Daily Recap on Day 89
All right guys, so we’re going to do a midday market recap, go over the trades from today. Today is my 89th trading day of the year, I missed a couple of days at the end of last week. I was in New York City and had some meetings and then I didn’t trade yesterday because I didn’t have an account to trade in. As I mentioned yesterday and gave you kind of a teaser, I was switching brokers.
Today is my first day with a new broker. I’m back with Lightspeed Financial and this is the first time I have traded there … Well, I’ve had my account there, it’s still been active I just didn’t trade in it. It’s been well over a year since I’ve traded there. It’s nice to be back, I’ve always loved their platform, it’s a fast platform, it’s intuitive, I like the way it works but in the past the commissions were a little bit too high and that was the only reason that I wasn’t trading there.
Well, I met with the president of Lightspeed and we were able to put together a group rate for all of our students. The group rate is, as I mentioned to all of our students earlier today, it’s $2.50 per trade plus ECN fees for chatroom members and $2 per trade plus ECN fees for Warrior Pro students who are participating in broker rebate. For Warrior Pro students it will be priced at $2 per trade until you’ve saved an amount equal to the cost of your education. Essentially it subsidizes your education through discounted commissions over the course of however long it takes you, six, twelve months or whatever it is.
Those of you watching on Facebook, here’s the livestream of my account. Today I made just over $1,000 on three stocks and you can see this is Lightspeed, that’s my … The way I separate these, I’ve got my active orders right here and then I have executed orders here so if I put an order for SINA, lets just say one share something, and I put it at, I’ll just say $98 and I press the Buy button, that order is going to be sitting here as an active order. My active orders always show up here and I can Cancel Ctrl Q and disappears. I like to have active orders separate so I don’t lose track that I have an open order that’s still pending.
The green orders are the ones that I executed, the red ones are the ones that I canceled or didn’t get filled on. Got the level two here, one of the cool things is I can tab between these four level twos and you can see how the one that’s highlighted has the yellow border and the color is brighter.
You can adjust all these settings. We have our Lightspeed video where it’s demo of how to navigate this platform and how to change these things but these are all customizable, I mean you can make it whatever you want. This is just the way that I like it.
Finishing the day with $1,000 in the first 30 minutes, not bad. It’s not a bad way to start the morning and I’m leaving in about an hour, actually less than an hour. I’m leaving in like 25 minutes for the airport and I’ll be in Las Vegas for the rest of the week, trading with our students who are in the inner circle. From there I’m going to fly to San Francisco and then drive up to Napa Valley. All right, so that my itinerary for the next couple of weeks but I’ll be trading on the road in my Lightspeed account.
It resulted in me having to take one day off of trading while I wired money out and then wired money back in, so I lost one day of trading and I lost two days in New York City having meetings with different brokers and stuff like trying to put together the best rate for our students.
Now, full disclosure, we’re not getting paid any advertising fee or we’re not getting any kickback for any of our students who join. Basically what I said is, I don’t want that conflict of interest, I want you guys to give any extra money that you have as a discount to our students.
Basically give our students the bottom line, the lowest you can possibly go. Don’t worry about paying me anything. I don’t need to get $50 per student or whatever those affiliate rates are, I just want to give our students the best opportunity. Now at 250 per trade, this is obviously a really good deal.
You do need the minimum balance of 25,000 because they’re located in New York City so they’ve got the PDT rule. That is what it is, but we’re also working with TradeZero they are in the Bahamas and they don’t enforce the PDT rule. However they only accept international clients.
Just as a heads up there, if you’re international you can trade with TradeZero but of course I would really encourage you guys to look at Lightspeed, they accept US residents and international residents. They just don’t accept Canadians. The only … Well there’s probably a couple of other countries but unfortunately they don’t accept Canadians so that is what it is. In any case, today was kind of a little bit of a day of adjustment.
I was getting the platform set up last night and putting in all my hotkeys. My hotkeys are the same, no change there. I’ve got Ctrl 1, buy 2,500 shares, Ctrl Z, bail out of the full position. I’ve got sell the whole position, sell a quarter, sell half. I have it both on the bid and the sell on the ask.
