Warrior Trading Blog

Stairway To Heaven +$2,375! | Ross’ Trade Recap

Ross Recap 7/09

What’s up, everyone? All right, so here we are Monday morning, first full week of July without a holiday, and I’m finishing the day up $2375. So green is good. I’m happy with that, but when we break down the stocks, the trade today, you’ll see that I started the day with two back-to-back losses that nearly put me below my max loss. I mean, I was just shy of my max loss.

 

Fortunately, I was able to start digging myself out of the hole. One small trade, another small trade, and I made a little here, a little there, a little there, and next thing you know, I’m breaking through $2000 of profit. From nearly the max loss to above the daily goal, which is awesome.

So I feel good about that, but definitely a little bit of a caution flag, just to be careful because Friday was a little bit of a close call and then here again on Monday, a little bit of a close call. So tomorrow, Tuesday, I’m gonna start with smaller share size. So if I do take losses right out of the gates, at least they hopefully won’t put me below my max loss or really close to it. I don’t wanna have that big hole that I have to spend the rest of the morning digging myself out of.

Today was a record in terms of the number of trades I took. Usually, once I hit a good amount of profit, I walk away. I’m done for the day. But today, trying to get myself out of the hole, I kept trading a little more than I normally would, and that’s another area where you have to be a little careful, because when you overtrade, you can reduce the quality threshold of what you’re willing to trade and then inevitably your accuracy can go down.

So a little bit of a close call today, but I climbed back up that stairway of heaven, and now, $2300 of profit. Green is good. So we’re gonna break it down in today’s Mid Day Market Recap.

What’s up, everyone? All right, so we’re gonna go over the trades from this morning, finishing the day up $2375.50. Green is good. Now, today was actually not an easy day. I started going deep into the red, and then I had to dig myself out of the hole. Now, fortunately today I didn’t go below my max loss, so I was still within a range where I could dig myself out of the hole, which is really good.

So the big winner today was on STAF. Right now it’s up 229%, and when I first saw it, it was at two dollars. It’s up right now $4.50. I had my best exit right around, I don’t know, $4.80 or so. It hit a high of I think $4.87, and I’m up just on that stock alone, $5759, which is crazy.

So definitely loving the momentum. We still have it in the market. It’s just been a little bit choppy. It’s kinda finding which stock is gonna start moving and really take off. It’s kinda like, I don’t know. We start to see things take off and it’s like, “Oh, looks like this is the next stock that’s gonna go,” and then it fades all the way back down. So when that happens, obviously I get stopped down. I take a loss. It’s really frustrating.

What’s up, everyone? I see you guys logging in on Facebook. Again, so you guys, any questions, any comments, leave them below. I’ll come back through and answer them later. Those of you watching YouTube later this afternoon, I’ll come back and answer any questions and comments you guys have as well. Also, reminder.

This coming Thursday at 1:00 pm eastern, we’re hosting an encore webinar. We had our webinar last week. It was a great turnout, but we had a lot of people that missed it or who got into the webinar and then ended up having audio issues and stuff like that. So, we’re hosting an encore this coming Thursday, 1:00 pm eastern. Book your calendar. Click to register. The link is right here in the description on Facebook. I’ll put it in the description on YouTube as well.

All right, so with that, let’s jump in and start breaking down the stocks that I traded this morning. All right, so I’m gonna shrink that like that. All right, and go like that. All right. So let me drag up my broker window. All right, so here we are, finishing the morning up $2375.50. Green is good, and you can see the warning on my account right here.

Global trading set to all trading allowed. My PNL is greater than $-4990. If I’m down more than $5000 on the day, I cannot take another trade. I called my broker and I asked him to set that up for me, because last month in June I had taken a pretty good size loss, and it was a day where I was already down more than 5000, and I should have just stopped trading.

And I kept trading. I kept pushing my luck and I ended up finishing the day down $16,000 which was really disappointing. It was either my second or third worst day ever, and I know I can do better than that. I should be a better trader not to let myself go that far in the red, but it helps to automate some of that stuff.

So now I’ve automated it with my broker. If I’m down more than $5000, they won’t let me take new trades. So today, I went into the red. I was actually down $4600 on my first couple trades. First trade was on BNTC. I lost three grand. Second trade, SSY. I lost $1500. So on those two trades, I’m down $4600. So I was like, $300 off my max loss before finally bouncing back. Let’s look at the ones that I traded.

