Warrior Trading Blog

I’m Back in The Saddle +$4,808

saddle

What’s up everyone! Monday morning, back on the horse, back in the saddle, ready to trade. Today is one of those days where everything worked. Four trades, four winners, $4,808 profit, green is good. That breaks the red streak – Wednesday, Thursday, Friday of last week in the red. But cumulative loss is only about $7,000, which is not bad. I’ve had back-to-back red days where I lost $15,000 or $20,000, and that’s because the end of a hot streak, you’re still swinging and so you’re going to have a couple of really big misses.

 

Fortunately, the last three days, not including today, yeah, they were red, but they weren’t anything really big, nothing dramatic. Just a little bit of a grind down, down seven grand, so making back almost $5,000 today. In one day, gets me almost all the way out of the hole. If I get another green day tomorrow, hopefully that will get me back up to hitting new highs for the month. Right now, I’m up about $73,000 for the month of April. I’ve got to go with $85,000, so it’s within reach. We just got to stay focused and keep looking for those A quality setups.

All right, so anyways we’ll break down all of today’s trade in today’s midday market recap.

Alright everyone, so here we are, Monday morning, back in the green. I definitely needed this. Three red days in a row, at the end of last week – Wednesday, Thursday and Friday. I lost about $7,000 between those three days. Now, this morning, bouncing back with $4,800 on the VLRX. Four trades, four winners, 100% accuracy, so that feels good. That’s a great way to start the week and just kind of get myself back into the driver seat and feeling good.

We’re still down about $2,200 after those three red days last week, but that’s just part of the deal, not something I’m really worried about. I’m thinking that most likely, I’ll be able to recover the rest of those losses with another good day tomorrow, and then I could go in for the rest of the week building up profits for the month of April. Sitting right now at right around $73,000 profit on the month; $223,000 on the year; $558,000 in my account that started with $583 on January 1st, 2017. It’s been quite an impressive run here.

Today is the 78th day of the year, and I’m averaging $3,186 per day, which is a great average. It’s almost double my average for 2017. If I can average $3,000 a day, I’ll be looking at a $650,000 a year and that’s kind of what I’m aiming for right now, about $650,000 or $700,000. I would love to be able to do that. I think it’s realistic. The even fold of the market we can have some really, really hot days, hot weeks, and then things can slow down for weeks or even months. When they’re slow, as much as you want to have big winners, they’re just not there, so you have to just sit tight.

Anyway, we’ll break down today’s trade. Those of you guys watching on Facebook, feel free to leave comments. I’ll come back and answer them later; same with those watching on YouTube. If you guys are enjoying these videos and this content, I’d love for you guys to subscribe to our channels or give us a thumbs-up.

Let’s look at VLRX here for this morning. Today, the Watchlist had a couple stocks on it. We had MOC, which was gapping up with News, decent headline. But like a lot of stocks in the last three days, as soon as the bell rang, it sold off. It did not hold up at all. Fortunately, it didn’t trigger an entry for me, and I was just waiting for a confirmation before getting in, instead of being a little more aggressive and anticipating the entry.

In this case, it’s kind of one of those things where the bell rang, and it sort of hesitate for a moment. I was waiting for a sign of strength to jump in. I had my order ready at … let’s see. I think I had it at 370, which was sort of this pre-market pivot. I was just watching it. I saw buyers at 55, 355, and it seemed like there was maybe a hidden seller there, because even though there were buyers, it wasn’t breaking over that level. I almost got in, and I said, “No, no, no. Don’t anticipate this. Let’s just wait a second.” I really want to see strength. We didn’t see strength, and it started to dip.

I think that’s where short sellers maybe were just saying, “Let’s just see a little bit of weakness, and then hit it to the short side.” As soon as that weakness showed, they’re hitting it to the short side. Anyone who didn’t anticipate it is [inaudible 00:05:33] out, and boom, the imbalance is to the sell side and it drops. It sold off and was no good. That was on our scanners pre-market, but when the bell rang, it rolled over and didn’t work, so no trade on that one.

BURG was on watch, but very light volume pre-market. I didn’t really think it would be anything we’d be able to trade, and it wasn’t. No trades on that. ATOS, a recent reverse split, but a very weak daily chart, selling off here. Again, I didn’t think this will be worth trading. This to me is a weak daily chart, because the previous day was pretty significantly red. It’s been selling off for a while. It’s got resistance, these moving averages, the stacked up at the 9, the 20, the 50 and 200. It doesn’t look good.

In contrast, if we go back to this area here, this starts to look more interesting because you have this long period of consolidation. When you have long periods of consolidation, it’s sort of like it’s coiling, and then we can get a break out. This is a pattern that I like quite a bit more for a break out. If this was the chart, I would have been like, “Okay, it starts to look good with this amount of space.” But where we were right here, this to me is just not looking good at all, so no trades on this one.

Basically, a few minutes after the bell rings, we have … oops, I’ll just reset my scanners here. No, don’t do that. History, real time, this morning. Someone in the room … We had VLRX on watch because it was a continuation. It was strong last week, on Friday, and so I had it on watch. I said, “I like it if it can get over 318,” but it was around this … The last time I looked at it before the bell, it was like at 280, and then just before the bell, it popped up to $3. I was like it’s a 280, the pivot is at 318, I don’t think it’s going to be worth trading. But the bell rings, it starts spiking up. I wish I’d kept it on closer watch. I just didn’t think it would … I just didn’t know it would be the one. Anyways, it spikes up to 364.

