Warrior Trading Blog

First Green Day in Italy! +$6,825! | Ross’ Trade Recap

Ross_6.27

What’s up, everyone? All right, so here we are, fourth day trading in Italy. This morning I actually set up on a boat off the island of Capri, which was pretty cool. Looked at the watch list, looked at the gap scanners and then came back here to the hotel to get set up and ready to trade. So, 3:30 PM Eastern, the market opens and this is my setup. Traveling trading station. I’ve got the laptop, monitor one, monitor two. And this laptop I could honestly do without, but I use it for Facebook, YouTube Live, email and stuff like that.

The most important thing to remember here in Italy is that you’ve got the right plugs because the American plugs don’t work. But I was prepared and made it happen and I’m going to finish this morning up $6,825. A nice big green day. Let’s do it again tomorrow. Tomorrow is wildcard Friday. So I’m excited. Hope to see you guys there and I’m going to be livestreaming on YouTube starting at 9:15 AM and I’m going to run the stream straight until 10:30. Special surprise for you guys that have been watching, loyal followers on YouTube. See you guys first thing tomorrow morning.

Hey, everyone. All right, so we’re going to do our mid-day market recap here, go over the trades from this morning. I’m going to finish the day up $6825.24. I finally got a green day and it was much needed. So nice bounce back after losing Monday, Tuesday, and Wednesday. Monday, I only lost like 600 bucks. Wednesday, I only lost two grand. But I lost $14,000 on Tuesday. So disappointing. Trying to swing for a home run, was up 10 grand, didn’t take the profit, flushed down, got caught in a halt going down, added back while it was low thinking it would move back higher, didn’t work. Ended up with too much size and then got slippage on the drop. So I was down about, well, I guess something, 14, 15, 16, 17,000 on the week coming into today. So, happy with the green day, still down about 10 grand on the week. But hey, tomorrow is wildcard Friday. So anything is possible. If we do see another nice opportunity like what we got today on CETX, that would be terrific. If we don’t, whatever. I’ve got next week and I’ll just make the most of the opportunities when they come.

CETX is one of the ones where I was a little cautious about it initially. Now, funny enough, this was on the gap scanner pre-market, but I sort of wrote it off as being not, I just didn’t think it was going to be worth trading. It was up 18%, floated 1.29 million shares, however, if I right-click this and go to properties, let’s see, I go to timeframe, historical date, and run this for 9:25 AM. You’ll see that the volume was only 56,000 shares. I was watching DOVA out of the gates. I did not end up taking any trades on it. Being a stock above $10, in the teens, for me it was risky and I didn’t see any quality entries so ended up not having any trades on it, which was fine. I think that was the right move.

So here’s DOVA. That was on watch, no trades. ATOS, wasn’t really thinking it would be easy out of the gate so ended up selling off but rebounding nicely from $2.60 up to a high of $3.25. Not bad at all. But now back down at $2.75. So definitely not seeing good staying power. And then CETX. It starts to pop up, it breaks over the half dollar of $2.50 very early on in the morning at, well, right about 9:34, squeezes up to $3, breaks through $3, hits a high of $3.25, pulls back, micro-pull back here. This is where it really started to open up. The break over $3.50 here was the big move. You can see it’s now selling off again. Back to $3.50. But the break over $3.50 here was the big move and we got a move all the way up to a high of $4.98.

Now, my final adds on this were actually up at $4.80, anticipating a possible break of $5. I added at $4.80 and $4.90 or 95 or something like that. It hit 98, it failed and I stopped out and actually gave back a little profit. I was up over $7,000 on this. About $7,200 is the highest that I saw. And then it failed at that $5 spot and I could not afford to hold it and let it pull back, so I just cut it loose and I said, “You know what? It would’ve been nice if I’d been able to make more money on this move. To have a stock go up from $2.50 to $5 and make only $6,800, that’s a little disappointing. I probably could have done better on it had I been more aggressive earlier, had I held a couple of my trades a little longer instead of scalped them as quickly as I did, but I can’t start to be, now, super aggressive with 15, 20,000 share positions when it’s already up this much.” It has a history of popping up and fading. The news this morning is here, but it’s just, stocks recently even with news have been a little weak, especially in the small cap market. So I was quick to say, “Let’s just take that profit, lock it up and not give back any more.”

