Warrior Trading Blog

It’s Friday! +$1.6K Shorting $INTC | Mike’s Trade Recap

Hey, what’s up guys, I don’t know about you, but I love earning season. It always brings the best trading action of the year, and today was really nothing short of that.

We hit Facebook on an earnings gap fade play, right out of the open, for nearly 8,000 bucks. And that’s just one single trade. So, I’m going to show you guys a little bit more about my technique on this and help you better understand what it takes to achieve these type of wins. And hopefully that’ll help improve your trading. So stick with me as I run through this Facebook trade in today’s recap.

All right everyone. So here we are, fourth greening day in a row. This has been a pretty solid week. Started with 6,500 on Monday, 2,500 on Tuesday, 2,500 on Wednesday. So that put me up about 11,000 on the week. And now today, in my IRA account, I’m in great shape, up 4,700 bucks, up 5,193 on ARCI. But in my main account I’m down almost three grand on ARCI. So I’m up today net, about $1,700, $1,800 between the two accounts, which is good. It’s a little bit below my daily goal of 2000 a day. I’m a little disappointed that ARCI didn’t work out a little bit better, but any day I’m walking away with more money than I had an hour and a half ago, is a great day. And today’s another green day. So the bunny rabbit ears stay on here, since I haven’t had a red day yet since Easter.

So let’s look at ARCI. This one I was aggressive on, no doubt about it. I was pretty confident on this one, that it was going to give me a lot of opportunities. So let’s check this out. So ARCI this morning was already up 58% pre market. This thing was 58% pre market plus it had a float of 600,000 shares, so a super low float. The volume was already about 2 million shares. So you know everything on it pretty much checked out. I was really hoping it would open right around here, 7.50, 7.60, and as soon as the bell rang I was going to be a buyer for the break over the pre market high of 70, 75 with a first target of $8. Unfortunately because it already had 2.6 million shares of volume pre market, it actually broke that level, pre market.

So pre market it hit a high of 814, or 813. So the bell rings and ad right away it starts surging up. It opens at 8.01 and surges up. So I took 9,000 shares at 24, and sold half at 49 and sold the rest at 37 and 32. So in the first like, what is this 18 seconds, 20 seconds of the day, I was already up 1400 bucks or 1500 bucks. It hits a high of 50 it then drops down to 7.90 and then it squeezes back up. And I got back in right here. So let’s go back down. So let’s look at this trade. So I got back in at 8.35 35. 8.43 and 8.45 right here, and I stocked out right here. And I had 9,000 shares again on the second trade. And so I went from being up 1500 to down 2,900. So I lost about $4,500 on that second trade, which was disappointing.

And I was frustrated because I really thought it was going to break over the half dollar. I jumped in here at 35, anticipating it did go up to 48, so I was up. Well I added also at 45, so added right into that, was expecting a break of 50 and move up to 65, 70, maybe $9. And that did happen, but not where I thought it would. And on this drop here, I was just like, “Well, I got a couple of loss. I got to bail out.” And so that was the biggest loss probably in the last two weeks, and put me down 2,900. And so at that point I was like, “Okay, well I am maxed out on this account.” So let me just show you, if I try to place a trade here to buy, it’s going to say … Let’s see, where is it?

Down here, “Cannot place any long opening position on my account.” And that’s because I’m below my $2,000 Max loss in my main account. So this is what I’ve been doing for the last couple of weeks, or maybe the last month or so. If I hit my max loss in this account, then I switch to my other account right here, and I have my max loss a second time. If I hit max loss in both accounts, obviously I’m done for the day, that’s it. But just because I hit my max loss in one account, when it happens really quickly on one trade, it doesn’t mean that there aren’t going to still be good opportunities. However, I don’t want to keep trading in this account, because I don’t want to keep looking at this red number. I don’t want to look at being down 2,900, and then maybe on the next trade I’m down only 1500, and then I’m down only 700. I don’t want to be looking at that red number.

And so I just basically start the day over and clear it out. So now I’m in my second account, and on this one, as it started to squeeze back up right here, I got back in. And look at how fast this trade was. In at 31, 40, 38 and 40, with 9,000 shares. And four seconds later, I’m selling half at 73, the high was 75. I’m selling half at 73 for an instant, $1,200 of profit or $1,400 of profit. It’s was just instant. Pulls back for a second and squeezes up to nine. As it pulls back, I added 69 and 71, and I’m selling at a little bit 76, I add back at 94, 95. Sell some at 98. I then add back at 79, 80 and 82, I sell at 87. This is scalp trading, adding at 94, 95, and boom, there’s a nice quick win right up to 24. Adding at 22, selling at 39, adding at 29, selling at 42. These are just small scalp trades, adding at 38, selling at 50.

High of day and then this was a trade that I lost on. So this ended up hitting a high of 56. And I was able to make $5,000 in my IRA account, which is great cause that’s tax free. Anyways, so $5,100 of profit right there, solid trade. And then [MOXC 00:07:22], I jumped into, that was off the high day momentum scanner. And I thought maybe it was going to work. I got into at 61 for the breakout, and ended up stopping out of that with a $500 loss. So whatever, not a big deal. But that’s where I’ll finished the day, up $1,700, in nice shape in this account. So if I go to settings here, we can see what this account balance is. The balance has been moving up. Equity add, so sitting at $121,000, so I’ll be around 125 tomorrow. This one was at 52, just under 52, so it would be back down to like 48 tomorrow. But that’s okay.

So either way, I’ve got a good cushion on both these accounts. And I’ll pop that back off, because I don’t really want to look at … Well, I don’t know, maybe I’ll just leave it on there. Because the only problem is that sometimes I accidentally trade in the wrong account. But yeah. So you know, this ended up being a pretty good day. ARCI had a lot of potential, it just wasn’t as easy to trade as I thought it would be. And then of course, it dropped here, got halted going down, bear flagging here and then dropping again to the downside. So I don’t know, and we really didn’t have any other momentum today. We didn’t have anything else that was really solid.

I would say my edge for finding my entry point, is a combination of having a pretty good understanding of chart patterns. Of course, I mistimed this one, but pretty good understanding of chart patterns, combined with a really good understanding of level two and time in sales. And so, the reason I punched that buy button where I did, was I saw green buyers coming in, and it looked to me like it was going to break. And so boom, boom, I jumped in, and then all of a sudden, if you have a big seller, a hidden seller or whatever, that can ruin the pattern. And that’s kind of what happened there. And then we flushed down here. We went red on the day, and then all of a sudden ripped back up. So if it wasn’t for this move right here, I wouldn’t have made back my money on this stock, that’s for sure.

But you know in any case, hey, lived to trade another day. Today wasn’t the most graceful day I’ve ever had. It wasn’t picture perfect, but it’s a green day, and I’ll be happy with that. So again, one o’clock eastern, we’re going to host a day trading workshop. So those of you guys that want to register, who haven’t already, you’re welcome to join me. And everyone else, I’ll see you guys first thing tomorrow morning, around 9:15. We’ll try to finish up this week with maybe the fifth green day in a row. That’d be nice. All right, so that’s the goal, and I’ll see you guys… Most of you I’ll probably see later this afternoon in our workshop. All right, I’ll see you all in a little bit.

Hey everyone. Thanks for watching the videos. I’ll continue to make sure that all of the watch lists, as well as the recaps are available to all of you. Make sure you subscribe to keep up to date on what’s hot and what’s not in the market.