Warrior Trading Blog

Thankful Thursday +$5.4K Going to Local Charities | Ross’ Trade Recap

Ross_8.29

What’s up, everyone? All right, so here we are. We’ve almost made it just about to the end of August, and boy, this has been such a turnaround story for me. From down $10,000 on the month on, I think, the 14th, so almost to the halfway point. Now I’m up $40,000 on the month. As of today, another $5,000 of profit, so $50,000 turnaround in the last 10 days of trading. That’s what momentum is all about. Hot streaks, they’re always clustered together, these winners back to back to back to back, because when the market is hot, we’re seeing huge amounts of volatility. We’re seeing huge amounts of opportunity, and that’s when I make the most money.

When the market slows back down, things become kind of just a little flat, or we don’t see as much volatility. Even if you want to be really aggressive, there’s just not as much to trade, and so you just kind of have to wait and make a little money while you’re waiting. But then, when things pick up, that’s the time for me to bring out the big share size and start to be aggressive.

So this month really feels like a blessing to hit my $40,000 monthly goal on a month that not only did I totally not expect it, but that I was actually down $10,000 on the month at one point. And so, in this kind of spirit of Thankful Thursday, being mindful and grateful for the success that I have as a trader, for the amazing opportunity to teach all of you guys my strategy, I want to lead the way by giving back every penny of today’s profits to a couple of local nonprofit organizations: Berkshire Bounty, which is an organization that helps provide food for those who need food; Berkshire Agriculture Ventures, which helps local farmers get up and running, which is one of these things like shop local, local food, no farms, no food. And then the third, the Berkshire Humane Society. So for the pets that don’t have a home this summer and need a little bit of support in the transition or whatever they’re going through, I want to help those guys as well.

I think the thing here is to lead the way, and to show you guys that when you’ve achieved success as a trader, which I hope happens for many of you, that you give back some of that success. You send the ladder back down in the form of helping beginner traders who are trying to find their path to success, and helping other organizations out there that can use the support of folks that have found some success in life.

All right, so that’s it for today. I hope you guys enjoy the recap. As always, questions, comments, leave them below, and I’ll see you first thing tomorrow morning.

All right, everyone. We’re going to do our midday market recap here. I’m just going to pause or mute those alerts because I don’t want to hear them right now. They’re going to distract me. We’ll break down the stocks that I traded this morning. Today’s been a pretty solid day, up $5,407 … Well, rounding up $5,406.96, but let’s round up for charity, and that’s only an extra four cents. But in any case, $5,407 today, that’s my profit, and so for Thankful Thursday, last Thursday for the month of August, I’m going to give all of this to some local nonprofit organizations.

I think one of the things, as I was just saying, that’s really important is, you guys are going to find that when you learn a strategy that is consistently profitable, and you start generating a significant amount of profit, it’s the right thing to do to give some back. Making $5,000 a day? This is a million dollars a year, when you’re hitting $5,000 days. This is a lot of money to be making, and it’s certainly more than most of us need to live a totally comfortable life. There’s a lot of people out there that are struggling, and even an extra $50 a day would make a huge difference. So, this August, I’m going to make a couple donations.

Last month, in July, I donated to Danny & Ron’s Rescue. We talked about this. This was the Netflix documentary, which was really terrific, and I was happy to make a donation to their rescue organization for animals. And I donated to the Berkshire Humane Society. This month, I’m going to donate to the Berkshire Humane Society again, but also to Berkshire Agricultural Ventures and Berkshire Bounty, two other local organizations. And these are really … This is about providing food to those in need. So trying to do something a little special here as we come to the end of the month.

This has been a real surprising month, a turnaround story for me. I started this month by promptly losing $10,000, so I went into the red by 10 grand, which was really disappointing, but I ended up bouncing back. I had a nice bounce back, and as of today, I’m going to be sitting up $40,000 on the month. This is my profit before this morning, so $35,000, now plus another $5,400 right here, which is not bad at all. And you can see, this is my P&L from the month: red, red, red, and then the last 10 days, $50,000. From down 10 grand, now to up 40 grand on the month, so a real turnaround here.

Okay, so let’s talk about the stocks from today. This is an interesting day, because today, I didn’t have a strong sense of what was going to be working as we came into the open. The leading gapper this morning was ROX, R-O-X. However, this stock, trading sideways on a buyout. So the company’s been bought out at a $1.27 and it’s trading at exactly that amount. It’s just going sideways, so we’re not going to trade this. There’s no volatility. We profit from volatility. It’s up 90%, which is awesome, but it’s not going to give any opportunities for additional trades. So that’s ROX.

