditation, take a few minutes when you’re done trading today to step back, take a breath, be grateful for what you have. Everyone starts somewhere and we all have our daily goals or weekly goals and everything else. We just got to stay focused. Keep trying to grind through these choppy markets, knowing that we will get to the other side of them and we’ll start seeing bigger and bigger moves. He’s trading with a couple hundred shares.

I saw him holding 15 shares of Tesla on Friday, so his trading with small size. Of course, Tesla moves so fast that if he gets two points it’s 30 bucks and that’s 30% of his daily goal and he can scale it. Right? It’s not a big deal. On the small caps I’ve seen him trade between 200 and 500 shares. You know, 500 shares, you get 30 cents, boom, that’s $150 bucks. That’s really good. You get 10 cents, it’s 50 bucks. He’s usually trading with like 200 to 400 shares I think. Slow and steady wins the race. All right. Anyways, that’s it for me. I will be back at it first thing tomorrow morning.

All of you guys hanging out on YouTube and Facebook, feel free to go through some of the other videos, the other recaps, any questions, any comments, put them down below and I’ll come back and answer them later this afternoon. All right, I’ll see you guys all first thing tomorrow morning. If you’re still watching, you must have really enjoyed that video so why not subscribe and get email alerts anytime I upload new content. Remember, when you subscribe, you become a member of the Warrior Trading family.