Warrior Trading Blog

Keepin’ It Consistent +$665! | Ross’ Trade Recap

What’s up, everyone? All right, so here we are, finishing the 173rd day of 2018, up $665. So right now I’ve got three days left in the month, September has gone by like that.

 

It’s just funny, because we had Labor Day in the beginning, and then four days, a short week, didn’t make a lot of money, it was like a thousand bucks, whatever. Then, went down to Orlando, was in Florida for a week, came back, went down to Rhode Island for a week, took a vacation. And now, it’s the last week of the month. So wow, happened fast, but my goal right now is not to try to be a hero. I’m not looking at September being a record breaking month.

When I was down in Orlando, I wasn’t being super aggressive. When I’m trading … I mean, it’s one thing to trade live, in front of thousands of people every day here, but to do it in person, on stage, in front of everyone, I really don’t want to have a big blow out. It’s just super embarrassing when that happens. So a little more conservative, didn’t make a lot, but whatever, made some. And then, here we are, end of the month. So I really at this point, rather than trying to make like a $15, $20 thousand winner the next three days and having an amazing month, I’m just like, “I want to grind. I want to keep doing consistency.”

For those of you that have been with us for awhile, you’ll remember, my 56 day hot streak. It began in November of 2015. I believe it’s 2015, and it continued … Or was it 16? Now I don’t even remember, but anyways, 56 day hot streak, started in November and ended in February, or January, something like that. And during that hot streak, I was obviously consistent. I didn’t make a lot of money because as soon as I was green, I shut it down. I walked away. But I wanted to prove that you can be consistently green every single day, that’s a choice. It’s as soon as you’ve got a profitable trade, you’re done. If you have one red trade, make sure it doesn’t hit your max loss, go for trade two, three, as long as your accuracy is 60, 70%, the way it is for me, you will be green at the end of the day.

But you’re not taking a lot of risk and you’re not going to have big winners. When you get a big win it’s because you stepped up to the plate and took a little risk. So that’s kind of right now what I’m doing here in September. I just want to be green, I want to be consistent. Those of you who have been watching my PNL, I’m idling right around $700 thousand in profit in my account that started with less than 700 bucks a year and a half ago. So just kind of hanging out, right up here. I don’t want to have a big drop. That’s the last thing I need. I’d just rather kind of go sideways, sideways, until the market opens up, and then I’ll put the pedal to the metal and get aggressive.

So it’ll happen. We’ve seen a couple big moves in the last few days, so things feel like they’re starting to pick up. But the volume on these stocks have been kind of on the lighter side, the spreads have been bigger, and that means more risk. And I don’t really want to take a big loss right now. So being a little more conservative, but that’s all right. So anyways, that’s it for me. I hope you guys enjoy this Midday Market Recap. Any questions, any comments, leave them below. I’ll see you back at it first thing tomorrow morning.

All right, everyone, so we’re going to do our Midday Market Recap here. Go over the trades from this morning, so another green day, which is great. Today is the 173rd trading day of the year, and I’m finishing up $665.95, which is great. $632 yesterday, so that’s 12 hundred bucks in the first two days here of the week. And today, I was done trading by 9:36. So six minutes of trading and that was it, my work is done. So didn’t quite hit my $2 thousand daily goal, but rather than try to push it and be aggressive when the market’s not super, super hot, I’d rather take the easy money and be happy with that. So that’s exactly what I did. Let’s see, if I pull back the charts here, let me go over to the gap scanner.

So today starts the same as every other day, going over our gap scanner. So basically what I do, I see this EDRY moving up a little bit. The problem for me is that the volume’s only 65 thousand shares. So it’s very light. If I wanted to buy 3 thousand shares, and then sell 3 thousand shares, I’m trading 6 thousand shares. I’m trading 10% of the volume of the stock today, which is quite a lot. So for me, right now, kind of at that point in the day where it’s a good time to know when to take your profits. And that’s something that a lot of traders struggle with. They might make money in the early part of the day, and then they give it back.

So I usually focus on, and especially when I have a small account, I was doing that small account challenge, three trades a day. The first three trades, those are my best chances for a good, solid, high probability win. Once I keep trading past that, on a really good day, sure, I can do all right. But on most days, that’s when the risk starts to get a little crazy. So it looks like EDRY is going to get halted now. 80 thousand shares of volume. Again, it’s very thinly traded. It’s a nice idea, but it just doesn’t have the liquidity to make it easy to get in or out of, which is a bummer. So anyways, we can keep that one on the back burner, sort of watch it. But it’s now going to be halted for five minutes.

So gap scanner here this morning, leading gapper, CEI. Wasn’t interested in that one at 67 cents. It’s too cheap. Next one down, JAGX. So this one, I decided not to trade. Now, it actually ended up squeezing up to a high of a $1.80. So I had a bias on this one, it’s because I’ve lost money on it several times. This was the last time I think I traded it and lost money on it. And I just sort of was like, “You know what? The stock has burned me once, it’s burned me twice. I’m not going back in for a third try. I’m just, I’m done with it.” And then of course today’s the day that it ends up making sort of a cleaner move. Squeezing up here from $1 to $1.20, getting halted, opening, squeezing up to $1.52, getting halted again, opening higher, selling off, halting, coming down, consolidation sideways sideways, squeezing up, getting halted again, going up, squeezing all the way up to $1.80.

