Warrior Trading Blog

Day 52 of the $100k Challenge +$1,703.29 | Ep. #57

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Day 52 of the $100k Challenge +$1,703.29 | Ep. #57

All right guys, time for a mid-day market recap. Today is day 52 of the 100K challenge. I’m on a mission to make my way back up to $100,000 after a little bit of a set back last week. I opened Monday morning here with $90,746 in my account that I started with $583 on January 1st, and I’m up $1,703.29, so not a bad day.

I think I’ve gotten a little spoiled from some incredible trading in January where I made over $60,000, or February, and then early March where we continued to see some good follow through, but last week was tricky. I had four red days in a row. I lost some money and dropped down below 100K, so now I’ve kind of had to shift my focus away from trying to get home runs and instead just get base hits, so 500 here, 500 there, and if I can do that two or three times a day, I’ll have a great day.

Today I had a $450 loss, I had a $216 winner, and then I had a $2000 winner. Even though my accuracy was only two out of three, 66%, that one big winner outweighs the loss. That’s kind of the name of the game, keeping your stops tight, keeping the losses as small as possible, and if you have good days, your accuracy will be above 50%, which it is today.

In the last few weeks, most of my green days have been in the $4000 to $6000 range, so today is definitely a … Feels like a small day, but let’s not lose sight of the big picture. The big picture is that $1000 a day is $250,000 a year, $1500 a day is $375,000 a year, so $1700 a day is a little bit more than that. This is really not bad at all. Of course, no one’s going to be able to do $1000 a day consistently without ever having a red day.

You have to figure you will have red days. $1700 a day on your green days and then losing $1000 on your red days, maybe that’s where you end up being around $250,000 or $300,000 on the year, but in any case, this is just to say … I’m going to turn off my [inaudible 02:42] radio here. This is just to say that these gains are nothing to feel bummed out about.

You can see, for those of you on Facebook live, that’s the P&L today, the three stocks we traded, AUPH, Momo, M-O-M-O, and MYSZ. My first trade of the day was on MYSZ and I fell right into the red. Before we go into that, I want you guys who are on Facebook to meet the new Warrior Trading mask. You guys who are in the chat room, you’ve already seen the mask and you can visit warriortrading.com. You’ll notice over the weekend there were some changes.

We took the website offline for scheduled maintenance, and when it came back up, we had a brand new website. We’re really excited to launch this. Those of you who regularly go to the day trade watch list page, you’ll see that the watch list is now a dynamic scanner that updates each morning automatically. I’ll be posting the stocks that I am watching each morning in the chat room, but the scanners will update automatically so you guys can log in and check those out.

Of course, we have our new logo, which is the mask. As I said to all of you last night in our email, being a trader is something that does require you to be brave, to be courageous. We’re fighting against the market. Every day feels like a fight at times. This is really a symbol of that. It’s a community symbol of that bravery and that strength that you guys all have when you come and face the market.

Trading the markets, it tests us in so many ways. It’s the hardest thing that I ever tried to learn how to do. It took me years. There’s nothing I tried to do that took me years. You know what I mean? Anything else I ever tried to do, skiing … Skiing takes years, but you get it pretty quickly and you can enjoy it. With trading, you’re not having fun until you’re making money.

That takes years and years and years. It can be very, very frustrating and I totally understand that. I’m just super excited that we’re able to launch this new website and do this for the community.

You guys who log in every day, you’ll notice load time is going to be super, super fast, mobile experience is going to be much better, so those are all real perks for you guys. Anyways, I wanted to make sure you guys saw that.

Going back to the trades that I took today, MYZS, or MYSZ, this was the first one I traded and I stopped out of it pretty quickly. I got in 5,000 shares at $2.55. It popped up to a high of $2.69, and then it dropped back down. Actually, I got it at $2.65 and stopped out at $2.56.

I got in a little on the high side and got out quickly. It just didn’t follow through. There was some heavy sellers and I took the $450 loss. I never like to start the week red, but at the same time, I’ve got to keep my losses tight and that’s what I did. I got in, it didn’t work, I bailed out, and that was it.

Next trade was AUPH. We’ve been stalking AUPH on the daily chart for the last couple days, waiting for the first daily candle to make a new high. This morning I was like, “Guys, we’re going to be watching this over $8 for that first daily candle to make a new high. I got in 10,000 shares for the break of $8. We popped up here to a high of $8.23, but at $8.25, we had a $30,000 share seller sitting up on the ask.

When I saw that guy, I bailed out. I took my $2,000 of profit and I got out of the trade. It ended up pulling back down to $7.96, which would have put me at a loss, so it’s a good thing I took the profit, but then the first five minute candle to make a new high over $8.10 really gave a nice breakout up to $8.20, little pull back, and then from there, all the way up to $9.23.

I’m a little disappointed that I missed this move, but at the same time, this pull back right here, I wasn’t totally sure about it and kind of while this was happening, I was trading Momo, so I got onto a different stock. I come back, I see it has popped up here to $8.20, and I thought maybe it was kind of double topping against high of day.

We had had that big seller at $25, it popped up to $22, dropped back down to $13 on this red doji, and then it opened up and this is where I was sort of surprised that it suddenly opened up. At that point, it didn’t really pull back in a clean way where I felt like I could take a trade.

