Warrior Trading Blog

One of Those Days -$5,800 | Ross’ Trade Recap

those days

What’s up everyone? So well as you can see behind me the lights are still shining red. Second red day recap, well third red day of the week. I’m in a little bit of a rut. Last Thursday the market was slow. Friday, market was slow. Monday, lost 32 bucks.

 

Tuesday I made almost 10000 which was awesome but it was just one opportunity and the rest was pretty choppy. Yesterday I lost 1300 and today I’m down $5800. So good news is I’m still green on the week but bad news the last week has been pretty choppy, we’re not seeing good follow through. So today’s what’s really frustrating is that I was green, I was up 2000 dollars and I managed to turn that into being red 5000 on the day. That for me is a trigger to just walk away. It’s like so frustrating.

So you know closing up shop, walking away, did a recap, you guys can go through it. Any questions, any comments, leave them below, I’ll answer them later. And as always we’ll be back at it first thing tomorrow morning because you know what, rather than try to keep trading today I’ll come back at it tomorrow. There’s always another trade that’ll be around the corner. We’re in a choppy market so best thing to do is just reduce the risk, be smart and wait for better opportunities. So that’s the game plan. I hope you guys enjoy the recap and I’ll see you first thing tomorrow morning.

What’s up everyone? All right. So time for our midday market recap. Today is sadly a red day recap so I’m going to change the lights to red because that’s the kind of day it is. It’s a little disappointing. I will be sniffing my fair share of gasoline today because I am down $5859.78 which is the exact opposite way I was hoping to finish today. But you know this is the life of a trader. There’s ups and downs. You can’t take one without the other.

You can’t separate them. This is just the way it goes so you know the good news is I am still green on the week. So even though I’m down almost $6000 today you know it’s still a green week and that’s what’s important. It’s not as big in the green as well obviously it was before today. But making nearly 10000 on Tuesday was a great day. And you know so now I was red on Monday, down 32 bucks, red yesterday, down 1300 and red today down 5800.

So for sure the momentum is slowing down and today is a disappointing day because you can see my accuracy was actually pretty good. I’m green on three out of four names but then I had that one trade that I got a little too aggressive on and I got smoked. So the trades out of the gates we’ll just kind of break it down. We’ll start by going over the watch list premarket. All right. So every single day starts the same way.

And also a reminder guys this coming Monday July 30th at 1:00p.m. Eastern we’re hosting a live online training session with me so I’ll be teaching you guys about how to manage risk, how to find strong stocks to trade and how to find a quality set up so those of you on YouTube and Facebook you’ll see the link to register down in the description. So I’d love for you guys to register. Seats will be limited as usual. I think we’re going to cap it at I don’t know if it’s 250 or 500 seats I can’t remember. But we’ve had some problems with our webinar online training software so hopefully by keeping seats limited we’ll have better performance. So anyways that’s coming up next week.

But what we’re going to talk about during that workshop is one of the steps of finding strong stocks to trade. And so every day starts the same way, it starts with going over that gap scanner. So what the gap scanner’s showing us is all of the stocks in the entire stock market that are going to open higher this morning than they closed yesterday. Now we go over this all the time. This is not anything new for those of you that are in the chat room. But the reality is every single day there are stocks that move 20 to 30 percent. BSPM today was up over 100 percent. That’s a huge move. So we see these opportunities again and again. Now we can often identify these opportunities premarket before the bell even rings by looking at the scanner right here.

So SVU is already gapping up 64 percent premarket, 64 percent. So the whole thing with premarket is kind of funny. The premarket starts at I want to say 4:00a.m. for some stocks and goes up until the bell rings at 9:30. Now most stocks don’t trade premarket. Maybe a couple of shares, a little bit here and there. Most just don’t really trade premarket. Institutional traders who want to take really big positions they’re not going to be able to buy premarket because there’s not enough shares changing hands. So institutional traders don’t trade premarket.

Retail traders, yeah we could buy small positions premarket but a lot of time stocks they don’t have a lot of volume and they’re a little choppier. So for most of us we wait till the bell rings. Now if you look at a stock like, just look at Apple for instance. Apple this morning it traded premarket, the gray here is the premarket period. So after hours and premarket right in here.

