Warrior Trading Blog

Ending The Week With a Red Day -$659 | Ross’ Trade Recap


What’s up, everyone. All right, so here we are, Friday morning, you know, ending the week with a red day. I’m a little disappointed by that, but at the same time, I started the week on Monday with CANF up over $7000. Great momentum, but secondary offering in the middle of the afternoon, the stock drops 50%. And then we saw secondary offerings on about five other stocks this week, Tuesday, Wednesday, Thursday, and again today. So this has been a week where we have not seen a lot of continuation in the small-cap market, and it’s been a good week to sit a little bit on the sidelines.

Now, today I dipped my toes in the water and took couple steps, two trades, a loss on both of them, so I’m getting right back out. I’m not going to be aggressive, this isn’t the time to do that. It’s important to remember to trade the market you’re in, not the market you want to be in. I would love to be in a hot market where we’re seeing 200, 300% movers every single day, but that’s not what’s happening right now. So I can’t take the share size or be as aggressive as I would in that type of market. I know we all want to see hot momentum, but if it’s not there, it’s not there. So being able to be patient, to sit on your hands and wait for A-quality setups. Trade the best, leave the rest. That is an important skill to learn.

Now, I want to remind you guys, we’re having a Memorial Day Sale this weekend, all right. So, a lot of you guys know this, I’ve talked about it before, Memorial Day is important for me. My grandfather was a soldier in World War II, and my grandmother was a nurse in the Army. And when he got injured, they met, and you know, that created the whole story of my mom and her brother and sister, and of course me. So if it weren’t for veterans serving this country, I wouldn’t be here today, and Warrior Trading wouldn’t be here by extension. So we like to do something special for Memorial Day, that’s why we’ve set up a coupon code 30WARRIOR, so you guys can save 30% on your education if you want to join the Warrior Starter Class, the Warrior Pro Class, etc. So I really encourage you guys to check those out this weekend. Market’s closed on Monday, but hey, it’s a great opportunity to study up, because Tuesday will be here before you know it. All right, see you guys Tuesday morning.

All right everyone, so we’re going to do the Mid-day Market Recap. It’s 10:41 right now, and you know, my routine is to trade for the first hour. One hour a day, and you know, that’s worked really well for me for a really long time. So, I’m not going to overstay my welcome. I would love to finish the week with a really big green trade, but the last couple days have been pretty slow, and it’s important to know when to step back and when to be aggressive. And I think right now is a better time to step back. And the worst thing you can do is go into a long weekend, and of course the market is closed on Monday, with a really big red trade that now you’ve got to spend the whole weekend thinking about, you know, and kind of trying not to dwell on.

So I didn’t let that happen. I took two trades today, I’m down $660, which is fine for me, that’s not my max loss. It’s just a small red day. My max loss is $2000, and so being down $660 is not a big deal for me. This is one of those days that I’ll just say well, you know, we didn’t have a lot of momentum, and I didn’t push my luck, I didn’t get too aggressive. I just sort of stepped back, saw the writing on the wall, and we’ll be back at it on Tuesday morning. Which is, you know, the right way to trade. I would … you know, when we look at the gap scanner here, every day starts with a review of the gap scanner. Now unfortunately today, here on Friday, the Friday before a long weekend, we really didn’t have anything. The CNR I didn’t actually even see on the scans this morning. But looks like, I don’t know, something weird there. So this one was not on the list, this is a NASDAQ test stock, this is $0.50, this one’s too cheap. Now, CYCC did end up making a move here from $0.85 up to $1.02, so you could have done a gap-and-go trade on it, I just have a rule that I don’t buy stocks under $1.00, so I didn’t take any trades on that one. And you know, again, that’s me following the rules, and so that’s important.

So no trades on that … let’s see, we had … let’s see what this is. FSI, this is the first stock. Actually, they hit this low-float scanner, since [ESPOT 00:04:35] hit it at 9:33. So that tells you, we went an hour between alerts, like a full hour, which is ridiculous. This stock has no news, it’s not turnaround story, it’s already pretty extended on the daily. It is at all-time highs, but without a catalyst I think I’ll leave it alone. Now I’m okay with buying stocks without a catalyst that have been really weak for a long time, because you can have a bounce off the lows, and that is a technical setup. But seeing how extended this is, there’s nothing for me there. So, anyways, ESPOT, I did jump into. It hit the scans way back here at about 9:30, boom boom boom, hit the scans, I jumped in it at $1.18 and $1.20. Let’s see the high … so I was in at $1.19 average, it hit a high of $1.25 and then dropped all the way back down to $1.06. Popped back up, you know, sideways, sideways, I got out of it for a $409 loss. And that was on 9000 shares. So managed the loss down to only about 3.5 cents per share. Not bad, just didn’t work, got right back out of it.

