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Back To School Sale! Momentum Trading & Swing Trading recap

back to school

Back To School Sale! Momentum Trading & Swing Trading recap

What’s up, guys? All right, so we’re going to do a midday market recap in one second, but before we do, I want to remind everyone that this weekend, we are running a back-to-school special. 35% off everything at Warrior Trading from chat room subscriptions to trading courses. The coupon code is SCHOOL35. So anything you put in your cart, you can add that coupon code and you’ll save 35%. Any of you guys who are thinking about joining the community, we’d love to have you, and this is a great time to join us and save a little bit of money.

So let’s jump in here and go over our midday market recap. All right, guys, let’s do a little mid-morning recap. We’ve got a couple updates here on swing trades. I’ll go over the trades that I’ve taken so far today. This is our 147th day of the year, day 147. We’re obviously more than halfway through. We’ve got about 250 trading days in the year. I took my first swing trade yesterday on WIN, and I ended up closing it for a $70 loss this morning.

You know, it’s kind of funny. I was mentioning earlier that I chose to take this swing trade on the day that the market was down 200 points, which you might say is questionable, but I really like the daily setup on it. I’ll stand behind that. WIN, the daily setup was the first candle to make a new high.

The problem on this one was just the fact that I knew I wasn’t going to have a lot of … There’s just not a lot of volatility. It’s a 200 million share float stock. It doesn’t move very quickly, so I just figured, well, I’ll get in this, set my stop order at the low, and hold it as long as I can. I ended up getting stopped out today at $2.06, which was the low of yesterday’s candle. I adjusted my stop to the low of yesterday’s candle because I felt if it broke that low, that doesn’t really look good. Granted, I could have just kept it with a top st $2, and that would still be okay, but it just wasn’t really working, so I stopped out. Only a $70 loss on that. Not a big deal.

Then, I took a trade on DRYS. Obviously, sadistic and wanting to punish myself. I don’t even know why I do it. I got in this one hoping it would squeeze up. I got filled at $4.09. It popped up to a high of $4.23. I have this issue. I don’t know what it is. When I come over to my office, I have to switch Wi-Fi networks. My office and my house are on two different signals. So I walk across the driveway to my office, and I switch signals.

Now, for some reason, when I do that, what often happens is I start getting a lag on my level two, and I’m not sure why that is. That happened again today. So my level two is lagging. I’m not able to really see what’s going on, and I end up, unfortunately, not seeing the current price. As a result, I sold three quarters at, like $4.19 and the rest down at $3.85, so that ended up not being the most impressive trade, which is a little disappointing. I lost $234 total on DRYS.

Then I started my second swing trade, which is on GEMP. Now, what I like about this one is, again, the daily setup. This is the first day that we’re making a new high. You can see here, this is curling up. Now, I haven’t decided if I will hold this overnight or if it’ll just be a longer day trade. It could be either. I could either sell it for a small profit intraday or at least reduce my risk intra-day or hold the whole thing overnight.

It’ll kind of depend how things look a little later in the morning. It’s still only 11:00 a.m. What I like about this is that daily setup, that curling action. This is the same thing that I liked in ZYNE, right? The first candle to make a new high. On ZYNE, it went 30% intraday, which was fantastic.

At its high, GEMP was up about 10% today. I was really hoping to see a push up towards $9. We had the first pullback right here. Now we’ve got the second five-minute pullback right here, which is fine. Still looking for that continued trend back up. What I really like about these setups is the fact that you’re buying it off the lows. So you have a stock that’s been beaten up, buying it off the lows, and then the target is that we see it grinding back up towards equilibrium. When those stocks get really stretched out one way or the other, they’ve got to snap back. I don’t really like the idea of shorting stocks and holding those shorts overnight. I much prefer the idea of being long and holding that long position overnight, just generally speaking. That’s sort of my feeling on it.

This one came from 22 down to 8. Now, it’s starting to curl back up, and you can see on the daily chart that we’ve got room back up towards the 200 moving average. I mean, we’ll see how strong it is, but right now, that curling action is what we like to see. That’s basically where I’m sitting here today, as we come in towards 11:00 a.m. It’s been a little bit of a slow morning. We had what seemed like would be a lot of volatility this morning, but it was on DRYS, and it was on TOPS, and it was on GLBS and all these shipper stocks, which I didn’t like to trade. I took the one trade on whatever it’s called, DRYS. Got stopped out, of course. That’s just the luck of the draw.

