Warrior Trading Blog

Life is Good! +$2,473! | Ross’ Trade Recap

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What’s up, everyone? All right, so today’s one of those days where I feel like I’m the man on the mountain saying, ‘Well, come on up.’ Now, yesterday, I felt like the plow man in the valley with a face full of mud.

 

I was down 1900 bucks. I was fumbling. My trades wouldn’t start. I was stumbling. I bought a bad shooting star. But today, everything turned around. This afternoon, I’m going to be the man who walks the hillside in the sweet summer sun. I’m finishing up $2,473. Life is good. If you got it, you know it. If not, stay tuned for the next one. Today, the midday recap is on fire. A great day of trading, gets me back from yesterday, and I’m happy about that. So enjoy. Any questions, any comments, leave them below, and I’ll see you guys first thing tomorrow morning. …

All right, everyone, so we’re going to do our midday market recap and go over the trades from this morning. This is a green day of $2,473. It’s a nice green day for the market that we’re in. It’s kind of like we’re in a market where one step forward, one step back. That’s kind of how it’s felt. I lost some money yesterday, was down 1900 bucks; but bounced back today, $2400. Between the last two days, really not a lot of profit. Basically, a couple hundred bucks, but that’s okay. Right, it’s just keeping your head above water, treading water, survive so you thrive. It’s kind of like live to trade another day.

It’s a green day. I’m happy with that. Quickly made back yesterday’s losses. That’s good news. Three stocks I traded, good trades on all three of them. Wasn’t super aggressive, didn’t get myself into trouble, didn’t take 10, 15,000 shares. Maxed out at 6,000 shares, followed the rules. All in all, that’s a good day. When you come out on top following the rules, that certainly feels good. I’m happy with that.

I would say today, we did see more momentum in the market than we’ve seen in the last three days. KOSS was a nice set-up for continuation. MYND, some good strength out of the gates, and YECO, a little surprise move. This UXIN, I’ve been kind of watching, but I’m not going to trade it at this point of the day. It, out of the gates, ended up dropping down, going sideways, and as it sort of moves up here, it’s not really like my go-to set up. That one I’m leaving alone. NEWA, NEWA, this one, new water. Technology, I’m also leaving alone; really volatile the last couple days, like crazy volatile. I just didn’t really feel super comfortable trading it. It’s outside my price range. This is not my go to set-up. So, followed the rules, and I’m coming out of the day green with more money than I started with.

That’s always a good thing. I think that’s kind of got to be your attitude right now. You got to scalp your way to the daily goal. You want a little bit of profit? You got to take it, right? You get a little profit from the market, you take it and you get out. Get in, get your five, 10, 15 cents of profit, and get out. That’s the market we’re in. We’re not in a market where you can just hold and let things work, and just let it ride. If you have profit, you’ve got to take it.

I did that today on these three trades, or these three stocks I traded. I’m happy with that. Could I have made more by holding the initial position and letting it ride? Sure, but just as easily, they could have come right back down to break even, and I wouldn’t have had any profit at all.

This month is about capital preservation. It’s about staying alive. I think I’m doing a pretty good job of that. I’m just kind of grinding and hoping that we see some better momentum. Maybe next week, I mean tomorrow’s Thursday, then Friday. I don’t know if we’re going to see a whole lot through the end of the week, but you never know. We might. Then, next week, there’s always hope that we finish the month of August strong. In one day, I can make 40, $50,000 in a hot market. Things can pick up really fast, and then we start seeing sympathy momentum. It’s stock left and right, and that gives us great opportunities.

Remember, this IMTE stock out of nowhere on one day, it goes from $2.29 to a high of 40 bucks. The previous day, nothing, nothing, nothing; and then it goes from $2 to 40 bucks. On that day, I made $26,000, or was it $29,000? Either way, it was a great day. The market can be really slow, and then suddenly surprise you with a great opportunity.

This morning, we’ll take a look at the gap scanner. Those of you guys in classes, when we do these mid day recaps, we’re going over everything we talked about in the classes. Learning to trade, it begins with understanding the foundational concepts of the market, finance in general. Then, each day we have a job, which is to try to find a stock that’s worth trading, try to find a stock that has the potential to make a 20 to 30% move. The biggest discovery for me as a beginner trader was when I realized that every single day, there’s a stock that moves 20 to 30%; every single day.

Once I realized that, my job was to find that stock as early in the day as possible, try to buy it when it’s up five to 10%, and hold it until it’s 20 to 30%. Now, I also realize that several times a month, and sometimes even several times a week, we will see stocks that go up 50 to 100% in a single day. Those are your momentum stocks on steroids. Those are the ones that can give you the opportunities to have huge winners, but at a kind of minimum level every day, there’s 20 to 30% movers.

