Warrior Trading Blog

Biggest Green Day in Two Months! +$5K | Ross’ Trade Recap

biggest green

What’s up everyone? All right, so finishing the day up $5,119. That is the biggest green day I’ve had in two months. A $5,000 green day, well, six months ago I wouldn’t have been patting myself on the back for that, but right now I’m going to give myself a pat on the back because that is really awesome.

 

In today’s midday market recap, I’m going to break down for you guys some of my high level stats for the month of September, broker statements are all uploaded to the website and what you’re going to see is that in the month of September, my biggest winner, 2,000 bucks. I mean, I just didn’t hit any home runs. I stepped into the plate a coupole of times but I just didn’t connect. The good news is my biggest loser was only $950, which is actually kind of ridiculous that it was below a thousand.

Of course today I already had a loser. Well, let’s see. I was up 160 on LEVB and now I’m down 1000 on it. So I lost $1,160. So now I’ve already got a loser above a thousand this month. But at the end of the day it doesn’t really matter as long as I’ve got the winners to overcome and last month I didn’t, but this month I’ve already gotten one nice one. So as of right now I’m up about almost 6,000, $5,800 or so on the month and I’m starting to feel like the wind is going to be at my back with one solid trade or a couple of solid trades, it can totally change your perspective on the month. So now feeling like, “All right, I’m in the driver’s seat. I can maybe take a little bit more risk.” If I see something that looks really good or maybe I don’t have to force it if I’m not feeling it because I’ve got a little bit of a profit cushion. It can really change the way you trade, make you more focused, and that can be the beginning of a really strong month.

So, knock on wood and fingers crossed, hopefully October become something that I can feel really good about. All right, so that’s it. Enjoy the recap. Any questions, any comments, leave them below. I’ll come back through an answer them later today. All right, I’ll see you guys tomorrow.

All right everyone. So we’re going to do our midday market recap. We’ll go over the trades from this morning. I’m finishing the day in pretty good shape. I’m impressed. I wasn’t expecting to have such a big green day today, but I’ll drag up the PnL here for those of you guys in chat. Finishing the morning up $5,119, which is awesome. That is a nice cushion now on the month of October. Today is the 178th trading day of the year, day 178. Plus $5,119.39. Putting it in the calendar, making it official, that means no more trades for the rest of the day today. Total today, I took two trades on VTVT. Both were winners. I took one trade on CTXR, one winter. One trade on SEED, one winter. Two trades on LEVB, one winner and one loser. So I’m green today on a five out of six trades and I have one loser that is a little bit disappointing. But whatever. I mean, I can’t complain about $5,000 on the day. So a green day for sure in less than an hour of day trading.

So day trading from 9:30 until the last trade, closed up at 10:20. So 50 minutes of trading and my work is done. So you can see the PnL right there. Let’s see. I’ll pull up my charts here. Let me close these ones down. I’ll go over, I’ll kind of break it down how I found these four stocks today. Today was no different from any other day. I mean, really it wasn’t any different, in terms of coming in and doing the right thing, following the rules, how I find the stocks to trade. Today, we just had better follow through. So I updated, before we get into those trades, a couple updates, number one, I updated my broker statements on the website for the month of September. So if you go to warriortrading.com, let’s see, let me just pull this up here. So warrior trading.com. I’m going to scroll down to the bottom. [inaudible 00:04:39]. Verified earnings of broker statements 2018, sitting at $372,000 of profit on the year right here, which is great.

I’ve already beat 2017. You see total profit. They’re 707,000. So if I go down to the bottom here, I’ll get down to the month of September and you’ll see kind of high level of how the month looked. Only $8,599. Not a very impressive month, obviously. Some months are going to be better than others. But what’s interesting here, average winners, only $500, average losers, 350. Great job, pat on my back for keeping those average losers so small, only had two red days. Biggest loss in the entire month, $964, not even down more than a thousand bucks. So I mean, that’s awesome. Already today I had a loser more than a thousand bucks. So that’s pretty good. But largest gain, only $2,000.

So my accuracy, 65%, that’s a little below average, but not bad. The real problem here was that I didn’t have any really big winners and that’s what I need. So, just today I finally had one really big winner. You can see my daily PnL through the month, two red days. The rest green. Took five days off, went on vacation. Very rare that I do that, but that that costs me a little bit on the month, but whatever. You got to take time out to enjoy life. No trades in the IRA account in September. Just, really, I don’t know, I just wasn’t feeling it. I don’t know what this $8.82 is but, interest, I don’t know. I have no idea. But I just didn’t see any really good quality setups that made me want to take trades in the IRA and that was probably the right decision. It’s better to kind of sit tight on that account because I can’t add more. If I do have a big loss I can’t put more in.

