Warrior Trading Blog

A Dud of A Trading Day -$32 | Ross’ Trade Recap

ross recap 7/24/18

What’s up everyone? All right, so here we are Monday morning. Monday’s are our favorite day of the week as day traders. Usually, Monday’s are really hot. But today, it was a dud. There was just nothing happening in the market. I made a total of minus $32. So, I lost $32 today. I came in, was looking for some good opportunities, just didn’t see much moving.

 

I think I had six trades? Five or six trades, and really, none of them were big winners. The biggest loser was only $945, so I didn’t have any blow out losses, which his awesome, but the biggest winner was only $1,300, and I just had a lot of small wins, and small losses. That doesn’t give you a lot of profit.

So, a little bit of a slow start to the week here. Thursday was slow. Friday was slow. Monday’s slow, so now we’re three days into a little bit of a slow period, and I’ve got to reduce my share size for, I don’t know, the foreseeable future, until things start to open up, because right now, even if I see an A quality set up, something that looks awesome, the reality is, it’s not an A quality set up when the market is choppy. Because I just can’t count on it having a big follow through, and really opening up.

So, I just can’t take 15, 20,000 shares for maybe a couple days until we see that next stock that squeezes up and goes 100% or 200%. Once we see it, I’ll jump on the momentum, but until then, I’m gonna trade smart, reduce the size, and just try to grind until things start to open up again.

We’ll break down all of today’s trades and today’s mid-day market cap, as usual, if you have any questions, any comments, leave them below and we’ll answer them later.

Alright, enjoy.

All right, what’s up everyone, so, we’re gonna go over the trades from today. A little bit of a slow day. You know, I was hoping that we would come in here, Monday morning and have lots of volatility, and some really great opportunities and that just didn’t end up being the case. You know, Thursday was a very slow day, didn’t make a lot Friday. Another very slow day. And now, here Monday, I’m down $32 on the day.

So, it’s kind of like whatever, no big deal. It’s a red day, but not by much. But, it’s kind of a bummer, because you can see I took seven trades. Green on four out of the seven, but you know, just wasn’t enough green to really make a profit.

Basically, what I’d say about all these six trades, all of these were losers. Yes, these three on the top are winners, but to me, these were not winning trades. They didn’t work out well. So, these just, they were small winners, but they just as easily could have been losers. So, these were six trades that didn’t work out well and then I had one trade that was so-so. $1,300 is so-so. Basically, one out of six trades today, or one out of seven was a so-so trade. That was the best we could get. That’s the kind of market that we’ve been in the last three days.

Now, the good news is, I’m keeping the losses small. Down $32 is not a big deal. Doesn’t matter. I’m still sitting up $40,000 on the month. I’m in really good shape and I’m playing it smart. I’m not being super aggressive on share size. This isn’t the right time to be aggressive. I’m taking it slow, and a couple winners, a couple losers, but nothing that I’m gonna get bent out of shape about.

This is the wrong time of year, or the wrong time of the week, the month, to start to be really aggressive. This is not the time to risk with 20,000 share positions. Yeah, I could get a home run, but the way trading has been the last three days, it is much more likely that I’ll strike out and have a big loser. And I can’t afford … I can afford it, but I don’t want it. Play it smart today and trade with small share sizes.

One of the things I said earlier is that today is tough, because if I saw a stock like FAMI, I saw this one spiking up, you see I lost $500 on it. I jumped into it as it was spiking up at $4.38. So it spikes up here, hits the scanners, and I jump right in. It opens and squeezes up to a high of $4.69, and it didn’t hold that level and it came back down. In a strong market, I would have jumped on this with 15,000 shares. I would have jumped on it, because I would have known, in a strong market, there’s a good chance this thing would have gone to $5. But, because this was a good quality set up, just based on the fact that it was hitting the scanners and it was squeezing up.

But, a good quality set up, in the context of a day where the market’s choppy or slow, is not worth taking 15,000 shares. And that’s what’s really hard for a lot of traders, including myself to really grasp. Because I feel like, “Geeze, it looks good, it looks like I can go, I should take big size.” I have to remind myself that today is not a day that I’m allowed to be aggressive.

I’m not allowed to be aggressive because the market just, for me, isn’t that strong. It’s indicated by the fact that I only made $500 on Friday. Only made $800 on Thursday. So the last three days have been slow. That means the smart thing to do is to trade with lighter volume, until we see a stock really start to open up.

Now, if this had popped up to $4.70, pulled back, and then squeezed back through the highs and got up to $4.90, and $5, then, it’s proving strength, and it might be worth starting to be aggressive on. But, until we see stock do more than just pop up, we need to see something pop up and continue. Until we see that, can’t trade a big size. Have to be just a little bit conservative.

