Warrior Trading Blog

No Red October! 22nd Green Day +$1,421.42

No Red

No Red October! 22nd Green Day +$1,421.42

Alright everyone, so let’s go over our mid-day market recap, and the stocks that I trade today. I’m trying to adjust my chair. There we go, that’s a little bit better.

Okay, again, for everyone in the chat room, finishing here on the 22nd consecutive green day. Fantastic hot streak. Total gains on the month of October, just around 30 … just under 36,000 … 35,500. Total gains since my last red day, just under 40,000 dollars. 40,000 dollars in 22 days. That’s an average of about 2,000 dollars a day. Just under 2,000 a day. Not bad at all.

So, goal is definitely to continue that into November, and at a 100K challenge is going to start tomorrow on November 1st. It’ll be 10 traders all as a team trying to collectively make 100,000 dollars. That means each one of us needs to make 10,000 dollars, although some us will probably make more, and some might make less. The goal will be that every team member is able to contribute some profits towards the monthly 100,000 dollar goal.

I encourage all of you guys to set your goals for the month of November, whatever it might me, 5 thousand, 10 thousand, and really set your intention for the month. That’s what I did for October. I lost money in September. I lost 4,000 dollars, and I said this is not acceptable. I could have had a great month, but I had a couple of really big red days. In two days I lost 14,000 dollars at the very end of the month, and totally screwed up my month, and I said I need to get focused. I need to pull it together, get focused, and that’s what I did for October. I got focused and you can see the results, so I want each one of you guys to get focused, and tonight write down your trading plan for the month of November.

Your strategy that you’re going to focus on. Your max loss. Your max share size. Your time of day that you’re going to be trading. Those are a few things that you wat to focus on. Understand what your current profit-loss ratio was for the month of October, and what your current accuracy was for the month of October, and then what do you want to do for November. You probably want to improve both of those as much as you can, so set metrics of where you’d like to be at the end of November.

For me, I’m going to import all of my metrics into Trader View tomorrow, but it looks like my accuracy is about 80% on the month, which is really good. My average losers are 11 cents, and my average winners are 13 cents, so fairly close 1 to 1 ratio there. Average winners, average losers about matched up, but the accuracy was on point. I think that came down to being just really focused.

So, I’m setting the bar here, but you don’t have to be here in order to be profitable, right? You can with the 1 to 1 profit-loss ratio, anything more than 50% is technically profitable. Anyways, just set your intention and really try to stick to it, so every day for the month of November in the chat room we’ll be doing our pre-trading routine, breaking down the watch list, getting ourselves focused, and then we’ll do our post-trading wind down.

So right now every one of us … well, that has stopped trading for the day, has an opportunity to do a post-trading wind down. Kind of slow it down, look back, what did I do today? Did I make mistakes? Did I get aggressive? Was I smart? Did I do a good job? Was every trade in line with my trading plan, and if the answers are yes, then you had a good day.

Let’s go over my trades today, and I encourage you guys to do this also for yourself later this afternoon. Okay, so very first trade of the day today, CTXR. So, remember, we had a watch list this morning with … how many did we have on the watch list? We had DMPI as a possibility over 1 dollar. We had XNET on watch over 10 dollars. We had CTXR on watch over the pre-market high of 3.85, or 3.95, excuse me. And we had TEUM on watch for a possible trade, but it didn’t work out. So today, I’m up 1,400 dollars and I traded two of the stocks on my watch list. These are stocks that we knew had potential at 9:15 when I was building a watch list. The other trade I took on AMCN was off the high of the day momentum scanner.

Let’s look at the first trade, CTXR. So this was gapping up this morning with a pre-market high of 3.95. What I did as soon as I had this on my watch list, is I prepared an order to go long at 4 dollars. I put the order at 4 dollars because I figured I would give it a little bit of space. It’s five cents of slippage, and it’s right at the whole dollar. So, the bell rings, it dips down. For a second it actually opens at 81. I start punching the order and I’m getting filled at 3.90 … 3.90 and 3.98. This gave me a 3.93 average, with about 6,400 shares. It pops up to a high of 4.29, and into that squeeze, that’s 30 cents, 30 plus cents. With 6,000 shares, 3 x 6 is 1,800 bucks. So I’m taking profit as soon as I’m up 500, I’m selling a little bit. I’m up another 500, I’m selling a little bit more, and I scaled out into the move.