So, BNTC. All right, so on this one, this was a gapper, and initially it was our second leading gapper. Every single day starts the same way. Those of you who have attended a webinar in the past, you know that we talk about how to use these scanners, and so just to kind of go over it in summary, I look at the scan around 9:15 am, and this shows me all the stocks that are gonna open more than 5% versus yesterday’s close, which indicates some strong momentum has already begun. I usually look at the top ten or so. Leading gapper was MBVX. Already gapping up 222% with news and the second was BNTC gapping up 85%, also with news.

So BNTC had a pre-market high of 5.87, and I was watching it because I thought if it broke back over five, we might have a chance of kind of filling this gap up towards 5.87. So the bell rings and it starts surging up, and I ended up jumping in. And I took so many trades today, but I ended up jumping in this one at … Let’s see. I got in at four … Let me go back here. I got in this one at 4.79, 4.80. 4.80, and I added it 4.90. I thought this thing was gonna break five dollars. I was being aggressive. 10,000 shares. I was thinking it would break five, squeeze up to 5.20, maybe 5.50. It would be a good winner. And then, look at what happened. A minute later, it’s all the way back down here at 4.13.

So this was what we would call a pretty sharp rejection of the whole dollar. It just couldn’t break that level and it came back down. So I ended up stopping as it came back down. I got a partial fill at 86. Once I added and then it was going down, I was like, “Okay, I gotta start easing up.” So I tried to sell what I added. I got a partial fill, sold more at 67, more at 55, more at 26, and the rest at 18. So I sold down into the flush. I hate doing that, but at a certain point, you’re hitting your max loss and you have to. So I lost $3000 on that, which is 30 cents on 10,000 shares.

Obviously, for 10,000 shares it’s not that bad of a loss. It’s only 30 cents, but it’s definitely disappointing. I hate starting the day and starting the week with a red trade, but that’s what happened. So started in the red with this rejection, and then I’m watching the scanners. MBVX was on our watch list pre-market, but when the bell rang, it … I don’t know. It dipped down for a second, and so I sorta ignored it because it dropped down to 89, and then it surged back up here, broke through two dollars, and hit a high of 2.37, and I missed it because in these two minutes, I was trading BNTC. So I missed this trade completely and I just felt like I was chasing it, so I just left this one alone. I didn’t even trade it at all today. I just totally left it alone.

So then I’m watching the high day momentum scanners, and these scanners show us stocks that are squeezing up in real time right now. BNTC was on the scans. I jump into it, lose money on it. STAF was on the scan right there at $1.88, and it was actually on our watch list pre-market. However, because it had popped up all the way to three and then sold off, I thought it looked too weak, so I really wasn’t very interested in it at that time.

So BNTC, BNTC, BNTC, MBVX, STAF, STAF, STAF is hitting the scanners a couple more times. STAF ends up hitting a high of 2.20, 2.24, 2.25, and then dropping all the way down to 1.82. That’s a 40 cent drop. That’s pretty substantial in a cheap stock, and so I was like, “Another false breakout, just like BNTC. Looks like we’re gonna see kind of a crappy market.”

SSY hits the scanners. I jump in at 71, and then I added it at 92. I thought it was gonna break over the whole dollar. It hits 2.02. I tried to sell half and I got a partial fill at 99. Tried to sell on the bid at 90 and it just flushed down and I ended up selling the rest at $1.49.

So I lost 1500 bucks on that one. And again, this ended up dropping more than the place it started. It went all the way down. So now we have like three rejections on the day. We’ve got BNTC. We’ve got STAF, and we’ve got SSY. Now, when STAF curled back up and broke over that 2.20 spot, that’s when I was like,

“All right. I’m gonna give this thing a chance.” So at this point, I was down $4600 on the day. $4600. I was in the red and I was not happy about it. But, you notice it starts to squeeze up, so I jump in here as it’s going up, thinking maybe it’ll squeeze into a circuit breaker halt.

It hits a high of 74, then pulls back a little bit, hits a high of 87. Couple little scalps here, and I’m still holding here and then I sell. My very best exit was up here at 2.99. So let me just scroll down, where was this? There was so many trades on this. I was getting in, getting back out, getting back in.

So best exit up here was at 97 and 99 right there, which was pretty good. I was happy with that. So I started making money back. I think I made like $1500 back on that trade, and so I was down only $3000 on the day.

