Warrior Trading Blog

+$3,926.45 on 2 swing trades & 2 day trades!

swing trades

+$3,926.45 on 2 swing trades & 2 day trades!

All right, let’s do our midday market recap. We’ll go over the trades from this morning. Today ended up being a surprisingly good morning for a Thursday. I really didn’t have high expectations today partly because it hasn’t been the most impressive week but I did take two swing trades yesterday around like 3:30 kind of going into the close. The reason I did that is because you know I trade in the morning, lost some money, had some lunch, came back, and I was just flipping through charts looking for set ups. I ended up seeing two really what I thought were really good set up so I was like, “Okay, well, it’s 3:30 but I’ll take these,” and basically look for a possible gap up tomorrow and sell them tomorrow or Friday.

I sold both of those and cleared about $400 overnight on those two trades. I’ll go over those in a second. The big trade today was on FENG which has been on my watch list for a possible swing trade but I was a little nervous about it because of the day back here on the 6th where it made this false breakout. It popped up and I couldn’t hold those levels and it dropped back down so because of that I was like not sure if I would really want to take this as a swing trade but I was definitely watching it over $5. That was the one that I ended up doing really well on this morning, making about $3,000 on that trade. I’m finishing the morning up $3,926.45.

Now, my P&L here, the 3,700, what I’ve realized is that because I was already green on two of the swing trades from overnight it’s calculating my inter day profit versus the starting profit. It’s almost like it’s not factoring in the $240 that I was already up on coming into the day. Then down here is the total P&L. This happened once before when I had a swing trade overnight and so now I understand why it’s doing that. Okay, why don’t we start by going over the two swing trades and then come back and look at FENG. All right, swing trade number one was GRAM, G-R-A-M.

When I was scanning yesterday I saw this one as a daily flag and I looked at it, I was like, “This is a really nice looking flag.” I mean, it’s exactly what I look for. For those of you who are on Facebook, let’s see, let me turn this around and show you right here. That’s the flag that I was looking at yesterday. When I saw that I was like, “Yeah, that looks really clean.” The high of the flag is 443 so I can get it in this thing here at 432 which was my entry just below High Of Day and the target will be 450. Stop will be probably around 417 so I’m going to risk about 15 cents on it. If it goes up to 450, ultimately we want to see it go up to 460, 470 and continue, not just hit the high but actually breakout off that level.

Today, we ended up hitting a high of 458 which was pretty good. I didn’t sell at 458 but it was coming back down and unfortunately now, it looks like a doji candle which is a little disappointing. I was hoping it would hold that level but you can see here on my P&L $444 from GRAM. Then NDLS, the second swing trade was $36.50. There’s my total P&L on the day, $3,926.45. GRAM, it look decent. I mean, it was a really good set up. I would have hoped it had held those levels a little bit better. It was kind of strange how it just suddenly popped up at 58 and then faded off that level. I would have been better if it did sort of a slow and steady move up instead of this quick pop.

In any case, that was GRAM. Ended up taking profit as it came back down because then it was starting to form a doji candle and I was thinking that I didn’t really want to hold it overnight the way it’s looking now. It’s starting to look like it’s turning around. I took my profit on that one. I was up about, I took 5,000 shares yesterday, 2,500 and then added another 2,500. Yesterday’s volume was 330,000 shares and I took the trade at like 330 so it was like 300,000 shares of volume when I got in which was light but I wasn’t super concerned about it because I was holding it overnight. That was GRAM. NDLS, this one I liked as well because we had this little flag here right under 490. I’ll show this to you guys as well.

On this one, we were breaking over the 200 moving out. We’re looking like we’re breaking over that level and so I was like, “Okay, I can get in this at 485,” which was my entry yesterday. Then, the target will be to break, to see it break $5. It ended up today hitting five and then rolling over. I was concerned that might happen and that’s why I took only 2,500 shares. I was concerned because we had a little bit of resistance around the 200 back here in April, May, but I thought the way it was curling up here that we were maybe set up to make a move up towards 550. I took a little risk on that one and ended up only losing $36.50. No big deal on that. Not going to sweat it.

All right, those are my two swing trades. A couple others that I was watching. I had SGMO on watch. This one in the therapeutics, these kind of bio tech stocks can be a little riskier but I do like it. It looks pretty clean the way it’s been moving up and up. I am watching this one. I’m also watching ABEO. Similar type of set up. Also, therapeutics and MYGN, another kind of similar set up. this one is a little higher price at $32. I mean, this all are with higher price but they just happen to be the ones that are still looking good right now. Okay, we’ll see how those look I don’t know, going into the afternoon or whatever. Then, two trades today. The first one was on FENG and this one, it was a surprise, even though I had it on my watch list, it was a stock I kind of had my eye on.

