Warrior Trading Blog

Nice Green Day To End The Week +$4K! | Ross’ Trade Recap

Ross_8.16

Hey everyone. All right, so here we are finishing the week with a great day, up almost $40,000. I traded in two accounts today, my main account and my retirement account, which is good. Making progress on both sides. And I’m just happy to finish the week here, Thursday $2,000, Friday, four grand. So $6,000 in the last two days is a terrific finish to the week. So a green week. That’s what I wanted. That’s what I needed. And we had a really great opportunity today.

So we’ll break it down. In the recap we’ll talk about the entries, the exits, how I found it and how I knew pre-market when it was up only about 100% that this stock had the potential to make a big move. All right, so and remember tomorrow, 12 noon Eastern, I’m going to go live on Facebook and YouTube. We’re all going to be talking about whether or not we’re going to be seeing a recession. And, from my standpoint, some questions about gold trades, ETFs, like the VIX, trading SPY calls and puts, and how to capitalize on the crazy volatility that we’ve been seeing in the last few weeks of the of the markets. So stay tuned for that and I’ll see you guys all hopefully tomorrow at noon and the rest of you Monday morning.

All right, every once. So we’re going to do our midday market recap here for today. Not a bad day. $2,311. Well, that’s in my main account and I made another $1,643 in my retirement account. So $4,000 a day. Well, just about that keeps the job away and it’s all thanks to PSTV. It’s the only stock I traded. So this one, we had it on our watch list this morning. This is going to be a good example to add to the classes. So let me grab this screenshot and let me ask you guys, oh, hold on, let me log into the chat room on this computer and then I can screen share.

Let’s see. New chat login. That’s going to kick me, no, that’s fine. I can do that. That’s not a problem. All right, so I’m going to log myself in here on my other computer. So what I want you guys to do is those of you who are in the chat room, do me a favor and type how much you made on PTSV today. Let’s see, I’m going to try to… got to refresh this, and then I’ll put it up on screen share for those of you guys who are small cap. I’m already in the room. What? Why is this doing this to me? Hang on one second. I got to log into the dashboard. What’s that now? 12:34?

All right, so small cap. Let me go in here around the… the other way to get in. All right. So there we go. So let me call out some of these. All right, so I know some of you guys posted your P&L a little earlier and there’s only 960 of you guys still in the room. There’s a nice $10,000 one from Chris, $180 from Jason. Good work. Let’s see. Here’s another one from Mike, $115. All right. Not bad, not bad. Making some progress there. And let’s see some bigger numbers. $404 for Gerald. Looking good. Here we go. All right, EB, $1,000. Nathan, $340. Naseem, $5,000. Matt, $536. $460, $309, $464, $800, $900, $900, $900, $200, $200, $3,500. $8,000, Vlad. Nice work. Couple of bigger trades there. $1,000. You guys are doing well. So Crystal, you’re in the red. All right, well, we got to get back to the drawing board.

Unless you were short this stock, you know there’s no reason to be red because this is such a good quality set up, but everyone’s at different places in their education and I know I’ve botched more than my fair share of A quality setups before. $6,700, $5,800. nice work guys. So really good. That’s what I like to see. All right, so those of you guys on YouTube and Facebook, get inspired and get excited.

A lot of people have been talking this week. Recession. Market crashes a thousand points. We had a thousand point swing here from the top, on Wednesday or Tuesday, to the drop on Wednesday. The bounce here, another drop Thursday, bouncing back up a little on Friday. So a thousand point swing in the market. People definitely talking a lot about buying gold, talking about TVIX, UVXY, trading the VIX, SPY calls, SPY put. Well, mostly SPY puts, but some people may be trading SPY calls off the [200 00:05:27].

So we’re going to talk about that a little bit in tomorrow’s Facebook and YouTube Live that I’m going to host, but one of the things that I will say is that despite this week being a week of recession fears and this and that, I’m going to be finishing in the green. $4,000 today, $2,000 yesterday. Yes, I did lose $2,900 on Wednesday, but made two grand on Monday and about $400 on Tuesday. So I’m going to walk away green on the week, which is terrific and overall feeling a little bit better about the momentum. And PSTV was straight off the watchlist. So let’s break it down.

This morning, let’s go back to timeframe, historical data, 9:15 AM. So at 9:15 AM this morning, this stock was at $8.30 and I knew that it was going to be worth trading for a couple of reasons. This met all of my criteria for being a stock worth trading. Those of you guys who have read my book, those of you guys who are in the starter class and the pro class, or those of you guys who have watched any of my workshops or webinars, you know that I’ve got a five point criteria for identifying a stock with home run potential.

