Warrior Trading Blog

Red Day Recap hitting Max Loss on 1st trade!

max loss

Red Day Recap hitting Max Loss on 1st trade!



All right, guys. So why don’t we do our midday market recap. We’ll go over the trade. Only one trade this morning. So today is a red day recap. It’s actually my sixth red day of the month so and I talked about this last week how I’ve already exceeded my four red days per month. Although actually, this month we’d probably be okay with five.

Well, I mean, we kind of have five weeks this month carried from Tuesday and then all the way into Thursday so it is five weeks, so five days is okay, I guess. But hopefully, I’m still a little disappointed that I have six red days. I’m hoping that I can keep the rest of the month in the green. But this morning, really, I didn’t see a lot of good opportunities. I took one trade on what seemed like the stock that offered the most potential and I was just on the wrong side of it and got stepped out really quickly.

So we’ll look at that trade, that was FSNN. On this one, we had a big gap. So we were gapping up like over 100% and even though we’re gapping up a lot, doesn’t mean we can’t continue higher. So when I looked at this, we have a pre-market high of 296 and then it dropped to 218 so I was a little worried pre-market that it had dropped down on that candle.

I thought that was a big of a concern. But what it also showed me is that this stock has a lot of range. It can either go up quickly or down quickly. It can move quickly. So right out of the gate, so I thought, “Well, this is the type of set up that I could get in this over the half dollar right here at 50 and the target would be a retest of pre-market highs which is a solid 50 cents.”

You can see, so I jumped in there at 49 and 50, 5,000 shares. It pops up to 59, it’s up like 500 bucks, and then it drops down to 25 and I stepped out at 22. So it’s just, I had to step out. I couldn’t keep holding it. Then it consolidates here. It drops down a little further at 9.40, I tried to get back in at 214 and my order got rejected. I was trying to get in for the first five minute candle to make a new high which is right here. My order got rejected. I switched to a different route. I tried to put an order down at 95 which ended up getting accepted. So I was like, okay, I figured out the issue. But at that point, I decided I didn’t actually want to get back in to trade. That was probably for the best that those orders were rejected.

So that was it. I mean, that was the one trade of the day that I was looking at, FSNN, and it just, we didn’t get any follow through on it. It was just weak and it’s been weak. It is what it is. RTNB, this one has continued this morning with pop right out of the gates but then it’s been fading off that level. We were watching MOMO, Momo, this one was definitely being closely watched by a number of you guys.

Roberto had a great trade on it off the lows here. I was watching it but at that time, I was like, “Well, I’m already down 1,300 bucks.” This is where I have to be really careful because if I go for Momo, am I deviating away from my go-to strategy and am I being desperate? Am I going to jump into Momo with 5,000 shares or even if I jump in with only 500, it’s just not what I’d typically would trade.

So as I started to watch it, I thought, “Well, I think if I trade this, I’m kind of breaking my rules a little bit. So I’m just going to let it be, let it do its thing.” So Momo, I didn’t take a trade on. I right now have a thousand dollar max loss but on daily, today, when I hit it in the first minute, like right out of the gates, I would let myself take another trade if it was really, really good. But remember, if I take another trade and I lose another 400, 500 bucks, I’m going to be down like two grand and I really don’t want that to happen. So today’s bad enough at 1,300 bucks. I don’t really want to make it any worst.

So basically, today gives back, I made 1,500 on Friday so I just basically gave back Friday’s profit so only given back one day, not a big deal. Whatever your daily goal is, say it’s 200 bucks, this is like a $200 loss so really not be beating up or frustrated particularly on this one. It’s just a trade that didn’t work.

Another one that we were watching was THO. This was an interesting one that squeezed up from $104 all the way up to 113. What was interesting in on the daily chart, at 113.50 was gap fill. The gap fill was, let’s see, based on March 6th, 2017 … No, on Friday, I’m pretty sure I made 1,100 on Thursday and 1,500 on Friday. That’s what I wrote down. I could double check it on my YouTube video but I’m pretty sure that’s correct. Anyways, so THO squeezing up, topping 113.50 and I was kind of watching it but the thing with this one is the spreads are really big.

