Warrior Trading Blog

Three Losing Trades -$3,263 | Ross’ Trade Recap

All right, everyone. So we’re going to do our midday market recap here for this morning. Today’s going to be a red day recap. So disappointing. I had these high hopes that maybe November would be a no red month, but right away on day two, I’m in the red.

 

So it is what it is. I’m not going to revenge trade and try to desperately get myself to green on the day. At the end of the day, this is just one day and it really doesn’t matter all that much. So, I’m not going to be bent out of shape about it. I took three trades today and had three losers. So after the third loser I had to follow the rules and be done for the day and that third loser put me down more than $2,000 on the day. So my max loss right now is $2,000. If I’m down more than $2,000 a day, I don’t keep trading. That’s my rule. I’ve broken it before, but I try to follow that rule.

So today, two rules told me to stop trading, three losses and down more than two grand. So, this is what it’s about, it’s about following rules and having discipline. Today for me was really disappointing because I had a great idea on a trade right out of the gates and that was INPX. So on INPX, this one was a reverse split stock. The reverse split was 40 to one. So yesterday, it was priced at 20 cents and today it’s up at like $7. So reverse split. The float, 1 million shares. We know that these stocks often pop. So I’m watching it over 7.50 for the bell to ring. I’m going to bring this all the way down to a one second chart. So, literally in the first one second of the day, well, the first five seconds this thing takes off.

What’s really sad is that I had two orders to buy 6,000 shares, 12,500 shares at $7.53. I was stepping up to the plate a little bit and neither of them filled. So when I realized that neither of them filled on second number two, which was right here, as we popped up to 7.55, I pressed the hotkey. So I pressed shift 1, shift 1 and shift 1. I pressed it one, two, three, four times. That’s for each 3,000 shares. Look at my fils, I’m getting in at $8 on the third second as this jumps up here. I’m getting filled at 8.32, 8.45, 8.51. I didn’t even realize I was getting filled that high. Then I looked down and I’m holding 6,000 shares at an average price of 8.36 and I was like, “God.” I should be up 75 cents per share right now. I should be up $6,000 or more.

Then I added right here for the break, over 75 and we popped up and we hit a high of 9.29. I tried to put out orders to sell and none of them filled. I mean, I filled 76, 51, 40 and then sold the rest as it came back down. I mean, I just really kind of botched this one. I had such a great idea on it and I was right and I chased the entry and went from what was potentially, if I’d filled 6,000, if I’d fill 12,000 shares at 7.50 and sold it at 8.50, that’s $12,000. Literally, that’s a $12,000 winner. Instead I had 8,000 shares at like 8.45 and sold it for a 15 cent average loss. However, that was the right thing to do, to take the loss because if I was still holding it I would be down quite a bit. It’s sold off, got halted going down, curled back up a little bit, but it did not hold those levels. So overall a disappointing stock. I didn’t get filled and just, whatever. So that was disappointing. So that was on INPX. Lost 1,000 bucks on it which is not the end of the world.

Next, trade, CIFS. This one was on our watch list this morning. I jumped into it for the break, over 2.50 as it’s surging up. This is a half dollar entry, stop is 2.40 and I get in at 58, 49 and 52 and promptly stopped out at 42 for a $500 loss. So just like that, two minute, three minutes into the day, I’m already down 1,500 bucks, two red trades. So that’s when I was like, “Okay, I gotta slow down here. I got to take a breath. If I have a third red trade right away, I’m going to be out and maxed out for the day.” So I was very aware of that. So I was like, “Okay, let’s be mindful. I need to get a winning trade,” and YGYI came up on the scanners and we were watching it at 8.70 right here. I didn’t take the trade and it pops from 8.70 up to 8.25. It’s a 50-cent pop right there.

So I missed that trade, but I did take a trade on YECO. On YECO, I jumped into this one at, let’s see. Where was it? I got in right here as it popped up. I got in at 30 and 40 on YECO, 30 and 38. Then I stopped out at 7.05 and $7 as it came back down, only to watch it rip back up here just a few minutes later up to $8.23. So, I had the right idea. But I set my stop, I followed the rules, I got stopped out. I was expecting right here that it would break over high of day and make this move at this time. I had the right idea but the wrong timing and so that was a loser. So that’s it. Three trades, three losses, done for the day. So yesterday I made 3,800 bucks. Today I’m down 3,200. So I’m basically back to breakeven on the month, up a little bit and that’s just the way it goes sometimes. But overall, this has been a good week.

