Warrior Trading Blog

Day 102 – Great start to the trading week +$1.1k in 30min!

day 2

All right guys. We’re gonna do our midday market recap here, go over the trades from this morning. Over all, today was a great start to the week. 1,000 bucks in the first 30 minutes. That’s it. I kept it simple. I focused on one stock, the one stock that was in play. It was predictable this stock would be in play and this stock would give us a lot of opportunities, because it was on the top of our gap scanner this morning.

If I pull up my gap scanners here. Let me just grab them from Trade Ideas. Let’s see. You’ll see that CLSM was our leading gapper. Here’s CLSM right now. The gap that goes around 46%. All right, so CLSM at the top of the gap scanner, gapping 46%. I finished the day up $1,130.36 on the name. I took a total of four trades, and I actually gave back a little bit of profit. I gave back 70 dollars on my last trade, but three winners, one loser, overall. That’s pretty decent accuracy. I’m okay with that.

Let’s go over the trades I took on CLSM. So, CLSM. Let’s see. Du du du du du du. So, this one was … You know, one of those ones that was kind of squeezing right into the open. This is always a little bit tricky, because we don’t know whether or not it’s gonna safe, just to buy it right out of the gates, or if it’s better to wait for a pole back. I love the gap and go strategy, and the gap and go strategy says, you buy the break of the pre-market high.

The pre-market high is 396. That’s my entry. The problem is, we’ve been in a market where we see these stocks break 396 and go up to 401, and then drop down to 370. Unless you were able to get out quick, you lose 20 cents, or more. That’s made me a little bit more cautious. On this one I say, “You know, I think I would prefer to go for red to green move, rather than try to get in as soon as the bell rings for the break of four dollars.” That is kind of what I was thinking.

Now, having said that, I had my order ready to buy 2500 shares at four dollars. As soon as the bell rang, we saw lots of volume surging in. I was like, “You know? I’m gonna go for it. I’m gonna go and just press the buy button.” I did. Pressed the buy button at four dollars. I didn’t get filled. Popped up to 424, so it actually would have been potentially a three, 400 dollar winner, but it didn’t get filled on it and so I said, “All right, well, that’s fine. I’ll wait for the next opportunity.”

Okay, so the next opportunity on this was at 933. I’ll show you guys who are watching on Facebook here. You can see right pre-market we broke this pre-market flag of 396. We popped up here to a high of 424. One green candle. Two green candles. The first red candle was here at 933, and so I said, “Okay, this candle is a pull back.” The first candles to make a new high … As soon as this green candle breaks the high of the red candle, I’m gonna get in with the stop of the low of this candle. I got in.

On this one, I knew this was the first pull back and there was a really good chance this would squeeze up. I jumped in here with 7500 shares at 430. It popped up to a high of 443, and then up to 460 … That was a quick seven, 800 bucks scaling out into that move. We drop back down, and we pull back. And so I was like, “All right. You know, I’ll let this thing pull back a little bit and consolidate.” I did, and let’s see … I actually also took a trade right here where I added at 443 for this candle to break, because I was expecting that we would break over the half dollar, and I could scalp another 10 cents, from 43 to 53.

I got one trade here … First trade was at the entry here, at 30. Second trade was adding at 43. The third trade was taking a stab as we started to curl up here. You can see we started to move up higher and higher. I took a stab on this one minute micro pull back that we had right here, with an entry at 230. We popped up to a high there of 243. We dropped down to 222, and then we squeezed up 70 485.

You can see in the context of the five minute chart, this was the first five minute candle to make a new high, but I didn’t want to buy that, because it was below the VWAP, and we had retraced the entire first candle. So, a bull flag is when we have consolidation near the high of day, not when we squeeze to the highs and then sell off. I didn’t buy that, but I did get in, once we had broken over the VWAP, which was kind of in the middle of this five minute candle, sort of, right around 428. We got this move up higher and then my last trade is the one that I lost on. That was an entry right here for the first five minute candle to make a new high.

At this point I was like, “Look guys. I’m up 1200 bucks on this name, 1250.” I’m gonna get in here at … I got in at … Let’s see, it was 473, for the first five minute candle to make a new high. I’m gonna get in with 1500 shares, because I am a little bit nervous about the fact that this is extended off of the nine moving average. That nine moving average is a good pull back, so the fact that its that extended makes me a little nervous.