So some nice moves there. But again, it’s a little on the cheaper side and had lost money on it in the past, so really, my wheelhouse, the stocks I make the most money on are between two dollars and six dollars. Trading below two dollars, yeah, I make some money on them, but usually not nearly as much. So that was sort of off my list due to the price and a history of losing money on it. Next one down was JONE, which is a stock that I traded today and made my 600 bucks on. So this one I was watching because it was pretty strong yesterday. Again, kind of on lighter volume, but making a little bit of a move, made a move after hours pre-market. Had a high of about $9.80.

So when the bell rang, I was kind of looking to jump in, but just before the bell, it had dipped down. It kind of broke this pre-market consolidation here to the downside, which I didn’t like. It then surges up, and I almost got in it right here at 950, but because of this drop, I was worried it was going to be a false breakout. And when I was looking at it, it was like 925 by 950. I had my hand on the buy button. And I just kind of hesitated, because I looked at it and I was like, “You know, I feel like if I take this trade, I’m going to be instantly down 25, 30 cents on the bid, and the risk is that I’m going to instantly be down 600 to 900 bucks.”

So I just hesitated and it pops up to 970. It then drops back down to 920, and I was like, “Oh, okay. That’s probably good that I passed on it.” And then it surges up to 1060, and I was like, “Oh man, I should have gotten in.” And then it dropped back down to 985. And I thought, “Oh, it’s a good thing I waited.” And then it squeezes up to 1089 and I thought, “Oh, I should have gotten in this.” And then it drops all the way back down to $10. So very choppy, whippy, not holding the levels. I got in for the first one minute candle to make a new high, which was right here.

I got in at 1050, 1046, as you can see here. 1046, 1047. It pops up to a high of 1094, which is 44 cents, not bad at all. I sell and take profit on this at 1065, 1071, 1074, and 1072, on 3 thousand shares, making $665. Is it a home run trade? No. I mean, for me, a home run trade would be $2 thousand, $3 thousand, $4 thousand. Well, realistically, a home run trade is more like 15, 20 thousand. A decent trade is just 2 to 3 thousand. So a good trade is 6 to 8 thousand. A home run, yeah, it’s got to be really more than 10, 15 thousand. But so obviously not a home run trade. Not even close. It’s a base hit. But with small size, 3 thousand shares, 20 cents is good.

And so book the profit on that. Gavin, my shadow here, he had the same trade, also booked profit on it. Got about 20 cents per share, which is great. So over the next few weeks, Gavin’s trading side by side with me, he’s kind of my shadow, and he’s learning the strategy. He’s actually been part of the Warrior Pro classes for about a year, and when I met you … So how did you first meet me? You remember that day? He’ll never forget the day. Tell me about the day you first met me.

I was just going out for a lunch one day, and went into Great Barrington into the bagel shop and happened to see Ross walking in right behind me. So went over, introduced myself and told him I was taking his course, and yep. Now we’re here.

And now we’re here. So he happens to live like 20 minutes from me. And he just ran into me. And he was starstruck. I mean, and you can’t blame him. So I said, “Well let’s keep in touch.” And that was probably almost a year ago. So I said, “Let’s keep in touch.” And then I had you come over and check out the office and offered him a position as a member of our support staff. So he’s going to be working the afternoons doing member support, email, stuff like that. In the mornings, he’s still working on trading, and I thought that I’d coach him and have him kind of work side by side with me thinking that if I’m able to get him really good at trading, that he can also start to mentor students in the Warrior Pro classes, host mentor sessions the way Arch does and Mike does. And kind of pilot this program of having someone watching over my shoulder.

So seeing how this goes over the next few weeks, maybe I will put together a program where students can fly out and trade side by side with me. It’s probably something we would offer as an upgrade for Inner Circle students. But yeah, so anyways, you’ll see Gavin. So he made some money today on JONE as well, pretty much the same entry, which is awesome. So he’s learning the strategy. Going back to EDRY, this is one of those stocks where it’s so hard because we want … This guy was on our scanner at $8.99. I mean, it was on the scanners way back here at 899. And we pulled it up and I looked at it and I thought, “Well, I mean literally it has, even now, only 98 thousand shares of volume despite being up 50%.”

So I looked at it and just felt the risk on this is just too high. And we had just earlier seen … Oh, gosh. What was the name of the stock? Oh, TRT. TRT had popped up on the scans, and this one I was really close to getting FOMO on and just jumping in. I almost did it. It squeezed up from $5 out of nowhere 538. I almost jumped in, and then I was like, “Give it a second.” And it flashes back down to 496. 40 cents back down. And then drops to 480. Now, its kind of sideways. But you know, jumping in with FOMO to one of these guys, you can immediately lose 20, 30 cents because of the spread. And then if it does actually drop, you’re down 40, 50 cents.

