Warrior Trading Blog

Case of The Mondays -$5K | Ross’ Trade Recap


What’s up everyone? All right, well, second week in a row, case of the Mondays, red Monday, red start to the week. It’s never fun to start the week with a red day and now know that I’ve got to work the rest of the week first just to get myself back to break even and then to start thinking about my weekly goals. But did it last week, despite losing $10,000 on Monday, I still finished the week up over $20,000 which was awesome. Now today I’m down five grand, actually was down a little closer to 11 grand and I was able to dig my way out of the hole. We’ll finish down about 5,000, 5,500. Not great, but not bad either. That’s definitely not within easy digging out territory. I can easily get myself out of a $5,000 red day with one decent day tomorrow.

So really my focus has to be A quality setups, be aggressive when the timing is right, but if things are looking choppy, if I’m seeing stocks with big spreads, I got to ease up. The big one today that got me was CTRV. Of course I made over 10,000 on it last week, but this week, where I got in was just not quite right, didn’t have the momentum and when you’re trading a 15, $16 stock, it doesn’t take much to lose a dollar per share and that’s exactly what happened so it just drops down, down over a dollar a share with 6,000 shares. Get stopped out with slippage and boom, just like that, made me down to 7,500 bucks. So we’ll go over it during the midday recap. As usual, any questions, any comments, leave below and I’ll see you guys first thing tomorrow morning.

All right everyone. So we’re going to do our midday market recap here, go over the trades from this morning. Today, not he easiest day. Unfortunately, CTRV, even though it was gapping up about 70% pre-market, the bell rang and it just didn’t hold these levels at all. Really pretty disappointing. It popped up here to a high of 16.49 and in that same one-minute candle or five-minute candle, had a low 13.65, so a huge amount of range. As has been the case with this price range, it’s either big green or big red. It’s not a lot in between. Now VISL, this was a bounce back trade, made a little bit here off the lows, which was great. But CTRV I took, this was my second trade on it. My second trade was also a loser. My first trade was a $7,800 loser.

So I’m down 10 grand on CTRV today and it puts me down between the two accounts about 5,000 on the day, right almost exactly 5,000 on the day, which is disappointing. It’s the second red day Monday. I was red last Monday as well. I was down 10,000 last Monday. Last Tuesday I made 21,000. Today doesn’t actually feel as bad as last Monday because last Monday I was up $8,000 before things turned around. Today I never went green. I mean today, my first trade on CTRV, I lost a dollar per, more than a dollar per share. I took 6,000 shares and it popped up here. Where was this? I think it was right here. Where I got in, actually I sort of got in a little early, anticipating a red to green move over at 15. It broke 15, it hit a high of 15.60, 15.70.

Up 70 cents per share from the red to green set up and then it flushed down, broke below 14. I stopped out, got slippage, down $7,800 and then it rips back up right here and I got back in right here for the one-minute micro pullback for the break over high of day. Actually was up $1,100 and then it flushed down and I sold the rest down and was red by 2,600 bucks. So I was below the $2,000 max loss in this account and I was below it in this account. So today I increased my max loss to minus 5,000 because I felt like I don’t want to be done trading at 9:37. I know there’s still opportunity. I need to sit tight. I need to just go easy for a little bit. So I sat tight and pretty much I have the limit increased to 5,000 and just, yeah, I really just sat tight for awhile.

Then all of a sudden at, what time was this, it’s like 10:15, VISL pops up as you can see here on the scanner, pops up to … First hits a $1.81, hits again and $1.88 and $2 and got halted. This had breaking news at 10:10 AM. So at 10:10 breaking news, it squeezed up, gets halted too. It resumes higher. Dips down here for a second, I jump in. It squeezes up here, halt a second time. Coming out of the second halt, I actually added at 3.10. It hits a high of 3.21 and then drops down. This was disappointing. It halts going down. But it bounces right off those lows. It comes back up and I actually added right here and right here and then I added again right here and then my best exit was 3.55. High of day was 3.57.

So this was kind of a little bit of a sloppy trade because I was holding. I was still holding some of my position on the drop going down. I was able to sell between 2.80 and $3 most of my position and my cost basis was 2.70. So I was telling most of my position for only like 20 cents of profit, but then I was holding a small piece into the halt going down thinking, “Well, probably just going to take a loss on that. That’s disappointing.” But it resumes from the halt, dips and then rips up, almost looked like it was going to get halted going up and that’s where I was like, “You know what? I think this is going to work.” First five-minute candle to make a new high right here at 65 and that’s where I got back in or added back my size right there for the break over 65. Got a move up to 80, a little pull back there, a little pull back there, a little pullback here and then squeezed all the way up to 3.57.

So nice bounce there. Then right here, consolidation and this was the moment that I knew it was over. It did a false breakout right here, dropped back down and if it held that level then we might’ve had a chance at retesting high of day, 3.74, the daily high on this candle and then 4.48, the 200 moving average. Those were the back of mind targets. But unfortunately as it broke this level here, it’s now dipped down quite a bit.

