Warrior Trading Blog

Students lock up $77,600.00 on $MBRX and the 40% squeeze


Students lock up $77,600.00 on $MBRX and the 40% squeeze



All right guys, so let’s do our mid-day market recap. Today is the 118th trading day of the year for me. I skipped a couple days, but 118th day for me, and I’m finishing the morning up $1619.82. Now the majority of those gains came from MBRX. After I finished trading MBRX, my first entry was at 165, and it went up to a high of, I think it was 222 or 221. I asked students who traded it and made money, how much they made. Our students who made money on it made a combined profit of over $77,000, which was really impressive, and I’m really proud of you guys who were able to get into this trade, understand the set up, and capitalize on this opportunity. It really was, for me just a go to set up, low risk, so I took the trade.

Now this week so far, I’ve taken a total of … Let’s see, today I took five trades, and yesterday I took one trade. All five trades today have been green. I’m green on five out of five trades, and yesterday I had one trade and I made money on it. I’m six out of six so far this week up around, right over $2,000 on the week, so $2,000 a week is $100,000 a year, and it’s only Tuesday. This is a great start to the week. My focus this week has been on quality. I want to trade the best quality set ups, and having all of you who are part of our five day trial for $5 in the chat room, watching over my shoulder, it’s been really important for me that every trade I take is a really good, clear example of the strategies that I like to trade and the strategies that we teach in the classes.

There are times where I’ll get a little more aggressive, and I’ll get a little fancy, and I’ll take higher risk set ups or more advanced set ups, and those can work out well, but obviously they’re a little bit more complicated. Beginner traders are not going to understand them, so what I really wanted to do this week was keep it simple. The KISS method, Keep It Simple Stupid. I’ve been following that I think pretty well so far this week. The PNL is reflecting in it. Overall it’s working and I’m going to keep it up through the rest of the week. Hopefully we’ll keep seeing really good opportunities in the market. We’ll keep seeing good momentum, good pullbacks, good [inaudible 00:02:39] flags, and that’ll obviously just make this week that much better.

Let’s look at the trade on MBRX. Why did I take this trade? Why did I know this was a good opportunity starting, even at 9:15 before it had made this big move? Yesterday this was on watch because it was gaping up slightly. It ended up selling off a little bit, but then throughout the day moving higher. What I liked about it yesterday was that the daily chart was really strong. For those of you watching on Facebook, this is the chart in MBRX from yesterday, the continuation today up to 220, and this is my PNL, $1,916 on those two stocks.

On MBRX I was watching this … Actually I didn’t even have it on watch this morning. One of our students in our inner circle chat room said, “Hey, take a look at MBRX. It looks good.” I looked at it and I was like, “Yeah, this looks really good. It’s actually the only set up this morning that looks decent.” It wasn’t at the top of my gap scanner, so that’s why I sort of overlooked it. I was watching, and I saw that it had a pre-market high of 170, but then it had this little pivot at 165. Now, I like buying the break over these pivots, because what often happens is that we go right back to high at day. As soon as the bell range at like 9:30 and 20 seconds, I jumped in at 165 on the one minute chart. It pops up to 173, and I was like, “Okay that looks good.” Actually as soon as I got in it popped up to 170, and then it dropped down I think to like 63, and then it popped up to 73. At that point I was like, “You know what? Take your profit, because there’s a lot of times these pop up and then roll over, and the fact that it hesitated there makes me nervous.” I took my profit, which was $300 and I got out.

It forms a red candle, and then all of a sudden it’s like blast off right here from 166 all the way up to $2. On the one minute pullback right here, I took a position at $2 and scalped the move up to 209. Between those two trades, about 300 bucks each, I’m up 600. Even despite the fact that I missed the big part of the move right here. I then said at that point I’m going to get in on the five minute set up, the first nice clean five minute pullback. The five minute is forming right here. We have a high of $2. I got in at 198 for the first five minute candle to make a new high, and it pops up to 205. Again, not the biggest winner, but another 300 bucks, so I’m up 900 … Or it was 400, now I’m up $1,000.

Then the last trade I took was for the high day break, right here on this candle, which was over 209. We popped up to 215. I got in at 208, it pops to 215. That gave me an extra hundred bucks or whatever it was, so finishing up $1,232 on the name. Four trades, really low risk, nothing fancy, nothing super complicated, just keeping it simple. I was really happy with those trades on MBRX, and that’s the stock that students who are profitable on it made over $77,000.

Now, for me to make $77,000 on this, I would have had to take 70 times my share size, so I was trading with 5,000, 10,000, even 20,000 shares on one of those positions. It’s not realistic to multiply that by 20, but one of our students was asking me this earlier, why do I even bother teaching people? I think maybe the implication was shouldn’t I just try to be the one making $77,000? The reality is for me to try to make $77,000 on a trade like this, I would have to take so much risk. I would have to take like 3 or 400,000 shares, which is a massive position. That’s like putting $800,000 into this stock, into this one company. My biggest largest total investment today was $39,000. My smallest one was $5,000. These are low levels of risk that I’m perfectly comfortable with. I would not be comfortable putting millions of dollars into $1 and $2 stocks.

Now, there may be hedge fund and institutional traders who are okay with that, and who are going to be much more aggressive than me, and that’s fine. There may even be students in this room who are more aggressive than me, but I’m perfectly content to hit $1,000 a day, $2,000, $3,000 on a good day, fantastic. $10,000 or $15,000 on some of my best days of the year, that works for me. That’s how I’ve been able to make six figures pretty consistently, so $222,000 last year, and I’m up over $150,000 so far this year. I know that it works, and I know that this strategy can easily be traded by thousands of students and traders all around the world. There’s really no limitation to that.