First, I evaluate the price, then I look at the gap, then I look at the flow, then I look at the volume, and then I look at the news catalyst. And what I’m essentially doing is I’m evaluating whether or not this stock is going to have an imbalance between supply and demand, right? So when we’ve got a very low amount of supply, which this stock has, a float of less than a million shares, realistically it doesn’t take a whole lot of demand to create the imbalance. On this one, that has resulted in the move right now up to 230%, but I believe the high was right around 300%, which is pretty incredible.

So this met my criteria for being a stock worth trading. So then, “Ross, why didn’t you just buy at $8, 100,000 shares, and hold the whole thing up here till $14 or $15? And you would’ve made $300,000 or $400,000.” Well, maybe $600,000, if I really did it well.

Okay. So there’s a couple things here. Number one, pre market we only had 700,000 shares of volume and we had fairly big spreads. So that would’ve prohibited me from buying 100,000 shares, without a doubt. I would’ve had a lot of slippage. Even buying 10,000 or 15,000 shares I would have had maybe $.20 of slippage, maybe $.30. So slippage is one factor. There’s a limit. Because the supply level is so low, it is a little bit more difficult to get in and get out. We had this pre-market consolidation here and my first trade on this was, let’s see. We had this move here up to that level. So this was the spot that I was watching right here, $8.90. All right, so $8.90 was the pre-market pivot and you can see we had this pullback, this move up, and then this pullback.

Now, what I noticed was that the stock was trending up, right? Had a low here and a low here, but not as low. So it’s trending up. So we had this little kind of period of consolidation pre-market. The bell rings and we break that level. So I buy for the scalp there and it moves up to $9.64, then pulls back and pops up to a high of $9.90. so right in here we have the first trade, which was decent but not a total home run. It then comes back up right here and gives another opportunity for a little scalp over $9.50. A scalp is a small trade, a small win. And that was from $9.50 up to $10.70. It then drops and does this false breakout right here. So, when it did this false breakout, it hit $10.21 and then dropped right here. I sort of thought this five minute pattern is broken because it’s come up, it’s come down, nice. And then when it failed right here, that for me was kind of a red flag, and I was like, “I don’t know if I like the look of it.”

Now, for those that are wondering “Where are these levels coming from?” They’re actually coming from the daily chart. So on the daily chart, right here, I looked over to the left to see where we would see resistance, and this is based on gaps in windows that’s part of chapters four and five the Warrior Pro Course. So we had, right here, $10.72. That was the high of this level. We had this high right here. We had this one right here. We had this one right here, right here, a small one right there that it didn’t choose to mark. And then we had right here and right here. So I knew that once we broke over a $12.98 this level, we had lots of room up to $15.50. So we’ll switch back to the five minute timeframe, and you’ll see we’ve got $12.98 and then $15.50. So as we got into these levels where it started to open up, the momentum really accelerated.

Now, on this break here of $10.20 I actually got back in at, I believe it was $9.75, maybe $9.68 for the break, anticipating a break of $10. But I didn’t know if it would work really well. We came up to $10, and that was right here. Well, first it came to $9.75 and then dropped, then it came up to $10 and dropped all the way back down to $9.30. Kind of a false breakout. And then it came up to $10 and dropped down to $9.66, and then it ripped up and got halted at $10.54. So it did sort of a false start there. And, for me, I’m at a place where, typically, at this point in the month, I’ve already either gotten halfway to my profit target on the month, which is $40,000, so I’m up $20,000, or I’ve already hit my profit target on the month, and anything extra is icing on the cake.

But that’s not the case this month. So because this month I’m a little behind my target, I’m having to be a lot more disciplined. While the other kids are out partying, I got to still study, I’ve got to work hard, I’ve got to just be really disciplined about taking my profit when I have it because I’m not really in the driver’s seat yet. And sometimes that happens and it’s not totally unusual, but because I’m in that position, and because it did this sort of false start here and false start here, as soon as it broke, I wanted to add, but I didn’t want to add full size. And so because I didn’t want to add full size, I had to go in here, instead of taking shift one and pressing for 3,000 shares.

So if I go to ZVZZT, this is a NASDAQ test stock, shift one, I’m in this with 3,000 shares just like that. Okay? Well, I didn’t want to take 3,000 shares of this stock because I didn’t want to lose potentially $1,500. And so I had to come down here and, real quick, type in 1,000 shares, and then type in where I wanted to place the order. And by the time I did that and had my hand ready for the buy button, it broke without me. And so then I was like, “Oh, shoot, if broke without me.” So then I was like “Shift exit. I’m going to take some profit.” So I’m in and now sell half, and sell half, and just like that I’m taking some profit. And then it goes into the halt and I’m like, “All right, well, I guess I’ll hold the rest through the halt,” but I really kind of didn’t trade this to the max. I could have done so much better.