I would typically start with 2500 shares, but I know how quickly I could lose 30 cents, or 20 cents at least. I’m just gonna start with 1500. 1500 shares in at 472. We pop up to a high of 485, so I’m up 160 bucks, 170 bucks. I was like, “This is good.” I’m gonna hold this, expecting that we break over the high of day, which at that time was 489. Then we go up to five dollars, 510, 520, 530. And then, into that squeeze, I might take some profit.

Essentially, what I was trying to do on this trade, is what I was talking about last week, which was, get myself … On the first three trades, I got myself into the drivers seat, with a 1000 dollars profit. And then, on that fourth trade, I said, “You know what? I’m gonna take a position, and I’m just gonna hold it. I’m gonna let it work.”

At this point, I’ve already had a great day. If I can take this trade and hold it for 50 cents, 70 cents, or a dollar, or even hold it for 30 cents, and then add 5,000 shares and put my stop at break even, I could potentially have 6500 shares with a break even stop and if it ends up running 50 cents or a dollar, I could make three or 4,000 dollars on basically a free trade, where my risk was break even.

Once you have your daily cushion, your daily profit target, that’s when you can consider taking that trade, where you’re just gonna let it ride. So, that’s what I was going for. It popped up to a high of 85 and then pulled back. I stopped out with a three set loss. Not a big deal. Just ended up being one of those ones where that set up didn’t work and since then we’ve been selling off. My focus today was CLSM, the one trade that was on the top of our gap scanner. I expected it to be very volatile out of the gates. I expected a lot of opportunity.

We have 16 million shares of volume right now, so this is not a thinly traded stock. There’s lots of volume. I could have easily taken 20 or 30,000 share positions. I just chose to be a little more conservative on it. You know, this is a great day. Great start to the week with 1,100 dollars in essentially the first 30 minutes. This last trade was just after 10am, so I was done trading by the end of the first hour. By 10:30, I was done, and basically just sitting tight.

If we had seen a really good opportunity, I would have been happy to jump on it, but we just didn’t see any good opportunities really since 10, 10:15, 10:30. So, slowing down a little bit as come into the lunch hour here, which is typical. I’m glad that we’re getting some opportunities right out of the gates. One trade like that a day, 1000 bucks a day. That’s 250,000 dollars a year. That’s a quarter million dollars a year from an hour a day of work. Right? So, you know … Obviously if I had better luck on this trade right here, this could have been a two, three, 4,000 dollar day. You know, today just wasn’t the day. I’ll take my 1,000 dollars, be happy with it, and live to trade another day. Come back at it tomorrow.

Right now, I’ve already got one red day for the month of June. I lost 53 dollars on June first. 53 dollars. Right? That’s not bad. Who cares about losing 50 bucks? That’s what I want. I want my losses to be as small as possible, and my winners, even if they’re not home runs, just to be solid base hits. That’s how you finish the month in really good shape, without the stress of going big green, big red, and all of that [inaudible 00:09:37] in between.

Slow and steady wins the race, so I’m finishing today’s day, 102 plus, 1130 bucks. That’s a good start to the week. I’m looking forward to jumping on the first momentum stack that I see tomorrow morning. I’ll have the same approach. First goal is just to hit my daily target, 1000 bucks. From that point on, look for a trade that I can put on the house and just let it ride as long as possible, as I build up towards 2,000, or 3,000.

I think one of the mistakes I made in April, was the fact that I was trying to hit the home run right out of the gates, before I hit my cushion. I had a lot of days I could have easily had my cushion. I could have easily taken 1,000 dollars profit, but right away I was in the mindset of, let it ride. That got me into a little bit of trouble. Okay?

So, that’s about it for today. Those of you that are watching on Facebook, I’ll go through and answer any of the comments that you guys have. 16 million shares of volume. Steven. Let’s see. Corey. That second pull back … It was a good set up. It just didn’t end up working out. The only thing is, it was a little extended off a nine moving average, which made me a little iffy about it. All right?

Anyways, those of you watching on Facebook, or YouTube, put your questions in the comments. I’ll go through and answer them this afternoon. Those of you in chat that have questions, I can answer them now. All right? We’ll do a Q & A, but for those of you watching the recording, we’ll end it here, and I’ll answer your questions in the comments. Okay. That’s it for now. I’ll see you guys first thing tomorrow morning.