Warrior Trading Blog

Momentum is Hot! +$12,500 | Ross’ Trade Recap

What’s up, everyone? All right, so here we are, Monday morning. Guess what? I’m up to $12,500. This is getting ridiculous. It’s been an amazing month. This is how hot streaks always are. This is how the month of January was in 2018. It was just like day after day, big green day back, to back, to back, to back. That’s how you make $100 thousand in one month.

Well, I’m up $58 thousand already and we’ve got 12 days left. $100 thousand is the goal. $41 thousand, $42 thousand between me and that goal. And you know what’s also kind of interesting, that goal is lining right up with the finish line for the $583 to a million dollar challenge. I’m at $950 thousand. 95% of the way. I can see the finish line only $50 thousand away. So if I’m able to have a $50 thousand profit in the next couple of weeks, that’ll put me over a 100K on the month. I’ll finish up the challenge and this will be an amazing month.

We’ll see. I don’t know if it’ll happen. It might not. Because things could just as easily slow down. I mean, it’s crazy how it’s like the light switch turns off and the market can slow down so quickly. But as long as it’s hot, I’m going to keep stepping up to the plate and keep being aggressive, try to capitalize on it, make as much as I can, try to cross the finish line of this challenge. And then if things slow down in March or April, no big deal. All right, so that’s the game plan. Enjoy the recap. As usual, any questions, any comments, leave them below, give me a shout out of what you traded today and any questions you have. I’ll answer them later today. All right, see you guys tomorrow.

Hey, everyone. All right, so we’re going to do our midday market recap here, go over the trades from this morning. So, today’s going to be another green day. I’m going to finish up, uh, over $12,500 between my IRA account, right here, $11,355, and my new trading account right here, which is up $1,181. So today’s a day that started fairly uneventfully. We didn’t have anything on the high of day momentum scanners that I was really, really … Or sorry, on the gap scanners that I was really, really crazy about.

If I do the timeframe here for 9:00 … I’ll just do 9:25 AM, just before the bell rang, you’ll see that our only gappers here for the most part were higher price, higher float stocks. So CLDX was on the scan, it’s a reverse split, the float’s a little higher. I didn’t end up trading it. No trades, no trades, too cheap. AVCO, I did end up trading, we’ll cover that one in a second. Not interested in this one. It’s just a little too cheap. I don’t usually do well on stocks below $1.50. Occasionally I’ll trade them when they’re moving really quickly, but that’s usually not my cup of tea.

Too cheap, too cheap, too cheap, too cheap. Yes, I traded it, although I was skeptical pre-market with the volume only at 60 shares, but the volume came in and it did give us a great opportunity. You can see it’s up 56% right now. And then the rest of these were all no go. So, I started the day looking really just to ABCO for a gap and go trade. The pre-market high was 648 and it had a little pre-market pivot here at 618. Now, just before that pivot, I was watching this level here, right around 611, but that broke here. And so then they moved this trendline up to 618.

The bell rang and as you can see it really just sold off. But I took my first trade of the day was long at just 598 for the break over 6 thinking we would get an immediate retest of 610 and then maybe 618. So you can see here, my very first trade was long at 595, 97 to 98, 9 thousand shares. As soon as we didn’t break 6 or we hit 602 and wasn’t a solid break, I sold half at 99 the rest at 98, and then I added more at 81 and sold that as it came back up to 99. So this was … And that was a red to green move attempt on the second one. So in total, I only made 400 bucks. Really didn’t get good follow through. It didn’t get the move I wanted and I followed the philosophy of breakout or bail out. It didn’t work. And so I got right back out and I made a small profit on it. So that was AVCO.

Now at that point I was sort of like, “All right, well, I’m not sure that there’s going to be anything else. I’ll just sit tight.” We have OTLX hit the scanner, too cheap. AGRX hits the scanner, also too cheap. So I’m just kind of watching, watching, watching, and then boom, SPI hits right here. So when SPI hits, the first thing I do is I type in the symbol. While that’s loading, I come down here and I type in the symbol again and then I look at the chart. I remember, yes, I traded this last week on Wednesday. The target was 381. It didn’t hit that level. It’s coming up here again this morning I’m going to jump in.

So I bought it at 355, right at sort of this level, 355, and I added as it started going up. Now I’ll say that I was aggressive in my positioning on this and it’s because this month has been amazing. $18 thousand Friday the 1st. $64 hundred on Monday, the 4th. $19,200 on Tuesday the 5th. $25 hundred on Friday. $12 thousand today. I mean, it’s green, big, big green days. Coming into the morning I was already up almost $50 thousand on the month. So if there was ever a time to be aggressive when you see good quality setups, this would be the time. And so I’m stepping up to the plate with bigger share size, trying to really capitalize on this hot streak, make as much as I can, knowing that inevitably, the hot streak will end at some point and we’ll be into a period of kind of slow and choppy markets and all these profits from January and February, will have to tide me over. So the more I can make during the hot streak, the better.