So you know a little bit of trading but a lot of these small cap stocks are pretty thinly traded. And this morning in the entire stock market of thousands and thousands of stocks, over 10000 stocks, this is the entire list of stocks that were already up more than 5 percent premarket. So we’ve got two, four, six ,eight, 10, 12, 14, 16, 18, 20, 22, 23 stocks if I’m counting that right. Only 23 stocks out of 10000 that are up more than 5 percent. That’s significant. These are breaking the standard deviation of typical range.

So these ones are the ones that we’re going to look at and I focus on the top 10. So two, four, six, eight, well so you know right around from there up is what I’m looking at. Now I start by looking at the stocks that are lower float, they have a float of less than 10 million shares. So that’s this one here. This one down here and that’s about it. So this morning there were only two with a lower float. And then I also look at the ones that are up the most. So 64 percent is big. However at 32 dollars I won’t trade it so that one’s off the list. BPI, acceptable, I’ll watch it. TAOP, acceptable, maybe a little high on the float at 23 million. This one’s too high and so just like this, this one’s too cheap. I end up narrowing down my watch list to a few that look good.

So this morning we were watching A.W.X for possible continuation, had a premarket chart here where it was consolidating, we were watching that for a break to the upside. It did end up breaking to the upside and then it ended up having a really sharp drop. Very very difficult price action. I ended up making money on it but only $186. It just wasn’t an easy stock to trade. And so you know my only trade on it was coming out of the halt.

It opened and it was very choppy. Choppy choppy choppy, up and down, up and down, up and down and then all of a sudden boom. It pops up and this [inaudible 00:07:57] circuit breaker. It resumes and I jump in for the break of 510. It pops up to a high of 523. I sell three quarters and I stop out of the rest as it comes back down making only $186 on 5000 shares. Very silly, just not good at all. And look at this ended up just tanking right here.

So why is this stock doing this? Spiking up here and tanking here. I really don’t know. It was doing it yesterday and it was very difficult to trade, whether you were long or short. So I don’t know what’s up with that one but I only made 186 bucks on it. All right next one on the list, TAOP. I wasn’t sure about this one. I thought it was a little too cheap. Ended up you can see popping up a little bit but I just didn’t go for it. Wasn’t that interested.

Next one down, TRCH. The float was too high, above 20 million, not interested. FTFT, a higher float, light volume, no trades. This one, nothing, nothing. AVMA, on the watch list premarket. You can see how it had a premarket high of about 530. The bell rings and it starts surging up, all of a sudden this one pops up, makes a big move. I jump in as it’s squeezing up, getting in for the break of the whole dollar at six. It squeezes up to, let’s see 617, gets halted, resumes, hits a high of 630. I have 5000 shares. So I’m up about 1500 bucks. And then it comes all the way back down. So I only actually made $296 on that trade. Another really small winner. So just kind of a bummer there.

And then we had BPI. All right. So BPI was on the watch list this morning, had earnings right here on the scans. And you can see out of the gates this put in a really nice move from $10 all the way up to 12. I took two trades on it. Very first trade out of the gates I actually took a short on it, shorting right here at 1120, sorry 1122, which is very rare for me. But you can see, I’ll scroll this up, short at 1121. Smaller size. I’m not as comfortable with the short size, a little higher priced stock. Shorted at 1121. It drops to 1090, I try to cover, I don’t get filled.

And then I stopped as it curled back up. So I made 250 bucks. It then, as you can see, it was doing nice pullback, a little pullback there and a move higher. A little pullback there and a move higher, sharper pullback here but it ended up moving higher. So you know pretty good strength and so I ended up getting in right here to the long side at 1175, scalping up to the move to 12, selling half at 1199 and then stopping out the rest as it came back down. So you can see I’m long at 1077, selling half at 1199 and sold the rest as it came back down at 64. So you know again these aren’t home runs, these were very small trades, only up 360 bucks on that stock.

