Warrior Trading Blog

Momentum Continues +$1,813.72 in 30min

momentum continues

Momentum Continues +$1,813.72 in 30min



All right, guys, so time for our midday market recap. We’ll go over the trades from this morning, finishing an awesome week. Even though it was only a four-day week, well, three-and-a-half days. We had a half day on Monday and then day off on Tuesday. I’m still finishing the week up just under $9,000 which is fantastic.

Accuracy this week 17 trades and 15 winners. Only two losers this week. That puts me at 88% success and my accuracy between this week and last week is 90%, 90.625%. Accuracy is on point, momentum is on fire. I’m loving this start to the months. This is a great way to start July. I’m really hoping that it keeps up but right now, this was an opportunity in the last two weeks for me to make almost $20,000 just kind of really break out over that consolidation that I was having in my account for the last few weeks or whatever it was leading up to this hot streak. I’m just going to ride the momentum as long as I can. When it slows down, I’ll just keep reminding myself during that slow-down period that when it’s hot, you can capitalize. Don’t stress out when it’s slow. Hot streaks will come again.

That’s the thing I’ve been telling people who are asking me because last June I did really well. Last June was my best month of the year, June 2016. June 2017 wasn’t anything special. People are saying, “Well, is this seasonal? Is it the summers that are slow?” Or, “Is it the winter that’s slow? What’s the high period? What’s the slow period?” It’s not seasonal, it’s cyclical. We have hot cycles and we have cold cycles and they don’t really correspond for day traders to the seasons.

Yes, some people say the summer is slow. Last summer was fantastic. It really is more of a matter of the hot and cold cycles that we experience. Right now, we’re in a bit of a hot cycle. Today we had a really nice opportunity on ZN, surprise move squeezed from like 450 all the way up to 588. Hit a circuit breaker [halt 00:02:22] at 556, reopened higher. From there, squeezed up to 88. Got in that trade right before a circuit breaker halt. My entry was a long at 547. I was going for the break of the half dollar and I was thinking this had the potential to hit a circuit breaker and open higher. It was just super, super strong.

Now, one of the things that I talk about is the fact that long-term investors talk about buy low, sell high. Day-traders, we don’t really do that because we don’t really usually have the opportunity to buy a stock low and then sell at high intraday. We do in some ways but a lot of times we’re buying stocks that are already fairly high and we want to sell them higher.

Because we’re getting in high, we have to also navigate the risk of being a chaser, not wanting to chase stocks, making sure we have the right entry so we can reduce our risk. That’s something we kind of have to balance. On this ZN trade, I was definitely a little bit more aggressive with my entry at 47. I was sort of chasing it, but when you pull back and look at the 10-second chart on this, which I’ll show you guys who are watching in chat, you’ll see that my entry was based on this little bull flag right under the half dollar.

This little flag right here, we hit 46, we pulled back, and I saw it. As we started to pop back up, I got in for the break of the half dollar expecting that at this point we were getting really close to a circuit breaker halt because the stock had moved so much in the last five minutes. That’s exactly what happened. It halted at 56. It resumed at, let’s see … or it halted at 556, it resumed at 956. Reopening at 60 and squeezing up to 78. Just immediately gaping and going higher which is typical of circuit breaker halts.

When stocks are halted going up, they often open higher and continue to squeeze. Similarly, when stocks are halted going down, they often open lower. That’s exactly what happened. It rolled over and then halted going back down.

On this one, both long [bias 00:04:38] traders and short bias traders were able to catch a good trade which I suppose is nice. It’s now currently back up a little bit but I’m not getting back into it at this point. You know, it’s Friday. I don’t usually do as well on Thursdays and Fridays despite the fact that I did really well today and yesterday. I’m being a little bit more conscious that I’ll trade the first hour and then just really step out of the market and take the money and run. That’s got to be your attitude, capture your profit and get out of the market. If you’re doing that consistently, you’re doing something nine out of 10 traders can’t do.

That was my trade on ZN. My first trade of the day was VSTM and this was off the watch list. VSTM was a strong stock yesterday afternoon. I completely missed it because I don’t trade in the afternoons but it was really strong. I thought, okay, well, I’ll watch this for continuation this morning.

This morning, I’ll pull back this. Let me switch to a one minute chart. This morning it opens. Pre-market looked good and I was watching it long over like 60. Then all of a sudden it kind of sold off right before the bell. I said, “Okay, that’s fine. I’ll trade a red to green move.” I’ll let it dip down. First candle to make a new high is my entry. That was an entry at 340.