Ended up just letting it run without me, but one of the things that I try to remind you guys with trading is that number one, any day you can walk away from the market with more money than you gave to the market is a good day, even if it’s only by a couple hundred dollars. Number two, for me, success is all about trading the highest quality setups.

I took only three trades today. Even though I only won on two out of the three, I was very focused on taking what I thought were A quality setups. If I want to make more money, I have to take more size on A quality setups. It’s not about taking more trades, it’s about being more aggressive on the trades I take.

By taking more trades, I usually end up having to reduce my quality standards, so I start taking B or C quality setups that have more risk. When I do that, my accuracy goes down. I end up getting into those trades where I make a mistake.

This is something that I said out loud this morning in a way to remind myself not to jump in AUPH too high. How many times have you been up $200 or $300 on the day only to take that fourth or fifth trade and suddenly give back a ton of profit? That’s happened to me so many times and then I just sit there asking myself, “Why? Why did I take that last trade? It was so silly.

It was unnecessary, and now I’ve just put myself red on the day.” I didn’t want to do that with AUPH. It wouldn’t have been hard to do with the range that this was trading in, some pretty sharp pull backs here. I think I did the smart thing.

I got in, I got aggressive, I got my profit, and I got out of the way. I’m going to leave today with $1700 and that’s a great day of trading. If I can do that every day this year, without pushing it, without getting too aggressive, I’m going to do really well.

With that said, as of right now, I’m up $127,000 on the year, but only $16,000 on the month of March. This month has not been nearly as good of a month as last month. I am trying to be mindful here, especially since I had a little bit of red streak, to just be happy with the $1000 a day goal and not to try to put it all on the line for a home run trade.

If I had held that 10,000 share position from $8, I could have made $10,000 today, but realistically, I would have been risking, and potentially giving up, a $2000 winner to risk that $10,000 move. The way the market’s been recently, the odds were really high that that would have just gone down and turned into a loss. I’m totally okay with the fact that I took the profit and got out of the way.

That was AUPH, and then we have the trade on Momo here, which was pretty much as easy as it gets. I bought this green doji off the low, I got in 1,000 shares at $33.80, and we popped up to a high of $34, it went as high as $34.39. Really nice move there off of the lows. Low risk, simple reversal setup right off the scanners.

Got in, grabbed $200, and got out of the way. I could have been more aggressive and taken bigger share size, but I didn’t want to risk losing $600, which $0.30 was my stop. That’s $300 with 1,000 shares or $600 with 2,000. I didn’t want to lose that much, so I kept my top where it was and reduced my share size to reduce the risk. That was the trade on Momo.

ESPR, obviously this was one that has been extremely volatile today. It’s starting to curl back up a little bit now. It’s up 50%, just had a crazy move, and I’m the guy that just sat on the sidelines. I didn’t trade it. For me, I didn’t see very many clear opportunities for the types of trades that I like. I saw one potential bull flag on the one minute chart right out of the gates with an entry over $35. Right here.

You can see, I’m not the only one that saw that. A lot of volume came in when that candle broke the apex and we broke over $35, but I didn’t trade it because the low of the last candle was like $34.44.

I’m not going to risk $0.60 or $600 with 1,000 shares, especially when I’m already down $450 on my go to setup. To branch out and take a high risk trade on a $35 stock is just not worth it, so I didn’t take the trade.

It pops up to the highs, up to $36. We got as high as $37.16. We pulled back, came back to the nine moving average, consolidated, broke the nine with some volume, sharp sell off there, dropping a point and a little bit all in one candle basically.

There were opportunities long and short. I know Mike traded this one to the short side off the highs, and I think he did pretty well on it, but I don’t think it was an easy one. I don’t think anyone would say that this was a super easy one to trade, either long or short. Lots of whips. Up $0.80, down $1, just crazy range. When you’ve got big range, you have profit potential, but obviously you have risk. Finding a way to manage risk is important, and if you can’t do it, then it’s not worth taking the trade.

I kept it simple today. That’s pretty much what I do every day in general. For me, usually two to four trades a day. Sometimes I’ll take three to five or maybe seven or eight on a really busy day, but I stay focused. I look for that sniper kind of approach. Just be very, very focused, look for that A quality setup, and then make it count.

That’s why my gains have been so much larger in the last month. I didn’t trade any more in February than I would trade on an average month, I just took bigger share size. Bigger share size meant bigger winners. That was really the only difference between this month and last month. The difference maybe also being accuracy is not as good, but that’s just I think because the market’s been a little choppier.

That’s where we’re at here, the end of day 52. Third green day in a row after my four day red streak, so I’m just glad to put as much of a buffer as I can between me and that red streak.

I’ll open tomorrow morning in the, it looks like just under $93,000. I’ll be happy to get closer to 100K. Maybe it’ll happen this week, maybe not, but we’ll just take what the market’s willing to give us, even if it means having to sit on our hands for a couple of mornings.

All right guys. That’s it for today. I hope you guys had a good morning. I will see you all first thing tomorrow morning for day 53. All right. Thanks guys.

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