Warrior Trading Blog

Ross’ Trade Recap: Hallelujah +$5,714!


What’s up everyone? Your sensei is back. Finish the morning up, $5,700 dollars. Best trade of the day, up $9,500 dollars. That was my best winner of the day. I needed it! Finally, first big win in like a month. We’re going to break it down in today’s mid-day market recap.


All right everyone. We’re going to do our mid-day market recap here. And today was a wild day. It was a very surprising day. Both in the way it started, and in the way it finished. This month has been pretty wild in general.

Here we are, finishing the day. My biggest winner today, $9,463.31. That right there is the biggest winner I’ve had in almost a month. I’m very happy about that. But, today started with another red trade. Let me pull up my PNL here.

Finishing the day up, $5,714 dollars. Green is good. Gevo got me for $3,300 dollars. Today’s a day where I was actually red on two out of three names but that third one, big winner. That makes up for it.

Today is, like I say, a little bit of a chappy day. Very first trade out of the gates, Gevo took a loss on it. But, bounced right back with a big winner on XSPL. Finishing the day green. Last trade I closed up at 959.

30 minutes of trading, $5,700 dollars. Life is good! Now it’s time to enjoy the weather, get outside. And just relax a little bit. But, before we do that, we’ll break down the trades.

This morning started the same as any other day. Started by looking at the gap scanner. Let me move this over here for a second. That’s the PNL. Here’s our gap scanner.

This is the tool that I use every single morning to find stocks to trade. I’m going to do a historical scan on this for 9:15 this morning. I don’t get up at 7:00 AM to start doing market research. I don’t have to do lots of homework at night. I get up around, whatever, 8 o’clock. Then, I’m sitting here in front of my computer by 9:00. Pre-market analysis 9:00 – 9:15, 9:30. Then, I’m ready to trade.

Really, in 15 to 20 minutes, you can find stocks to trade. This morning, this is what the gap scanner looked like. We’re searching the entire market, and we’re looking for stocks gaping up more than 4%.

If a stock is going to open up more than 4% in one day, that’s exceeding the standard deviation of a stock. Now, again, if you put your money into mutual funds, and you put it there for an entire year, it would only grow by 8%.

For one individual security to move 4% in one day, it might not sound like a lot. But, it’s actually really substantial. To the point where, out of every single stock in the entire market, this is the entire list of stocks gap that’s got more than 5%, more than 4%. I’m actually just going to adjust this because I always say 5%. I’m just going to switch it right now.

All right. This is a very simple scan though that I run. It’s not complex at all. This … Let’s see. I’m just going to update to this 2-5 and five. There will be a few less stocks on the scanner, and that’s fine with me. There we go. Just like that.

This is our list of penny stocks to look at. All right? We’ve narrowed down the list from 15,000 down to it looks like about 20. I’m going to focus on the top 10. From maybe here, up. All right?

The leading gap-er this morning only has 100 shared of volume. I’m just going to ignore that. All right? That one is off the list. It’s also only a dollar, so, it’s a little too cheap. That one is off the list. Next one down.

Gevo. G-E-V-O, price, $5.24. Float, one million shares. All right? That’s how many sales are available to trade, very low float. Gaping up 49% with 198,000 shares of volume. This I can tell just without even looking at the chart that it’s something I’m going to want to look more closely at. All right? We’ll come back to it in a second.

Next one down, PTCT, it’s a $50 stock. I don’t trade stocks that expensive, it’s off my list. OBSV, I don’t usually trade stocks that are in this price range, but I’ll take a quick peek at it just to see if maybe it’s doing something really incredible. I look at it, I see that it is gaping up. But, not a lot of pre-market volume, which is what I would have been looking at here at 9:15.

I’m just going to say, I don’t think it’s going to be anything I would trade. Maybe come back to it, but probably not. That one is off the list. CBPO, too expensive, $104 dollars.

RCII we pull this one up. And we see that it’s trading pretty much sideways. That’s kind of interesting. Why does that happen? They accepted a $15 per share offer, which means they’ve been bought out. Bought out is going to trade sideways at basically 15, that one is off the list.

Next one down, EGC. Just going down through the list here. Next one down EGC, also a buy out. That one is off the list. QTNT, this one we were watching. 26 million share flow is a little on the higher side. It did pop up out of the gates, so we’ll come back to this one. This one is a maybe.

Next one down, VSTM, 50 million share float. Don’t like it, that’s off the list. Just like that, we pretty much have narrowed down from potentially 10, 150,000 stocks to trade to two. QTNT and GVO. All right. Let’s start with GVO.

