Warrior Trading Blog

Difficult Day of Trading -$6,400 | Ross’ Trade Recap

ross_5.14

What’s up everyone? All right well I guess it was bound to happen sooner or later, Red Day recap. This is going to be well gosh you know what? This is actually my first Red Day in the month of May. It’s been a while since I’ve had to do a Red Day recap. Last one wasn’t, well was back in April. I guess it was the last day of the month. Today’s a Red Day recap, down $6400 dollars, really don’t want to be that far in the red. Where did things go wrong? Well you know what? I would sort of look back and say that the last few days have been very difficult. Friday, not easy at all, only made $29 before that trade on Uber, ended up finishing the day at 900. Yesterday, almost no progress whatsoever, only $130. Today, by 9:45, I was actually down about $500. I just wasn’t feeling the momentum. Then, NVAX hit the scanners and started squeezing up. When it first hit, it was about 680. I think it was already up about 50 cents.

I was like, “Well, the float’s too high. I know it’s a recent reverse split, but I don’t know it’s, I don’t know. I think I’m going to leave it alone.” Next thing I know, it’s in seven, 710, 720, 730, 740, 750, 767. I’m like, “Well Jesus thing is moving, and rate of change is what I look at. First one minute pullback, I jump in. It pops up only about five cents, and then drops 50 cents, so ugly, so brutal. Just like that, I lost $5500 on that trade, or really just 5800 or whatever it was. That put me down to 6400 on the day. Now, looking at the stock, 15, 20 minutes later, it dropped down, it popped back up, dropped down and then ended up going to 790, which is super frustrating. The reality is rules are rules.

I would say on this one, I was aggressive on share size, maybe too aggressive considering that it float wise didn’t really fit into the perfect criteria. Although it was reverse split, recent reverse split, it was moving quickly. I guess it did end up going to 790. It’s not that I had totally the wrong idea, I just was a little too aggressive. When you have a one minute micro pullback and it pops up five or 10 cents and it flushes 50 cents, that does happen sometimes, and it’s always disappointing. When it happens, I usually am like, “I’m done with that stuff. The stock has betrayed my trust. I can never trade it again.” For that reason, even though I could have switched to my other account and kept trading, I was like, “No, I’m done.” My daily max loss is, if I’m down below 2000, I don’t keep trading.

If I’m down 2500, I will sometimes go ahead and trade in my second account. I have a 2000 max loss on both accounts. That puts my daily max loss at about four grand. When I have one trade that just wipes it out, then I’m usually just like, “You know what? I don’t want to really get into trying to dig myself out of a hole that’s that big at 10:30, 10:45, 11am. It just doesn’t usually go well. Writing’s on the wall. Today was choppy, and that last trade could have been avoided if I traded with smaller size but the thing was moving, it was taking off. It looked like it was going to go right to eight dollars. It just faked me out and then it went. That’s the way it goes. Sometimes live to trade another day. It’ll put me up still around $42000 on the month something like that, really can’t complain. We’ve got still here a solid couple weeks left in the month so lots of time to still get myself back on track.

You know what I’ve noticed on other months, sometimes I’ll have an incredibly strong start, and then it just totally dies down. This week I’m down 6400 on the week, versus making 30000 last week. It’s like totally different. I think that happens a lot. You’ll have a week or two weeks of really, really hot momentum, and then things just go quiet. Guys sit tight, wait for those A quality set ups, be aggressive on those. This one wasn’t A quality. I was a little too aggressive on it. I’m going to pay my dues, sit back a little bit, going to take a couple days to dig myself out of this hole, but it will happen. I’ll finish the month most likely back at all time highs on the month somewhere over 50000, maybe 60 75 is still within range all right? As always, questions on today’s trades on the recap, leave them below. I’ll come back here and answer them this afternoon, and I’ll see you all first thing tomorrow morning 9:15 for your marketing analysis. All right, see you guys then.

All right everyone well today is a Red Day recap. This is obviously a little disappointing. It’s the first Red Day recap of the month of May. May has been a great month overall. It’s been a great month. The last few days have been a little on the difficult side. Let’s start by kind of talking about what was on the gap scan this morning, and then how that ended up turning into a Red Day. If I go to time frame here historical date, we’ll run this gap scan for 9:25 am. Let’s see, let’s go look at the top leading gapper. Leading gapper was SAEX. You can see I’m down $715 on that stock. I tried to do a gap and go set up on it, which was buying the first pullback, the first one minute candle to make a new high. Right here was the high pre market high. I bought right here at 425. I jumped in looking for the first one minute candle to make a new high here, and anticipating a break over 430.