I didn’t think today would be the day and then all of a sudden on my high day momentum scanner 942 and 40 seconds it pops up at 497. I looked at it, I was like, “That one is a name I’m familiar with.” I took a peek and I was like, “Yup, this is a stock that I want to get a piece of.” Let’s see, I’ll switch this to the one minute. On the one minute chart I took my starter position on this right at 497 and $5. I started with 5,000 shares and then I went up to 10,000. On this one, I felt like, again, really confident because of that daily set up as we were breaking this pivot at 497. Again, I’ll show this to you guys. This was the daily flag set up. Of course, this is a stock that now form a runner.

I mean, it made a move in one day from what was it, $2? This day it was from $3 to $4 and then all the way up to a high of 525. As it’s consolidating here, I’m thinking this one has a potential to move higher. What’s interesting and of course the first day was driven by earnings announcement. Now, what’s interesting is that this stock has a 28 million share flow. The flow is a little bit higher than some of our typical former runners or parabolic stocks which is a little bit of a factor when it comes to supply and demand because this is a pure technical breakout. There’s no news on this. This is just technical but you can see you have this long period of consolidation, coiling, and then, it tried to break out and failed and now today it broke out and has succeeded.

It was hitting 497, I was like, “Yup, that looks good,” and I started jumping in. I jumped in this as you can see here, 5,000 shares at 98, 5,000 at 99. I tried to add 5,000 at 510 to go up to 15,000. I only filled 37 shares. It moved up just a little too fast. Then I added another 10,000 at 511. That gave me 20,000 and 37 shares with an average of 405. I think it was 405 was my average. I put an order out to sell a quarter at 448, just to put the order out there but that didn’t end up getting filled. I started selling as you can see here 424, 420, and 416. I kind of regret selling as much as I did as early as I did but let me show you the reason I did that.

On the one minute chart, and I’ll make the one minute chart maybe a little bit bigger here. Let me pull this back down. Okay. On my one minute chart I’m in here at 98. Now we have a little micro pull back and I added right here at 509, 511 so now my new average was this line in the middle of 504. Let’s just say right around there. We pop up to 513 and you know, with this kind of size I’m up like 1,900 bucks and then we drop down to 503 and I’m down 200. We pop back up to 515 and we drop back down to 506. During this period, we’re kind of basically pin bowling between $2,000 of profit or breakeven.

I knew that if this did drop to 404, 403, or 504, 503 and I had to sell it 505 or $5 that I probably get slippage because I had pretty big size. During this period I was a little bit, it felt touch and go and I was like, “Okay, this might now work out.” It pops up here to 518 and I’m like, “Okay, I’m up 2,200 bucks, 2,400 bucks.” Then here it drops down to 503 again and again I was like, “This might not,” I don’t know, it looks so good on the daily chart, this daily breakout looks so strong and yet it feels like it’s struggling here. That’s when I started saying to myself, “You know what, Ross? You lost 1,500 bucks yesterday. You’re up 2,000 on this when you’re at 515. Maybe you should start to think about taking profit.”

It’s sort of bouncing here between 518 on the high and then again, dipping down to 508, low of 505. During this period I’m just holding. This is like ten minutes I’m holding and it’s like the moment of truth. Is it going to work? Is it not going to work? You can see on the five minute chart, that was this three candles, these three doji candles right here. I was like, it’s flagging here but at the same time we are a little bit extended off the nine moving average. It’s not perfect. I don’t know if it’s going to work out as well as I want and then I just said, “Well, hold on to it,” and boom, as we broke through 515 [inaudible 00:12:27], a 157,000 share is the volume.

On that break right there, we had a 20,000 share seller sitting on the ask at 520. I saw this guy, I’m like, I don’t know, he’s maybe trying to short the stock and he thinks it’s going to tank and he’s trying to hammer it. I’m like a little worried about that guy up there. I just wasn’t sure if it was someone selling or someone trying to short it. As we broke through that level, we hit 524 and 525 and that’s when I was like, “Okay, I got to start taking a little profit on this one.” You can see here that’s where I sold at 524 and then I just hit the bid at 520 because that order wasn’t getting. I only filled 400 shares. I’m still holding 19,600 and I’m like, “I got to lighten up.”

I hit the bid at 20 and I hit the bid at 16. Now, that 7,000 shares at 16, you know, only $700 of profit and you can see here how we popped up to that high of 23 and then we drop down to low of 15. I kind of bailed out as it was dropping but at that point I was thinking I don’t know if this is going to work out as well as I thought it would because I didn’t get in it expecting to be sideways for 15 minutes before it would start to open up. I thought it was just going to go pretty much immediately to 525, the high of the flag and then to 550. Right away I was a little nervous but I scaled out down to around 2,000 shares basically through this move. I booked about $2,500 of profit.

I was like, “You know, that’s good.” I was hoping it would go to 550 right away. It ended up getting to 550. On this one, I asked myself, “Did I sell it too soon? Should I have held it a little bit longer?” I ended up selling the last of it, let’s see, it was right around … Sold some at 27 or 21. I think I sold the last of it around I don’t know, 530 or something like that. I’m not sure exactly where it was. In this case, if we were in a stronger market I think that this probably would have gone to 550 pretty fast because traders would have been more eager to jump on it. They’d say, “Oh, stocks are breaking out and it’s a great daily chart. We’ve been seeing really strong momentum.