So all in all, not the best start to the week. I made 5,000 on Friday. I’m giving it back here this morning, but I was down 10 grand and I was able to bounce off those lows a little bit and I was able to cut the loss in half, which is good and that’s one of the things that I’ll sometimes do when I’m having a bad day. Rather than trying to say, “I’m down 10,000. That means I’ve got to make 12,000 or $13,000 to get to my daily goal.” I’ll just say, “You know what? Can I cut the loss in half? Can I cut it? Can I cut a quarter off of it? Can I cut $1,000 off of it?” On a good trade that meets my strategy, doesn’t have a lot of risk and I feel good about. Now of course, the biggest challenge is that I don’t want to continue to go red and when I switched to this account and took this next trade on CTRV and continued to go red, that’s when I was pretty much like, “Okay, well CTRV is not a stock I can continue to trade. That one I’m done with and I need to focus on something else because it’s just … It’s difficult for me.”

If I look back at last week, in total, CTRV, I guess I made 5,000 on it on Wednesday. I made 3,700 on it on Friday. The week before, $10,000 on it. So I’ve gotten some good money out of CTRV. But sometimes when you overstay your welcome on these stocks you can get into trouble. I guess, I knew that it had a little bit more risk. What made it have more risk was the fact that pre-market, it already dropped down quite a bit here. This pre-market kind of pivot at 17.29 was the level I was watching and I maybe should’ve just waited for that to break and then retest high of day because the fact that we were opening at like 15.80, that was $4 a share off the highest of 19. So that was down quite a bit. It was right at the VWAP. A little riskier. Not picture perfect. I mean, not bad but not picture perfect.

Maybe I was a little too aggressive on my share size, but of course having done so well on this exact stock and on several other stocks in this price range, I think it was okay that I took a little bit more risk. I’m also in a place on the month where I can afford to take more risks. I’ve already hit my monthly profit target. Well, this morning before today I was up about 50, a little over 50,000 on the month. Now I’m up 45 so I’m still $5,000 above my June goal of 40 grand. I can afford to take a little bit of risk and today maybe I took it on the wrong trade, but maybe tomorrow, well, I’ll take it on the right trade and I’ll end up having a nice 12, 15 or $20,000 green day. Well, maybe it won’t be tomorrow. Maybe it will be later in the week or next week. But it’s kind of one of those things, if you keep being aggressive as long as you’re sticking to your strategy, eventually you will get that one trade that just connects. It really opens up and gives you that awesome winner.

So some of you guys got it today. Actually most of you guys did really well on CTRV. Probably because you took the profit when you were up 70 cents per share while I was thinking about adding for the break of 16 and a move up to 17.29. I was being way too aggressive in my mind of what the stock had the potential to do. On VISL, I was more kind of typical trading, taking profits as I had them, not swinging for the fences as much. I think that that was the right move on that one, given the fact that I was already red on the day, I had to be a little more quick on scalping and as a result, I took a lot of trades on VISL, getting in, getting out, getting in, getting out. But all’s well that ends well.

So a little progress in the IRA today, a little setback in the main account, but overall this is just one of those days that will be neither the best day of the month, the worst day of the month. It’s just an in-between day and I’ll be back at it first thing tomorrow. I’ll bring the max loss back down to $2,000 tomorrow. Today was a rare exception where I increased it. I don’t usually max out both accounts in one day and this is actually I think the only like … Well no, I’ve maxed out both accounts in one day before, but I’ve never maxed them out and then kept trading but being only $600 above the max loss so early in the day, this is one of those things where if I had taken off the max loss and then lost another couple thousand dollars, I would have been really disappointed in myself.

But today I lifted that restriction and was able to prove that I can trade well even when I am down, maybe even as much as $10,000. Of course having the lost split between two accounts makes it easier to bear because you’re not staring at one huge red number. This one I wasn’t even looking at. This one was … $2,600 for me is not really that big of a deal in terms of a red trade. So I was able to really focus on VISL and yeah, but not the cleanest day. Hopefully tomorrow is a little bit better. Monday last week was pretty bad as well. Monday this week, not great. Maybe Monday next week I can be a little bit more disciplined.

All right everyone. So a little bit of a choppy start to the week but be back at it first thing tomorrow. Hopefully we do have some good opportunities on the scans and, hey, you know what, today, if I had just traded off the high of day [inaudible 00:13:33] scanner, VISL would have been the only trade. I’d be up five grand. So got to be careful chasing those gappers. Sometimes, even though this was the obvious one, when they’ve got a little bit of that selling pressure and they’ve got a history of gapping and fading, I should’ve maybe been a little bit more conservative. So any case those of you guys that are green, good job. Everyone else, I’ll see you back at it tomorrow morning, 9:15 pre-market analysis and yeah, study up. 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.