Warrior Trading Blog

Ross is Back in Action – Makes Over $1k!

back in action

Ross is Back in Action – Makes Over $1k!


What’s up, everyone? Daddy’s back. Today’s my first day back in the saddle. Finishing the morning up $1,000. Not bad. Today was not the easiest day for me. Number one, I’ve never taken a full week off of trading. Since I’ve started training, I’ve never taken a full week off. So seating down it was kind of like, “What?” Everything just felt a little rusty, a little unfamiliar. So getting myself settled in. My first trade I only took 2,500 shares.

I said, “Let’s start small and if things feel good, I can size up.” I made two cents per share. I made $50. On my second trade, I took 7,500 shares and I made one cent per share. I made like $65. So I’m up $111 in the first five minutes. I’m thinking, “This is not a good start because if any one of those trades had turned into a loser, it probably would have been a $500, $600 loser.” It was inevitable that if I had a loss, that’s what would happen and it happened. I was $900 loss. $950.

So now I’m in the red. Again, I’m like looking at my calendar. I’m like, “This is going to be my eighth red day of the month.” It’s the worst month ever. It’s so frustrating. But I ended up getting myself out of the hole. I dug out slowly with a $200 winner. So I was down only $600. Another $200 winner. So I was down only $400. Then a $1,400 winner and boom, in the green at the daily goal. My work is done.

So we’ll break down all the trades from today in today’s Midday Market Recap. It was a pretty decent day. Not the best. I’m hoping momentum really starts to pick up as we get closer to the end of the month and get into the month of March.

All right. So, let’s see. We’ll break down the trades from this morning. You guys should be able to see my screen share. So first day back at it after what ended up being a long President’s Day vacation for me. Not really much of a vacation. But finishing the morning here $1,058.24, which is certainly not bad at all considering the market we’ve been in. You can see my PNL, green on three names, red on one. I just sort of felt like today the momentum was not easy.

So let’s break it down. First trade of the day NXTD. This was right off our watch list. We were watching it pre-market for a gap and go trade. You can see what happened. It obviously didn’t really go. It was gaping up 55% on news and the bell rang and it sold off. My very first trade was a small position, 2,500 shares. Just trying to kind of test the water and get back at it. So long at $3.27, out at $3.29. I thought in this one minute candle it was doing a little bit of a dip and getting ready to squeeze back up over the open price, but it didn’t. It hit 34 and then it dropped. So out of that at 29.

I then got back in right here for the first one minutes candle to make a new high at $3.17 and sold on the pop up to $3.25, averaging only one cent of profit. I took 7,500 shares and I only made $60 on it. So just wasn’t a big winner there. Those were my first two trades on NXTD. Just a very difficult name. I did trade a couple of other times. You can see I’m at $488 on it. We’ll look at those trades in a second.

So then switched gears, took a trade on MSOY. This one was off the scanners. It popped up and hit the scans. It was also called out pre-market as a possible follow through continuationing. So it had a strong day on Friday, watching for continue strength here on Monday morning. So I jumped in this at $2.00, $2.03, $2.02. But it didn’t really hold up very well. So I ended up getting out of it at $2.04 for one cent profit. It popped up to a high of $2.08. I tried to sell more up there at $2.06. Only partial fills. Sold the rest at $2.02, $2.03. Then I hit the bid and bailed on the rest at $1.89. Tried to sell at $1.95. Didn’t get filled. Sold the rest at $1.89. So only $39.96 of profit on that. So another really just … Nothing. No trade. No real profit on that.

I took a trade on ZN. As soon as I got into it, I regretted it. I didn’t call it out in the chat room. I bought it. I just bought it too high. It was a stupid trade. I got into it right here. Basically top ticking it. I got in at 75. There was a seller at $4.75. It was like a 10,000 share seller. I was looking at this and I was kind of watching this daily level of $4.84. I thought, “Well, if it breaks over $4.84, it might go right up to $2.00 or to $5.00.” So I jumped in and then immediately I just realized that was not a smart move. So I ended up stopping out at $4.56. So I lost $968 on that trade. That was my own fault. I just shouldn’t have gotten in. I should have waited for a pull back. I was just being a little impulsive.

The problem with my first three trades on the two on NXTD and then the third on MOSY is that they were such small winners that they certainly didn’t make up for a regular sized loss. A $900 loss is kind of a regular size loss. A regular size win is $1,000 winner. I didn’t have $1,000 winner. So I went into the red. I was down like $800 on the day.

At that point, I was starting to feel a little bit worried about what this day would become because I already have seven red days for the month of February. It’s the worst month that I’ve had since I’ve really been keeping track. So first really mad month like this in over two years. This would’ve been my eighth red day of the year or of the month, which was not what I was hoping for. So I said, “Well, I’m probably going to close the day red, but I’ll see if I can minimize the damage a little bit.”

