Warrior Trading Blog

+$5,183.29 in 1hr before a Circuit Breaker Halt and 50% drop

circuit breaker halt

+$5,183.29 in 1hr before a Circuit Breaker Halt and 50% drop

 

 

All right, guys. So, it’s do our midday market recap. I know it’s only 10:30 but I’m going to throw in the towel here today with $5183.29. What a way to finish the week. That is a really, I mean, it can’t really ask for much more than that. I started the week on a really disappointing note with a technical error that cost me 4000 bucks, losing my internet connection in the middle of a trade. It’s the luck of the draw. It’s disappointing and frustrating but it’s one of those things that sometimes happens.

That put me in the red on the week, right away, and I’ve had to spend the rest of the week getting myself out of the hole. On Tuesday, I didn’t take any trades. I didn’t see anything that was worth taking, so no trades on Tuesday. On Wednesday, I made $528. Yesterday, I lost 300 on two day trades, and I was up 800 on a swing trade, which ended up getting stopped out with only $200 profit. Yesterday I lost $128, and now today on day 152, 152nd trading day of the year, I’m up $5183.29.

So, remember yesterday when we talked about the importance of, number one, being patient. Sitting tight, waiting for those A quality setups, and then when they come, getting aggressive. That’s what I did today. Now, on RTNB, this is the only stock I traded today. I saw other things, I was thinking about trading UVXY, but I didn’t. Uvxy, of course, would be trading against the market going down. I just stayed focused on looking for just one good opportunity. I said, “I might not trade today, because it’s Friday, I haven’t had a very good week, I’m getting a little frustrated. I might just not trade.”

Then all of a sudden, we see on the scanner rtnb hit at 9:42. When it hit, I was like, “Hmm, it’s $1.03, I don’t know.” Then I saw it go to a $1.17, and I was like, “Okay, well hold up.” Going from a $1.03 to $1.17 is significant, that’s a pretty big move so I was like, “Okay, this thing is moving quickly. I need to pull it up.” I pull up the chart and the first thing I see is this beautiful daily chart. This is the daily chart of one of my swing trading setups, which is buying stocks that are a week off the low.

This is the same setup we took on MEET yesterday. You can see MEET here on the daily chart. Now MEET was a grade trade at 51 with 4000 shares, and it moved up to 70, so I was up 20 cents, 800 bucks. That’s a solid trade. Maybe I should have taken the profit halfway there or something. I thought, though, that it had room to keep going. Anyways, I love that setup. It’s the same one we traded on ZYNE last week, on this day here, and then this is the one that we saw as well.

When I say that on rtnb, I was like, “We got an A quality setup, daily setup.” Now, that’s in contrast to when I see a stock hit the scanner and I look at the daily setup and I’m like, “Hmm, I don’t see anything. It’s cheap and I don’t like the setup, and that makes me just not very interested.” Once I saw that setup, I was like, “I love it, this is exactly what I look for. I’m going to try to jump in.” I saw a little micro pullback right here, under 1.20. It popped up to 1.24 and pulled back just for a second, and I’ll show you guys. Let’s see, the screen here.

That was that little pullback and I saw that and I was like, “You know what? I’ve just got to jump in and I can’t be afraid to be aggressive.” Let me just drag this up here. This has halted again right now at … Let’s see. It was halted at 1.94. It’s still running, I mean, it’s still showing a lot of strength, so we’ll keep this on watch, even as we’re doing this midday recap, but in any case, I was like, “This looks good” so I jumped in. 5000 shares at 1.20, 5000 at 1.22, and another 5000 at 1.25.

I stepped up to the plate on this one, and you know what? This was risky in a sense, because you guys may remember one of the last times I stepped up to the plate like this on this price range. Let’s see. I’ll switch this around. The last time was … Let me scroll up a little bit. That’s right. It was BDR. BDR. What happened was on this one, I jumped in at 1.17 with 15,000 shares, 1.17. It pops up to … I don’t know. 1.29, and then it drops. It dropped fast, and I lost $7000 on it, and I was not happy. I was very frustrated, and the reason I was aggressive on that was because just earlier in the week we had seen an awesome setup just like rtnb, that we see today. Rtnb looks like it’s going to be halted again. This thing is just going parabolic.

I’m not going to beat myself up for taking my profit on it because remember what happened on DGLT? It squeezed up, and then what happened? It got halted on a T12 circuit breaker, pending and basically they want news from the company, the SEC wants news from the company. “Why is your stock up 300%?” I don’t want to get caught in rtnb, even with 3000 shares, you know? I just don’t want to get caught with $6000 that I’m holding now until it resumes. DGLT’s got a lot of people trapped right now. There’s a lot of people that are long and short this stock that can’t get their money out until it resumes.