So I saw it hitting the scanners, knew it was a former runner. Here was the day back in January where it went from $1.15 to 380, curled back up on the daily and boom, squeezing up today, gapping up 20% and continuing higher. So I jump in it. It surprises me that when it breaks 380, it immediately popped up to $4 and I went ahead and added another 3 thousand shares at 409. So at that point I had 12 thousand shares with an average price of 369. And I sold half at 439 and 443. So just like that, I’m up almost 80 cents per share. I’m up $7, $8 thousand. I just sell a little bit more at 22 and then I decide to add back a couple minutes later at 20, 29, and 32 to scalp the move back up to the half dollar.

So right in that five minute candle that’s bright green, the one minute gave us a little micro pullback. So that was right in here. We pulled back and then surged back up. So I bought the dip and sold into the rip as it popped back up to 34. And that added a couple thousand dollars more profit. I then added again at 42, selling into the highest at 56 and 57. I added again at 48 and selling at 53 and 54. I added again at 98, added again at 415 and 417. That was in this area here. Right here we had this sort of flat top at 16. And I sold into this break here up to 48. We got that quick move up to 48. I ended up adding a little bit more at 42 and selling at 46 at the high.

So I aggressively was trading the stock, getting in, getting out, capturing a profit, lots of volatility. That’s exactly what we look for as active traders. So really happy to see that. We’ve got 7.5 million shares of volume, still no resistance until the 200 moving average. But without a catalyst, it’s a pure technical breakout. But clearly this morning with the gap up, there was some momentum behind it and I was able to ride that and do pretty well on it. So $11,355 in my IRA tax free. That’s awesome. So tomorrow it’s going to be at $85 thousand. As this account grows, one of the things I’ve been thinking about is what happens when this account gets up to 150 thousand? 175? 200 thousand? 250? 300? Because I don’t use that much buying power Even today, 10 thousand shares of SPI is only $42 thousand of buying power. I’m not even using all the buying power that I have right now.

So as the account grows, at what point is it kind of not smart to leave the money in there? If I can make, let’s say 50 thousand a month with 100 thousand, then if I have 150 thousand in there, that extra 50 grand that’s sitting in the account is kind of useless. It would actually be better if I put that 50 grand into like an ETF, like the SPY or something like that. However, if I did it in this account, then every time I log in in the morning, I’m going to see my open P and L on my longterm positions. And is that going to throw off my trading because I see, “Oh, I’m down on some long term stuff?” And I’m a concerned that that’s going to mentally affect my trading.

So when I’m thinking that I’ll do is as certain level, when I get over I don’t know what the amount will be, that this will be the account that I really actively aggressively trade in, and the profits I’ll take out and put into a different IRA that’s for longterm investments and that I don’t look at on a daily basis. That way, I don’t get distracted by, it doesn’t throw me off and I’m able to just kind of capitalize for longterm because the reality is I can’t draw out the money from this retirement account until I’m 60 years old, 59 and a half. So, I’m 34, so I’ve got quite a good while that this has to just kind of sit and work.

And so over the next 15, 16, 20 years, I might as well put it in a place that it can grow because just putting that money into … Leaving like let’s say a million dollars in this account when I only really need 100 thousand to day trade would be really kind of silly. So anyways, I’ve been starting to think about that. Now, he surprise here today is that I have a new account that I’ve opened. This is and account at Centerpoint Securities. So the thing with Centerpoint is that they cater to short sellers. And I’ve never … I mean, I’ve known about this broker and I’ve been interested in them for awhile, but the minimum account balance is $50 thousand. So I was like, “Well that’s kind of high.”

And I mostly see the marks of the long side. However, there have been times in the last few years where there had been clear opportunities to the short side and I just haven’t been able to trade them. So that was kind of a thing of, “You know what? I know as an active trader, with that 50 thousand, I’ll make more, even if I can only trade it a couple times a month.” I’ll make more doing that than putting it probably anywhere else. So I was like, “You know what? I’m just going to do it”.

So I set up this account, this is going to be my first trade in it. And this was to the short side on WORX. So WORX is one that we had on watch, W-O-R-X, for a daily set up the first daily candle to make a new high, but it kind of just takes off out of nowhere. It just goes from 5 all the way up to 550. It gets halted. It resumes significantly higher. Really nice to see that big resumption here, resuming around 629. So, I mean, that’s a home run if you were in this at 530, 540, 550. Resumes at … Oh, the open was 606. But in any case, really solid there. It squeezes up, it pulls back and I’m watching this one minute pullback and I’m thinking, “You know what? I just don’t know if I trust it. It’s below the 200. It sold off more than 50% of the move.”

