+$5,123.26 In 30min Trading My Strategies
What’s up, everybody? All right, well I want to get this recap done early here, because I’ve got a stack of books that I’m going to sign and start sending out to our inner circle students. I’ve got a little bit of a project this afternoon. I hope my wrist doesn’t get too sore. Today’s a pretty good day, finishing the morning up, $5,123.26 day trading my strategies. Not bad.
I’m on day 14 of the hot streak. I’m up about $27,000 in the last 14 days, which is fantastic. I’m loving this October momentum. Writing this down in the calendar, 26 cents. The 190th day of the year. It’s my 14th consecutive green day. Yesterday was day 13. I always say day 13 is the hardest. We got through it. Now we’re on day 14, so … onward and upward.
My longest hot streak ever was 56 consecutive days. I’m only 14 days in, but I have a feel I could do it again. We’ll see. That would take me through … 56 days would take me through the end of the year, for sure. Actually, the last hot streak started … I think on Thanksgiving and continued through February, or something like that. That was the 56 days. That was 20 … I want to say 15, through 2016. Then, here in 2017, I was doing … I wasn’t doing consistency challenge, I was doing a … small account challenge.
Anyways, yesterday was a choppy day for me. I started the day off red and had to work my way out of the hole. I never liked having to do that. It’s not a fun way to start the day; but it is what it is. That was yesterday. I finished the day with $577, which was me recovering about … I don’t know, $3,200 from being down 2600, to being up 577.
Today, my very first trade was on [SRAX 00:02:27]. It was based on continuation, because yesterday on Tuesday, I had some really good momentum. I wanted to jump in it looking for continuation. I jumped in shortly after the bell rang at three … Sorry, 439, I was getting in, anticipating a possible break over this little pre-market pivot, which was 434. I thought if we could break over that level and get up towards 450, that would look pretty good for a breakout.
I jumped in it and this … is what happened. I got in at 39. We pop up to 64, I’m like, ‘Awesome. Very good.’ I put out an order to sell some at 65. Then, it dropped from 65, all the way down to 405. It dropped 60 cents, and it happened almost instantly. I was like, ‘How is this possible?’ Immediately, I’m down $2,000 unrealized. It was instant. Of course, it ends up popping right back up to 46, and I’m able to sell it on the ask at 46, 41, and 39 … or, yeah, 45. I ended up making 380 bucks, but I was down instantly; and then it popped back up. That right there is one of the reasons … and this is for better or for worse, but I don’t use live stop orders; because I would have gotten taken out.
The thing is, my stop would have triggered, and I would have gotten slippage. If I had a stop at let’s say, 29, 10 cent loss, you can guarantee that I would have been filling at 415 and 410. There’s no way I would have filled at 29 because of how fast it dropped. I would have ended up losing 2,000 bucks; even though I could say, ‘Well, I had a 10 cent stop, which should have only be $750.’ The slippage would have got me.
What open happens is we get these wash-outs, and then the stock is due, pop right back up. I like to give them a chance to pop back up. In this case, it pops back up. I was able to mitigate the loss and actually turn it into a small winner; which was good. I think that was good risk management. Now, on the flip side, there are certainly times were stocks drop 60 cents like that, and then they keep going lower.
You end up, fuck, just saying, “All right. Well, I guess I just have to bail out.” You lose 70 cents, or 60 cents, or whatever it is. Again, you think, ‘Well jeez, if I had that hockey, or if I had that stop, I would have stopped out sooner.’ But, you have to remember, you would have gotten slippage. You wouldn’t have only had a 10 cent stop. You would have had slippage. You basically have these two sides. On the one hand, a live stop will get you out of the trade. You’re going to realize the loss, but you’re out of the trade. On the other hand, if you don’t use live stops, you have the opportunity for it to drop down, bounce back up, and get out on the ask, and kind of manage the position.
At the end of the day, which strategy costs you more or saves you the losses. The only way to really know that would be to try both for a period of time, and then see what happens. For me, I’ve just always preferred to use mental stops; even though there are times, like yesterday on DFFN, where stocks wash out really quickly ad then … all of a sudden, you’ve got to try to mitigate the loss.
This is one of the challenges. I think the important thing is being able to prevent yourself from having that deer in the headlights reaction. Even if you do have a loss, you’re able to manage it and handle the situation, rather than just stare it as it gets bigger, and bigger, and bigger. Or, react the wrong way, like averaging down, adding to it for when it bounces back up. That’s not something that I ever do. Anyways. SRAX was a close call, but ended up being a small winner. It actually bounced all the way back up to 59 and then it dropped back down to 380. Just a really … not a clean, easy stock to trade at all. That was a little bit disappointing.
