Warrior Trading Blog

Progress is Being Made +$3K! | Ross’ Trade Recap

What’s up, everyone? All right. So, mission accomplished. Third green day in a row, same as last week. Green Monday, Tuesday, Wednesday, another $3,000 of profit today, so that feels good.

Today’s a day where I was actually up about $3,200 and gave back a little bit off the top. Remember what I always say, you’re either giving back a little profit or you’re leaving money on the table, and today’s a day where I gave back a little bit off the top on ATAI, but green is good. I’m happy with that. Another green day. Progress is being made.

Today during the recap we are going to talk about where I’m at on the month, where I’m at on the year, and where I’m at relative to the $583 to $1 million mark. I’m trying to keep it where it’s not in my focus, but I do give you guys some updates during the recap. So, as usual, any questions, any comments, leave them below, and we’ll be back at it first thing tomorrow morning, 9:15, for a pre-market analysis. All right, see you guys in the morning.

All right, everyone. We’re going to break down the trades from this morning. This is the third big green day of the week. I keep looking for my calendar. It’s such a habit, but of course, there’s nothing on it. I still want to hold it. Even though they’re nothing on it, I still want to hold it. Third green day of the week, which is great. Last week I was green Monday, Tuesday, Wednesday, had small red days on Thursday and Friday, but then back in the green Monday, Tuesday, here on Wednesday, so that’s good. I’m certainly happy with that. Six green days this month, and I would love to finish up the week with two more green days on Thursday and Friday. Obviously, the momentum needs to keep up.

What is very interesting here in the last two days, yesterday and today, is that the momentum has been predominantly on lower-priced stocks. Yesterday we had ATAI, which made this big move from $1.18 all the way up to $2.50, and then this morning we got another opportunity on it. The trade that I took here was right through this move. You can see from $2.60 up to a high of $3.09, and I booked, well, $1,400 of profit on it, which is solid. I actually made about $1,800 and then gave back about $400 or $500 on my second to last trade on it.

But, in any case, green on ATAI. INPX this morning, top of the gap scanner, was gapping up 60% on over a million shares of volume with news. Low-priced stock at $1.50. Got some good trades on this one, riding the momentum up to a high of $1.78. $1,400 on that one. So, right there, there’s $2,800 of profit.

CCNI, I took two trades on it. The first trade I took I lost on, and then the second trade I took I also lost on, so this one just, I don’t know. It’s lighter volume. My first trade, I got in up here thinking it was breaking over $5.80, which was yesterday’s highs. That was a good sign of strength, so I got in at, I think, $5.73. It hit a high of $5.91, but then dropped back down to $5.56, and I took a $60 loss on it.

I then got back in right here, because on the five-minute chart I saw that if it broke over this level, I thought that that looked good, so I got back in there but immediately stopped out of that with a $400 loss, or a $420 loss. So, down $487 on CCNI on two losses. All things considered, those were small losses. Not a big deal.

And then SFET, a small winner there of $700. Buying this little pullback right here with 6,000 shares, we had a high of 75, then it popped up to $3.90. I jumped in at about $3.73, anticipating the break over $3.75 and was selling at $3.83, $3.85, $3.88, topped at $3.90, dropped down and … Well, now it’s consolidating and pulling back.

This one actually did a really nice cup and handle formation. What we often see when stocks just dip down quickly and then surge back up is they create this cup formation, this double top, and it’s hard to buy a stock right here and expect it’s just going to keep going higher. Usually what we need is a period of consolidation, and that’s exactly what we got.

I know some of you guys jumped in this right here around $3.30, and so for you guys, you actually got like a full 60-cent move, which is awesome. I only really captured the top of the move, but hey, it was still enough to make $700, and that was at around 10:30 this morning. At that point I was already kind of slowing down, reducing my risk and not wanting to be super aggressive.

Now let’s go back to INPX. This is the one that I traded right out of the gates. On this one, as you can see, we’ve got the pre-market price action moving higher, moving higher, and opening … The pre-market high was $1.46, and the stock opened at $1.43. So, it opened three cents below the pre-market high, and it’s actually … I’m going to put this up on the level two just to keep an eye on … We know $1.78 is the high of the day, so maybe a spot to watch.