One of the big motivations for me in creating the Warrior Trading community was to surround myself with other traders, because today for instance, I wouldn’t have seen MBRX if it weren’t for one of my students pointing it out to me. That’s the value of me training thousands of students to look for the same setups as me. Not only are they independently profitable and of course successful and happy, but they’re also helping me be a better trader because they’re pointing out things that I might have missed. When you have 1,500 traders in the room all looking for the same quality set up, the same type of stocks, the same type of catalysts, it’s really hard that there’s going to be a headline in the market and we’re going to miss it. This is the value of being part of this community. You guys are as much a part of it as I am. I mean absolutely.

Anyway, MBRX really solid. Good opportunities on that. Four trades, green on four out of four, up 1,200 bucks on it, so I’m happy with that. It seemed like the majority of traders who made money on it made between 150 and 200, but there were a lot of traders who made 1,200, 1,500 and some that made more than 2,000, so good job guys for capitalizing on that opportunity.

The last trade of the day was on ZN. This one is interesting because last week it made this really big move from $2 to $4. Just kind of out of nowhere it squeezed up 100%. Today when I saw it starting to pop up, I thought, “Okay I want to be able to jump on this quickly because last week it made this big move.” By the time I was really looking at it, it was at 309. It was already moving up quite a bit. I waited for the pullback right here. It hit a high of 328, and then it pulled back down to 321. All of a sudden, 322, I see a 25,000 share buyer. I was like, “Okay there’s someone here stepping up with a pretty big order.

That’s interesting.” I jumped in at 325 for the first one minute candle to make a new high, which also coincided with that big buyer at 22, which was perfect. I added 7500 shares, and we popped up to a high of 338. In fact, I was up about $900 on this trade, but I didn’t sell it because I had a target of 350. I thought if it could break over the half dollar of 350, we might actually have a chance of seeing it go to $4. After all it just popped up from 290 to 330. It gave me the indication that it had some strength and maybe could make a bigger move.

Ended up not seeing that bigger move, and I stopped out with profit at 331, capturing $387, so I gave back about half of my gains on it, which to me is perfectly acceptable. You hold some for the bigger move, it doesn’t work, make sure you stop out and take profit off the table. Very happy with ZN, and that made it my fifth green trade of the day, and my sixth green trade in a row. Yeah, sixth green trade in a row, so that’s fantastic. My last trade on Friday was a loss. I lost $45. Not a big loss, but a loss nonetheless. Anyways, at this point here, we’re coming into the lunch hour, things are slowing down, so scaling back on my trades. At this point most likely throwing in the towel. I know that I’m the most profitable in the morning, 9:30 to 11:30, that’s when I’m in the zone. If I try to trade when I’m outside the zone, I end up getting complacent, I end up getting sloppy and making mistakes.

I see you guys mentioning CBI, Chicago Bridge and Iron. Definitely a big move on this stock. It’s up three and a half points, from 15 up to 18. A little outside my go to price range, which is why I didn’t trade it earlier. I thought the risk was a little too high on it. Now of course it’s already up so much that it feels like it would be difficult to manage risk. To the long side, it’s up 30%. You could start to take a short bias on it, but you just have to be careful. What are levels of resistance on this? To me, I don’t see a lot of obvious resistance on the chart, until sort of the $20 area. Does that mean … I mean maybe a little bit in this area here, possibly around 19. We’ll see what it does, possible reversal set up, is it on the reversal scanner? It’s not at the moment, but it is obviously pretty extended, so definitely one you could watch, but just remember 13.5 million shares of volume up 30%, it’s strong. If you get on the wrong side of that when it’s still moving up, you’ve got to be able to bail out quickly.

For me, if I’m able to hit $1,600 in the first hour on what I feel are low risk set ups, then this is not a trade that’s worth taking. My confidence in it is not high enough for me to want to short it, and I don’t see an opportunity here to buy on a pull back. You could let it consolidate and see what it does, but there are times where you’re never going to hit every single stock that’s moving every day.

If you can capture a little bit of one move and a little bit of another move, and you’re walking away green consistently, you’re doing something 90% of traders can’t do. I know that there’s this instinct to feel like, “Oh man, I’m missing this. It’s up 30%, how did I miss this?” I’m up 1,600 bucks. There’s no reason to beat yourself up, get bent out of shape, or get yourself into the chasing mode where now you’re buying this up at 1880 because you think it’s going to go to 19, because it’s been so strong and the next thing you know, you’re down 40 cents and you just gave back that $1,500 of profit that you had. Just as quickly as you make it, you can give it back so try to be smart on that.

That’s about it for today. Again, today for those of you who are not already part of the five day for $5 trial, today is the last day that we’re going to accept students. We’re going to close off the sign up page this afternoon. All right, so if you guys want to join us for the rest of the week, we’d love to have you. If not, you can keep watching on YouTube or Facebook, or whatever. That’s it for now. I’ll see you all first thing tomorrow morning. All right, thanks guys.

Oh hey, I didn’t see you there. Well I was just working on the dream board for my next home run trade. Hopefully it comes soon. Until then, make sure you subscribe to get email alerts anytime I go live or upload new videos. Until then, happy surfing.