OTLK, this one I jumped into with 12000 shares, and I bought it right here, anticipating the break over this level. And that was on this 5-minute candle right here, which ended up being a false breakout. It popped up, it didn’t work, it came back down, I got back out of it, $0.02 loss with 12000 shares. Not a lot of slippage on it, because it’s got a lot of volume, 11 million shares of volume today. So only $250 loss on that, manageable and those are the only two trades today. So like, you know, when we look at the scanner, you know, if I scrolled all the way down here, this is the entire day. So that’s definitely an indicator that the market has slowed down. And what I said this morning during the Watch List was that, the Friday before a long weekend can be hit or miss.

There are times where, you know, there’s all of us day-traders who do show up, we’re looking for an opportunity. And if one stock starts to take off, that becomes the obvious setup, and everyone ends up trading it, and that’s when we ended up seeing, in the past, stocks go up 100, 200, 300% on the Friday before a long weekend. It just sort of caught everyone off guard, and everyone got excited and traded it, and you had this huge move. But on the other hand, if you don’t have a stock that starts to take off, you know, eventually people just sort of get sick of waiting, and more and more traders filter out, and next thing you know, it’s 11:30, it’s noontime, nothing has happened. And now nothing is going to happen, because the morning is over, and it’s a slow Friday. And so that’s what today ended up being.

What’s good is that this is an opportunity for you guys to study, and for you to get prepared, because you know, Tuesday morning, next week’s going to be here before you know it, and you know, when we do see these great opportunities, it’s important that you’re able to capitalize on them. Now let’s look back at this gap scanner here … for Monday. So we look back at this here, do calendar, for Monday the 20th. And what was our leading gapper. Leading gapper on Monday the 20th, if I actually run the scan for 9:15 A- 9:25 A.M., the leading gapper was CANF, right here. Gapping up 40%, all right. Now pull up the stock, CANF, go back to it here on Monday morning. Let’s see, so we’ll go to right about here … and there we go. Pre-market high of $7.55, the bell rings, it squeezes up to $8.46, and I made $7,500. That was my best trade of the week. It was straight off the gap scanner. It was a stock with news, with a catalyst, everything else, this is the gap-and-go setup.

So when you have the A-quality setups, and you understand the strategy, you know the right place to get in, the right place to get out, how to manage your risk, you can do really, really well. And then on days like today, you know, it’s also important that you know when to sit tight. Because on a day like today, if you decide to get really aggressive, you can give back thousands of dollars of profit, and it’s totally unnecessary. So yeah, I’m giving back a little bit of profit, $660, but that is no sweat for me. I’m not worried about that at all, I’m still in great shape on the week, over $55,000 on the month. You know, life is good. It would have been great if we had some really hot momentum today, but we didn’t, and I can’t change that. You know, I mean, that’s kind of the way it goes with trading.

You’ve got to trade the market you’re in. We would all love to be trading in a hot market every single day, but that’s not the way it goes. Some days are really hot, some days are really slow, and the best traders are the ones who are able to capitalize on the momentum, and sit on the sidelines when things are slow. Sitting on the sidelines is tough, but it’s a great opportunity for you guys to study up. So, again, want to remind you guys, this weekend we’ve got our Memorial Day Sale running, and encourage you guys to use the coupon code 30WARRIOR, save you 30% on the chat room, the trading simulator, the Warrior Starter, which includes the chat room and the simulator, or the Warrior Pro, which includes the chat room, the simulator, mentoring and all of my stock scanner sellings.

All right, so hope to see you guys, many of you who are just in the chat room, get into the classes. Those of you guys who watch on YouTube and Facebook, who have been sitting on the sidelines, thinking about getting into the market, really hope you guys use that coupon code and become a member of the Warrior Trading family. So again, little bit of a slow day here, but not a big deal. It’s been a great month, and this is one of those things that I was talking about earlier in the month. The nice thing with having such a strong start to a month is that then, you’ve kind of, you know, you can coast a little bit. And days like today, you feel like ah, I don’t really have to push it that much, because I’m in great shape. So you know, let’s try to finish up the month of May strong, and try to get a nice cushion started for the month of June, so we can be in a similar position at this time next month. All right everyone, so hope you guys have a great weekend. I’m going to be out, obviously, on Monday, the market’s closed on Monday, but we’ll be back at it on Tuesday morning. All right, I’ll see you all on Tuesday morning.

If you’re still watching, you must have really enjoyed that video. So why not subscribe and get email alerts any time I upload new content? Remember, when you subscribe, you become a member of the Warrior Trading family.