Warrior Trading Blog

Big Green Summer Days +$7,962! | Ross’ Trade Recap

green summer

What’s up, everyone? All right. Here we are. Today is the 130th trading day of the year, finishing the morning up just under 8,000 dollars. The momentum right now is hot.

 

July feels like a great month. It’s so nice to have big green days in the Summer. Then, be able to go outside and enjoy the sun and enjoy the nice weather. Trading feels good. The weather feels good. Life is good. Loving July momentum.

It wasn’t like this last year. It was like this two years ago in 2016, but 2017, momentum in the Summer was dead. It’s because the crypto market was so hot. I think that just drew a lot of traders out of the small caps and into the cryptos. But, cryptos right now, not much happening. Momentum is back in the small caps and I am loving it.

Anyways, we’ll break down the trades for today and today’s midday market recap. Any questions, any comments, leave them below. I’ll come back through and answer them later today. All right, enjoy.

All right, everyone. We’re going to break down the trades from this morning. Another awesome day of trading. Up $7,962.22. The thing that’s interesting is that this is the 5th day this month that I’m going to finish right around $8,000. $8,000 a day is a terrific day, but I can’t seem to break over the $10,000 level, a $10,000 day. It’s always nice to have a big $10,000 days. What’s interesting is back in January, I finished January with $117,000. I only had two days … Actually, I had three days where I broke over $10,000.

All the rest of the days were $5,000, $8,000, relatively smaller green days. All of these green days are definitely adding up. Here we are. We still have a week and a half left in the month and I’m crossing over $40,000 of profit. Yeah, there’s no reason to feel bad for me. It’s been a great month. It’s just kind of interesting that I haven’t had a home run type of trade. I haven’t had a $20,000 day or anything really, really exciting like that. But, just kind of lots of good days, lots of sort of smaller green days. It is adding up. It’s just kind of the ebb and flow. The month of May, for instance, just looking back on my calendar, I had two days where I made $30,000. Two days.

That right there made up the bulk of the profit. The rest of the month was kind of choppy. This has been a month where it’s just kind of like grinding. Green is good. 3,000 here, 3,000 there. In fact, for me today, I’m getting up to almost $8,000 in profit, it took a little bit of work. I had to do a lot of trades today, more than on an average day. Let me show you guys what this looks like. Here’s the total profit this morning, $7,962.22, which is good. Traded four stocks. Green on all four, which is good. CPAH, this was the big winner. A smaller win on MTSL, MTBC, and staff. I’ll show you guys how I found these stocks this morning and was able to make nearly $8,000 in less than an hour of trading. Less than one hour.

It’s one of these things where the work isn’t really that hard once you get it. The hard part is learning it. The reality is you won’t be successful trading the markets unless you have a strategy. A lot of people, they come into the market and just sort of do this trial and error. Do a little of this, a little of that, trying to develop a strategy. It just doesn’t work super well. Trial and error, it took me two years before I really found something through trial and error. It’s not a very efficient way to learn the market. It can be done as long as you don’t mind spending two years at the drawing board.

Anyways, let me show you guys the scanners. Okay. We started this morning the same as every other morning using the gap scanners. We’ll look at these for 9AM. What you’ll see is that at 9AM or 9:10, the gap scanner was a little on the light side. There actually wasn’t a lot that I liked. PRPO, too cheap. QUMU, too little volume. CHRS, the float is too high and it’s above $10. URG, the float’s too high. It’s below a dollar. UEU, the float’s too high. Just like that, we’ve narrowed it down and boom, here we go. There’s CPAH. There’s MTBC. All right, so here we have CTAH and MTBC right here as the stocks I traded. Now, staff and MTSL, those were surprise stocks that I found off the scanner. I wasn’t expecting them, but these two I was watching right out of the gate. Let’s see. Let me just clear that out. CPAH, I was watching this pre-market.

I said okay, guys, this looks interesting. Where do you think is the entry point on this stock, right? For those of you guys that have been in the room for a long time, you’d look at a couple different levels. You certainly look at the pre-market high. That’s definitely a possible entry point, but I’d also look at pre-market, the pivot over the pre-market level right here of approximately 3.35 and then maybe over 3.40, anticipating that it’s going to come up and hit the pre-market high and break through it. It’s right around a half dollar. The bell rings. I’ll back this up.

