Warrior Trading Blog

Back in The Saddle +$632! | Ross’ Trade Recap

Saddle

What’s up, everyone? All right, so first day back in the saddle, and I’m finishing the day green. Up $632, so I’m happy with that. And that was really the goal. I mean, it’s almost like taking a vacation to me feels equal to having like a red streak. The first day back, go slow. Take it easy. Just start to build confidence.

 

That’s one of the things that I really like about my strategy is that I focus on having a really high percentage of success, accuracy around 70%, not just because I want to make money. You can have traders who are profitable and right only 30 or 40% of the time, because when they win, their winners are so big. But for me, the confidence, that sort of emotional boost of being right more often than you’re wrong, it just makes me feel better as a trader.

So that’s kind of what I came in looking for today. Two, three trades. I got two. Both green, both winners, 100% accuracy. I’m happy with that. All right, so it was a really nice break that I had, and now I’m back in the saddle, and looking forward to things picking up, momentum back in the market, and hopefully having a good week here and kind of getting recharged now for a good stretch, October, November, December, January, usually the time of year where I make the most money. All right, so enjoy the recap. Any questions, any comments, as usual, leave them below and I’ll come back through and answer them later today. All right, enjoy.

All right, everyone, so we’re going to do our Midday Market Recap, go over the trades from this morning. So today is my first day back in the office after taking a week long vacation, the first vacation I’ve taken since 2011, the first vacation I’ve taken where I haven’t been trading during the vacation. So it was nice. It was interesting. So different to not be on the waking up and having to trade. I mean, it’s just such a ingrained part of my schedule, it feels very strange not to have it. But at the same time, it’s good to step back and just kind of take a break from time to time. And so one of the things someone asked me is how I deal with the FOMO, because there have been times where I’ve taken a day off or something like that, and when I’m away, that’s when we end up seeing like some huge momentum.

And so for me, this time I was like, “I’m not even going to look at the market. I’m not going to look at charts, I’m not going to look at the gap scanners, I’m not going to open my computer, and I’m not going to ask people how the day was. I’m not going to check on Twitter. I’m not going to do anything. I’m just going to pretend that the stock market doesn’t even exist.” And that was the right approach, because the one day where I was hearing people in our staff chatroom, because we have a chatroom of course for all of our staff members at Warrior Trading because we’re located around the country, and they were talking about how TLRY was going crazy and blah, blah, blah, blah, blah. And I was starting to feel some FOMO because I was like, “Ah, I’m missing this big opportunity.”

But of course it was a $300 stock at that point, and it was just like that’s not something I would have even traded. So I didn’t get it too bad. But for the most part, really the best thing is just to put it at the back of your mind. And the reality is before last week, before that vacation, I was sitting up over $360 thousand on the year. I can afford to miss a week of trading. And I say that. On the other hand, last year, three days contributed to 33% of my profits for the entire year. So that’s the reason I usually don’t like to travel because if I happened to miss those three days last year, I would have made only about 250 thousand instead of 380 last year.

So missing three days can be a big deal. I really don’t like to take days off, but in any case, decided to take the week off after finishing an awesome inner circle seminar in Orlando. It was a lot of fun. It was our fourth seminar and I wanted to take a little bit of a break after completing that. So you’ll notice that I’ll have a shadow here. Gavin’s going to be hanging out. He’s a student at Warrior Trading. He’s going to be learning my strategy. He’s been trading for awhile. He’s actually been a member of the community for about a year, and I decided to bring him on as a mentee to work with him and my goal is that he’ll be able to start helping some of our students who are in the Warrior Pro class, depending on how it goes having him here and his experience, it may be something that I start doing next year, bringing people … Inviting people to fly out and trade side by side with me for a week at a time or something like that.

So stay tuned for that. That may be something that we do for … Most likely it would be for like inner circle students or something like that. It would be for a very small group. But something to think about. So anyways, this morning I’m green. Gavin’s green. So that’s good. Oh, actually I see you’re in the red. It must be commissions. Is that from commissions or did you take another trade?