This ended up going all the way up to 377. What’s kind of sad is that it popped here up to 52 and then it dropped back down to like 40. In that moment I got nervous because you have to be careful on red to green moves because of the fact that you’re buying a stock that’s already shown weakness. As it popped up, I was like, “Okay, I’m up 10 cents. This is great.” As it came back down I was like, “Okay, I got to be careful. This is my first trade of the day. I don’t want a loss. I’d rather stop out break even.” I sold it for $17 profit. It ends up popping back up, breaking over the 20 moving average, and I kind of regretted it for a second and then I got back in at 56 right here and sold on the move up to 77.

That’s where I made the 700 bucks. It was on this second pull-back right here. I just got a little bit … a little cautious on it and I think that was fine. I don’t regret selling. I really don’t … I’m not going to beat myself up for that. It’s always better to stop out flat than risk having it go and suddenly drop 15 cents. Then I’m down 750 bucks with 5,000 shares. On my first trade, now I’ve got to work my way out of a hole and that’s never a fun way to spend the morning.

Okay, so three trades today. VSTM once, VSTM twice, and ZN was the third trade. Three trades, 100% accuracy. Yesterday was five trades with one loser. The day before was five trades, no losers. The day before was four trades with one loser. 15 out of 17 trades this week. I want to keep up this momentum going in to next week. I would love to maintain 90% accuracy.

When you’re trading at 90% accuracy, there’s just such a strong feeling of confidence because, you know, granted, this is only over a period of … let’s see, I guess about 30, 35 trades, 34 trades. It’s a smaller data set. It’s not 300 trades of 90% accuracy. Even when you’re in a window where your accuracy is really on point and you’re just nailing it, it just really boosts your confidence, and so I’m feeling more confident. I’m able to capitalize on that, generate better profits and this has ended up being a fantastic week. Last week was a great week. This week is a great week and I just want to keep it up.

The couple of things that I’m focusing on right now. Trade the best, leave the rest. Looking for A quality setups and then break out or bail out. I get in, if it doesn’t work right away, I’m getting back out break even or for a small profit like I did on the first trade on VSTM. There’s no reason to sit and hold and be stubborn about it.

Now, this is something that in the past has been hard for me because if I get into a trade and I’m suddenly up 10 cents and then I come to break even, I hate selling it for break even. Then a lot of times I end up holding and it ends up going red on me. So getting better at just getting our break even if it ended up not holding those levels has been really good and I’ve done that a couple times this week.

Looks like the best trade of the last two weeks was a $4,800. My biggest winner this week was only 2,500 bucks. This week was not even about having one huge massive trade. It was basically a lot of base [sets 00:09:46] and that got me up to almost $9,000 in profit. Don’t underestimate the value of just hitting those base sets. One winner here, one winner there. You do that consistently, you’re going to build up your account.

As of right now, my account is … or this morning was at 62,900. I’ll reopen on Monday getting closer to 64,000, making my way up to or getting closer to 65,000, making my way up to 70, 75, and then 100,000. At some point here I’ll take money out of the account, but right now I want to keep myself with enough buying power that if I do see something that I want to be really aggressive on, I have the capital, I can leverage.

I would need to see a true parabolic stock. Now, VSTM was okay yesterday. This actually was quite parabolic. I just missed it because it was in the afternoon. I don’t know if I would have been super aggressive on this pull-back here at 1:00 p.m.. It ended up opening up really well, but I want to see that stock that does multiple legs higher. The $2 to $3, $4, and then it keeps going to 5, 556, 7, that’s the one that I’m going to try to be aggressive on. We just haven’t had it yet.

Of course, it’s possible that when we do end up having it, the spreads will be too big or there’ll be some reason I don’t trust being aggressive on it. You never know but I want to keep myself liquid enough that I can be aggressive if I see the opportunity.

Some of these stocks are even for me in life speed, are not marginable, which means I can only trade with my cash balance. Let’s say a $6 stock that’s not marginable, I can only take 10,000 shares of it right now which seems like a lot, but if I really wanted to be aggressive, that would be not the biggest position. That’s just kind of my game plan right now but again, that’s subject to change.

We’ll see what next week offers. Hopefully, we’ll have some really good opportunities, I can continue to be a little bit on the more aggressive side and turn this into a really strong month. All right, so that’s about it for today. I hope you guys enjoy watching this recap, those of you that watch it in YouTube, feel free to leave comments. I’ll go back and answer them. Again, those of you on Facebook, thanks for login in. We’ll be back at it first thing Monday morning, all right. Hope you guys all have an awesome weekend, get a little bit of rest, and we’ll see you first thing on Monday. Okay, thanks, guys.

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