Right as per the watch list, I had my order ready to go. I typed in CPAH right here. I typed my order at $3.50. I was ready to jump in as soon as the bell rang. CPAH, as soon as the bell rings, it starts to surge up. I start adding it. 3.39, 3.42, 43, and 50. Boom, there’s 10,000 shares. All right? I’m stepping up to the plate with a pretty big size. Instantly, I’m up about a thousand dollars. I take a little bit of profit at 3.60. I take a little more at 3.60. A little more at 3.52. I sell it 3.42 and then I add back as it curls back up at 3.65.

Right here, did a little bit of a false break. If I go actually to the 10 second chart, you’ll kind of see what this looks like even better. Inside that one minute candle, you saw how it looked like a doji, it did something like this. This right here is actually a flag. That’s why I added back at 65, because it was breaking the flag. This is all inside a one minute candle. This is in 45, or whatever this is, this is within about a minute, right? It pops up to six, to 70. It drops back down. As it curls back up, I’m getting back in at 65, anticipating this move here. Boom, it moves up to a high of $4.05 right there. This is the two setups here, first, it’s a gap and go trade for a break of the pre-market highs.

Then, it’s a first pullback, all right? This right here is the first pullback getting in at 65 and selling on the move up into the 80s. I then add 80, sell at 84. Now, I’m scalping. I add 88 and sell at 96 and four dollars, right? Now, I’m being more aggressive. I get back in at four and I’m selling up here at 4.09. You can see there’s a lot of trades here, a lot of tickets, is because this was such an active stock this morning. I kept buying for these breaks higher, buying first here, adding here, selling, adding right up here, selling, adding in here, selling. This stock squeezed up, as you can see, pretty nicely up to five dollars, all right? That’s 100%, just about 100% in one morning.

This is our job as day traders, to find stocks that have the potential to make big moves like this. Now, if you’re a day trader with a small account, this is what you love. This is exactly what you look for. Now, my account’s not too small anymore. I’ve actually got close, well, after today, $120,000 in here. But, I’m trading the same exact strategy that I was trading when I started with $583 a year and a half ago. The strategy is not any different at all. The only difference is I’m trading with bigger share size, right? A 10,000 share position of a four dollar stock is $40,000 going into the name. With a bigger account, I can make more money. That’s the only difference. You can continue to scale this up to a $200,000 account or whatever, $300,000 account. Like I said yesterday, the biggest downside of day trading stocks like this is that you can’t really trade it with a five million dollar account.

You’re not going to be able to make five, 10 million dollars a year really in most cases, day trading the way I trade. You just can’t get in and out of buying enough shares to make that kind of money. That’s the bad news. Hopefully that doesn’t discourage anyone. If you were planning on making five million dollars next year trading my strategy, it might be a little difficult. But, if your goal was to make 100,000 or 200,000, that’s within reach. That’s more realistic. CPAH squeezed up to a high of five dollars, really nice move, pulls back. Total profit on the name, $6,689 and it was right off the pre-market watch list. It was really a very straightforward trade. There were a lot of scalp trades. Buying and selling, buying and selling. No doubt about it.

But, for me, I wasn’t able to take a lot of size up in here. The big move for me was this first move right down here, up to four dollars. Then, we’ll scalp up here and we’ll scalp up here. Now, someone mentioned yesterday on my YouTube video, they said “Ross, why don’t you trade CFD’s?” CFD’s, they’re contracts that you buy. They’re kind of like options. It’s really interesting when you trade CFD’s, your platform looks almost the same as what I have here. You’re pressing the buy button and sell button, but your orders aren’t going to show up on a time and sales ’cause you’re not actually buying the stock. You’re buying a contract to buy the stock. It’s a, I think, contract for difference is what it’s called. Here’s the thing. US residents are not allowed to trade them, all right?

We don’t trade them. I believe they’re a European financial instrument, because you don’t pay income tax on CFD trades. I think that that’s where they came from. Someone said Ross, if you trade CFD’s, you could trade 100,000 shares, ’cause you’re just buying the contract. It doesn’t matter if there’s not 100,000 shares on the ask. You’re just buying the contract. That’s true. But, most brokers, they wouldn’t offer you that amount of leverage on a CFD on these low price stocks because they would just lose money. These stocks are so volatile that they could go up 500% in a day. The CFD’s that most people end up trading are on very liquid stocks like your Facebooks and Google, Netflix, Tesla, stuff like that. There’s a lot of CFD brokers that don’t even offer them on these lower price stocks. All of that, again, is not to mention the fact that I’m a US resident. Legally, I can’t trade them. I know some of the European traders will trade CFD’s. But, my understanding is that it’s not easy to find them on the low price stocks.

