Warrior Trading Blog

Trade Recap: Back in Action! +$1,045!

What’s up everyone? All right. Here we are, another day, another dollar, Thursday morning, $1,045.00. Green is good. A $1,000.00 a day, that keeps the job away. Right now, we are still in that $500.00 to $1,000.00 a day type of market. It’s taking a lot of patience for me to not try to swing to the fences with a big 10,000, 15,000 share position.


What’s really interesting that when you trade with smaller size, like 5,000.00, or 7,000 shares you realize that when you’re up .10 cents you can actually take that profit, and there’s $500.00, $700.00, but when you trade with 15,000 shares, .10 cents often isn’t really enough to fully get out of the trade, because you’re going to have slippage on most stock.

If you want to sell, and hit the bid, you might lose .3 or .4 cents in slippage with 15,000 shares. You might lose more. A .10 cent winner actually might only be like a .3 cent winner. You don’t sell until you’re up .30 cents, and then you’re capturing like .20 cents, which you need stocks to move .30 cents in order to get that .20 cent profit, but when you trade a smaller size, even if you do just get .10 cents, you can actually lock it up, and that’s what I did today. A couple trades, a couple winners, a $1,000.00, green is good. Let’s break it down in today’s midday market recap …

All right, everyone. We’re going to do our midday market recap, breakdown the trades from this morning, another green day. Finishing the day up $1,045.16. We are still in the market, right now, where $500.00 to $1,000.00 a day is pretty good. We’re not seeing incredible follow through. We’re seeing a lot more chop, especially in the small caps, but you know, grinding, and making some money. That’s good. I’m happy with that. My average this week has been a 1,000 on Monday, 1500 Tuesday, I lost 14 yesterday, part of that was because I was offline for the first 15 minutes the opening range, because of tech issues, that happens, whatever, and then today the $1,000.00.

If I can make another $1,000.00 tomorrow, on Friday, that would be a really nice way to finish the week. All right. Let’s take a look at the trades from today. I’ll put up my broker platform, here. There we go. You can see I traded a bit more today than I’ve traded on other days in the last few weeks, or the last week, I suppose. Five stocks that I traded green on four out of the five, but $1600.00 is a pretty big lose on UONE. This was my very first trade out of the gates, losing 1600 bucks, and I had to spend the rest of the morning trying to dig myself out of that hole.

Fortunately, it wasn’t too deep of a whole, and I was able to get myself into the green, and then up a $1,000.00 to the daily goal, so that’s good. If I had not had that trade, today would have been a $2600.00 day, but that’s just the part of the deal with trading. You’re going to have some days where you get really clean follow through, and other days where it’s choppy, and on choppy days it’s just going to be that you have a couple winners, you have a couple losers, and you’re looking at what you averaged, what do you net after all of it?

Anyways, I want to remind you guys, also, that today at 1:00 p.m. eastern, and most of you guys who are watching this on YouTube, unfortunately it will be too late by the time you get this, or are watching this video, but for those of you watching live on Facebook, for those of you in the chat room right now, we’re hosting a free workshop at 1:00 p.m. eastern today, and I’ll put the link here in the chat for those of you that want to register. During this workshop, I’m going to talk about the three secrets that I used to take $583.00 and turn it into a 100,000 bucks in 45 days. All right?

Now, some of you guys have attended these workshops in the past, these webinars, and they’re a lot of fun, we usually have great turnouts, so this is going to be really cool. That’s coming up at 1:00 p.m. today. In about an hour and a half. We’ll do the midday recap, then I’m going to grab a little lunch, and come back, and teach this webinar. 1:00 p.m. eastern. You guys can see the link to register in the description on Facebook, and you guys in the chatroom can register as well.

Anyone who has been thinking about joining the Warrior Pro Class, this summer, make the summer that you learn how to trade. You’ve got 90 days. It’s a 90 day class, summer’s here. June, July, August. By the end of the summer, you’re going to have the skills to trade. You’ll be in the simulator practicing, and you’ll be getting ready to switch to real money, and that’s exciting, because September, October, November, December, that’s when the market gets hot, so you’re going to be in really good shape to be making some money this fall. All right. Check that out, if you want to register you can click below to do it, or again see on the announcements tab in the chat room.

Okay. Today, up a 1,000 bucks, five stocks I traded, very first stock of the day was UONE, and what’s interesting about this one is initially I didn’t think it was going to be worth trading, but I ended up taking a stab on it, and the reason I took a stab on it was because it was hitting our scanners, it was squeezing up, so I jumped in it at $3.86, 3.93, and 3.97. It squeezes up and taps for 30, and I tried to sell it for 4.05, 4.25, and 4.29, but none of my orders got filled. None of them got filled. I ended up stopping out of it right here as you can see it came back down to 3.35, and I stopped out for a $1600.00 loss.

