Warrior Trading Blog

The Grind Continues -$1,900 | Ross’ Trade Recap

blog_ross_recap_08_21

What’s up everyone? All right. So here we are, Tuesday and it is the second Tuesday in a row that I’m having a red day.

 

Yesterday I didn’t trade at all. Today, I get back into the market and I lose 1,900 bucks. So that’s not what I wanted, but you know, it is what it is. August is a little bit … continuing to be a grind for me. Second worst month of the year and I’ll just be really happy to have behind me and to be on to the month of September. So right now, I’ve just gotta stay disciplined, try to keep the losses small, which relatively speaking I did. I didn’t go off the rails and do something crazy. I just had two trades, two losses and that was it. So frustrating market, but the good news about being kind of in the low of this cold streak is that you can only go up from here. So looking forward to momentum coming back into the market. All right. Any questions, any comments on today’s recap, leave them below and I’ll see you guys first thing tomorrow morning.

All right, everyone. So we’re gonna break down the trades from today. Today is gonna be red day recap, which is a bummer. It’s been a tough month. I mean there’s just really no way around it. I was red last Tuesday, down 1,400 bucks. I’m red today, down 1,900 bucks. So it’s just … this is … It’s a difficult market. Right now I’m back to down about 2,000 on the month. This is my … let’s see, fifth red day of the month. Yeah, one, two, three, four, five. So I’m kind of at the top of my number of red days that I can have per month. I try to keep it under four, which would be about one red day per week. And so being at five here with still two, four, six, eight days left in the month isn’t great. I need to really have … I really need to have a strong week this week and a strong week next week to get myself back into good shape for the month of August. And at the moment, it’s not looking good. I didn’t take any trades yesterday, so zero profits, zero loss and then today I’m down 1,900 bucks.

So we’ll get the trades from this morning. I only trade one stock and I think today’s an example where it kinda goes to show how quickly with one trade, you can give back a good chunk of change. I mean you can lose 2,000 bucks like that and in hindsight, maybe I would have been better off not trading at all today. So GEVO was the stock I traded this morning. It pops up on the scans. I’m not super crazy about it. However, you know that it’s a stock that’s a former runner. It had this really big move not that long ago, recently it’s been kind of consolidating lower. Today, it starts to pop up a little bit, had a pre market high of 3.50. I first tried to get into this one at 3.55 right here for the break of this little one minute flattop breakout, little wedge right here. So I’ve put the order at 3.56, 5,000 shares. I don’t get filled. It pops up to 3.70. So I’m like, “All right. That’s looking pretty good.” Consolidates for a second, I get in right here on this break out at 3.68 or actually 3.70, 3,225 shares and it drops down to 3.58 and I stopped out at 3.61 for a $225.00 loss.

So kind of a bummer there. It consolidated sideways, it actually ends up popping back up. And so I get back in here at three … What was it? 3.79 right here. It pops up to a high 3.80 pulls back, double tops at 3.80 and then I’m stopping out right here on this drop and trying to actually get out mostly as it pops back up. So those were my two trades, two losses back to back, 9,000 shares on the second trade. Maybe that was too much size, it probably was. Stopped out at 60, 59 and 61. So I didn’t sell at the bottom of the drop. I let it pop back up, that reduced the loss somewhat. But just like, that 250 down on the first trade, 1,700 on the second, that’s 1,900 bucks in the red. Of course, what’s frustrating on this is to see it come and pop right back up to 3.89 a moment later, but there was no reason to think it would do that. That’s not a very logical setup and then it just continued to fade.

I’ll switch this to the one minute chart. We were … I was just showing people something earlier this morning on the 10 Second. So anyways, choppy action there, chop, chop, choppy. Kind of a bummer, I … Again, in hindsight it would’ve been better off not trading at all today. I thought … What made me willing to trade this stock was that I thought it had the potential to make a twenty cent move, 15, twenty cent move and unlike some of the stocks yesterday that didn’t … I think really had a lot of potential. This one I thought had potential being a former runner, a lower float stock, popping up. So the entry of 55, that made sense, pops up, holds the level. So I get in up here, it does a one minute false breakout. So that’s a bummer. I get out quickly, small loss and then I get back in kind of aggressively up here and then get stopped out on this … sharp drops.