Today, USCG. This stock’s already gapping up 23%. NEWA already gapping up 20%, according to the scanner. The scanner was a little finicky this morning. It wasn’t exactly right, which was kind of weird. I wasn’t really actually that interested in any of these. The floats were too high. The prices were too high. What I decided to watch was KOSS, which was a continuation set-up from the move yesterday.

A continuation is one of the set-ups that we trade. The biggest challenge with it is that you won’t necessarily find these stocks on your gap scanners, because they’re not always gapping higher. Sometimes, they’re just going a little bit sideways. Sometimes they’re even gapping down slightly, but what they all have in common for continuation is that the previous day was a big day. KOSS yesterday goes from a low of 310 to a high of 415, so a pretty nice, big candle, a good volume.

Today, I was watching it and thinking, ‘Okay, if this thing can break over yesterday’s high, I’m interested.’ We’ve got this kind of like ascending trend line, like kind of right in here. I’m watching it over 415. The bell rings, and on this one, I end up doing a one minute opening range breakout. All right, so those of you guys who have gone through chapter six, the gap and go strategy, the top of the one minute candle is our entry, the bottom is our stop. On this one, I jumped in it at 404. Actually, I got in a little early, 402 and 406. I got in it.

As soon as I started seeing some green on the time in sales on tape, reading the tape, seeing that flow of buyers, I was like, ‘Yup, I’m jumping in this quick.’ By getting in early, the good news is that my stop is the same. It’s still 390. With an early entry, I’ve got a tighter stop. I get in early. It breaks over 405, 406, and pops up to 418. Consolidates for a second, drops down to 396, moment of truth, will it hold? Pops back up to 420, and then pops up to 433; which was nice. So on that one, I had 6,000 shares and I was selling at 17, 18, a little bit at 33.

Then, I decided to add back as it was squeezing up here. Once it broke, it pulled back at 33 and then once it broke over this level, I added back for the break over 440 with a target of the half dollar. It pops up to 460 right here. So up to 460, I’m in at 39. I’m selling at 58, having to cancel orders that aren’t filling, selling at 52, and then I add at 58. I add right here on a one minute micro pullback, a flat top at 60, add at 58, it pops up to 69. My goal is to scalp that little breakout. I sell 700 shares at 67. The rest is 65 and 61. Just like that, I have one, two, three winning trades all on the one minute chart. All right, so three good trades on the one minute chart. It then drops back down here. I want to say, … Yeah, so that was the end of that trade. Then I switch gears to MYND.

MYND was off of our high of day momentum scanner. All right, so this stock hits the scanner right around … what was it? Like $1.50, $1.60? I see it on the scan, and I’m looking at it. It pops up and I’m like, ‘Okay, I’m going to watch this for a second.’ I’m watching the time in sales. I see a volume comes in, and so I get in right here on this candle at 65. I punch the order at 64 and 65. Boom, I’m in with 6,000 shares. It pops up here to set to 86, and then to 96, and I’m scaling out into the move, but adding back for high of day break. I sell at 74, then I add back at 75, and it holds that level. I sell at 85, and then I add back at whatever, 82. Then, I sell at 81, and add back at 96, and sell at 202. I might have had a couple … a small loss in there, but a couple scalps. I’m able to make about 900 bucks on that stock.

I get back into KOSS. This one was a … When I got back into it, it was a one, two, three, four set-up on the one minute chart. We had the move up, so one, two, three, and then four. I got in right there for the break over this level, and it tests the high of day. I jump in at 41 and 46. I’m able to take some profit, 54, 55. I add back in 56, looking for the high of day break up here to 67. It pops up to 62. I try to sell, try to sell. I don’t get filled, and I ended up stopping out on the way back down, and all the way at 420, and giving back on that like 500 bucks or so. I went from being up about $1800 on KOSS, up to 1300; which is good. It’s still green, but not as big of a winner as I was hoping for.

Then, we had YECO. This stock was halted this morning, and then it resumes trading. It dips down for a second, and as it surges back up, I jump in with small size. I tried with 3,000 shares. I got a partial fill, only filled 1700, and started scaling out at 48, 52. It gets halted. It resumes higher, taps a high of 71. I’m scaling out a little more, a little more; only 270 bucks. It wasn’t a big trade or big size. This one was also on the scanners. But, we knew that it had the resistance of a 200 moving average. I was kind of mindful of that. It wasn’t what I was comfortable swinging for the fences on, but I thought it was at least worth a scalp. Yeah, it ended up being okay.

Those were my three stocks I traded today. 2400 bucks, green is good. Still have that goal of getting the account back up to 100 grand. That’s kind of what I’ve been doing, getting it up to 100, then taking out $25,000 back up to 100, 25,000 out. If I have a couple of really good days of trading, it might get up to 125, and then take out 50. This month has been grinding. I haven’t been able to take anything out. I’m just kind of going sideways.