I went from being up $1600.00 to down $1600.00. The problem with UONE is that it’s a .5 cent tick stock, so it trades in .5 cent increments, as you can see here 2.75 by 2.85 right now to a .10 spread, but it’s just volatile, and I thought it would be a little easier, and I was wrong. The very first trade on that, I’m in the hole, and I’m like, dang it, this is so frustrating, maybe I shouldn’t have taken the .5 cent tick stock, but it is what it is, so now I’ve got to try to work my way out of the hole.

The next trade, we have JVA, this was on the scanners this morning, and just to remind you guys, who are a little bit new, every morning we run a scan, and what we do, I teach you guys how to use these in the Warrior Pro classes, but what we do is we scan the entire market for stocks that are gaping up this morning more than 4%, and generally that’s a list of less than 30 or 40 stocks. Today, the list was a little bit bigger, but regardless of how big the list is we’ve very quickly narrowed down stocks to trade from 15,000 down to 30 or 40. I don’t know why this isn’t loading, but let’s see, nine, 15, maybe? I don’t know. I’ll give it a second there. Okay. That works.

This right here, these were all the stocks in the market, that we’re gaping up more than 4%. It’s a pretty short list, you might think, well, there’s a lot of stocks on there, but we can very quickly narrow it down based on our strategy. If your strategy is one where you like to focus on stocks above $20.00, then immediately you’re like, okay, I’m looking at these two, and I’m looking at this one, and maybe for stocks gaping down, you might be looking at some of the ones down here as well.

If you’re trading stocks under $10.00, like me, we’re looking at this one, we’re looking at this one, we’re looking at these ones. All right? Very quickly, and really we only want to look at the gapers that are generally in the top 10. Here you go, JVA was one of them, gaping up 15% with a catalyst this morning, which was news. It was worth watching, the volume was light, as you can see in this column, but I wanted to keep it on watch. All right?

The bell rings, and it starts to pop up, and initially I was a little bit cautious, it ends up dropping down, I don’t take a trade on it, and then boom it surges up here, and on this candle it hits our scanners. I jump in it. I jump in it at 4.80, as it’s squeezing and hitting high a day, it taps 5.33, and I’m scaling out taking some profit, and I’m thinking, okay, now I’m going to wait for the first one minute candle to make a new high to add, one minute micro pullback. What happens? One minute micro pullback, boom, it drops, and it fails, and that’s it.

I made 800 bucks on it, scalping off the high a day scanner, but it wasn’t an easy trade, and it was a little disappointing. That was JVA. OPHT, this was also on the scanners, right here, you can see I’m up $88.00 on it, so a small winner on OPHT. This one, is continuing, now, which is great. It looks good. But when I traded it earlier, today, I took a little breakout trade for a scalp, let’s see, my entry was, yeah, I was actually right here. We have this little consolidation, right here, and I got in for the break over 75. It pops up to 82, and then it drops right back down.

You know, this is that area where it’s choppy. It breaks out, and then it fails. Not a very clean breakout, made only $88.00 getting in on this volume spike right here, for that break. A small little scalp, nothing to be really excited about, but a fairly easy trade, and not a lot of risk on it, so $88.00 there. TNXP, this one, not on the watch list, but it hits the high a day momentum scanner, so this scanner is searching the market right now for stocks that meet our criteria for having potential.

Our criteria for having potential is basically the stock is squeezing up right now. This column shows the percentage of change. The stock goes from up, you know, what was it, up 8%, and it’s just hitting the scanner, boom, boom, boom, 6%, 5%, 6%, 7%, 8%, 9%, 10%, 11%, 12%, 13%, 14%, 15%, 16% and so I’m jumping in at as it’s squeezing up. I got in it at 4.60, it squeezes up here to a high of $5.00, so I take some profit up it 4.90, it then drops down, and then I add for the first one minute candle to make a new high right here, so this red candle I’m adding, it breaks high a day, and I’m selling it 5.03, or 5.01 just over the whole dollar.

Then it ends up doing another fall to breakout. It doesn’t hold up, which was disappointing. A second stock to false breakout, and not hold at all, as you see it sold off. Next one, hits the scanners was POLA, right here, as soon as it hit the scanner I looked at it, and was like, all right, I’m going to jump in, take a scalp. I jumped in this at two, sorry, at 6.60, it popped up to a high of 6.80. I sold it at 6.70, and made 590 bucks on 5,000 shares. It was like a .12 cent winner, and then it dropped.

At that point, I was like, you know what? I’m going to be done for the day, we’ve seen like three stocks pop up and drop, and even though now it’s going higher, it dropped before it went higher on this drop, right here. This is the first one to show strength, and continue, which is awesome, but at this point of the day I feel like the easy money, the big moves are probably done, and I’m just going to lighten up my risk, and close up shop. Hey, finishing the day with a $1,000.00, green is good.

