Warrior Trading Blog

Back In The Saddle +$3K! | Ross’ Trade Recap

Hey, everyone. All right, so here we are. Guess what? Fourth consecutive green day in a row. I’m back in the saddle, if that’s how you say … Yeah, I’m back in the saddle, that’s right, back on the wagon.

See, I always get confused about whether you’re on the wagon or off the wagon and which is a good thing. But in any case, I’m back in the saddle, back on the wagon and feeling good here. Another green day, $3,000 of profit. That’s solid. I mean, I can’t complain about that at all. Right now, early April. It’s rehab for me. It’s just about focusing on A quality setups. Today, I don’t think I took my first trade until maybe 9:45 or even closer to 10:00 AM. I just said, “I’m going to sit. I’m going to wait. I’m going to be patient.”

I had two small trades. A small loss, a small winner, nothing to be excited about, and then $3,000 winner, that one made it and it wasn’t swinging for the fences. It wasn’t going for a home run. It was a solid base hit. Now fan mail Friday. I posted this over on Instagram. Been getting some fan mail, which is pretty cool. I wanted to share this with you guys on the channel and also just give a public thank you to some of these guys who have sent over a couple of things. So obviously had a rough couple of weeks of trading and so this fan mail was really nice to get from Jonathan. He sent me a copy of a Hemingway classic, Ald Man in the Sea, which is really pretty cool. So some nice reading here. Thanks to Jonathan.

Then from our friends up in the Yukon here, Second Chance Gold Mine. Very cool. So if trading doesn’t work out, I got a job up at the Second Chance Gold Mine in the Yukon, which is pretty awesome. So we’ve got that going. Then let’s see, I also got a nice letter from a student in Mississippi who’s going through the classes and really appreciated the $28,000 red day recap. Another letter here from a student who sent over a couple of candles. You guys know I like, I’ve got this candle that I have here, this is … It’s called ’85 Diesel and I’ve got a couple of these. Well, it’s kind of hard to open the box here, but they smell good. It doesn’t truly smell like Diesel. Travis sent a candle that literally smells like a pint of diesel gasoline, diesel fuel sitting here in the office. So as long [inaudible 00:02:28], I’ve actually been told not to burden in the building so, but thank you, I appreciate the thought.

Anyways, fan mail Friday coming a little late here on Tuesday, but I really appreciate this. So those of you guys that ever feel like sending in a letter, you can email us and we’ll give you our P.O. box and you send something over to us. All right, so anyways, green day recap here, fourth in a row, feeling good about that. Any questions, any comments, leave them below. We’ll come back through and answer them this afternoon and I’ll see you guys all first thing tomorrow morning, 9:15 for pre-market analysis. Goal, five days in a row. See if we can do it.

All right, everyone. So we’re going to go over the trades from this morning. Today is going to be my fourth consecutive green day, which is terrific. I’m really happy to just be putting some space between me and some of the difficult trades that I had a couple of weeks ago. So you can see here on the screen my PnL today, the three stocks I traded. Today was kind of interesting because we didn’t have a very good gap scanner. Now, the gap scanner, of course we use every morning to find stocks that are up pre-market during the pre-market trading hours. So 9:25, this is what the scanner looked like this morning, 9:25. Okay, so our leading gapper in the entire us market was ADMA, a bio stock up 54% pre-market on 4.35 million shares of volume. So this thing was was moving and my problem with it when I pulled up the chart was right away I could see that it was already starting to dip down a little bit.

But I said, “I’m watching this trigger at 6.45. So why was 6.45 a trigger? Well, let’s pull this off of here for one second. We’ll remove that horizontal line and we’ll go make this full screen here or bigger, at least. So pre-market this first squeezed up here and formed what we call the nice pullback pattern. We also refer to this as my hairline, so gentle pull back and then we look for the first candle to make the new high, which is right here. Nice move up. Now obviously we’d like to see these types of patterns happening during regular trading hours. When we see this pre market, it doesn’t mean a lot for me because the volume is so light. I’m not really going to be able to trade it. So I just, whatever, I’m not even looking. I’m not even looking at my computer at 7:25 in the morning. I’m just not.

So but I pull up these stocks around 9:15 and I see that, okay, now we’ve got this longer period of consolidation. What I notice is that we’re above the blue 20 moving average, which is good. We’re below the nine exponential moving average, which isn’t great and we’re also just below the volume weighted average price, which also isn’t great. The reality is it’s at 6.15 and the pre-market high is about 7.04. So it has pulled back quite a bit versus the high of day. Now, using these lines here, the green, the blue, the cyan, and the red, this tells us that the point of control is 6.67 and this is an algorithm that creates that line. So some of you guys are already in our futures room. At Warrior Trading, we have three primary chat rooms, we’ve got small caps, we’ve got large caps and we have futures.