GVO, this one, gaping up as you can see. 50%, nearly 50%. I was watching it. I was looking at the pre-market high of 528. I looked at the news and saw that there was EPA approval, approves registration of ISO butanol in 16% blends and gasoline. We’ve got a news out this morning at 9:00 AM. Okay, here we go, we’ve got a headline.

I see it moving up pre-market. I’m thinking all right. When the bell rings, I’m going to watch for this pre-market consolidation that we have right here to break. The buy spot, as a break out, would be a 528.

I often buy early to anticipate these types of break outs. When the bell rang, I had my order ready to guy, to buy at 525. The bell rings, and I jumped in at 520 because I saw a pretty good amount of volume coming in.

I was like, all right, this thing looks interesting. You can see right now it just squeezed up 8% in the last 10 minutes. Just right now. We’ll look at it in a second.

I’m watching the buy, I jump in there at 520. Sadly, it hits 524 and then it promptly drops all the way down to 485. This was a pretty nasty drop. I was really disappointed with it. I ended up taking a loss on it. Now, here you go. Look at it now.

Now it’s breaking over the [inaudible 00:07:43] and squeezing up, hitting 555. But, the reality is there’s no way I could have known this would happen. When I got in it, I did the right thing. I was getting in for a break out, and then it just swept down. I stopped out, took the loss. On that one, I was down $3,351 dollars. I pretty good size loss. Disappointing there.

At that point I was like, well, we’re in a difficult market. And I just took a good size loss, I haven’t been seen $3,000 dollar winners. Now I’m going to probably spend the rest of the week trying to dig myself out of that hole.

Then we see this stock, XSPL hit the scanners. When XSPL hit the scanners first at 855, I looked at it. I was like, okay. Just with one scanner alert, I can see the volume is light. But, I can see that it’s up 13% on the day, which is certainly interesting. 964,000 share float is 964,000. That’s very low.

And the volume in the last five minutes is 3,959 times higher than average. Just like that it’s massive volume, low float. Even though the relative volume is low, or the total volume is low, the relative volume is high.

I see it hit once. I see someone in the chatroom type, “Hey, this one has news.” I see it hit twice, three times, four times, five times. I’m like, okay. I’m pulling it up. I type it in, XSPL. I type it in just like that, I see on light speed … Or sorry. I see on E-signal right here, that there is news on it today. I’m like, okay. There’s a headline, interesting. Once I saw that, and I could tell how quickly it was moving, I jumped in.

This was an aggressive trade, no doubt about it. But, when a stock squeezes up this quickly, in the past squeezes up this quickly, in the past, that’s meant good things. You can see here, this is a recent IPO break out. And the nearest resistance point was $12 dollars. The spot that I have circled right here.

That’s where this line intersects with today’s candle. Potentially. All right?

I jump in this one. I’m in at 919, 945, and 976. It squeezes up to a high of $11.63. I mean, if I’d held the whole thing, that would have been a $15,000 dollar trade. I sold into the move, and booked a profit of $9,463 dollars. Just like that, my day turned around from being down 3K to being up 5K. That’s a big turn around. That really is … I don’t usually get that type of turn around.

The thing with this one is that I had a little bit of FOMO because I had just taken a loss. When I did see something hit the scanner, I was willing to be a little bit more aggressive. Sometimes when you get hit, and you get knocked down, you spring back up and you’re like, okay. I’m ready to get back!

You’re ready to swing, because you just got knocked down, you’re ready to get up and swing. As a beginner trader, you’re going to just be flailing your arms because you don’t know where to swing. Do I go for this? Do I go for that? Do I go for that?

Now, I’m a seasoned trader. But, that FOMO can take you off your game a little bit. It can take you off your game, make you a little bit more aggressive than usual. A little more impulsive than usual. But, when you’ve got years and years of experience you’re more likely to just sort of instinctually make a good decision because it’s influenced by years and years of trade and experience.

Even though I gave into a little bit of FOMO by chasing it, and not waiting for the pull back, I think this was the right one to be aggressive on for a couple of reasons. Number one, by the time that I was getting in it was already up 25% on the day. It was showing it was moving very quickly. It was on our scanner right here for massive volume, the flow was very low. And it’s a recent IPO breakout, which is a set up that was working really well last month on IMTE, BOXL, and several others. In this one, I was willing to be a little bit more aggressive. I was looking at that $12 dollar potential price target.