So next trade was back in NXTD. I got back in at $3.06 and that was on this candle right here. You can see it’s a red candle. I though that maybe we were going to break out of this little bear flag to the upside. So if I draw this trend line here, you’ll see that we had a little bit of resistance at $3.08. So as I started seeing lots of buyers coming in at $3.05, $3.06. Boom. I press the buy button long 7,500 shares. Sold half at $3.10. Four cents. Small winner. Sold more at $3.10, $3.11 and then stopped out of the rest at $2.99. So you can see here, it popped up. It tapped a high of $3.13 and then it dropped all the way down to $2.90. So it didn’t work. Consolidate sideways. Consolidate sideways.

I then get back in at $3.18, as it starts to squeeze up here. Again, 7,500 shares back in at $3.18 and $3.19, $3.20. Right around there. $3.18 and $3.17. I ended up selling it at $3.20. So I made $206 on that trade. So that got me up to $488, but four trades on NXTD and my winners were two cents, one cent, two cents, and three cents per share, which is kind of pathetic. I mean, it was just like not seeing big moves at all. Just very choppy. Volume on this one is like 20 million shares right now. So just a lot of tug of war, a real battle to make any headway. So I didn’t really do well on that.

Then the last trade was GBR. A total surprise. I thought I was done for the day and I would finish the day down $600. I even said to John L. Ten, who’s a moderator in the chat room. I was like, “Yeah. I’m red today. I’m down $600. It is what it is.” Then GBR hits the scanner at $10.23. Seven minutes before basically my cutoff. I was like, “I’ll trade up 10:30 today. I’m no going to overstay my welcome.” So 10:23 GBR hits. GBR is a familiar name. For anyone who trades small caps, this is a stock that we know because look at what it does. You have these days where it spikes from $1.80 to $2.45. This day, $1.80 to $2.40. We go back a little further, we see $1.40 to $2.22. It’s a stock that pops up. Here’s a day, in twos days from $1.00 to $3.80. So it is a former runner, a stock with a history of making these types of movies. So whenever it hits the scanners, I’m usually pretty quick to jump in.

Now, the first thing I look at is the daily chart. When I looked at this daily chart, I could see that we were above one important line. What line would that be? The 200 exponential moving average. I really wanted to see us above that level and we were certainly above that level. We had no moving average resistance. So that meant that there was really no resistance until maybe $1.80 and then probably until $2.39.

So lots of potential there. In contrast to a stock that hits the scanners and is going to run into the 200. What was the one we had today? Was it NBRX? This one I said, “No good. It’s going to run into the 200 moving average.” See how it did that just exactly. It tapped its head on that $2.10 level and then faded. So that was one that ran into that level. So GBR being above that level is what I wanted to see.

So it hits the scanner at $1.61. Basically as soon as it hit the scanner, boom, I type in assemble, compress shift one. I pressed it four times. Jumped right in. Filled at $2.66, $2.68, $2.70. Added at $1.67, $1.70, $1.82. Added at $1.82 and added again. I sold at 89 and then I added back at 93 and 93. So in fact, high of day was 97. I almost top ticked it with that add, but you never know.

This one I thought if it got over $2.00, $2.05 would be my first target selling maybe some at $2.05, $2.10. If I can hold more of it before I move up to $2.39, $2.40, why not? You never know. You suddenly have a stock that is not in play and then boom, it’s on the scanners. You’ve got tens of thousands of traders all using these same scanners. Now they see it, it comes to their attention, and they’re jumping in.

So you can see here, added in the first move. Sold half right through here at 89 and then added back for the high day break over 93. So I added at 93 and then, of course, this is what was disappointing is that it dropped back down from high of 97 back down to 62. So it just one of those stocks that it traditionally does not hold its levels. It pops up, but usually in the past it’s popped up more than it did today. So today was a little disappointing that I couldn’t get above $2.00. It hit resistance there. But it was definitely worth a stab. So the setup on this was it’s a former runner. Jump in with a 10 cent stop. That’s the entry. It’s get in with a 10 cent stop because this is a good daily chart, a former runner with a history of breaking out.

So with these types of stocks, we just sent 10 cent loss. So my entry at 67, my stop is at 57, right? Obviously it’s riskier to do that. It’s kind of like as a rock climber starting by starting halfway up the mountain, right? But we’re not starting halfway up the wall with no backstop. We’re not starting with no rope. We’re starting with 10 feet of slack. So yeah, we’re up 150 feet or whatever it is, but we got 10 feet of slack.