It’s a $110 stock, topped 11.65 and then started to pull back. I was sort of watching it in this level here. You can see right here, this is where it just finally broke and dropped pretty hard. But with the big spreads, I just didn’t really feel comfortable trading it and on this one, I sort of was thinking the same thing that it was just going to be too risky. So ended up not trading this one which was probably for the best, just steer clear and stay focused. So didn’t touch it. That was about it.

My watch list for swing trades, nothing really setting up for super well at the moment. I don’t know if it’s the overall market but I don’t see anything looking really good for a bull flag. I saw a couple, hang on one second. Dude, why don’t you just go on my Facebook and you can look at what it says. It says $1,519.67. Just takes two seconds and go look. It’s right there. All right. So anyways, the daily bull flags, like I said, nothing that looks really, really good there. The stocks that were up 4% yesterday, not seeing anything on there that’s fantastic. IMMU, that one’s the one that we could keep an eye on but it’s getting kind of extended now from $8 all the way up to 11.38.

All right. So right now, swing trades aren’t looking good but I’m still updating the watch list. So you can check the watch list over on … Go into the dashboard and then you can see the watch list and take a look at the stocks that I’m kind of keeping an eye on. You guys may end up seeing those and taking trades on them, some of them will end up working and I might sit on the sidelines.

We had, I think it was BW, was it BW, we had a couple of really good reversals that were on the watch list that I didn’t end up taking because I felt like the volume wasn’t quite right or the spreads weren’t ideal. But it doesn’t mean that you guys can’t take these trades if you think they look good for your risk tolerance. Yeah, Win, this is one of our swing trades. It’s kind of looking at little bit better, growing back up so it’s pretty decent right there.

All right. So that’s about it for today. Kind of a little bit of a slow day. I mean, kind of disappointing. I would definitely like to have more trades and more opportunities but being able to make back … Whenever I’m in the red, 1,300 bucks, whatever, there’s definitely that desire to be able to make it back on the next trade so I was looking at the next one and sort of trying to figure out, “Okay, which one is it going to be?”

And I just didn’t see one that was worth trading and I think that that is definitely better because if I had gotten back into FNSS, I probably would have just lost money or FSNN. I thought about it right here. I tried to get in, didn’t work. I didn’t understand what was going on and then ended up whatever, just not getting in because my orders didn’t go through.

On the high day, Momo scanner, you can see it’s really not a lot. ANTH was on there but just nothing really, nothing really there for me. Popped up and then sold off. Momo’s dropping down. TNDM, this one was in play but I just felt like there wasn’t for me the risk to reward ratio. I don’t usually like trading these ones around a dollar unless they start to squeeze up and show like a lot of strength the way RTNB did last week.

This one, as I was looking at it on the level two, it looked pretty crowded. Didn’t think it was going to make a big move so I just sort of was like, “Nah, forget it.” So that one didn’t trade. SGMA, I saw it hit the scanners but there was no news on it. MNKD, I don’t like. BLCM, John called this one out early and it did look pretty decent, closer to $10 but nice the way it was starting to open up there, pretty nice move.

So you can see, this is sort of the scan today. NXTD popping up but by that time, I felt like it wasn’t worth trying to go into this and look what happened, it hit that 200 moving average and just got slammed back down. So definitely had the right approach to stay away from it. You kind of have to figure if on the days when I’m green in my first trade, those are the days that I’m going to start being a little bit more aggressive.

If I’m red right away, those are definitely days that I feel like I need to scale back. On the flip side, if you were a short seller, let’s say I’m red right away, maybe a short seller’s green right away because the market’s choppy, then he might be starting to get a little bit more aggressive and starting to push harder and so I feel like that kind of creates this imbalance more to the short side. So you kind of feel, is the market strong to the long side today or is it strong to the short side? It’s sort of one or the other.

All right. So and yeah, the Win swing trade, I didn’t call out. I did call it out. I didn’t do an email alert on it. I just didn’t think that the … I just wasn’t sure on it. It started as a day trade and then turned into a swing trade. All right. So let’s see. I guess that’s about it for today. Pretty much just sitting tight at this point. I’m not going to over stay my welcome. Just call it a morning and be back at it first thing tomorrow morning. Okay, so that’s it. I’ll see you guys in the morning. Bye.

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