Warrior Trading Blog

Huge Trades! +$6,077.26 on Friday the 13th!

huge trades

Huge Trades! +$6,077.26 on Friday the 13th!

All right everybody, time for our midday market recap. You’d be hard pressed to try to wipe this smile off my face, as I’m finishing the day with $6,077.26. What a way to finish the week. Friday the 13th. I was a little superstitious this morning. I said, “Oh, you don’t want to push it. Go easy.” And I really didn’t. I didn’t push it at all. I started with base hits. And when you look at my P&L you’ll see that even though I had one big winner, that was my last trade of the day.

So my day began with a $600 trade on MARK, and then a $1,400 trade on PZRX, $500 on ROKA, $470 on LBIX, and then $3,000 on NETE. So I didn’t even get aggressive until I was already up $3,000, and then I was like, “Well, at this point I’ve got a big cushion, so I can get a little more aggressive.” And boom, $6,000 going into the weekend.

My account here on Monday morning is going to be right around $82,000, and I started this week at, I believe it was $68,000. So, that’s a nice $15,000 week. Really can’t complain about that. So as a result of today’s great trading, my plans for the weekend can change. I’ve got a big weekend budget.

Although, I’m probably not gonna do that much. I was planning on cleaning out the gutters. Maybe I’ll save it for my next trip to California. I’m going to California next weekend, not this coming week, but next Friday I’m gonna go out to California. I’ll be in the Bay Area for a couple weeks, and I’ll be there for Halloween, and then come back East in early November. So maybe I’ll take myself to a nice hotel or something when I’m in California.

But why don’t we go over the trades from today. Like I said, nothing crazy, nothing high-risk, just a couple of really good opportunities. And I will say that my accuracy this week has been on point. If I look at my trades, total trades this week are, let’s see, right around 26, and I had 23 winners. So that’s 88% accuracy. Average winning trades: 17 cents per share. Average loser: 9 cents per share. Average percentage gain: right about 4% per winner.

Average loser was right around 3-1/2% per loser. So, positive profit/loss ratio, which is good. Great accuracy, which is fantastic. So that’s all around, a win. My last loser was on Wednesday, which was a little bit of a bummer, but not a … obviously not that big of a deal. Since my last red day … today is my 12th consecutive green day. Since my last red day I’ve made about $23,000, so that’s a nice hot streak.

Now, obviously this hot streak will end, at some point I’m gonna have another red day. So let’s say I’m making my way up, green, green, green, up $20,000. So how much can I allocate for the next draw down? I don’t like to pull down, personally, more than 20%, which is certainly a bigger draw down than some traders would be willing to take. And I’m not saying 20% of my total portfolio, I’m saying 20% of the last leg up.

So if I went up $20,000 I can give myself about $4,000 of pull back. And that would be totally within the normal range of my trading. So if I go up $20,000 and I pull back $10,000, I’m gonna feel a little bit like, “Eh, that was too much of a pull back.” So I don’t want that to happen. But if I have a couple of days where I lose $1,500, I lose $1,500 and you know, whatever. I’m down $2,500 or $3,500 over two or three days, that’s totally within the normal ebb and flow of my profit curve.

So anyways, right now we’ve got two and … oh no, sorry. We’ve got two, well roughly two and a half full weeks left. Although I’m gonna be, I think I’m gonna be out of the office next Friday for my California trip, and I know if have another day that I’m gonna be out for meetings when I’m in California.

So I probably have 10 more days left in the month. If I can average … you know, even if I can just average $500 a day, that’ll finish me on the month. Well, right now on the month I’m up $18,000, so if I can get up to $28,000 or $30,000, this would be a really, really nice month. But, at the same time, even if I finish with just $18,000, if the next two weeks are a grind, now I’ve got the cushion, and I can be totally happy with that.

So as of right now my small account that I started with $583 is at $154,000 in total profit. And my net profit on the year is $188,000. So $188,000 and today is the 188th trading day of the year. That means my daily average, despite all the ups and all the downs, is $1,000.64. So not bad, $1,000 a day.

We’ve got about 250 trading days in the year, so that keeps my on track for $250k, although you know, I obviously have taken a couple days off and stuff like that. So $220k, maybe $230k, is probably where we’ll end up. But, we still have November, December, which last year were really hot months, the year before were really hot months. So hopefully we’re coming into a really great period of trading.

So again, to look at the trades from today. Started the day with MARK. MARK was on the gap scanner pre-market, but I said, “We have to be careful of it because of the fact that the last time it had a big gap up, it faded. The gap got slammed back down.” So you can see here, this was on September 27th.

Gap up and drop back down. Here we had the same thing today. So I was watching this for an entry versus pre-market highs, but as it squeezed up out of the gates I took a scalp for an entry at the half dollar, which is the same thing I did yesterday on INFI. Remember INFI? I was in at $2.50, sold on the move up to $3.

