Warrior Trading Blog

Chat Room Preview and Midday Recap +$3,402.76 in 45min

chat room preview

Chat Room Preview and Midday Recap +$3,402.76 in 45min

Hey, so I’m going to give you a little sneak preview into the Warrior Trading Chatroom. It’s going to start at around 9:20, with me breaking down my pre-market watch list; the three to four stocks that I think have home run potential.

Now, as soon as the bell rings at 9:30, you’re going to see me aggressively trade my account for the first 30 minutes. By 10:00 a.m., I’m going to be up over $3000, and by 10:15, I’m going to shut it down with $3,400 of profit and the incredible thing is this is just one average day in the Warrior Trading community.

Last year, I made over $220,000. This year, I’m on track to do it again. Students in the chatroom, you’re going to see them calling out their trades and their winners, and you’re going to realize there’s a community of thousands of traders trading simple strategies. That’s what it’s about, finding one strategy.

Right now, you are one strategy away from being a consistent trader. I’m going to show you how to master one strategy, and it is the momentum strategy. All right, so enjoy this preview. I know you’re going to love it, and I hope to see you in the Warrior Trading Chatroom.

All right, good morning everyone. Let’s start breaking down our watch list here for the morning. This week, so far, has been really fantastic. We’ve had some great opportunities, as you guys have seen. Here we are, on Wednesday morning, and I’m hoping that we see something that can give us a couple of nice trades here, so we can continue this strong week. Our leading gapper is RGSE. RGSE is gaping up 47%; that’s a pretty big gap.

It’s got 1,000,000 shares of pre market volume so it’s already going to be a little on the crowded side. We are certainly not going to be among the first traders to see this stock so that’s maybe not ideal. When stock starts to get really crowded, you’re more likely to see just that tug of war, where the price action isn’t super clean. That’s the risk and we certainly saw that yesterday on ROKA and LINU, because both of those ones, once they were over 10,000,000 shares of volume it was very hard to trade them.

I would say between 500,000 shares and 5,000,000 is fine. RGSE is probably gonna cross over 10,000,000 of volume in the first hour. We have a fairly small window where we can get aggressive on and expect somewhat predictable moves. Even in pre market, you see this pre market flag on RGSE. We have the pop up to a high of 254, and then a little bit of a pullback in consolidation, now it’s popping back up. 254 is the level that we can watch or just 250, the half dollar, and we’ve still got 7 minutes to the bell so we’ll keep an eye on it around that price.

Next one down, CASI. This one, I’m not super familiar with it. I can see a nice curl on the daily from 180 up to 280 now. High is 280; 286 pre market high. The float is 51,000,000 shares with 44,000 shares of volume so it might be a little more thickly traded but I’ll put it up on another chart and we’ll keep an eye on it.

Next one down, ATHX. This one is 100,000,000 share float so I would just probably leave that one alone or a day trade. Next one down, HMNY. HMNY obviously on an incredible tare from $4.00. $2.70 up to 4, up to 6 to 8 to 10 to 15 to 20 to 27; pre market high of $34 a share. I didn’t trade it yesterday. I didn’t see easy opportunities, low risk opportunities, where I felt like it would make sense to take a trade.

Looking back on the chart yesterday, maybe that entry over $25 dollars coming into 11 was decent but, note, it pooped up to 25.50 and then dropped down to 24.81. So you would have been up 50 cents and then down 20 cents before it finally made the move and that’s more typical of the larger cap stocks. Buying those at breakout points or apex points for a quick scalp is not always the best technique.

HMNY I don’t have high hopes for it. I really don’t even plan to trade it. I’ll see how it looks. The way I would trade it is if it starts to go totally parabolic. It goes from 34 to 35, 36 up to 40. It just really squeezes and takes off. That would be maybe the only way I would be interested in trading it. If it’s chopping around in 2 point range that’s not going to be for me.

Next one down, IDXG. We’ve traded this one in the past. It’s not one I’m particularly fond of. Pre market high is $2.00. The 200 moving average is at 2.09. A little bit of resistance there, potentially. They’ll have to keep an eye out on.

WPCS, skipping down one here, yesterday’s high was 2.66. Pre market high is 2.60, so maybe continuation on that one, WPCS. Let’s see, LINU from yesterday, we can take a quick look at that. High of day yesterday was 3, no sorry, 2.60 on LINU. Consolidation around 2.18-2.20 pre market. That one maybe we can watch to see if it starts to pop up again.

