Warrior Trading Blog

Finishing January With $117k In Profits!

Finishing January

Finishing January With $117k In Profits!

 

What’s up everyone? All right, here we are end of January, we just finished up the best month that I’ve ever had in my trading career, I’m going to finish the month with over $117,000 in profit. I put in a wire transfer today for a hundred grand, I’m paying myself, taking the profit out. I’m going to start my account tomorrow around $55,000 so taking a bunch of money out, just, man, what a month.

You know what? I started the month on a red day. First day I lost four grand and I’m ending the month on a red day down four grand. Sandwiched between those two $4,000 losses is about $125,000 in winning trades giving me $117,000 net profit. What a month. Can’t wait for February, it starts first thing tomorrow morning. I’m going to keep being aggressive because I have no reason to think February won’t be just as strong as January. In fact, last year February was my best month until things picked up again in November.

February was the best month of the year all the way until November so I think there’s a lot of potential that February will continue to be really strong. I’m pumped, I’m ready to get back at it first thing tomorrow morning, but what are we talking about tomorrow for? Let’s get into the midday market recap.

All right everyone, so we’re going to break down [inaudible 00:01:25] … Without doubt has been the best month of my trading career but which began with a red day and is ending with a red day so it’s just the luck of the draw, I guess. Sandwiched between those two red days are $117,000 in profits. I’m going to finish the month up right around 117, we’ll see when I get my statements exactly where it settles but it’ll be somewhere around $117,000. The best month of my trading career and it certainly didn’t feel like it was going to be that way when I started with a $4,000 red day, on the first day of January, and here ending the month with a $3800 loss in my main account and an $800 lost in my IRA is not how I wanted to end the month.

Having said that, I want to keep it in perspective. Yesterday was a $13,000 green day and today I did push it a little bit harder and fell into the red. Let’s break down the trades from today and really the one to focus on the most is HTBX, the one that I’m red on. The feedback I’ve gotten from a lot of you guys is that many times you learn more from my red day recaps than you do from the green day recaps so I want to really try to analyze those HTBX laws so you guys can learn as much as you can from it.

As you can see, I lost on this trade and lost my main account and on my IRA account. Let’s pull up the scanners here. HTBX was the second trade I took. I was down $25 on the day on CONE before the HTBX trade so I was slightly in the red but not significantly. HTBX hits the scanners at 332, 25, 38, and so when it hit the scanners I thought, “Okay, this is the one that’s starting to pop up. I’m going to jump in.”

I looked at the chart and say, “Oh yeah, it’s a fairly recent reverse split, it did pop up a couple days ago but it’s starting to curl up here so I think I’m going to give it a chance and jump in.” We’ll back this down to a second chart just so you guys can really kind of see the split second decisions that I’m making. All right, so we’ll zoom in here. All right, so it taps 340, it pulls back, and as it curled back up that’s where I press the buy button in my IRA getting filled … Actually, my first order was for 3700 shares. That order at 43 got rejected so I had to type in 3,000 and then press the buy bottom again and I got filled at an average price of 344.

Now I’m in, in my IRA account at 344. I switch, mouse over to my main trading account, have HTBX already typed in and I press shift one four times and I’m getting filled … Let’s see, at 60 and 63. That’s how fast this had moved up. Now, so at that point I was already up 15 cents in my IRA but of course I was just thinking basically, “Look, this stock is strong, it’s moving fast. I’m going to try to ride the momentum and we’ll see where it takes me.”

I’m adding here at the high of, basically 62. Doesn’t even show that it hit 63 but of course … Oh no, I guess, where did I fill? I’m sorry, maybe it was on this … No, I’m not sure, it was somewhere right around here, in any case. I’m in, in this area, with an average of 360 with 10,000 shares in my main account and 3,000 in my small account. I was consolidating and immediately when it dropped down to there to 38 I was kind of like, “Uh-oh, this might not be, this might be a problem.” I figured I’d give it a second to consolidate. It consolidates, it taps 370 and I’m thinking, “Okay, there’s the first candle, make a new high, popping up to 370 but it immediately drops back down to 345.

I just kind of was holding through this consolidation. It bounced off of 330 a couple of times where there was a good size buyer sitting there, a 10,000 share buyer. It kind of keeps bouncing off 330 and I’m like, “Okay, it looks like it might get back over the half dollar, back over 350, and if it does, if it breaks out of this consolidation sideways obviously I want to see it make a new high.” I’m holding right through here and then finally on this candle is when it broke down so it drops to 21, I press the sell button to sell at 310, that was when the price was right around 320 because I’m using a 10 cent offset.

The order gets rejected, and they got rejected because I had a … I don’t know why it got, it just got rejected. Order gets rejected, I then have to press it again at 317, the limit is for 307, again 10 cents below the current bid and I got filled at 317. I bail out of that for a 30 cent loss, $810 loss. I think one of the reasons I held this as long as I did was because I was holding it in my IRA account. I only have three trades a week, I feel like every trade has to really count, and I really didn’t want to take a loss.

