Warrior Trading Blog

Stopped Out! -$1k | Mike’s Trade Recap


Hey, what’s up guys? It’s Friday and unfortunately we’re ending it on a red note or a red day, but we are still just slightly green for the week. I took one trade earlier in the week for just over $2,000 and was in the red today by just over $1,000. Sp, the positive side of things is we are still green on the week but ending Friday in the red, which is never fun. But that’s okay. We’ll get back here first thing Monday morning and look for some better action. This week’s been very choppy, very slow, very difficult to navigate, so it’s important to keep those losses small and just remain patient. So stick with me and we will review today’s loss in today’s recap.

All right. Good morning, guys. Friday, here wrapping up the week. Not the way I would like to wrap up the week. But I took one trade this morning on AMD, lost just over a thousand bucks. I’m pretty much at my max loss. I really don’t trade beyond that if that hits. It’s normally a rare occurrence that I actually get to that point. But I gave it a little bit of time to see if it could roll over and it just didn’t want to do it, so I had to stop out. I took a $5k position as we were starting to break down and had to stop out for about 20 cents. But you can see, ending the week I’m still in the green because I took a trade on Snap on Tuesday, I believe, for just over $2 and losing $1k today. It’s just been a very choppy, not really too productive of a week. Markets have been tough. There’s really not that much out there to trade with much momentum. Markets have been choppy, so it’s been tough to get something started to hit any sort of home run type of trade.

But let’s go ahead and talk a little bit about AMD. This wasn’t originally on the watch list this morning. I saw as we were coming into the open that I noticed that we were back below this $30 pivot. And I just want to take a moment to explain the importance of this pivot here because this is why I was watching it. Now remember we traded this big move up right as we broke out over this $30 point and took a big surge higher. We traded this move right here the day of the break, got a really, really nice trade. And then it gave back the entire move to come back and retest the pivot. And you can see we had a retest, a relief move that failed and we were coming back down through the pivot. And this morning we were opening back below the pivot.

So what I was looking for on this was an open, especially with the market, what it was doing. It was gapping down. I was looking for this to break down and try to get the hard flush just back towards 29, just for a one point move out of a decent sized position and it would have been a nice day. So the fact that we were, again, we did a failed move higher, back below the 20 day, back below the $30 pivot. That was a lot of support that had given way and we were opening below it this morning. We were opening below it, so what I was looking for was basically a breakdown on the premarket low and that’s exactly where I went short, 29.50s, and looked for this opening sort of flush.

I was looking down towards 29 for a quick trade, just to see if we could rack up some profit here in the first five or 10 minutes of the day. And unfortunately it whipped against me. I had a stop at the high. So if we go to the five minute here, or I’m sorry, the fast timeframe, the 24-second, you’ll see that this is what I was using out of the open. So I saw the first big downward push and then you can see we had a little bit of a retest against [VUF 00:03:52] right in through here. And once I saw that failing … So I was looking at this in real time, so it looks like this. I was seeing these retests and they were failing, so I got short on that second retest through the fifties and took one block of 5,000 to see if we could get this breakdown and if we were to continue breaking down I would have added again.

But we started to kind of look like we were putting in a little bit of a short term bottom here. You can see a double bottom put in there. Being that I had a starter position on this, I was willing to give it back towards the highs, which was about 20 cents and that’s okay. It was in line with my max risk and I was able to be comfortable with that. So as we were starting to move through, we looked okay. We looked like we retesting and failing, and then I said, “You know what? I’m going to put my stop just outside of the high.” High was 73, I put at 75 and then as quick as that, it hit 75 and I just bailed on the position. All right? Because it was coming back, it was reclaiming. It wasn’t retesting and failing, or at least it wasn’t continuing after the initial retest and fail. So I decided to stop out on that.