So I just didn’t really trade that one super well, so it’s kind of a bummer. But … And then that was it. [inaudible 00:05:59], this one popped up, got halted on a circuit breaker, tried to take a scalp at $4.00. It popped up to a high of 4.10, dropped back down to 3.60, not very clean there either, and there was really nothing else. CRON, this one some traders we’re talking about today. I wasn’t interested in it. I saw it on the gap scanner gapping up, but it’s 150 million share float. So it’s much more crowded than what I’m typically used to and I just didn’t expect it to be clean. Open, popped up, sold off, squeezed up, sold off. I don’t know. There was volatility there, but I’m not sure where I really would have traded it. Maybe this one minute pullback at 8.60 for a move up to 8.70, 8.75 probably wouldn’t have been a home run.

TNXP, this one choppy. It’s just kinda been in range today, not really doing a whole lot. I’m not sure why my charts are funny. But yeah, you can see it’s kind of in range. It was selling off a little bit pre market, pops up a little bit but not really giving us big moves. So for me, in order to make decent money, I really need stocks that I think can very likely go 15, 20 cents and have the potential to go 40, 50, 60 cents, maybe more. GEVO I thought had that potential being that it’s a former runner, it’s been kind of beaten up for a while and maybe it would start to take off and really open up. Not uncommon to see that happen, today wasn’t the day. TNXP, I didn’t think it had the potential to make a really big move, so I just left it alone. CHFS, that was on the scans earlier, didn’t think it had a lot of potential either. So I left that one alone.

So August no doubt is for me, been the second most difficult month of the year. Historically August has been a difficult month for me in the past. So it continues to kind of frustrate me and again just based on the fact that August has been tricky, I probably shouldn’t have taken 9,000 shares on that second trade on GEVO. Even if I saw an A quality setup, the fact that that setup is occurring in the month of August means it’s not A quality because there’s … August doesn’t give us A quality setups. So anything that at best is B quality and this is where during the classes I’ve been re-watching recordings of me trading and sometimes I’m like, “Why was I adding there? That was so aggressive. That was a stupid trade.” On this one, I got in with 6,000 shares. It dropped down and then I added 3,000 for the break over 80 and it immediately dropped. So I was stepping up to the plate and adding back on this one minute pullback and that was obviously the wrong move. But the fact that I was in the stock and was down when it came back up, I should’ve just gotten out and break even. Right?

The fact that … The best setups work instantly and the worst ones you get in and they drop instantly. If they do pop back up, it’s an opportunity to reduce the loss or get out flat. It’s not a good time to add, but in the heat of the moment, frustration, the fact that I didn’t trade yesterday and I’m really wanting to try to find a good opportunity and that I’m already down 250 bucks on the day. That starts to be on … kind of talking in your ear saying, “Yeah, add on this, has the potential to go up to $4.00. You’re at 3.80, it hits 3.85, 3.88. Next thing you know, you’re gonna see 3.95, $4.00, 4.05.” Grab the 10,000 shares, scalp that for 10, 15 cents, you’re gonna get your $1,000.00 daily goal.” And all of that is thinking about your potential, your potential, your potential, and the part that’s saying risk, risk, risk is just quiet. And that’s when you know you’re starting to be more emotional and you’re trading more from that perspective. And we all deal with it, even with years of experience, you’re gonna deal with it.

If you’re someone who never experiences emotion while you’re trading, I’d like to meet you because I’ve never met someone who’s like that. It’s just … It’s something that we’re all going to deal with at one point or another and you may have months where you have really good composure and then you do something where you’re aggressive. And I’m not going to say that I … GEVO … Like I’m not beating myself up for it. I’m down 1,900 bucks. I didn’t blow past my daily max loss. I was close to it, but it didn’t go below it. I didn’t take a five, $10,000.00 loss on it. I didn’t go crazy. I didn’t throw 15, 20,000 shares at it, but it did take a little bit more risk than I probably should have, and so that’s a little disappointing. But again, it’s keeping things in perspective. I’m still the trader who made $117,000.00 in the month of January. I’m the same person. Now this month I’m down two grand. I was break even before today, now I’m down 1,900 a month.