I definitely didn’t want to stop out of it for a $200 loss only to have it run right back up. That’s kind of part of why I decided to hold it longer, I just sort of felt like, “You know what, give it a chance, let it consolidate, wait for the first candle and make a new high. What I should have done is I should have, I got into this too soon. This right here was a scalp entry. Getting in at 350 for the half dollar break is a scalp. You get in at 350, you sell at 360. You sell at 370 when you’re up 20 cents. If it doesn’t hold that’s fine, you stop out. This was not a good entry for a 25 minute hold.

A good entry for a 25 minute hold is the first five minute candle to make a new high or possibly a solid one minute micro pullback. Now that just … We didn’t get a good one micro pullback here, this was the rejection, it was a false breakout and that’s where I stopped out. I think that I have to remind myself to take, a, quality setups if I’m going to take a trade in the IRA because the fact that now I was in it I felt like, “Well, I don’t want to stop out in my main account and still be holding in this account. I want to see the whole trade through,” and so that kind of affected my decision here.

I sold in the IRA first at 317 and then I stopped out in my main account at 313 so the loss in my main account was 20 cents bigger. It was 15 cents bigger because I bought at 15 cents higher, and it was four cents bigger because I sold at four cents lower, so 20 cents times 10,000 shares is $2,000. Again, it just, it was a frustrating trade and I think in hindsight I shouldn’t have taken it in the IRA. The only reason I held it for so long in this account was because I was trying to see it through in this main account, or in my IRA account. I shouldn’t have taken the trade, I should have waited for an a quality setup the way I have said I need to focus on.

I should have just waited, and had I done that I would have said, “Well, it’s not a good setup for the IRA so I’m not going to trade it. I’ll buy in my main account at 44 and when it pops up to 65 or 70 I’ll sell half and stop out the rest, break even. That’s how that actually would have been a winning trade. Even though today I still wouldn’t be up that much because you can see nothing else was really that great, this wouldn’t have been a $4800 loss. This is one of the challenges of trying to trade with two accounts at once and is kind of next level of psychological challenge and it’s a good test for me.

Today, obviously it didn’t pan out the way I would have liked but you live and you learn and that’s kind of the process of trading in these two accounts, is finding my rhythm. This is only the fourth trade I’ve taken in the account, I’ve had two winners and two losers, started with $8300 so tomorrow will be at whatever, $10,600 or so. It’s progress, it’s still up but a little bit of a setback here as I navigate these waters of trying to trade with two accounts at the same time. Little bit of a challenge there but it’s a good challenge. At the end of the day, I’ll come out a better trader and I’ll be able to confidently trade in two accounts at the same time.

Although realistically, I’ll probably only trade in two accounts until this one is above $25,000 and then I’ll primarily trade in this one because I’ll be able to day trade more than three times a week. Right now, I can only day trade three times a week so I’m really limited and that definitely is affecting my decision making a little bit.

Anyways, a little bit of a disappointing day, finishing down. I guess $4600 between the two accounts and I’m hoping that we see some good opportunities tomorrow and Friday going into the end of the week. I just want to keep growing this IRA account, get it up towards 15, $20,000 and get it over that $25,000 level but today definitely didn’t help. Anyways, that’s the loss on HTBX, CONE, MARA, BSPM. These were all just kind of small trades, there wasn’t anything super exciting on them.

BSPM was halted, I didn’t get in it before the halt, I got in after the halt and I got in at 397. We popped up to a high of 420 and then dropped all the way down to a low of 366, and then when we curled back up I sold basically for a small five cent profit, so a small winner on that one. Held through the pullback, I thought this was going to just be a horrible day when it dropped that much but it did bounce back up so that’s good.

MARA, small trade on that. I guess some news came out so scalped it from 45 up to 55. Didn’t hold those levels, came back down. CONE, very weak today, not a good one at all. Overall, I would say looking the P&L today was not an easy day. Even if I hadn’t had that big loss I still probably wouldn’t have had the best day so a little bit slow but that’s fine. Yesterday was a great day, the day before was a great day, I’m still up almost $20,000 on the week so still a really good week. It’s still been an awesome month and will just be back at it first thing tomorrow morning, start to build our cushion for the month of February and see what we can do.

Last year, February was the best month of the year for me until I beat that record in November. I have no reason to think that February won’t continue to be just as strong as January. We’re in a pretty hot stretch right now so try to capitalize on it, make the most as I can during this window of strength, and then really build the cushion so if I do have to slow down going into April, May, and June. In the summer months I’ll feel like, “You know what, I’ve already made a quarter million dollars, I can totally slow down and not feel like I need to force it.”

All right, so that’s it for me. I’ll upload all my broker statements for the month of January early next week once I have them and will do a January month in review at some point next week and look over all the stats from a high level. That’s coming up next week and in the meantime we’ll just keep on trading and get into February hopefully with a couple good trades tomorrow. All right, so that’s the game plan. I’ll see all of you back here first thing tomorrow morning for pre-market analysis around nine, 9:15. All right, see you guys in the morning.

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