And I basically called it a day because I had been at my max loss. I keep my max loss anywhere from a $1,000 to $1,500, just depending on the type of action that … On a day like today where there’s really not much to choose from, I typically will stop trading if I’m at that $1,000 mark. But if it’s a day where there’s action and there might be potential for another opportunity, I will give myself one more shot to see if I can make it. But today I just didn’t see it. The reason I didn’t go long, I didn’t flip sides, is because there just wasn’t much room between where I stopped and the next most major resistance, which was back at that $30 pivot. You had about 20 cents max, 25 cents max into that level and I just didn’t really want to go long back into such a major pivot level.

So I decided just to sit tight with it. It did run a little bit more obviously and get through that pivot and take off. But again, I was at the max point that I willing to do, so I decided to call it a day there. And unfortunately, ending Friday in the red is never a fun thing. But it’s one of those just times where the market is not really favorable. And you try to do what you can, but on some days you’re going to get hit. And the idea is to try to keep those small and even infrequent. So that was a trade on AMD again.

There was a big technical point here that I was playing off of to try to see if we could get a fast flush. And again, the market, you can see here, it was lower. We had gap back down and we started to roll over. It looked good coming out of the open. You can see, right? Right here we had some big retest, some failing, and we started to roll back to the low. We had alignment there. Looked pretty good. Again, just because of the choppiness in the market, things are disconnecting. We’re not seeing that normal momentum we usually do. And it’s summertime, that’s the type of trading that we’ll see. So I made that AMD trade in the red.

The other one I had on watch was this KMX and this one of course made a pretty nice move here. Now the reason you may ask why I didn’t take this trade or why I didn’t go short on it, I had the 85 level as a spot where I wanted to go short. The problem with this, to me, is because you had already pulled off of this 88.50 and we’re down here at one straight move below 85. That’s over a three point move, it’s almost a four point move with any sort of relief. And while yes they can definitely continue, there’s a much greater chance that these types of moves will first whip back, retest then continue to go. So I didn’t want to short it as we were coming through because you basically will be shorting the low. You basically will be shorting into major support and I didn’t want to get caught shorting the low, whip back against me. Plus I had just taken a losing trade, so I didn’t really want to take on any additional risk trying to trade this.

And you know what? This worked out okay, but here’s the thing. You had to wait until it cleared all of this traffic. You had to wait until it came all the way back in below 85, and then to the low was just above 83. So there was some room to get some profit in there, if you switch to the fast timeframe to see what type of action took place on that. It was okay once it got below 85 if you were quick about it. So you had to wait for this entire pull to happen. Right here is where you started to get below 85 and where you could have taken a trade against 85 somewhere in through here and then you caught some decent downswings.

But again, this is where I had just stopped out of AMD at 9.35 or 9.40 I believe, and this was just starting to set up and I was just trying to kind of gather myself after taking that trade. And this price action, it wasn’t that great. It was a little bit risky. Plus, after this big extension move, I just didn’t feel comfortable jumping in. And being the type of week it’s been, I wasn’t really feeling another trade. But it did make it an okay move if you were able to get it through there. You know, we had the level marked out properly.

But again, I didn’t try a second trade just because I didn’t like the action in the market. So just one of those weeks. You can’t expect every day or every week or even every month to be producing huge consistent wins. So there are going to be down times and cyclically, summertime is definitely a slower time always. So you have to realize that. And since it’s summer time, I don’t really take the secondary attempts. If it’s into the fall and we’re in earnings or the beginning of the year and we’re earnings and things are moving, a lot more volume, yeah, I’ll take second and third attempts. But in a market like this, it’s just not the time to do it for the type of strategy we’re trading.

So that’s the recap guys. Again, AMD for the trade today. Unfortunately, a little bit of a loss there. It’s starting to break back down now. Definitely can roll over here, but I’m going to stay away. I’m going to call it a day, call it a week, and we’ll get back here next week and see what action we get. Hopefully it’s some better trading, but we’ll just have to take it day by day. So everyone have a great weekend and we’ll see you guys back here first thing Monday morning.

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