Warrior Trading Blog

Day 63 of the $583 Challenge +$1,250.82


Day 63 of the $583 Challenge +$1,250.82

What’s up guys? All right, so time for a midday market recap. We’ll go over the trades from today. Overall, not a bad day. A little over $1,200.00 bucks, $1,250.82, so today I scaled it back a little bit after the really big green day yesterday. I just, I’ve been in this kind of whip saw the last, really like all of March. It was like way up and then way back down and up and down, lost $5,000.00 on Friday, made back $6,400.00 yesterday and I mean I’d like to kind of just get back into more of steady gains and less of that big whip.

Last week I finished the week with $5,000.00 profit, so $1,000.00 a day. The thing is, I made $10,000.00 and then lost $5,000.00, so I made it in that, in all that volatility. This week I got a nice start on the week and now I’d like to scale back a little bit and just continue slow and steady over the next few days. Hitting $1,200.00 bucks is, $1,000.00 a day is the goal. This is a day where I hit my daily goal. The PNL for those of you on Facebook Chat or Facebook Live, so it’s a good day.

Now, I could feel a little annoyed maybe that I didn’t fully capitalize on some of the opportunities that we say today but it seemed, right out of the gate, that the market was going to be a little bit choppy, so the first trade that I took today was on DFFN.

I was watching this pre-market because it was a gapper, gapping up with news, and so I said, “Okay it looks good as soon as the bell rings for a break over the half dollar at $4.50,” and then first targe is $4.60, second is high a day, high pre-market, $4.69. Well, the bell rings and it pops up and I jump in 5,000 shares at $4.50, it pops up to $4.73 and then it starts to come down.

As it came back down I was like, “All right, I’ll bail out,” made ten cents or nine cents, $460.00 bucks. Ends up selling off, all the way down to $3.92, which was obviously pretty ugly. It was not clean right out of the gate, just totally was a big rejection.

Now midday, mid morning, it all of the sudden spiked up and then it faded all the way back down so this is the type of trading we’ve had today. These big spikes. GBR, this is the other one that was on watch pre-market.

We had a nice pre-market flag here and I said, “I like it over $2.50.” The bell rings and I almost got in at $2.50. I just hesitated and I took a trade on DFFN, it popped up to a high of $2.65 and then we dropped down to $2.20, just super, super choppy.

Look at CYCC, as soon as the bell rang this one, which had looked like pretty strong after hours. The bell rings and it drops. It hits a high of $8.50 and then drops to $7.50, so I could tell right away that this was going to be a tricky day because we were seeing so much of this.

The spike one direction and then the whip back in the other direction. This is exactly what got me on Friday, remember? Now imagine I was looking at this at $8.50, and I was like, “Oh, it’s tempting for the half dollar break,” and I said, “You know what? I’m going to step back.

Had a great day yesterday. I don’t need to push my luck today. I’m going to wait for a one minute micro pull back,” just a little one minute bull flag, and then I’ll get in. I’m glad I did that because in the next one minute candle, it dropped a point and that’s with 2,500 shares you could lose $2,500.00 bucks, just so fast. No trades on that one right out of the gate.

Of course this one, like DFFN, all of the sudden mid morning squeezes from $7.50 up to $10.50. It was just kind of, I don’t know what caused that spike but I made this big move and I said, “All right. I will get in this after the first five minute pull back. I want a five minute resting candle.

One five minute period of pull back and then I’ll get in,” and that’s exactly what happened. It pulled back. Let’s see. Let’s stretch this out a little bit more. Now we pulled back right through here and I got in for the break over $10.00 and you can see how you got that move from $10.00, first five minute candle to make a new high and moved all the way up to $10.85.

I only made $50.00 bucks on it. I got nervous and sold it too soon but that’s fine. It was a good trade until here and then it came all the way back down. This is the market that we’re in.

You’ve got my DFFN trade, capitalizing on the gap and go. You’ve got the CYCC trade, first five minute pull back, and then we have the BMTC trade. This one was another stock that just was really strong and didn’t seem to want to give us a nice, clean, easy pull back.

I said, “You know what? I missed the one minute set ups on it so I’m going to wait for a five minute set up.” As it’s pulling back right here I said, “Okay, we’ve got our first five minute resting candle, the five minute pull back. I’ve got my order ready to get in.”

