Warrior Trading Blog

2nd Red Day Recap for July! -$1,256 on $DRYS $ELTK and $GNCA

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2nd Red Day Recap for July! -$1,256 on $DRYS $ELTK and $GNCA

 

 

 

All right, time for our mid-day market recap. We’ll go over the trades from today. Go get my calendar out. Today is the … I think it’s 135th trading day of the year. Let’s see, here’s my calendar. Yeah, 135th. I missed a day on Friday. I was flying to San Francisco. I’m going to be here for a couple weeks. Let’s see. On Friday, I missed a couple trades. I missed a good opportunity on TEAR, T-E-A-R; which would have been nice, but just obviously out of the office. What can you do?

Also missed DRYS. That squeeze up from whatever it was, 220 up to 380, and then back down. I knew that there was some momentum in the market, which is fantastic. I wasn’t able to capitalize on it, but I always love to see that we have those opportunities. I figured here on Monday, we would see some continuation on those names.

DRYS and TEAR were both on my watch this morning for continuation. Then fresh momentum stocks today we had GNCA. That was really the only one. Today didn’t have a very impressive watch list. This is going to be my second red day of the month, which is a little disappointing; but keeping stops tight, which is important. You can see here my P&L for the day. In total, I took four trades today. I was red on three out of the four.

Basically today was just a day where I wasn’t having … I wasn’t seeing really good follow-through. I had one decent trade on TEAR, a continuation trade; made 555 bucks on it. This would have been a great day if I had just left DRYS alone, basically. I should have left it alone because I was in the green today. Then, I took a couple trades on that, and that’s what dropped me down into the red.

Let’s see, our first trade of the day was on GNCA. Now, this one was not a very easy stock to trade. I jumped in it at … Let’s see, it was on the first one minute candle, basically right as the market open. We started to pop up. I jumped in at 65, 565. We pop up to a high of 569. I wanted it to break over 575, which was this pre-market pivot that I was kind of had my eye on. I thought if it could break over 575, then we would have a good chance of it moving back up to pre-market highs, which was 599. There for those of you on Facebook, you can see my P&L today.

Also, those of you on Facebook, you can make sure you leave comments. I’ll come back through later in the day and respond to them. You can see I have the P&L there. GNCA, got in with 5,000 shares at 64, pops up to 69, starts to turn around. I stopped out at 63. I lost $54, which was not bad. Kept that loss really tight, which was good because it ended up dropping all the way down to 36. If I had held through that whole drop, I would have lost like 1200 bucks. Stopped out of that quickly, which was the right move.

Immediately, whenever my first trade of the day is red or it’s kind of a false break-out, it makes me a little cautious because I’m like, “Okay, this … Usually, I expect to have my first trade be a green trade, not a red trade, and not a break even trade.” Right away, I was a little cautious.

Next trade was on TEAR. This one starts to pop up here right out of the gates, as you can see. Squeezed up to a high of 315. It pulled back for a second. As it pulled back and then started to curl back up, I got in 5,000 shares at 307. It pops up to a high of 322. I sold as it came back down, and averaged about 10 cents of profit, so 555 dollars. At that point, I was up like 500 bucks on the day.

I was like, “All right, not bad.” Decent trade there. Continuation set-up. Hit the scanners, started to pop-up, just jumped in on the first pull-back thinking we would get a little squeeze, which we did. That was my one winner today.

Third trade was ELTK. This one is sort of embarrassing because I got in this at … 117. It starts to hit the high of the day scanner. It’s squeezing up, squeezing through a 70, 80, 90, a dollar. Pulling back here, one minute micro pull-back. This is where I got in, right at the one minute micro pull-back. First candle to make a new high was 115, or 116. I got filled at 118. It pops up to a high of 124 and then you can see on this candle, the high was 124 and the close was 118. It popped up and then it started to come back down.

