Warrior Trading Blog

Slow and Steady Profits +$2,700! | Ross’ Trade Recap


What’s up, everyone? All right, so where we are finishing the 110th trading day of 2019. I’m going to finish up about $2,700. Well, I’m down 2,000 in my main account, and I’m up 4,700 in the IRA, so net profit, 2,700. It’s a green day. It’s a little above my 2019 2,500 per day average. I wish it was a little bit more, but you know what, progress is being made.

I always try to remind myself, even though I gave back a little profit today on my last trade, I am still walking away with more money than I had, well, two hours ago, and that’s solid progress. It’s what it’s all about. Slow and steady wins the race. I’m about $12,000 on the week, which puts me up 42,000 on the month, so I’m still feeling good about that. We’re going to try to finish up this week with two more solid trades on Thursday and on Friday. All right, see you guys first thing tomorrow morning.

All right, everyone, so we’re finishing here the 110th day of 2019 with another green day, although today’s not as great of a day as it could’ve been. I’m up 4,700 in my retirement account, and I’m down 2,000 in my main account, so I only have a net profit of 2,700, which although it is above my daily average of 2,500 a day, and I’m always happy to be above the daily average, it’s one of the slowest green days I’ve had since actually last Wednesday. Last Wednesday was also a slow green day. I only made a hundred bucks.

Yesterday, of course, being up 21,000 was a really solid day. I probably could’ve been up 20,000 on IMRN had I been a little bit more aggressive on it. This one was kind of interesting. Our watch list this morning was a little on the light side. If I go here to Timeframe and use Historical Date, this is what the gap scan looked like. Let me just put this at 9:25. We had BLIN at the top of the scan up 26% pre-market with an 888,000 share float and 1.5 million shares of pre-market volume. Price was 3.67. This to me all looked good for a break over $4.

We had SYBX on the scan as well, which I traded. This one didn’t have enough volume. This one was a little too expensive with a float that was a little too high. NETS was a maybe, and IMRN was a maybe. These both were lighter volume. All of the trades today were right off the watch list. Remember, ZVZZT is the NASDAQ test stock, so this doesn’t count on P&L. This is just for testing hot keys and stuff like that. IMRN I’ll put that back here.

BLIN unfortunately did not give me the big breakout I wanted. The bell rang, and I jumped right in for the break over $4. Well, as you can see, it hit 4, but it did not break 4. It had resistance right there. It tried three times, and it couldn’t break that level. I stopped out, but I had taken 12,000 shares of it. I was a little aggressive on my share size. Being maybe a little bit of cheaper stock, I thought I needed 12,000 shares to try to make a decent amount of money on it, so I jumped in at .93 for the break over 4. I was up 7 cents per share. Obviously, didn’t take the profit on it because that’s not what I was looking for. I was looking for a break over 4.15. 4.18 was the daily trigger that gave us room up to 4.50, so 4.18 was actually the spot that I was watching. That was based on this resistance area here.

It couldn’t go. Ended up selling off, and it’s down at 3.18 right now. That was disappointing. I lost $2,041 on it, which considering I took 12,000 shares is not the end of the world. That’s not bad, but it put me down below my $2,000 daily max loss, which meant I could not take any more trades in this account. This account locked up.

Now, I could call Lightspeed and say, “Hey, can you guys open my account up?” and they could, but I don’t do that. Any time I hit my max loss in one account, the cool thing is I can tab right here to my second account. Now, granted, not everyone can have two accounts, but I’ve got my main account, and then I’ve got my retirement account, so I switched over to my retirement account, and then the next trade I took was on SYBX.

On SYBX, this one we were watching pre-market for a break over the pre-market pivot, which I mapped out as being 8.25. I had a couple people ask me at pre-market pivots on comments and on YouTube. When we have a stock that drops down and pops up and pulls back, I usually think to myself, “If it can break this level here, that’s significant. If it breaks that level, it’s then got a chance of retesting high of day.” I sort of consider this to be a pivot. Now, this is a pivot to the upside, and down here might be a pivot to the low side, the low this area. That’s the level that ended up breaking.

Anyways, 8.25 was the spot I was watching. I added at 8.47 for the break over 8.50. I think it was right around there, or maybe it was 8.25. In any case, I added right here as it was squeezing up. It was like right in this candle. Hit a high of 8.80. Next candle drops all the way back down to $8, and then it’s back down to 7.80. It did not hold that level at all. I stopped out of it and was lucky I had $250 of profit because it could’ve easily been a good size loss, but as soon as it couldn’t hold this level, I bailed out of almost all the position, getting a partial fill on the balance, and then sold the balance down here at 8, or I guess it was 8.24 where I finally made my last exit.