And then came BSPM. BSPM, the one that ruined my day. So BSPM when it first started popping up I was like I don’t know guys I don’t think I like it that much because look at how horrible it was yesterday, it just tanked. It dropped really hard, received delisting notification. So it drops really hard but then today it starts popping up. All right. So I’m like honestly I’m not that interested in it unless it breaks over 250, the half dollar, that’s the 200 moving average. So unless it breaks over 250 I don’t care about it. All right so it pops up to $2. It gets halted. It resumes higher, squeezes up to 250 and 269. So I jump in it at 269 … where was this … So I jump in it at 269 right here. I get partial fills on all four orders and I’ve got like 3500 shares. It resumes and it pops up to a high of three. I add it at 290. I sold half my position or whatever this was at 299. Sorry I can’t see this very well, I’m going to move this up.

So I sell half my position at 299. I then added back at 320 and 324. I sold at 329 and right here I was up $2000 on the stock and I was feeling good. And the thing was taking off, it was squeezing higher. I then decide to add for the break over 350 because I thought it looked like it was going to get halted a third time in a row. So I add right here 750 shares at 330, 343, 342 and then look what happens. I added so high and then one candle in one minute it went from a high of 343 to a low of 263 and at that point I was pretty much a deer in the headlights. I was just like “Nooo” type of thing.

And it’s like the problem is one of the worst things is when you have a profit, you’re up, being up $2000 and then seeing it all of a sudden reverse and now you’re down like five grand. It’s just the worst. There’s nothing worse than it. Going from being green on the day to going to red on the day. For me it’s a trigger. It’s absolutely a trigger because it just brings out the emotion. You had it and then it disappeared, it’s gone. So the green to red move is the worst move to have as a trader.

And so at this point it gets halted going down. It opens lower and I end up stopping out for a $7000 loss. I lost even thousand bucks. So I went from being up 2000 on it to down 5000 and I was down 4000 on the day, 4300 or something. So I was going sideways, going sideways. I decided to get back in here as it was moving back up. It hits a high of 295. It pulls back. I hold through the pullback. It then pops up to a high of 320.

I hold through the move thinking that I’m looking for a [inaudible 00:14:10] high a day on this kind of U shape and then in this candle it drops all the way down to 274. 50 cent drop. It’s unconsolidating sideways, sideways, sideways and I’m holding, holding, holding until finally I stop out right here. So I lost another $1500 on that pullback. And you know it’s disappointing. To go from being green on the day to red is very frustrating, it’s a trigger for me and so I ended up following the rules. Max loss is 5000. If I’m down by more than 5k I’m done for the day.

So it’s a set back no doubt about it. Between the last two days I’m down like $8000 and that’s a bummer. But it’s not again really outside my standard deviation for pullbacks as I’m growing an account. For me the largest pullback I’ve had is closer to 25000 or $27000. I’ll just show you my reports where I track that information. So let’s see, I’m trying to remember, I think it’s under detailed win loss expectation. And this is my cumulative PNL and this is the max drawdown. So right here you see this is growing all the way up to over a million dollars of profit since I started using the software which was in 2016. So my max drawdown is $22000. So that means from all-time highs the most I dropped is 22000. And that was on the last drop which was I think right in here. That was the last one. I went from yeah a high of 872000 in profit down to 850000.

So that was a 22000 dollar drawdown from the high. So today my cumulative drawdown in the last two days is about 8000. So that’s going to be a dip almost undetectable on this equity curve and I’ll bounce back from it no doubt about it. It’s just  I got to make sure I don’t have another red day tomorrow, another 5000 dollar day, it would put me down 13000, a fourth red day would put me down 15000, a fifth red day that’s where it would start to really compound.

But in the context of where I’m at right now I’m not too concerned about that happening. The thing that gets me is when in one trade I lose like ten thousand bucks, I just have a blowout loss and I’m not already green on the day. That’s when it hurts a lot. But fortunately that didn’t happen today and hopefully won’t happen.

So anyways this just kind of helps put it in perspective for me which always helps. Anytime you have a red day it’s like OK let’s put this in perspective, is this is this an account buster, is this just a normal standard deviation. These days I’m not going to say that going from dropping down 22000 which is what this is right here, a 22000 dollar drop, I’m not going to say that’s not painful because that was painful.