CLSN, that might not be on the scanners. Might not be gaping up enough. I don’t know, but I’m not seeing it. Oh no, there it is. It’s on the scanner, 10% gap. The high is 5.24, pre market. Nice daily, room up to 6.06. Definitely, likely to see resistance at 6.06. That’s a level to be mindful of.

Going back to RGSE, it wasn’t really that easy to trade last week when we were trading it. When we were in New York City. It just really wasn’t so maybe today it will be better but I’m not sure. I’m not convinced it’s going to be a clean one.

With about 2:00 to the bell, roughly, stocks to keep an eye on, RGSE, HMNY, CLSN, and then probably the high of day moment scanner. See if something starts to pop up and look really good. Mike is watching CUDA. Somewhat higher priced stock, $23.00.

Keep an eye on that for a pop out of the gates and then a short, but I’ll focus on the small caps and we’ll see if we get an opportunity here right of the gates on either RGSE, WPCS or HMNY. We’ll see if something shapes up and looks good. CLSN, maybe over 5.16. CLSN, 5.16. Let’s move this over a little bit. All right, okay. Do 5.16, okay. I’m just getting my level 2 ready.

All right, so we’ve got about a minute to the bell. RGSE, WPCS, HMNY, CLSN, those are the ones to keep on close watch. We’ll see if LINU or maybe ROKA from yesterday shape up, but I’m not incredibly optimistic they will. All right, so, we’ve got a game plan here. We’ve got less than a minute to the bell so I’ll take a minute just to take a breath, get centered, get focused, and get prepared to take some really good trades. Okay.

Oops. Probably the first one to watch here is going to be RGSE. Pre market high is 65. Now, hold up, 42,000 share seller at 68.00. I’m going to give this a second. As soon as I see that on the level 2 I’m like well let’s see if that gets bought up. I’ve got my order ready at 68.00.

Okay, I’m long at 66 on RGSE and I’m going to double at 68.00. Okay, just doubled at 68 for the break of that level. Scaling out at 72. All out except for 369 shares. All out, $313.00. Not the biggest winner but I’ll take that small gain. High is 74. You can see the bigger sellers on this one. 30,000 shares now at 280. I don’t know, it’s tricky.

HMNY, high is 34.50. Right now the spreads are pretty big, 30 cents/40 cents. High on CASI is 340. I’m long CASI for the break of 340 for the first 5 minute [inaudible 00:12:40] to make a new high or for the first one minute [inaudible 00:12:43] to make a new high. Looking for CASI to get up to 350, C-A-S-I. Want to see this break over the half dollar. Is it going to break the half dollar? There we go. Look at that, nice. Scaling out on the ask of CASI and I will wait for the next good 1 minute pull back.

The high of that last candle was 63 on CASI so I’m going to put my order at 60 for a possible add and to move up toward 4 bucks. I’m going to let it do a 1 minute micro pullback here. Yeah, see, I’ll try to sell a little more on the ask. Sold some more at 72, which is great, it’s a good trade but it didn’t give me a chance to add because that candle didn’t close red. It just continued to go higher.

HMNY at 39 bucks, just gave us a 3 point squeeze. Still holding small size on CASI. The high is 75 now so I’m going to map high of day 75. Watch it consolidate under this level. HMNY, looking at the level 2 on it. It moves so fast. You could be up or down 50/60 cents in a heartbeat.

CLSN, I see that I want a little pullback entry on that one. High of day on CLSN is 45. Put my order at the half dollar. 30,000 shares seller on CLSN at 35. This candle has a high … I’m backing CASI for the break of 355 for the first 1 minute candle to make a new high. Now looking for that high of day move.

That’s what we look for. High of day is 75. We’re not quite at the highs but we got the first 1 minute candle to make a new high giving us good resolution there. There’s high of day, beautiful. Scaling out on the ask. Wow, nice move. First 1 minute candle to make a new high. Anticipating that by getting in over the half dollar so high is now in the 90’s. High of day 95. Looks like, there we go. Look at that, beautiful.

Sold a little more at 99, 399. 81% on the day, 84% on this one. This is a very clean 1 minute candle to make a new high. Probably the best resolution we’ve seen on this pattern in quite awhile. High of day is now 23, 423. I’ll wait for the next pullback. Still holding small size but high is 43. Oh sorry, at 423.