When I sell on the ask, remember that I’m adding liquidity. By adding liquidity I get an ECN rebate, so for every 1,000 shares that I add liquidity, I’m getting a rebate of about $2. Today, I added liquidity on 2,500 shares and so that will be $4 and … By basically $5 that I’ll make back. That covers two trades. I mean, it’s not a lot but it adds up over the course of $5 everyday of the week and over each week of the month and every month of the year. At the end of the year you could be talking about thousands of dollars in rebates.
It definitely makes a difference to be able to get those ECN rebates but in any case, I got my hotkeys set up and I’ve got the platform set up. Just a couple of nuances you get used to doing things the way you’re used to doing them. To me when I change platforms and I’ve done this before, it’s like you’ve been driving a Toyota for a long time and now you’re driving a Honda, does everything work basically the same?
Yeah, it does. Are some things a little different? Sometimes to put on the high beams you push in instead of pull out. The windshield wipers might be a little different. You have the same functions, it’s just remembering the new location for some of them and that’ll take a couple of days.
Today was the first day but 1,000 buck is good and hopefully we’ll have a good day again tomorrow. Tomorrow I’ll be trading with our students in Las Vegas so hopefully we have a good so I don’t embarrass myself in front of all of our students but I’m sure it’ll be fine. I’m not going to go crazy with 15,000, 20,000 share positions, I am continuing to trade conservatively so Daniel yeah. I’m in the halfway house, I’m kind of making my way out of trader rehab.
Trader rehab for me was capped at 2,500 shares, today I took 5,000 of SORL. I’m increasing my size a little bit but I’m still keeping it a pretty moderate unless I see really … Like I said a quality and then I’ll be more aggressive but I just want to continue to sort of slow and steady rebuild this account. My goal right now is to hit $50,000. I’m at 41,729 this morning, tomorrow I’ll open around 42,700 so I’ve still got $7,000 to go before I hit that level and it’s arbitrary, it doesn’t mean anything. It’s just 50,000 but that’s kind of my next target in mind.
I don’t want to have a setback, I rather just slow and steady get myself up to 50 and then, if the market is really hot I can get more aggressive and push a little bit harder but the market is been a little slow. April last year was slow, May last year was slow and then June, July and August were amazing so you never know. Maybe this summer will be slow, maybe it will be awesome but I need to be able to adjust my risk to the market.
One of the things I also said today for all of our students is, I want to test you guys out a little bit and see if you were able to identify the proper entry points in the stocks that we were trading. Instead of me telling you the proper entry points I was testing to see if you guys were able to call out those entry points in the room and you guys did a great job. I want to walk you through the trades that I took this morning and you guys can compare them to the trades that you took.
The trade that I did really well on, made 1,000 bucks was SORL. All right, this is SORL, now why did I trade this one? Well, yesterday it made a big move. You can see on the daily chart, big move yesterday, gaping up and then squeezing up to a high of 620.
Yesterday’s high was 621 and then you can see here this consolidation all afternoon yesterday and then we ended up opening just a little bit higher. When we see this type of set up, there’s a really good chance that the next day it continues, it breaks through the high and then goes even higher. I was thinking 650, $7 dollars back of my mind target but we needed to break over 620.
Pre-market we had a high of 609, which was also sort of this resistance right in this level, so I said, “You know what? I’m looking at this to get in at 610 for the break of basically pre-market highs and then my first target is 620.” That’s exactly what I did. The bell rang and I jumped in 5,000 shares at 610. Now, we popped up to a high of 620 or 619 and I was like, “Looking good. I like this.”
All of a sudden we dropped down to 599 and I was like, “You got to be kidding me! This is how I’m going to start my day at Lightspeed with a red trade?” Then we popped back up here and then I said, “Okay, well the first candle to make a new high is the spot that’s going to be important and we want to see over that high rate there that we go right up to 620.” That’s what happened.