I’m going to jump on this quicker and I’m going to take bigger size.” You multiply that by 100,000 traders out there and suddenly stocks are squeezing and moving a lot faster. I think that in a stronger market this would have moved faster. I probably would have made $10,000 on it. I would have hit my first profit target of 25 and then got them right to 550 pretty quickly. Maybe this would have gone to six or higher and maybe it still will this afternoon or tomorrow. I’m not sure but we seemed to definitely be in a market that’s a little bit more sluggish and I think that it’s smart to be more protective on capital in this type of market. Not to hold and hold and hold because how many times have I done that and then I end up giving back $2,000.

You know, today, if I ended up having a stop out of this at $5 and getting filled at 495, I would have lost two grand on it and I would have been like, “God dang it. I was up 2,400 bucks and I lost 2,000.” That’s so silly, I have to pay myself, I have to take the profit. That’s where I’m at today, $3,900 because I took the profit. Could I have been up 8,000 or 10,000 if I held it longer? Well, I wouldn’t have gotten 10,000 but maybe I could have gotten 8,000 on that final push right there. Sure, that would have been nice. I mean, obviously it would have but I trade for income. I have to be able to take profit because I just don’t know when I’m going to be in some of this trades and I’m going to be up 10 or 15 cents and then all of a sudden it goes right back to breakeven.

Sure, there are the times like this one where I was up 15 cents and then it end up going up 30, 40, 45 cents which is awesome but we’re not in the market where that’s something that I can really count on. It’s making me a little bit more protective of the capital and a little more conservative about selling sooner which is unfortunate because it does cut my winners a little bit as you see on this trade. At the same time, $4,000 days are really solid. If I can do that tomorrow and a couple times next week, I’m going to be very quickly in better shape on the month. Today is our 168th day of the year and I’m finishing the morning 3,926.45. That’s a nice green day and I’m hoping to see more of those.

One of the things that we’re talking about in the swing trading course with students is the fact the value of being able to identify a really good swing trade set up and spending a little bit of time at night looking at some of these charts, the value is that often times the best day trades are based on good daily set ups. Now, that’s not always the case because we have stocks that have bad daily set ups but have breaking news and stuff like that. LMFA is a trade that I took today and made $567 on. Not really a very good daily set up. This was just a very volatile stock that for whatever reason was squeezing up a lot so I just jumped on that momentum.

I got in this at 384 and we had to move up to a high of like 436 or whatever. That one wasn’t the best daily chart. I wouldn’t have taken 20,000 shares on it. I wouldn’t have felt comfortable doing that. On the stock like FENG, when you’ve got that good daily chart, that’s where home run potential comes from and this could have easily been a $10,000 winner in maybe a slightly stronger market. On this same exact set up on the stock, maybe with a slightly lower flow that is just a little bit more volatile. We’ll find that, that will happen. Spending a little bit of time looking at the scanner that I run as I look at stocks that are up more than 25% in the last 20 days and then I just sort by the highest gainer. I’ll just pull this up here for instance so you can see one of these scans.

I have a couple more filers on it but you can just scan using very basic filters and just start to look at the stocks that are up the most. Here’s NLNK. NLNK is up there at 77% so I’ll just drag this down. These are stocks in the last five days and sorted by biggest gain. CETC is up a lot. Then I just flip through this charts, I just look, “Okay, ZAIS, how’s that look? Is this setting up yet?” It’s a little extended off our nine moving average and I’m looking mostly at the daily chart, not too much at the five minute. Next one down, NLNK. Maybe we’ll form a flag but it’s way up and then way back down. I just keep looking, keep looking, keep looking and eventually I end up seeing one that I like. Sort this by alphabetical here.

I’m not sure, FENG isn’t actually on this. Maybe the scanner, and this isn’t the one I found it on. I found it on one of my other ones but it might be because the last few days it hasn’t actually made a very big move. That’s probably what it is. Change in last five days, again, you just flip through, look for good opportunities, look for good flags. This one, TOO was okay as it broke through the 200 but has now gotten extended. You just do a little bit of research at night. You see a good set up and maybe it’s a swing trade and then you know what? Sometimes the best swing trades are ones that inter day you hit 20, 30% and sure you want to hold a piece of it overnight, that’s fine but you don’t have to because inter day you totally hit your profit target.

That’s kind of my process right now is just looking for really good daily set ups and then when I see them hit my scanners, I’m already familiar with the potential of that stock so I’m going to jump on it that much faster. Okay, so anyways, that’s it for today. Those of you watching the recap on YouTube or on Facebook, you guys can put comments below and I’ll come back and answer them later this afternoon. Everyone else, I’ll see you first thing tomorrow morning and hopefully we’ll finish off this week with another really strong day. Okay, that’s it for me. I’ll see you all first thing tomorrow morning.

All right, bye guys. Hey, I didn’t see you there. While 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.