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Warrior Trading Blog

Trade Recap: My Journey to $799!

What’s up, everyone? All right. So, here we are Tuesday morning. This is the 105th trading day of 2018. Right now we’re still in a little bit of a grind. It’s a choppy market. Fortunately, I’ve been able to be on the green side of it today, up $799.

 

You know, a little bit of progress, but we’re not seeing those big home runs. You know, that’s of course … it’s not about swinging for the fences, but it is about looking for stocks that have big potential, because then even if you only capture a small amount of it, that’s a lot of profit.

Right now, when the biggest potential is a 5% move in a stock, well, capturing a small percentage of 5% is not a lot, and that’s why today’s a small green day, $799, 800 bucks. That’s good. I’m happy with that, but this is a grinding market.

It’s the $500 to $1,000 a day market that I just kind of have to sit through and work through until we get to the other side and we see those big opportunities. All right? We’ll break down all of today’s trades, the two of them, in today’s mid-day market recap.

All right. What’s up, everyone? We’re gonna break down trades from this morning, another pretty low stress day of trading. I took two trades, made 800 bucks, and I’m happy with that.

We’re still in that market of, you know, I would say $500 to $1,000 a day type of opportunities. We’re not seeing the $5,000, $10,000 winners that I was seeing in the beginning of May or in the beginning of April, but we’re still only … This is only the second week of June. There’s certainly time for the market to pick back up as we go into the third and fourth week. Right now, I’m kind of grinding.

The biggest challenge is I would say the emotional aspect, which is being willing to just take these really small base hits, because you just kind of get antsy, at least I do. I’m like, “Okay. I’m waiting for the next stock to really take off to give me a really good opportunity for a win, and it just keeps not happening.” That’s obviously not totally fun, but at the same time, the worst thing I could do right now is to be aggressive and then put myself into the hole.

You guys can see where I’m at today. I’ll just drag this up for you guys. $799. Green is good. You know what? If I had been aggressive today, if I had tried to swing for the fences, I’d probably be down 1,500 bucks, 2,000 bucks easily. So, I would take an $800 winner any day over a red day or anything like that. Yeah. Today … Let’s see. I’m just gonna write in my calendar, the 105th day of the year, up $799.

Yesterday, I was down 811 in the morning. I did the mid-day recap, and in the afternoon I got a $400 winner on CORV. Basically, that was a setup looking for a retest of the previous high of day. So, I ended up finishing yesterday down about 460 bucks, up 800 today. That’s good. I’m green on the week. I’m happy with that, but we’re definitely in a slow market.

Last week was quite slow. I made only $5,500, which for me is a very slow week. The week before I was red. The week before that I was break even. The last three weeks, one, two, three, and now we’re in the fourth week of choppy markets. You know, it’s just one of these things. We’re paying our dues right now for the hot streak that will come.

When it’ll be, I’m not sure, but look, in two days in the beginning of May, I made $29,000, and then the second day I made another $29,000, $58,000 in two days. In November in two days, I made $75,000. Right now, this 799 is basically to me it’s like nothing. I mean, this is just a break even day. This is just a chop day. It’s a day that I’m not red, and so that’s good.

These little days, these are just little profits until we see those big opportunities. In January, I made $116,000 in one month. So, this month, even if I end up making only $10,000, or even if I break even or whatever, that’s okay. This is the period where you’re treading water. It’s kind of like slack tide. The tide’s not going out. it’s not really going in. You’re just kind of there for a little bit waiting for momentum to pick back up. Then when it does, boom, we’re gonna jump on it, and we’re gonna jump on it quickly.

What do we do every single day? Well, the goal is to find a couple of stocks that we think have a high likelihood of making a big move. Every day starts the same way, by breaking down our gap scanners. The gap scanner’s right here, this is the scan of the entire market, showing us the scan of the entire market, showing us the stocks that are opening this morning, 4% higher than they closed the previous day.

Now, stocks only open more than 4% higher if there’s some type of news, because the standard deviation of the market is less than 4%. The market doesn’t move more than 4% on any given day typically. So, anything beyond 4% is worth us taking a peak at.

This morning, this scan of the entire market, of 15,000 stocks, returned a list of, I don’t know how many this is, but I’d say maybe 35 or 40 stocks that are gapping at more than 4%. Just like that we narrowed down the list to 40 stocks. I’m gonna go ahead and narrow it down even more to … Right now we’re just gonna narrow it down to the top 10. The top 10 is what I’m gonna focus on right here. All right?