You can see the orders here where I tried to sell at 14. I didn’t get filled. Ended up hitting the bid. The spreads opened up a little bit on this one, which made me a little bit nervous, so I scaled out some on the ask and it then continues higher. I was even able to sell some at 4.24, which was just under high of day. That was really a pretty solid trade. It didn’t hold the level very well, as you can see on the one minute chart. It popped up, consolidated sideways, and then ended up fading back down. But right out of the gates it was good for a gap and go trade. So, good gap and go on CTXR.

Next one was XNET. XNET was on our watch list for continuation. I had a good trade on it yesterday, so I was watching this to continue the move out of the gates. Pre-market high was actually as high as 10.32, and so I had an order ready to go at 10.32. That’s the spot I was possibly watching. As soon as the bell rang, we dipped down below 10 dollars. As it came back up over 10, that’s where I jumped in.

I saw it surging up here out of the gates, the green candle, so I thought it looked good, and so I jumped in at 97 and 98. It pops up to a high of 10.13, but it didn’t hold that level. As it came back down, that’s when I ended up bailing out. I sold half, a quarter, and then sold the rest as it came back down. I think my last exit was at 10.01 right there. And then I sold the rest of CTXR, which I was still holding a small position of. Overall, not a big win on that, 942 dollars on CTXR and 311 on XNET. So 6,400 shares CTXR, and 5,000 shares on XNET.

Then the last trade was AMCN. This one hits our high a day momentum scanner, and I thought it looked decent for a move higher, so I jumped in pretty quickly on this one at 68. It ended up hitting a high of 2.80, so not the biggest move. I was long at 68 and 70. Tried to sell some at 77, 78. I didn’t get filled, and so I hit the bid at 71, and ended up with a small profit of 168 dollars.

Small trades today. These were scalp trades. Going in for the small win. The small base hit, taking it, adjusting my stop to break even, holding longer if I could, but on these ones getting stopped out. Not really big resolution on any of those. A couple of other trades that we have on watch in the chat room today. Mike had SHOP on watch, right out of the gates. He got a partial fill on this, short at 101 dollars, right out of the gates on this pop here. This faded from 101 dollars per share all the way down to a low of 94 dollars, so I niece six point drop, and then a fairly big bounce back up, which some traders were able to profit on.

We had MYL. Big drop here from 38 dollars all the way down to 35, and a nice pop back up here towards 36, so opportunities on this one on the short side, and for a bounce on the long side. WDC, another higher priced stock, this was on our watch list. It was on our scans for the first candle to go red for a short. This was at 86.17. That dropped down to a low of 87.75, so a nice drop there. Ended up bouncing back up, but this would have been a decent trade. These ones are a little outside the go-to momentum strategy, but decent opportunities nonetheless.

Hopefully all of you guys are finishing the month in pretty good shape. I want to remind everyone that becoming a successful trader, becoming a profitable trader, is not something that happens overnight. And I’m sure there are some of you here that closed the month of October red. And I know how that feels. I know how frustrating it is, because you came to the table every single day and you tried to trade. You tried to find opportunities, and at the end of the month you left with less money than you started with. You’re a trader who’s at the beginner phase, the beginner stages of trading, most likely, or maybe you’re just a trader who has had a great year and just happened to be red for October, and that happens.

But the way it happened to me in September, that’s an anomaly and that’s fine, but if you’re a trader who’s just been consistently red, month over month over month, this is what I suggest. I suggest trading in the simulator. If you’ve had two or three consecutive red months, you need to re-set. You need to kind of hit that internal circuit breaker and start fresh. And look, I’ve had bad months where I lost 20,000 or 30,000 dollars. I know how that feels. I’ve been there. And I was able to get myself out of it, and the way I did it was … and I actually didn’t do a lot of paper trading, but I did some paper trading.

And that’s what I really recommend, so for everyone that’s in our Warrior Pro Course, as part of that course, we put you on a 90 day trading plan. That trading plan outlines how many times a day you’re supposed to trade, the type of stocks you’re supposed to trade, the strategy, the entry indicators, the exit indicators. It outlines everything for you. All you have to do is follow the plan. Of course, you have to execute. You’ve got to be able to take the entries, take the exits, all that stuff.

Learning to trade is sort of a … we talked about the phases of learning, the phases of becoming a trader. Phase One is strategy development, trying to figure out your strategy. Phase Two is live trading a proven strategy, and live trading a proven strategy is really quite easy, because you just sit down and you do the same thing day after day after day. The hardest part is maintaining the discipline, not to deviate from that strategy. That’s the hardest part, but once you get good at being disciplined and following the rules, trading is easy.

