Warrior Trading Blog

Keeping The Losses Small -$1,400 | Ross’ Trade Recap


What’s up everyone. All right, here we are finishing the morning. Down $1,400.00, but it’s been a nice hot streak.


We had five really great green days of trading, so today’s the day where I’m paying my dues, giving back a little bit of profit, but keeping the losses small and below my … Or, I’m not below my $2,000.00 max loss in a day, which great, so a little setback, but we’re back at it first thing tomorrow morning, 9:00/9:15 pre-market analysis, and hopefully we’ll see some better momentum, all right? We’re going to break down all the trades in the Mid-Day Market Recap today. Any questions, leave them below, and I’ll come back through and answer them later on. All right, enjoy.

All right, everyone. So we’re going to break down the trades from today. This is the first red day now after a nice five day green streak. You know, I was really hoping that we would see momentum continue today, but the market was really quite choppy. Although I could have escaped with about $1,000.00 of profit, I pushed my luck on that last trade, and that cost me $2,000.00. So I went from being up about $1,000.00 or so, $900.00, to being down about $1,400.00, which is a bummer, but in the context of five really nice green days, and $12,000.00, $13,000.00 of profit, a small step back.

So the good news is I’m still trending up, which is great. The bad news is just that momentum wasn’t as strong today as it’s been in the last couple of days. This morning, our gap scanner was a little bit on the weak side. We really only had two that looked good: THST and HYRE. Those were the two that we were watching, and you can see, those are the two I trade really … Well, HYRE, $200.00 winner, and THST, a $2,600.00 loser.

So THST, this one was gapping up here significantly, about 100 percent. The bell rings, and I jumped in it for a break over $3.00, looking for a re-test of high a day. I’m in at three, it pops to a high of 310, and then it drops down, as you can see here, to like 270. So on that very first trade, I jumped in, let’s see, with 9,000 shares at three, I sold a quarter at 308, more at 307, the rest at 98 and the rest at 90.

On that trade, I actually on 9,000 shares lost $200.00. It wasn’t the worst trade, and the rest at 81. It wasn’t the worst trade in the world, but it was kind of disappointing. That was my first trade there. When I jumped into HYRE, this stock was squeezing up on the one minute, and we were watching this for a break over the pre-market high, or the high a day, which was 385. So as it was squeezing up, I got in at 364 and then was adding into this move up to 410.

Right there, I made about $2,300.00, or $2,400.00 on that first trade, which was really solid. It doesn’t pull back, I get back in, I scalp back up to 410. It doesn’t hold that level, but I was able to make a little bit profit. It drops back down, it then comes back up here. Again, I do another scalp, but it doesn’t hold that level. It keeps double topping at 410, and then fading. So, kind of a disappointing stock just the fact that it couldn’t break over that 410 resistance point.

It started to crawl back up again here, and then it faded again. Having said that, this was a nice move out of the gates, from 340 up to 410, and it was enough to give me $3,200.00 of profit. So that was good. Between these two trades, I’m up like $500.00 on the day, or $700.00, or whatever it was. It wasn’t a big day. THST actually got back into … I took a couple more trades on it. I got back in right here, thinking it was going over 310, and it totally dropped.

I mean, I got in, and it immediately came right back down. So, a second loss. I got back in here at three, I stopped out again right here. I got back in at right here, I stopped out again right here, and then it squeezes up. I didn’t get back in, and thank goodness, because this drop ended up being the worst. But in total, I took four trades on that stock and I lost each time. This one just did not respond to the breakout setups. Each of the breakouts faded and failed. False breakouts on this. Four out of four, zero out of four, in terms of winners on that one. So that was disappointing.

IDRA, I took a small scalp on it. Nothing to be really excited about there. That was right here. For the first [inaudible 00:04:59] make a new high at 380, it ended up popping up to 93 and then dropping back down right here. Look at the big red volume. That’s where I stopped out. Then it goes back and squeezes back up to $8.00. So, it runs without me. But I made $100.00 on it.

