Warrior Trading Blog

One Trade, One Loss -$2K | Ross’ Trade Recap


What’s up, everyone? All right. Red day recap. So, man, this has been a tough week, and it’s funny, because the first half of June, amazing. Second half of June, terrible. The first week of July, for our first two weeks of July, week and a half of July, amazing, $27,000 hot streak. Then the last week has just been terrible.

So it’s like hot, cold, hot, totally cold, and it is nothing in between. It is either one or the other. Today’s another cold day. I mean, there was some action, but not a lot, and cost me $2000, jumping into a stock that was a little outside my price range, a little outside my float range. But you know what? I’m going to cut the loss as quick as I can and not make it worse.

So one trade today, one loss, and that was my cue to step back and just call it a day. So I’ll be back at it first thing tomorrow, as usual. Join me, guys, for the workshop on Thursday, one PM Eastern, and we’re going to talk a lot about risk management, because here’s the deal: If you can be profitable during slow, cold market cycles, whether it’s in the summer or the fall or any other time of the year … Sometimes we have a cold winter. Sometimes we have a cold spring.

So hot and cold cycles. If you can make it through a cold cycle and, well, make a little bit of money or not lose too much, that’s setting the foundation for a long-term career as a trader. So we’re going to talk about that during the workshop, so I hope you guys register and show up on time. That’s Thursday, 1:00 Eastern.

So enjoy the recap. As always, questions, comments, leave them below. See you guys tomorrow morning.

All right, everyone. So we’re going to do our midday market recap here today, red day recap. So continuing to see really choppy markets, not a lot of follow-through in general. The only trade I took today, I took one trade, CHMA. I didn’t overstay my welcome. The one trade I took was during this first pullback, right here, buying … thinking that it was going to curl right back up to nine and getting stopped out as it broke down to 40.

So that was a quick trade. I was in and back out. It didn’t obviously hold. It did end up … Well, it came all the way down to 71. Of course, there’s no way I would’ve held all the way to the bottom of that pullback. Came back up to 897 and right now is technically in sideways consolidation. It’s above the VWAP. It’s above the nine moving average. It’s still bullish from that perspective, but 11 million shares of volume. It is not doing big breakouts. It’s not an easy one to trade, and I got stopped out on it.

So I think today’s going to be one of those days where I look back and I think, “Man, that’s really disappointing. I’m down $2000.” But, on the other hand, I’m going to stop here, because I think that it’s very easy that I could continue trading. This is the type of day that I could end up down $4000, $5000, or $6000, because once I’m red, once it’s like, “Well, I’m red,” I might as well … Sometimes you get that attitude of, “Well, I might as well just keep trading, try to get myself out of the hole.” Next thing you know, you jump into the next stock, and it’s the wrong one.

So TRPX, this is one that I was looking at, and I’m really glad that I did sit on the sidelines for it. So, on this one, it got halted on news of a merger and is, at the moment, up, let’s see, 64%, which is pretty impressive. So it resumes from the halt on news, and it opens and squeezes up to a high of 420. All right? So 420’s right there. It then drops back down to 385 and, at this point, you can see the volume was just … I mean, it was just so light that I kind of felt like people just didn’t care. I mean, it had news, but no one was interested.

So I was watching it right here for a possible break back over for it, and I just felt like, “You know what? You’re already down two grand. You take this trade, you’re stop is, what, 385?” I could just see it so … I could so easily see it popping up to 405 and then getting slammed back down to 350. Maybe it double tops at 420 and then gets knocked back down.

So I sat on the sidelines on it, feeling like it wasn’t worth taking the risk. Well, it ends up squeezing up to 468 and getting halted. So that’s kind of, at that moment, disappointing, because it feels like, “Oh, I missed the trade.” It comes out of the halt, and then it drops all the way back down and goes even lower, to a low of 307.

So you know what? The one good trade on this would’ve been right here, but you would’ve had to sell before it got halted, because, coming out of the halt, it came all the way back down. So, yes, was there an opportunity? I suppose so, but I don’t regret passing on it, because when you’re already red on the day, you’ve got to be really selective. You’ve got to trade the best quality setups, and this already had more risk for me.

Part of the risk was not being totally clear on the valuation with any type of merger news. It can be tricky to know exactly where the dust is going to settle in terms of price, and so I just sort of felt like the risk was a little too high on it. I think I did the right thing by staying on the sidelines.