The rest I’m not that interested in. Now, let’s start by looking at the leading gapper. This stock, GLMD, is gapping up 250%. That’s a huge gap. 2.3 million shares of volume, 7.42 million share float. We pull up the chart. This was pre-market. We see it squeezing up, and we see that it has news. It’s got phase two. It’s a pharmaceutical stock. It’s got phase two study results. They’re really positive. All right? Stock is squeezing up.

Now, on this on I said, “Okay. Here’s the problem for me.” I focus on stocks generally under $10, because that’s the account growth price range. Right? You guys know I took $583 and turned it into 100K in 45 days, and I did it trading low price stocks, because those are the ones that move 30, 40% a day potentially. Those are the types of stocks you need to be buying if you want to grow your account 30 or 40% per day. All right? So, I was trading that price range. So, a stock like GLMD, it’s outside my price range.

Now, having said that, I was still interested in potentially trading it, but I mitigate the higher risk that comes with higher priced stocks by trading with smaller size, and so I was considering maybe a 500 to 1,000 shares, 1,500 shares tops. I was watching it possibly for continuation over the pre-market high. The pre-market high was 2755, and if it has broken over 2755, that was the spot I was interested. The bell rang, and it sold off, and it really hasn’t looked back. So, this didn’t give me an opportunity to trade to the long side.

Now, someone asked me yesterday or earlier this morning why I don’t short stocks in general, why I don’t short very often. I mostly trade to the long side. For me, I see the market very clearly to the long side, and I don’t see it as well to the short side.

In the past, when I’ve tried to trade both long strategies, and short strategies, and even change direction on one stock, where I trade it long and then flip short and short it, I can get myself very confused. The only thing more frustrating than losing money is losing money both long and short on the same stock.

To me it’s kind of like if you’re driving in England and you’re used to driving on the other side road, you drive on the other side of the road. You’re used to it. But let’s just say at 10:00 AM every day you, whatever, I don’t know. You spend half the week in Paris, and you drive on the regular side of the road, and you keep going back and forth, and back and forth, and back and forth.

At a certain point you’re gonna be like, “Wait a second. Which side of the road am I supposed to drive on? I am just confused.” Right? That’s kind of what it is for me if I just go back and forth and back and forth and get myself really confused. I start to get confused with the direction, with the bias, and next thing you know you’re making some mistakes.

There are some traders that do rally well trading long and short. There are some people that can write with their left hand and their right hand, but most people are one or the other. I’m more a long bias trader. Now, Mike is more of a short bias trader, which works really well on higher priced stocks, I suppose GLMD included. If you have a short bias, if that’s how you see the marker, you’re in luck, because we do teach that, but personally, I focus on trading to the long side.

Now, sometimes I’ll call out what I think is a good looking short setup or something like that, and I simply can’t trade it, because I don’t have the shares available to borrow. These stocks, you can see here, this shows me I have shares available.

The E for easy means I can borrow the shares, because I got to borrow them from my broker, so easy. Locate means I’d have to call them and ask them. I’d have to call and ask them, and then this one’s easy. All right? Generally though, it is kind of like this, that 50% of the stocks maybe you can find, and the rest you can’t. It might even be even less than that.

This morning, GLMD, it opens and it fades, so no trades on that. It was off the watch list. It was worth watching, but for me, for my strategy, it didn’t really play out. Next one down, NAKD. This one I was watching over the pre-market highs. It has a float of 9.46 million shares. Gap is up 50%, volume is 720,000 shares, so that’s all good. Pre-market, I was a little bit unsure about it, because it had started to sell off a bit. Right? It had this high of 245. It dropped down, popped up. It sold off.

Then when the bell rang, it went red. It did a quick, little red to green attempt. It popped up, but then it didn’t hold that level at all, and it got rejected pretty hard on this big, red candle, and then from there it’s been downhill. So, no trades on that. Ultimately, it didn’t hit my trigger, which again, was the pre-market high. It didn’t hit that level, so I didn’t get in. No trades on it. All right. That’s one’s off. Well, I watching it.

The third one down, FRXX. You’ll see I traded this for $400 profit. All right. This is 16 million share float, gapping up 26%, 25,000 shares of volume. If we pull it up and we see that this one had a pre-market high of, what is it, right here, 374. I said, “Guys,” even before the bell range I said, “This is where I’m gonna be buying the stock.” I’m a buyer over 374, the same as I said with NAKD. I’ma buyer on NAKD over 245. I’m a buyer on GLMD over $27. I’m a buyer on FRXX over 375. So, I had my orders all ready to go, and as soon as the bell rings, I was just waiting to press that buy button.

So, the bell rings, and I had my orders on, all of them ready. On FRXX I typed in …Usually I type my order, if I want to get in at 375, which was the case here, I’ll put my order a little higher. In this case, I think I put it at 381.