We went from 612 right there, which also would have been really a good entry and then we popped up to a high of 637, 639. Through that squeeze I sold half, three quarters, stop right here underneath 620 on the rest. This level here was 619 so as soon as we broke below that level I stopped out of the rest.
My stop order got a little bit screwed up because I had typed it wrong so it didn’t fire, we ended up dropping down to 609, I was still holding 500 shares. We popped up to 617 and I sold on the ask as we popped back up and then I went and fixed my hotkeys so that won’t happen again.
Anyways that was the trade on SORL. Two entry points that would have been good, the first one at 610 right here which was a little risky and then the second one right here at 612 which is kind of the micro pullback after this clear burst of volume in the first couple of minutes, so a decent trade there.
After that oops … After that had been traded again. I was half interested in watching it as it was forming this bull flag right here but I wasn’t sure the first [inaudible 00:12:35] high was going to work because this orange dotted line is the VWAP, the volume weighted average price and we were trading below that level so I was a little unsure about that.
That’s SORL, the next one was XGTI. XGTI, I wasn’t super, super interested in it, I saw it on the scanners pre-market. We’ve traded it in the past, it had earnings but it’s not one I’ve ever done really well on. Having said that, on this candle here it’s suddenly squeezed from 180 all the way up to 205 and so I thought, “Okay, well this thing clearly is showing some strength.” I jumped in, let’s see.
Right here, you see how we had this consolidation for the break over 205. I got in this at 203 anticipating a break over 205, we pulled back for a second, then we popped to 207, ended up selling at 204 for a $20 gain. Didn’t really get what I was looking for on that one, 2,000 shares, 20 bucks.
SINA is the last one that I traded. This one made a huge move from $90 all the way up to nearly $100 this morning. I bought and hindsight I certainly could have held longer but in any case, I bought this right here, expecting that we would break over 98.50 and 98.50 we would squeeze all the way up to pre-market at a higher day which was 98.84 and anyone who was short would cover.
You can see we got that break on that candle up to a high of 98.96, I hadn’t ordered out of 98.97 to sell half, I didn’t get any of it filled and then we drop back down here to 97.16. On that one I made $30 with 250 shares. I wasn’t taking a lot of risk, I was trying not to be super aggressive knowing that that was the price range that … I can lose 50 cents or a point in a matter of moments, so I didn’t want that to happen so I took it easy and I’m fine with that trade.
Anyways three trades today, ten executions total, ten tickets so 10 times 250, $25 in commissions. My ECN fees today on 14,000 shares are like 25, 30 bucks so commissions say about $50. Not bad, 5% of my total gains basically. Total gain is 1,033, gains after commission will be about $985. You know how difficult it is to trade when you’ve got big commissions.
Now, for reference, I know some of you guys are trading with brokers where the commissions are .005 or even .001 and that means on 14,000 shares your commissions will be $145 today or $75 today. That’s definitely more than I’m paying. That’s not to mention the flat fee that’s separate, so it would be even more.
Anyways, I definitely encourage you guys to … Number one you need to use the best tools for trading, so Lightspeed has direct access routing, we’ve got the hotkeys, we’ve got customers with hotkeys, we’ve got smart routing which is lower than … a little less expensive than the direct access routing. We’ve got stable platform. One of the things that’s nice about this is two step verification for log in. For someone like me, I’ve got my videos on YouTube and all that stuff, your accounts are a little bit more secure which is really nice.
Anyways, that’s about it for today. Like, I said I got to head out to the airport, I got to leave in about 15 minutes so I will do a livestream for sure tomorrow from Las Vegas. I might do one later tonight depending on what time I get in and stuff like that but I will be here the rest of the week, I will be trading on Wednesday, Thursday and Friday morning.
All right guys, that’s it for now, that was the update and I know you guys are going to be excited to get your accounts set up everything like that. I’ve got a link to the page where you can see all the details of the group ratings, stuff like that. Okay, with that said I will see you all first thing tomorrow morning. All right, bye guys.
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