So the futures traders, that room is run by Steve and Steve is a commodities trader. He lives in Chicago and he’s been trading for a really long time. One of the things that he developed was this suite of indicators that help identify, support in resistance levels. They’re featured on the Bloomberg Terminal. So they’re used by a lot of institutional traders all around the world and he created this site has [taskwarriors 00:06:52].com where you guys can get these indicators if you want. There’s a video of Steve. Anyway, so I have these turned on on my eSignal charts. They’re not compatible with every platform, but they do work with eSignal. So this is showing the point of control as 6.67, meaning when the stock is above it, it’s bullish. When it’s below, it’s bearish.

The top of the resistance is of course at high of day there at 7.04 and the bottom is right about the low of this level here. That’s the support level of 5.92. I got 6.45 by looking at the high of this candle right here and this candle right here. So I realized that we double tap, double tapped at 6.45. We tapped it once, we tapped it a second time and if we broke it a third time, I believed that there would be a good chance that we would break over the half dollar and that we would continue moving higher. That maybe back up towards 67 and above that level back up towards 7. So that was my lone bias on this stock. The bell rings and it immediately sells off and I’m like, “All right, well you know, no trades yet.” Just watching it. It continues to go lower and that’s pretty much it.

Now at this point right now, this is a bear flag. The stock has rolled over. It’s consolidating at the lows and below 5.60 would be a potential short. There you go, there’s the potential short, which would have given an opportunity for a move back down to 5.12. So about a 50 cent short there on that bear flag and then a short term reversal here back up towards 5.60. So not for me, something that I was really interested in trading. In hindsight, maybe I could have done something there, but I left it alone. So that was ADMA, our leading gapper. Second leading gapper was SGMO.. This one was up 46% pre-market but the prices a little higher at $13 so I left that one alone. No trades on that one.

Third one down was RIOT up because bitcoin was up overnight but we don’t get into that. I really am not interested in it. It did end up doing kind of a crazy move here on the one minute chart where it looked like it was going higher and I was like, “No, I don’t trust it. I’m not touching it.” Look at this out of nowhere it goes from 5.15 all the way back here down to 4.35. So really glad that I left that one alone and just didn’t mess with it. Also on the gap scanner MARA. That one’s too cheap. EDAP, the float’s a little higher. OVID, I ended up taking a trade on this, which was what we would call a five minute opening range breakout. Pre-market was not a pretty pattern I’ll admit. However, it was on pretty light volume and so I just figured, “Let’s see what this does.”

I took my trade right here, I jumped in. It hit 2.20 and then came back down and I got out. You can see a loss right here, small loss, whatever. So that one just did not work. We look at the five-minute chart and you can see it was a opening range breakout. Really, again, not picture perfect. So it was pretty quick where if it doesn’t work, I’m getting right back out. Got right back out. All right, so and then we had TAIT on the watch list as a possibility, but it didn’t really end up giving me anything to work with. SFET, this one gave also an opening range breakout here as you can see from 3.10 up to a high of 3.34 but like RIOT, ended up doing a pretty big rejection. Now I was able to make a little on it, but really nothing that great and I don’t like seeing drops like that.

So at that point, these two trades basically cancel each other out and I was just sort of sitting tight and that’s when CTRM hit the high of day momentum scanner right here at 5.93. As soon as I saw that hit, I was like, “Okay, it’s a former runner. I’m very familiar with it. It made this big move last week.” I know that the float is only 810,000 shares, very low. It’s already up 12% and I pulled up. So initially without even looking at the chart, I’m like, “Okay, let’s see what this is doing. This is something I should look at pretty quickly.” I pull up the chart and I recognized it right now is having the first daily candle to make a new high. Look at the chart on this one. It’s crazy. It’s like up and then down and then back up and then down and then here today back up. I mean, this thing is all over the place, very volatile.

The daily level that I was looking at, let me just remove some of these trendlines here, okay, so we’ll remove that one and that one, that one and that one. All right, so we’ll just go clear here. So I was looking at the first daily candle to make a new high. This is a swing trade set up. It’s one that we talk about in the classes. First daily candle to make a new high after a big move. Granted, this did retrace basically 100% of the move. However, it’s still a valid setup. So entry point is at 5.80. Well, by the time it was on the scanner, it was already at 5.93. However, I felt very confident first daily candle would give us a move at least to 6.78, the first resistance point, that was my first target.

So I jumped in at $6, right at 6, actually 6.03 and then we had the next level, which was 8.61. So we go back and look at this here on the one minute, it starts by popping up here right in this level, pulling back and then continuing higher. So this is where I’m in it right here and it gets halted at 6.41. Of course traders seeing it now hitting the scanners and they’re like, “Okay, yeah, maybe this is a stock that’s worth keeping a really close eye on, former runner status, et cetera, et cetera.” All right, so let’s see. So let’s see. So there was the high. It resumes from the halt and this was the moment of truth. It hit a high of 73 and then dropped all the way back down to 23, so a 50 cent drop there and I was like, “Oh man, is this going to be another one of those ones that just gets rejected right away?” I’m not sure.

