Warrior Trading Blog

Red Day – $10k! Mr. Grinch!

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Red Day – $10k! Mr. Grinch!

 

Quarter to 5:00, but mid-day market recap coming a little late to YouTube today. I had a great recap. I did it on Facebook live earlier today. I usually export it, upload it to YouTube, but the audio was all screwed up for the last five minutes. It sounded really weird. It was bad quality, so I just figured I’d come on here and do mid-day recap live for you guys. I don’t want to a miss a day. I haven’t missed a day this entire year, and I’m not going to start now. We’ve got a couple days left in the year. Let’s break down the stocks that I traded today. I know, it’s a little unusual. You guys aren’t expecting me to go on YouTube live at 5:00, but let’s break it down.

Today was actually a red day. It was my first red day in the past 10 days, so a little bit frustrating. I’ll show you the stocks that I traded. Today, I started the day, as you guys know, when we were doing our pre-market analysis, by not really feeling confident with anything. I wasn’t crazy about really anything. We didn’t have a very good watch list. Now, in the last 11 days since my last red day, I made $77,000.

Let’s put it in perspective. I’m going to show you how red I am today, but let’s put it in perspective first: $77,000 up, and now today’s a red day. How far red did I go? Down $10,000. I know. I feel like a jerk, but seven steps forward, one step back. I guess I can handle that. This is what comes with the territory when you trade with big size. The losses are big. Made 14,000 yesterday. That was a great day. Today, I gave back, well, two-thirds of it.

The disappointing thing is that I gave it back on a really stupid trade, and that’s what upsets me. I don’t mind losing $10,000 when it’s like, yeah, I was following my rules, I got in, I was looking for a good quality set up and … Adam, exactly. Why would I even trade any TE? It’s $29 stock. It was a stupid trade. You’re right, and that’s frustrating. That’s on me. That was my mistake.

We’ll start with looking at LTEA, Long Island Iced Tea. This one was gapping at like 300% this morning. Went from a low of 2.59 all the way up to a high of 15.40. What do you think the news was on this thing? Was it anything to do with crypto currency? Yeah, of course it was. It’s crazy. This is the market that we’re in right now. From three bucks all the way up $15, but the thing is, this came down a lot before the bell.

The bell rings, and I jumped into this for a breakout. I was a little slow in getting in. I considered getting in at like $8, and I hesitated because I wasn’t sure about it. I was like, “Yeah, it came down a lot. I don’t know.” I ended up getting in at $9. 2,500 shares at $9, selling at 9.25, 9.31, and that was a quick $633 within the first two minutes of the day. Not bad, 600 bucks is good.

Next trade was BKYI. This one hit our scanners. I jumped in, and it was kind of a close call because this thing ended up closing the day red. It gapped up. It squeezed up to 2.72, but it didn’t hold that level. It came down fast. With 5,000 shares, I was, I think, lucky to only lose $427 on it. Oh, and I’ll update … Yeah, this is our Thursday Mid, well, I’ll just change it to, well, Thursday Mid-Day Recap. I don’t know if this updates in the middle of a stream. Let’s see. Thursday. Yeah. We’ll see. We’ll see if it updates, but anyways.

Let’s see. BKYI, yeah, barely got out with only $400 loss. That was a close one. After that, next trade was SAEX. Hits the scanners, and what happens? Same thing again. I jumped in at 1.74, 1.84, added at 2.08. I thought it was going to keep going higher. It hit 2.20, and then dropped all the way down. I stopped at 2.76. I lost 2,000 bucks on it, so that was frustrating. At that point, I’m in the red, and I’m down like, whatever, 2,200 bucks or something, or 1,800 bucks.

At that point, I was like, okay, let’s look for a good quality setup, and I really regret getting into any TE where I did. I took 3,000 shares at 32.86, and what I’m going to do is I’m going to show you the one-second chart on this. It was a stupid trade because I got into it thinking, oh, well, LFIN was so strong yesterday, or the other day. This thing, if it breaks pre-market highs, it could go to 40 bucks. I mean, it could really open up. I kind of had this bias that because LFIN was so strong, this one might be that strong also, and that was not really a logical thing because LFIN was just outrageously strong, and there’s no way that this one would be that strong. It just didn’t make sense.

