Warrior Trading Blog

No Trade Recap +/-$0 | Ross’ Trade Recap

blog_ross_recap_08_20

What’s up everyone? All right, this is a very rare day, today I took no trades. Looking back on my calendar I don’t know if I’ve had a day this year where I took no trades.

 

I’m not seeing one, I know this has happened before, but I don’t know if it’s even happened this year. Maybe before was like some time last year, so it’s very rare.

The reason it’s so rare for me to have a day where I take no trades is because for my strategy I look for even just 15 to 25 cent moves. If I can see a stock that I think has a good chance of moving 15 to 20 cents I’ll take the trade. Now for someone like Mike, he’s got the bar set a little bit higher, he’s probably not going to take a trade unless he thinks something can move 50 to 75 cents or even a dollar per share. Probably a dollar per share is like his minimum. For him it’s pretty common that he’ll have a day where he doesn’t see anything that meets that criteria, no trades. For predicting a stock moving 15 to 20 cents, we’re going to see almost every single day something that fits the bill, but today there was nothing.

Our leading gapper, SSC gapping up 100%. Gaps up, sells off, I have no shares available to short it so I can’t short it, I just sit from the sidelines. That was the only stock on the watch list this morning that looked decent. Nothing hit the high day momentum scan or started to take off, so you know what, sometimes the best trade is no trade at all. Being all cash is a position, it’s a position of power, so I can take trades first thing tomorrow morning if is see something that looks good, but I didn’t get myself into a bad trade and lose money. That’s really, really important here for the month of August that I just keep grinding on small wins and if I don’t see anything that looks good, I sit on the sidelines. So, good job, I give myself a pat on the back for that because ordinarily I probably would’ve taken the scalp on something and probably would have lost money. No trade is better than being red that’s for sure.

So anyways, I’ll breakdown everything I was looking at this morning, the watch list and how these stocks traded in our midday market recap even though for me there’s no trades. Hope you guys enjoy, any questions, any comments leave them below, I’ll come back through and answer them this afternoon. All right, enjoy.

All right everyone, we’re going to go over the trades here from this morning. This is a little bit of an unusual day because in fact the trades from this morning are zero trades. Today is possibly the first day of the year I have not taken a single trade. What I’ll do is I’ll go over the gap scan or kind of what I was looking at this morning and why I ended up not taking any trades.

This morning we had a gap scan that was a little on the thin side. I’m going to drag this over here, for those of you guys who are new to the class the process every single day is the same. I look at the scanners and let’s see 9:00 AM, there we go. I look for the stocks gapping up the most in the entire market, these are stocks that are showing real strength in the premarket trading session. We’ll typically have high relative volume and a pretty decent amount of volatility. This is what I was kind of watching this morning, SSC gaping up 100%, which is a huge gap, however, it already had a million shares of volume premarket and the float was 43 million shares, so a little bit of a higher float.

Now, I wasn’t against possibly trading it over this premarket trigger here, this premarket pivot of 443 right here, but the bell rang, it didn’t break that level and so no trades. Again, one of the things I’ve said a million times in the classes and I’ll say it again here, sometimes the best trade is no trade at all. If you can’t manage your risk, if you don’t see the reward potential, don’t take the risk, don’t take the trade. On this one I was watching for possible red degree moves, but it just didn’t happen and its been weak all day.

Finally, let’s see, right here we broke over the 20 moving average on the one minute chart. You can see that was a significant break. Some traders may have taken a scalp on that and that would have been valid in at 310, out and then move up to 330. However, for me it just doesn’t really fit into my risk profile to take my very first trade on a stock at 10:30 in the morning. The fact that it’s 10:30 and I haven’t traded yet is a great indicator that it is going to be a choppy day and I just should leave it alone.

Why the stock sold off despite this big headline you know is one of the mysteries of the market. You have a stock that comes out with this huge headline, it sounds great on the surface and then the bell rings and it just sells off. So I really don’t know, it’s I’m sure disappointing to the company. They come out with this great news, which for small cap stocks is fairly rare, and it sells off. It is what it is, but I was watching this possibly to the short side on the spare flag, but as is typical no shares available to borrow the stock, so no trades. This was 100% on margin restriction, we need 100% cash to take the trade, so again that’s one of those things that you have to be aware of, but in this case it didn’t really matter. That was SSC off the watch list, no trades. The 43 million share float did have me a little iffy, but I just left it alone.