You can see I filled 7,500 shares at 380, so I’m in at 380. It pops up to a high of 390, and I see some hidden sellers at 390, so I snuck under the ask of 290 and sold half at 389. Sometimes that works. In this case, it worked. Then I hit the bid and sold the rest at 383, and 381, and 379. A small win there right out of the gates on the gap and go strategy setup.

Entry, breaker pre-market high. I called it out pre-market, this is where I was gonna get in, and that’s where I got in. I made 400 bucks. All right? So, it pops up about nine cents. It drops down. It then does a little one minute micro pull back, taps here a high of 397, and then does a pretty sharp rejection, and from there it’s been downhill. We are in a market right now where a lot of the stocks that we’re seeing hitting these scanners, they’re not continuing higher. They’re not holding up very well.

Now, I mentioned CORV yesterday. This is the one I traded in the morning. It squeezed up from 240 all the way up to 340. That’s a big move. I got in and made some money on it. Then around lunchtime it’s consolidating, consolidating, and pops over the view app. See that pop right there?

Then as it’s consolidating here I said, “Okay, guys.” I said this in chat, “I’m a buyer over 324. If this breaks the high of that flat top … It’s tapped it once, twice, three times, four times. … I’m a buyer.” I had my order ready to go. It breaks, and boom, I get in. It pops up to 36. All right? So, it pops up 11 cents, and I sell half at I think 35 or 34, and then I ended up selling the rest break even, so it was only a $400 winner, but a winner nonetheless. 400 bucks.

On that one what I was hoping was that it would break through high of day and keep going. The reason I thought that might happen is because look at TPIV on Friday. All right? Very similar setup, consolidating in the afternoon, boom, it breaks through, and then it breaks the high of day, which was $9, and squeezes all the way up to 11. That’s a nice move, and that’s what I was hoping would happen with CROV, but it just didn’t happen. So, it ended up only being a small winner.

The important thing with my strategy is that even on trades where you look at it in hindsight, and you’re like, “Oh. That didn’t work out very well,” that for me is still a small winner, because I take base hits. Now, sometimes I’ll deviate from that strategy, and I’ll hold longer and whatever, but I’m trying a lot, especially in this market, to take those base hits, take that small gain when I have it and then adjust my stop to my entry point. If it comes back and I have to get out, break even, I get out break even. No big deal. All right.

Then the second trade today was HEBT. This one hit the scans. It was not on our watch list pre-market, but it hit our high of day momentum scanner. This scanner’s searching the markets at any given moment for stocks with strength. Boom. HEBT hits at 211, 4 million share float, really high relative volume, and volume increasing on the daily for today’s date. HEBT, I’m watching this one. I see it pop up. It taps a high of 250, 249. It then pulls back.

As it surges back up in this candle, right there, that’s where I got in. On this one I said, “Guys, if it breaks over the high of the previous candle, I’m definitely interested, and I might add in anticipation of the break of the half dollars.” So, I took a starter at 38, added at 44, and added at 55, so basically adding roughly every 10, it’s every seven or eight cents here on this, thinking that if it broke over 65 here, that would be the spot.

Sorry. I didn’t get in on this candle. I got in on this candle right here. I got in here as this started to surge up, anticipating the break over 250. It hits 260 and then it sells off. This is another one where this ended up being a false breakout, but because I was in early and because I took some profit right here, I ended up making a little bit of money on it, $395.

These are not home runs. These are small wins, and right now we’re in a market where I’m gonna be happy with small wins. It’s kind of the best that I can do. Like I said yesterday, if you can make some money during choppy markets like this, it really prepares you for when the market does pick back up.

These cycles that we see in the market, the hot cycles, the cold cycles, they’re relative to what’s happening with other stocks, because the market is really driven by the emotions of traders, fear and greed. So, when you have a stock like IMTE last month that goes from $2 to $40 in one day, which is absolutely … Obviously we know these are crazy moves. When that type of thing happens, it gets traders really excited.

We haven’t even been seeing this. This is a stock from $4 to $8. We haven’t even seen that in this market. We’ve barely seen this, where a stock goes from 250 to 450. We barely are seeing that. So, that gives you kind of perspective. In a strong market, we see the first pop, and then it goes into the second. Then it goes into the third. Then it goes into the fourth, and then off it goes up to $40.

Those are the days where I can be making 10, 15, 20, $30,000. Days like today, where the best stocks are just kind of popping up a little bit and then fading, I’m just not gonna be able to make a lot of money here. You can make some. 800 bucks is good. You know, I’m fine with that, but this is just kind of grinding until things pick back up.