Next trade was OPTT. Now, on OPTT, … this one I felt a little frustrated with because I could have traded it quite a bit … I could have gotten in quite a bit sooner. The place I probably should have gotten in was on this one minute pull back that was right here. That one minute pull back with the high of 204 is where I probably should have gotten in. That’s where I was thinking about getting in, but I hesitated because we had a really big seller on the ask. We had 25,000 share seller. I was thinking this was going to be a problem. I didn’t get in there. It ends up popping up to a high of 240, and then pulling back. I got in on the second one minute pull back right here, my entry was at 39. This was … It popped up to 45 and did a false breakout, and reversed.
On this one, I said I have a 10 cent stop. I press the bail out key at 29, and I realized I was no longer … My mouse was no longer on the window. I was no longer highlighted on the right stock. My hot key didn’t work. I mouse over, I tap the level two, I bail out. I ended up selling at 23, so I lost an extra seven cents. What should have only been a $1,000 loss, ended up being 1700 because I just … didn’t have my … I wasn’t highlighted on the right level two window. That was annoying, but that happens sometimes. It’s just the cost of doing business. That was OPTT.
The next trade and the last trade of the day was DRIO. DRIO was on our scanners. Often times when I see stocks hitting the scans and … showing me the color of … it’s up 8% in the last ten minutes, I want to understand what’s going on with it. I quickly go over to Market Watch and I check on Market Watch, and I see that there’s news on the stock; so let me pull up the headline. … Let’s see, I’m going to move these books over. All right, so the headline on this one … We had news out … Now, the news was out at 8:00 a.m., which was early. I hadn’t noticed it in the morning, even though DRIO was actually gapping up slightly. I just hadn’t noticed it.
A little bit of a gap. News out at 8:00 a.m., press releases. DRIO gained CE mark for iPhone 7 and iPhone 8 smart glucose meter. Any time you have a stock that has a headline that includes Apple, Facebook, Google, … Alibaba … big, big companies; it’s a big deal, especially for a small cap stock. When I saw that, I was like, ‘Oh my gosh, this is … That’s why it’s spiking up. People, for whatever reason, didn’t notice it earlier and now they’re noticing it, and now it’s moving.’ For the people that saw it earlier this morning and have some type of scan set up where they’re able to … see any headline that has to do with Apple, this would have been a great opportunity. In any case, as I saw it, it was already starting to spike up. I jumped in at 74. I was immediately thinking $3, $3 target, maybe 350. I was thinking this had a lot of potential.
I jump in at 270, 273, 275. It squeezes up to $3. I try to add more at three. It ends up getting halted on a circuit breaker. It’s now … I filled 174 shares and now it’s halted on circuit breaker. It resumes at … five minutes later. Circuit breaker halt. I started with 10,000 shares, same as OPTT; except SRAX was 7500; so share size roughly the same. Then, it resumes at 955. I add another 2500 shares. It pops up to 344, 345, 347, 364, and I’m scaling out. I sold 113 shares at 364. High of day on this was 364. I actually got a little bit at the very, very high of day, which is always nice.
Then, we had a one minute micro pull back. I added on the one minute micro pull back at four … Actually, I added at … Let’s see. … I added at 46 and 49, … and looking for the break over the half dollar, and retest of high of day. I ended up stopping out of that at 28 and 23, and 17. I actually was up about 7500 bucks, and I gave back about 900 on that last trade. I’m finishing the day at $5,123.
To give you an understanding of why I take those one minute pull backs. You can see here, those of you on Facebook, … $5,123. Last trade was 10 a.m., so that’s $5,000 in 30 minutes. Not bad. This is DRIO. My one minute pull back here on DRIO didn’t work super well right here. The one minute pull back I took on OPTT also didn’t work super well. It just sort of so happened that the two that I traded today, and I’ll pull this back so I can show you. It didn’t work out super well. This one didn’t work out well. The first one did.
Let’s look at SRAX from yesterday, because this shows a really good example of why I like the one minute pull back, and why it can be a really strong set up. This is SRAX going into the close, squeezing up from $3, one minute micro pull back. This is just a little pull back on the one minute chart. That’s an opportunity to get in a strong stock, and boom, it goes higher. Entry here was at 430. The squeeze was up to 575. That’s why I like that set up. Of course, there’s no set up that works 100% of the time. If we found that, then we would certainly be … We would have found something that no one else in the market has ever found, a strategy that works 100% of the time. It’s just not there.