I think one of things that’s nice, and I was saying this just a few minutes ago, is because we’ve been in a really tricky market for, really, the last few months, it’s nice to focus on stocks that have good swing trade potential. Then, if you end up hitting your targets intraday and it’s a day trade, well, that’s okay, too, but you’re doing a little bit more due diligence. You’re just being a little bit more aggressive about making sure these stocks have really good quality. That’s, of course, what I liked about ZYNE the other day. I looked at it, and I was like, well, I don’t think I should swing trade this, because it’s a bio stock. Pharmaceuticals, I don’t know, stuff could happen. Then, I reminded myself, look, just because it has a good daily setup doesn’t mean you have to hold it overnight. You can sell it intraday. You can sell it when you’re up 5% or 10% or whatever it is.

Of course, that’s what I should have done, but I sat on the sidelines, because I was like, no, I shouldn’t do swings on pharmaceuticals. That’s why I have a change of heart on this GEMP. I’m going to say, no, it’s got a good daily setup. I’m going to take the intraday trade. If it ends up hitting nine bucks or $9.50 intraday, then yeah, I can take some profit. If it ends up not hitting those targets, then that’s fine, too. I can wait for the first pullback or let it consolidate for a while. I’m going to be holding this for the time being.

I’ve got a stop down at 8:15. I might move it up to the low of $8.25, the low of this pullback. Let’s see. My average is $8.48, so I’m going to basically just put out my bracket order. I’ve got a profit target, and I’ve got a max loss. I’m going to run out and grab some lunch, and if by the time I come back the 3:00 p.m. or 4:00 p.m., it’s still in-between those brackets, I’ll still be holding. If I end up getting stopped out or getting my ultimate profit target hit, then that’s fine, too.

That’s kind of where I’m sitting right now on this one. We’ll see how it does. One of the other things is on ZYNE and on GEMP, I would be more aggressive with my share size, because I think I can hit my target intraday. I did not think I would hit an intraday target on WIN. I didn’t think I would, so I started with a smaller size. Now, on GEMP, I was more aggressive on my share size, because I thought there was a good chance that I could hit my target intraday based on this type of stock being similar to ZYNE. So I started with larger size, and I’ve already scaled back down to 500 shares.

Now, I can go back to that core position and hold that with a bigger profit cushion. It’s kind of like you make sure you get a really good entry. You take the profit. Let’s say you sell half when you’re up 25 cents. Now, you’ve got a couple hundred dollars profit, so even if it does go down to hit your stop, well, you’ve already got some profit on the trade, so now your stop is going to be break even. You’re not actually going to lose money. I now have a bigger profit cushion on this, where if it goes down to eight bucks, I’m still going to walk away with a little bit of profit. That’s kind of the goal.

One of the other things you can do, not on this one but on stock trades or higher priced stock trades, is as soon as you get in … Let’s say you buy 100 shares of Amazon. You could sell a covered call against that position. Now, you can only sell one, because you only have 100 shares. Each call would be for 100 shares. If you have 1,000 shares, you could sell 10 calls. You immediately sell those calls.

Now, you’ve generated a profit. You sell them outside the money. Yes, if the stock goes up, then that’s fine. You’re still holding your position, as long as you don’t get taken out from the call, right? If it goes down, then you already have profit because you sold the call at a higher price, and you can sell them both. Now, even though your stop might be 40 cents away, you’ll be stopping out break even or something like that.

Those are ways that you can kind of hedge yourself against having a bigger loss. For some reason, my Facebook Live stream just died. I don’t know why. In any case, that’s interesting. It looks like I lost my connection to the Internet completely. Fortunately, I’m recording the YouTube recap on my screen recorder, but I have no Internet connection. That’s very interesting. I’m going to have to figure out what is going on. I lost connection to Lightspeed, and I lost connection to the chatroom. All right, well, I’m going to try to get myself back online, but in any case, finishing the morning here. Red on my day trades, green on one of my swing trades, and red on the other.

So a little bit of a mixed bag today. Not the most impressive day, but holding GEMP right now, and we’ll see. Hopefully this will curl up and get over $9 before the close. If not, I’ll either close it out before the end of the day or hold 500 shares for the weekend. We’ll see how it looks on Monday morning. Even if I close out the whole position, I’ll still have it on watch on Monday for day trades, because it’s still most likely going to be a good daily setup. All right, so, that’s it for me. I hope you guys all have a great weekend, and I will see you first thing on Monday morning.

Oh, hey. I didn’t see you there. I was just working on the dream board for my next home run trade. Hopefully it comes soon. Until then, make sure you subscribe to get email alerts any time I go live or upload new videos. Until then, happy surfing.