Warrior Trading Blog

May The 4th is With Me +$8K!

may the 4th

What’s up, everyone? All right, so here we are finishing the fourth day of May. My 79th trading day of the year, up 8,500 bucks. So just this is crazy.

 

And you know what, when I started on May 1st with a $3,000 losing day, it was my fourth red day in a row. And, you know, you can go back and watch the recap. I was starting to feel a little bit bummed out. And then all of a sudden out of nowhere, $29,000 on Wednesday, another $29,000 on Thursday, $8,500 today, and just like that I’m up $63,000 on the month. Things have really turned around and suddenly, I’ve got a shot a $100,000 month. Best month of all time, $117,000 and I’m halfway there in four days of trading.

So right now it’s just about getting down to the grind, trying to get good quality setups every single day. And I’ve got a big cushion, so I can afford to be a little aggressive. But I have to be able to like we said earlier in the week, see the rain on the windshield. You know, when I’m trying to get my best lap time around the race track, if it starts to get choppy, if things aren’t quite right, I’ve got to be able to adapt. I’ve got to be able to adapt faster than I have in the past.

So if I start seeing a loss stocks pop up and get slammed back down, I’m going to be slower about just jumping in and trying to chase the momentum. Chasing momentum works in a hot market, and you can capitalize on it. That’s called capitalizing on the FOMO. But you don’t want to fall victim to it so you really have to be really in touch with the emotions in the market.

And so, Monday morning we’ll see what it has in store for us. I’ll be back at it first thing 9:00, 9:15 doing pre-market analysis, and I’m hoping that we see some more really good setups. Because right now, things are pretty hot, and I’m pumped about it. All right, so let’s break down today’s trades in today’s mid-day market recap.

What’s up, everyone. All right, so we’re going to do a quick little midday recap here. It’s a little later in the day. I traded a little bit longer today than I would on an average day. But we’ve been in the market right now where it’s been important to try to capitalize on the momentum.

So finishing the morning up $8,594, another great day of trading. Yesterday, 29,000. The day before $29,000. I’m up 60, let’s see, $66,000 in … or almost $68,000 in three days of trading. I mean, it’s mind-boggling, it really is. You know, and I have a day where I make $30,000 in one day or $25,000 in a single trade. I don’t really think of it as in comparison to what it’s actually worth. I don’t really think like what I could buy with $29,000 or with 65,000, 66,000, whatever it is in three days.

But it’s almost like pretend money just the way I stack up these profits. This account was at $75,000 three days ago and now it’s going to be at 142,000 bucks. I mean, that’s crazy. I could literally take out $66,000 from the last three days of trading and go … I don’t know. I mean, what would I even spend … I don’t even know what I would spend the money on. But it’s crazy.

I remember when making $4,000 in one day was mind-boggling because that to me at that time was enough to pay all my bills for the entire month and then some. So $4,000 in a single day was like, “Wow.” That was whatever, four or five years ago. Now making $29,000 in a day, yeah, that’s more than enough to pay all my bills for the months but it’s pretty crazy. The market is an incredible place.

And so what you have to learn is how to capitalize on the FOMO and not give into it. And so in the last couple of day, we’ve seen a lot of huge opportunities. And so they’re driven all by this first move on IMT. This is really what got things going this week. And you know, well, from $2 to $40 is incredible but last week, GMPX was also really impressive. This stock squeezed up from $6 all the way up to $20 a share and it was a fairly recent IPMO stock. And I think that maybe was the very beginning of this recent IPO breakout.

So the recent IPO breakout is when you have a recent IPO and then we break out over the highs and we surge through them. So it happened there. It happened on BOXL. BOXL, recent IPO. Boom, it breaks out. It squeezes up to 15. IMTE, breaks out over 10, squeezes all the way to $40.

The thing with recent IPOs is that you don’t have any resistance because they’ve never been this high before. And a lot of times, there’s a lock-out where insiders aren’t going to be able to sell shares anyways. So you don’t have that upside resistance of people selling.