I was trading again.

Yeah, he took another trade. All right, so he gave back his morning profits. So that’s a lesson that our … He’s going to step into daddy’s dojo this afternoon and we’re going to talk about not over-trading. You had the green, you had the profit, gave it back. So for me, XBIO was the one that I traded, that was the one that I know he was green on earlier. And there were basically three set ups on this stock. So today was … Well first, any time I take a day off, even if I’m not on vacation, I take a day off because I’m traveling, or something like that, I have meetings, I always like to kind of ask people, “Okay, what did I miss yesterday? Was there something that was really hot that made a big move that I should be aware of?”

So obviously I knew last week there was the cannabis stocks that were hot, NBEV, TLRY, et cetera. That’s fine. So I knew that there was … Or TR … I sort of keep forgetting the symbol, but in any case, I knew there was some stuff moving there. And then on Friday, I heard that XBIO was pretty hot. It didn’t close super strong, but had made a nice move pre-market, it was hanging out with a pre-market high of 390. So that looked interesting for continuation and a retest of yesterday’s high. ABIL also looked interesting for a retest of previous day’s high. Squeezed up on Friday, it was holding up a little bit pre-market, the bell rings, then it sells off. So nothing on that one.

And then of course the gap scanner. So every morning is the same, checking this gap scanner, looking for stocks that are moving, historical date. So we’ll do this for 9:15 AM, whatever. And you can see pre-market we had AMRN. This one, a little bit for me too expensive. Float’s too high, no interest. ACST, this one was interesting, but a little on the cheaper side, like a dollar. So wasn’t sure about that, bell rings, it sells off. OGEN, below a dollar, too cheap. AZRX, all right, this one, 11 million share float, $3.40, that’s a great price range. It was the first one on the list that’s a good price. But I look at the chart and not really liking that. Pre-market, it hit a high of 480, but then by the time the bell’s ringing, it’s back down like 340, so already showing weakness, which I didn’t really like.

So that one I wasn’t interested in. It did end up bouncing a little bit, but I just don’t like it in the context of that pre-market chart. So that was no good for me. Let’s see, and then next one down, AGTC. On the surface, looks really interesting. Nice chart. But we check it and we see it’s a five cent tick pilot program stock. Great news, five cent tick pilot program ends in October. This is the last week of having to deal with it. We’ve been dealing with it for two full years. The program is ending. It cost investors over $300 million, and it is now over.

Speaking of $300 million, as a side note, last week I was in Newport, Rhode Island, and my wife and I, we usually go there like once a year, just because it’s nice, it’s pretty close by. It’s only like two and a half hours, and they have these like mansion tours. This is a total side note. They have, in like the early 1900s, there was this sort of like … I don’t know, this wave of very, very wealthy people moving to Rhode Island, and to Newport, Rhode Island, and building these huge mansions. And so now you can go do the tours, and it’s kind of like a Downton Abbey type of tour. You can see the mansion, you can go down in the basement, you can see the kitchen. They have a servant’s tour. You can see where the servant’s quarters are and everything like that.

So this one house, The Marble House, built in … Like right around 1900, I don’t know, 1895 to 1905, somewhere around there. Built for $11 million using $7 million of marble. That $11 million in 1900 would be $300 million today. Imagine spending $300 million to build a house. Well, you could have done that with all the savings if they had not done this five cent tick pilot program. So a lesson there on the five cent tick pilot program. But anyways, so AGTC, pre-market high, 545 or whatever it is. It just didn’t hold up, so no trades there.

All right, so basically today, gap scanner’s dead. Nothing really that I liked on it, so that was off. So XBIO was the one I was watching the most closely. And before the bell rings, I’ve already got it typed up right down here in my bottom level two. I kind of usually keep these two bottom ones for continuation names, and then I keep the ones up top for fresh movers, but we really didn’t have any. So XBIO, it’s up and I’ve got an order ready at $4, 3 thousand shares. All right, so I’m watching this one for a break over 390, because the pre-market is, as you can see, 390. All right, so I’ll move this back down here. I’m going to bring this down to a one … Actually a 10 second chart, which is something you can really only do with a couple of brokers, or a couple of trading platforms, but all right.