So I jumped in this with 7,500 shares at $4.45. Actually, sorry, 10,000 shares at $4.45 and $4.46. A little more aggressive on this one. And as soon as it got up to 55 and it started to look like there were some sellers, I backed out. I was like, “You know what? Remember the last day? It didn’t work out very well. I don’t want to take a loss, so breakout or bail out.” I got a little breakout, not as much as I wanted, so I bailed out.

So on that one I made $615, which is 6-1/2 cents per share plus or minus. So, selling at 53, 51, 50, 49, and then at 47. So, you know, first trade of the day, $600, and that’s all within the first 1-minute candle. Again, most people would be very happy with a $600 day. Now, someone earlier this morning in the chat room mentioned, I think he said he was up $120 or something. So it was a good day since his daily goal is just $100. I think he said $140 and his daily goal is $100. And I was like, “Look man, that is really good. If you can do that consistently, you’re doing a fantastic job and you don’t have to push it any more than that.”

The reality is, five years ago this might have been a $600 day for me when I was trading with smaller size. Right? There’s no difference between $100 a day and $1,000 a day except that to make $1,000 a day you have to use larger share size. The problem is that if you try to increase your share size before you’re ready, what it’s gonna do is it’s gonna change your emotions. So, while you’re trading you’re gonna start getting more stubborn.

You’re not gonna sell your losers as soon, you’re gonna end up with bigger losses. Because you’re trading with big size and you see you’re up $1,000, you’re gonna sell your winners a lot sooner. And so statistically, your profit/loss ratio is gonna decrease if you increase size before you’re ready. So that’s the risk. But, for the student that made $1,200 today and had a good solid morning … or sorry, made $120 today. In three, four years, through increasing position size slowly, he can certainly get higher. So it just comes down to making sure you’re following the rules of the trade.

Anyways, so MARK, that was the first trade, $600, not bad. Second trade: PZRX. PZRX also on the gap scan this morning. Now, this one I was watching for a gap and go trade. We had a pre-market high of 64. Note my entry was at 65. So I jumped in, let’s see, I tried to get filled at 62; I filled some. I filled the rest at 65. So I was entering for a break of the pre-market high. We pop up to a high of 89. I’m selling at 84, 83, 82, and I guess that was the rest down to 82.

So, $1,500. 7,500 shares times 20 cents, not bad. I then tried to get in LBIX at 10 a.m. at $2.50, which I told you guys about. This one I didn’t get filled on that’s why it’s showing 0 out of 2,500 and it’s red. I had to cancel the order because I didn’t get filled on any of it. So that entry, that attempted entry, was right … oh sorry. It was right here. Looking for the first 5-minute candle to make a new high, and I was getting in a little early to anticipate that breakout. So if we look back on the 1-minute chart …

Now this is a stock that popped up pretty quickly this morning, and I didn’t feel like I had a really good opportunity to get in it, so I was waiting for a pull back. We finally got the pull back at 10 a.m. So this is where I wanted to get in. I missed the entry at the half dollar, and so I waited for the first 1-minute pull back, which was right here. I was willing to take this trade because it was the first 1-minute pull back after a fresh 5-minute breakout.

So the high was 74, so then I added at 69. 69 and 70 for the first 1-minute candle to make a new high, which was over 68 right here. And then, of course, my target was high of day and maybe higher, and it squeezed up from 69 up to 79 and 80, so I took my 10 cents profit. So that gave me $500 with 5,000 shares on LBIX. Not the biggest winner, but green none the less.

Next trade was ROKA. This one I was a little aggressive on, and I was aggressive because I thought the setup looked really similar to LBIX. LBIX, big mover earlier in the week, pull back day, and then bouncing back up. So look at ROKA. Big mover earlier in the week, pull back day, bouncing back up. So I thought, “Okay, this actually looks very similar.” And what sometimes happens is when you have one stock that’s going parabolic, or that’s really strong, you’ll have a second and third stock that start to kind of move with sympathy, so it’s this continuation. And that’s what I though we would see.

I jumped in basically very quickly as I saw it doing a little 1-minute micro pullback, so my entry was right on the 1-minute candle here. Entry at 30. I took 10,000 shares. Trying to be a little more aggressive. At this point I had a cushion on the day and I was feeling like it was a good day. Pops up to 43, I’m up $1,300, ended up selling as it comes back down here, so I only made $500. So only 5 cents per share profit on ROKA, so not a big winner on that one.

And at that point I was up right around $3,000 on the day and I figured that was it for me. And then all of a sudden, at 10:30, NETE is halted. NETE was halted at 10:28, and at 10:28 news came out. So the news on this one, which I have here on my … this is just MarketWatch.com. “Net America announces growth in North American transaction solutions segment.” So they’ve got a headline here that comes out right at 10 a.m.

