Warrior Trading Blog

Too Many False Breakouts -$2,500 | Ross’ Trade Recap

Ross Recap 4.16

What’s up, everyone? All right. Well, after six consecutive green days, it’s time for a red day recap. Down $2,500 today. Red on three out of the four stocks I traded. This is just a day where momentum was very difficult. We saw a few stocks popping up but not holding those levels. So if you got in on the one-minute pullbacks, a lot of false breakouts.

At a certain point, traders collectively start getting a little nervous. Traders we traded alongside like myself, we keep seeing one false breakout and then a second and the third and then the next stock you see pop up, you’re even more cautious about it and that just leads to less volume on the breakouts and more people just sitting on the sidelines until things just really peter out and that ends up being the day. So finished the day down 2,500 bucks. Yes, I’m giving back yesterday’s gains. I was up 1,800, so 700 or so, still in the red but on the week., but at the same time, 700 bucks is no big deal.

Last week was awesome with that $14,000 green day on Friday. It is still sitting up now about 33,500 on the month, which means I’m only about 6,500 away from the $40,000 monthly goal. I’ve got a really good shot at hitting my monthly goal here in February, or here in April. What’s wrong with me? That’s good. March was obviously a red month and so being able to just get back in the saddle and have a green month and not just a green month but a green month where I hit my monthly goal. That’s fantastic. I can’t complain about that at all. So really, I just have to stay focused over the next 10 days that we have in the month and not let those big losses get away from me. Just got to keep things tight, stay focused and I’ll finish the month strong. All right, so that’s it. Enjoy the recap. As usual, any questions, any comments. Leave them below. I’ll come through and answer them this afternoon. I’ll see you guys first thing tomorrow morning.

All right. Well, it didn’t take more than, I don’t know, 15 minutes today to hit my max loss. Today hust wasn’t my day. Some days are like that. Going to be a red day recap, down $2,500. I do have a small profit in my main account of $28 but that doesn’t really cut it, so whatever. Just down 2,500 on the day, keeping losses small. The big one that got me was RNN, such a bummer. This was right off the watch list this morning. Where things went wrong on this one was I used my hotkey to get in while I was in a second trade. Taking two trades at once for me is almost always a recipe for disaster. The problem is I’m splitting my focus. I’ve got 50% attention on each stock and I just, I never do as well when that happens.

So right out of the gates, RWLK, I jumped into this one for a break of the pre-market pivot right here which was at 4.20 and I got a great fill, boom, right in there at 4.20. I mean I jumped in this thing at 420 right here, 9,000 shares. I tried to sell some at 4.49 Two seconds later, I mean, this thing ripped up to the half dollar, but it didn’t get filled. It started to come down and I was like, “Well, I’ve seen enough of these hit 50 and then go all the way to red. So I better start locking it up.” I add back at 47 and then this one just really struggled around that half dollar. I stopped out at 36, 37 and then … So I’m on this window here with RWLK and then I just switched over to this one to press shift one as I … Well, this was RNN.

As I saw RNN squeezing up, I wanted to get in it at $8.90. It dipped down here to 8.55 and as it surge back up, I tried to get in and I press shift one and I got filled at the top at 9.16. so now I’m in it at 9.16 with 3,000 shares and I stopped out at 8.50. I mean, I lost 60 cents per share, it just, which was a fine stop. That was the right place to bail. Well, maybe I should have sold a little sooner. But in any case, that was definitely the correct spot from a technical perspective to cut the loss. But that one just like that got me really badly. So that’s kind of the challenge of trying to trade two stocks at once. Your focus is split as a result. I didn’t do as well as I could have on RWLK. I even ended up giving back my profits on it, most of my profits anyways.

The final trade that I gave back those profits on was right here, getting back in at 55 for the break over high of day and then boom, it drops all the way back down. So I was up about 1,400 on RWLK and then gave back a thousand on this drop right here and just not easy. Then ASUR are came up, hit the scanners. I jumped into that on this little pullback. This was a one-minute micro pullback, following the rules of waiting for the pullback, but it ended up being a false breakout. It hit a high of 57 and then dropped down to 89 and so that one got me for 700.