Got HMNY on another chart but I don’t see anything there that I feel good trading. CASI, right now, the spread is 10 cents so I’m not going to trade, I’m just going to watch it. I’m not going to add back to it. High of day is now 28. Remember, when stocks squeeze up 80% it can be a little tricky to buy the pull backs just because they’re up so much.

This one certainly exceeded my expectations. I didn’t think it would be nearly this explosive. RGSE, yeah, no follow through on that one. CLSN dipping back down. I’ve got those charts up on other monitors and just not seeing anything there worth trading.

CASI right now … See that’s the place I would be a buyer if I was willing to be really aggressive because it is a small pullback right there but, boy, it’s awfully extended. 97%-98% on the day. 44, 10,000 share seller. My average of the shares I’m holding right now is 348 so if we get 448 I’ll have one point so, maybe just for good measure, I’ll try to sell a little more there.

MTBC, be careful on that one. I say be careful because when the volume comes out of no where just can’t be certain exactly what’s going on with it. No volume, zero volume and then all of a sudden volume here.

Be careful on that.HMNY getting hit by Citron. No shares available to borrow but I’m sure people are going to try to pound this on that Citron tweet. The tweets are so well timed because when you look at this now you’ve got that long topping tail on the daily. It’s going red. It’s that perfect shooting star candle, really. If you’re short up here in the 35, 36 level.

High of day on CASI is 44. Breaking below 3 bucks. WPCS Loci, no, I don’t think so because that second five minute candle is just such a big red doji. I really don’t like that shape. Wait on the pullback on AMMA. Yeah, I mean I’m still holding a small size. I’m already locked up over $3000 on CASI so we’ll see if it goes back to the highs.

I’m just holding because I may get back in if it gives us a good setup.When you get to the point where you’re up so much that holding a little bit doesn’t even matter, you’re really in the driver’s sit. If I have my stop at breakeven, my stop is at 348. I’m totally in the driver’s set on this, but we’ll let it flag out here. See what it does.

High on AMMA was 38. Kind of a slightly large spread right now. CASI, 4,000,000 shares of volume so we’re still in that window where I can feel comfortable trading it. [inaudible 00:27:19] popping up a little bit. Yeah, I see that. Not quite there yet for me but … I think on CASI, the best thing is to wait on a 5 minute setup. Well, E signal is showing high on AMMA at 38 for me, but I don’t know. Nice Miles, good work. Slow and steady.

I wish the spread on AMMA was still a little bit tighter. That was the first candle to make a new high as it broke 27 but no one really bought it. Only 500,000 shares of volume here so I don’t know. Now it’s double topping at high of day but a 7 cent spread for a $2 stock, I don’t know. Feels like a bit of a … Maybe a little too thinly traded. A little tighter now, 35 by 37. See what it does. Maybe a 5 minute setup. When you have stocks like AMMA that are kind of thin, it doesn’t take much for the bottom to fallout and all of a sudden it’s back below 20, 19, 17,16 and take a pretty big loss. 20,000 share seller on AMMA at 231, it’s a pretty big seller when you’ve got this very light volume.

High of the last 5 minute candle on CASI is 27. Looks like a little bit of a 5 minute breakout here. It felt to me maybe a little risky to get in there at that 27 spot because of the way it just popped up 20 cents. I want to sell it at 448 and try to lock up 1 point but I think it’s extended off our 9 moving average by quite a bit, which, you know, doesn’t mean it can’t go. It could, but that extension is a little bit more risk. It’s just above the [inaudible 00:32:29] which is fine but mostly the way it broke there, maybe the right entry would have been 415. Maybe that would be a little on the aggressive side, the break there.

The next entry for me … Well, it depends. High of day is 44. Right now we have just popped up to 40 and now we’re pulling back a little bit so this could be the first one minute pullback after a fresh 5 minute breakout, potentially. There could be a scalp entry over 440 and kind of back of the mind target would be … I mean, obviously, at least high of day 445, 450.

It could it get to 460, 465, 475 and then 5 dollars? I don’t know. I don’t really think so but … All right, so no fill. I trade to add there at 40. All right, but sold my position or another half at 49. I tried to get in at 440 on that 1 minute micro pullback at 7500 shares; my order didn’t fill. I was just a little too slow. If you got filled on it and I was in that position I’d be taking a little profit here of 16 cents and adjust my stop to breakeven and then I’m in the driver’s seat.