The 50% retracement is what I like to kind of see stocks bounce off of, if they’re going to retest the highs. So I was like, “You know, it’s an opportunity but I don’t know. And the volume is so light, I think I’m better off just focusing on this one to the short side.” So I type it into Centerpoint and I see that it’s not easy to borrow. So I go into the locate monitor here and what you do is you type in the quantity you want, which I said was 5 thousand shares, or you type in the symbol, then you press send. And it comes back and it tells you the price.

So this is basically a penny and a half per share to short the stock. Now SPI was three and a half pennies per share to short the stock. So that’s like 160 bucks or 170 bucks on 5 thousand shares. WORX was three cents per share, so that costs me $150. $150 just to reserve those 5 thousand shares before I even shorted it, just to reserve them. So before you even take the trade, I’m already down 150 bucks. Now I was watching it in this area. I tried to short it in the 20s and for some reason my orders were getting rejected. I don’t really know what was going on here. But anyways, I was getting an error on my hot key. I think I fixed it and ended up getting short at 608 and 607, 5 thousand shares. So not exactly where I wanted to get in, but that’s okay.

It broke here from 6 and drops down to 570. And so right in there and made $11 hundred. And that was it. Just a small little trade on that scalp. And again, like I said, I may not see opportunities in this account every single day, but just now I have more options at my fingertips. And some of you guys who trade with some of the brokers that are international, some of you guys have shares available to borrow anyways that I just didn’t have at Lightspeed, so that’s nice because I’d been feeling like I was missing out on some of these opportunities. And so now I’ve got this extra tool added to my tool belt.

So yeah, 11 hundred here, 11,300 here. So $12,500 of profit in about one hour of trading. Another really solid day. Puts me up 58 thousand on the month. That means I’ve got about $40 thousand between me and the $100 thousand level. $100 thousand is the goal for February. We’ve got 12 days left. And if I can get to 100, my next goal will be 120, because my best month of all time was 117 thousand, and I would love to break that record. So I am being aggressive right now. The way I trade these hot streaks is to be aggressive until I have my first big rejection.

Even if I don’t lose on it, one really, really bad rejection and I’m going to say, “Okay, time to ease up, slow down, take a breath and let’s just evaluate the market.” I want to be aggressive, but I can’t do it in a weak market. The market has to keep being strong in order for me to continue to be aggressive. So, I’m sitting now at about $950 thousand in the account that I started a little over two years ago with less than 600 bucks. So it’s been an incredible run here, an incredible journey. About $50 thousand, I’m 95% of the way to the million dollar goal, and that’s kind of lining up right around this hot month of February with my $100 thousand goal for February.

So if I have a record breaking month and it’s the month that I cross over the million dollar mark, that’ll be pretty awesome. It’s also the month of my birthday, which is cool. So I just turned 34 and yeah, this million dollar challenge has been a two year journey. I mean it’s … Some people have said, “Ross, are you going to start a new million dollar challenge?” And this has been such a consuming thing in my mind, this challenge, and it’s been so public, doing it in front of everyone, not wanting to fail, not wanting it to take five years, wanting to hit my goals on it. It would be like finishing a two year master’s degree and saying, “All right, I just finished. Let’s start a new one.” I don’t want to do that.

So what I’m going to do is I’m going to keep trading in the account. I’ll keep growing the account and I’ll probably do small challenges. I was thinking about like Tom Brady and he just won the Super Bowl again and now it’s like does he go in for one more season? Now, a season is a season. It’s not two years, it’s not 24, 26 months. It’s a season. So it’s a period of time that’s a little more finite than this challenge that I’ve been doing. So I think what I’d be more inclined to do would be shorter term challenges that are a little easier to digest. Do a challenge on one of these months coming up here in the late spring, early summer, see what I can do in one month, something like that.

Kind of nice, little, bite-sized challenges that are fun and aren’t too, too stressful. And I think that’ll be kind of the plan. So anyways, that’s about it for me here. Solid start to the week, another green day. I can feel good about that. We’ll be back at first thing tomorrow morning. I’m going to try to do it again. Another big green day, another $10, $11, $12 thousand. We’re in a market where it’s either hot or it’s not. So if it’s hot I’ll be aggressive. If it’s not, I might just take $3, $4 hundred, a thousand dollars or whatever and be done.

So anyways, that’s it for me. I’ll see you guys all first thing tomorrow morning. Those you guys who are going to be in the workshop tonight, I’m looking forward to seeing you 7:00 PM Eastern. I’ll make sure the link is on the description of the YouTube video and I’ll see you guys this evening. All right, thanks everyone. See you guys later. If you’re still watching, you must have really enjoyed that video. So why not subscribe and get email alerts anytime I upload new content? Remember when you subscribe, you become a member of the Warrior Trading family.