Warrior Trading Blog

Break Even Day +$47 on $CANF | Ross’ Trade Recap


What’s up, everyone? Here we are first day of August, brand new month. Well, only $47 of profit for me today. Hey, at least it’s not a big red day and that’s probably something to be grateful for. It’s not a big green day. This is just a break even day. That’s what I’m going to call it. This week has been basically a break even week. Up 500 Monday, down 500 Tuesday, up 600 Wednesday, up 47 today. Man, what’s in store for us tomorrow, Friday? I don’t know. Maybe I shouldn’t even trade. Maybe I should just … I’ll watch the market and see what’s moving, but I don’t know. It’s not looking good.

This is something I noticed sometimes when my daily PNLs are getting smaller and smaller and smaller and smaller, kind of coming down here in consolidation. That can be where I get a big red day, because obviously the last few days have been very slow, so this wouldn’t be a good time for me to be aggressive. And sometimes getting a little impatient or a little bored you kind of you drop your guard. You end up taking a totally risky trade or take a trade with too much size, and then just like that you’re down three, four grand. And then in a market like this, it’s going to take a while to get out of that hole.

So what I really want to do is just keep it calm, cool, collected, not be super aggressive. Try to finish up the week tomorrow with hey, another $47? I’ll take it. That’d be fine. Maybe 500, maybe more, or maybe nothing. Just anything, anything other than a big, red day will be a great way to finish this week.

So August 1st. Tomorrow’s the second, and then next week, first full week of August, we’ll see what we can do. Hopefully action starts to pick up, and I really think this is going to be a month of small base hits with the occasional double or triple or maybe we get one home run this month. I just got to make sure if we do get it that that one great trade isn’t digging me out of the hole of a few losses that were sloppy and totally unnecessary. A month to really be disciplined. So that’s the goal. All right, see you guys first thing tomorrow morning.

All right, everyone. We’ll do our midday market recap here. Go over the trades from this morning. Well, only one trade, CANF. A Very slow morning for small cap traders. There were some more opportunity on large caps and higher priced stocks. MYGN with news out, making move from 30 up to 42. Of course, by the time I saw it, it was right here and I thought this was going to be a short.

To me, this looked like a short. I didn’t take the short, but I was looking at it thinking this looks like it’s going to fail. So I was watching the first candle to go red, and then finally you got it right here. It pulled back for a second, but it held that level even though it was way above the VWAP, way above the moving average, and then ripped through the highs up to 40 and then up to 41. Pulls back again here and now right now we’re in this sideways consolidation. It kind of dropped the low here. It looked like it was going to fail. Broke the high here. Looked like it was going to rip. Just for me, I just told myself, “You know what? It’s the first day of the new month. The last thing you want to do is start taking an unnecessary risk.”

If I had a cushion on the day, maybe I’d take a couple of hundred shares. I don’t have a cushion on the day. I made $47 on CANF. Didn’t trade anything else, so if I traded it and I won, I’d be like, “All right. Well, that was good.” If I had lost, I would have been so frustrated with myself for taking unnecessary risk on a stock far outside my typical wheelhouse. So strengthen that muscle of discipline. Watched it but didn’t trade it.

ENPH, similar. A Higher priced stock moving nicely, but no trades. WLL. This is Whiting Petroleum Company. I saw a nice sell off here. A little bit of a bear flag at this spot here for a short below 73. Didn’t want to, again, mess around with that. Would it have worked? Yeah, I guess so, but really nothing easy.

CANF. This was a red to green move that I took. We had a gap on it with news. I got in here after the first candle to make a new high. I actually bought it at 32, so I got in just a little higher, and then I added 3000 shares at 45 thinking it was going to break over the half dollar and it was going to come up and double top, at least double top, against the pre-market high of 360. The target was 360. So it hit 345. I added 3000 shares, and then it dropped. I actually could have made maybe $400 on the trade, but I added, gave back that profit, and cut it with only $47 on the name. So a very slow start.

This is probably one of the slowest screen days I’ve had in months. For me, it’s very unusual to have a day where I’m up or down less than a $100. I can look back here. There was no day in July that was that small. Nothing in June. Everything in June was big. It doesn’t look like anything in May. So as I go back here, I’d have to really go back a long ways to see anything this small. So this is just a day where we didn’t see a lot of action, and it’s been this way this whole week. 500 on Monday, lost 500 on Tuesday, made 600 yesterday, up 47 today. This is basically going to just be a very slow, boring week.

But that’s okay. That certainly is better than taking out the frustration on the market, doing something stupid, and putting myself into a situation where I take a short on … Oh, what was this? … MYGN. Just imagine. I could have taken a short of a thousand shares here and lost three, 4,000 bucks. And then I’d be thinking, “What the heck is the matter with me?” Out of my boredom, I took a very stupid, unnecessary trade, so didn’t do that. I’m glad that I stuck with my strategy and live to trade another day. It’s a slow day. Whatever. Be back at it tomorrow.

So pretty much it for me, there’s really nothing else to go over. Capital preservation. That right now is what it’s all about. When we see good opportunities, I’ll step up to the plate. When I see something that’s within my parameter, I’ll swing for it. I’ll take a stab. Mostly going to be trying to hit base hits here in August, but CANF on the red to green move was the only one that looked good. Jumped in with about 6,000 shares or 5,000. I got a partial fill right down here. Added 3000 once I was already up 15 cents. Looking for the break over the high, so my new cost basis was about 35. 9,000 shares. A little bigger than I thought, but because I was sort of planning on staying at about 6,000 shares, but I was like, “You know what? This does look good,” and this is the problem. Even things that look good are going to fail, because it’s slow summer trading. But even if I had only had 6,000 shares, I would probably only be up 37 die.

If I had taken and traded it the same way, just with smaller size, taking my position and then adding for the break over the highs. So anyways, I lost my internet connection a couple of times today as well, which I’m not sure what that’s about, but probably best just to take that cue from the market, lock it up, and live to trade another day. I’ll be back at it first thing tomorrow morning, Friday. We’ll finish up the week hopefully with something in the way of action and try to make a little money. All right. See you guys tomorrow.

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