It hit a high of 434. That’s not really what we would call the best resolution. There was an opportunity to sell for a small profit, but then it flushed down and popped back up, and I sold some of it break even, and some of it as it popped back up right in here. Basically in the first minute of the day today I was down 700, which obviously is not ideal, but sometimes happens and isn’t the end of the world. I can often recover from a red trade like that. It didn’t put me down past my max loss. SAEX was our leading gapper. I was mindful of thee fact that our gapper’s only up 20%. That’s not 40, 50, 60%, it’s only 20%. Leading gapper’s a little on the small side here today. 2.7 million share float. It did have news, although this stock also has a bit of a history of doing some false breakouts. 700 was acceptable. I didn’t want to risk big on it, and that was fine, so that was SAEX.

Second leading gapper WISA owning 19000 shares of volume, ended up opening lower. AYTU was also on the gap scan, only made 156 on that one. The thing with this is that whenever you have a stock that gaps up and then gives back most of the move, I’m always a little cautious on it. We have seen some days where stocks look just like this, and the bell rings and they go right back up to 290 or higher. It’s not to say it can’t happen, I just don’t usually expect it to happen. I took my first trade on it right here anticipating the break over the half dollar. I got in at I think it was at 45 or 46 as I saw volume coming in. The break of the half dollar was also kind of just this psychological level that I was watching, so jumped in it, only hit a high of 51 and then dropped back down. I got back out of that really quickly. Then I got back in it right here on this one minute pullback, and it hit a high of … no, no sorry. I didn’t get in on that one.

I got in on this one right here, okay? I got back in here for the break over the highs, and that ended up being another failed set up. That was this five minute set up right here. Only made $156 on two trades on AYTU, no follow through. SLDB, you can see I lost $37 on it. This one, kind of annoying to look at it and see that it actually has moved up quite a bit, but it was a gap down reversal. Generally, I’m cautious on gap down reversals because when the stock is gapping down 30%, it’s clearly a sign of weakness. There will be a lot of people that are underwater, and they’re going to try to just sell as it pops up. The trade that I took was right here on this one minute set up for a break over the high day of 614. As you can see, it broke by seven, eight cents, and then flushed back down, popped back up. I got out of that basically just below break even for a $37 loss, so that’s fine.

It came back up again and I was like, “No, I’m not going back in it.” It did end up popping up here again first to 22, and then to 43, but then it came back down here to 609. Seeing how it’s kind of popping up and then failing, popping up and failing, pops up and then it starts to open up here a little bit more around 11am. Whatever, that’s not home run potential, that’s base hit stuff. That’s going to be tricky in any case. I left this one alone, just not easy to trade overall, just annoying. This number right here, I think is the price of my last exit. I think that’s what that means, almost positive. It’s not the cost, it’s definitely not the average cost. I think it’s the last exit. Anyways, and then we had NVAX. At this point, before NVAX I was down 500 on the day, 595 actually. I was like, “All right, well you know obviously we’re not seeing the best follow through.” Then NVAX pops up and I see it squeezing. When I first looked at it, it was right about here.

I was like, “Well, jeez that’s up like 84 cents. I don’t know I mean it’s a reverse flip, but the flow according to Trade Ideas NVAX is 400 million shares.” I was like, “437 million share float, that seems kind of like it’s too high. Hey it is up 80 cents there.” I kind of pull it up and I’m watching it. Then it breaks 86, and look at this, it rips all the way here up to 767. Now I’m like, “Okay, this thing is clearly moving.” This one minute pullback right here I jumped into. More to this one minute pullback. It’s a brief one minute pullback. At this point, the stock is increasing in volume, it’s moving higher. It wasn’t yet forming a doji. I bought the first candle to make a new high. It pops up here to 758. It actually broke by 14 cents, and then it drops from 758 to 691. As you can see, I stopped out at … and I not only got in, I added. I got in and then added for the break over high a day. I was in at 44 and then added at 62 and 56.

