Warrior Trading Blog

A Tough Week But Turned From RED To GREEN | Roberto’s Weekly Recap


All right guys, here is Roberto Barbaro on Trading Educator for trading. Today we’re going to talk about the trade from this week. So first of all, let me say I just switched over to this web browser version of Excel, I’m still working on it. I’m not positive about this accuracy, all this stats actually being accurate, but will we go ahead and work on it next week before closing the month. I’m confident I’m going to be able to fix those. But in any case, those here, those six here have been the trades from this week for me. Let me start by saying that it’s been quite a tough week. And now it’s a couple of weeks in a row that the market is choppy and really not going anywhere. And the same kind of situation is then reflecting to the stocks. The stocks, my watch list and a couple of cases I missed some good moves, but overall, it’s quite tough to see the kind of continuation that we typically see when the market is hot. So, those cases just go ahead and realize that market is cyclical, right.

So, it’s going to go through times where the moves are going to go exactly as you predict. But other times that they will a little bit fall short of your expectations. The most important there, is really not to change and to over adapt to the market current conditions. Because otherwise you will be risking just to chase the situation rather than work on what potentially the market can give you. So, long story short, I had six weeks, sorry six trades in total, and there were three losses and three winners. So the good thing about this week is that I started really underwater with three consecutive losers. And then I was able to turn it around with three winners. So overall, actually, I’m closing it green, because as you can see, my average winners were higher than my average losers. So once again, it was all about risk management, all about cutting those losses quickly, if they didn’t work and trying hard to let those winners run. Even though I had no trades this week, where I ended up hitting all of my targets, but still the balance in the end has been positive.

So, instead of talking about each one of the trades individually, I’m just picking the ones that I think are more important and more… They have more messages for you trying to learn something about the market. So, typically, during the mentor sessions, for the warrior pro members, I will go ahead and talk about more of those, more in details. But my idea here is really to focus on what… Or what can be more straightforward to you, for you to understand and also learn something from. So first of all, I traded KSS. KSS, was quite disappointing, I took two trades on it, and both of them were losers. So, let’s analyze what was the situation and dig into the chart of a bet on that name.

So the trading day was actually the 21st of May, which was last Thursday if I’m not mistaken, yes, it was last Tuesday, sorry, of course. So I didn’t, take any trades on Monday. It was just nothing that really correspond to my go to strategy. And so I was ready to eventually take a trade on Tuesday. So on Tuesday, we have this KSS. So let me just enable here for you to see the extended session. High and lows there, just to visualize those for you guys in here into the view. So, here we have the three minutes chart on the left, then on top right we have the 10 minutes chart and on the bottom right, we have the daily chart.

So the day we’re talking about was this one with a E, that means there were earnings on that day and the stock was gaping down. Now it was gaping down quite considerably. And as you can see here actually during pre-market, I liked the pattern, so it was drifting down, right. So we had the first huge move down here during pre market at 7am as soon as the earnings were announced. And then we had this situation where we kept on doing lower highs overall and drifting down. So I liked that and… So I was eventually ready to take a trade. And what happened was that here, we had the first three minutes after the market opened, typically the ones that I wait, eventually take a trade off of, because I don’t want to initiate any trades in first three minutes so I just wait. And then once the second candle open, they start selling off, and here is where I got short. I got short at first here, at 50 here 5440s or 45. let’s actually go ahead and see.

I actually entered a little bit higher at 5459 because this one candle, I like the fact that this one candle actually opened and start pushing and then it got a slump back down here, gets slammed back down. And as soon as I noticed this weakness I jumped in for a three minutes open range break down. It ended up happening but the problem was that we couldn’t just hold below, so as soon as we made a new low this finger reversed it and started pushing higher and they stopped me out. Once again, when I look at the overall thing here the overall setup, I just had no specific corrective action. To me this one trade is just one that didn’t work out. Yeah of course, we had a little bit of extension when it comes to the daily chart. We were 20% or more extended from the closest exponential moving average, which is quite a lot. But I mean, this one setup was still respecting my go to strategy was not too much over extended it was extended a little bit about 1.5% from the 13 EMA the view up was aligned.