So $6,800 of profit, not bad. Trading from Italy, I can be happy with that and basically this week has been three steps backwards, if each step in this case is about $6,000, three steps back and today is one step forward. So I’ve still got a couple more steps to get back to flat but I should be able to get back to flat. If not tomorrow certainly by next week. Definitely by next week if I just continue to focus on $2,000 a day. Slow and steady, I will get there. And that’s kind of one of those things, to me, of today’s the first day of the rest of your life. The day that you start consistently making $200 a day. From that point forward you’re making 50 grand a year. So whatever losses you’ve incurred up until that point, it’s water under the bridge. It doesn’t really matter any more because from this point forward, you’ve got this strategy and you’re good.

My problem, of course, is that I know every so often I get myself into jams where I take way too much size at the wrong spot, have a terrible trade and that’s a combination of my personality and the way I trade at times, the way emotions sometimes come out in my trading. Everyone else has different sort of features and quirks of their strategies that you’ll notice from time to time and it’s something that I want to try to work on. What time is it here? It’s like 5:00, 5:20 here in Italy, so I’m getting kind of tired.

This is a funny time of day to be trading. Having to get kind of amped up to trade at 3:30 in the afternoon is, for me, past the bell curve of when I’m at, usually, peak performance. So that probably hasn’t helped. The internet here has been pretty difficult. That has not helped things at all both in terms of executions of trades and in terms of frustration levels. We’ve talked about this a lot where coming in at the open, you have a really bad morning or you’re in Italy or whatever and you’ve got a whole bad first half of the day, then by the time you sit down to trade, you’ve got all this baggage with you and it’s really hard to just drop that and focus on trading. And so when I log in and it’s like, “My settings are all screwed up,” and, “This monitor’s not working. What’s going on with it? This thing is such a frustration,” and, “Aw, I can’t connect to the wifi,” and, “Okay, I’m connected to the wifi but my upload speed’s only one megabit per second. What’s going on?” All those things amplify to put you in a place where you’ve got a shorter fuse and when you’ve got a shorter fuse, you’re more likely to crack under the pressure of FOMO and frustration. And I say that from firsthand experience.

The best thing you can do is develop a sense of awareness where you realize the red flags so you can start to pull things back before it’s too late. And, knock on wood, I’ve really only had two days in my career that I really let things get away from me. Those were the two days that I lost $30,000. Those were two individual days and they were both the result of a combination of sort of emotional factors building up to the point where I took it out on my trading and things went wrong. And unfortunately, sometimes, well, unfortunately I think, maybe fortunately. Sometimes you’ll have that emotional culmination of factors that push you to the breaking point and sometimes the market will reward your bad behavior. And that’s the one disadvantage of learning to trade during a really hot market. You can get some negative reinforcement. You get positive reinforcement of negative behavior. So you’re doing the wrong thing but you’re getting rewarded for it.

Whereas in a market that we’re in right now, you are getting good feedback from the market. If you’re not following the rules, you’re going to get quick losses. So this is a really good time to be learning because when the market does pick back up, you’ll find that the setups that we’ve been trading will be even, the breakouts will be even stronger, even more powerful, the volatility will be even bigger and no doubt the profits will be bigger as well. So this is a great time to study up and get ready for the next hot streak.

Today was a great day. It’s awesome to see good momentum. Certainly I could’ve been looking at having a day today where I only made like $500 or even a series of days or even a week or two weeks where I’m only make $500, $700 a day. So to be able to bounce back off of a red day, to have a stock like CETX squeeze up more than 100% and give me almost $7,000 of profit, that’s pretty good. That’s solid. So I’m feeling good about that and let’s see what tomorrow has in store for us. If it’s a exciting Friday or if it’s a slow end to the week. Time will tell, but either way, it will be my last day trading from this hotel here and then next week I’ll be trading from a house that we rented.

I’m really hopeful the internet there is better. This is one of those things with traveling. You never know. Fortunately the internet is more than adequate for trading. Where it can be difficult is with live broadcasting and streaming. But I was able to stream my audio today and we had the scanners up and running, so I’d say it wasn’t really too bad.

Anyways, that’s it from me. I’ll see you guys first thing tomorrow morning. We’ll do our pre-market analysis at 9:15 AM and then what I’ll probably do is I will keep livestreaming straight up until about 10:30 in the morning. So those of you guys on YouTube, plan to just hang out all morning tomorrow. I’m just going to livestream. I’ll be on my phone. You’ll get audio. There’s a little bit of a lag there on the audio with the YouTube streaming servers but you’ll be able to hear what I’m watching and give you a little taste of what it’s like being in the community. All right. So stay tuned for that starting tomorrow morning, 9:15 AM, 3:15 here in Italy. All right. See you guys in the morning.

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