The setup is okay. There isn’t news, but it has everything else. Of course today, what’s the context of the market that we’re in? ADMA, really weak. RIOT, weak. OVID, weak. SFET didn’t hold up. So I don’t know. Is it going to work? I’m not sure. I’ll give it the opportunity for the first one minute candle to make a new high and boom there you get that move. But then again, it goes up to a high of 6.98 and then it drops here all the way back down to $6. So on this trade, I sold right in here on the first candle to make a new high, and then I added back at 91 for the break over $7. I was like, “Yeah, I’m going to get back in at 91. I think it’s going to break over $7.” So I get back in at 91. That ended up being a mistake because it promptly dropped right back down to $6. So I stopped out pretty quickly, which was good I guess.

But the problem there was I went from being up about 3,000 or so to being up only about 1,200. Then it goes sideways, sideways, sideways, and right there. Look at that. It breaks again and goes back up to 7 and hits a high of 7.10 and I got back in right here 70. So I got back in and then there’s that quick move up to 7.10, the pullback, little consolidation and then boom, another sweet move here up to a high of 73. My biggest problem on this was these whips. The whip down there, the whip down here. A little bit of a dip down here, false breakout here up to 7.10 and then back down to 7, to 6.69. So it was really bouncing around quite a bit and that made it kind of hard for me. I tried to be as aggressive on it as I could, but I sort of just kept getting in and then stopping out and then getting in and stopping out and that just didn’t work.

I mean, I’ll show you some of the trades here. So let’s see, where was this? So let’s look at … So this one at 58, what was the time here? Okay, so that was back here. Trying to scalp this little area here. I added at 96 right there, I added like literally right under high of day. It wasn’t 91, it was 96. I was going for the break over 7 and then stopped out right at 6.50 instant, 46 cent loss pretty much, I mean, within 30 seconds. So it popped up to a high of, I guess, the high was 6.98 and then it dropped all the way down and I was like, “Got to get out.” So took a loss right here and then I got back in as it curls back up. I got back in at 74, 74 and added 86 and then we had a big seller right at $7 so I sold half at 97 and 99. So that was okay. Got Back in at 98, 99. Tried to sell at 7, wasn’t really getting filled. Had to try to sell, cancel orders, tried to sell, cancel orders.

Finally got out, got back in at 84, that was a nice one. So back in at 84. Or sorry, no, I sold at 84. Back in at 31, that was at 15 so that was right here. This was high but was able to kind of scalp this move here and hit a high of 73. So it was like kind of a lot of trades, getting in, getting out and that’s pretty much what the momentum strategy is all about. It’s scalping these breakouts, taking a little profit, getting back in, taking some profit, getting back in and this one ended up being okay, but here is one issue. Look at the five minute chart on it. Look at this volume pattern. Hi of day volume, each time was on a red candle. So right here on this candle, this one and this one and that made it really difficult. By this point I was like, “You know what, I’m done with this. This is frustrating.”

It feels like I’m swimming against the current. It’s not really opening up. It keeps popping up and then dropping back down, popping up and dropping back down. So at that point I was like, “I’m done. I’m going to just take the green and walk away.” You know what, fourth consecutive green day is fantastic and that’s something that I can feel really good about. So obviously at this point, where’s my calendar? Let’s see, here it is. I wasn’t even totally sure if I wanted to be actively updating my calendar this month. I don’t want to get myself too fixated on daily gains or … I just kind of want to just trade good quality setups, trade for the sake of training and not be too focused on my PnL.

So I didn’t even write yesterday. I’m not going to write today. I’m just going to put the calendar away this month and just try and have a good month, not really think about where I’m at on the month or where I’m at on the week. Just green days. Just try and have a green day. Each day if I can be green, by the end of the month, inevitably it’ll end up being a great month and it doesn’t really matter how green it is. Now, today at 3:00 PM Eastern, I’m going to host warrior pro mentor session for our students and I got to talk a lot about bouncing back from a big loss, which is very topical considering that’s exactly what I’m doing right now. So I will have a good mentor session at 3:00 PM and I’m sure it will be relevant for some of you guys who have also been or either going through this now or have gone through it.

I’m learning some really interesting stuff about, I say, myself going through this kind of struggle. It’s the first time I’ve really been up against the wall trading in a very long time. So it’s kind of helped me reconnect I think with a lot of you guys who are up against the wall because you’re at the very beginning of this learning curve. You’re just getting started and when you’re just getting started and you have big red days or when you’re just getting started and you have very well defined monthly goals and you’re not hitting them, it can feel really stressful. So we’ll be talking about that today during the mentor session.

All right, so and everyone else, I’ll see guys first thing tomorrow morning, 9:15, pre-market analysis. Hopefully we’ll have a couple of stocks on the gap scanners that look maybe a little bit better than what we had this morning. But we worked with what we had and came out green. So green is good. All right everyone, I’ll see you guys first thing tomorrow morning. If you’re still watching, you must’ve 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.