So today having a $5,000 day is awesome. This is the biggest day I’ve had since August. So it’s been a while since I had a big green day. So how did I find the winners today? Those of you who have gone through the Warrior starter class or the Warrior pro class, those of you who have been here for awhile, you’ll know the process every single day is the same. It starts by looking at the gap scanners. All right? So this scan right here is going to show me all the stocks in the entire market that are going to open higher than they closed yesterday. The only reason the stock opens higher than it closes yesterday is because there’s some type of catalyst driving it.

A catalyst can be breaking news. It can also be a technical breakout, if some big investor or trader thinks that the stock looks good, takes a big position. That order by itself could potentially move the stock up a little bit so you can have technical breakout. So those aren’t uncommon. But we generally like to look for news. So the leading gapper this morning, DTEA, name of the company over here, basically don’t even need to look at that because we trade the ticker, not the company. We look at the technicals, not the fundamentals. Having said that, I will leave this open because there may be a couple things that are relevant. Simply because the name of the company can indicate its sector, bio-sciences, bio-sciences, these are biotech stocks, recycling energy, right? That can sometimes be helpful when certain sectors are hot.

So DTEA, a premarket. We have this pre market price action. So you can see that some traders have already started trading premarket. Most traders won’t, just because you can’t take a lot of size, there’s not a lot of volume. The risk is high, the reward is kind of minimal. So most traders don’t trade premarket. But we can look at the premarket chart and that will help us base our entry when the bell rings at 9:30. So the premarket chart on this stock is already kind of going down. That’s my problem with it. So the bell rings, it pops up for a moment, it continues going down. So I had it on the watch list. If it could break basically this downside channel to the upside, but it couldn’t do it. So no trades on that one.

OGEN, well, here’s the thing. Before the bell even rang, it had 4 million shares of volume. This stock had a lot of volume, so much so that I felt like if I got in it when the bell rang, I’m really almost … I’m missing the bulk of the … I feel like I’m kind of just I’m the last one to the party, the is really crowded. There’s already some fights breaking out, tug a war and I’m coming in at 11:30 or 1 in the morning. I feel like I kind of missed the action. Now, as it turns out, yes, it’s been pretty crowded. 38 million shares of volume, but despite that it has made an 80 … It’s up 85% today. So on this one, whatever. I’m the guy who didn’t trade a stock that’s up 85%. I felt like it was too crowded.

One of my sort of strategic advantages as a trader is being really good at tape reading and tape reading is when you’re watching all of the orders go through. So I’ll move this over here for instance. What’s this? Hello? Let’s see. Drag. There we go. So this is the tape. All right, so tape reading goes hand in hand with using the level two. Actually I’m going to put this over on this side, it makes more sense. There we go. All right. So tape reading here, this is something that for me is really important. I want to be able to see all that. When I see green, it helps me read the market better. My problem here is that when a stock has 15, 20 million shares of volume, there’s so much volume that I’m no longer feeling like I can read the tape very well. There’s lots of green and red intermingled, little bursts but they don’t mean as much. So for me, I just, where I kind of have my edge with tape reading no longer becomes helpful. So in any case, I didn’t trade this one, nice moves on it, but no trades for me and I already knew premarket it would be difficult.

Next one down, ATOM, only 8,000 shares of premarket volume. That’s not a lot. Not a lot of premarket chart to work with. So no trades on that one. The bell rings, it opens lower in and sells off. So nothing on that. CLRB, next one down, $4 up 21%, 3.39 million share float. Remember, float, number of shares outstanding available to trade. When a company does its IPO, they sell shares in the market. From that day forward, you’ve got this number of shares that are available to trade, so this company has 3.39 million shares. That represents a supply. This volume and this gap represent early demand and the demand is caused by what you can see here in the newsfeed as some type of catalyst, breaking news. Unfortunately on this one, the stock made a nice move premarket, but by the time the bell was ringing it was already coming back down and this move was on pretty light volume as well. So the bell rings, it’s selling off and no trades on that one either.

Next one, down, TRPX, bio-sciences, another one, biotech industry or sector. Premarket chart, again, pops up, but then it’s opening lower. Not very good looking for me, no trades on it. I would have been interested if it got above six, but it didn’t. IGC already, 4.5 million shares premarket, so very crowded. Not very interested in this. It’s above $10, which is above my ideal price range. So, and again, on this one you can see how the tape is. Also 30 plus million shares of volume. It becomes difficult for me to read the action of the market with that. Now if you focus purely on chart patterns and you don’t use level two, that’s a little bit of a different type of trading and you can totally do that. That’s more trend based trading, but it’s not what I’m really, really good at.

So there are just so many times where I’ll get in based on a strong chart pattern and then looking at the market depth here, there’s 100,000 share seller. So if you’re not looking at it, then you’re going to buy here and it’s not going to go because there’s a big seller in the way, but then when you start looking at it, it becomes difficult to read and you talk yourself out of the trade. So that’s the struggle. Going further down the scans, really not interested in any of these all that much. Just you see a bunch of stocks on the scanners today, but nothing I was super excited about.