Now, I only took 7,500 shares. I didn’t take 15,000, the way I might have in May. I didn’t go super, super heavy. But, I did step up to the plate. In this case, that worked out really well. I’m at an average of 945 and it squeezes up. I end up adding at 1050, it taps a high of 1103, it gets halted. It resumes, it dips down. We do a little dip by set up there. And then squeezes up to a high of 1163. From there it’s been selling off.

This is one that gave us a prize opportunity, got redemption on it, did really well. And then Gevo on the other hand did this kind of horrible sell off out of the gates. And then here at out of nowhere, at 10:30, it squeezes up a dollar per share.

We say stock can be irrational longer than you can remain solvent. It just is to say that in this case, yeah. Sure. I could have held this whole position here. I guess I would have come out break even. But, I would have had to hold through such a loss, it wouldn’t have been smart. Even in this one, it got me for a much bigger loss than I wanted it to. But, I tried to get out, I was hoping the here on one minute micro-pullback it would pop back up. This is what I was looking at.

I held through here because I thought first one minute [inaudible 00:13:40] will make a new high, we would ride to green and go right back up. That was certainly possible but when we broke the lows, I had to stomp out on this candle right here.

That was the right thing to do, based on my strategy. But, definitely a disappointing loss. Today is kind of a wild day. I had one of my biggest losers of the month, and I also had one of my biggest winners. It’s really not uncommon for that to happen to me because the big loss can just come from bad luck.

Just being a little too aggressive on the wrong stock, and getting knocked down. Then the big win comes from the fact that I’m being a little more aggressive to compensate for being in the red. Now, this is also the same type of trading that can get you into an even bigger loss because if I had loss on access PL, I was already down $3,000 on the day.

If this had popped up and immediately dropped back down, I probably would have been at my $5,000 dollar max loss. And I would have been done for the day. That would have definitely been pretty disappointing. I would have felt like, I chased it. Maybe it wasn’t the right set up to chase, I thought it was going to work. It was a good daily chart, there was a headline, at least. But, it just didn’t happen. You know, I just ended up being on the right side of this one.

Now, the last trade I took today was JRSH. And this one is also a recent IPO stock. I was little cautious about trading it because it didn’t have news today. But, I did jump in it at an average of 962. It pops up to a high of 1039, but it doesn’t get halted. And then two minutes later it’s all the way back down to 879. This is where I was like, okay. I’m done for the day. I only loss $397 dollars on it. But, it was a pretty big rejection. With that, I was like, no.

I thought we might see sympathy momentum because excess PL was strong, I thought this might be strong. But, I was wrong. Right now, kind of seeing those one hit wonders. And then it’s just back to a slow market, which is a little bit tricky. But, you know, it’s just the way things are right now.

Anyways, finishing the day up. $5,714.83. I definitely needed that type of big day. Last week was pretty slow for me. Just like that, it really puts a big dent in my monthly goal to make $5,700 in one day. I’m happy with that.

I’d certainly like to see the market be a little bit … A little cleaner. Definitely seeing choppy action, things are a little bit wild right now. But, I’m just going to go with it.

I saw someone on YouTube comment a couple of weeks ago. It was something about not understanding why I’m so aggressive on some of these set ups, that my entries don’t always make sense. It seems like I give into emotion a lot. I think one of the challenges with trading, absolutely, are emotions.

They’re always there, they’re always kind of on your shoulder in the back of your mind, telling you to do this, do that. And you’re always having to fight against it. The type of trading that I do is probably more likely to result in some emotional behavior because it’s a count growing type of strategies.

Where I’m being really aggressive trying to grow my account by 15% – 20% in a single day. Now, today my account is up almost 5% in just one day. Right? These types of trades, I’m being very aggressive. When things go well, my account can grow 50% in one day.

When things don’t go well, my account can drop as much as … I think the biggest draw down for me has been 10% in one day. There’s a lot of fluctuation there. And that can bring out this kind of more emotional type of trading.

Now, Mike has a strategy. He’s more of a sniper with trading. Cool, calm, focused. Maybe only trades three, four times a week. He does not trade every single day. He’s just more disciplined that way.

For me, I trade every day. I really don’t take days off, I’m always looking for opportunities. Get a little bit here, a little bit there. You know that, for me, is part of that kind of initiative to keep growing this account.

Now, I started with $583 dollars in the account. Literally, less than $600 bucks. As of today, the account is at $609,000 dollars. What I do works, but you have to be the type of trader who wants to get some quicker profits out of the market.