This one I was being aggressive on. I was trying to scalp it, and they ended up finally stopping out of it down here at 27 14 99 97 and 13. In this one, this one minute pullback just ended up totally failing. It’s disappointing that it didn’t work better because this was a decent set up, one minute micro pullback, first candle to make a new high is right here, pops up to 58 and then flushes down here to 691. As I look at this, so I stopped out, took a big loss on it, and then it comes back up and as you can see here, the five minute set up, it ends up going back to let’s see, this was where was this? Back up to 58, which was right here, and then boom, it goes up to 790. It’s annoying, but here’s the deal. I have a max loss on my account. When I’m down below my max loss, I can’t keep trading. In this case, I was down below my max loss, so I couldn’t keep trading in this account.

I could have switched to my other account, but because I was down 6400, I was like, “You know what? It’s just not even worth it. I don’t want to make things worse. I don’t want to have, being down 6500 is a bad day. I don’t want to take another $2000 loss in my other account and end up losing more.” Just left it alone, it’ll be what it is. Generally, I don’t like to lose more than I make in one good green day. Looking at the calendar for the month of May, I’ve had some great days, two $15000 days, which were both awesome, an $8000 day, a $7500 day, and then a couple smaller green days. This is on average it’s giving back about three days of profit. My daily average so far this year let’s say 88, 89, 90. This is the 90th day of the year, and I’ve been averaging let’s see $2155 per day, which is not bad. Unfortunately, this does give back three days of profit, of average profit. That’s just sometimes the way it goes.

I’ll just have to keep the losses tight tomorrow so I don’t have a second red day, just kind of reduce the risk a little bit. NVAX it met my criteria of moving quickly from six all the way to 767, but that one minute pullback just ended up being a really big rejection. I wasn’t anticipating it, and ended up costing me pretty big. That’s part of the deal. It’s the way it goes. 10000 shares 50 cents and just like that you’re down five grand on the trade so being aggressive sometimes doesn’t pay off. I just was aggressive on the wrong stock today. In fact, if we look at this highest volume of the day was on that candle right there, and it was a red volume. Yeah I could have gotten back into it, but probably not worth it. Live to trade another day. I don’t ever want to lose more, I don’t ever want to take a loss that’s going to jeopardize my ability to keep trading. As of right now, I’m up about $42000 on the month, down from being up closer to 50 grand.

Let’s see, since my last Red Day, let’s look at how I’ve done. Since my last Red Day, I had made about $48000. That was a really nice hot streak, made $48000, crossed over the million dollar mark in my small account. I still have about $30000 of cushion between me and the million dollar level, and that was something that was really important remember? I said that I wanted to cross that million dollar level, and not dive back down below it. Even after today, I’m still up 30 grand off that level. Let’s say I have a couple days here of sideways, well I’ve still got a nice cushion here about 30 grand, and then that can open up for the next leg up. It is part of the deal with trading, you’re never going to be right 100% of the time. You’re never going to be able to avoid losses. I’m right just about 67 70% of the time. Today’s the day where I just got on the wrong side of a couple stocks, couldn’t get myself into the green and stay green. That’s the way it goes.

Always an opportunity to learn. NVAX probably should have just left it alone completely given that the float was questionable, but thought maybe it had a little more in it and pretty much bought it just a bit too high, but that’s okay. Be back at it first thing tomorrow morning as usual, get back on the horse, that’s what it’s about as a trader. It’s not about how many times you fall down. It’s not about how many times you lose. It’s about how many times you get back up and try to recover, and no doubt I will. This of course is a tiny loss in comparison to what I went through in March when I lost 50 grand over the course of about two weeks, and then had to spend the next six weeks digging myself out of the hole. I got myself out of the hole, and I’m back at all time highs, well before today. I’m now $6400 off the all time highs in my account, the small account being all time highs right around 1037000, so no reason and no right to complain, just got to take these things in stride.

All right everyone, so we’ll be back at it first thing tomorrow morning. Hopefully we’ve got better stocks on the scanners, and can at least have a green day and kind of clear the slate from today’s choppiness. All right, so that’s the game plan. See you guys in the morning. If you’re still watching, you must have really enjoyed that video. Why not subscribe and get email alerts anytime I upload new content? Remember, when you subscribe, you become a member of the Warrior Trading Family.