Warrior Trading Blog

My best students made a combined profit of over $60k today & I finished with $4.2k

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My best students made a combined profit of over $60k today & I finished with $4.2k

Alright guys, so let’s do a little mid day market recap. We’ll go over the trades from this morning, this is finally a really good day. $4,245.83. This is one of the bigger green days that I’ve had in a couple of weeks. I had a decent day last week, but then of course I had a red day. It’s definitely nice to get a little bit of momentum back into the market and catch a nice winner.

Puts me in better shape, it makes up for the red day. Definitely pumped to be able to make $4,200 in the first hour. As you can for those of you on YouTube and those of you that are in chat daily gain, 4245. Mostly, form one stock, $3,859 from MOSY, 859 from CLNT, and I lost 473 on NURO. Three trades today and accuracy was 66%. Two out of three were winners. That puts my accuracy on the week down at 80%, which is still good. I was 100% yesterday, dropping down now. 80% accuracy on the week.

Why don’t we go over the trades that I took. So $4,245, I’ll move that over to the side. First trade of the day was a red trade. I was like, as soon I took and I was down 400 bucks I thought, “Ah man, this is exactly what I didn’t want to have happen.” So, that’s a good trade to look at. We can look at both a couple of trades that went really well and a trade that went not so well this morning.

Now, let’s see. This trade probably put a lot of you guys in the red, because it was one of those trades where you knew the stock had potential, so there was that desire to just jump in out of the gates, even though it was already extended. The pre market flag was consolidating from 399 down to 388. The first [inaudible 00:02:20] will make a new high was a good entry, but that entry would have been pre market right here at 388. I don’t like to trade pre market, so I didn’t take that trade, instead it squeezed up to 420. The bell rings and I was like, “Okay, well I’m going to let the first candle form.” The first candle squeezes up to a high of 438. I was like, “Okay, wow. This thing is showing strength” It pulls back, and as it pops back up, I jumped in at 425.

I jumped in with 10,000 shares. I started with 2,500 added 2,500 added … A total of four times, or three times, so I had 10,000 shares and it popped up to 440. Now I was up 1,500 bucks. I was like, “This looks good. I want it to break over 450, sell through 460.” $3-4,000 winner, back of my mind potential on that. I really thought this could have been a good trade because of the daily chart. It had all this room here up to the 200 moving average. 200 moving average being a 719.

Well, in this candle it drops suddenly from 334 and it just starts coming down. As it came down, I started bailing out. I sold 7,500 shares basically break even. I was like, “I need to reduce my risk immediately. Now, this is a big shift away from the way I was trading last week and the way I’ve been trading for quite a while. I get into the habit of where I’m up 1,500 bucks, and it comes down to break even, I don’t sell break even.

I hold because I want it to go back to being a $1,500. It’s really hard for me … It’s much easier for me to sell into strength than to sell break even as it comes back down, because it feels like a loss. Even if it is just break even it feels like a loss. In this case, I was like, “No, just get out. You’ve got a big position, you need to lighten up real quick.” So I scaled back, lightened up real quick. The reason I was more aggressive on my share size on this one, because I really thought it had a lot of potential. I think that that wasn’t wrong, considering how much it had already moved. I was up 1,500 bucks on it, but in any case.

As it came back down I bailed out of 7,500 shares flat, and then I bailed out of 2,500 shares down about $.18. I lost $473 on a total of 10,000 shares, which is only a $.045 loss or 4.7 cent loss. Which is not bad. Relatively speaking, considering the share size, the risk and the loss was very small.

Next trade was MOSY. On MOSY, this one … We’ve traded it several times in the last few days. It’s been good to us. When I saw it hitting the high day scanner and squeezing up, as soon as I saw it I was like, “This is the type that I like. It’s a former runner, it’s made big moves in the last few days, I’ve done well on it. I’m gonna jump in.” As it squeezed up, it squeezed up, it pulled back for a second, and then as it came back up over 185 and 188 I added at 187, and I was looking for the break of $2.

First target was $.13 and my stop was 180, so I had a $.07 stop for a $.13 profit that’s a two to one profit loss ratio. Roughly, just a little under two to one. It goes up to two, pulls back for a second, then it squeezes up to 2.19. All of a sudden it’s 2.19 on the ask and now, I feel like I’m in the drivers seat, I’m just gonna hold it. And I’m just gonna ride this momentum as long as possible. I hold all the way up to a high of 2.34 and then I said, “Look, I am totally in the drivers seat on this trade. I’m up $.40 and this is just … It looks great. I’m gonna hold it right now through this pullback, and hopefully just continue to ride the momentum.”

The one minute micro pullback at 9.39 it pulled back from a high of 34 down to 2.11. A $.23 pullback, which I was a little bit … I start to question whether or not I should have just sold in the 30’s or in the high 20’s, then gotten back in for the first one when it pulled back, because I gave up $.20, I held through a $.20 pullback, which I’m still not totally sure in this case, I’m not sure. I set the mental stop at 2.05. At that point I was like, “If it goes to 2.05, I’m selling and I’m just gonna bail out, because I want to lock up about $.18-$.20 of profit at the least. I would have been disappointed if I ended up having to stop out at 2.05.