This kind of comes down to your personal risk tolerances, your personal profile as a trader. Now, the strategies that I teach, you’re more than welcome to focus on trading these on five minute time frames, and not on one minute time frames. That will slow things down.

You’re welcome to trade these even on daily time frames, and that slows things down even more. For me, I trade them often on the one minute time frame. Being really aggressive, trying to capture those profits and opportunities as quickly as possible. Excuse me.

But, the result is that you will see what from kind of a first glance might seem like some erratic trades or some really aggressive trades. When you look in closer. Especially on the minute chart, even in the 10 second chart, you’ll see the micro pull backs that I’m seeing. I read the tape.

I’m watching this very closely, the tape is the level two here. These are every order that goes through. This is what I watch more than anything. This and the level two.

These are things are what my eyes are on because this shows me, does the stock have strength? Is it going to move higher? Mike definitely does need to use the tape as much, because his strategies are much more based on daily time frames, and things like that.

You have to kind of ask yourself, what type of trader am I going to be? Am I the type of trader that wants to be really aggressive and try to take a small account and turn $1,000 into $10,000 in like two weeks. Or are you trader with maybe a larger account, that wants to take things a little bit slower. Make $500 here, $1,000 there. But, maybe not as dependent on making $200 every single day. That’s going to dictate the strategy that you lean towards.

Ultimately, at the end of the day. The strategy that you trade, once you’re a profitable trader, it’ll be your own. It’ll be a variation of what I do, and what Mike does. And what others at warrior trading do. But, it will be your own strategy. You’ll sort of define it, based around your risk tolerances and your personality.

Anyways. Today’s a day where being aggressive certainly worked. I don’t know where John is finishing today, I know he was taking some trades on excess PL. I think he sat on the side lines on … On Gevo. I don’t think he traded that. But, I think he’s up maybe $2,000 or $3,500 dollars, $2,500 dollars today. It’s a good day for him.

He’s a trader who, like me, wants that daily profit. Wants to get aggressive. Jump in, jump out. Five cents here, five cents there. Those our base hits. Sometimes you’re going for a base hit, you get a stock like XSPL that turns into a home run.

This is, of course, when you’re trading base hits on this price range. You can see it came up almost to that resistance point. As a beginner trader, if you didn’t understand how to draw these lines, you might not realize this is going to be a problem. Right?

For me, that’s again where years of trading experience kind of comes in. I’m like, okay. This is a place where I shouldn’t be looking to add, I should be looking to take profit. After the first halt, I’m long. After the second halt, I’m looking to start to sell out.

It’s one of those things that, you know, practice makes perfect. Keep practicing. This is a good time to be really focused on building up your discipline, trying to trade the best quality set ups. Trading to trade the stocks that you think, and make the biggest moves. Today, we’re seeing a couple of opportunities here. Gevo, moving up a little bit.

You know, I’ll miss it. I’m not going to keep trading today, I’m going to take my profit and be happy. This, at this point to me, it’s kind of like fool me once. You know? I just don’t really want to go back into it again. It doesn’t mean it doesn’t have potential, but it got me pretty good already once today.

Any of you guys watching on Facebook, watching on YouTube, I’d love for you guys to give us … Throw comments down below. I’ll come back and answer them later. I read every comment that’s posted. Sometimes I answer them in these recaps, sometimes I answer them directly at the comment. You know, if you guys enjoy these videos, I’d love for you to subscribe. We’ll have another one coming tomorrow, mid-day recap, probably around 10:30, 11:00. Hopefully, we’ll be able to see the momentum that we saw today continue, and maybe this is the turning point.

That XSPL trade, I mean, that was impressive. That might be the turning point. If you look at my calendar right now it’s like three weeks of chopping trading. A little bit here, a little bit there. And then boom, today. A $9,500 dollar winner on XSPL of $5,700 on the day.

Momentum might just be starting to change. We might be seeing the tides turning. If they are, I’m going to increase my mac share size from $75,000. I’ll go up to $10,000, $12,000, $15,000. In a hot streak, I’ll take up to 20,000 shares. When we see a stock like XSPL, that for me can be a $25,000 dollar winner.

It’s just a matter of knowing when to put the petal to the metal and when to sit on the sidelines. But, today was a great day. I’m going to start to put on the gas a little bit if we see things continue.

All right. That’s it for me. I’ll be back at it first thing tomorrow morning. I hope you guys have a good afternoon. Get out there and enjoy some of the nice weather, and we’ll see you tomorrow morning. All right. See you guys in the morning.

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