High of day is now 63. If it wants to continue higher into the 70’s, 75, 80, then I’d just try to ride that momentum. I’m still holding tiny size but just kind of that trim and trail. Take a little profit off, adjust your stop. A little profit off, adjust your stop and just keep doing that. That’s what’s always worked really well for me. Holding the whole thing for that big, big move, that’s swinging for the fences. You might get a home run once every 10 times you swing for the fences and every other time you’re stopping out or taking a loss.

HMNY halted non circuit breaker coming back down so that reversal. I’m but $3,382 right now. Yeah, so I mean, I can’t complain about that. That’s a good Wednesday. Puts me up close to 10,000 grand in the last 3 days.

Nice Carl, good job. I hope all of you guys are doing well on CASI. From our first entry, it’s been nothing but up. This is, obviously, the strongest stock today. CASI, super, super strong momentum. It’s fantastic so we’re on the right one. RGSE, it looked interesting out of the gates but, you know, it just didn’t hold those levels so we switched gears and we have to be able to quickly adjust. We found CASI on the high day MOMO scanner.

This scanner right up here. Our first alert on it was … Oops, what time was that? The first alert was at 291. 291, 295, popped up to 3. 314, 318, 328, 340 and, let’s see, my first entry on this was at 325 and 330. It was a good early entry and you never know, some of these will only go up 10-15 cents, like RGSE, and then turn around. Others will keep going.

High is 83. Breaking over 85 is … I think once you break over 85 you’re getting so close to that $5.00 spot it’s almost like a magnet but we’re now at 7,000,000 shares of volume so we’re going to have some people coming out with big orders who are probably thinking, “I’m going to short this and start putting out … ” Someone with deep pockets can put out 20,000 shares at 85, 95, and 505 to take a 50-60,000 share position at an average somewhere in the 90’s thinking, “You know what? This thing, a week ago, was at a $1.27.

In 2 weeks it will probably be back at a $1.27. I’ve got the account size and the money to short it and hold it.” These are the types of stocks that will attract those types of traders, which is fine. That’s the self correcting market and if this really is extended with no good reason, it will come back down. It will go higher but just be mindful when we are trying to trade off the 1 minute chart that it could start to get choppy.

Nice, [inaudible 00:40:33]. Great job. Daily goal. Very good. HMNY bounced off the 200 moving average on the 5 minute but nothing there for me. LBIX, mm-hmm (affirmative). Nice, Rommy. Great job. James, fantastic. Great job, guys. Those are some really good wins. This is a good point in the day, we’re 30 minutes in, those of us who hit our daily goal whether it’s 1,000, 2,000, 3,000, whatever it is, those of you that had a really good day this is a good time to take a breath. Close your eyes for a second, take a breath and start to cool down. Start to slow down.

What you don’t want to do is, because you’re up a lot, get over confident and get back into, let’s say, CASI. I could get back into this with 10,000 share at 85 right now going for a $5.00 move. It drops back down to 55 and in a second I’ve given back my whole morning. Once you’ve got that profit cushion you want to start reducing your risk so you don’t put yourself in a position where you can give up what was a really good morning.

LBIX, interesting but really need … I mean, it just surged up 67% here. Let it pullback. Nice John, 3,000 bucks. That’s great. Good work. Aggressive traders would try to scalp LBIX at 97. We’ll see how that works out. Today’s a day where being aggressive seems to be productive. Look, this looks like it’s about to get halted. See the way the price gets sort of pinned here? The way it’s pinned, it dipped down for a second.

If the price stays above the outside of these volatility bands for more than 10 seconds the stock will get halted for 5 minutes on a circuit breaker. This H on the level 2 tells us that now the stock is halted. halted for a 5 minute pause, volatility pause. We’ll give this … Obviously, can’t do anything. It’s halted for 5 minutes by the exchange. We’ll just sit and watch it but when it resumes, often times these will resume higher. When they squeeze going up, they often times resume higher. We’ll see what it does.

High of day now is 205 and it’s halted for 5 minutes. If I pull up time and sales, I can see the time stamp for the last order which was 10:03:22. This will resume at 10:08:22, roughly. It depends on which broker you have but most broker will give you a little H on the level 2 window to show you that the stock is halted. If you tried to place an order right now it would get reject. Let’s just say you try to place an order at whatever, 205 … Actually, that’s interesting. Usually they get rejected.

They don’t accept orders once stock is halted but … Depends where it opens. If it opens at 197. If it opens lower, then often times I’ll add over the high because it effectively takes the form of a 1 minute micro pullback. I’ll buy it over 205 or maybe even over the whole dollar of 2 bucks. If it resumes at 215 or 225 then I have to wait for it to pullback. I would just wait for a micro pullback of some type. It really depends on where it resumes.

