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Warrior Trading Blog

Slow Trading Day -$886 | Ross’ Trade Recap

Ross_7.18

Hey everyone. All right, so finishing the day slightly in the red, but not nearly as bad as yesterday, which is good. But unfortunately we’re not seeing momentum really pick back up in the market. We’re seeing some small breakouts but not sustained moves, and certainly not anything parabolic this week, which is a little bit disappointing. So kind of typical of summer trading that we have a period of sort of slowness. We had some really good action at the beginning of June, really good action at the beginning of July, but now these last four or five days have been pretty slow, and we’ll see how things pick back up.

I don’t expect a lot from tomorrow. I will show up, I’ll do my thing, do my watch list, hopefully take a couple of trades, but I’m not expecting it’s going to be a big day. So we’ll be trading with small size, that way if it’s not good, the losses are manageable. If it is good, maybe a small profit, that’d be a great way to finish the week. And then next week last full week of the month of July, we’ll see what we can do. All right, so I’ll see you guys first thing tomorrow morning.

All right, so this is where I’ll finish here today, down about $800. It’s frustrating that it’s the fifth red day in the last … Or fourth red day in the last five days. But it’s just sort of the way it seems to be sometimes that the losers get clustered together, and you get hot streaks and then you get cold streaks. And right now, we’re just seeing a continuation of really just not a lot of follow through in the market. We’re seeing opportunity, but you have to be really quick.

So like CUR for instance, this I have $193 a profit on. This was a really tricky one because it halted twice. The first halt was let’s see. Let me go back. The first halt was right here. It squeezed up from 750 up to right around 876 and then it got halted. It resumed at nine and dropped right back down to eight, which looks terrible. It then bounces off that level and squeezes back and gets halted again up here at 971. It then drops right back down to below eight, 860. It then rips back up to a high of 989.

So this is the type of stuff where it’s a lighter volume stock, you’ve got bigger spreads, it’s got a recent reverse split. It can halt very quickly and it is doing that. We’re seeing volume increasing, which is kind of an interesting profile here, the increase in volume, but I’m thinking now it’s going to be sort of just continuing to be choppy because it’s faking out traders on both sides. So the only reason I’m green on it is because I got in for the break right here over the high of day, which was 950. It went into 971, it halted. I thought it was … I wasn’t looking super closely at the halt level. It started to halt at 971, which was up only 21 cents. And on that one I was like, “If it had squeezed up to $10 and I was up 50 cents going into the halt, I would’ve just held my whole position.” But because of what it had done here of dropping down and ripping back up, I decided to sell at 71 and then I was holding a smaller position through the halt.

So coming out of the halt, I stopped out. It then ripped back up. I almost got back in and then I stopped myself and said, “You know what? Look what this just did. Don’t get back in, you’re getting back in at the highs after it just dropped down to 860.” So I’m just a little disappointed in it overall. I was hoping that coming out of the halt, it would open higher and then I would have been totally okay with adding back the shares I sold because it would have confirmation and proof of strength. But because it didn’t, I didn’t get the opportunity to add. And that of course was for the best. So disappointing on CUR.

And then CODX was the trade I took right out of the gates. Well, not right out of the gates, but I took this trade right here. And because I took it with only 6 thousand shares, I gave myself a little more room on it than I normally would. So I got in right here for the break of 95 thinking it was breaking this double top, which it was. Got in at 95, it hits a high of $2. I gave it a second to break over and it flushed back down to 190. I should have sold right there. I should’ve taken a $300 loss. It then flushes down to 80 and I’m just like, “Oh, that’s not good.” And then I finally sold down here at 77. So I ended up losing like 17 or 18 cents per share when I really should have only lost five.

And this is a great example of how sometimes with smaller share size you can get a little more complacent. You can say, “Well, I’ve only got 200 shares. I’ve only got 600 shares.” Or for me, “I’ve only got 6 thousand shares. I’ll just hold this and let’s just see what happens.” And the next thing you know, you’re taking a loss three times bigger than what you should have taken. Now of course in this case, it’s only $1 thousand. Relative for me, it’s not a big deal, but it wasn’t really a good exit. The entry was fine. The break, the flat top, target was a move back up here to 209, 210. Back of mind, maybe it retests the pre-market market high of 225. That’s all fine. But you can’t hold way past your loss by that many cents.

So whatever. So that put me in the red right away, and then CUR, just a small bounce off the lows. And there has just been nothing else that has given a good opportunity. I mean this is the Momo scanner today. Not a lot of momentum in the market. So a good day to sit tight, a good day to rather than wait until I hit my max loss, just say, “Hey, you know what? Market’s not hot yet. I’m going to step back.” There’s no reason to risk hard earned money if we’re not seeing good follow through.

This stock, I’m not familiar with GNLN, so let’s just pull it up. So my process, I pop up the stock, I look at the chart, I see it’s beaten up chart, turning around. I don’t see a news catalyst on it in the news window, somewhat recent IPO, but red, red, red since it IPO’d and not a lot of volume. So pretty quickly I can tell you I’m not interested in it.

So anyways, so that one’s nothing for me there on that one. But yeah, so one of the things I did yesterday, I took $75 thousand out of my account. So you’ll see my account’s a little bit smaller. So gave myself a paycheck for the last couple months of trading. So smaller account right now here. And the reason I did this just because since yesterday was my third red day in four days and I was down about $10 or $12 thousand since the $27 thousand hot streak I had, I thought, “You know what? Let’s just cut this right now. I don’t want to keep having red days that are big losses. I’m going to bring my share size down. I’m going to bring my account size down.” We’re coming into the month of August. The last two years, August has been a difficult month for me, mostly because I was swinging the bat way too hard during a time of year where a lot of traders do go on vacation and just aren’t in the market.

So you end up not seeing good follow through. Now, that doesn’t mean you can’t make your $200 daily goal. You can if you’re going for base hits, but if you’re swinging for the home run, you’re sacrificing the base hit, you’re stealing second, going for third, you strike out, you get tagged out and then that’s it. Whereas you could’ve just stayed at first and you’re on base. And that’s what we would call the small winners. So a little disappointed that we’re not seeing better follow through, but it is what it is. And I’m just going to step back, trade a smaller size and then be back at it first thing tomorrow morning and try to finish up this week maybe with a green day. All right? So that’s the goal. And I’ll see you guys first thing on a Friday morning.

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