It’s kind of I started with a red day on Monday and then made 3,000 on Tuesday, 3,000 on Wednesday and 3,800 on Thursday and then now another red day to end the week. So started red ending red but three nice days in the middle of the week and hopefully we’ll see good follow through next week. But today we just did not see a lot of good momentum. It was pretty disappointing. So anytime I’m red on three trades, that for me is like, “Should I think about taking trade number four or trade number five or should I just walk away?” The right thing to do is, for me, just to walk away. So I’m walking away in the red but overall, whatever, basically break even on the month, up 500 bucks or so. It’s just about keeping losses small. So, this step back, it’s only one good day backwards. I’m not down 8,000, I’m not down 10,000. If I was down at 8,000 or 10,000, that’s two, three or four days stepping back.

So I like to do this kind of thing where, let’s see what happened to my drawing tool, where I take one step up like this, two, three, four, five, I have a nice hot streak and then I go like that. That’s a red day. All right. So then next day I just try to be green and then next thing you know, you’re stepping back up and then you have another red day and you try not to give back more in a red day than you make on a green day. That’s kind of ideal. This one would have been a little bit of a bigger one, but that’s just kind of the way the equity curve works. So anyways, today wasn’t the big day I was hoping it would be.

Even though it could have been, it was so close. I just didn’t get filled on those trades, those first two, and then I chased it a little bit and but even when I was pressing shift 1, I mean I was looking at the level two and it was like 7.80, 7.90. I pressed shift 1, shift 1, but I just got filled so high. It was just a really bad fill and that sometimes happens. That’s the risk with trading and it’s not the end of the world. But I didn’t think I was chasing it that much. So definitely had the right idea on it. It definitely did squeeze up $2 right out of the gates, which is awesome. You know what, I’ll try to get the next one.

So, that’s the way it goes. It could have been $12,000 a day but got on the wrong side of that one and then the next two just happened to be bad. So that’s okay. So anyways, finishing the week here in the red, but I’m still feeling optimistic for the month of February. The raccoon costume has been put away. It did not bring me good luck today. So the raccoon is going back into hiding for a little bit, but hopefully we’ll turn this hot streak momentum back on on Monday and can have a couple of really good weeks of trading here. I’m really looking forward to November. I’m hoping it will be really strong and we’ll just keep waiting for that momentum and when it does pick up, I’m ready to step up to the plate.

I haven’t taken any cash out of my account in a while. I’m sitting right now with, let’s see, as of this morning $134,000 in my account. So I’ve got a lot, a good amount of cash in here, over half a million dollars in buying power. When we see something pop up and it’s really is giving me what I want, I can be aggressive. I’m kind of leaving this money in here for right now, so I can be aggressive this month if we do see some really good opportunities. We might have a day where, like when we had DRYS, DRYS takes off takes off and then GLBS, DCIX, EC, they all take off at the same time and they all halt and then open two points higher. I mean, it was crazy.

So if we see that type of market, there might be a day where I’m holding 10,000 shares of four stocks at once, because everything is taking off and everything squeeze up, gets halted. So I want to make sure I’ve got the cash so I can really capitalize on that opportunity if it presents itself. It might not and there’s a little bit of a lost opportunity in leaving as much cash in this account as I’m leaving right now because I can’t use it for other things, but I think this is the place to keep it for the time being.

Yeah, [Yelsi 00:11:49], my shift 1 is buying the ask plus ten cents. So if I press shift 1 on TRVN, I’d be placing an order to buy at $1.33. So it’s a 10-cent offset and that allows me to get in stocks that are moving fast, but I’ve never actually gotten filled as badly as I did on this one where literally one second later, I’m filling the differences, a dollar per share. But that comes with volatility and today I just happened to be on the wrong side of it. I’ll chalk it up to the cost of doing business and be glad that I kept my losses small. I could have lost $8,000 or 10,000 if I kept adding and drop, I got stopped out on the drop. So managed the risk well and be back at it tomorrow.

All right, so that’s it for me. I hope you guys have a great weekend. Get some rest. It’s looking like a rainy day here, another rainy day here in the Berkshires. So I’ll be a keeping warm inside by the fire and I’ll see you guys first thing on Monday morning. Coming soon, we will have a change to the members dashboard. The day that you log into your members dashboard and you see small cap room and large cap room, know that on that day we have two rooms. One is for Mike and one is for me. So you guys are welcome to log into both rooms if you want. We will have a seat limit on both rooms. So, it will be kind of a first come first serve, but you guys will be welcome to do that. So expect that coming soon on the members dashboard within the next few days. All right, so that’s it for me. I’ll see you guys first thing on Monday morning.

If you’re still watching, you must have really enjoyed that video. So why not subscribe and get email alerts anytime I upload new content. Remember, when you subscribe, you become a member of the Warrior Trading family.