Warrior Trading Blog

Trade Recap: Red Day Contemplation -$811

Red Day Contemplation

What’s up everyone? All right, so here we are, Monday morning, and you know what? Starting the day, starting the week in the red, which is disappointing. I’m down $811.00 today, so you know, if I keep it in perspective, $800.00 in the red is no big deal, especially compared to a $10,000.00 red day, a $15,000.00 red day because I’ve had both of those this year, and right now, I’m just trying to bring down the stress a little bit, stay focused on base hits, and focused on keeping risk as low as possible.


Today, I actually had six trades, and I was green on five out of the six, which is great for accuracy. The problem is, every trade that I had today was a small winner, small winner, small winner.

One of them was as small as $5.00, so small win, small win, small win, and the problem with that is that inevitably you’re taking a risk on all the trades. One of them goes the wrong way and then you get a little slippage and boom, despite having accuracy on all those trades, it’s the last one that takes you out of the game. Today’s a day where I’m not going to try to be aggressive.

I’m not going to revenge trade. I’m not going to trade all day long until I finally, hopefully get green. No, I’m not going to do that, that’s emotional. I’m not going to trade emotionally. I’m going to be calm, cool, collected, focused. I’ll wait for A quality set ups.

Today’s the day where even A quality set ups just didn’t work out that well, so this isn’t a day to be aggressive. I’ll come back at it tomorrow morning and maybe we’ll see some good opportunities, and tomorrow could be a 2, 3, $4,000.00 dollar day, but right now it feels like we’re still in a little bit of a choppy market. Basics, stick and move, get the profit when you can and get out.

Keep your loses, your risk as tight as possible because right now you just have to stay really focused on those small gains. It’s a grind and it will be a grind until we see our next stock that goes parabolic, like IMTE.

When we see a stock go from $2.00 to $40.00, you better believe that’s going to create a new round of momentum, and on a week like that, I could make $50,000.00. I can make $75,000.00, so right now $800.00 up, $800.00 down doesn’t matter. It’s just a grind until we get those next parabolic stocks, so that’s the name of the game, but anyway, let’s break down all of today’s trades in today’s Midday Market Recap.

What’s up everyone? All right, so time for our Midday Market Recap. We’re going to go over the trades from this morning. Today was a little bit of a choppy day for me. The market has been choppy for the last, pretty much two and a half weeks. It’s just been, it’s been a grind. Mid $2,500.00 on Friday, which was a nice, green day. Today I’m sitting down $811.00, and I’m just not really going to fight it, you know. NNDM is the one that I traded the most.

I took four trades on it, three small winners and then one big loser. That’s never what you like to see. You want to see, you know, I mean if anything, you want to see big winners and small losers, but that’s not the type of market that we’re in right now.

Even A quality set ups are not working very well, and so NNDM, this is a stock that we found. It’s up 112% this morning, and then CORV’s the other one I traded. That one’s up right now 38%, these are big moves. Each morning we have the same routine. We look at these gap scanners. These scanners, really they’re like my secret weapon for finding stocks to trade, and sure, not every day is going to be a green day, but I’m still sitting up 200, 70,000 or so on the year, and it’s June 11th, so life is good. I’m doing a pretty good job.

Now with this scanner, what it’s doing is it’s looking for the stocks that are gaping up the most in the market today, and so we narrow down the list from 15,000 possible stocks to trade, down to about 30. All the stocks in green here are worth watching. The stocks in red would be gaping down. I don’t trade those, but some traders do like to trade those.

What we have, and I’m just going to run this scan. I’m going to use a historical date and time. I’m going to put this on screen so you guys can see, for 9, let’s see, 15 a.m. One, five, there we go, all right 9:15 a.m. This is what the scanner looked like this morning at 9:15. NNDM was gaping up 78% with 2.4 million shares of volume. The float is 9.5 million shares, so this is a stock with a pretty low float, which is what we like to see.

It was gaping up quite a bit, and it had news, so that’s really everything we go for right there. When I see NNDM, right up here, what I do is I type it in eSignal, my charting platform, and then boom, it’s going to pop up the headlines, all right? It’s got a Department of Defense contract, which is a great headline. We always like to see that from small cap stocks.