You find a strategy that has a high enough accuracy that you’re willing to be aggressive on it. The one minute micro pull back is maybe 65, 70% successful. I say that … just based on my own metrics. In the last … two weeks, for the month of October, my accuracy right now is just under 83%. For every ten stocks I trade, I’m right on eight of them, and I’m roughly wrong on two of them. That’s accuracy that I feel really good about.
One of the things that I’ve always really been a advocate of is … taking profits when you have them. This is the interesting thing about accuracy is in a sense, you can … you can very easily change your accuracy. The number of times you’re right versus wrong. One of the ways that I’ve been able to boost my accuracy is whenever I take a trade, and I am up 10, or 15, or 20 cents, it’s very common that I start to sell out; sell half, sell another quarter, and adjust my stock to break even. If I get into a trade and it goes up 15, 20 cents, 90% of the time, that trade will be a winner. It’s much easier to predict a stock that’s going to make a 15 to 20 cent move than to predict a stock that’s going to make a one point or a two point move.
If my focus was instead not selling until I hit 50 cents, my accuracy would go a lot lower; because achieving 50 cents on even a $5 stock is a 10% move. Now, I, in total, my entry on DRIO was at 274 and it went up to 364. That’s a huge percentage move, but you don’t see that every day. If I change my strategy to only selling when I hit 50 cents or whatever, my accuracy would go down. On the flip side, my average winner would go up because I’d be selling for so much of a bigger win. The end P&L might not be that much different. What would be different is my confidence level. I feel really confident when I trade at 68, 70, 75, 80% accuracy. There’s a great feeling in knowing that eight out of ten trades I take, I’m going to make money on.
Whereas if your accuracy is, let’s say five out of ten, you’re 50% accurate. Even if you do have home run trades, there’s just that kind of added pressure when you get into a trade that there’s a good chance that this is going to be a loser. That can make you hesitate a little bit more, and then because you’re hesitating, you can end up missing opportunities. Having confidence is something that, in a sense, you can create for yourself by focusing on a strategy where you take profit when you have it.
Again, that’s not for everybody because not everybody is going to be really quick with the hot keys. Not everyone’s going to want to take 15 cents when they have it, especially if you’re trading a $200 stock like IBM. If you’re trading high price stocks like that, 15 cents, it really isn’t probably even justifying the risk that you took to get into the trade. With a higher price stock, maybe you’re thinking 30 or 40 cents is going to be more realistic; so these things are relative. It’s something that I encourage you guys to think about a little bit with your own trade, because there is a lot of value in building that level of confidence. It makes you more likely to jump into trades, to be aggressive, to not hesitate and … I think that that can be good, especially in a strong market.
Anyways. Here we are today. 5,000 bucks. Basically, with one trade, I hit my weekly goal: $5,000 a week. $1,000 a day, $5,000 a week, is pretty good. Now again, I say a $1,000 a day is my goal. I always tell you guys in the classes that your weekly goal should be the daily goal times three; because you should anticipate that one day you’re going to hit your max loss. There’ll be a day where, let’s say I lose $1,000, and then that has to come out of the profit.
For me, though, I just sort of figure … $1,000 a day is my daily goal, but I know on a good day, I’ll be at $5,000. Last Friday, I was at $6,000. … Let’s see. Last Monday was $4,000. A couple Fridays ago was $8,000. I know when I have a good day, I’m going to far exceed my $1,000 goal. I just set $1,000 as kind of the line in the sand that I’d really like to hit each day if possible. If I have three good days in a week, or even two, I can probably hit my $5,000 weekly goal. $5,000 a week is about $20,000 a month; which is about $220,000, $240,000 a year after commissions. That’s where I finished last year, so that’s kind of … that’s sort of the goal that I set for myself. We’re right on track here. I’m at … let’s see, $193,000 on the year right now; with $159,000 of that in my small account that started with $583. From $583 to $159,000, that’s … pretty awesome. Average daily gain, let’s see … I’ll just divide it by 190 is $1,017 per day average. Pretty much right on track, $1,000 a day.
All right, so anyways, that’s about it for me. I’m going to sign some of these books and get these sent out to inner circle students. We’re going to be hosting our spring inner circle seminar in March. We’ll be sharing some info with you guys on that, so you’ll be ready to join us. This last one was a lot of fun. It was really great to spend time with everyone. Looking forward to doing that again in March, and starting to get things organized. All right, so I hope you guys all have a great afternoon, and I’ll see you first thing tomorrow morning. All right, bye guys.
Oh hey, I didn’t see you there. Well, I was just working on the dream board for my next home run trade. Hopefully it comes soon. Until then, make sure you subscribe to get email alerts any time I go live or upload new videos. Until then, happy surfing.