It comes out of the halt and squeezes from $10.50 all the way up to $11.70, over a dollar per share, and then it drops down to $10.60. It looks like it’s about to halt going down and then it bounces back up to $11.70. It then pulls back, and then I got back in right here for the break of $12. So now I’m back in, and squeezing up and it gets halted up here at $12.83. It then resumes, it flashes down and then rips back up and I added again at $12.23 for the move here higher. Let’s see. When it hit $15.35, by that point I was all out. I had sold the last of my position on this candle here.

So I booked some profit on it and did okay, and I feel good about that. Right now, as it’s consolidating, it’s sort of under this level here of $13.99. You can see $14.34 is the halt level. It’s a little tough right now because it came up and double topped at this level, and that’s the 200 moving average, that purple line. So we are at daily resistance and we are seeing declining volume. It’s got almost eight million shares of volume and my guess is that there are going to be some traders with the fear of missing out on this, FOMO, who may go ahead and take trades over $14, and there may be some short sellers who are holding this and are kind of not in a great position, who are going to end up, if it continues going higher, getting squeezed out, because what it is doing is holding the moving average and this does look good for a break of $14, but it looks to me more like something that’s going to be grinding because now we’ve got three green candles in a row, but they’re all kind of small. Small green candles. It’s not making huge moves like it was before.

So if it breaks $15.50, then we’ve got room up to $17, and that’s looking at the double top here at $17. And then it starts to look good for a move up towards $20. And that may happen. This has a very low float, but I’d say it’s probably going to happen without me because I need to be disciplined about taking my money off the table and walking away. So I’m going to take my profit. $6,000 in the last two days. Again, as someone who’s been doing this for a really long time, I’ll say that I know I can still get better. There’s still room for improvement. I wish I had made more on PSTV. I wish I’d been a little more aggressive in certain places, but you know what? I was a little aggressive on Wednesday and I was a little aggressive in the wrong places and it put me red on the day. Last Friday I went from being a green to being red on the day by taking a trade at, I don’t know, lunchtime. So I’m going to be grateful for the profit that I have. And here you go. Now this is coming back down. You can see it’s about to get halted going down. So right there is the halt going down, so this is not what you really want to see from momentum to the long side.

So anyways, that’s that just as well. That’ll stop me from having FOMO on it and I’ll just be happy to finish the day green, finish the week green, and be starting to move back in the right direction. So we still have two full weeks left of August. All next week, all the week after, and then we’ll have Labor Day first week of September, a little bit of a short week of trading. But right now, we’ve still got a full two weeks left. So if I can lock down, $10,000 next week and $10,000 the week after, I’m going finish this month in great shape.

So that’s my goal. Generally $10,000 a week, and some weeks I hit it and some weeks I don’t, making $6,000 in the last two days. These don’t feel like home run days. But boy, they get you to that $10,000 weekly goal pretty quick. So you got to be grateful for the profits. And for some of you who are trading 10% of my share size and your goal is not $10,000 a week, it’s $1,000, you’re $200 a day. It adds up. So be grateful when you make $175, live to trade another day. The next day come back, make $225. You might not hit exactly the number every single day, but as long as you are finishing green, you’re doing something that nine out of 10 traders struggle to figure out how to do consistently.

And this strategy that I’ve been trading, and just to kind of put it in context, not to go on a super long tangent, but I’ll pull up my trader view stats here and we can kind of look at big picture stuff. I know people get kind of, it’s easy to get bent out of shape when you have a tough week of trading or you have a bad month of trading, and I’ve had my share of both. August and September have been tough months for me in the past. If we go here and look at liquidity, it’s a win loss expectation, this is, again, the big picture.

Some months are going to be a little slow, but if you’re doing this as a career, you want to be doing this for the next five years, the next 10 years, you want to be trading a strategy that is consistently profitable. And a lot of people will say, “Ross, what happens when we go into a recession?” And we’ll talk about it more tomorrow, but let’s just look at the S&P 500 over the last year. You know what I mean? This has been the last year. The markets, yes we are at all time highs, but the market dropped more than 20%, bounced back more than 20%. It’s been very volatile. We’ve had some big red days and we’ve had to trade through them. And despite that, I’ve just kept grinding up. So that’s part of being a trader, is making sure that you’ve got strategy that’s sustainable, that you can trade through different market conditions, and just being consistent.

So anyways, that’s it for me. I will see you guys tomorrow, lunchtime, 12 noon Eastern on Facebook and YouTube Live, and come with your questions and bring your thumbs up, send your shares, and I’m going to be asking you for them tomorrow. All right, so I’ll see you guys Saturday, noon time, for a special Facebook, YouTube Live.

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