So the hard part is really that first phase of strategy development, and within strategy development, within learning to trade, there’s a couple of approaches. One approach is you go out on your own and you just try to do it, right. You just try to figure out how do I trade. You follow some people on YouTube, Facebook, Twitter, whatever. You follow. You take a couple trades here and there that other people take, and you hope you figure it out. I can tell you from experience that that approach can take years, because what you see on the surface of someone sharing is not the architecture of the strategy. It’s not all of the fine details that allow them to be so successful.

Then the second option is that you get yourself involved in a training program, obviously, like what we have at Warrior Trading. The first three months you’re in the Warrior Pro Course, and during those three months we expect you to be trading in the simulator. We expect you to be practicing, because it’s one thing just to watch the videos, and you’re gaining information. You’re learning. You can read my book on how to day trade, and you’re gaining information. That’s information. It’s not a skill. Just because I say this is how you sky dive doesn’t mean you have the skill to be able to sky dive. You gain skill by practicing, so that’s what the simulator is for.

During those 90 days, you practice the strategies that we teach you, and at the end of those 90 days, we want to see that you’re trading relatively profitably in the simulator. Justin, for example, he’s one of our students. I have an interview with him on YouTube. He’s in the inner circle right now, but when he finished the Warrior Pro at the end of his three months, he started trading live and in the first month he made 3,600 bucks. That’s a great start. That’s really good, and I think this month of October has been his best month to date, so he’s continuing to get better, which is fantastic. At the end of that three months learning curve, those three months of studying and trading the simulator, that’s when we hope that you’ll be able to graduate to real money.

Between the three month mark and the six month mark, that’s kind of where some students are going to be graduating out of the simulator. Some are going to need a little more repetition, a little more practice, and that’s okay. That may continue up to month four, five or even six, but certainly by month six, we’d really like to see you trading with real money. When we were at our inner circle seminar in Las Vegas, and then again in New York, Jason and Shanna, both are about six, seven months into the course right now. Both of them are trading with real money and building up their consistency. Both of them are going to be trading with me in the November 100K challenge, and you’ll be able to see their progress. They are still in their first year. They’re still, in a lot of ways, beginner traders but they’re getting better.

You sort of have to think of the learning curve in that sense. Some might say, I don’t want to wait three months or four months before I can start making money. I want to start making money tomorrow. Well, that’s getting rich quick, and that’s not achievable. If you set that as your expectation, you’re setting yourself up for disappointment, and you’re setting yourself up for failure. If you instead say this is something that I’m going to practice for three months, and I’m going to study, just like I study for a certification program in how to be a life guard, or how to weld, or how to do anything. Whatever, you’ve got this three month learning phase, and then at month three to month six you can continue attending our mentor sessions, continue practicing in the simulator, continue trading in the chat room, and start to ask yourself, am I ready to transition to trading with real money?

By the end of month six, again, we think at that point most of you will be trading with real money, and continuing to attend the mentor sessions, talk to us about struggles that you’re having, and all that type of stuff. We’re going to have our mentor session today at 3 PM Eastern, so this is sort of the phase. The traders that are usually the most successful are the ones who have been doing this for 8, 9, 12 months, and when you’ve been doing it for more than a year, most students at that point are going to be profitable. You want to make sure you prepare yourself for that learning curve, number one. And number two, that you give yourself the opportunity to really focus on studying, rather than trying to jump into the market before you’re ready.

I remind you guys that at the beginning of the Warrior Pro Course, the beginning of a lot of our classes. Don’t trade with real money if you’re not currently profitable. Trade in the simulator, and I know not all of you guys take that to heart. You instead trade with real money, and then lose money and then you’re frustrated. And I don’t want to see that happen. I want this to be the community where traders are 90% profitable, where you guys are all making money because you’re doing things differently from what everyone else is doing.

It does start really with getting education, and making sure you’re training, but … anyways, I just wanted to reiterate that because we’re at the end of October. We’re starting a new month, so you’ve got this opportunity to kind of have a clean slate. Get the new month off to a good start, even if you say for the month of November I’m going to be in the simulator. That’s fine. That’s totally okay. Just make sure you set those intentions for the month.

Okay, so that’s it for me today. I hope you guys all have a great afternoon, and enjoy Halloween and I will see you all first thing tomorrow morning, November 1st. We’ll start the 100K challenge. It’s going to be me, 10 traders total. Me and nine other traders to see how quickly as a team we can make 100,000 dollars. Hopefully, we’ll be able to do it by the end of November. Alright, so I’ll see you all first thing tomorrow 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 any time I go live, or upload new videos. Until then, happy surfing.