Just answering that question YouTube. Anyways, CPAH, that was the first one. Second one on the scanner this morning was MTBC that we were watching. MTBC, I only made 200 bucks on it. This one, I took a red to green move, all right? I had a pre-market high here of five dollars. I was watching it out of the gates to a move back over 4.90 and then up to five. Okay, so the bell rings. It sells off. I then get in for a red to green move. I buy it for a five. It pops up to five. That’s $0.15. I sell three-quarters of my position or something like that, and then sell the rest as it comes back down. MTBC in at 88. Selling half or three-quarters at 98. Then, selling the rest as it came back down for a small loss. 4.70. Not a big winner on MTBC. Red to green move.

The biggest risk with red to green moves is that the fact that it’s gone red already shows it’s weakness. It’s just a little bit hard to trust that it’s going to really hold. However, people who short initially right out of the gate, sometimes if it does whip up fast enough, those people will get squeezed out. It will start to take off and make a move higher. That was that one.

Then, MTSL, this was kind of a bummer. I was pretty aggressive on this one. You can see here all of a sudden it squeezes up. It breaks over $3.00 up to a high of 3.40 and then it drops. On this one, I thought that it was going to get halted. I was being aggressive. I was taking some big size. I’ve got the live recording of it, which I’m going to add into our classes here. All right, hang on one second. All right. I’ll just make this full screen here. Okay, so this was the actual trade this morning on MTBC.

Okay, so someone calls out MTBC and I’m like all right, MTBC. Let me take a peek. All right. Let’s see. I’m going to pull it up on my chart probably in one second. Maybe I started this recording a little early. Where is it? Okay. Sorry. MTSL, so I pull it up. Right there, I see that it’s popped up to a high of three dollars. Okay, so right now it’s got 1.6 million shares of volume. It’s gapping up, or it’s up 4% on the day, which is a pretty big move. All right, so now I’ matching and I’m like okay, if it breaks over 3.10 or looks like it’s going to, that’s where I’m going to start to get aggressive. I see it popping up there. Okay, buyer’s going through at three. We’re watching this stock here in the top corner.

All right, and there we go. See how that pops up there just like that? I’m just going to bring this down so I can draw. This is the chart that we’re looking at. Again, this is a stock where I cannot use any leverage. It has 100% cash requirement, so I’ve got $100,000 in my account. It’s not going to be an issue, but I can’t use any of my margin. Okay, so let’s just rewind that for a second. I’m watching this right around the three dollar spot. It pops up to a high of about 3.10. Then, we see the 16,000 share bid. We know when we see 16,000 share bids like that that that’s a sign of strength. I’m looking for the green. I’m seeing the green here on the time in sales. Even though I’ve got the chart up, what I’m really watching in this case, I’m watching the time in sales, because I already know that I want to be a buyer around 3.10 if I start to see momentum come in.

Here’s the momentum coming in. Boom. I punch the order to buy twice at 3.07. Still more buyers coming in, which is good. Now we hear 3.10. Boom. 3.18. By the way, that’s a train behind me. 3.18, more buyers, okay so looking good. Now, I’ve got 7,500 shares. I added more at 20. What I do on these is I add as it’s going higher, typically, all right? Now, 24 on the ask. It’s looking good. I’ve now added another 2,500 shares so now I have 10,000 shares at 3.14. I put the order for 5,000 shares. Now I’m ready to add. I’m thinking it’s going to go into a halt. I press the buy button to add. My order’s at 3.41 right here. As soon as I confirm it right here, that 5,000 share order’s going to go live. It’ll fill anything below 3.41. I’ve already got 10,000 shares and I’m now ready to add.

But, look guys, I’m already up $7,000 on the day. I can afford to take a little risk on this trade. It’s now up 54% and it’s moving. This is a stock that I know has the potential to keep going, all right? I’ve got my hand ready on the buy button and boom, I press it. We pop up to 38 and now I’m like okay. This is where I start to take a little profit, up around 29 and 27. I’m like all right. I wanted to get in there. I added at 30. I added at 24. Then, I immediately, almost immediately was able to scalp the break over 24 for $0.13 and sell 2,700 shares. 2,700 shares of that 5,000 shares that I bought I’m unable to sell on the other side of 24. I try to sell a little bit more. I don’t get filled. Then, check this out.