So we’re going to go down to 10 second chart, and you can see here, this is the bell. Bell rings right here, and it’s right under 390. And I’m watching it and watching it. And then I pull up a stock that hits the scanners, I don’t remember which one it was that hit first. ASTC, maybe I pulled that one up or whatever. I look over, I look back, and boom, XBIO pops up from 390 to 410, 425 and I see some people in chat saying, “Sweet, just made my first $300. Made my first $100.” Whatever. So some of you guys hit that trade, you jumped in for the break of the pre-market high. It’s a gap and go strategy as per chapter six of the Warrior Pro course, perfect entry right there, gap and go.

It pops up to a high of 425, and at 425 there was like a 12 thousand share seller. So it taps 425 and then drops all the way back down here to 388. So it retraces the whole move. And I said, “Okay, guys. Well you know what? If I’d gotten in at 390, it would have still been a winner, because I would have scalped and sold some of it up here at … Well, probably … Well, you know what? What I probably would have done’s I probably would have bought at 390, doubled at $4, and been selling at 410, 415, 430, et cetera. All right, so it ends up hitting a high of 425, drops back down. And now I said, “Okay guys, the place to watch is back over 425.”

Because there are some traders who will jump in something like this and hit it to the short side as soon as it drops, so if it comes back over 425, that’s the spot that they’re going to cover, and that’s the spot where it’s also going to be back on the high of day momo scanner as it squeezes up for the next leg higher. It it was already on the high of day momo scanner because the float is 8 million shares and it’s moving up with volume.

all right, so I called that out. I type in my level two window. Now, I’m moving the order up to 425. So I type 425, 3 thousand shares. All right, it squeezes back up right here, boom, boom, boom. And I punch the order twice. Boom, boom, 6 thousand shares. Now, that mansion was called The Marble House. The Marble House. It was also a filming location for The Great Gatsby that was filmed … The one that was filmed in like the 70s. Anyways, so XBIO, so I’m in at 25. Now, I only took 6 thousand shares because I sort of … Today’s my first day back, just kind of wanted to get the lay of the land, get comfortable, try to make some money. The last thing I would want to do on the first day back after a long weekend or anything like that, a week off, is take 10 thousand shares and lose 30 cents and be down 3 thousand bucks.

I just don’t want that to happen, so I was like, “I’ll start with smaller size, try and do a quick scalp.” So I’m in at 25. As soon as we break that seller, it goes 12 thousand, 11, 10, 9, 8, 7, 6, 5, 4, 3, 2, 1. I punch my two orders, it breaks and two seconds later, I sell half for a $400 profit, or a $350 profit at 438. You can see here, it pops up to 438, and up to 445. I sell at 38, 33, 24, and the rest at 24. So in that first trade, I made about $500 of profit. Quick money, 500 bucks, in and out.

All right, it pulls back, consolidates sideways, and I’m now watching the high of day of 45. I could have gotten in this down here. I just wasn’t totally sure it was going to work. So I waited till it came back up to the half dollar and I added at 49, which was a little on the high side, adding for the break over the half dollar. All right, so I didn’t use a hotkey on this, I just pressed the buy button. I typed in the order. Now I’m moving it up to 50. So I just pressed the buy button once. To sell, I’m using my hotkeys to sell on the ask. All of these I sold on the ask. And that’s why I had to keep canceling the order, because I wasn’t getting filled. But I did sell these on the ask.

All right, so now I get back in at 49 for the break over the half dollar. It pops up to a high of 54 or 55, I sell at 54, 54, 51, and 50, and I make another $115. So not a big winner on that one, but it was worth the scalp. It pops up to a high of just 55, and then it faded from there. First five minute candle to make a new high, ended up getting a little bit of resolution, but at that point, I was sort of done for the day. I thought, “You know what? $600, that’s good. That’s green. Let’s just try to build the momentum so tomorrow I’ll have about $82 thousand in this account and that’s what I’m going for.”