I was like, “You know what? Maybe I should just get out of this. I’m not really feeling it. I’m not sure about it.” I try to bail out and I ended up getting filled at 115. I was instantly down 70 bucks on it. I was surprised because I thought the bid was 120. I thought I would just grab a small profit on it, two cents, and maybe reposition for the next trade. It obviously stopped me out, or I got filled on market order, kind of the low side, bad luck. It happens. Luck of the draw. It pops back up.

I’m like, “Okay, it’s at 24. I’m going to try and sell on the ask.” My orders kept getting rejected. I was holding 1250 shares, and my orders were getting rejected. I was like, “Okay, am I going to have to call my broker? What’s going on? Why is my order not going through?” I just changed the route. The order ended up executing and filling at 118, break even. I ended up losing 50 bucks on it. Then it finally broke over 124, 125. It squeezes up to 130, 132, and then it gets halted on circuit breaker. Re-opens, and squeezes up to 145. From an entry of 118, it went up to 145. I just somehow managed to totally screw up that trade. That is, again, the luck of the draw. It happens sometimes. That’s fine, not a big deal. Small loss in any case.

Next trade was ELTK. Or sorry, it was DRYS. DRYS, this one, like I said, I should have just left it alone. First trade on it. Actually, I traded this three times. I did have one winner, so I had two winners today. First trade was an entry right here at 68. I got in at 68. It pops up to a high of 82. Pulls back, I end up stopping out at 71, for 90 dollars profit. A very small profit on that.

Then, it surges back up and I was like, “Okay, this thing’s showing a lot of strength.” I jumped in at 95, which was obviously you can see on this one minute, very extended. It wasn’t a very good set-up. I was looking for the break of the whole dollar. I was getting in because we were at the whole dollar. I thought we would pop over 95, over three dollars, 305, 310, and we would squeeze up a little bit. Pre-market high was three dollars. What ended up happening is we doubled tops at that level, and we pulled back down. As it came back down, I stopped out at 75. I had to. 20 cents, stop, 5,000 shares, it’s a thousand bucks.

Disappointing for sure, because I got in this too high. I had a good entry, and then I sold it. I got back in at the wrong place. I was being a little aggressive on another stock. That entry of 95 might have worked, and I might have been able to sell at 305, 310, 315, as shorts start to cover over the whole dollar; which is what I thought would happen. On that one, I was wrong.

Then I’m like, “Okay, I’ll wait for a five minute set-up. It’s pulling back, pulling back. So now first five minute candle to make a new high as my entry. That’s the spot I’m watching.” You can see … Where was it? Oh, it was right here at 68. This was a definite false break-out. I got in here at 68, 268, anticipating on this red candle that it would break over the high here of 273; and we would have the first five minute candle making a new high. We would get a move probably up into the 80s, maybe the 90s. I wasn’t sure we would go all the way back to the highs, but that we would pop up. I got in here at 68. It pops up to 73. It looks good. Then, it drops here really quickly down to 51. As it came back down, I stopped out. I lost another 700 bucks.

That’s the point where I was like, “Okay, throw in the towel. A little over 1,000 dollars on the day. That’s my max loss and I’m done.” 135th trading day of the year, down 1,286 dollars. I was up about 500 at my high today, and then obviously gave back some profits. A little bit disappointing, but at the same time, it’s only my second red day of the month, number one. Number two, for the most part, I kept the stops pretty tight. It’s not a big set-back by any means. On Thursday, I made 1300 dollars. I gave back one day of profit, basically. That’s fine. One step forward, one step back. I’ll be back at first thing tomorrow morning.

All right, so that’s the game plan here. No more trades for me today. Coming up towards 11:00 a.m., as we get into the lunch hour, things are going to slow down even more. I didn’t see clear momentum today. I didn’t see really good opportunities. I’m totally happy just to throw in the towel and come back first thing tomorrow morning, ready to hopefully find some good opportunities.

Okay, so that’s it for today. Those of you that have questions, you can throw them in the chat room. Those of you watching on YouTube or Facebook, put questions in the comments and I’ll come back and answer them a little bit later today.

Hey, I didn’t see you there. Well, 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 any time I go live or upload new videos. Until then, happy surfing.