LEVB, this one was a continuation from yesterday. I traded it yesterday, made some money on it. Then this morning, I was watching it for a possible continuation. So the premarket high here is 750. That’s the level that I was watching. Now on this one, I have a little bit of FOMO on it because it pops up here. My first trade on it, I got in at 7 right here. It pops up to 7.04 and then it drops down to 6.80. So I stop out and I made actually 150 bucks right here on this trade. So I’m up 150. I look over and next thing you know it’s back at 7.20 and I’m about to get in. I hesitate and then it drops all the way back down to 6.70. I was like, “You know what, that’s good you hesitated, this thing is crazy.” Then all of a sudden I look over again and back up at 7.35 and I’m like, “You gotta be kidding me. What is going on with this stock?”

It pulls back here. I’m thinking about getting in and I’m like, “You know what, if faked you out once. It you faked you out twice. Maybe I’ll leave it alone,” and it pops up to 7.75 and I’m like, “All right, maybe I should get in.” Then I’m like, “No. If I get in here, I’m really getting in pretty high. Leave it alone.” So I don’t get in. On the second pullback and it goes up to 8 and then it doesn’t micro pullback here and finally FOMO, I get in really high. I have this fear of missing out. I’m like, “All right, I’m just going to jump in here at 8.24.” It pops up to 8.50. I’m up, whatever, 25 cents and then it flushes all the way down here to 7.66 and I get stopped out and I lose a thousand bucks or $1,150. So that was kind of annoying.

I had sort of this idea of what it was going to do. It didn’t work out there. It did this drop. It popped back up. I was a little nervous about getting in here. It was just whipping around. Then I don’t get in here because again, I’m like, “Geez, I don’t know it’s extended,” and then I finally get in, it was taking off, volumes increasing. I’m thinking maybe it’s going to go into a circuit breaker halt 8.50, $9 and it just ended up getting in a little high. So that’s a little bit of a bummer, but that’s the way it goes sometimes. All right. So, took a little bit of a loss on that one. But by that time of the day I was already green so I never went … I wasn’t red on the day. I went from being, at that point before that loss I was up 1,700 bucks and after that loss I was up only about 500.

Okay. So I gave back about half of my daily gains and that’s the spot where I was asking myself, “Should I even take another trade or just walk away happy with $500?” and I’ll show you what I ended up trading. So anyways, first trade was 150 bucks on LEVB. Next trade was, let’s see, let me just go down here, so first trade of the day … Sorry, first trade of the day was CTXR. So CTXR, this was kind of an interesting one. I got aggressive on it because this thing was taking off. I was impressed. We don’t usually see something move as quickly as this. It pops up on the scan at $1.85 and initially I’m like, “Well, I’m not sure about it. Really, I didn’t see any news. The headline posted here was at 10:30.” So I looked at it just really not being sure that there was going to be anything there to trade.

Well, next thing you know it pops up to $1.90. It flashes down to 1.70, back up to 2 and then it’s taking off. So I’m like, “Okay, I’ll take a starter at 2.” It breaks and it squeezes up to 2.08, I’m like, “I’ll add more at 2.08.” Goes up to 2.15, 2.17. I add more at 2.17. Now I’m like, “Wow, this thing is going crazy.” So now I’ve got 9,000 shares. It goes up to 2.25, 2.30, 2.40, 2.50 and I’m just like, “Wow, this looks like it’s going to get halted.” I wasn’t expecting it but now I’m thinking 2.80 is my first target so I add another 3000 shares at 2.50, 12,000 shares. Average is right around 2.20, 2.17. So it pops all the way up here to 2.52. I literally buy it at high of day. I’m thinking it’s gonna get halted and go higher. On this one, I top ticked it on the 52 entry. However, remember, I had a really good cost basis and then look at this, it comes all the way back down to a $1.78. I mean, it was just kind of crazy.

It ends up squeezing back up to 2.23. I ended up getting out with about 10 cents of total profit. So from 20 to 30. I just really was surprised that it did not hold up. I mean, when something squeezes like that, I suppose as quickly as they go up, they can come back down. But usually this gets traders excited when you see a stock hitting the scanner, boom, boom, boom, boom, boom, boom, boom. More people usually jump from the sidelines and get into them and that just didn’t happen. So, this, someone said in chat that this was a newsletter alert, which of course I didn’t know at the time and that’s something that is a challenge with trading because when we see something hit the scanners, we don’t know what’s necessarily causing the move.