Kind of disappointing there. At that point, I was like, “Okay, well, I just took a $2,000 loss, loss on BLIN.” Two minutes later, I take a trade on SYBX that totally did not work and was only a $250 winner. You don’t risk 2,000 to make 250, so my ratio of my average loser versus my average winner today before this IMRN trade was pretty poor.

When IMRN hits the scanner, it hits the High-of-Day Momentum Scanner, I was familiar with the name, of course, because it was a stock that we had seen on the gap scan. I saw it. I pulled it up. I saw, I pull it… Basically, my process, if I have a different stock up like this, I see a stock hit the scanner, it goes boing. It makes this noise. I look up. I type here, IMRN, and while that’s loading, I come down here and type it here. I look at the chart. If I like it, I press shift one, and just like that, I’m one. ZVZZT, let’s just do this for example. SPY. ZVZZT, I go there. I type it here, ZVZZT. ZVZZT. Then I like it. Shift one, shift one. I’m now in it with 6,000 shares just like that.

Now, usually, I don’t have to type a five-ticker symbol, which is good because takes more time. Usually, they’re two, three, or four, but in any case, that’s how quickly I can get in. Then control Z, selling and bailing out, and now I’m down 270 on this test stock, but that does not contribute to my daily gains or losses because it’s just a test stock.

That’s the process on the IMRN, typing it quickly. As I saw it coming up towards 4, I jumped in at 3.93. I’m in it. It squeezes up here to a high of 4.43 and gets halted for a circuit-breaker halt. I was like, “Okay.” I really wasn’t that excited about it. I was like, “Oh, well. All right. This is halted. Doesn’t have a lot of volume. Maybe I… I’m not sure if this is going to work or not. Obviously, the trade on BLIN and SYBX didn’t work. I’m worried this might resume from the halt and just drop right back down.” I was just like, I was just not, I was just sort of like, “I don’t know. Not really sure about it.”

Comes out of the first halt, and it dips down for a second, and the dip buy opportunity was at 4.85. I passed on it. I had my order ready at $5 to add, so I had my order up here at $5. All I needed to do was pretty the Buy button, which was right down here, and instead, I just was like, “I don’t know. I’m not sure. Buying out of the second halt’s a little risk. I’m only just… ” I don’t even think I was… I was like, “I’m just barely break-even on the day at this point. I don’t know. Maybe let’s just give a second.” Then it squeezes up to 5.06 and is halted a second time, and now I’m like, “All right, well, I’m going to hold, and let’s just see what happens.”

I’m holding 2,500 shares. It resumes from that halt, and it squeezes up to 6.05. As it squeezes up to 6.05 right here, I sold all except for 400 shares. I sold at 5.39 and 5.50 because I wasn’t sure it was going to work. I was like, “You know what? I better just take a little profit on this thing. I don’t know.”

I took some profit there, 4.46, 4.31, or 5.36, 5.31, 5.39. It squeezes up, halts at 6.05. Now I’m only holding 400 shares. It then resumes and hits a high of 6.80, which is our 200 moving average. Now, of course, I’m thinking, “Man, look at that, from 3.80 or whatever this was, 3.88 to 4.88 to 5.88, almost at 6.88.”

At that point, it halts going down. I’m still holding a small size. It resumes, goes through here, and I actually added right here. On the first candle to make a new high, I added. Anticipating the first candle, I added actually at $5, 6,000 shares. That didn’t work. I stopped out right here and gave back $2,000 of profit.

I was up 6,700 on it. We’ll finish up 4,500. I thought first candle to make a new high would at least give a decent bounce. We were below the VWAP. I knew there was some risk there, but I thought we would get a better bounce, and that just did not happen. Then it halted a second time going down.

This is going to be one of those stocks that we talk about in the class as being that if you waited for the first pullback, you would’ve lost money. If you really waited for the very first pullback on this, which was like right here, and took this trade, you lost money because this was not a profitable trade.

The only trades on this were buying off the High-of-Day Scanner for a break of $4, which is the half dollar, whole dollar setup, possibly adding on the dip coming out of the first halt, which is an aggressive scalp setup, and possibly adding up here on the dip out of the second halt, which would’ve been very risky, but those are the only ways that you could’ve made money.

