Warrior Trading Blog

One of Those Blah Trading Days +$568 | Ross’ Trade Recap

What’s up, everyone? All right, so here we are finishing the week, Friday up $568. This is not a home run trade, it wasn’t a huge day. I took, I think it was only three individual trades. I had one winner, one loser, and then a small kind of $250 winner.

 

So, not a lot of love in the market today. It was very slow, but I’m going to give myself a pat on the back because I didn’t push it, I didn’t overstay my welcome. I responded to the market.

It’s very easy to say, well, I trade with 15000 shares, I’m going to keep being aggressive. But today wasn’t a day to be that aggressive. Today wasn’t a day where we were seeing home runs, and if I had kept pushing, I would have definitely finished in the red. The same is true yesterday. So, two back to back days where I strengthen that muscle of discipline.

Remember, that it’s a muscle. It’s not like you learn discipline, you have it forever, like learning to ride a bike. You can have discipline for a period of time and then you can get really complacent and it’s gone. So, constantly working to strengthen that muscle is important. These two days were an opportunity for me to strengthen the muscle, to be disciplined and it’ll help me, going into next week, we’ll see what the market has in store for us. Maybe it’ll continue to be slow. Maybe we’ll bounce right back on Monday with some strong trading.

So, I’m up for whatever. I just need to make sure I react to the market that we’re in. Trade the market we’re in, not the market I want to be in, all right? Enjoy today’s mid-day recap. Any questions, any comments, leave them below. I’ll come back through and answer them later this weekend. Enjoy.

All right everyone. So, we’re going to go over our trades from this morning. I was trying to do a Facebook Live, but I don’t know, for some reason it didn’t … I’m going to delete this. For some reason it stopped broadcasting halfway through. That’s the way it goes. We’ll try it again another time.

Anyways, this morning, kind of a slow day really. Just not a lot of action in the market. I came in early. I was here at 6:30 this morning. I had some other projects I was working on, and I was like, all right we’ll see what’s looking good. 7:30, nothing’s on a scanner, 8:30 not much, nine O’clock, not much. 9:15 still not much on the scanners. Time for the bell to ring and there just wasn’t a lot to trade.

Today was not different from any other day where it starts just by looking at the gap scanner. It was just that today we didn’t have a lot to look good. We had SLS, SAEX, neither of these made big moves. SLS, I lost 700 bucks on. I jumped into this one for the break at 2:00. It first, hit up, and I popped up and hit 204, and then it faded. So, I lost 700 bucks on that one.

So, no follow through there. Empty SL, this was continuation. I was watching this to see if it would break over the high of 370 on the daily chart, it popped up to a high of 354, made 1000 bucks on it. But not much to say. It didn’t hold up. Then the last one was CSLT which I shorted, how rare right? I don’t usually press the short button. But on this one, it’s a five cent stake stock, it popped up here. It was doing a micro pullback, and I just expected it to fade, and do a false breakout. So, I shorted this one at $5.50 right here, and I covered it as it dropped down to 535, 540. So, $240 winner there. And boom, just like that $568.

So, another green day, I’m happy with that but today was just not a lot of follow through. What I’m glad about is that I didn’t overstay my welcome. I didn’t push it. I was very quick to say, market doesn’t feel super-hot today, I’m going to go easy. $500 a day, that’s a that’s a good day. Certainly, not as good making 8000 on Wednesday, and 7500 on Monday, or 4300 on Tuesday. But it’s a good day.

Right now I’m finishing the week up right around 20000 bucks. $20000 in five days of trading, can’t complain about that. If I can keep that going next week, I’m going to be finishing July in really good shape. I’m sitting right now around $42000 or so on the month. The goal would still be to be around the $50000 minimum this month. If I can get closer to 60, that’d be good.

So, I really only need to make another $10000 to hit my monthly minimum. I know it’s probably seems crazy, $50000 a month, what’s the matter with this guy? But the reality is, there was a time when my goal was 1000 a month, and then it was 3000 a month, and then 5000 a month. And then it was 10000 a month. Then after a while, I was consistently making 10000 a month, so, it was 20000 a month. Then all of a sudden, I realized I’m consistently doing 3000, 40000 a month. The bar just keeps going up.