So, I mean even watching it right now after the fact, I would say I’ll probably take the same setup again tomorrow if that will present itself once again. So that’s the thing, it ends up not working out but it was worth a shot. So the same name later on in the day, I was still watching it to see if it was going to reject here at this level 13 EMA the view up or not. And what ended up happening here was this nice rejection, but just because it really did recoup all the losses, all the move for today. I went ahead and waited a little longer before eventually jumping each short. So I waited for some more confirmation. Once I know this, this thing went back up and got rejected once again. That’s when I jumped in. I jumped in here, this one third candle 5495 with an overall, a stop here, just a tight stop here about 20 cents. So 20 cents stop here, and I had my target, my first target 54667.

So this thing ended up starting to go and then just stopping right above my first target. Whenever that happens I’m even a little bit more conservative that, that will typically be. And so instead of stopping out where I typically do, I went ahead and as soon as it is rejected and came back up I stopped out even before I actually got my original stop up. So my original stop would have been around 5530s but I ended up stopping out at 5508 just because as I said, I really felt like the previous situation here where it started working and then it reverses on me and boom. I just end up getting stopped out and even with hindsight, I believe I was able to take the right decision. Because the thing was for me after I noticed, as I said, this breakdown in the second candle, the next candle made a higher highs here. And at that point, I readjusted my stop here 5508, as I said, because it was just above the high of this one candle.

And so, I waited for a little longer it held again and then it pushed it back higher and at that point I was ready to stop out. I try to maintain the kind of breakout or bailout mentality here. So this move has to happen in a timely manner. Right. I can’t just wait one hour for it to resolve, especially after such a big move like this. So I know this thing is going to be volatile. So it’s either going to be volatile on my direction or on the opposite. So, the thing about having a tight stop really protects yourself and your capital from a situation where volatility happens against you. So that’s the real situation there and so I ended up getting stopped out again. So it wasn’t fun in the beginning of the week, for sure. I had to realize a couple of losses, and the situation didn’t really change on Wednesday, where I had a third loss and I felt a little bit frustrated.

Even though the overall total p&l wise of the loss was not anything, too much disturbing. Of course, I wasn’t happy about the accuracy, I just had to realize the market really was not there. But then it came Thursday. Sorry, it came, yeah, the next, my next trade actually happened the same day. So on Wednesday had a first trade, it was red, but then my second trade was three minutes a 10 minutes trend initiation to alongside target. It ended up giving some other money back. So I’m not, as I said, I’m not going analyze this one in detail. I will be doing this next warrior pre market session next Wednesday. So if you’re interested, just join that session. But it was a trend continuation on target to the long side and it ended up giving me back some of the losses from previous trades right there. Then it came Thursday and Friday, Thursday I had a trade on WB. It was a nice short continuation right here.

So as you can see, here, we had also earnings. I believe it was earnings, I’m not sure because here I can’t see the E that typically is printed out on earnings. But in any case, there was some news, that’s for sure. And the trade really had everything that I look for, to eventually be interested to take a trade. So was another gap down, as you can see, and then it had a drifting pattern and it had a low here in pre market, at about 4420s here. So here in the three minutes, let’s zoom in. And let me just talk about this a little bit more in detail. So as soon as the market opens, once again, I avoid the first three minutes after the market open. The action is just not there. It’s just too much whip so, but I can have an idea on where the move is going to be eventually and then so I can base my potential trade off of the highs and lows, especially when that lines up with the lows or pre market. Right.

So I did not take the trade here. Eventually, some aggressive trader could have started a position short here but I passed on it. Because we didn’t really to me prove the fact that we could take out the previous pre market lows and so I waited for it to confirm below and then here it was my trade. So on this months three minutes candle after we had a close below the previous pre market lows, we made a low of 4401 and that’s exactly my entry. But this next candle opens and it makes 50 cents of push above and then it started selling. And that’s exactly where I initiate my position. I jumped in short this thing started selling and right away, it went to my first and second target. So by the time like five minutes later, I was already out two third of my position and then this thing just didn’t continue. I was waiting for it to continue going lower and eventually hit my third and fourth target but instead it just didn’t go anywhere. So that’s what I basically say about this market.