I jumped in it as it was squeezing up. It pulled back for a second. It pulled back on the one-second chart right here at 32.86, so that’s why I got in where I got in. 32.89, 32.99 for the break of 33. Target was high a day. I got in. It hits 33.51. I’m like, all right, looking good. Next stop, 34. That’s one second, two, three, four seconds, and then five seconds later, it dropped to 32.31, and I was down .70 cents with 3,000 shares.

I was like, whoa, that happened really quick. Let me give this a second to pop back up. Five seconds later, on the ask is 32.80, so I’m almost break even on the ask. I thought, okay, I’m almost break even. I’ll give it a second to pop back up. That’s on the ask. Then on the bid, it drops down to 31.50, and now I’m down four grand, and I’m like, oh my god. This is getting bad. I don’t know what to do. I obviously shouldn’t even have gotten in the trade. Now I’m kind of stuck. Let me give it a second. I’ll wait for the first one-minute candle. We’ll make a new high.

I’m holding it, waiting for the first one-minute candle, make a new high, and boom, that happens right here. We pop back up to 32.64, so I’m only down .20 cents on the ask. I’m like, okay, maybe this’ll work, and then all the way back down to 30.50, so I was like, okay, all right, just give it a second. It’s still consolidating. It still looks good. Now it’s not looking so great. Oh my god. Now it’s looking really bad, and this is where I stopped out. Right here as it broke down.

3,000 shares, losing three and a half points is $11,000. It sucks to lose that much money on a trade like this because the spreads are so big, and I’m not good at trading them. I’m a deer in the headlights. I just am looking at the spreads, and I’m not managing my risk properly. I’m just, overall, disappointed in myself that I let FOMO, I gave into FOMO. I did. I jumped into it way too high. It’s my own fault, 100%, so I gotta deal with that loss. It’s $11,000 loss.

I then got into MTSL, and this one’s annoying because I made $8,000 on it, and then I lost five grand. On this one, I jumped in with 10,000 shares at 3.50. It squeezed all the way up to 3.49, and I sold it. I was up 8,000 bucks. It then pulls back for a second, and I thought it was going to go back up to the highs, I’ll do a 10-second chart on this one, and then I lost five grand. I was like, you know what? Today is just not my day. I’m not feeling it. I’m just going to back out and be done for the day, so I finished the day down 10 grand.

This was the spot here. I got back in right here. Let me scroll down. I got back at 4.39 and 4.40 because I thought right here, I’m like, okay, it looks like it’s going to break over 4.43. It hits 4.49, and one, two, three candles later, 30 seconds later, it’s down 3.56. I had to stop out, and I stopped out in this candle as it was dropping. I got filled at 4 and 3.70 and 3.67, 3.75. At that point, I was like, you know what, whatever. I’m done.

I made $14,000 yesterday, lost 10 grand today. Net is $4,000. I’m sitting on the week up $20,000, so I’m not going to say that I’ve had a bad week, because I haven’t had a bad week. I’ve had a great week. I just got a little too aggressive.

NXTD, Joe, is a great question. NXTD came up, and I was watching that one for a possible trade, but the thing is, I was looking at it, and I was like, the volume … Well, first of all, by the time I, I took a minute to just decompress after the big loss, and so by the time I was back and ready to trade, it was already about to get halted at $6, so I was like, okay, well … Oh, sorry, it was getting halted at 5.50, and I was like, well, you know what? I’m down so much. Maybe I shouldn’t take another trade because I just screwed up MTSL. I screwed up SAEX. BKYI wasn’t good, and NET wasn’t good, so I’m kind of zero for, one for six or one for five.

