Warrior Trading Blog

Day 41 of the $100k Challenge +$3,617.27 | Ep. #44

Day 41 of the $100k Challenge +$3,617.27 | Ep. #44

All right, guys. Time for our Friday Midday Market Recap. This is the end of day 41 of $100,000 Challenge. I’m finishing the morning up $3,617.26, which is not bad. That’s the best day of the week and finally got a little bit of momentum in the market. This week has been very slow. I’ve been feeling like I was in a little bit of just a cold patch where I was red Thursday and Friday of last week and then Monday and Tuesday were green, but not even green enough to make back the losses from Thursday and Friday. Wednesday and Thursday, super small days, only made $5 yesterday. Then as we came into the market today, I was thinking, “Okay, today’s Friday. Well, I’ve lost money consecutively for the last two Fridays,” so I was just immediately not sure if I would even want to trade today.

I just was like, “Clearly we’re not seeing a lot of momentum in the market. I’ve not been doing very well on Fridays. I’m at very beginning of the month, and two days into the month, I’m only up $102.” All of that was on my mind this morning as I was getting ready to trade. I was fully prepared that today I might not have any trades at all. When I was looking at the gap scanner this morning, I was like, “Well, you know, what’s going to be on TV today because I’m not sure I’m going to be doing very much trading and maybe I’ll just kind of chill out a little bit,” but in any case, I did end up finding a trade, and it wasn’t even on the gap scanner.

You can see my gains here for the day, $3,617. Commissions, $46. ECN fees, $184. Traded … let’s see, I took 4 trades. First trade I think was 5,000 … No, first trade was 7,500 shares. Second trade was 4,000. Third trade was 17,500 shares. The fourth trade was 2,500 shares. All of those add up to the bigger ECN fees, but that’s just part of the deal. It’s what comes with the territory when you trade with big size. Let’s go over the trades on RNVA, I’ll move this out of the way. RNVA, that was today’s big opportunity, and this was kind of what I was thinking on it. When we were looking at the watch list this morning, we had BIOS and SNMX, DRYS – which I don’t like. THST which was interesting on the daily, but really wasn’t that interesting on the inter-day chart. Volume was way too light. And NAKD, kind of interesting, but again, no volume. Just not a lot on here. I was like, “Well, all right, that’s fine. We are going to watch the high-a-day momentum scanner today instead.

 

Recap on $RNVA Trades

And here comes RNVA popping up at $2.25 at 9:44 am. That’s where I first saw it, popping up there. We’ll go back on the one minute chart to that point. Let’s go back here. This was the spot where we spiked up to a high of 32. At this point, I thought “Okay. This looks like something I can work with.” It’s a recent reverse split and we have seen some of these reverse split stocks really go parabolic. They reverse split and then they squeeze up. So I saw that, and I thought that was good. It’s the right price range, between 2 and $5. The daily chart, I was a little concerned about. I was concerned because we were kind of running into the 50 moving average … at that point. The 50 moving average was at $2.45, and we had already run into it one time before back on the 23rd. So I was kind of like, not sure this one was going to be easy. But, it popped up here. It pulled back.

This was the first 1-minute pull back, which I missed. I didn’t trade this one. I am going to pull up my arrow here. Okay, so the first one, I missed it. By the time the second one was forming up here, I said “You know what, I’ll take a stab at this with an entry over 230. It’s hitting my scanners. It looks like it has potential. Its the only thing that I see, even close to interesting. What’s my process? I find the stock on the scanner. I check the daily chart, how does it look? Are we near resistance? Is is strong? Is it weak? Etc. I check the flow. Is it a low flow? Is it a stock with a history of making moves? Is there … number 3 … or 4 … is there news on it? Are there headlines? What’s causing the spike? When I realized, this is a reverse split. This is a stock that has a history of moving, I thought “Alright, this is definitely one to keep a close eye on.”

Then, my focus is the exact entry. First, 1-minute, can we make a new high – would be over 29. So I watch 29, I put it up on my level 2. I’m looking at $2.29, $2.30, $2.33 and I as I see it popping up there and getting some volume. I jump in. I press the Buy button and I get filled 7,500 shares at $2.33. A little on the high side. Now we pop up to a high of $2.37, and also, you have to ask yourself, “What’s your stop?” On these kinds of trades. Mine was the low of this pull back. So, that was $2.22. Now, we drop down here and test $2.22. I’m down at this point, $750, and I am thinking “Well. That was quick!”. Right? I mean, this is so typical of the way trading has been this week. I get into something, I take a stab, it doesn’t work. I’m out immediately. But, I said “You know what? Just stick with this for a second.” This is a good quality set up. It’s pulling back to support. Yeah, I’m down $.10, but that’s not that big of a deal. Let’s give this a second to work. You can see all of a sudden here, it pops back up. It squeezes back up and I sold as it squeezed back up. Not expecting that it would go as high as $2.68.

This went a lot higher than I was expecting. I was going all the way up to $2.68, so I was like, “Okay. That was pretty impressive”. Then, I decided to get back in. Now I am getting back in for the first 1-minute pull back after this big break. The 1-minute candle high was $2.65, I got in around $2.68. We pop up to a high of $2.97. So that was trade #1. Trade #2. Now we are waiting for a little bit of a pull back. This period here, on the 1-minute chart, we pulled back down – all the way to $2.67. So about a $.30 pull back, and then we start to move back up. We come up to a high of $2.89. And I, “Okay Guys, this looks like to me like an A-B-C-D setup”. A is the first pull back. B is the high. C is the second pull back, that is usually not as low as the first one. And D is when we break over the price of this high. Of point B, which in this case is $2.89.