It’s just that that’s the funny thing about trading. Once you get it, you get it. A lot of people learning to trade, they’ll have this period where they’re struggling. It’s kind of like, I’m at this point where my profits are like this, just up and up and up and up. But for long time traders will go through this sort of up and then back down and then up and then back down, up and down, up and down, up and down. Just doing this. Basically going sideways for what can last for years.

This is what it was like for me. I was going sideways for years until I figured out what was holding me back, and then I broke out and since then it’s been up. The trick is, trying to figure out, what’s the difference between a trader who’s consistently making money and the ones who are just going sideways? What am I doing wrong? What’s holding me back?

What was holding me back was mostly trading bad quality stocks. I would take 15 trades a day, and of those 15, maybe two were good quality trades, and the rest were junk. So, once I realized that, I cut out all the junk and took just the two to three trades a day that were actually good quality, and suddenly my profits changed. Suddenly, I started actually making money. Even though I was trading less, I was trading better quality stocks. It didn’t mean I didn’t have losses sometimes, I still did. But my accuracy was higher, and my profit loss ratios were better. Trade the best leave the rest.

Now, today’s a day where I didn’t trade a lot, only 15 trades. I had a day earlier this week where I had like 150 trades, and I made $8000 on that day. That day there was a lot happening. But today the market was a little slower. So, being able to have the discipline to adapt to that type market is also really important.

If you try to force it on a bad day, you’re going to lose money. Today’s the day where if I had kept trading, I most likely would have lost money. I saw a couple other stocks at the scanners … What was the last one? This lower flow DHCP, … Let me pull this up. DHCP. So, let’s look at that for a second. This one hit the scanners, and honestly, this is a pretty nice move from 550 up to 620 all the way up to 760. When this made the move, I pretty much already called it a day. What time was this? It was 11:17 when it took off.

At this point, I was already done for the day. But you can see micro pullback, micro pullback, micro pull back, and then finally a top, a false breakout, and then a fade back down. You’ve got one, two, the first and second pullbacks clean opportunities. The only thing that would have made me a little nervous on this was that the volume was so light. It looks like it was halted on a circuit breaker. It dropped back down, then it curled up. When it was halted, it probably only had like 50000 shares of volume, but new traders came in for the high day break. It popped up to 650, consolidation, consolidation. Popped up, 660, 670. Nice big move there.

Some nice opportunities on it. But for me, nothing indicated that we would have that type of opportunity today. This morning, we didn’t see hardly anything on the scanners. This was really the only stock that looks good. Everything else just was slow. CLST, not much there. So, just kind of a slow day. If you ended up sticking around and making some money on DHCP good job for that. I left that one alone, and I don’t really regret it. I think that was probably the right move.

Anyways, finishing the morning $568. Another green day of trading. Up 42000 on the month. Over 350000 on the year, and I’m sitting at $694000 of profit in the account that I started with $583 a year and a half ago. So, I am 69% of the way there to my $1 million dollar challenge. You think about that, it’s like doing a Master’s degree. It’s like a two year long journey, and it’s such a commitment. Emotionally, just to have such a long … To set out, I’m supposed to turn $583 and turn it into a million bucks.

If anyone starts that today. They know they’re starting out on multiyear type of adventure, and there’s going to be ups and there’s going to be downs. But fortunately, we’ve had more ups than downs. So, continuing to make progress, $306000 to go. I’m hoping I can get there by the end of this year.

My entry on MTSL, I got in at 38, 40, 41, 44, and added at 50. I was buying as it was going up, and then I sold half at 51. I wanted to sell 55, but I hit the bid. I just sold half of 51 and then I just kept hitting the bid. It just, it was sluggish. It wasn’t really opening up.