It’s going to go into, I sell a little bit. Then, it looks like now as it squeezes back up to 38, I’m ready to add back. Okay, so now we’re seeing it pops up. It pulls back for a second. It holds. Then, as it goes higher, that’s where I add back. Now, I’m getting ready to add back. Boom. I punch it and now this looks like it’s going to get halted. Okay? This is that distinctive look. I press the buy button again. All right? It looked like it was going to get halted there. Then, it keeps trading. Okay, so we’ve seen this happen on a number of different occasions and two things result, two different things can result from when this happens. This looks like it’s about to get halted. What we know about these stocks, when they’re trading outside their volatility bands is that they have to stay outside the bands for I think it’s 10 seconds. If they stay outside those bands for 10 seconds, the stock will get halted. No trading is allowed for a minimum of five minutes. It allows traders to slow down, catch their breath, think for a minute, and then maybe continue trading, whatever.

Typically when stocks halt going up, the open higher, which is why I like to buy as I see it about to get halted. Here, you can see that it looks like it’s about to get halted so I put the order out to add. All right? I put the order to add. Then, you see it keeps trading and right here, boom. A couple sell orders go through at 31. What that tells me is that right before the halt, there was a slight imbalance to the sell side, where some people decide to, I don’t know, sell or take profit going into the halt. We dropped it back below inside those volatility bands. Now, one of two things will happen. Either buyers see the strength and they’re like okay, who cares? It pulled back for a second. This gives me a chance to get in now and they start buying at 40, 45, 48, 50. It breaks over the half dollar, and then it does get halted. That’s option number one.

Option number two is that now it scares away the people who bought right at 38 and 40, like me, and we stop out, short sellers see the weakness and it drops back down. All right? That’s what ends up happening in this case. It flashes to 31, 26, 25, 22, and now I’m break even on 10,000 shares, right? All the sudden this is not looking as good as I thought. I give it a second. I give it the opportunity to pop back up. Now, it’s down to 12. Now, I’m down a thousand bucks. Right? Now, I’ve given back the profit that I had. I’ve got to start piecing out of this trade.

I start putting my shares to try to get out, piece out slowly. I certainly don’t want to see it break below three dollars, because then I’d be down $2,000 on the stock, right? This is a little bit of a false breakout, which is certainly kind of the last thing we want to see. But, it’s not uncommon, all right? We see the dip down. Then, it’s going to surge back up enough for me to get out and minimize my loss on it. In total, I’m actually up $940 on this stock. I did pretty well on it. But, it was a little choppy there right around that 3.30 spot. It then comes back up here, breaks over that level, and I’m scalping the break up to a high of 360. In total, made some money on it. Would have done better if it had gotten halted there and then opened higher. But, it’s kind of the luck of the draw. Sometimes it ends up halting and moving higher, and sometimes it ends up just kind of being a little sluggish there.

Anyways, that was MTSL. MTBC, we covered. Staff, this one hit the scanners. I jumped in for a quick little scalp, only made 100 bucks. You can see it went from 2.60 up to a high of 3.55. Pretty big move there. It’s up 33% on the day. All the stocks I’ve traded today are still green on the day, which is great, good strength. CPAH was just close to five dollars again. This one’s still looking good. July is, right now, a really hot month. It’s great. Last year in, let’s see, where is it? Last year in June and July, I really only made about $8,000, 10,000. I’m doing a lot better this year here in July. I’m hoping that that momentum just continues through August. I can just kind of be in a really good spot to keep this momentum going. Right now, sitting at just under $360,000 of profit on the year. That’s pretty crazy.

Remember, last week we were talking about the orthodontist who has over one million dollars in student loan debt and is making now $250,000 a year. $250,000 a year working a year. He’s working, what, at least eight hours a day. Orthodontists are working with kids. They’re probably crying a lot. They’ve got so many germs.

He’s probably sick all the time and dealing with the braces. I can’t imagine it’s a fun job. Maybe he loves it. I don’t know. I can’t imagine it’s fun. He’s working eight hours a day, 40 hours a week, all year long to make $250,000. That’s only to try to pay off a one million dollar student loan debt. Now, for me, the cost of learning how to trade, it took me $895,000 in losers. That was a lot of money to lose.