Anyways, the bell rings on this, and in the first one-minute candle, you can see it pops here up to a high of $1.60, and on this one I was pretty quick to jump in. I took my position right here. These are all scalp trades. In with 9,000 shares at 45, 46, and 47, selling half at 50, another half at 54, another quarter at 55, the rest at 49. Boom, that’s trade right there is $400 in the first 15 seconds of the market, so that’s a quarter of the way to my $2,000 daily goal.

And then I got back in at 57 and 53, anticipating the break over the highs right here. A little one-minute pullback, we hit a high of 68. I’m selling at 65, 65, and 63. That one I only took 6,000 shares because I thought it was a little riskier, but another $400 or $500 of profit, so ended up finishing there, I think I was up like $800.

And then I have another trade right here, in at 64, 6,000 shares, and that was right here. And then I stopped out as it dropped back down here and lost, well, about $500. So, I went from up $900 to back up only $450. That was my first loss. And then I got back in at 55, 55, 53, right here, and the move up to 62, it was selling half at 60, 60, and 58. So, a little scalp there taking some profit. This is a CCNI trade, which whatever, not really a big deal.

ATAI, this one I take my starter at 55, 55, 57. End up stopping out of it at 54 and 54 for like a $130 loss. That was my very first trade on ATAI. I’ll pull that one up real quick. That was when I was going for the break, right here. The first attempt didn’t work, so I had to get back in for a second try.

Back to INPX, 9:42 a.m. Look at this one. At 9:42 I jump back in it right here. As you can see, it’s starting to open up, so I’m jumping back in and trying to ride the momentum as it’s moving higher. I’m back in at 60 with 9,000 shares, selling half 62, 61. That’s like a break-even trade. Back in at 63, 64, selling at 71. That’s a little nicer, so a little more profit on that one, and then back in at 69, out at 74.

What you’ll see is that stocks like this, the tricky thing is that you’re only getting five, eight-cent winners. The winners are all really small because it’s a cheap stock. I mean, to get a full 10-cent win is like getting an 8% move in the stock, and it just doesn’t happen really easily. Lots of small winners add up. Right? And the reason that my winners are bigger, of course, is because I am taking 9,000 shares, but there’s no reason you can’t. This has 36 million shares of volume today. ATAI has 18 million shares of volume today. SFET has got three million shares. But these were the ones that had a lot of volume, so you could easily get in and get out with 9,000 shares. That’s not an issue at all.

If you can prove your profitable with 500 shares, then there’s no reason you won’t do well going up to 5,000, for instance. One of the things that beginner traders sometimes struggle with is they say, “Well, I’m only trading with 200 shares,” or “I’m only trading with 500 shares, so it’s not worth it for me to sell when I’m only up four cents because that’s only like $20,” and when you add the commission of $4 to buy and $4 to sell, you’ve only made $12. Right?

The problem with that mentality is that then they start thinking, “Well, I got to hold these longer for the bigger move,” and on some of these stocks, they’re just going to get chopped out. And in a move like right here, where with 9,000 shares I booked $400, they’re saying, “No, I’m not going to sell it. I’m going to hold,” and then it ends up going down 15, 20, 30 cents.

I really try to encourage students to focus on how much you’re making before commissions, because commissions, when you’re trading with 200 and 500 shares, they’re always going to be a disproportionate percentage of your gains. But if you can be profitable with 200 or 500 shares before commissions, then you’re proving that your strategy works, and then all you need to do is slowly gain the confidence over the period of a few weeks, increasing 100 shares a week, until next thing you know, you’re trading 1,500 shares and you’re making $150, $200, $300 a day.

If you really are like, “Well, I’m only ever going to trade with 500 shares. I’m never going to trade with more than that,” well then you probably wouldn’t even trade a stock like this, because the reality is this stock went from $1.46 to $1.78. With 500 shares total, that’s only about 150 bucks if you got the exact best entry and the exact best exit, so to focus on this might not be worth it.