So, 12000 shares, nine cents of profit. This one had the potential. I thought if it broke over the half dollar to break the pre-market high of 360. It needed to break 360 but it didn’t. It just was I don’t know heavy right here. Then that, for me was the writing on the wall to start unwinding that position. 370 was the daily breakup. But we need to first break 360, then 370, then 80, then 90, then $4, and then we have room back up to 645.

So, a good amount of potential on this one. Maybe it’ll be in play on Monday. But today, we just didn’t have the momentum. Trade the market you’re in, not the market you want to be in, and that’s the way to do it.

How many orders to accumulate 12500 shares? Five orders. I do five … Every size is 2500 shares. So, 1, 2, 3, 4, 5, all right? So, five orders for 2500 shares. Now, it’s not to say that you couldn’t type in 5000 shares, you could. I just choose to use smaller orders. And as I’m watching the level too, if I’m seeing the stock moving up, I’ll keep adding. Because here’s the thing, there have been times where we see a hidden seller. So, if I press a 12000 share order and I realized that there’s a hidden seller right here on the ask, I am going to get crushed. I’m going to lose 10 cents. Almost definitely, I’m going to lose 10 to 15 cents.

So, I add, I make sure there’s not hidden sellers. I want to see that the time and sales is flowing, I want to see the stock moving towards the breakout spot. And as long as it still looks good, I keep adding. If it’s going to go into a halt, I’ll add into the halt. That for me it’s just always worked really well. The downside is the commissions right here. The upside is that this for me is a strategy that generates really good profit. Commissions are just the cost of doing business and I just don’t worry about them all that much.

All right. That’s about it. For me, going into the weekend feeling good … No, when I’m selling, I’m using my hotkeys. This year was a hotkey to sell half of my position. So, it’s 50% of my position, whatever my position is. Then this hotkey here was to sell again, half. So, I sold half of 12500, which was 6250. Then I sold half of 6250, which was 3125. And then I sold … But, I only failed 2200 shares.

Then I had a full position of 1900 shares left. So, I tried to sell it all. I only got a partial fill, and so I sold the rest. That’s the thing that’s interesting is this does the math for me. That’s the advantage of the hotkey. I don’t have to think, “Oh, how many shares do I have? Oh, geez, I’ve got 2270 filled, so I’ve got 3125 left. By the time you do that, look, you got typos. Then that’s when you get into trouble.

So, let the computer handle that for you. It’s good at math. So, I just let it handle 50% of position, 25% of position, whatever it is. Devon, so what causes a stock to go into a halt. Generally, when a stock squeezes up more than 10%, within five minutes, it can get halted.

Now, that’s true, especially from 9:45 until 3:45. The first 15 minutes, those circuit breakers are doubled. So, instead of 10%, it’s 20%. Stock has to go up 20% in basically less than five minutes, almost immediately spike up. Then a stock can get halted. So, that’s what happened on DHCP. It spiked up … If we go back to the one minute chart, you’ll see that basically in one candle, and this is always a little suspicious, but in one candle at spike from $5.60, all the way up to $6.24, okay? So, more than 10% it’s halted for five minutes.

It resumes trading at 11:24, and it hits a high of 6.30, and then it drops to 6.10. But if it dropped 10%, it would have gotten halted going down. But it didn’t, it dropped just a little bit and then it curls back up, blasts through the high over 6.30, that’s where fresh buyers come in. That’s where short sellers cover. It squeezes up to a high of 6.50. Little pull back then it keeps going, keeps going.

Now, even though it kept moving, remember, it has to go 10% from the average price of the last five minutes. So, the average price from the last five minutes is 1, 2, 3, 4, 5. The average price is like right here. So, now it needs to go up 10% from here, all right? So, it didn’t do it. Then by the time it hit it right here, well, now it’s the average price of the last five minutes. So, the average is now right here. So it needs to go here.