For those of you who’ve been following me for quite a while, I had a $16,000.00 loss last week, which was disappointing to say the least, but it is part of the deal with trading. If you’re aggressive, and you’re looking for big opportunities, you’re going to have big winners, and you’re going to have big losers. I took a $16,000.00 loss, so now at this point in order for me to get my account back to basically where I was before that loss, I need to get up to about $100,000.00. I’m at 88,000, or 86,000 right now.

My goal is just kind of if I look at that, and you know, just slow and steady, keep trying to grow the account, get it back up to 100K, once I hit a 100K, a 110, 125, but right now I’m still in digging out of the hole type of place. Right? I don’t have a cushion to take big risks, because the worst thing for me to do, basically, you know, if we just kind of draw my equity here, so I’ll move this down, so $583.00 down here. 583. You know, boom, up, a little bit of draw down, up, down, up, down, up, down, up, down, and right now, you know, I went up to $616,000.00, and then I dropped to 600,000, so a $16,000.00 loss right here.

Now, I’m moving back up. I’m up about that much. The worst thing I can do is go like that. I cannot afford to take risks, because I can’t afford to have two steps down. I need to go back up. This right now, this kind of digging out of the hole place is where you have to be a little bit more conservative, because you want to just keep going up, you don’t want to have that second really big loss, where you lose $5,000.00, or $10,000.00 again, and now your way down here, because psychologically now it’s like, oh, just to get back to here is going to be a challenge, and I still have to get back to the highs.

These equity curves that I have, you know, they’re not anything different than the equity curves of the entire market. If you look at the S and P 500, and you know, let’s see let me just scroll go back here, you know, this is that big drop. Right? Then you pop up, and then you end up dropping basically just as low. You know, when you’re talking about your individual trading account, you want to do everything possible to minimize those draw downs, and obviously losses happen, it’s part of trading, but we don’t brush it under the carpet, we try to work through it, and talk about it.

The important thing is just to make steady progress back up. Instead of going through this type of thing, where you’re going to spend months trying to rebuild, this is horrible, you don’t want that to happen. What you’d rather have happen is this type of stuff in here, where, you know, you drop down, things are a little choppy, and then you start to turn around. You know, having two back to back red days is tough. I’m trying to see a really, kind of good pullback that really is similar to what’s happening in my equity curve right now.

Maybe something like this. You know, you drop down a little bit, and then pretty quickly you’re bouncing back, and you’re at your all time highs. That’s acceptable. You can control that to a large extent based on how much risk you’re willing to take. Right now, I’m in a market where I can’t really take a lot of risk, I have to be a little bit more conservative until my account gets a little bit bigger, or until I’ve recouped some of these losses, and that’s not just to dwell, because we’re not in a market right now where we’re seeing home runs.

You know, stocks like POLA, if I had jumped into that with 15,000 shares, I would not have been able to capture .10 cents a profit. With that type of size, I would have been stopping out down here for a $7,000.00 loss, I guarantee it. That’s what would have happened three weeks ago if I was trading this with big size. TNXP, you know, similarly, I might have been able to capture some profit, but adding up here I would have gotten stopped out on the drop, and probably given it all back, so got to be a little more conservative, take it slow, one trade at a time, and you know try to have a little bit of low stress summer trading.

This is, we are coming into the summer months, and the funny thing with summer is that we can make good money, and we can see really good opportunities, but a lot of times it’s kind of like each day, there’s one stock that’s in focus, and nothing else is moving at all. If you don’t like that one stock, because the floats too high, or the volume is difficult, or whatever it is, then you just might not be able to trade.

Now, sometimes I ask myself, would I be better off not trading at all, until I see a quality setups, and the when I see that a quality setup, go ahead and take the 15,000 shares. On the one hand, yes, that would probably reduce my losses, however, I feel like there’s a component where you need to kind of stay limber, and you need to keep yourself in the market, and keep watching stocks every day, and if you take a long break, and you’re like, I’m not going to trade for two weeks, because the markets choppy, then you sort of start to feel a little disconnected from what’s happening in the market, you’re not really sure what’s moving, what stocks are popular, what sector is popular, you get kind of rusty.

I like to trade every day, but just trade with smaller size during periods of kind of choppy markets. All right. Anyways, that’s about it for me here this morning for our midday market recap, and again 1:00 p.m. eastern we’re going to be hosting this workshop webinar, we’d love for you guys to register those who haven’t attended one in the past, it’s going to be a lot of fun. All right? I’m going to go grab some lunch, and I will be back at 1:00 p.m. eastern for the webinar.

You guys can register at Facebook live, you’ll see it in the description, later this afternoon, once the webinar is already taking place, I’m going to remove that link, because the webinar will be over. This will only be helpful for those watching live. All right? Okay. That’s it for me, and I’ll see you all back here first thing tomorrow morning, or at the webinar at 1:00 p.m. All right. I’ll see you guys in a little bit …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.