Warrior Trading Blog

Finally a Big Green Day +$11,898 | Ross Trade Recap

All right, I’m back up almost $12,000 today, $5,000 in the main account, $6,900 in the IRA account. Boom, boom, green trades on OPTT. That was the big runner today. I’m really impressed with the momentum. The stock was up, I think, around 85%, 90% pre-market on news with a low flow price of under $10 above average volume. It met all my five criteria for being a stock with a lot of potential.

The first trade ended up just nailing at $2,400 in the first 10 seconds of the day. I got the account up to 5,000 before I realized, “Hold up, I’m in my main account, not my IRA. That means I got to pay income tax on that five grand.

I switched over to the IRA at 9:35 and started the day over. Basically, starting from zero in the IRA and made another $6,800, 900, in that account, so just some awesome action. I could have done a little better on it I suppose. I sold some of my trades a little on the early side, but you know what, after the couple of weeks I’ve had, paying myself is the right thing to do. I’m going to remind you guys. Every day, you’ve got two choices. You’re either going to leave money on the table, or you’re going to give back profits. You’re always doing one or the other, and it’s a question of mentally which one you feel better about.

Do you feel better about making 15,000 and losing three grand and finishing up only 12 grand, or do you feel better about being up 12 grand knowing, “Well, I guess I could have been up 15, or 16 or 17 if I kept pushing it or if I held longer, but hey, 12K is great.” That’s the battle, and FOMO can really kick when you’ve got a stock like OPTT today going from $7 all the way up to 16 bucks. I mean, that’s a huge move. I’m just glad to see that momentum. Even right now as I’m doing the recap, it still looks decent. I’m not sure it’s going to retrace during this pull back and end up getting all the way back up to the high date today, but I’ll keep it on watch. It’s still holding up really well. It’s right around $13 now. I think there might be something still left in it, and even if not, it’s a really good sign for momentum and hopefully a good sign of things to come here Thursday, Friday.

I’m finishing my fifth consecutive green day. I want to have a sixth green day tomorrow, a seventh green day on Friday. Keep the momentum rolling. That’s what it’s all about. Enjoy the recap today, guys. As usual, any questions, any comments leave them below and give me a shoutout of how you did on OPTT. We did a survey of our students. 85% of our students who traded OPTT made money on it. That’s what I love to see. Another green day not just for me but for those of who you guys that are learning the strategy. Great job. All right, I’ll see you guys first thing tomorrow morning.

All right, everyone. We’re going to do our mid-day market recap and go over the trades from today. OPTT (Ocean Power Technologies) this was the big one today. I am impressed. I really am. I wasn’t expecting to see this type of follow through on a Gap and Go setup. The last few Wednesdays have been pretty difficult for me, so I’m also really happy to break my Wednesday red streak and be green here on Wednesday, so middle of the week, fifth consecutive green day. I traded OPTT in my IRA, so there’s the profit right there in the IRA account. I also traded it in the main account. There’s my profit in the main account, so really solid follow through.

My first trade on this one was just like Gap and Go setup, buying the dip and selling the rip. This was our pre-market pattern. When we did our watchlist this morning as we do every morning at 9:15AM, this was the top of the watchlist. This met all of our criteria for being a stock in play. It was below $10. It was already up 76% pre-market, showing that it had a lot of momentum. The float 416,000 shares. This stock has 13 million shares of volume today, so it’s done actually float rotation. It’s crazy. It’s just rotating the float, churning, churning, churning. Demand today pre-market was 400,000 shares versus yesterday’s volume of just 86,000 shares, so already five times average volume before the bell even rang. The headline here was that they won a contract with a leading oil and gas operator, so this is the catalyst that gave us the opportunity.

Now, when I first saw it at pre-market, it was at seven bucks. I was just like, “Look, here’s the deal. I’m not going to buy this at pre-market. The risk is just way too high. I don’t trust it. I don’t feel like it’s a smart move. I haven’t been trading pre-market. I’m not going to start doing it today. I’m just going to leave this alone.” Of course, it ends up going up to 7.50 and then making this really kind of nice move around 9.20 all the way up to $8.60, and then topping here at $8.88. At this point I just felt like, “Uh, it’s going to be too extended. Now the bell’s going to ring, and this is going to do the same thing as SXTC and a couple of the others last week. The bell’s going to ring, and it’s going to just sell off. That’s it. The whole thing is just going to be done.”