You see how the average price keeps moving up. It really needs to go almost straight up in order to get halted. We don’t see them on every stock or every momentum trade. There’s not really a technical indicator on our charts for when a stock will get halted, and what’s also … This throws a wrench into things, there are times where we think a stock probably should get halted, or will get halted, and then it doesn’t. It squeezes up 50% and it’s not halted, and we’re just scratching our heads like, what’s going on?

it’s a little bit of a mystery. But generally speaking, around 10% to 20% is where we can see circuit breaker halls. Yeah, good question there. All right, Dan, how do I recognize a hidden sellers? The way I can usually recognize … Let’s just look at this stock here. See at 28 you see … Okay, so this one’s okay. But if we see a lot of … Right now, this shows 100 shares or 1500 shares. If you saw 10000 share by order go through, and it’s still showing 1500 shares, that tells you this is a hidden seller. Because even though someone just bought 10000 shares, it didn’t buy up the shares that are visible for sale. So, that’s when we know there’s a hidden seller.

We’re seeing the buying going through but the price isn’t moving. So, all that green there, no hidden seller because the price just moved up. So, that’s fine. We’re sitting at 30, that’s what you like to see, no issue there. But when there’s lots of green going through and the price isn’t moving, that’s a hidden seller.

Actually, I have … Well, that’s not actually a good example. I was going to say, I can show you this example of a trade from the other day. This isn’t actually an example of a hidden seller. But it’s kind of similar … Hang on, let me just drag this up here. This is … We’re going to be watching MTSL, and you’re going to notice as we come up to 350, that there’s a big seller. I’m up 7400 on the day. So, see it’s popping up, popping up. Looks good. Whatever, I screw up something there with the window by accident.

So, I add going into the half dollar, and then it dips down a little false attempt. Okay, so watch what happens at the half dollar. So, that’s obviously a really big seller. Someone is selling 100000 shares. It’s not a hidden seller in this case, right? A hidden seller is when you see all the buying that we’re going to see in a second, but the price doesn’t move.

So, it’s just showing, let’s say, 700 shares. It’s not showing 70000. And you’re like, “Why isn’t the price going up?” There’s all these orders going through, but the price isn’t going up, it’s someone’s hiding the share. Now, the only reason to me someone would actually show 100000 shares, is if they’re trying to scare the market, and get people to not buy or bail out. Because showing a 50000 or 100000 share sell order creates a clear level of resistance. Usually, people don’t buy into it.

Now, I did, because look what happens? You know when it goes down, 5, 4, 3, 2, 1, it’ll snap. That almost always happens. So, that’s what I was playing off of, is that this would snap, and that if perhaps this was someone shorting the stock and trying to be super bearish, that maybe they would get squeezed, and they would have to cover if this thing’s squeezed up to break the high of the previous day which was in the 70s. But we ended up hitting resistance at 70 which was the level we still can break today.

So, watch this 41. All right, so 41, 38, 31, 18, boom, boom, boom. See how fast that breaks just like that, and boom, it’s up 10 cents. I always try to sell just really quickly like that, and capitalize on that quick breakout. It’s a setup we see a lot. But a hidden seller would be where you see all that buying that you’re seeing right here, but the prices in breaking, and you’re not seeing the seller here. So, you’re just seeing all the buying, but you’re like, what’s going on. That’s when you know there’s a hidden seller.

A hidden seller eventually will break, it’s just a matter of are there enough buyers to buy up those shares? Because sometimes there are, sometimes there aren’t. I would say in the last couple of weeks, I don’t know if my average winners are smaller or not. I mean today, yeah, definitely. Yesterday, for sure. But in general, over the last couple weeks, I don’t know, we’ve seen a couple of really nice winners like that $8000 day, I needed some big winners to get there. So, no, I think we’ve been seeing still pretty good winners … I don’t know. It has been a little choppy on some days.

Anyways, that’s about it for today midday market recap. Another green day, feel good about that, and we’re back at first thing Monday morning, pre-market analysis around 9:00, 9:15. I encourage you guys to study up this weekend, study the big momentum trades from this week. Go rewatch the midday market recaps from the whole week. Study those charts because Monday morning will be here before you know it, and you want to make sure you can capitalize on the opportunities. All right, so I’ll see you guys all back here first thing on Monday morning. Enjoy the weekend.

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