So what’s different? I’m still the same person, I’m still the same trader, so the market’s different and that is the case. We’re in a little bit of a choppy market. So you’ve gotta kind of remind yourself of that and give yourself a pat on the back and say … like Selena said earlier, “Every day you’re sitting in the chair, you’re gaining experience.” You’re becoming a little bit .. just more … I don’t know. You’re just gaining more experience and that’s a good thing. Some days you’re gonna be on the right side, some days you’re on the wrong side. Today I’m on the wrong side, but I’m still up 364,000 or 362,000 on the year. It’s been a great year. A little bit of a setback here the last couple of weeks, kind of just grinding. I lost about 12,000 over the course of three days, so that was the start of August. I’ve then been grinding my way back up to break even. So I’m at breakeven and while today I’m down two grand. So I’m still kind of in this chop and obviously I’d like to get myself to green on the month. I’d like to get myself up 10 or 15, maybe $20,000.00, but I need some really good opportunities to get there. If we don’t have those good opportunities, it’s not gonna happen as much as I’d like it to.

The end of … Well I started June down 16 grand and I finished up 36,000 because in the last two weeks, I made 22,000 on week three and 26,000 a week four. So $55,000.00, 50 or whatever in … 50,000 plus in two weeks of trading. When the market’s hot, I can stack up the profits and I can be aggressive and I can make a ton of money. But when the market’s slow, it doesn’t matter how much size I take, it doesn’t matter how aggressive I want to be, if the opportunities aren’t there, they’re not there. So it’s tough. We don’t come here to sit in and lose money, but everyday you sit here, you do gain experience and that’s what’s really valuable. So I think the lesson from today continues to be August is choppy, wait for something to really show strength. I thought getting up here … getting it up here at 70 by the fact that it was this strong was a sign of strength. So this was a good setup but it didn’t work, dropped down. Then of course I thought it was strength that it popped right back up despite that drop, so I was willing to get back in now thinking closer to $4.00 but couldn’t quite do it. So that’s the way it goes.

CRON, there was a little activity there. GEVO of course, if it does end up breaking $4.00 today, whatever. That’d be a little disappointing that I managed to lose on it, but that’s just the way it goes sometimes. [inaudible 00:13:45] didn’t hold up, so hopefully we get to the other side of this quick. I mean the nice thing about being in a slow market like this is that you know what comes next is things pick up. So when you’re at sort of bottom of the lull and things are slow, you can be bummed about it, but on the other hand, you know that around the corner there’s gonna be another really hot stock. It’s been now almost well three weeks since we had that strong momentum on AWX. That was kind of our last big really crazy stock. Yes, we had CVSI yesterday, but that’s the OTC and most of us don’t trade OTCs, so leave that one alone. CRON, yeah I mean decent move the last two days but not crazy parabolic. So I wouldn’t say that one’s really it.

So things are coming and it’s just a good time to study up, be prepared and when we do see that one that really shows strength, make sure you’re ready to capitalize on it. That way you get right back into it and realistically losing 12,000 even though … Well I guess now in the last three weeks, I’ve lost a total of $2,000.00 net ’cause that was breaking even until today. So if in three weeks I am breakeven or I lose two grand, that’s the part of my equity curve where it’s up, up, and then it’s a couple of weeks of sideways like this. Well that’s what comes next and that’s what … how it’s always been for me. I’ll have these periods of sideways. The good news is that during these periods of sideways when the market’s choppy, I’m not going like this. I’m not giving back all my gains. I’m just going sideways. So yeah, today I’m down a little bit, last week I had a couple of … I had a $2,800.00 day on Monday, a $1,700.00 day on Tuesday. So it’s like two steps forward, two steps back. What I don’t have are the five and $10,000.00 winners. That’s what I need to make up for these $2,000.00 days. This is a standard red day. There’s nothing abnormal about this red day. It’s just that I’m not having the big green days to make up for it.

So anyways, that’s about it for me today. Red day recap, down 1,900 bucks. It’s not a blow out, it’s nothing really … whatever. It’s just continuing the choppy markets, probably over … little over aggressive today, not the right time for it. So tomorrow, just gotta try to be green even if it’s just 500 bucks. That’d be a good way to kinda get back on the horse tomorrow. All right. So that’s it for me, I’ll look back at it first thing tomorrow morning. Students we’ve got class at noon time, so class in an hour and we’ll be continuing chapter seven on the high a day momentum strategy. All right. So I’ll see you guys in class at noon time. Everyone else, I’ll see first thing tomorrow morning. All right, bye guys.