Warrior Trading Blog

Day 67 of the $583 Challenge +$2,547.44


Day 67 of the $583 Challenge +$2,547.44

Alright guys, so time for a midday market recap. We’re going to go over trades from this morning. Over all not a bad way to start the week. Finishing the day up $2,547.44, which makes this my sixth consecutive green day. Today is day 40, sorry, day 67 of the $583 challenge and my account will be closing just over $120,000.

From $583 on January 1st I’ve built this account up to over $120,000. Today’s definitely a nice day. I was concerned this morning, because I didn’t see anything that looked really good on the high day momentum scanner.

We had sort of some higher float stocks. I just, I wasn’t seeing anything I was super crazy about. I’ll show you the scanner in a moment. Then once the bell rang, I took one trade, made 460 bucks, it was kind of a small winner and I thought, “Well, maybe this will just be a slow day.”

Then we had CYCC pop up on the scanner and I was able to get a really nice trade on that one with $2,221.21. Lots of twos there. That was awesome on CYCC and that was the one.

I mean, it really only takes one good trade to put me up over my daily goal. Daily goal’s $1,000 a day, so today I just did 2.5 days worth of work, which is awesome for a Monday. Now, the market is going to be … I think it’s closed on Friday for Good Friday, so I guess this is actually a bit of a short week, so good for me to try to capitalize on this opportunity and make the most, as much as I can in these four days of trading.

Going over the trades from today, I’ll show you guys on Facebook Live, those of you who are watching. That’s my PNL today, 2,447, or $2,547 on two stocks. I didn’t overtrade, I stayed focused, and that’s exactly what I was saying pre-market.

I was like, “Look guys, my goal today, my number one goal is to manage risk. I really want to have a green day today. Even if it’s a small green day where I only make $100, or $200, or $300, I really want to have a green day today. I want to prove to myself that on my first couple of trades I can be disciplined.

I can take small size, grab 20 cents here, 30 cents there, get a couple of small winners, and then if I can build that up as my cushion and I find a good set up, well maybe it’ll go higher. If not, I’ll be perfectly content to have a small green day, a couple 100 bucks, because those days add up.” Last week I finished with just under $13,000 and it … Sorry, my audio.

I’ll tell you, this is one thing about this headset that drives me nuts, is that it mutes, or it just, it goes into battery saving mode. It turns itself off if you aren’t speaking for … I mean, if you’re not listening to anything, it just turns itself off. If I don’t want it plugged in, I have to listen to music on low volume so it doesn’t shut itself off.

If we ever do a headset review, this one’s going to lose points for that. Anyways, so sorry if you guys lost audio. Those of you on Facebook, you have it the whole time. Yeah, so today’s one of those days where I really wasn’t expecting a lot, but then we ended up getting a good trade on CYCC. Let’s breakdown the trades for today and we’ll start by looking at the daily gap scanner.

All right. Here’s our daily gap scanner, timeframe, historical date. We’ll do this from 9am today and you’ll see that our gap scanner was predominantly higher float stocks that were higher priced. STRP, $90. Floats fine, but the price is too high. CPRT, $59. CYTX, at $1.83.

Now, on that one I actually thought that it might be a good trade, a good opportunity for a trade, because we had this kind of pre-market flag here, so I was looking at this thinking, “You know what? It looks kind of interesting for a break over $2.” Now, I could’ve gone for a break over the pre-market highs from 193, but I thought as soon as we broke over 190, there’s a good chance that it would pop up.

The thing is though on this one it came up and hit 190, pulled back, dropped down to 175, so a pretty sharp pullback, came back up to 190, squeezed up to 199, dropped down to 185 and then squeezed up to 205.

You can kind of see how the window of opportunity on this was fairly small. Yes, you had some opportunities, but really, 15 cents. That 15 cents was from 90 to 205, 206. I mean, that was almost the best you could’ve done. If you bought on this one minute pullback from 95 to 205, 10 cents is the best you could’ve done if got it in the bottom and sold at the top.

If you figure usually you probably only capture half of the move, that’s only a 5 cent winner. If your win is 5 cents, your average loss would need to be 2 cents to give you … 2 1/2 cents to give you a 2:1 profit loss ratio. Obviously, that is too tight of a stop to be realistic. This barely gave you a good risk reward ratio, or justified the trade. Nothing on that, that was easy. GERN, $2.60, is fine, but the float, 158 million shares, super high. Popped up, dropped down, consolidating.

Going down a little further. CETX, this one I was watching out of the gates, because at $3.50 I knew that it had potential to move back up to $4. 3.90 was the pre-market high. That’s 40 cents. That’s a bigger window, so there if I can capture half of it, I’m doing pretty well. I got in this for a gap-and-go-trade. My entry was over the half dollar of 3.50.

The bell rang and we opened at 3.51. We dropped down to 3.44, we hesitated for a moment, and then as volume came back up over 3.47, I jumped in and went from 3.47 up to 3.66. We hit a high of 3.74 and then we pulled back. Right in there, there was enough potential from 47 up to 74, 25 cents, to capture profit. On that one I finished with $460, so not bad, but obviously it couldn’t hold that level.

From that point I was basically just sitting tight and waiting and then CYCC hit our scanners and you can see here how all of a sudden this thing surged up from 5.80 up to 6.80.

When it surged up I was like, “Okay. This one has potential,” and I looked at the daily chart and I said, “Look at that. That is the first day to make a new high.” That’s that pattern that we look for. Once I recognized it was the first day to make a new high and we had a strong pattern, I jumped in. I waited on the first little pullback here.

This candle dropped down, it dropped below 6.50 and as it came back up, I got in at 6.50 and we popped up to a high of 6.90. We pulled back and then I added right here for the one minute micro-pullback and we got the move up to 7.25. My initial entry was 6.50 and this had a high of 7.25. That’s a 75 cent window, right? If I can capture half of that window, 37 cents or whatever it is, that’s something I can work with.

That times 5,000 shares is 1,500 bucks, so I got in, I got back out, I got back in, started with 7,000 shares, sold through the squeeze. Added on this pullback right here, so added right at 6.80 for the break over 7. We got the pop up to 7.27, we pulled back, we got this second little pop here. Total $2,221.

I took three trades and I was green on two out of the three and it was easy. I mean, I saw it popping up, the one minute pullback was super easy, I got in a little early at the half dollar, because I saw the strong daily chart and I wanted to be aggressive on it. Today was one of those days where I took a couple trades and I was able to book some profit.

Green is good, so $2,500 in the first 30 minutes of trading is … That’s always a good day and a great way to start the week. I’m glad that I was able to stay disciplined, stay focused, and not let myself fall into a bad kind of downward spiral. It’s so easy to have one big loss, and then have it start getting you emotional, and then you’re trying to make it back, and all that sort of thing.

Yeah, I feel pretty good about this start to the week. I think that my job right now is just to focus on consistency, not be too aggressive, look for A-quality set ups knowing that when I hit them, those will give me the big gains.

I think today overall is a great, great start to the week. All right. With that, we’ll end the midday recap and we’ve got class at 4pm today. Today’s class nine of The Day Trade course and we’ll be going over stock scanning and I’m going to show you how to build scanners just like these ones here and I’ll share with you all of my scanner settings.

All right. That will be at 4pm, so students I’ll see you at 4:00 and everyone else, I’ll see you first thing tomorrow morning for day 68. Hopefully, it’s another strong day. Hopefully, we have a couple good opportunities, but the most important thing will be to remember to manage risk, to trade smart, not to be overly aggressive, just to let the market come to me.

Okay guys, so that’s it for now and I’ll see you all first thing tomorrow morning. All right, thanks guys.

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