So if we immediately slip, we’re only going to drop 10 feet and that’s it. You’re not going to drop all the way back down. That’s what you have to do with these. You say, “Well, yes, I’m jumping in while this thing is halfway to the moon or whatever it is, but I’m setting this back stop of whatever it is.” In this case, 10 cents was appropriate for this price range. For more expensive stock, in the $4.00, $5.00 price range, I might set a back stop of 20 to 25 cents because they might dip down 10 and then run another 15 or 20 or 40 or 50, who knows.

Anyways, that’s kind of my approach for trading these types of stocks. They can burn you and it is risky. That’s why I say, especially to beginner traders in the room, wait for the first pull back. Don’t be super, super aggressive about jumping into them, especially on the one minute chart. But for traders that are a little more advanced, have been doing this for a while, this right here was a pretty easy opportunity to get in at 67, 70 range, right as it hit the scanners and sell up here in the 90s.

Me, being a little more aggressive. I even decided to add up here kind of trying to gt maybe a little bit more than just on base, get maybe to second or third really. Maybe get a home run. That sure would have been a nice way to get back at it, but wasn’t able to hold up. Now you see a 74,000 share seller at $1.70, which is a pretty big seller. So, nah, didn’t hold up very well. Isn’t going to go down as the biggest winner of the history of my trading, but it got me on the leader board. Green is good. So I’m happy for that.

Brett, yeah. So to go back to reiterate the pull back set up, let’s look at ACHN. This one was a better example of pull back setup. So this occurred on the five minute time frame. So this is a stock that squeezed up from a low of $3.05 up to a high of $3.33. So a fairly big move. On the one minute chart, if you bought on … Let’s see if it really did any pull back. The only pull back it kind of did was right here around $3.27. But at that point, it was already fairly extended. It was already up quite a lot. So yeah, you could’ve maybe scalped it from $3.27 to $3.33, mind you that’s only six cents. So probably not a lot. It came right back down. So then it fades. It fades. It fades. It pulls back.

Now, the low risk setup that a beginner trader should be looking for would be this bull flag right here. You’re buying the first five minute candle to make a new high, not even the one minute. You’re trading off the five minute chart. So your entry would have been right there at $3.23. Your max loss is the low of that candle, which is $3.19. It’s a four cent stock. So you got a four cent stop and then there’s your profit target, a retest of high day. So that’s a good setup. We like that when they come down and curl off that nine moving average. This pull back up here didn’t really pull back enough in my mind to be a good setup. But yeah, Brett. So that’s what you kind of what to look for.

On ZN, we actually got a decent five minute setup on it. I was just being kind of too aggressive. So you got a little five minute setup. You could’ve taken the trade here. It didn’t work. So you would’ve stopped out. It then pops. It drops. Then it pops back up and right here it pulls back. So now you’ve got a new entry right here from the first candle make a new high. So you’d be back in at 65 and on this one you could’ve sold it up here in the 90s.

So 1,000 shares, that $300. That’s the lower risk way of doing it. It’s a little slower. It’s not as stressful. Stocks like GBR obviously 1,000 shares probably … Yeah, I guess you could’ve made almost $300, but usually we trade larger size. We try to be more aggressive. Get in, get out quick. But just remember to be mindful of where you’re at with your skillset and what risk tolerance you’re comfortable with.

Again, I really encourage you guys to keep an eye on the swing trades because those are even another step back in terms of reducing your risk. I would say the highest risk would be scalping on the one minute chart with 5,000 and 10,000 shares. Now, it’s high risk because it goes the wrong way and you’re going to take a big loss, but it’s also a pretty big reward because when it works, you can have a $30,000 day. A swing trade, you’re stepping back. You’re on the daily chart, things are a little bit slower, it’s more forgiving. You don’t have those big swings. But for a lot of traders, it’s an easier way to make that $500 a week with less stress and while you’re still working full-time.

So anyways, just my two cents there on that. But that’s about it for me today. So finishing the day green. I’ll be back at it tomorrow just trying to dig myself a little bit out of the hole. I had really hoped that I’d be able to close February at least break even, but I’m still down right now around $10,000 on the month. So it’s going to be a little bit of a … It’s just going to be a red month. I mean, it is what it is. I’ll be back at it tomorrow morning. Just try to keep building back up and hopefully we have a good month next month in March.

All right. So that’s it for me. I’ll see all of you guys back here first thing tomorrow morning for the Pre-Market Watch List around 9:00, 9:15.

All right. I’ll see you guys there.

If you’re still watching, you must of really enjoyed that video. So why not subscribe and get email alerts anytime I upload new content. Remember, when you subscribe, you become a member of the Warrior Trading family.