The headline comes out and immediately the stock spikes up, and when that happens it shows either that algorithms, or that traders are jumping on the stock. And of course I didn’t see it until it was already halted, but it was halted at $4.93. So now I’m watching, it’s halted, I’m thinking, “Okay, as soon as it resumes I’m gonna look for an opportunity to jump in this trade.”

It resumes. The high of the first candle was $5.86. I get in for a 1-minute opening range breakout out of the halt, which was buying for the break of $1.86. I used my hotkey because I didn’t even have time, it happened so fast. I used my hotkey, boom, boom, and that was at 93, 93. Tried to take 7,500 shares, only filled 3,000. All right? So only filled 3,000 shares. It pops up to $6.24, $6.50, $6.66. I tried to add more at $6.66, it’s now halted on a second circuit breaker.

The high was $6.63. Okay, so now it’s halted again. It resumes higher. It hits a high of $7. I tried to add at $7, for the break of $7, and I got a … my order was rejected because … or I got an error message, or a warning, saying “are you sure you want to exceed your max position size” because I have that setting in Lightspeed. So if I go into Lightspeed you can create these warnings … where is it? I’m trying to remember where these are. Highlights, design, windows. Maybe under trading. Yeah, warnings. So you can create warnings about share size. So I have “warn at 11,000 shares”, which basically is anything bigger than 10,000.

So this gives me the warning and it pops up, and if you press “enter”, I believe when you press “enter” it says like, “Do you want to go through with it?” And “enter” automatically is “no”, so it doesn’t let you just press “enter” to go through with it. You have to really actually say “yes”. So I end up not getting filled. So it ends up popping up to $7.37. I sell at $7.20, $7.09, $7. It actually hit a high of $7.43, which was really impressive.

So I’m selling as it’s coming back down, and then I decide to add back at $6.85. I added back at $6.85 because that was the first 1-minute candle to make a new high; anticipating the break over $6.90. We pop up to a high of $6.14 and so I’m trying to sell at $6.14. End up selling at $7.04. Sorry, $7.14. And I end up selling at $7.04 and $6.97. Small winner on that. And then I get back in for the break over $7.14, $7.14 up here, and we pop up to a high of 23. So on that trade I added back at $7.10, and I sold at $7.20, tried to sell at $7.23, etc.

So, lots of trades today. Definitely churned some commissions. Total trades: 52; total shares removed for liquidity: 59,000; added 28,000 in liquidity by selling on the ask. So 52 trades times $2.50 per trade; those are my commissions before the ECN fees, which would be about, I guess … well I removed 59,000 shares of liquidity so I pay for that, but I get a rebate for adding liquidity, so basically I’m getting charged for removing about 30,000 shares of liquidity. But, you know, whatever. Commission’s probably about $250 or something like that. Not bad for a $6,000 day. So green is good, this was a great way to finish the week.

Again, I’m gonna start Monday up in the $80,000, $82,000 range, which is gonna be really nice, and making my way up towards $100k. So that’s kind of where we’re at here at the end of the week. Monday, actually, you know what? Wow, I just remembered this. I’m gonna be out. I’m gonna be out of the office on Monday. I forgot about that. So I’m actually not gonna be here Monday. I knew I was missing a couple days in October.

I’m missing Monday and I’m missing Friday because I’m flying to California. So I’m gonna miss Monday, but I’ll be back here on Tuesday, Wednesday, and Thursday next week. All right, so that’s a little bit of a bummer. But keep an eye on John, and keep an eye on Mike, who will be certainly be in the chat room on Monday. And John will be trading the small caps the same way that I do. Mike will be trading some of the higher priced stocks. And we’ll make sure we have the scanners up for all of you guys on Monday.

All right, so one of the things that I just am such a big advocate of is you guys are not following my on every trade that I take, because I want you to understand why I take the trades. That’s why I spend all this time doing these midday recaps, going through and really breaking down the trade so you understand it. So the next time you see a stock popping up like this, you’ll see, “Oh, this is the 1-minute pullback.” And maybe you’ll see Mike in the chat room, or someone else saying, “Watch the first 1-minute candle to make a new high,” and it’ll be a little reminder.

But you’ll understand the pattern and then you’ll be able to take those trades on your own. And ultimately, that’s the goal is to create a community of thousands and thousands of traders who all understand these setups, and who are all profitable traders. So I hope that you guys are able to really embrace that, and Monday when I’m out, take some trades that are the same setups that I would go for.

Okay, so that’s it for me today. I hope you guys all have a really relaxing afternoon and a great weekend, and I’ll see you early next week. Okay. Bye, everybody.

Oh, hey. I didn’t see you there. I was just working on the dream board for my next home run trade; hopefully it comes soon. Until then, make sure you subscribe to get email alerts any time I go live or upload new videos. Until then, happy surfing.