All right, so that was that. GLG, this one 85 cents too cheap. CPBO too expensive. BBOX at $1.90, I was watching and I was considering, but really I just didn’t have a whole lot of interest in it, oops, BBOX, here it is. It was selling off premarket so it was already stair stepping down and then down, and then up and then down. I know Jill grabbed a trade on this one right around $1.95 here on this kind of one minute opening range and then sold on the move up to $2.00, but for me I just didn’t really see that I would be able to make enough on it. So I left that one alone. All right, then DXR only 150 shares premarket, this one not a lot of premarket volume, float’s too high. UUU, this one I didn’t have a lot of interest in and the bell rang, it opened lower, so nothing there.

Really, you know, that was it. There was just nothing that looked that good, so today was a day where the gap scanner wasn’t that interesting. That’s not totally uncommon, right? That’ll happen maybe once a week that we have a really weak gap scanner. At that point my job is to watch the one or two stocks that are interesting and then watch the high day MOMO scanner. This is my high day MOMO scanner and these were all the stocks that hit it today. It’s from 9:30 up until 10:30, that’s it, a couple at 11:00. I mean, it’s basically a dead scanner, so none of these stocks looked good to me.

DGLY, a low float stock, however it’s got the 5 cent tick so it trades in 5 cent increments. You can see that right there, popped up, sold off. LCI, this is a 32 million share float, but what’s worse is that it’s a gap down reversal, I don’t usually like trading those. Too much weakness. So that one was no good. This one the float’s too high, really didn’t care about that. CVM a little too cheap, I really didn’t even look at it that closely. I like to see stocks hit multiple times in a row and it wasn’t. SSKN, this one you know, I’ve traded it before and not done really well on it so that made me cautious, a little bit of a bias. In this case I just, I don’t know, I just left it alone. It popped up to 230, there was like a 100,000 share seller on the ask, so I didn’t think that looked all that great. Ended up breaking that level, popping up to 33 and then basically doing nothing. No real action there. Couple others, but really just kind of a slow day.

I managed my risk, I followed the rules. I didn’t push my luck and I think that was all the right move. Right now I’m just going to be done for the day at zero dollars, rare, putting it in the calendar as zero trades. I’ll mark it as the 153 day of the year for me because I did come here and I did sit down, but no trades. Whatever, that’s fine. It brings down my daily average, but that really doesn’t make that big of a difference.

Anyways, today at noontime Warrior Pro students we’re going to continue chapter six, which is the gap and go strategy. That’s going to start at noontime in the separate classroom for all of our students. Tomorrow we’ll be working on chapter seven and making our way through our classes. It’s kind of a fun thing to do here at the end of the summer is to reteach all of these classes. So, Warrior Pro students I’ll see you guys at noontime and everyone else, I’ll see you first thing tomorrow morning, 9:00-9:15. Hopefully we see some more action than we saw today, but you know again, if the market’s slow it’s fine, it’s kind of a little bit of an anomaly that it was as slow as it was today. But I can grind on small numbers, still sitting up $364,000 on the year so I can afford to sit on my hands a little bit.

If you’re a trader whose like well I haven’t made that much money I can’t afford to sit on my hands, remember it’s always better to have no trades than to be in the red. If the market’s choppy, it’s choppy. You just got to wait until things are a little bit cleaner. I saw a student say today, he was in trader rehab, “August is one of the most popular times for trader rehab because if you’re not disciplined and you over trade, in the month of August it can really hurt you,” because August is typically a pretty slow month in the market. Hopefully things pick up later this week, next week. After Labor Day we’ll see more volume coming into the market. So, September should be good.

All right, so that’s it for me. I hope you guys have a great afternoon and students I guess I’ll see you in about 45 minutes in the classes and everyone else I’ll see you tomorrow morning. All right, I’ll see you guys in the morning.

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