That’s what I was expecting. I was expecting to be disappointed but, at the same time, I guess I was cautiously optimistic just that this one actually had a good catalyst, and so my very first trade was in the first basically 10 seconds of the day, so we’ll pull this back all the way to a 10 second chart just to show this very first trade, so we’re going to go back here. I’ve got my video of it, so I’ll pull that up as well. Let’s see. Let’s just adjust this chart. This was like this kind of crazy start to the day. What’s up with this video? All right, what’s going on here? I’m going to put this up here like this.

All right, so here is 9:28, so we’re getting closer to the bell ringing. We’re going to fast-forward this just a little bit. The bell’s about to ring. You know, I already said, “Look, this is doing a one-minute pull back pre-market.” Pre-market we’re having this little pull back right here, so I’m liking it over $8.88 to over $9. On this one I was ready to go with an order at $9. We’ve got about 10 seconds to the bell. 10, 9, 8 … I’m just doing a final recap. This is the one I’m watching. Five seconds, three, two, one. Here’s the bell. I’m looking for a dip. On this one this was the green I saw on the tape. I saw all that green on the time and sales.

When you see the time and sales light up like that, it’s all bright green because all of these orders are actually going through above the ask price. That’s when I was like, “Hmm, I got to punch this. I can’t wait. If I wait, I’m going to miss it.” But I’m going to go with a smaller size. I’m only going to take 6,000 shares because I don’t want to risk that this totally fails on me, and I’m going to get out quick. As soon as I’ve got profit, I’m going to get out. Just like that, $9.34 on the ask. I pop an order on the ask, $9.40. I pop the order there, $9.39, sell half and take some profit. The chart hasn’t even updated. This is how fast it is. We’re seven seconds into the day. Look at that open P&L right there.

I’m going to try to lock it up. That’s my job. Lock up the profit, getting filled, hitting the bid. There we go. Locked it up. This is 11 seconds into the day. I mean, this is crazy. Now, at this point I didn’t even realize I was in my main account. Sometimes I forget which account I’m logged into, so I take the rest of it there. Here’s the deal. When I first log in in the morning, by default I’m always on my main account, and I have to click this and go to the IRA. But when I first log in, this is the only thing that tells you or indicates which account you’re in, and I forgot. I just forgot to switch, so my first couple of trades were in my regular account, and then I was like, “Oh, I better switch to the tax free account,” which is my IRA retirement account.

All right, so let’s go back to this video here. Let’s see. What’s this? Oh, where’s that video?. All right, so here we go. This was 21 seconds into the day now. I was impressed we had that quick move up to 9.40, and now I’m watching it to get back in. We’ve got this dip. At this point I’m like, “You know what, this might be all we get.” If this thing breaks $8, that’s probably done, but it’s going to hold, and it will go higher. Now it’s back at 9.50 right at the highs. See how there is a hidden seller right there at 9.50. Lots of buyers, but it is not breaking that level. That’s often a little bit of a red flag. Now over a million shares of volume, a quick drop back down.

But what we’re doing right here on the one minute is we’re consolidating. We’re consolidating sideways, and I’m waiting for the first candle to make a new high. Let’s watch it. Oops, let’s go back here. All right, here I’m anticipating the first candle to make a new high will be a break over 9.50, and so I jump in there at 9.39. Now what I’m doing here is smart and not to pat myself on the back. I’m reducing my share size. This is only 3,000 shares, so I pull my share size back. There’s 9.50. I’m looking for the break at 9.50, 9.40. The moment of truth. Is it going to break over 9.50? I only see red. There’s green. There we go. Look at that. Just like that. I mean, it’s crazy.

I’m in this at $9.38, and boom, there’s 10.60 on the ask, so of course I put orders on the ask. I go one cent under the ask, and I try to take some profit, and I’m taking profit. I’m getting filled. I’m not filling all the way at the top at 10.60, but I am getting some fills there. Booking some profit, and just like this now we’re two minutes into the day, and I’m locking it up. I’m looking for a back over 10, taking a little profit. My goal, of course, is to minimize risk as much as possible. To capitalize on volatility while taking as little risk as necessary. This is ends up kind of consolidating here, sell under a half, and then that’s it in my main account.

At 9:34 five minutes into the day I’m like, “All right, that’s a good day. I’ve got my daily goal, and now it’s time to start over in the IRA account,” so boom, I started over in the IRA account. Now from this point forward I’m trading in the IRA. This continued to show really good momentum. This is the only stock that I traded today. FUV is on the scanners. Nothing else today ended up being in play. Nothing else on the high day momentum scanner, nothing else on the Gap scanner. OPTT was the only one that gave us good opportunities. This ended up being the biggest move of them all. It pulled back and then broke over the volume weighted average price, and this is what I traded in my IRA account, so really some impressive moves.