Just keep growing the account, slow and steady wins the race. So that’s really about it for the recap today. One … Well, two trades. The best … There were three set ups on this stock though, the first one was down at 390, which I missed. The second one, and I’ll just bring up my live drawing tool. So the first one right here at 390, second one at 425, third one for 445, 450. So three set ups here. We always know the first and the second and the best, third becomes a little higher risk. And then we have to wait for a first pullback on a five minute chart. We didn’t get a good pull back, it ended up fading and going sideways.

Separately, I saw ANAB on the scans for reversal down here. 94 RSI, and I pulled it up, I looked at it, and I was like, “Wow, this thing’s just gone from $90 to 110 bucks. That’s a huge move.” I pull it up thinking obviously I’m watching it for a reversal, but I look at the spreads, and they were just to me too big. Now, having said that, it’s actually dropped like 10 points off the highs, but I just again, I don’t really have a big profit cushion on the month of September, partly because I took a week off last week, but also because the first two weeks weren’t that great. We’re kind of continuing the slow trading from August, so I’m green on the month, but not by much. And I really can’t afford to take trades outside my strategy right now.

I’ve got to stay focused, trade the strategy, follow the rules, book profits and then once the market starts to get really, really hot again, that’s when I can increase the risk and start to be more aggressive. So one of the things that I’ll remind you guys, I know for me, I’ve had hot streaks and cold streaks. And during a cold streak, it can feel like, “Geez, is this for real? I mean, in January I made 100 thousand bucks, and I’m only up like $5 thousand this month.” What is different? Am I different? The answer’s no. I’m not different. I’m the same trader who can make $100 thousand in one month.

What’s different is the market. You’re going to have hot markets. You’re going to have cold markets. And when you’re in a cold market, you can’t panic, you can’t freak out. You’ve got to just remind yourself that you’re the same trader who did this, and this, and this, and that what’s different right now is that the market is a little bit slower. And so the good news is that you will always come out of a slow market. You will always get to the other side and then things pick up and they’re crazy and that exuberance is back and the FOMO is back and you’re seeing stocks squeeze up 100%, 100% 200% et cetera, et cetera. And it just, it goes crazy.

And then during those days, you forget about the months you spent during choppy markets. You’re just like, “Oh yeah, it’s back.” And the more times you go through that cycle, the more confidence you’ll have during the next slow cycle that yeah, it’s slow, but you will come out of it. And so that’s kind of how I feel now. Yeah, the market’s a little slow for me. I missed a couple opportunities last week, but things will pick up. I will start having $5, $8 thousand days again soon enough, and I’ll be super happy for them. But in the meantime, just keep grinding. It’s a $500, thousand dollar a day type of market, and there’s $630. So green is good, progress is being made.

All right, so that’s it for me. I’ll let you guys enjoy the rest of the day and we’ll be back at it first thing tomorrow morning. Hopefully we’ll have some good gappers on the scans. All right, so I’ll see you guys back in the morning. And Eric, only using the 10 second chart to show you guys examples of the micro pullback, because that pullback, that entry at 425 on XBIO, when you look at a one minute chart, you’re not able to really see this pullback that existed right in here. When you look at a one minute chart, and you can use 10 second, 15 second, doesn’t really matter, but when you look at the one minute chart, all you see are three green candles in a row. And so that’s where you might be like, “Well, I don’t understand your entries.” So that’s the reason I kind of slow it down, stretch it out, so you can see why I got in where I got in.

All right, so that’s it for me. I’ll be back at it first thing tomorrow morning. All right, bye everybody. If you’re still watching, you must have really enjoyed that video. So why not subscribe and get email alerts any time I upload new content? Remember, when you subscribe, you become a member of the Warrior Trading family.