What some traders would do, who are in my position of making well into the six figures trading, they would just say, “I’m not even gonna bother trading on days like this.” They’re gonna do other things, whatever, real estate business or whatever the other things they’ve got going on are. This would just be a day where they’d say, “I’m not even gonna bother trading. I’m looking at the gap scanner. I don’t see much happening. Yesterday not much moved. So, I’m just gonna leave it alone. I’m not gonna be too aggressive.”

For me, you know, I have obviously an obligation to you guys to be trading every single day, and these are opportunities to learn, because here’s a little bit of profit, and this will make you a better trader, learning how to trade through these difficult conditions. You’ll eventually get to a point where you might be making enough where you’ll just say, “You know what? I’m just gonna take the hint.

Not much is happening in the market. I’m just gonna leave it alone.” I’ll still be here in the trenches. I’ll still be trading every day, but ultimately for me if somebody I retire or whatever, I probably wouldn’t trade during these market conditions. I would just sit on the sidelines and wait for that nest stock to really open up.

What I’d be doing is I’d be scanning for stocks that have squeezed up probably more than 50% intraday. When I start seeing 5, 6, 7, 8, 9, 10 stocks doing that each day, that’s when I’m gonna start to get really excited. That’s what’s gonna get me off the bench and step up with big size. Even right now I’m limiting my share size. Under my warnings here, our trading, I’m limiting my share size to 7,500 shares.

Three weeks ago, I was taking 15,000 shares of almost every trade I was taking, so I’ve cut my share size in half, and it’s because right now this to me is not a market that deserves my 15,000 shares. I just don’t want to risk it. I don’t want to get myself into trouble.

I might even take some more money out of my account, because I don’t really need the 90,000 in here or the 350,000 in buying power. The only thing with taking money out of my account is a stock like COCP, for instance, this is a $3 stock.

If I drop this account down to $40,000, let’s say I take out 50 grand and it’s down around 40, this one I would not be able to buy 15,000 shares of, because 15,000 shares times three is $45,000. It says 100%, which means I cannot use any of the buying power. I can only use my cash balance. That would be a problem there.

A stock like [COHN 00:21:05], let’s say. COHN is one of those stocks I saw hit the scanners. I didn’t trade it today, because I didn’t trust it, but it’s $9. This is a stock in a strong market where I would consider taking 10000 shares. This one happens to be marginable, but if it wasn’t marginable, I would only be able to take 5,000 shares, right? If I take 50,000 out and I’ve only got 40K, I’m only gonna be able to take 5,000 shares of this stock if it’s on 100%, and that for me is really not enough.

BOXL, I wouldn’t even be able to take 10,000 shares of this. This is where for me I kind of … The money’s not really being put to use right now, but when the market does pick back up, then I’ll amp up my share size. I’ll start using more of my equity, more of my buying power, and those are the days where I’ll make 15, $20,000 in a single day. I still have a goal of having a $100,000 day. I haven’t had it yet. I was hoping that I would have it at some point this year. My best day right now is $40,000. It’s a great day, but $100,000 day would be pretty incredible.

If I’m gonna get $100,000 day, I need to be taking 25,000 shares. I mean, I really need to be taking some big size and getting 3, $4 per share of multiple stocks. So, I need to have big size and seeing really strong volatility. We haven’t seen it right now, but in the next hot streak, maybe we will. The IMTE hot streak, we had IMTE. We had VVPR. VVPR squeezed from $1.45 up to $7, right? You know, that’s some pretty big volatility. You know, that’s something that I’m looking forward to. It’ll come back, but right now we just got to be content with the base hits.

All right. That’s about it for me today. A couple base hits, 800 bucks. Obviously I am about $99,200 away from a 100K day today, so today it’s not gonna happen. We’re just not in a hot market. I can’t be that aggressive. This is about base hits, small gains here, small gains here. It just kind of is enough to pay your bills, keep you going, until you get those home runs.

Anyways, we’ll be back at it first thing tomorrow morning, 9:00, 9:15 on YouTube Live for our pre-market analysis. I will start trading at 9:30. Hopefully we’ll see some good opportunities right off those gap scanners.

Again, all of you guys watching on Facebook, on YouTube, I’d love for you guys to put comments below. I do come back. I read every single one of them. I reply to as many of them as I can. I would love for you to give us some comments, feedback. How did you trade today?

What are you looking at? What do you like in the market? What makes you want to trade? Any questions you have about getting into the market, feel free to put them below, and I’ll come back and answer them later.

All right, everyone. I’ll see you guys first thing tomorrow 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.