ARCI, second leading gapper. This one I didn’t really trust. My issue with this one was primarily that it had this big sell-off two days ago where it squeezed up, it didn’t hold these levels, did a total reversal, came back down, from $9 back down to $3.96. I mean, really terrible. So, as it was gapping up today, I really just felt that this was going to be, at most, a small bounce off the lows. I just didn’t think it would be anything really impressive. And the only opportunity on it that I kind of missed, I suppose, there was this little break over $5. It hit a high of $5.08, and then dropped down to $4.75, so it didn’t hold that level at all. So that was a failed breakout.

It then came back up a second time right here, broke $5.08, and it did end up squeezing to $5.53. Did a little one minute pullback here, rejected, and sold off. So this was an opportunity. However, at the time, the stock was below the VWAP, the volume weighted average price. It was below the moving averages. It was, to me, weak on the daily. And I thought, “You know what? Right now I need to be the spear fisherman. I need to be looking for that perfect opportunity, and this is kind of a small fish. I could take a swing at it, but while I’m focusing on that, I might miss a better opportunity and I might end up making a mistake and having an unnecessary loss. So I’m going to just leave that one alone.” So that one I just set aside. This one was too expensive. This one didn’t have enough volume. CPAH, I said, “I’m not really into that one because it’s too cheap.”

Now let’s look at my metrics year-to-date. Year-to-date, coming into today, not including today’s profits, net profit $306,000. Gross profit, before commissions, $361,000. So my brokers made $56,000, or $54,000 and that’s because I’m a pretty active trader, so that’s just part of the deal. 70% accuracy, which is nice. And price and volume. Look at how much money I make on stocks under $2. This year, only $5,000. Not a lot. Most of my profit has been on stocks between $2 and $4, $2 and $5, and on stocks between $5 and $10. Above $10, I’ve made money, and those have been on the days where stocks usually open the day at like $7 or $8 and squeeze up to $9, $10, $11, $12, and move higher.

The couple of trades I’ve taken on stocks between $20 and $50 have been, again, ones that were in the teens and just kept going higher and higher and higher. And fortunately, I know my wheelhouse, and I stop trading above this price range and I don’t go below a dollar, so this is where my profitability is pretty much. And when I saw CPAH, I pretty much looked at it and thought, “It’s below two bucks, not really worth taking any trades on. This isn’t going to be a particularly strong trade, so I’m going to leave that alone.” So left that one alone and, in fact, it did end up making a bit of a move here from $1.40, a little pullback here, $1.58, and then a squeeze up to $1.79, but I sat on the sidelines for it. So that’s fine. Left that one alone.

Going down the scans further, so this was off, off, off, off. Nope. SFET was the same. It’s too cheap, so I wasn’t interested in that. Oops. So I left that one alone. This was too expensive. And so, basically, you can see the top 10 gappers. None of them looked good for me for a gap and go trade.

Today, I was watching the high day momentum scanner, and the bell rings, the market opens and we see CPAH hitting the scans. RKDA pops up. RKDA, I thought, “Well, first daily candle to make a new high is over $8.50. There’s a possibility there, but I don’t know if I’m really into it. I think I’m going to leave it alone.” So I left that one alone. ARCI was on the scans. This more expensive one was on the scans. This one was on the scans, TWMC, but it was selling off, so it came up on the scans as it bounced off the low, but that wasn’t hitting new highs. Below high a day is the filter on that scan.

ARCI, on the scan again, was sitting on the sidelines for that. VTSI. VTSI I did end up trading, but not the first time it hit the scanner. It squeezed up from a low of $2.25 all the way to $3.00, and then it pulled back. I bought the five minute breakout right here, talk about that in a second.

Then MTC hits the scanners. I see it, and the first thing I see is, it’s hitting two of my scanners at the same time. It’s hitting my high volume, low float scan, and it’s hitting my former low float momentum stock scanner, so hitting two of them at the same time. Now that, for me, is usually a pretty good sign of strength. So I pull it up, and as I’m pulling it up, I’m already bringing my mouse here and typing in MTC and I’ve got my hand on the buy button. All I need to do is look at the daily chart, and I remind myself, “Yep, former runner. This is the day where it went from $2.50 To $13. We are in a hot market right now. It is squeezing up. It’s already up 15%. It’s a former runner, history of making big moves. The daily chart is okay. It does have the 20 moving average here, but I think it’s worth a try.” So I jump in.

Now, I’d also quickly noticed that it had a squeezed from about $3.50 up to $4, so buying as it broke over $4, and into the circuit breaker halt, which was at … Let’s see, where was the halt?