CASI, still consolidating right now. What’s nice about it is it’s still holding over the 200 moving average. Sorry, the 20 moving average on the 1 minute; although, as I say that, it’s kind of right at it right now. I’d give it a chance to form a 5 minute pullback and then maybe add back for the second 5 minute candle to make a new high.

We’ve got about 2 minutes until LBIX resumption. LBIX resumption less than a minute away. I will watch it probably over $2.00 and 205. If it opens lower. If it opens higher than I’m not going to trade it.

Chuck, sorry. Bram, can you email [email protected] One of our support staff can take look at that. The FST support team isn’t logging in until pacific time so they’ll be logged in a little bit. All right, so we’ve got approximately 15 seconds until resumption. If it resumes higher than we’ll just wait for a pullback but if it resumes low, I can go for a little scalp. 5 minute pause, so let’s see what we do. Looks like it’s going to open high, 15, 18, so I can’t get in here.

That would be chasing it. Now, I mark high of day. High of day is 25. Okay, so now I’m going to move my order … That’s interesting. This really, right now, is dipping down probably too much but dipped to 196. Watch it at maybe … High of that first candle’s 25. I wouldn’t be a buyer at 25 because of how much it dipped. That’s a 30 cent candle so maybe I’d be a buyer at 215 or something; just watching it. Up 72% on the day.

Still dipping down. High of this current candle is 209 on the 1 minute. If it goes into the 80’s then it’s really not super interesting to me anymore. CASI dropping down probably too much now as well.

ARCI, so over 209. Some traders would get in. I think I’m going to pass on LBIX. I don’t know. Right out of the halt it showed weakness so if you went in for the first moment it candled to make a new high at 209, right now you’ve got 4 cents. It’s a small scalp. Stop, for me, would definitely be under 2 bucks so 199. That’s it. False breakout, just not strong enough. When you have those first 2 candles right out of the halt showing high volume and red selling volume, it’s just not really a good sign of strength.

ARCI squeezing up. High of day on this one is 38. Kind of doing the same thing as LBIX; squeezing up out of no where. Daily chart has a good amount of room. This could be one that, depending on what it does here, could be a scalp anticipating a possible circuit breaker halt. It doesn’t need to move that much before it will get halted. It might resume higher like LBIX if it halts going up but the volume is fairly light on it; 438,000 shares of volume. Not enough volume on ARCI.

Well, Brent, it depends on how much the stock moves up because CASI, which I’m getting close to stopping out of the rest of, this one is … Right now it’s breaking the VWAP. It’s not looking super great so they’ll just … Go ahead. All right, so I’m out of the rest of CASI. The first 5 minute candle worked but the problem is they get so extended that they don’t always form really clean pullbacks. They just went too parabolic.

That means, let’s see 10:15, so finishing the first 45 minutes of the day, up $3402.76. Not bad, so good job for all of you that got a piece of CASI. Really good opportunities there. Pretty low risk versus the reward potential. RGSE was a small winner but really the big one was CASI. Hopefully you guys all had a really solid morning. I saw some of you guys post your winners in there.

LBIX, I do see it popping up so maybe there will be something there. I’m just not totally sure about it. I want to make sure I trade really smart. It’s about base hits, reducing the risk. All right guys, so I think that’s good for the first 45 minutes. Let’s take a little bit of a break, cool down and then come back and we’ll see if we see some opportunities going into the lunch hour.

All right guys, so time for our midday market recap. We’re going to go over the trades from this morning. Finishing the morning $3402.76. Not bad at all. I’m going to write this down in my calendar. I like to use this little calender just to keep track of my days of the month. Today, 3402.76. It is my 1, 2, 3, 4, 5, 6, 7th trading day of the month. So far, green everyday. This is actually my 7th, 8th, 9th, 10th consecutive green day which is not bad.

Yesterday made 1700 bucks. The day before I made 4 grand. The day before that a 1,000. Day before that 1400 so we are in a nice little hot streak here. I love it. Getting some momentum and you know this is one of those things where I say, and I’m saying this, knock on wood not to jinx myself, but trading is easy once you understand the rules and you can follow them.

