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The Tradeosaurus Rex Strikes Again +$2,778! | Ross’ Trade Recap


What’s up, everyone? All right. So welcome back from the long Labor Day weekend. I hope you guys really enjoyed it. I got a little rest, and hopefully, you guys did too. So here we are, first trading day of September. One trade, one winner, $2,700 of profit. A little bit more than the daily goal, and that’s a great way to start the new month.

Now, if we look back at my calendar for the month of August, my first day was only $47 of profit. Then, the next day, which was Friday, August 2nd, I didn’t take any trades because nothing looked good. I didn’t trade again, well, Monday the 5th. Then, we had the 6th, a red day, 7th, a red day, and the 8th, a red day. So it was a terrible start to the month.

So just starting here with a green day starts to build a little bit of a cushion. You know, it’s not a big cushion. I’ve still got to be careful tomorrow and also be mindful that today, we didn’t see the level of follow-through I would like. During the recap, we’ll talk about ELTK, which I traded this morning and then, during the recap, squeezed up and got halted on a circuit breaker at $7. And then resumed the low at 6.60 and ended up fading. But we were watching it live, and we kind of broke it down. So enjoy that during the recap and as always, questions, comments, leave them below. Today, we have extended our Labor Day sales. They expired at midnight. We pushed that back to midnight tonight. So jump over to the website, use the coupon code, Labor Day, to save 30% storewide at Warrior Trading. All right, see you guys in the chat room.

All right, everyone. So I’m going to finish the first trading day of September up $2,779 and… $78.99. So not a bad start to the month. One trade, one winner, and just a little over the $2,000 daily goal. Today is the 165th trading day of 2019, so we, well, certainly coming to the last, well, last push, the last four months. I hope that we see some really good opportunities here as we close up 2019, especially in November and December. But starting the first day of the month with the green trade is always nice. It doesn’t always happen. I’m sure some of you guys who traded today, whether it’s real money or in the sim, may not be in the green. I started August in the red, so I certainly know both sides of the coin. I’ve been in both places and I think for me, today, I set a little bit of different a goal.

So let’s kind of go through how today unfolded. All right. I hope you guys all enjoyed the weekend and got some rest. Those of you guys who took us up on our Labor Day sales, I’m glad that you did that. I’m going to pause this here or mute it, at least. I’ll just go like that. Alright, so leading gapper this morning was CDTX. Now, this one, I really wasn’t particularly interested in. It’s a stock that I have traded in the past, quite a while ago at this point. It really hasn’t been a very interesting stock in quite a while. So with it gapping up today 70%, I was impressed. That’s a huge gap. That’s a really big move. And yet, I didn’t really think I had a lot more in it. So we had the high here of 3.18 pre-market. By the time the bell was about to ring, it had broken below 3.00, below the VWAP, the volume weighted average price, and then it curled back up.

So we opened today at $3. It immediately surged up. It hit a high of 3.08, dipped down, surged back up to 3.09, dipped down, came back up to 3.05, and then sold off from there. I didn’t take any trades on it. So this stock, it meets my criteria for price, certainly meets the criteria for gap. It clearly has news. However, the floats 25 million shares, and I typically focus on under 10 because those are stocks that are more volatile during trading hours. The volume was already 2.15 million shares, which is a little high. I like to see above-average volume. But when you get to a place where you’re above a million shares pre-market and you have 25 million share float, I usually look at those types of stocks as having a lot of tension, a bit of a tug-of-war. It’s more difficult to see really big breakouts.

So it’s kind of harder to get nice 20, 30 cent moves on these types of stocks. So in terms of weighting the criteria of an aquality setup, I would definitely weigh float as one of the highest because even if you have everything else that matches up, even the volume, the float can just be a deal-breaker. So that was off the list. ABEO, for me, I wasn’t interested in it. Now, it did end up making a nice move from $2 up to about 2.78, nice clean pullbacks. It’s a stock that’s been beaten up for a while, as you can see. It did have a catalyst today of news, and this one did end up working out a little bit better than I suppose I expected. But I left it alone with the float being on the higher side.

ARDX, floats too high. This one, price is a little high, volume’s a little low. This one, volume’s too low. It doesn’t have a float. This one’s too expensive. This one’s a little too expensive. So you can see as we’re going down the list, the first one here that you might look at would be USOD. However, this is United States Short Oil Fund. So I’m not going to trade that. So basically, there was nothing on the list for a gap and go trade. So we talk about the gap and go strategy as part of the Warrior Pro Courses. It’s a strategy of looking for the leading gapper and trying to ride that momentum. But I have to be very specific about which stocks I’m willing to apply that strategy to and which ones I’m just going to sit on the sidelines. These were all ones that I was not interested in.

All right. So the bell rings, and we come in pretty much with the mindset of watching the high of day momentum scanner. Now, I will say that ELTK was the first stock I looked at this morning because it was the last stock I was looking at on Friday. On Friday, it made this move from 4.50 up to 5.00, 5.50, 6.00, 6.50, all the way up to a high of 7.20. I kept seeing it hitting the scanner Friday afternoon, and I was impressed. I was feeling a little FOMO, and I was just like, “Wow, man. This thing is really taking off.” It is a former runner stock that I had traded in the past. So to see that move on Friday was impressive.