Give me a shout out of how much you guys made today, those of you in the chat room, and I will call it out. For those of you guys who did find your way to profit on it, it was through scalping off the High-of-Day Momo Scanner. It wasn’t waiting for the first pullback. I see 330 from Matthew, 960 for Chris, 5,000 for Mason. Nice job there. Let’s see. 470, 3,600, $5,684, 810, 200, 2,500, 840, $18,000 in the simulator, $134. A lot of you guys did pretty well on it between sim and real money, but yeah, this was the only place where you really could’ve traded it pretty profitably to the long side.

Now, of course, if you had shares available to borrow, shorting the first halt going down is a no-brainer, but these are often the challenge here. I set up an account, as you guys know, with CenterPoint earlier in the year so I could try to short the first halt going down because this is like a no-brainer setup. I mean, it works so well.

The problem was that by the time a stock was squeezing up here, usually if you went in to borrow shares, they were all gone. You couldn’t find any shares to borrow. Now, if you reserved shares pre-market, well, maybe you would’ve been able to get shares, but half the time, or probably more than half the time, these stocks pre-market, well, they end up doing nothing, so spending $500 to reserve shares on the top three or four gappers is going to cost you $2,500 just to reserve the shares. That puts you in the hole for all those borrows.

I didn’t like doing that. I would always wait until the stock was starting to move, and then by that time, no shares were left. I just kept finding myself seeing these great opportunities but not being able to trade them. The whole thing with shorting these stocks, this, I can’t short this at Lightspeed. I could try to press the Sell button here. It’s going to say, “Short orders… ” Well, this is because it’s in my margin account. Well, in any case, there’s no shares available to borrow, so even if I wanted to short it, I couldn’t.

There are a couple of brokers out there that do have shares available for stocks like these, but usually what they’re going to do is they’re going to make you reserve the shares. When you reserve the shares, if say you reserve 5,000 shares. You can trade those 5,000 shares all day long. You can short it, cover it, short it again, cover it, short it again, cover it. You have 5,000 shares reserved to your account, and you can trade them all day long, but the privilege, for the privilege of having those 5,000 shares, you’ve gotta pay a fee, and that fee is based on a per-share basis.

I saw the price usually was anywhere from, usually a .004, so .004 times 5,000 shares is, what, 200 bucks. .004 to .0, I saw some as high as .05, so you’re paying $500 for 10,000 shares. I mean, some of the fees are just crazy high and just wasn’t for me.

Great opportunities here if you’re able to borrow the shares and are able to get on it really quick, but… and this, of course, would’ve been the nice one. But on the other hand, we have others that like JAGX that end up squeezing out those early short sellers, dropping down, looking like they’re just going to fade the rest of the day, and then boom, back to the highs. Then that’s when things get pretty crazy.

I think for me, it’s just easier to focus on trading to the long side and not flipping back and forth. TradeZero, yeah, they’ve got good availability for borrows. It’s 7 cents per share right now at TradeZero, so if you wanted 10,000 shares, it would cost you 720 bucks of IMRN. That’s even if you don’t even take the trade, just for reserving those shares, 720 bucks. Of course, if you’d reserved 10,000 shares up here, you could’ve made $10,000, so it would’ve been worth it if they had still had shares available to borrow. Anyways, that’s the challenge.

But today’s going to be a day where I’ll finish in the green, red in my main account, green in the retirement account. Have been mostly trading in my main account as of the last few weeks, building up the profits here. The nice thing, of course, is that I can take these profits out anytime I want. In a retirement account, can’t take the profit out without paying a penalty on it, so this is really for retirement. Just gotta leave it there and let it grow.

Throw another $4,700 in the pile there, and in the main account, little setback, but we’ll be back at it first thing tomorrow, and hopefully we see some good opportunities and we could finish up this week with two more solid days. Thursdays and Fridays have been strong days for me this year, really strong. I’m excited for what’s in store given that we are still seeing a lot of volatility, and volatility equals opportunity.

Today could’ve certainly been a 10 or 15 or even $20,000 day had I been more aggressive on IMRN. I just wasn’t because I lost on BLIN right out of the gates. If I had made money on BLIN, I would’ve had a cushion. I would’ve then taken that, put it towards IMRN, and this probably would’ve been a really awesome day. But that’s okay. Be back at it tomorrow. I’ll see you guys first thing tomorrow morning. Bye, everyone.

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