So, I’m going to take the approach of take the money and get out of the way. I’m going to be one of the first ones in with a really good average and I’m not going to overstay my welcome. I’m going to be quick to take my profit out of the market, and now I’ve got $5000 and I’m going to protect it. I really encourage you guys to have that same attitude, and it doesn’t mean that you can’t maybe scale out a little bit of profit on the way up here if you’re still holding, but just know that this is going to start to raise eyebrows, what’s going on.

Now, remember our resistance point that I called out was 2.29. It was 2.30. it was right around the nine moving average, and right now we’re halted at 2.10. My entry at 1.22, I mean, we’re going to be pushing 100% off that entry and it’s going to be … I mean, that’s pretty impressive. There’s no doubt about it. Sure, I could kick myself and say, “Dang it, I should have held it longer” but if this gets halted on a T12 circuit breaker halt, I’ll be thinking, “Dang it, I should have taken the profit.”

If you have that attitude, then basically you always are a loser. You always lose, because you lose because you sold too soon, or you lose because you held too long. Instead, pat yourself on the back when you take some profit, be grateful that you have it, and remember that if you’re green today, you’re doing something 9 out of 10 traders can’t do. Just walk away green, and you know what? We’ll see another one of these come around. We’ll see another one next week, next month. They’ll keep happening.

Anyways, I got in at … Let’s see. Turn this around. I got in at 1.22, 15,000 shares, which is a little aggressive. I added at 1.46 for the break of 1.50. Got myself up to 16,000 shares. I tried to add at 1.32 and I didn’t get filled. I tried to sell at 1.56 or 1.55, I didn’t get filled. I finally sold 5000 shares at 1.59. Oops, so I started scaling out a little bit. 5000 shares at 1.59, and then I started having some difficulty. I tried to sell at .62, .64, no fills. Finally, filled a little at .65 so that got me down to only 6000 shares.

We dropped down, I tried to sell at .40 and .38 and no fill. End up trying to fill at .49, I filled 1005 shares. Filled a little more at .38 and at that point I was out of the trade. Bailed out completely right here, .37, .36. I then tried to get back in at .60, I didn’t get filled. Tried to get back in at .68, I got filled. I sold 2000 shares at .86. I tried to sell 500 shares at .91, didn’t get filled, sold the rest at .78 and that’s how you get $5183.29.

So, we’re halted right now, again, on a five minute circuit breaker halt. You can see the halt time was 10:32 and 25 seconds. That means it’ll resume around 10:37, so we’re sitting right here at 10:36. We’ll expect a resumption, this may go parabolic. Maybe it’ll go up to 2.50, maybe it’ll go to $3, and it’s going to do that without me, but if this gets halted on a T12, I’m not going to be in it, and I’m not going to have to worry about losing 50% of my capital because it resumes a week later at a 50% loss.

That’s what we’ve seen with a lot of stocks that get halted on T12s. DGLY, KBIO, there’s a bunch of others. DGLT is still unknown. It’s still halted, and you’ve got a lot of people who have their capital tied up in this trade. They can’t do anything. I mean, they might have margin calls and they’re just sitting there waiting. I know that’s frustrating. I’ve been fortunate, knock on wood, that that hasn’t happened to me, but it’s partly because I take this approach of knowing when to take my exit and say, “I’ll let guys play with this that want to get aggressive,” and I’m just going to be feeling good that I got that good entry early on.

All right, so that’s about it for today. It’s a really nice midday market recap. Always love having a big green day, and it’s a great finish to the week. I’m just happy for that. It puts me up about 1000 on the week which is good, so really that in one day, really just totally turned around my month in a lot of ways. This has been a pretty slow month, so boom, just added five grand of profit to the month. We’ve still got two full weeks left. I’m going to take the same approach. Looking for A quality setups. On Monday I’ll start putting out my swing trade watch list, the stocks I’m watching for swings.

Not taking any swings here going into the weekend. I don’t want to do that, but starting on Monday, we’ll see what we can find. Okay, so I hope that you guys who are going to keep trading trade smart. Remember how much you’re risking on these trades. Try to finish the week in good shape and just remember, green is good. Okay, so that’s it. Hope you guys have a great weekend and I’ll see you first thing on Monday morning. All right, bye guys.

Oh hey. I didn’t see you there. While 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 then, happy surfing.