Warrior Trading Blog

Scaling Back A Bit +$129 | Ross’ Trade Recap


What’s up everyone? All right, so today is, well, the second basically flat day in a row of $129.98. Although remember, on Friday, I only made $29 and then we had the Uber IPO right around noon time, and I made $870 on that. So I actually finished the day on Friday up about $900, which was certainly better than $29, and today, well we don’t have any IPOs so there’s nothing gonna be trading in the afternoon, so we’ll just be $129.98 and just another small day.

The gap scanner didn’t really pay off, nothing really strong there. High-of-day momentum scanner also didn’t really get any action there, so a couple days here of choppy waters, which is okay. Reducing the risk, scaling back a little bit. Now I wanna watch and wait and see if something really starts to take off. Maybe tomorrow morning, we get a great gap scanner, a stock that has some good news, good flow, right price, everything else. Maybe we get some sympathy momentum off the high-of-day momentum scanner, and just like that, things can change. But the last two days have been a little slow, so I’m gonna be cautious.

And being up right now, just about $50,000 on the month, I’ve got a cushion. I can sit tight, I can wait, and then when I see that A quality set-up, I’ll be aggressive on it, try to capitalize, have a good win. And a couple days like that is gonna put me up 65, 75, 85 thousand dollars on the month before I know it. So sitting tight and being patient is absolutely the right thing to do right now, and we’ll see how things look tomorrow morning.

As always, any questions, any comments on today’s recap, leave those below. I’ll come back and answer them this afternoon, and I’ll see you all first thing tomorrow morning.

All right everyone. So we’re gonna do our midday market recap here, go over the trades from this morning. Today, a little bit of a boring day, little bit of a slow day. Only ended up finishing with $129.98 of profit, which gets rounded up here with Lightspeed, to $130. $129.98 is what it is right down there, and it’s always important when to know when to put the pedal to the metal, when to be aggressive, and when to slow down and just sit tight. And so today, I slowed down a little bit.

OPTT, I was aggressive right out of the gates. I tried to scalp this, well, and I did scalp it here, from $2.75 up to a high of a $1.84. I only made $280 though, because it didn’t hold up. And then I got back in right here for the first five minute candle to make a new high. And it failed, and I lost $130, or $150.

Now I kept the risk on the second trade pretty small, because I knew three dojis in a row here on the five minute chart was not the strongest five minute pattern, and of course high red volume, as well. So I took a little bit of risk on that second trade, didn’t work, and got right out pretty quickly.

As I said pre-market, and mentioned to a bunch of you guys, my focus right now for the most part has been to wait for A quality set-ups to hit the high-of-day momentum canner. And when they do, that’s when I’m gonna jump on and try to be aggressive with, but today, we didn’t have anything that hit that looked really good. Our leading gapper, OPTT, that was the first one that hit, prices under $10, flow was less than a million shares, already up 22% with news. However, OPTT had a great chart here from 3:38 to 7:56, a nice window, but it wasn’t able to get into that window number one, so that was a problem. And number two, the stock, like LEDS at this point, is getting overdone. It seems like every time at this point that it’s popping up and now after today, I’d say this officially, it’s just failing and fading.

And so, it’s gonna take a lot for this one to get to turn around and really start to open up and have some big days. And so I’m probably not gonna be as aggressive on it the next time we see it hit the scanners. This one’s just getting overplayed.

So anyways, that’s OPTT. A couple of other stocks hit the scanners, but with light volume and nothing particularly exciting. MARA hit the scanner, but is up mostly because of Bitcoin. It was right at the 200 moving average here at $1.27, as it hit that level. I didn’t really wanna buy into the 200 but it did end up breaking and grinding a little higher. As of right now, it’s up 19%. And maybe it keeps going but it just wasn’t the absolute perfect set-up. And being a little picky, I’m already up close to $50,000 on the month, I can afford to be picky. For me, I’m gonna trade with 10,000 or even 15,000 shares, I wanna have the potential to be making 25, 30, maybe even 50 cents per share. That would be obviously really nice. 50 cents a share with 10,000 shares is $5,000. And I didn’t see anything today that I really felt gave me that opportunity.