But, that’s my accumulative losses. I lost $895,000. Those were all my losers added up. All my winners added up were, whatever, $790,000. I was down about $100,000. A total of 100K. But, the reality is for me that was my cost of tuition. That was what it cost me to learn this strategy that I now trade today and teach you guys every single day. What’s awesome is that now me and all of you guys who have learned it, we have this skill that we have for the rest of our lives. When you think about retirement, how much money do I need to save for retirement, right? People use the rule of 4%. If you’ve got a million dollars in the bank, you can take out 4% a year, potentially for the rest of your life, because if it’s invested in mutual funds, it should grow at an average of 8%.

That 4% is $40,000 a year, right? The day you retire, you’re no longer making money. You’re living off your savings. The cool thing about trading is that you can do this. For me, it’s about an hour a day, an hour and a half a day. The $350,000 a year, now let’s just be conservative. Let’s say I’m only making $250,000 a year. Divided by four x 100. That would be the equivalent, $250,000 a year, that would be the equivalent of having 6.2 million dollars.

There’s the math. 6.2 million dollars in a bank account, right? Now, I’m just being conservative. That’s what’s really cool is this isn’t passive income. You still have to work for it, but you’re only working an hour a day, maybe two hours a day. It’s one of those things that you can do this in retirement. You can be doing this living on the beach in Hawaii or wherever you want. That’s what’s really awesome about trading.

Here we are, another good day. Just to answer your question. He said I thought you were up 600,000. I started my account with $583,000, all right? Sorry, $583. $583 in January of 2017. Today, about 18 months later, I’m at $694,000 in total profit. That’s over the course of 18 months. Today, right now, I’m sitting up $358,000 on the year. 358,000 was from this year. 335,000 was from last year. My goal this year is that I finish with $665,000, because 665 + the 335 is one million dollars in two years, all right? That’s my goal. Yeah, so that’s the math on that.

Yeah, just kind of going back to that thought about retirement planning and all that stuff, because we get a lot of people who come into the community that are like okay. I’m working a 9-5 job for the last 40 years. I want to retire, but I haven’t save a lot of money. I need to find something that I can do in retirement that will make me money and is better than working 40 hours a week, ’cause that’s not retirement if you’re still working that much.

Real estate, a lot of people like real estate. But, the reality is you need money in order to invest in the real estate market in most cases. I know there’s some stuff online. You can invest in real estate with zero money down, blah, blah, blah, blah. That may be true in certain instances, but the reality is I’m up here in the Berkshires, the real estate market up here is not strong. It’s just not.

People aren’t buying and flipping houses. Real estate doesn’t turn over the way it does in some of these places with these TV shows that you see. This isn’t LA. This isn’t New York City. Most of you guys are in somewhat rural areas where you can’t just buy and flip houses. If you do, the profit margins are smaller, which means you need to be doing the work, right? You need to be doing the construction. You figure that plus the broker fees and everything else. It’s not something that’s passive at all. It takes a lot of work and effort to do it. That’s the thing I love about trading. My overhead is a laptop and internet connection and a little bit of green tea everyday. Green tea/black tea and that’s it. All right? That, to me, is living the dream. You could do this from anywhere in the world. All right? Yeah, a couple monitors.

Anyways, a little bit of a tangent there, but another green day. Feeling good. I’ll be back at it first thing tomorrow morning. Hopefully, we can finish up this week with some more winners. I’m sitting up right now about, let’s see, 7,500 on Monday. 8,000 today, so 15,000 + 4,000 yesterday. $19,000 on the week. Not bad. Yeah. I have two houses that I’m selling right now. I’ve got my house, one of my houses I’ve already sold, the one up on Vermont. I’m trying to sell the other one. Yeah, it’s been a pain. I’ve had rental properties and all of the sudden, guess what?

I’ve got to replace the boiler and that’s $8,000 out of my pocket. I’ve got to replace the roof. That’s $15,000 out of my pocket. I’ve got to repaint. That’s $8,000. Every time something like that comes up, I’m scratching my head thinking I’m not getting the math here, because guess what?

I owned one of them for eight years and I sold it for less than I bought it for. Bought it in 2010, sold it this year for less than I bought it for. You know, where’s the investment there? That’s the thing that I just am not fully buying into, that that real estate method works in every place. That’s in rural Vermont. Rural Vermont’s, it’s not a hot bed for real estate. If you’re in a place like New York City or something like that, I’m sure you could do pretty well. But, for me, I didn’t do well on it. I don’t know. But, anyways, that’s it for me. We’ll be back at it first thing tomorrow morning. 9, 9:15, pre-market analysis. I will see you guys bright and early. All right, see you all in the 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 anytime I get live or upload new videos. Until then, happy surfing!