I got a little bit of false breakout right here. I did trade it and gave back a little on it, and then we started to break down here. This is now holding the volume weighted price and the 20 moving average. At this point this is still pretty bullish. It’s still up 164%, which is impressive. I’m not sure that it’s going to go through the highs, and at this point I think I’m just going to say, “Hey, this is a much needed green day. No reason to overstay my welcome. I’ll just come back tomorrow, but overall, some really nice action today.”

The part of me that wants to keep trading is the part of me that feels like, “Well, if this is the only strong stock of the whole week and it does end up going to 17, 18, 19, 20, I really don’t want to miss it,” but that’s the FOMO starting to kick in. That’s another good indicator to say, “You know what, green day is a good day.” This is the fifth consecutive green day, so I’m very happy with that. It puts me in a really nice shape for the month of April, which is great. I’m not trying to think too much about where I’m at on the challenge. Obviously, I’m making progress. I’m moving my way back up. I’m happy about that. The exact number of where I’m at, I’m not keeping that in the front of my mind right now.

I just know that if I’m having green days I’m doing well, and that’s all that really matters. I’m certainly not going to be crossing that big line anytime today or tomorrow, so it doesn’t really matter. I just got to focus on maintaining my balance, being centered and continue to have green days like this. With the fifth consecutive green day, I would like to be green again tomorrow and Friday and finish up the week with two more green days and go into the weekend feeling good. That’s what I’d really like.

Remember I’m always buying on the ask, so if I want to get in, I’ll just put ZVZZT. This is a NASDAQ TEST STOCK. Just for instance, if I want to buy this, what do I do? I put my hotkey back on today, so I press Shift one. Just like that I’m in 3,000 shares. Shift one, just like that I’ve got 6,000. Shift one, just like that I’ve got 9,000. That’s how quickly I can trade. Control X, I’m going to sell half out. Control X, another half, another half, another half, another half. That’s how fast you can trade. If you want to trade that fast, you can trade that fast if you have the right software.

Obviously, having the right software is important. For me, that’s Lightspeed. Contrary to what some people say, I don’t get paid by Lightspeed. I don’t get paid when you guys open accounts there. I don’t get affiliate commission or anything like that. They don’t pay me. I just genuinely like Lightspeed. I’ve been there for a long time, and it’s been a great platform, and today is another green day.

Anyways, I guess this is going to be about it here for this morning, so I’ll shut it down. I’ll be back at first thing tomorrow morning live streaming right around 9:00, 9:15 for the pre-market watchlist. Johnny, I am using a Roth IRA. I pay tax on the seeds, not on the growth. When you contribute to a Roth IRA, you have to pay tax on your contribution. I contributed I think 11,000 or so to my IRA in total, or maybe it was 17,000. I can’t remember. But anyways, I made this contribution over the course of three years. There’s a limit to how much you can contribute each year. I contributed about 17,000, and I had to pay income tax on it, so I paid my income tax on it and made a contribution.

But now the growth is tax free, and the withdrawals might take the profit out. It’s also tax free. Now, with the traditional IRA, when you make a contribution, you don’t pay income tax on the contribution, so it’s basically you’re contributing money pre-tax, which is great. It’s great for saving money. If you’ve got kind of a regular job and you’re like, “Yeah, I’m just going to easily save money. Why pay tax on money that I’m putting into savings?” It’s an incentive. But you’re going to pay tax on the growth, or you’re going to pay tax on the withdrawals when you do take profits out of it. That’s the downside.

You can at anytime convert from a traditional to a Roth, and that’s actually what I did. I made my conversions both to traditional, or I made my contributions to traditional, and then I did what’s called a backdoor conversion and converted the traditional to a Roth. I paid my tax on it, and now from this point forward it’s a Roth. It’s pretty straightforward stuff. I actually have a YouTube video, a whole class for Warrior Pro students where I go into how that works. It’s like an administrative thing. It’s really not that complicated. You just do it and then it’s done.

Anyways, live trading from today is going to be uploaded to the live trading archives for Warrior Pro students, so you guys will be able to go back and re-watch it. OPTT, nice move. This is one that has done well for us over the years. I mean, this is not the first time we’ve had a nice win on it, so I’m happy for that. I’m grateful for another green day, and I’m going to try and come back and do it again tomorrow. All right, everyone, so I’ll see you guys first thing tomorrow morning.

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