OPTT was a maybe out of the gates, if it broke $2.80, squeezed up to $3, and then $3.36 daily level. That one was a possibility. I thought, given how much it had moved pre-market, we might see that, but then we didn’t. So just decided to play it a little bit safer, and not get aggressive on things like MARA or BOXL, which I just didn’t think had a lot of potential.

Now certainly in some markets, you have to switch your focus from trying to hit home runs to just trying to get a couple base hits, just to keep your head above water. But since my head’s well, well above water, being above my monthly goal, I feel like, right now, it’s okay for me to be a little patient and exercise that extra caution and just focus on A quality set-ups. And if I don’t see something that, for me, is A quality, meaning it has the potential to move 20 to 30%, sitting tight is maybe best.

And the overall market, obviously, is down. Dow Jones is down 500 points, but we really look more at the S&P 500, which gap-down is turning around a little bit right now. Coming down on the support of the 200 moving average is not a bad thing at all, honestly. This would be, for me, a place where I like to add money. I usually like to add money into the overall market when it’s near the 200, just for me feels like a good, safe place to put money in. And obviously, this was a strong drop, and isn’t great, but it got back up above it, then this was the first pullback. This was a small one that wasn’t enough, and now this will be a deeper pullback, so you’ll likely see a good amount of institutional buying around the 200.

So we’ll see as the market comes back down to that level, if things get bought up. And this is in my strategy for the last several years, even going back, well, further than the 200 will go. Just when the market comes down to the 200, I put a little bit of money away for retirement, and that’s generally been an okay spot to do it. Again, when you put money away over the next 20 years, ultimately 20 years from now, if you put it in right here, or you put it in right here, probably doesn’t really matter. So monthly cost based averaging is what a lot of people would just recommend you do. Put $500 away every month, don’t even look at the price, just put it away. And 20 years from now, you’re obviously gonna be fine because of compound interest.

But in any case, it’s hard to separate longterm from what you do every day and what you’re looking at every day, and feeling like you just put a ton of money in. Let’s say whatever’s relative to you way up here, and then things drop, I know can be a little bit tough.

But in any case, overall market being down, it might weigh a little bit on small caps. They don’t usually have, they’re not usually tied as closely to the overall market, so probably not too much of an issue there. But at this point, I’ll just put today, the day as a small green day, basically. Nothing I’d be excited about. My one trade on OPTT or two trades, and live to trade another day. I didn’t wanna hang my hat on anything today, or try to put all my eggs in the basket OPTT. Just was a little cautious, didn’t get the follow through I wanted, step back and reevaluate tomorrow. Be keeping a really close eye on high-of-day momentum scanner tomorrow. Didn’t really have anything today that was picture perfect. Be keeping a close eye on the gap scanner tomorrow, we’ll see if we get something that looks a little bit better, but at this point, I’m … I just don’t really have super high expectations.

Yeah, that last trade I got into was right here, 76, 77 on OPTT. Let’s see. Got in for the break of 78 right here. Expecting first five minute candle to make a new high, would give us an immediate break of 80, it didn’t, hit a high of 79. Got right back out of it. As soon as it couldn’t break 80, I saw a big wall of sellers, I started selling. Trying to unwind the position, selling some on the Ask, not getting filled, then hitting the Bid. So you can see this was an order to sell some on the Ask, didn’t get filled, switched and hit the Bid. I always use hidden orders when I’m trying to sell a big block of shares. I don’t like to just have it be visible, so I’ll do a hidden order if it’s a 9000 share. That way you don’t see 9000 shares right here on the Ask.

Usually when you trade a bigger size, you wanna utilize the ability to hide your shares. Because the reality is, if I look at a stock and I see, “Here’s a 17,000 share buyer, I see a 17,000 share seller,” I’m gonna be like, “Well, I’m gonna hold off for a second. I’m gonna be a little cautious.” So it’s one of those things where not wanting to tip your hand or tip your hat to the market, tip your hand I guess, is the general rule of thumb, and so that’s why we have this ability to hide shares if we want.

So anyways, yeah, just not a lot of follow through today. It’s okay, live to trade another day, be back at it first thing tomorrow. All right everyone, I’ll see you guys bright and early, 9:15, pre-market analysis. Hopefully we have a couple good stocks on the scanner tomorrow and we make a little bit more progress than we made today. All right, see you all in the morning.

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