Warrior Trading Blog

A Hot Week on Small Caps $DRWI $MOMO $LEI $ZFGN $HGSH $SEED $EYES

Weekly Update

April is off to a great start!  We’re seeing great follow through on the small cap momentum stocks intraday and on the daily charts.  The momentum leads to cleaner and bigger breakouts, fewer fake outs, and bigger profits.  I’m finishing the week with over $6k profit trading just 2hrs/day.  My biggest loss was $130 this week.  That is the type of accuracy I aim for.  I don’t take trades unless I have a 90% confidence rating that the setup will work.  I know lots of traders that like to trade 20-30 times/day.  I’ve always found this really challenging.  It’s emotionally draining for me to try to focus on trades for 6hrs straight, and I end up giving back profits on commissions and getting frustrated with late day screw ups.  I’ve seen so many traders give back a great morning by over trading afternoon setups.  We have a group of traders in our room that are very active in the afternoon so if you choose to trade with them make sure you are managing risk on all your trades!  Afternoon trading should typically be left to the most experienced traders.

As we move into next week I plan to continue to aggressively trade momentum setups.  It’s important to know when to be aggressive and when to sit on the sidelines.  When I see a setup that is my “go to setup”, I’ll take big size and look for the big wins.  It’s been paying off this week and I plan to continue using this strategy until things start to slow down.  As you spend more time in the market you’ll realize that momentum comes in waves and cycles.  A wave of good momentum usually beings with a stock that moves 100% in 1 day as a result of breaking news.  That causes traders and investors to eagerly jump into other stocks in the coming days and weeks, in hopes of seeing equally impressive gains.  Eventually stocks lacking good fundamental news stop moving and momentum slows down, ending the cycle.  A new wave starts when breaking news comes out and a new stock runs 100%.  I see this happen all the time.  Knowing where we are in a cycle allows you to gauge how aggressive or conservative you should be.

Watch me turn $1k into $8653 in 1 month



Check out my trades from the week



zfgn2-daily goal