As soon as I saw it spiking up, and realized it was up at 360 vs the $3 open, I knew it was very close to getting halted, and so I just pressed my orders. Hot key, shift 1, shift 1, shift 1 to buy 10,000 shares at 62 and 64. I only failed 6,600. It resumes and I sell it 404, I sell more at 404, and then I add at 397, 405, 408, and I’m selling it 412, 409, 404. Now I’m scalping it. Getting in 419, selling that for a small profit at 426 and 420. Getting back in at 410, selling it at 421, and sort of scalping my way up to the daily goal.

The big trade on this was getting in right before the halt at 360, and selling those 6,000 shares at $4, for 6 x 3 = $1,800, $2,000 right around there. That gave me the cushion, and then I kept scalping it in this area on these little pullbacks here. We hit a high of 444; 458 was daily resistance. We kind of came right up at that daily resistance, couldn’t break it, and we faded off at that level. In total, I took four trades on this, and have four winners. Accuracy 100% today, that’s great. A nice turnaround vs the way things had been on Wednesday, Thursday and Friday, definitely happy with that.

Now, a couple of questions. Someone was asking how I handled the margin restriction at short trader when I was at the very beginning of my challenge. When I started the $583 account a year ago, I was trading at the Offshore Broker in the Bahamas, a short trader. The thing that they do, they give you 6-1 leverage during the day. If you put in $500, you get $3,000 in buying power, which is crazy. I mean, well it’s awesome. It’s fantastic.

Basically, I guess one of the things they do to mitigate the risk of beginner traders making mistakes on margin is that they’ll reduce your ability to use that leverage on certain stocks. Each morning, they would have a little announcement of the stocks that were on margin restriction. Meaning you can only use your cash balance, whether there was $500 or whatever you put in the account. Obviously, that with a small account, basically, in some cases, it meant you couldn’t trade those stocks at all.

What I found when I was trading there is that for the most part, stocks like MOC that were on the gap scanner, or BURG, that they would be on the gap scanner and they wouldn’t be restricted pre-market. You’d be able to get a trade between 9:30 and 9:45. If they were really strong, you could squeeze that at the gates, you’d get in one really good solid trade, maybe two solid trades. Then at that point, between 9:45 and 10AM, a lot of times they would go on restriction.

However, stocks like VLRX that had been volatile in the previous days would sometimes still be on restriction, and as result, I wouldn’t be able to trade them. There were times like I wasn’t able to trade stocks that I would’ve liked to have traded because of the restriction. But for the most part, I allow the surprised moves that would pop up off the gap scanner and then just take off. Stock like a week ago, FTFT. Odds are this one wouldn’t have been on restriction because there was no reason to restrict it. All of a sudden, it takes off. It goes from $2 to $3.60, and then yeah, at some point, around whatever it is, $10, $10.15, it goes on restriction. But you already capitalized on the first move.

It does require you to be aggressive to jump in at the beginning of those moves, and try to really be quick there. If you wait for the first five-minute pullback and stuff like that, you may miss some of those opportunities of the stocks to go on margin restriction. It is something you have to deal with a little bit, but I dealt with it, and I grew my account. I’m sure I missed some trades, but it wasn’t really that big of a deal. It’s just one of those things. You have to be aggressive. Get out there early in the morning, 9:30, 9:45, try to take the trades in the first few minutes, book your profit, and then be done. That’s really what I was doing. It was like two, three trades a day. Get in. Get the A quality setup, get out and then I’m done. By 10AM, I’d already be finished trading anyways.

Today’s one of those days where my last trading was at 9:43. That’s when I closed up the VLRX position, and really nothing else at the scanners. I don’t know if it’s because the market was weak on Wednesday, Thursday and Friday for small cap traders, and so we’re just happy to take a win and walk away green, or I don’t know. For whatever reason, today was hot at the open on VLRX, and then just slowed down and that was it. CSAI, C-S-A-I was on the scans; popped up, sold off. HEAR was on the scans, H-E-A-R; popped up, sold off. It’s rebounding a little bit now, but it’s on a lighter volume. I don’t know. Maybe I’ll end up doing something. It just seems like a little bit of a slow day.

That’s all right. I’m happy with my 4,800 bucks and I’ll be back at it first thing tomorrow morning, day 71, and see if I can stack up a little bit more in gains, and try to finish this month. I still have a goal of trying to finish above $85,000 to make it my second-best month of all time. I’m $12,000 off that goal. It only takes one. It only takes one trade like VLRX to jump in at the breakout with 10,000 shares, and boom, that’s $10,000 winner.

I was a little late on the entry on it. I wasn’t able to get a full size. My win was smaller, but it really only takes one. $85,000 is within reach here with five days left in the month. Hopefully, I’ll be able to cross that line in the sand.

All right. That’s it for me. I hope you guys have a great afternoon. We’ll be back at it first thing tomorrow morning around 9, 9:15 for pre-market analysis. All right. I’ll see you guys in the morning.

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