We don’t know if it’s breaking news. We don’t know if it’s someone who’s covering a short position, someone who’s just buying it, or if someone sent this out as an alert to a newsletter of 100,000 people and now people are just jumping in. The problem with newsletter alerts is that typically when you get that type of alert, whoever issued the alert is already been holding the stock for awhile. They might be holding it from down here, maybe they’re under the water from here. So when you get that move, what do they do? They sell. So that’s when you get a big burst of selling and it can flush right back down.

Well, the hard thing is you just … You don’t know when that’s going to be the case. So for me I jump in, it’s on the scanner, it’s got momentum, it’s taking off and sometimes they hold up and go to 50, 75, $3 and they just keep going. Other times, you end up whatever, getting stopped out, taking a small loss and that’s just the luck of the draw. You just don’t always know. So, I don’t know. Whatever the case is there. Unfortunately it wasn’t the big winner I was hoping for. But for me being in at 2.20, if this had gone to 60 and to 70 and gotten halted, what kind of winner is that? Six, $7,000 winner. This was very close to being a home run right out of the gates. Really close, but ended up being only $1,200. So, but that’s okay. That’s a good start on the day. So that was my first trade.

Second Trade, LEVB, whatever, 150 bucks there. Next trade, VTVT. All right, so VTVT, this one pops up on the scanner at $1.05. LEVB is on there. You can see this is how I find all of my trades. CRPX is on there. VTVT hits $1.05. I see it initially, I’m like, “I don’t know, it’s $1.05. It’s pretty cheap.” But then I think, “You know what, last week we did see a few stocks at this price range squeeze up and get halted several times and go higher. So maybe I’ll take a starter.” So I ended up taking a starter at $1.13 thinking first target $1.25 maybe it will get halted. So I get in at 13. I add at 22.I had more at 22, so now I’ve got 9,000 shares. It pops up to a high of 25, it tops 33 and then drops back down and so I try to unwind some of the position here, 29, 33, I’m selling a little bit.

Then I ended up, let’s see, getting back in this at 55 and doing a little bit of a scalp. It hits a high a day of 59. So, that’s a really nice move and I was in pretty early. I got a little faked out on this drop right here. You can see on that candle how it dropped down. That’s that bottom wick. I got faked out and stopped out and then it ends up running. So anyway, so that was my first trade there. Made, I think on that one, about $500 and it put me up 1,700 on the day or maybe $400. Then I ended up getting back in it for a second trade right up here as it broke over the half dollar for a scalp up to 68. So that was a second break of high a day. So two trades on that total profit, a thousand bucks, so not bad.

Then LEVBE, got back in that, stopped out, took the loss, and then we had SEED. SEED was interesting. There was a headline on this at, what was the time, 10:03, right around 10:03. News came out on this. So I see it here. It was in the chat room, news posted and initially it spikes up to 5.40 right here. This was at 10:03 when the news comes out. So initially I wasn’t that interested, I was like, “Well that’s fine, whatever, there’s news, we’ll see if it starts to go.” That’s kind of my approach. Sometimes there’s headlines coming out all day long, a lot of them don’t do anything, but sometimes they do.

So it hits the scanner 46 and then 60 and then 75 and that was right in here as it started to squeeze up. So when I saw that, I was like, “Okay, I’m going to jump in.” So I took a starter at 40. Where is it? I took a starter at 5.80. So I’m already getting filled kind of at the top of this candle here at 5.80. So I take 3000 shares as a starter. Same thing as LEVB, taking a starter, wanting to see it continue. It continues, it goes up to 90 and so I try to add more. I can tell it’s about to get halted. So now I’ve got 6,100 shares. Okay, it resumes from the halt, squeezes up. I added at a dollar at 6.44 and sell for the break of the half dollar. I’m selling at 6.49 and the rest of 6.40 as it comes back down. So right here it did this little pop up to a high of 6.59, 6.60, really a nice setup.

So I got into the little on the high side but was still able to capture $3,800, which was a nice, big win. One of the bigger wins that I’ve had recently. So I’m happy with that. Trading off the news there and getting little scalp right off the scanners. So you have to be quick on these but that was a good one. So finishing the morning up 5,119. Five winners out of six trades total. So accuracy is pretty good today. This now puts me in a good spot up around 6,000 on the month, just two days in. So now Wednesday, Thursday, Friday, as we get further into the week, now I’m going to start to feel the wind at my back a little bit. I’ve got a little bit of a profit cushion. I maybe can afford to take a little bit more risk if I do see something that looks good and that’s where I’m going to start to feel pretty confident.

All right, so that’s about it for me. I’m going to wrap it up. I’ll be doing our Warrior pro mentor session today at 3 PM. So that’s coming up this afternoon for Warrior pro students. Everyone else, I’ll see you guys first thing tomorrow morning, back here in the chat room and hopefully we’ll see a couple of good stocks on the scanner but definitely feels like momentum is picking back up which is awesome. All right, so that’s it. I’ll see you guys back in the chat room 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.