And then we see a couple little opportunities, a couple other stocks hit the scanners. XTLB, this was actually called out in the chatroom, which is good. Sometimes traders in the chatroom will see stuff that I don’t see or will see stuff that our scanners don’t catch. So I jumped into this one. It pops up from about 2.20 up to 2.60.

Again, the first move sort of gets rejected and then it curls back up. So that’s really the thing to look for right now is, let it pop up, pull back, and then if it goes above this level, that’s the spot I’m interested. So I got in as it surged back up here. TGC, similar. This one I jumped in … It first popped up to $1.12. It then pulls back, sort of inside this candle, it drops down, and as it surges back up, I bought at $1.18 and added at $1.20. High of the day was $1.24.

So made 700 bucks on that. You know, a couple small winners here. So with these, I was able to get myself down to red, I don’t know, maybe $1500 on the day. So still in the red, digging myself out one trade at a time, small winners. SECO, I jumped in this one right here at 4.50, pops up to a high of 4.53 and drops down. Only made $49 on it. Small winner, whatever. And then back to STAF. This is the one that, for me, gave me such nice winners. Once it broke over three, it came up. It tapped three, it pulled back, and then it started to curl back up. So right here is where I start adding for the break of three. I added at, I wanna say it was like 78 or something like that, so let’s see. I’ll scroll down a little bit.

I added on STAF at … you know, again, just so many trades on this. Getting in, getting out, getting in, getting out. Added at 80 and 87, and 87 and 89. So taking some size, I was expecting an immediate break over three. It’s a little bit choppy so I end up adding it at 2.95, selling at 99, 96. Couple partial fills, orders that wouldn’t fill.

This is when I try to sell on the ask and I have to cancel it. Then selling at 90 and then getting back in as it pops back up, 3.15. So this was sort of just scalping. Getting in around this area for the test of three, adding as it’s going up. We hit a high of 37. We then pulled back, consolidation in here. All of this area for me is like getting in, getting out. Getting in, getting out. Based on reading the time in sales, which is this window here.

So when I see a huge streak of green and lots of buyers, I often jump in as early as I can, kind of ride that momentum that you’re seeing in the time in sales. You’re not gonna see it as much now as we’re getting closer to the lunch hour, but overall, some good trades on this one. And then right in here, at $3.45, we were consolidating right here, and that’s where I took my final … This was the really good trade.

I got in here at 3.45 for the break over the half-dollar, and boom. It popped up from 3.45 all the way up to a high of 4.80. And it had a circuit breaker halt. The sad thing is, I wasn’t nearly as aggressive as I could have been, because at this time right here when I took the trade, I was still down around $800 on the day. And I had said, “You know, I don’t wanna go back down below 1000 in the red, so I can only risk $200 on this trade. I can’t be really, really aggressive.”

So I get back in, it squeezes up and I end up adding. And I got a good win on it, but … I mean, obviously I did. I made $3600 or $3000, because I went from down 600 to up, actually $2998 on the day, which was my high of day. And then I took a couple scalps right here on a one-minute micro pullback, jumped in there. It didn’t hold, and I tried to get back in at 87 for the break over five, and that didn’t hold. So I gave back about 600 bucks on those last two trades, and that’s when I was like, “Okay, that’s it. I’m done for the day. Green is good, especially after such a rough start.” So finishing up $2375 and it was not easy. Today was not an easy day. It was just very choppy.

So you can see here, I’m green on four, red on three. This is basically a break-even trade. $49 is not profit to me. That’s just nothing, really. So three winners and four losers, basically. Just choppy. My total accuracy today looks like it’s around 66%. Average winner, only 10 cents. Average loser, 13 cents. So small wins. A couple of bigger losers, especially on that BNTC trade. So 31 cents was my biggest loser, and 20 cents was my biggest winner, including scaling out, right? If I sell half at 20 cents of profit and the other half at 40 cents of profit, my total is 30 cents. It’s the average of the two.

You know, green is good. I’m gonna be happy with that. Today was a really close call. I was only about $300 away from hitting my max loss, and having to say, “I’m down $5000 today, guys, and that’s it. I’ll try to make it back tomorrow or later in the week.” But fortunately I was able to recover off those lows and curl back up. Right now, up right around 14,000 or so on the month, 328,000 on the year, 665,000 in my small account from when I first started with $583. So you know, green is good. It’s another day, another dollar. Progress is being made, but hopefully we’ll see a little bit of cleaner momentum tomorrow.