SYN, this is the only one that I’m annoyed at myself for, because on this one, it squeezed up on a very light volume, and got halted to the 355. It then resumes and hits a high 382, and pulls back. Typically, the way I trade these types of halts, coming out of the halt, is a one minute opening range breakout. So as it squeezes up right here, I got in at 380 for that one minute opening range breakout.

It pops up to a high of 412, which was awesome. And then it drops all the way from 412 to 341. I held for a second, giving it a chance to pop back up, and as it dropped right here, it got halted on a circuit breaker going down. What happens 90 percent of the time when stock are halted going down? They open lower. And this did, it opened lower and then sold off to $3.00, and I lost $2,136.00 on that trade. This was an okay trade, I guess. It was just really disappointing that it failed as hard as it did.

I should have expected it because it wasn’t on the scans, I had light volume, it was called out in the room, but it just wasn’t a good quality setup. That was my fault for taking a high risk trade, when I really didn’t have the profit cushion to afford the loss. So I went down $1,400.00. $2,000.00 is my daily max loss. I’m going to throw in the towel here, down $1,400.00. No reason to push it. The writing’s on the wall. I have four losers on THST, one loser on SYN, a small winner on IDRA, and then two small winners on HYRE. Well, I guess one of them was big, and then two small ones.

Whatever. I’m throwing in the towel. I’m not going to push it. There’s no sense in getting overly aggressive on a day like today. The market is not strong for small caps. It’s just a little disappointing, but you know, I’ve got to pay my dues. I had five really great days of trading, and I will be back at it tomorrow. And the reality is, $1,400.00 from a monetary sense, doesn’t really matter, for me. And so it’s not a big deal there. It’s more of the frustration of having four losers on this one stock, and the frustration of having a totally unnecessary loss right here.

That’s what frustrates me, more than the loss. It’s just taking trades and being wrong, even when I’m kind of following the rules of the strategy, and then breaking the rules of the strategy and taking an unnecessary loss was stupid. So, you know, that’s the way it goes sometimes, but fortunately, it’s still early in the week, and I’m still green on the week. So really, at this point, it’s just about trying to regain a little bit of momentum so I made $2,800.00 yesterday, and lost $1,400.00 today. We’ll see what we can do tomorrow, and going into the rest of the week.

Hopefully I can kind of get things back in gear. I made $8,000.00 last week, which was a good week. I am still down about $2,400.00 on the month, so August continues to be a difficult month for me, probably the second most difficult month of the year so far after February, but we’ll see where it finishes. You know, there’s always hope. We’ve got, I guess, about two full weeks left in the month right now, and yeah, I don’t know if I can $10,000.00 a week. I’m not sure if I can in this market. But, I’ll try and see if I can finish the month up $20,000.00, $25,000.00.

That would be good. I’d like to be there, but you’ve got to trade the market you’re in, not the market you want to be in, as frustrating as that might seem at times. So I’m going to follow the rules, walk away today, the writing’s on the wall, I’m not going to overstay my welcome. So I’m shutting it down. I’m not going to save the changes, and closing these charts so I don’t FOMO. I don’t want to look at it for the rest of the day, I’m walking away. I’m done. Whatever. Save that.

You know, that’s the smart thing to do. If I sit here and I just watch things, then inevitably, I’ll see something that looks interesting. That will convince me to take a trade, which is unnecessary. Our daily today, odds are, I’m just going to lose more money. So you have to just have the discipline to shut it down and walk away. All right, so that’s it for me. I hope you guys had a better day than me. I know some of you guys did make money on HYRE. You didn’t get into some of those other trades, so some of you guys are finishing green, some are probably finishing red. It’s a choppy day all around, whether you’re a long trader or a short seller. Lots of whips.

Not easy, but we’ll be back at it first thing tomorrow at 9:00 and 9:15 for pre-market analysis, and hopefully we’ll see a little bit more in the way of strong momentum. All right, that’s the game plan, and I’ll see you guys back at it in the morning. Until then, happy surfing.