A stock like SFET, man, well, for 500 shares there, from $3.30 to $3.90, that you can work with. That’s 60 cents. That’s 300 bucks. So, there’s a little bit more there, but … Well, I guess that would be with 1,000 shares, but in any case, I think sort of the question is what type of trader do you want to be, and if you want to be an aggressive scalp trader, where you’re getting in, you’re getting your profit, you’re getting back out, you’re going to need to size up.

And so, what I encourage you guys to do is to look at all your metrics, your accuracy, your profit/loss ratio, before commissions. And then add in commissions. So, for the first couple months when you’re trading with small size, if you’re like, “Man, I’m actually breaking even, or I’m even losing money after commissions,” that doesn’t really matter in those first few months because you’re still in training. It’s still practice.

Once you start sizing up and taking bigger positions, then commissions become a smaller and smaller percentage of your gains. And again, today’s a day where my commissions will be, I’m sure, over $500 because of how much I traded, but with $3,000 of profit, I’m not going to really complain too much. I mean, it’s just the cost of doing business, and for me it’s still worth it. It justifies itself.

Another day here of some decent momentum. Interesting that it’s mostly on these lower-priced names. These are ones that I don’t love, because I don’t usually hit home runs on them. These aren’t usually the type of stocks that I would have 10, 15, $20,000 winners on. They’re more just kind of grinding and a lot of commissions. Hey, I’ll take the profit. I’ll take what I can get, but if could choose, I would much prefer stocks like SFET to be the ones with momentum because they are more likely to make 20, 30, 40-cent breakouts, and with 9,000 shares, that’s 2, 3, $4,000 of breakout instead of like $400 per breakout. All right?

Let’s see. What was I going to look at? Oh, yeah. I was going to take a quick look at profitability on the month. I haven’t been looking too closely at it because I haven’t been wanting to be super worried about where I stand, but we’ll just take a quick look here and see where we’re at.

Right now, it’s April 10th, and it looks like I’m up just about $20,000 on the month, which is good. That’s something that I can feel pretty good about. That’s a nice little start to the month. And since the bottom of my red streak, it looks like I’m up about $23,000. So, digging my way out one day at a time. Green is good.

I’m not going to look at where I’m at relative to the million dollar challenge because that’s not really important to me right now. What’s important is just coming in here each day and having green days. Any day where I break the daily goal is a good day.

My daily average … Yeah, let me get that for you. Let’s see. March 29th was the 59th day of the year, so 59, 60, 61, 65, 66, 67. Today is the 67th day of the year, and I am averaging right now, let’s see, $1,959 per day, which is a little less than I averaged last year. Last year I was averaging $2,058 per day. I had a great average of like $3,000 a day. Actually, it was even higher than that, but obviously that red streak really brought down my average quite a bit.

So, $2,000 is still the daily goal. $2,000 was the daily average for all of the 236 days in 2018, which is why I finished with half a million dollars in profit, and I guess right now I’m sitting at about $131,000 on the year. And, I guess, since I’m looking at it, I’m at $966,000 in the million dollar challenge, which puts me $33,000 away from the goal. So, whatever. Again, I don’t really want to dwell on that too much. It’s not really the biggest deal right now. The most important thing is that I’m just continuing to have good, solid green days, making progress, and as long as I keep doing that, this is going to be a great month.

You know, being up $20,000 on April 10th, we still have … Well, let’s see. This is two, four, six, this is the eighth day of the month, and we still have two, four, six, eight, 10, 11, 12, 13 days left, and that’s keeping in mind that the market’s closed on Good Friday, the 19th. So, 13 days left. If I can keep up the average, this will be a good month. I just got to make sure that if I have red days, that those red days are small, that I don’t have days where I end up giving back 4, 5, 6, $7,000 because that’s going to eat up three totally decent days like today.

Trying to follow the rules, stay focused, and ultimately that will get me to where I need to be. All right, so that’s it for me. I will see you guys all first thing tomorrow morning, 9:15, for pre-market analysis. All right, enjoy the rest of the day, and I’ll see you guys all first thing tomorrow morning.

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