The thing today is my biggest position was 6,000 shares on KOSS at 450, it’s like 27, $28,000 in the trade. I really don’t even need all this cash in my account. I certainly could take this out and draw my account down to like 40 grand, or something like that, if I wanted to or if I needed the money. The only thing is that we may see a stock, like a KBS type of stock that ends up being up in the five to seven dollar price range, like on this day here. It ended up selling off, but on this day, it’s 750. If it had pulled back, and then started to squeeze up, and I wanted to buy 5,000 shares, or 10,000 shares, and it was on margin restriction, I wouldn’t have had the cash.

To me, one of the things is if I think my money is going earn more interest somewhere else, then I’ll take it out; but if taking the money out means I’m going to miss an opportunity to make five or $10,000 on trade, then I should leave it in, right? Kind of leaving the account around 75,000 right now gives me a good buffer. I haven’t had any issues with buying power, so I’ll probably just leave it around there for the time being.

Anyways, so that’s about it for me today. It’s been a slow week. Didn’t trade at all on Monday, lost money on Tuesday, made it back here on Wednesday. I’m up like 400 bucks on the week. Really nothing to write home about there. It’s the 155th day of the year, so tomorrow will be day 156, Friday, 157. I am just hoping that we see a little bit of momentum so I can try to finish this month in the green. THat’s what I’m hoping for. Anyways, that’s what’s going on with me.

Warrior Pro students, class in about an hour at noon time. We’re going to continue on chapter seven. Over the last couple days, we’ve done chapter seven, and we’ve been going over all of the set-ups. Chapter seven is the momentum trading class, so chapter seven has 12 set-ups. We’ve covered eight of them, so we’ve got four more to cover.

I am break even on the month right now. Today, I’m up $124 on the month. Today, I go green, but it’s basically like break even. This is a month where it’s been one step forward, one step back, one step forward, one step back. Like I said in yesterday’s recap, during hot months, I’m going like this. Yeah, I have losses, but I bounce right back and make more. I make five to 8,000, $10,000 on good days. In slow markets, I have days where I lose 1200, 1900 like yesterday. Then, I have days where I make 2500. Then, a couple … basically like this is kind of the way it is in a choppy market. I might have one big loss here, and then I’ll just spend a couple days getting back. It can last this way for a couple weeks. Then, you start seeing more of the big days, and a couple more big days, and a couple more big days, and then next thing you know, you’re a week or so into a hot streak. That’s the way it always goes.

Right now, I’m just biding my tongue, trading with smaller size, grinding on these smaller numbers. It’s not the funnest thing to do, but it’s … just the way it is, just part of trading. You’re going to have hot streaks, you’re going to have cold streaks. How many weeks into a cold streak am I? Let’s see, … It actually started the first day of the cold streak was the 19th of July, so it’s actually been like a month of kind of cold trading. In that month, I’ve made, let’s see, … I guess I’ve really only made like about $1,000 or so in the last month. It’s really been a grind. It’s kind of crazy. During good hot markets, I’ll make 10, $20,000 a week. Then, in these types of markets, you try to get trades started. You get stopped out. You don’t see follow through. If you try trading with bigger size, that doesn’t really help. The losses just end up being bigger.

Remember, a winner with 4,000 shares, 10 cents, that’s 400 bucks. Good job. If you took 10,000 or 15,000 shares, you might not be able to get that full 10 cents of profit because you might not be able to sell 15,000 shares on the ask. You can sell 4,000 shares on the ask, but you can’t sell 15,000 shares on the ask, usually; not all in one block. That means you need a more sustained move to capture the same number of cents per share with bigger size. That’s the only issue with scalability is that you might think, ‘Well, I made this amount with 3,000 shares. I should be able to do it with 30,000.’ When you make those big jumps, it’s not always the case because what would have bene a small winner with 300 or 3,000 shares ends up being a 10 cent loser with 30,000.

All right, and so now that I’m trading with that type of size, but just … the example is the same. Even with 15, 12 or 15,000 shares, you just cannot always get out as quick. On these ones, I wasn’t able to fill 220 shares on the ask. I had to cancel the order. If there’s no one there to buy the shares, there’s no one there to buy it. That’s kind of the thing that I have been dealing with. Today, kept myself capped at 6,000 shares. I’m happy with that. Obviously, I’ll make money faster when I can increase share size, but the market needs to warrant the increase in size.

All right, so that’s it for me. Class starting in about an hour. Everyone else, I’ll see you guys first thing tomorrow morning. Hopefully, we’ll have a nice gap scanner to wake up to. All right, I’ll see you guys in the morning.

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 any time I go live or upload new videos. Until then, happy surfing.