It is choppy guys, you have to be quick or quicker than usual into taking your profits when you have them and then move on and wait for next move. Because this thing for the last third of my position ended up stopping me out. After a little bit above breakeven. I was waiting for it to eventually reject this level. This was 13 EMA, was new up but it didn’t. And then I stopped out the rest. I guess it was 4405 or so. So in any case was my best trade for the week. The only one what I ended up getting to my second target. All right so also it was the one trade that helped at turning my week from red to green, which is always good to be honest.

And then we came to today, today we had FL footlocker in our watch, and long story short, this one was really disappointing. It was disappointing because of this. So we had a pretty nice pre market flag over here. But the problem was that it just ended up starting to work a little bit earlier than I wanted. And whenever that happens, usually and typically you got to be double as confident about your trade and also double as patient into eventually waiting for it to give you a good opportunity to jump in because look at this guy. This just end up forming a nice, a very nice triangle here in pre market. Look at this here. It was just lovely. Very nice triangle pattern here. So was I looking short, but the problem was, as I said, that it just started working too soon. It started working here in pre market, and typically stay away from taking trades pre market, because volatility, and sorry liquidity is just too low and so the risk of volatility going against you is too high.

So I know I can’t really handle my risk management as well as I will typically be able to and so I was obviously disappointed. By the time we are in the open as you can see here, down on my custom technical indicator we’re red here, red means we were way too much overextended. We’re way too much over extended this thing started, continue to sell, worked out a little bit to the short side once again, but I couldn’t enter here in this situation it was just too much of an extension. And so I waited for it eventually at three minutes opening. Sorry at three minutes rejection here of this area but it ended upholding here, so no trades there. And then I switched my attention to 10 minutes, 10 minutes here gave me a more of a overall bigger picture of the price against the view up. And so I noticed here in the 10 minutes this thing couldn’t close above the view up. And it started rejecting, it started rejecting hard and that’s where I entered here on this rejection 4430 was my entry.

Look at this big rejection, these two candles, we had a one point rejection right away. So when I noticed that with volume, I jumped in short, and then I tried to be patient. I entered there, I had my first cover at 4385 ended up hitting 10 minutes later but then this thing just started behaving erratically. Look at this here, I did not have any stop in place, so it was a fat finger order here, so that’s why I don’t use hard stops because on things like this, you may get stopped out up here if you use a stock market order. And so the slippage can really kill your trade. So instead I just waited this thing just flashed up for a second then it got rejected. I decided to stay in because I like the rejection but on the next candle we had the same situation once again and when that happened I just ended up killing the trade, stopped out the rest at breakeven 4430.

I was a little bit disappointed but even in hindsight, it was the right decision to take, because this thing really it’s all over the price, it’s just trading in a way that you can’t manage your position in a safe way. And so whenever that happens, either you really play the big stop kind of game. But also that case, if you have the big stop game, then also if you want your trade to make sense, you also have to have your target down that as distance. So the way I play my trades, I try to keep a reasonable stop distance, so that my target feels really reachable as well. So that’s basically it for my week. Once again, not an incredibly outstanding week. And together with last week, really I was able to manage to keep those green. But really, I’m really grateful that I was able to lock in some great trades and some great profits in the first half of the month. Because the second half of May so far has been quite disappointing.

So I hope you enjoy the content of the video. If so, just please show me some love pushing that like button. And if you have any questions, just put those questions down below in the comments. I’ll make sure I come back and answer to every one of you. So I want to thank you for your attention. And I’ll see you guys back in chat room on Tuesday. Because just a friendly reminder, Monday the market is closed for Memorial Day. By the way, if you’re interested there is a… One of the biggest sale of the year in world of trading, you can go and check the 30% discount we are currently running. So if you feel like you need a little bit of reinforcing your own fundamentals about trading, last thing you want to do is to trade. First thing you want to do is to invest into great education. So thank you for watching, and I’ll see you guys next time.

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