And that’s how you give up 600 bucks. For me, as a beginner trader, it wasn’t that I didn’t know how to make money. I knew how to make money. I didn’t know how to keep the money in my pocket. I’d give it back. That was my biggest problem. So learning to walk away is something that you have to learn. I mean, it just takes time. So EDNY, or what was this? EDRY, it pops up on the scanner. I look at it at 899, and I’m like, “Well look, it’s 899, but then there’s the bid, 850.” What am I going to risk 50 cents on this thing? Even with a thousand shares I’m going to give up my entire morning of profit if it goes the wrong way. It then, as you can see, comes back up to nine, and right there, with 5 thousand shares, goes up to 950.

5 thousand shares, I mean that’s how many shares I want to buy. 3 thousand maybe. So just 5 thousand shares, it goes up 50 cents. Another 14 thousand shares, it goes up another 70 cents and is halted. So this is 20 thousand shares of volume. If I want to buy 3 thousand shares, I’m buying like 25% of the volume in that move. It just, it doesn’t have the volume. It then opens high, as they usually do. Some traders get the FOMO and it squeezes up to 1160. It is … It may be a stock that some people are able to borrow and short, but I don’t know. So now it’s halted again and you kind of look at what’s the next move?

Now, SAEX yesterday started in a kind of similar way. It kind of all of the sudden pops up, and I was starting the midday recap also that it started. And when I first looked at it, let’s see. No, it was back further. I got to … Let’s see, let me bring this back. Okay. When it first started, it goes up to literally same price, 899, it pulls back for a second, and then it goes up to 950 on 11 thousand shares. It gets halted at 955, it resumes, goes to 1089. Again, 14 thousand shares, this is almost like a mirror image. It then goes up to 1278, pulls back for a second, and then it gets some continuation.

So for me, and obviously as the day goes on, it goes further, for me with this one, EDRY it’s something we can certainly watch. Out of nowhere, the volume is only 98 thousand shares. This is a 50% move. It just isn’t something I can trust right now. So the time of the halt was 10:42, so … Sorry, the time of the halt was 10:39. So resumption will be 10:44 and seven seconds, roughly. But yeah, I’m really not … Even if this does an SAEX type of move, now it’s above $10, it’s outside my price range of when I usually really do well, so the risk is just getting higher, and higher, and higher. And hey, I’ve got a choice. I’ve got $600 right there of real money.

Do I walk away? Or do I keep trading? Because if I keep trading, even with small size on this one, it wouldn’t be hard to lose 4, 5, 6 hundred bucks. So that’s where you have to make that difficult decision. Now, for me, the easiest way to do it is to go like this. Close the platform. Close this down like this and then turn off this monitor. I’ll leave the charts up for you guys, but that way I don’t have FOMO. What you don’t see doesn’t hurt you, or whatever that saying is. That’s kind of the way it is. It’s like if I can’t see it, I’m not going to get FOMO. So sometimes you have to know when just to get up and walk away. And it can be very, very difficult. I know.

I mean, I’ve been through this. And maybe tomorrow I’ll look and say, “Ah, why didn’t I trade JONE?” But when you look at my statistics, you’ll see that I make the bulk of my profits from 9:30 in the morning to 10:30, 11:00. And we’re getting really to the edge of that zone. It’s not a good idea for me to start to get really aggressive. That’s where FOMO kicks in, that’s where mistakes happen. So you have rules for a reason. It’s capital preservation. You will learn that it is not hard to make money trading. It’s hard to keep it because your emotions tell you to chase stocks. To jump in EDRY, to jump in this, to jump and that.

And you jump in one of those and you get yourself into a lot of trouble. So those of you who are going to stick around and trade it, hopefully you’re at a level of discipline where you can trade smart and not get yourself into a jam on it. I’m just going to do the smart thing and step back. Now, if I had a cushion on the day today, if I was up $5, $6 thousand, maybe I’d say, “You know what? I can afford it. I can afford the risk.” But I took all of last week off. I wasn’t here. The week before, I only made like 2 thousand bucks. The week before that, I only made like a thousand bucks.

So I’m really only up like $4 thousand on the month of September. This is not a month where I have a cushion. This is not a day where I’ve got a cushion. I’ve got to continue to follow my rules and trade smart until I get out of this kind of slow spot. So the good news about being in a rut is you got nowhere to go but back up. You’ll get out of it, and that’s the way it always is. You don’t know how long you’ll be in it, but you know you will get out of it eventually. So that’s kind of where I’m at here today. Good luck for you guys who are going to keep trading. Trade smart.

And remember, this Thursday, 1:00 PM eastern, we’re going to host a workshop. All right, so any of you guys who have been thinking about getting into trading, you want to learn more about what I do every single day, those of you watching on Facebook or YouTube, those of you in the chatroom who want a little bit more help getting over the learning curve, join us Thursday, 1:00 PM eastern. All right, so that’s it for me, I’m going to let you guys go, and I’ve got a meeting with a student here coming up at 11, so I’m going to jump over to that and I’ll see you all first thing tomorrow morning, back in the chatroom. All right, thanks everyone, I’ll see you guys later.

Oh hey, I didn’t see you there. Well, 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 anytime go live or upload new videos. Until then, happy surfing.