RBZ, a small $119 loss, not a lot to speak of there. I jumped in at 70 on a little one-minute micro pullback as well. It hit a high of 85. I wanted to add over 90, thinking if it broke 90 it would test $6 but it didn’t. So quick loss there and that was basically it, it was just like, boom, boom, boom, red, red, red, red. It’s not happening today. So the good thing I suppose is always keeping losses small. I’m not super happy that I gave back all of yesterday’s gains. I was up 1,800 yesterday and gave all of that back. So now I’m down 600 on the week. But at the same time, last week was such a great week with that $14,000 green day on Friday that I’m not going to sweat it. This is just kind of one step forward yesterday, $1,800 is a small green day. One step back today, 2,500 is a relatively small red day.

So right now I’m just kind of grinding, waiting for that next opportunity for a nice solid green day of three, four or 5,000 or higher. One of the things right now that’s really important to me is that I keep the red days as manageable as possible. It’s impossible to avoid them. That’s just part of trading. There’s no such thing as a trader who doesn’t have red days. So that would be crazy to try to avoid them is to try to manage them, know that they will happen, and when they start happening, the day that you start going into the red and it’s like, “Oh, this is not looking good,” that you quickly pull back and mitigate the damage. I was up for a moment over $1,000 today on RWLK and a thousand on the day and then I took this loss and that put me down about a thousand on the day. So then I tried to dig my way out and I never got back to green.

So that was the one that got me. It’s the biggest loss of the day, RNN. In hindsight, the mistake, well, it was just the risk of using a hotkey because if I had actually gotten my entry of 8.90 or 8.95, I probably would have been break even on the trade. Maybe I would have lost 300 or 400. But I wouldn’t have had that type of loss. So that’s just the way it goes. A little bit of a setback, but I’ll live to trade another day, which is what’s important. Never let the losses get out of control. That’s what I always am trying to remind myself and you just have to say, “Look, some days the market is hot and you can be really aggressive and other days it’s just not.”

Today, if I kept trading with big size, I was taking 9,000 shares, I would just be losing money. I mean, I wouldn’t make money. I would just be losing. So FTFT, I did take a scalp of this, going through $2. That was in my, whatever, my main account. But only have 28 in my main account. So that’s fine. You can see here, as my orders are set to only closing. So even if I wanted to buy this stock here, if I press the button here on this, it’s going to give me the rejection. Was it? Yeah, right there. Can’t place any long order. So yeah, no good. So no more trades and that’s good. Keeping the losses small. So that’s about it for me today. Be back at it tomorrow. Hope that we have a green day and can just kind of bounce right off this red day and be back into the green.

It’s a short week though. We’ve got tomorrow and then Thursday, markets are closed on Friday. So a little bit of a four-day weekend or three-day weekend, which is nice. But really, I mean, I’d just rather be trading on Friday. So that’s a bummer. But try to make the most of this short week. So today and yesterday, basically cancel each other out. I’m down 500 or now, let’s see, I’m down 700 between the two days, so whatever. I got a little wiggle room to get myself … Got some work ahead of me to get myself back to green on the week, but it doesn’t really matter. I’m still in great shape on the month and I feel good about that.

The goal is of course $40,000 a month and I’m sitting right now at 33,500 so that’s good. I’m $6,500 away from the monthly goal and we still have, let’s see, how many days do we have left in the month? We have one, two, three, four, five, six, seven, eight, nine days left in the month. So given I’m averaging this year $2,000 per day and that’s over the course of about 72 days of trading, 71 days of trading. Another nine days will give me almost $18,000. So, hey, that would give me a $50,000 month, which would be cool. But whatever. We’ll just see what happens and just try to keep slow and steady.

Yeah, RWLK, super frustrating. I just didn’t expect it to be so difficult in this area. But sometimes it’s like that. So keeping the losses small. Live to trade another day. Back at it first thing tomorrow morning, 9:15 pre-market analysis. Hopefully we have a couple of good stocks on the scanners so we can find some good opportunities. All right, see you guys in the morning. If you’re still watching, you must’ve 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.