Anyways this first candle make a new high, breaks over 23, it was a little heavy at 23, we had the quarter at 2.25, we were able to break over that level, then we got up to 2.38. As we squeezed up through that level, I was selling on the ask and also selling on the bid. Then we did one of these false breakouts where it came back out and I sold the rest at 2.23 as it was coming back down. Overall, it was a good trade. I probably would have made the same amount of money if I had sold the whole thing in this first push, but the first pullback, if it had worked well it could have easily gotten over 2.50 and 2.60. That could have been a much bigger winner. I feel good about the fact that I gave this time. I held it for one, two, three, four, five, six, seven, eight. Like nine, ten minutes roughly. Through that ten minutes I was able to make about 17%.

In fact, today I started this morning, I start with $43,553 dollars in my account, and I’m up $4,200 bucks. A nearly 10% gain today on this account. Those are my first two trades. First on N-U-R-O, NURO. Second on MOSY. Third trade was CLNT.

On CLNT, I know John, who’s in the chatroom as a moderator, he was watching this for the red degree and move over five. I think he may have even gotten in at five and sold on the move up to six. I didn’t get in at that spot, and you can see here how this was sort of tricky because of the fact that it all of a sudden went from five all the way up basically in one candle or three candles. From five right here, all the way up to 5.85 and then the one minute micro pullback. One minute micro pullback, this is where I added for the first candle make a new high. We popped up to a high of 90, we pulled back for a second and as we came back up to 90, I actually …

I took 10,000 shares on this. Now at this point in the day I’m like, “I’m in the drivers seat, I’m doing well. I’m going to put the pedal to the metal.” Sorry, I took 7,500 shares. Then over 90 as we did this little pullback, I added 5,000 shares, because I was thinking I saw a seller at 90. I was like, “As soon as this guy breaks, it’s gonna go to 95, 96, 97, and then anyone who’s short, it’s gonna cover, we’re gonna get the break of 6 dollars, it’s going to go up to 6.10, 6.15, 6.20. That was the back of mind of what would happen.

So, I was like, “You know what? I’m just going to buy more shares. I like this, I think it’s strong, I think it’s going to break out, I think anyone who’s short is gonna get squeezed on it. I’m gonna put the pedal to the metal.” So 12,500 shares was my position, but by that point, I was already up 1,200 bucks. Or 1,500 bucks by the time I was adding. I was already in the drivers seat. I’m in the drivers seat, I’m adding to the position, what’s my risk? My risk is that I stop out of the whole thing, break even. That’s not bad when you’re already up $3,000, because if this had worked with 12,500 shares, and it went and my average was like 77 I think. And it went from 5.90 to 6 to 6.10 to 6.25 to 6.30, that could have been a $6,000 winner and just like that I’m at a $10,000 day.

That’s how you leverage a good day into an amazing day, by being aggressive on that second or third or fourth trade. This one didn’t happen to work out very well, popped up to 95, it was heavy, at that point, I was like, “Okay, I’m in this thing pretty deep. I need to start scaling out and unwinding the position.” And that’s what I started doing. When I saw there was a bid, a 5,000 share bid, boom. I hit the bid. 5,000 shares. And I’m out for 5,000. I see another bid pop up for 4,000 I hit the bid for 4,000. I just kept scaling out, but not until I saw bids, because I don’t want to market out with 12,000 shares. If I do a market order … You don’t want to market order big position like that. So I watched the level two, I wait to see a bid, right now for instance there’s a 3,000 share bid. So I know I can sell to that guy and fill 3,000 shares right at 89, as long as he stays there. That’s what I did. I unwound the position and finished with $859 on the trade.

In total, three trades, two winners, one loser. Accuracy is fine. Prof to loss ratio super solid. My average winners today 4,600 divided by two. $2,300 per winner average, versus a $400 loss, that’s a five to one prof to loss ratio. I can work with that. Or just about five to one. Anyways, that’s about where we’re finishing here for the day.

For me this was a pretty easy day, but I can recognize for a beginner trader, these setups may not have been the most obvious because CLNT was a one minute setup and the five minute setup didn’t end up really being that safe. On MOSY the entry was anticipating the break of $2, so again it was an anticipating trade, getting a little aggressive, and NURO ended up being a big fake out, so if you weren’t able to manage your risk on that, that first trade could have put you right into the red if you happen to take that gap and go trade. Definitely a little bit more … For me a fairly easy day, but a little bit more advanced in terms of the trades that we took.

Yesterday, on GTLX or whatever it was GTXI, that was easy. That was very easy stuff and that was a trade that is a good example of very simple bull flag patterns. Today was a little bit more advanced a little bit more complex in terms of the patterns that we were trading. That’s how it is sometimes depending on your skill level, days like today may be days you want to sit back a little bit and watch a little more rather than trade. Trade in the simulator or reduce your share size to reduce your risk.

Okay, so anyways. Really solid day today. Good job to those of you who were able to make money. I know that obviously this is day trading. Not everyone is going to make money, in fact nine out of ten traders will lose money. My goal is to improve those odds as much as possible, get as many of you as I can on the other side of that profit and loss line, so you’re making money. It’s certainly a challenge. This is a hard job. The market is not forgiving. For those of you who are putting in the time and studying, I know you’re starting to see the rewards.

I saw that today we had about … Students who made money today had about $65,000 in profit, which is good. I want to keep that number moving up. I’m glad to see those of you who have gotten to the other side are doing pretty well. Those of you who are still straggling, want to get you there, got to get you through the classes, make sure you understand the patterns, the strategies, and you’re using the right tools. Okay? Anyway, that’s about it for today, and I will see you all … Well most of you I’ll see first thing tomorrow morning, but students I’ll see you in class at 4 PM. Okay, so that’s it. I’ll see you guys in a little bit. Thanks everyone.

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 then, happy surfing.