DFFM, this is a gapper this morning, gapped up, sold off at the open. VISL, lower price gapper, popped up a little bit, but it’s too cheap for me. So today’s a day where you can see from the scans that we had CHMA, and, of course, that surprise move is what got me into it. This all of a sudden takes off from seven up to nine. I thought we would continue, but we didn’t. RAKR, another one I hesitated on, and that was the right move. This thing did not hold up, and it sold off.

So I am bummed that I took a $2000 loss today. Could’ve done without that. Would’ve been better off, obviously, today not taking any trades at all. CHMA, being a 24 million share float risk, was a little higher. I thought I was being conservative with only 6000 shares. I wasn’t expecting it would drop 40 cents right after I got in. But sometimes that happens. So sometimes losses are going to be a little bigger than you expect, and that’s part of the deal.

This one, no volume, left it alone. QUAD, floats too high. Price too high on [inaudible 00:07:05]. So really just kind of a slow day, outside of this quick move on TRPX and that quick move on CHMA.

Live to trade another day. That’s what it’s all about. There’s no reason to get bent out of shape here, trying to finish the day green when it’s just … This is not the day to be aggressive. So I’m going to just cut the loss here at two grand and remind myself that this is a day in the past that I probably would’ve kept trading. I probably would’ve bought TRPX out of the halt, and I probably would’ve lost another four grand on it and been down six grand on the day.

I mean, I just could so easily see that happening, but not today. Keeping the loss as tight as possible and taking the cue from the market that we’re not seeing a lot of strength. But we’ll also sit tight knowing that I’m green on the month, and if you can be green during the summer, you’re in really good shape. You’re setting a great foundation to be green year-long, because the summer is choppier. Even A-quality setups that you’d think, “Well, I’ll give it a second,” well, they fail.

It doesn’t mean that we don’t have some A-quality setups during the summer, because we do. VISL was great last week or the week before. CEI was awesome. Those were two stocks back to back, parabolic moves, and I did well on them. Those gave me some good profit, and that profit [inaudible 00:08:46] tide me over through this current week of slow trading until we get the next one that does this.

So these are going to be fewer and further between right now, which means, when you find them, you’ve got to make the absolute most on it, and, in between those big moves, you’ve got to do the best you can not to give back the profit that you made. Today I gave back a little more than I would’ve liked to have, but that’s all right. I’ll be back at it first thing tomorrow morning, Wednesday.

Hopefully we have some better opportunities in the market. Maybe we do see that big move tomorrow in some stock, and that’ll be my opportunity to lock up a nice $5, $8, $10,000 green day and put me in really good shape on the week. Really, it only takes one stock like that each week for me to hit my $40,000 monthly goal, so the biggest challenge is not giving back profits while I’m waiting for the really good one, because, obviously, it gets kind of boring, sitting and waiting, and, out of boredom, sometimes it’s easy to just say, “I’ll jump in this. I’ll take a trade.”

Next thing you know, you do that five times, eight times, ten times over the course of a week. You’ve given back potentially thousands of dollars in totally unnecessary losses. So these types of market conditions force us to be disciplined. The ability to be disciplined is a muscle. You strengthen it through practice, and it’s a really good thing to have.

So this is a great time for you guys to be trading the simulator, great time for you to be practicing. Yeah, you can see my PNL right here, down 2100 on the day. So a little bit of a setup, but I’ll be back at it first thing tomorrow morning, 9:15 live stream pre-market analysis and reminder, guys, for the workshop on Thursday at 1 PM Eastern.

We talked about how to manage risks during these types of markets. Obviously, red days aren’t great, but keep things in perspective. Still up about $268,000 on the year. So losing two grand’s not a big deal. I mean, it’s all relative. It’s just about making sure you keep your kind of eye on the horizon, look at the big picture, and don’t get bent out of shape when you do have a couple of red days or you have a red week when it’s the time of year that things get choppy.

All right. So that’s it for me. I’ll see you guys first thing tomorrow morning. Bye, everyone.

If you’re still watching, you must’ve really enjoyed that video. So why not subscribe and get email alerts any time I upload new content? Remember, when you subscribe, you become a member of the Warrior Trading family.