Following the rules is the hardest part. We all know that. I teach you guys the rules. Look for aquality set ups. It’s easy to find the needle in the haystack when you’re looking at the gappers. You’re looking at the stocks moving up with a catalyst, with a reason. That’s all easy. It’s trading and following the rules that’s hard. It’s not selling when you’re up only 3 cents or it’s holding when you’re down 30, 40, 50 cents and the loss is getting bigger.

Those are the times that are really hard for us. Someone asked early, “How do I sell when I hit my max loss?” I mean, I’ve got a sticky note right here. $1,000 max loss and I put it up over my P and L during the day now. I really try, whenever I’m approaching a $1,000 max loss, just to look at that and say, “Okay, cut the loss.” I know it’s hard. we all have those moments where we’re down a 1,000 and we’re like, “Forget it, I’m going to hold it longer.”

You get frustrated, you get stubborn and that can really bite you. That’s how you end up with losers that are $3,000, $4,000, $5,000 and all of a sudden a $5,000 loser gives back 2-3 good days and that can be very frustrating.

I say that, having done it before, knowing exactly what it’s like but a $1,000 on a trade … If I’m down more than a $1,000 on the day, I’m going to be done trading so it’s both. Yesterday, I was up 2,700 bucks and then I started losing money on a trade and so when I was down a 1,000 I cut it. I finished the day up only 1,700. I say only 1,700. 1,700 still a great day but if I would have held that I could have gone to break even on the day and that would not have been acceptable.

I followed my max loss on that trade which is $1,000. Max loss per trade and max loss per day. The worse case scenario is I come into the market and within 5 minutes I hit my $1,000 max loss on a trade. My first trade goes really bad and then I’m basically maxed out for the day. That’s what’s, obviously, really frustrating and it happens, sometimes, and that’s where there’s a little bit of luck.

Today you could say, “Ross, why didn’t you keep trading? Maybe you could have made 7 or 8 or $10,000.” It’s really important to know when to walk away. When to take your money and get out of the market. Any day that you are walking away with profit, you’re doing something, statistically, 9 out of 10 traders can’t do.

Now, traders in the warrior trading chat room, you have a much higher success rate. For you guys, it’s not 1 out of 10 but most traders out there, who are on their own, 90% will not be successful and a big part of that is because when they do have a little profit they don’t take it. They don’t take the money off the table.

Now, I will tell you every time I’ve gone to Las Vegas, I’ve walked away with more money then I’ve went with. It’s not because I’m good at gambling, it’s because I walk away when I’m up even if it’s a little bit. Even if it’s only 50 or 100 bucks. I’m like, “Oh, that’s good. I’m happy with that” and I walk away. I don’t push my luck. You could say, “Ross, you should have pushed it. Maybe you would have made 3,000, 4,000, $5,000.”

If you’re walking away green, you’re doing something that most people can’t do and trading and gambling are similar in that sense because you can start thinking about, oh, how much I could possibly make and you lose sit of, hey, I’ve got a little something here. Put it in my pocket and get out of the market. That’s what I did today, now, let’s look at the trades.

Very first trade of the day was on RGSE. Remember, RGSE was on our gap scanner. It was a stock we were watching as our leading gapper. Let me do a historical date on this scanner. We’ll do it for 9:20am. 9:20 this morning, this is what the scan looked like. All right, so we had RGSE on here. We can see that right there. RGSE at the very top. CASI was second one down. HMNY was the third one down. Those were the ones that we were watching the most closely. For those of you streaming on Facebook, you can see the P and L right there. All right, let’s see, I’ll flip this back around.

RGSE was our leading gapper so it made sense to pay really close attention to that one. That one was number one. CASI, I said pre market, I was like, “I don’t know about it.” The reason is I’m not familiar with the stock. I don’t know the stock very well and it’s a 51,000,000 share float, it’s on the higher side, and typically those stocks don’t do anything incredibly impressive. Float is the number of share available to trade so a company that has 50,000,000 shares has a lot of supply. That means it takes a much higher level of demand to create that imbalance.

Now, we had it today on CASI but on a stock like RGSE only 1.8 million share float, the float is 1/20th the size of CASI so it takes that much less demand to create the same imbalance where you have a big move. That’s why we often look at stocks that have lower floats. That’s the same reason why I said ATHX, 1,000,000 share float, not very interested but I was watching RGSE and CASI and HMNY and we also had CLSM on watch because it made a big move yesterday.