I see it resume, and it just starts squeezing up right away. It goes from 5.50 all the way to 6, and I was like, ugh, well, I’m not going to buy it after the second halt because now I’d be giving into FOMO, so now I just gotta wait. It hits 6.74, and then it pulls back. It’s pulling back here, and I said, “Okay guys, watch it over 6.50.” I had the order at 6.50. I watched it. It came up here. It tapped 6.50, and then look what happened. It broke and squeezed all the way to 8.50. I just, I was, my problem with this is the volume today was 68 million shares of volume. I’m not really, really good when stocks have that much volume at reading the level two. It’s kind of the same for me as trying to read the level two of a higher price stock, the 30, $40 stocks. It just jumps around so much.

I was looking at the level two on it, and I was seeing a lot of 30,000 share sellers, really big sellers, and I thought, I don’t know, I can’t, I don’t feel comfortable getting in. It looks like a big seller, and then boom, it was gone, which makes sense because you got 68 million shares of volume. I keep seeing these big sellers, and then they would break, and I, so it started getting faked out, and then next thing I know, it’s up at 7.25. It drops all the way to 6.93, pops back up, and it just felt like, at that point, I was chasing it, and I just, I should just leave it alone.

This was the strongest one today. It was the strongest stock, and I traded five stocks, and none of the other five were as good as this one. It just, I kind of, I used up all of my mental capacity to be disciplined and be a good trader on the first six trades, and so by the time this one came along, I was just kind of frustrated and worn out, and I just, I passed on it.

Being down 13, 14,000, and then recovering to being down only 10 is good, I guess. I recovered some of the loss. I was down only five, but then I lost another five. Tomorrow is just back to the drawing board. Goal would be 500 to a thousand dollars. It’s not to try to make back everything from today. It’s just to try to be a good trader. I can tell you, I will not be trading a stock that’s $40 a share or $30 a share. I’m just not going to do it. I need to stay focused on my rules, and my rules are: be aggressive on stocks under $10. 10 to 15 and 20 is sometimes okay, and above that, I have to be really careful, and today, I was just too aggressive. This is a reminder of why I have to be so careful. I’m not good at managing risk on these really high price ones. I just have a tendency of being a deer in the headlights when they start to go the wrong way.

That’s on me. I would say, for sure, that, let’s see, I would say for sure that today’s the day that is a little bit of a reminder to stay focused, not be too aggressive, and I’ll get back at it. First thing tomorrow morning, hopefully we’ll see some good opportunities, and I’ll be able to build it back up, but I’m still in great shape on the week. Still in great shape on the month. I was up $78,000. Now, I’m up like $68,000 or whatever it is. All of that is fine. I’m not going to beat myself up. It’s easy to get bummed out when you have a red day, because when we have green days, we just feel like, well, yeah, this is what I’m supposed to be doing. I’m supposed to be making money every day. I’m a trader. When we have red days, that’s when it feels like, what’s the matter with me? Why am I having a big red day?

Anyways, the PML for me, Ross, on this side, 68,000. Mike is at 24,000. John, 36,000. Super solid, really consistent. A little slow at the beginning of the month, but this is the way it is. I’m kind of the biggest winner and the biggest loser of this month with that big red day, but that’s all right. It’s what comes with the territory when you’re aggressive. I wish that I could say that I’ll never have another $10,000 losing day again, but I know that’s not realistic because when you’re an aggressive trader and you’re trying to really build up the profits, you’re going to make mistakes, you’re going to have accidents. It’s just, it’s inevitable. It’s like saying I’m never going to fall when I go skiing again. If I never fall when I go skiing again, it means I’m not pushing it. I’m not trying to test my limits. If you don’t test your limits, you don’t become a better trader, you don’t become a better skier.

It’s not something that you should beat yourself up for. This is a loss, but what I gave is a lesson, and it’s just a reminder to be disciplined, focus on the quality setups, stay in my wheelhouse of price range, and tomorrow’s a new day.

We’re back at it first thing tomorrow morning. We finish up the week, and we’ve got five days left in the year, so let’s just try to finish the year in good shape. Hey, if I can make back the 10 grand in the next five days, that would be terrific. If not, it’s no big deal. I’ll make it back in January.

That’s about it for me, and I will see all of you first thing tomorrow morning. We’ll do our pre-market analysis at 9:00 a.m., and I hope you guys are all there for it. That’s about it for me today. I’ll see you all first thing tomorrow morning. Bye guys.