I’ve got my share size, let’s see, trading, warnings, 7,500 shares right here, that’s my max position size. I’m gonna keep it here for tomorrow, because there’s really no reason to go heavier than that right now. Even with 7,500 shares on my very first trade on BRN, I immediately lost almost $1,000.

Today’s a day that started just like any other, with the gap scanner pre-market. Our pre-market gappers today, there were two that we were watching. DDE, and BRN. BRN I didn’t like a lot, because it had sold off pre-market. But I said, “If it can squeeze up, I’d be willing to jump in.” So, the bell rings, it squeezes up, and it was squeezed up just enough for me to get excited and jump in, then look what happened. I got in up here at $2.40, and it immediately dropped down to $2.15. A total rejection.

So, you know, right away I’m down $1,000 to start the morning. Took a second trade that was on CHFS. I jumped into this off the scanner, I think 7,500 shares as well, it pops up, and drops right back down. Now, I’m down $1,500 on two trades. I’m like, “All right, if I have a third loser in a row, I’m done for the day.” Then I started getting a couple small winners. Small winner on DDE, a small winner on LBIX, a small winner on TTRV. Not a lot, but enough to recover some of the losses. Then I got this nice winner on CETX.

I was able to get myself pretty much out of the hole, not 100%, but in pretty good shape. The biggest regret today, was on DDD, I was watching this right here, during this flat top break out. So, the flat top break out’s forming, right here. I have more order ready at 25, and I’m watching it. I move my mouse, I had my hand right on … What’s going on here? I had my hand right on the button right here, I moved my mouse away, and then I bring it back, and by the time I brought it back, it had already popped up. It broke from $3.25 all the way up to $3.45, and then $3.50. 25 cents, almost instantly.

So, with 7,500 shares, that could have been a $1,500 winner. That would have been awesome. But, you know, the luck of the draw. I just … I was too slow, and so I missed that trade, and that was probably the cleanest trade of the entire day.

RETA, this one, this is a higher priced stock. Nice range on it, it’s not something I would typically trade from $50 all the way up to $75. That’s a nice, that’s an awesome range for a stock at this price range. But, by the time I saw it, it was already 10:30, 11:00, and I felt like, being down $32 this is … Hey, I recovered most of the loss, so I’ll be back at it tomorrow. I’m not gonna push my luck trading something out of my price range. That’s just asking for trouble.

So, followed the rules, traded pretty safe, traded with smaller size, and you know, I’m gonna finish the day down $32, but you know, live to trade another day. Sometimes it’s like that. Sometimes it’s just, this is not the market to be aggressive in, and it’s just a market to keep your head above water. And you know, try to trade smart.

That’s what I did today. I feel pretty good about it. I’ll do the same thing tomorrow. This is not the third day of … I guess I’d say … I don’t know if I’d really say it’s a cold streak, because, over the last three days, I have made money. I just haven’t made a lot. But, if we call it a cold streak, this is the third day of the cold streak, and these were the first three days of the month that it didn’t make, or lose more than $1,000.

Every other day of the month, I was making thousands of dollars, or losing thousands of dollars. It was just big oppertunities. So, these are the first three days that were sub-1,000, and it just feels like little bit of a cold streak, maybe not me, it’s just the market’s choppy. The market’s a little bit cold.

If it last through the rest of the week, God forbid, I hope it doesn’t, but if it does, it’s an opportunity for me to exercise discipline, strengthen that muscle. Gotta keep sharp because we do have cold streaks that come around from time to time.

If you’re a beginner trader, and you’re in the classes right now, or you’re just starting to trade, just keep in mind, “Okay, if Ross is having a hard time, it’s an indicator that the market is a little bit tricky right now. So, I should probably take it easy, go back, study the former runners of some of the big winners from earlier in the month, re-watch those mid-day recaps, re-watch the live trading examples.” Think about, “How am I gonna trade when the market does pick back up?”

This is the time to study, we’ll get to the other side of it before too long. Then, you know, you’re gonna see me stepping up to the plate with 10, 15, 20,000 shares and having days when I make eight and $10,000. You know, it’s gonna be like, “Oh my God, that looks so easy the way he’s doing it, and it’s just because I’ve got a lot of experience, I’ve been doing this for a long time.

Right now, it’s time to just take it slow, not be aggressive. I don’t want to take big losses during the choppy market. I want to keep those losses small, that allows me to come out of this slow period, really with some force, and feeling confident.

So, that’s the game plan right now. This is a short mid-day market re-cap. Not really a whole lot to cover. A bunch of trades, but really, nothing of any excitement there. So, you know, finishing the day, whatever, in the red, but be back at it first thing tomorrow morning, and hopefully we see some good oppertunities on the scanners.

All right, so that’s the game plan, I’ll see you guys all back here around nine, 9:15, tomorrow morning for our pre-market analysis. All right, see you guys in the morning.

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