I’d really like to see the stock like BNTC, the leading gapper, be clean. Our two leading gappers today, BNTC and MBVX, neither one of them were really that easy to trade. MBVX has held up a little bit better, but it also did a false breakout up here, then sold off down here, got halted going down, squeezed back up but then got halted going back down again. Just kinda choppy.

So I don’t know. Maybe it breaks over 2.50, it’ll be interesting, but the volume is 14 million shares, so at this point it’s pretty crowded. A lot of tug of war there.

So I think for me, the smart thing to do is to close up shop here. Today was a little bit of a close call, and you know what? Friday was also a little bit of a close call for me, so the more you push your luck, inevitably you’re gonna get caught with that big loss, so I gotta be a little bit careful going into the market tomorrow. Maybe I’ll start with, initially, a little bit of smaller size. I won’t start with 10,000 shares. I’ll start with like, 5000 and then I can always add. That way if I do get caught in false breakouts on those first couple of trades, they won’t be too, too painful.

Recovering from being down 4600 is really not easy. It’s actually pretty rare that I would have a day like today. Usually if I’m down 4600, that’s it. Maybe I’ll make back a little bit and close down three grand, but I’m almost definitely still closing in the red. So today, STAF was my lucky stock.

This was the bailout that I got, and I’m glad that it was as strong as it was, because I definitely needed that. But unfortunately I wasn’t even able to capitalize on it as well as I could have. Considering it’s up 100%, being up only $5700 feels like it’s not a lot, but that’s mostly because when I was at my max loss or so close to my max loss, I really couldn’t afford to take a lot of risk on those early trades.

So yes, I’ve hit my max loss. I hit it twice last month. Let me just look back here on my June calendar. I believe it was twice that I hit it. Yeah, I hit my max loss twice last month. I had four red days, but two of them were max loss. In May, I hit my max loss once. No, sorry. Twice. I hit it twice in May.

In April, I hit my max loss twice, and it was two days back to back which was not fun. In March, I hit my max loss once. Yeah, only once in March, which was good. February, I hit it a couple times. January, I hit it once. Actually, January, no. I didn’t actually hit it. I was down 4600, so that wasn’t quite a … so I didn’t hit it in January.

But in any case, this was a close call today, so just gotta keep that in my mind tomorrow, that today was a close call and I gotta scale back a little bit. I don’t wanna see this warning here. This happens any time you go red. It warns you, and I actually think that on my trade on STAF, on that first trade where I got in, I was actually holding and for a moment I might have been down more than 5000, but I was holding it, and then it curled back. So the max loss doesn’t turn on until you press the “sell” button, and on that one I was able to … It ended up curling back up so I didn’t end up taking the loss. It ended up being a small winner.

Anyways, I’m gonna set my max size tomorrow for 7500 shares to start, and then I can always increase that if I’m feeling confident. But just try to take it a little easy tomorrow. If I can make 500 to 1000 bucks, that’s good, but we’ll need to have that one stock that’s really showing strength. Today was STAF, and that was about it. So a good move there, but everything else was pretty choppy.

All right, so that’s it for me. I hope you guys have a great afternoon. Those of you who are just getting into the community, again, study up. Go through those classes. Watch as many of those videos as possible. Everything we do during the day is, really it’s an example of the lessons that we teach you.

So if you hear I’m trading a stock like STAF, by all means, I want you to look at it because there’s obviously opportunity here, but you gotta decide your entries and exits based on your own understanding of the patterns. You don’t ever wanna just follow, whether it’s me or anyone else, because that doesn’t teach you be independent, doesn’t touch you to be self-sufficient.

One of the things that we do that is so rare is we actually explain why we take the trades we take, so you can learn from them, right? And then you can become a better trader on your own, and then you can start throwing ideas into the chatroom that are actually gonna help me and some of the other traders who are profitable, and are really just using the chatroom for idea generation, not for exact entries or exits.

That’s the value of this community, its idea generation. All right, so anyways, I hope you guys have a great afternoon. We’ll be back at it first thing tomorrow morning, 9:00, 9:15 for our pre-market analysis. All right, I’ll see you all in the morning.

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