The next candle right here pops up to $4.80 or $4.77, pulls back for a second, and I knew $4.80 was the high of that current five minute candle, which had like ten seconds left on it, so I was like, “You know what? I’m going to get in this at $4.80 with 2,500 shares.”

Now, that’s a really small order for me considering yesterday I was trading 12,000, 15,000 shares but I didn’t have a cushion on the name and I felt like I didn’t want to put myself in a position to quickly lose $2,000.00 on a false break out so I starved 2,500 shares and next thing you know it’s popping up to $5.20.

In that trade I made $780.00, quick twenty-five cents or whatever it was. It pulls back a little bit and I added, right here on this little micro pull back at $5.20 for the break here, because we have this one little pull back candle. We popped up. We kind of whipped around and I got out with another $50.00 or so.

That was it. The cleanest trades today. BMTC, five minute set up, right here. CYCC, the five minute set up on, after this move. Those are low risk set ups. No stress, really. I didn’t have much stress today.

The only stress that I had today was having to sit on my hands while I watched these other stocks making big moves and I kind of felt like this is a little annoying because these stocks are running without me, but I kept reminding myself, wait for a pull back. I also told myself that my goal is to try to be consistent.

I want to see how many consecutive green days I can put together. I don’t want to have a big green day and then a big red day and keep going back and forth. I’d rather have consecutive green days, who wouldn’t? That means I have to be really, really selective.

I have to be really smart about what I’m willing to trade. This puts me now up, let’s see, $1,250.00 on the day, so about $7,600.00, $7,700.00 on the month and on the week, which is a great start. For the second day into the month, that’s a terrific start.

Really, if I can have one $5,000.00 day once a week, I’ll be at $20,000.00, $25,000.00 by the end of the month. It’s just sitting, patiently waiting for that really good opportunity and then just striking and attacking it.

Today we didn’t have any really, really awesome opportunities, and so I scaled back on the size. I was still able to hit my daily goal of $1,000.00, but I scaled back on the size and reduced my risk and added a little profit to the weekly total but just kind of traded smart.

Swing for the fences is definitely risky. That’s the thing, you, when you swing for the fence and it works, you can get a really big win. When it doesn’t work, you get a big loss, obviously. At the same time, you don’t have to swing for the fences by only trading A quality set ups.

If you only trade in A quality set ups then you will, inevitably have better accuracy and your results will be better, and you’ll get to a point where when you see that A quality set up, you’ll have the confidence to be a little more aggressive. It may be a swing for the fences but it’s really just, it’s an educated management of risk because you know you’re more successful on that set up, so trading it with larger size will statistically give you a bigger winner.

That’s why it’s better to gradually increase your size rather than being small size and then all of the sudden taking huge size on one trade, and then going back down to back down or whatever it is.

Yeah James, that’s right. That was last year, 2015, Thanksgiving until January, February of 2016. It was 53 or 54 consecutive green days. During that streak, I started getting obsessive about not wanting to close any day red, so if I was up even $18.00, I would be like, “You know what? I would rather just throw in the towel than risk going red,” which was arbitrary.

It just doesn’t really matter if you’re up 18 or you’re down 18, and so there were times where I stopped trading earlier in the day because I just was like, “I better just get out.”

During that hot streak, I probably only made like $20,000.00. It didn’t make nearly as much as I made in the last three months or the last two and a half months. I wasn’t being as aggressive. I was being more conservative.

At the same time, the accuracy was really solid. I think beginner traders should have that mindset of how many consecutive green days can I have back to back to back? That’s a challenge. How consistent can you be? If you can do that for five, ten, fifteen days, you’re definitely on to something.

Okay, so anyways, that’s kind of where I’m at for today. Hopefully we’ll continue to see some good momentum and less of the choppiness but in the meantime, I can, I think I can kind of grind along with a couple wins here and a couple wins there. That’s what I’ll do.

If that’s the case tomorrow, then I’ll have that same approach. Today, total was five trades and five winners, so very disciplined, very accurate, which is awesome. Good day all around even though we didn’t have any big winners. It was not because of, I mean I could have been more aggressive, I just scaled back a little bit, which I think was fine. Okay, anyways, that’s it for now.

We’ve got class at 4:00 p.m. This is going to be a long class for students that are in the day trading courses. It’s going to be Class 6 on Strategy Development, so that will be a lot of fun. We’ll get started at 4:00 p.m. All right guys, I’ll see you there.

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