Okay, so looking at the first trade of the day on RGSE … Let me just get this chart up here. RGSE pre market high was actually as high as $2.65. It squeezed up a little bit right before the bell. It had a fairly decent 5 minute flag pattern pre market, consolidation, down to the moving average and it bounced off that level. Pre market it had over a million shares of volume. You totally could have taken a pre market trade on it. I just have a rule that I don’t trade pre market so didn’t touch it.

All right, the bell rings and we see it start to pop up and I was about to get it and I said, “Wait guys, hold on. I see a …” I think it was a 25,000 share seller or was it a 40,000? There was a big seller at 268. I was like, “Hold up, I want to see if that guy gets taken out before I jump in.” We popped up, we dipped down for a second and even on the 1 minute chart it’s almost hard to see so I’ll push this back to a 10 second chart. I only do this just to show you in those few seconds what I was looking at and what I was seeing. It can happen very quickly right out of the gates.

Okay, so now that we’re looking at the 1 second chart look at this resistance. We see the resistance right here at 268. 268 and then as soon as it popped up, it popped up to 74 and up to 80 so that’s where I jumped in. 7,500 shares at 266 and 268 and immediately putting them on the ask as soon as that seller broke. Now, I didn’t know if it was going to pop up 10 or 15 cents or only pop up 2 or 3 cents. You don’t know.

This one really only went up about 2-3 cents and then we kept seeing 10,000 share sellers at 74-75 and so I felt like it might be a little too heavy, too many sellers, so I’m going to get out. I took my profit at 70, 270, 72, 73, and 72 for $313 but, hey, that’s not bad for the first 1 minute of the day. By 9:31, I’m already up 300 bucks. At that point, I was a little disappointed because RGSE was kind of the one I was really watching and it didn’t play out very well.

Then you see here, 9:32, I’m long 7,500 shares of CASI at 325 and at 330. How did I see it starting to pop up. Let’s pull up the chart. We’ve got CASI here. This is still a 10 second chart but that’s okay for right now. We’ll go back here to right out of the gates and you can see right out of the gates it really surged up which surprised me. Pre market high was right around 3, no sorry.

Pre market high was 286 so I didn’t have incredibly high hopes for it looking at the 5 minute chart pre market but then the bell rings and it pops up to 280, to 3, to 320, to 330 and that’s when I was like, “Okay, hey this thing has got some momentum. I’m going to jump in.” Now, even though it wasn’t one I was watching really closely, it started hitting my high of day momentum scanner right here, as you can see.

Let’s see, let me pull this back down. It started hitting that scanner at, I believe it was 290. 270, 271, 273, 2772, 279 so this is my high of day scanner. We’ve got RGSE on there, no surprise. MLSS, pulled it up, didn’t see anything interesting.

CASI, it was off the watch list. It start surging up. RGSE on there again. CASI 285, okay, wow, it’s really surging up. It keeps going higher to 90. 306, 311, 315 so at that point I was like, “Okay, I got to take a trade on it. I pull up the level 2, I’m looking at it and I see that we had this high of … What was it? Of 340. It pulls back here, down to a low of 312 and as it starts to pop back up, that’s when I jump in. Boom, boom, boom.

I press the order 3 times. Now I’ve got 7,500 shares and I’m looking for this to break over 340 and get up over the half dollar which was 350. It squeezes up to a high of 363 so through that move I’m selling on the ask of 45, 44, 53, 63 and looks like I sold a little bit more at 45. A little more than 72. I was continuing to hold partial small size so all the way up to this high here of 75.

All right, so we get this move up to 75, 375, really great move. I was up well over a 1,000 bucks at this point and we get a little bit of a pullback. I’m watching it pullback and I’m thinking, “Okay, we drop down here down to … ” What was it? 45 or so, something like that and you can see in the 5 minute candle all we’re seeing is it surging up. It’s just moving straight up so this is a 1 minute pullback so now I’m going to go back to the 1 minute chart and it was so clean.

I mean, it was like a picture perfect 1 minute pullback. Rarely do we actually see them work out as well as this one did which is why I sold so much of the position as early as I did. This was our first pullback right here. Even on the 1 minute chart you can barely see it because it happened so fast but when we looked at the 10 second it was clear. Even when you look at the 1 minute, the fact that you see these candlewicks, the up, the down, you know that inside that candle it did make that move.

Here, it drops back down and I’m buying the first candle to make a new high right here; that was for the break over 352. First candle to make a new high. I got in a little early, as you can see here, at 48, 49, and 50. Back in, oops, at 7,500 shares. It pops up to 65 and I’m starting to scale out. 65, 65, 77, 80. I put a little bit on the ask, 100 shares at 399, but I’m taking profit as it’s moving back up.