I was really frustrated with myself, I was disappointed but then I have to say “Listen Russ, no one’s going to be playing the violins for you because you’re having this kind of a little pullback. Give me a break. You know this is where you’ve come from. This is what you’ve done and not just in the last two years, give yourself a break. Yes you’re red, yes you’ve got to adjust. The market’s a little choppy, it’s a little slow but this is part of trading. You’ve got to get used to it.”

So today I’m not going to beat myself up. I’m disappointed that I’ve got aggressive on BSPM however had that gone into another halt above 350 and squeezed up to four which in a strong market certainly could’ve well I might have been up $10000 on that stock. And remember I had a nearly $10000 day on Tuesday. So you know this has been a really nice hot streak right here. It’s been about almost a $100000 on this leg. It’s been a good leg.

And here I’m going to have my first little setback which will be down about 8000. Hopefully I can turn it around on … well I don’t really expect to turn it around on Friday. Tomorrow’s Friday. But hopefully I can turn it around early next week and finish July in good shape, I guess above 40000, somewhere between 40 and 50 and going to August feeling good. That’s the game plan. All right.

So any of you guys that had a red day today or ever have a red day the first step is put it in context. We all have red days, being a successful trader is not about never having red days. It’s not what it’s about. It’s about having average winners that exceed average losers and/or having a percentage of success that’s where you win more than you lose. I win about 70 percent of the time. Yes I have red days just like anyone else, that means I lose 30 percent of the time.

So three out of every 10 trades will be losers. I got a couple of them today. But overall my accuracy is pretty good and this is over the course of years of trading. However for me my profit loss ratio is about one to one. My average winners are about equal to my average losers and that’s the biggest downside to the strategy that I have which is taking profit quickly.

There’s other traders out there that they wouldn’t take profits when they’re up 15 or 20 cents, they’ll hold it and look for that bigger winner. But what’s going to happen is that a number of those times the stock will come back down to breakeven and it’ll end up being a loser so their accuracy will be lower. Just like BSPM, I could have sold this trade where I got it at 85. I could have sold it as it popped up to 320. I was up 25, 30 cents.

I could’ve sold it and taken profit and I didn’t. I held for the bigger move. As a result my accuracy is going to decrease a little bit because of that choice. There’s a lot of traders who trade like that in general. They don’t take profit when they’re up 20 cents because they’re looking for 50 cents or 75 cents per share. So they’re going to have higher profit loss ratios and lower percentages of success.

So you know you sort of have to decide what type of trader do you want to be. I’m the type of trader that I need the confidence boost from being right 70 percent of the time. It makes me feel better, it makes me feel more comfortable being aggressive, taking bigger sides. And so I’ll sacrifice the profit loss ratio in exchange for that accuracy. And that’s kind of the thing we all do. If BSPM if it goes to a high a day I will literally cry because I’m going to be the guy that lost money on it just by being up 100 percent but that’s OK, that’s the way it goes.

Tomorrow is another day, I’ll have another chance for a winner. There’s always another train around the corner, another trade coming up so I’ll be back at it first thing tomorrow, hopefully can finish up the week in good shape. I just want to break the red streak and finish in the green but I’m not expecting tomorrow’s going to be a big day. I think we’re still in a choppy market so need to manage risk, trade smart and keep those losses as small as possible. If it ends up being another three or four days of choppiness then that’s what it is, that’s fine. But I need to keep the share size small so I don’t risk doing something stupid.

So that’s it for me today. Those of you that want to register for the seminar or the online training workshop that we’re going to have on Monday, if you check out Facebook or YouTube you’ll see the links that are posted there. I don’t have the link right now to drop in the chat room, I just don’t have it on my computer but i’ll remind you guys again on Friday and of course on Monday. All right so that’s it for me. I hope you guys have a great afternoon. And we’ll be back at it first thing tomorrow morning. All right. 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 e-mail alerts anytime I go live or upload new videos. Until then, happy surfing.