When I saw that, I was like “Okay, this looks good”. At the same time, I am watching the 5-minute chart and I’m saying, “Look, Guys. This is forming a 5-minute bull flag.” We’ve got the first pull back, the high of this candle is 89. That is also lining up with our 1-minute chart. These both look really good. So I said, “I am going to get in this”. As we saw this consolidation right here, I said “You know what? I am not even going to wait to get in at $2.89. I’m just going to jump in at $2.80.” That’s what I did. I jumped in at $2.80 … I started to jump in at $2.80 and I kept adding all the way up to $2.93. 17,500 shares, big position, for sure. And kind of as soon as I was in that position, it popped up to a high of … let’s see … no, we popped up – well this candle is up to $2.95 and then we go up to $3.07. You can see this went all the way up to a high of $3.25 … or $3.27.

 

Going for the Home Run 17500 Shares

For a moment there, I was kind of thinking to myself “I might have just gotten in over my head”. What do you do when 17,500 shares, it’s a Friday, you have a history of losing money on Fridays. I was in at an 88 average, if this drops to 66 or 65, I am going to lose $3000 – like that. I don’t have a cushion on the month. I am being way too aggressive. I started to think about those things, I started to think “You know what? You need to get out of this trade and start scaling out.” So I sold as we spiked up over $3. We got to a high of $3.05 … $3.07 when I was selling. So I was like, “You know what? I need to get out. We’re going through high of day, I need to just ease back a little bit”.

So I backed out, and then I got back in over $3.17 on this right here -the first 1-minute pull back after the fresh 5-minute break out. On this one, I was only able to grab $.03 of profit. In total, $3,600, which is great. That brings my weekly total up to, right around $7,600, or $7,700. Which is good. I mean, it’s not … this week wasn’t the best week ever. Last week, actually was … last week was actually worse because of the fact that I lost $3,900 on Friday. I had a good start to the week, I was up $10,000, and then I lost $4,000 on Thursday and Friday. Only finished last week with $6,000. The week before that, I made $20,000 – fantastic week. The week before that was $5,000. The week before that was $37,000. It’s kind of like I am either really hot, or the markets are slow. This week kind of felt like a slow week, but, look … if a slow week is still $5 – $7,000, that’s not bad. And that still keeps me on track for my end of March goal.

 

Looking Ahead at my March Goals

The end of March, my goal is to be $100,000 and today I crossed over $80,000 in my account. $583 on January 1 and in 41 days of trading, I have turned that into just over $80,000. So I am 80% of the way there and I am at a point where I can start to put a little more pressure on myself because I am getting really close to the goal. But, at the same time, I need to stay focused on trading the best quality set-ups and waiting for pull-back. I waited for pull backs on RNVA. I saw a couple other stocks hitting the scanners and I didn’t trade them because I was waiting for the pull back. I didn’t get the pull back, so there was no trades. Some of my best trades this week have been on pull backs, and some of the worst trades have been on stocks and set ups that I just chased a 1-minute spike, basically.

In a few minutes, I am going to go over my statistics for the month of February and talk about the 3 lessons I learned from making $60,000 in my small account in February. That’s going to come up right around lunch time, and I am going to do that in a separate video. That is going to be “Behind The Trades, Episode 4”. We’ll go over all that stuff in a few minutes, but just to recap, the rest of today. At this point, obviously we are coming up towards lunch time. I am done for the day. I am going to throw in the towel … or sounds negative to say it that way, but I am just going to call it quits for the day … that sounds kind of negative too. I am just going to be happy with my day and enjoy the afternoon. Because its been a good day, best day of the week. So, that’s always nice to finish on a green note.

A bit of an unfamiliar feeling after the last couple of Fridays. At this point, that candle of celebration – that’s sitting over there. I got a new one, and its waiting for the $100,000 day. That’s the day that this candle is going to get lit. For some reason, $3600 is good, but its … since I’ve been having $8 – $10,000 days, $3600 feels like a good day. But nothing that special. It’s not quite good enough for the candle. So, we’re going to wait on that. I would say more than $5,000 is a candle day. Hopefully I have a couple of those.

The last … two weeks ago, on Monday and Tuesday, I made $8,000 on Monday, $8,000 on Tuesday. I was up $16,000 in two days. If I do that, I’m going to be at $96,000. That $100,000 mark is going to be right there. But, on the other hand, if trading is the way it was last week for the next two weeks, I’m only going to be at $96,000 over the course of the next two weeks. It may take me really the whole month of March to get to 100. That’s fine. My equity curve right now, I peaked out at $77,000 and then I pulled back for 1, 2 days – red. 2 days back up but not back to 77. And then 2 days of sideways, so – 5 days of consolidation and now today, I just broke out through the highs.

That’s kind of … the ABC pattern in my equity curve. I am glad that I was able to have the breakout. I was a little aggressive today but I have conviction in these set ups. I took the size that I’ve been taking in order to have a good win and it worked. Statistically, if I’m right … whatever it is … 60%/70% of the time on these set ups, I risk $1000 to make $2000 or $3000. I am going to be profitable. Those are metrics that I can stand behind. In any case, that’s where we’ll finish today. If you guys have any questions, make sure you leave comments – for those of you watching on Facebook, down below. For those of you watching on YouTube, feel free to leave comments there. I’m also going to upload, separately, the live trading on RNVA. Or maybe I’ll add it into this video when I put it on YouTube, I’m not sure. But either way, that will be coming soon. I’ll upload that for the students in the day trading classes as well. With that, I hope you guys stay tuned and we’ll get started with our “Behind The Trades, Episode 4”.