Now, I don’t know what the lock-out period is on any of these penny stocks but it’s something that’s very common when companies IPO. So in any case, these opportunities paved the way for sympathy momentum. And we saw it on VVPR yesterday going from $2 to $6. We saw it MKGI yesterday squeezing up from $2 to $5. But what you’re noticing is that a lot of these stocks aren’t holding their levels really well. They’re hitting these highs and then they’re rolling over.

So the FOMO, that Fear Of Missing Out encourages traders to buy higher and higher and higher because they’re thinking this could be the next stock that goes to $40. And so they’re just buying it up and up and up. But then short sellers begin to see that these stocks are failing and so they start shorting it more and more aggressively. The stocks don’t continue. Long traders bail out. They drop, more short sellers come in, and that’s where you start to see the imbalance.

So today being the third day of hot momentum, I was very mindful of the fact that we needed to be careful. First day is always great. Second day is sometimes better than the first day. But third and fourth day can start to be pushing our luck. And so someone asked me should I trade IMTE today and I said, “Well, I’m personally not going to trade it because it’s the third day and I think it’s going to be too difficult.” Same with BOXL, it’s the third day, it’s going to be too difficult. We need to look for fresh opportunities.

And so we had a fresh opportunity here on LENS. This one just started to move yesterday and it continued into today. So on this one, I had an order to buy 15,000 shares at 4.50 out of the gates. I only filled 1,900. It popped up to 5.50, what could have been a $15,000 winner but it didn’t hold that level at all. It sold off and I ended up stopping out with just $1,000 of profit. And that was my first trade of the day.

Second trade of the day, BLIN. This one hits the scanners, starts to squeeze up. Fresh momentum. I see it breaking the 200 moving average and I jumped in. So I jumped in at 55, 55, 58, 70. I’m adding as it’s going up. I’m being aggressive because I know that these stocks are going $2 to $5 in a matter of 15 minutes. And when you see one starting to take off at the right time of day, which is between 9:30 and 10:30, that’s the time to be aggressive in this type of market.

In a slow market, I wouldn’t have even gotten in this because I needed to wait for a pullback. But in this type of market, I jump in and I ride the momentum. It squeezes up to a high of 350 which for 12,000 shares was at the high maybe almost seven or $8,000. I end up stopping as it comes back down with 5,300 in profit. And again, it’s a stock that didn’t hold the level.

So again, now we’re seeing a couple of stocks that pop and fade, pop up and fade, and I’m thinking that we need to be a little bit more careful and we need to be more selective about what we’re willing to trade because I don’t want to continue to get stopped out.

I ended up taking a couple more small trades on BSPM, a stock that pops up, hits the scanners, goes up from 2.80 to 4.17. I take a trade on NFEC, a small win on this. Just scalping the pullbacks. So we get little one minute pullbacks right here and I’m jumping in for the break of that flag pattern. CCCL, jumped in at $2. Sold at 2.10. Not the easiest stock to trade and seen that, the one that I lost on.

So overall today was a decent day of trading but we didn’t see the same level of extension and just emotion that we saw on Wednesday and Thursday. So things are coming back down a little bit. And what I encourage you guys to do over the weekend is study the charts and re-watch those midday recaps from Wednesday and Thursday and just try to really understand how you would have traded those stocks.

Because next week Monday, Tuesday, Wednesday, we may see momentum come back into the market. And I want to make sure you guys are able to capitalize on it, make some money, produce some profits so you can really start to build that cushion on the month of May for those of you that missed some of these opportunities this week.

All right, so again, we’re just in this market that is giving us some great opportunities. Even though I started down 3,000 on the first day of the month, I’m now up 62, $63,000 for May. And suddenly just like that, this is setting up to be potentially my best month of all time.

Best month for me is 117,000, so I’m more than halfway there in four days of trading. And I still have three and a half weeks left. So I’m excited. I think this is going to be a really awesome month and let’s just see what happens.

So anyways, I’ll be back at it first thing Monday morning, 9:00, 9:15 in the chat room. And anyone that has questions over the weekend, feel free to post them below. We’ll come back and answer them over the weekend. All right. So that’s it for me. I’ll see you guys first thing on Monday morning.

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