Warrior Trading Blog

Day 46 of the $100k Challenge -$3k | Ep. #50

Day 46 of the $100k Challenge -$3k | Ep. #50

All right guys so, here we are at the end of the week. This is day 46 of the 100,000 dollar challenge and unfortunately, today is a bit of a disappointing end to what has otherwise been a great week.

I’m finishing the day down 3,512 dollars. That’s definitely not how we like to end the week. It puts me back into this habit of having red days on Fridays. I think it’s been like three out of the last four Fridays I’ve been red so, just annoying. But, I’m still up 17,000 on the week which is still a good week.

I guess this is just one of those areas where trading just keeps you humble because you come off a really great couple of days and you go flat or you go red and it reminds you that you have to be grateful for all of the good days that you have. For sure, today is not the best day ever but it’s also not the worst day ever.

The one thing that was particularly disappointing today was that really big fake out that I got on SNGX. This was kind of interesting because I usually … I mean, it’s been awhile sense something like that happen where I got into this trade and I’ll pull this up here on the chart. SNGX. I was watching this. It hit the scanners.

Couple people in the room were calling it out saying, “Hey take a look.” And, that was right around when it was at 255. I looked at it and I was like, “Yeah, it does look good.” It pops up little bit to a high up to 74 and then it pulls back so I was kind of keeping an eye on it and then, all of a sudden I saw 25,000 share a bid at 268.

Usually when I see that I think, “Okay, there’s a big bidder. There’s a buyer who wants to get in this or maybe someone who’s trying to cover their short.” When I saw that I immediately thought about some of the other stocks that we’ve seen those big bids on and how they end of really getting pretty explosive.

I was looking at the daily, I didn’t see any resistance until the 200 moving average, 458 so I figured, “All right. I’ll jump in.” 10,000 shares. Long at … Now, I actually got in at 79 so I got slippage. I definitely chased it. I wanted to get in at 75 but it was big order and I ended up getting filled like 79. I get filled 10,000 shares at 79. It pops up to 80 and then, all of a sudden that 20,000 share buyer is gone and now he’s on the ask. The stock dropped.

That’s what happens. I mean, all of a sudden the bottom falls out and this person has moved to the ask and is selling so, it sort of seemed like someone put out that big order to try to encourage traders like me to get into it. I got into it, I fell for it, it popped up an then he was on the ask trying to sell and I had to bail out. I ended up losing. I stopped out with slippage down at 250.

Now, granted I could have stopped out a little bit sooner. I held this … I kind of went down with the ship on this one. I got a little stubborn. I was feeling annoyed and I held it maybe longer than I needed to but in any case, just a bit of a disappointing trade. There’s not a lot you can do to prevent that kind of thing from happening.

I mean, it just happens sometimes and you can even look at CATB today, 22 million shares of volume. Actually 40 million shares of volume today and in this one candle, we dropped down to 232 and then spiked up 50 cents to 276. Then, all of a sudden came back down. In that one candle, you can see here on the one minute, just look at that volatility.

I mean, it’s just one of these things that happen sometimes. You get faked out. Either someone puts out a big order or whatever it is and it shakes people out.

Today was the day where I paid my dues a little bit and this is just part of the deal of being a trader. Unfortunately, I’m doing exactly what I did not want to do which is I’m dropping back below 100 grand. I’ll open on Monday around 98,000 or something like that and obviously that’s annoying but big picture is that it doesn’t really matter that much.

My goal was to take that 500 dollars and turn it into 100,000. I did it. Now I’m having a little bit of a step back, little consolidation, getting ready to ramp back up for the next move up which will hopefully be next week.

Hopefully we’ll see some good opportunities next week and I’ll be able to get myself back in the driver seat. At this point right now I’m up 21,000 on the month. Here we are the end of the second week so we still have three full weeks in March.

This is eight days of trading and I’m up 21,000 dollars and we’ve got 15 days left so, based on those gains, 60,000 could happen but I’m not going to set the goal that high. I’d be happy with 30 or 40. I think that would be really just more than enough. That would be a great month.

 We’ll see. Hopefully we have some good opportunities next week and through the rest of March. Definitely had some great set ups on Monday, Tuesday and Wednesday. Made 20,000 dollars in three days and you know what? Today I wasn’t expecting to risk 3,000 dollars. I took a total of four trades. I have three losses and one winner.

The market was not one my side but I just stepped up to the plate with that trade thinking it was going to squeeze and I was just totally wrong on that one. Then CATB, even though it moved a lot, it wasn’t easy to trade, it was kind of popping all around so it is just part of the deal. Today’s the day that’s a little bit of a step back.

Number one, I hate having red days. Number two, I hate having them on a Friday right before going into the weekend because that’s what I’m going to think about all weekend long is how I’m the idiot that managed to lose 3,500 dollars on Friday but, that’ll just get me pumped up for Monday morning and I’ll be excited. Hopefully I’ll have some really good setups and get myself back up over 100 and then start grinding my way back up.

Anyways, yeah, that’s about it. Pretty much a short recap today. Not much to review. The market was slow. Market was slow yesterday. Market was slow today. Yesterday I was smart and I didn’t push it.

Today I pushed it a little too hard and took a loss. Now, this week, interestingly, my average winners are 20 cents and my average losers are 10 cents so, I’ve got a two to one profit loss ratio which is great but my accuracy is only 50%. Now, it certainly doesn’t help on a day like today when my accuracy was 20% or 25%.

It doesn’t help on a day like yesterday where my accuracy was only 30%. These two days have drawn down, obviously, my accuracy quite a bit but, it goes to show that you don’t need to be right 100% of the time.

I guess I’m actually right 52% of the time this week. Even if you are right only 50% of the time, if you have a good profit loss ratio, meaning you make more on your winners than you lose on your losers, you can be profitable 50% success.

It’s really that simple. Keep your losses tight. Even if you do have one that gets away from you, which you’re bound to have happen from time to time, you can still do well because those winners so far out weight the losses.

All right so, I guess that just about does it for today. I hope you guys all have an awesome weekend. Get some rest. Relax a little bit. Then, remember to get charged back up for Monday morning. All right guys? Okay, sounds good. I’ll see you guys all first thing on Monday.

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