It ends up hitting a high of 445 which is crazy. I sold another partial position at 449. Let’s see, I have to scroll back here. Got filled at … Oh actually, no, I filled it 54 and then I sold the rest on the bid at 44. I tried to get back in at 3, sorry, at 440. I didn’t get filled so the entry at 440 was at 9:54 so I have to pullback this chart a little bit. That was right here.

We popped up and then we had a little 1 minute micro pullback right here and that’s where I tried to add, at 54. I tried to punch it 3 times. I didn’t get filled on any of the position so, you know, that was a bummer. That should have easily … I mean, 7,500 shares from 440, right here, it went up to 460. That’s 1,500 bucks. Up to 483, that could have added another 1,500 bucks. I could have been up 4,500 today, maybe 5,000. I didn’t get filled so that’s okay. Here you go. In the first 30 minutes and by 10:15, closing up shop, $3,402.76. Not bad and it’s really straight forward.

What’s the strategy? We’re looking for stocks that have the potential to make really big moves and buying them at the safest points. The safe point for me is on a pullback so let it dip down a little bit and then pick it up and ride it back up for the next leg higher. This was a great pullback entry here. This was a decent one here and this was a decent one here. Some really good opportunities on this. I’m glad to see it. I’m glad to see these stocks being so strong in the market. I’m hoping that we continue to see this level of strength but, in any case, today was a great day. 3,400 bucks and that puts me up around $10,000 in the last few days of trading. I really can’t complain about that.

I hope you guys all did well. Those of you in the chat room, you guys can type, how’d you do on CASI? Many of you guys trading CASI so you guys can call out how much you made on that stock. Folks on Facebook live, sounds like some of you guys took some trades also. Jarrod, 1,300 bucks. Dom, 14 cents. 950, 100 bucks, 200 bucks, a 1,000, 2,800 paper trading. Let’s see, we’ve only got 686 people still in the room. A lot of people have left already. That’s really great guys that you were able to book some profit. Only a 1,000 bucks, hey, a 1,000 bucks is good. That’s a really good day.

That’s really solid so green is good and, John, if you lost money on it, don’t feel bad. There will be an opportunity to see a stock just like this tomorrow, next day and next day. What you want to do is you want to make sure that loss is an opportunity for you to get a little bit better. Right? You want to learn from it. A loss isn’t a loss when you learn a lesson. It’s just the price you paid for that lesson and I’ve had a lot of expensive lessons but I wouldn’t be here where I am today if I didn’t have those lessons so I don’t regret them. I try not to have regrets on them, at least.

HMNY, that was a big one today. I just didn’t feel comfortable trading it. The range is just crazy. It’s making such big moves and it’s just, for me, not my cup of tea. Too much risk. I found a lower risk stock to trade today, made some great money on it, so I think my work is done. Let’s try and do it again tomorrow. That’s the game plan. I hope you guys all have a fantastic afternoon. I’m going to take this dog for a walk. She seems to want to go outside so I’ll let you guys enjoy the rest of your day and we’ll be back at it first thing tomorrow morning.

Daniel, sorry, your question was about the loss. The thing with losses, like I said, the sticky note. Put that sticky note over your P and L and you have to have the discipline. That’s what it comes down to. I really encourage you to take 10 minutes each morning, before you start trading, to meditate. To really have that few minutes to set your intention but today is not about making a lot of money, it’s about taking really good trades. A good trade can be a trade where you lose 10 cents.

That’s a good trade because you managed your risk. We always think a good trade is one that we make money on but you can make money breaking your rules. You can make money being way too aggressive and when you do that you get yourself into a situation where you’re reinforcing bad behavior because you made money doing something you really shouldn’t have done, like held to long or averaged down. Get yourself in the habit of following the rules and the best way to discipline yourself is to exercise discipline in other areas of your life. Meditation is a form of discipline. That strengthens that muscle that you have to use when you’re trading.

Same thing with exercise. When I go for a bike ride I ride 10 miles out, 20 miles out. I come 10-20 miles back and it’s discipline. I force myself to do it because I know it’s good for me. All right everyone, I’ll let you guys, again, enjoy the afternoon and I will see you all first thing tomorrow morning. All right, I’ll see you guys in a little bit.

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 go live or upload new videos. Until then, happy surfing.