So it was the first one I was watching. Or, it was the first one that I looked at earlier this morning, but that was at like, I don’t know, maybe 8:45 or 9:00. So by the time I was doing my watch list, I’d kind of forgotten about it. I wasn’t really thinking about it. I think I might’ve had it up on my level two from Friday, so I might’ve had it up here at one point. So I was kind of like interested, but sort of looked away and was focusing on other things. The bell rings, and this ends up squeezing up right here. The high of the day was 23. It squeezes up, it hits the scanner. Oops, sorry. Let’s see. We’ll use the scanner. So hits the scanner at 25 and then 57, 69, 69, 75. So it’s boom, boom, boom, hitting the scanner.

As soon as it hit the scanner right here. I was like, “Whoa. ELTK, yes. This was the stock that I was looking at earlier. Someone even mentioned in the chat room, ‘Hey, check it out for red to green move.'” So I think I pulled it up just before it did the red to green move and Shift+1, Shift+1, Shift+1, Shift+1, I’m pressing my hotkey to buy. Now, ZBZZT, this is the NASDAQ test stock. So this is what happens when I press ZBZZT. Boom, just like that, just like that, just like that, just like that, I’m in 12,000 shares. That’s why I did on ELTK. Boom, boom, boom, boom in 12,000 shares, adding as it’s squeezing up. So I take my starter and then I’m adding, adding, adding, hits a high of 85.

Now, on this one, I was thinking, “This is the first stock that’s hitting the scanner today. It looks good.” So I was thinking, “This thing might rip up to 7.00 and then if we can break 7.20, we’re breaking the highs from Friday.” So I was starting to get a little excited, “This might be a really nice trade.” It rips up here, hits a high of 85, it then pulls back right here. It then drops down to 25, which is not good. It bounces back up to 62, and I’m selling through here on this bounce. I’m hopeful that I can hold my last position for a one-minute micro pullback and retest at the high. I would have been okay with adding if it had done that. But then as it broke here, the low of… Let’s see. Actually, no. Then it dropped down to 13. I was still holding about 700 shares through the bottom of this pullback, and then I finally sold the rest of it right here.

So I was really disappointed that what could have been an awesome trade, a breakthrough, $7, and potentially a 50 cent plus winner on 12,000 shares, ended up only being about 20 cents. So I’ll sell this ZBZZT test stock, so all out now. That is a test stock, so it’s not going to contribute to my daily gains or loss, which is good. But yeah, overall disappointing that this didn’t work out super well.

So then the next trade, BLRX, it hits the scanner and I was like, “Hmm, I don’t know.” Because ELTK kind of failed and now this one. So it hits the scanner at 3.25, 3.40. If I had jumped in it right away… Well, it did end up hitting high of 64, so a 35 cent breakout. It’s not bad at all. But this did not hold that level. It then comes back down and as you can see now, it’s back down at 2.30. So a big rejection there. So at that point, I was like, “Now, that’s two. ELTK rejecting, BLRX rejecting, I better step back here.” Then, when I saw ABEO going a little higher, I just thought, “Well, I don’t know. I better not risk it. I’m just going to leave it alone.”

I don’t think anything else has hit the scanners. NETE and OSN, I guess hit for a second. OSN did a little red to green move, but it hasn’t sustained very well. NETE is a little bit of a daily setup over 5.20, but that one’s also not looking particularly impressive. This ARDX is a higher float stock, 55 million shares. I’m not really sure. I wasn’t really watching this one. So that one looks like it just all of a sudden kind of ripped here from 4.00 up to 4.60, which is a nice breakout, but I think I’ll just leave it alone.

So one trade today, one winner, and I’m just going to leave it at that and live trade another day. Be back at it tomorrow. Hope that we see a little bit more follow-through, but also we’ll be okay with taking a little bit slow. Someone asked me earlier in the room how I gauge on a trade like ELTK, will go ahead and take my profit versus hold the whole thing for that big move up to 7.00. For me, I didn’t feel comfortable… Now, ELTK, I took a pretty big position. If I had only taken maybe 3,000 shares, or 6,000, or maybe even 9,000, I might have held a little longer because I would’ve thought, “Well, you know, I’ll give it a chance.” Because I went with bigger size, I felt like I needed to reduce the risk a little faster because there’s more risk with bigger positions. So that might’ve been part of it there.

But a bigger part was the fact that at the beginning of the month, I don’t have a cushion on the month. I’m at zero. Even though I could certainly say, “Well, I’ve already done really great on the year. For the rest of the year, I’m only going to swing for home runs.” I’ll probably get a few, and they’ll end up being $25,000, $35,000 winners, and there’ll be trades like this that ended up being either break even or small losses because I just throw in the towel or whatever or I just let it stop me out flat rather than take the profit.

Full Recap On Youtube!