This morning I was thinking, “All right, I’m interested. However, I’m a little nervous because at 9:15, or right around 9:00, it had already shown some weakness.” The pre-market high was 260, but then it had sold off a little bit on this dip, so I said, “Well, you know what, I’m going to watch this for a break over 250, when the bill rings.

If it can break that psychological level, there’s a great chance it will hit 260.” All right, so the market opens, the bell rings, and I jump in at 245, 5,000 shares, 245, just like I said I was going to, to anticipate the break of 250.

It comes up, and it hits 250, and then we saw resistance, and that’s what made me nervous. It hit 250, it pulled back, and so I was like, “All right, I’m not really sure this is going to work.” That was in the first ten seconds, and then it blasts off.

Now you can see right here, we’re right around this $3.00 spot, but it’s really churning, so what you’ll notice is that this is the 200 moving average, this purple line on the Daily Chart, and that is forming a little bit of resistance, some overhead resistance. It’s having a hard time breaking that level. 22 million shares of volume right now, it’s quite crowded.

Crowded means it has tug of war. There’s a lot of traders who are wanting to short this stock, who thinks it’s going to bounce off the 200 and in a couple days it will be back down at 250, maybe $2.00, so they’re selling, they’re shorting. Then you have traders who are buying, the way I usually would, for a break over $3.00, right? I was watching this, and stalking it for the break of 3, but what happens?

You get in at $2.95 and it hits $3.01, $3.02, that’s not a very convincing breakout. That’s sort of the problem. We’re seeing this just sort of grinding, chopping action for the last ten minutes on this thing, and we saw it earlier today as well in this area, so on this one I’m finally saying, “You know what? I’m just going to be done for the day. I don’t feel like I can really trust it.”

On my first trade, I was in and back out with only $250.00 of profit, and then it squeezes up to $2.90, but I didn’t chase it. I said, “I’m not going to chase. I’m going to wait for a good pull back,” and the spot that I got in was right here at $2.85, so I said, “Guys, I’m watching this for the first [inaudible 00:07:27] to make a new high,” and as soon as that happened I jumped in at $2.86 and $2.89. It popped up to a high of $3.00.

I was wanting to see it break that level, but it dropped down, and so I stopped out at $2.94. I guess I sold half at $2.99. Actually I sold some at $2.99, but the rest at $2.94 and $2.88, so it just wasn’t a very clean trade.

It then curls and starts to come back up, and so right here I’m like, “Okay, I’m going back in this thing because I think it’s going to break over that level,” so I get back in and it pops up to 88, and then I get stopped out. Sorry, I got back in on this candle right here, so I got back in here.

It pops up, I stop out, I lose $200.00, so I’m like, “All right,” at this point I went from up 900 to up only 650, and then I get back in at $2.95, $2.94, $2.95 on this candle because I’m like, “Okay, looks like it’s going to break this critical level of resistance of $3.00, target will be $3.10”.

I get back in, it pops up, and then a second later it’s back down at $2.63. I stop out at $2.73, for a $1,600.00 loss. Just like that I go from being up $600.00 on it, to down $1,000.00, so that was disappointing.

It just did these false breakouts here, and here, and here. Now, finally, an hour plus later, it’s broken over 3, but it’s not even able to hold over 3. It hit 3.04 and was back at 2.94, 293, so this stock is just very choppy.

That’s what we mean by choppy. It pops up, it drops down. It pops up, it drops down. It doesn’t sustain the levels very well, so kind of disappointing there. We’re seeing false breakouts.

On the five minute chart, we saw false breakout right here, as the new candle made a new high, and then dropped. We saw another false breakout right here. Candle made a new high, and then dropped, so false breakout, false breakout, and finally it curled off of this low, which was nice, but I just didn’t have a lot of faith in it.

For me, even though I am right with 75% accuracy on that stock, I’d down $1,000.00 because the winners were small. That one loser got me pretty good, so little disappointing there, and then I made up for it a tiny bit with CORV. I took a couple trades on this one, so the first trade on this, I took at 3.10 all right?

Right in this area, this one hit our high day momentum scanner, and right in this area it was consolidating under 3.10 right here. I was like, “Okay guys, if this breaks 3.10, I’m a buyer.” It breaks 3.10, so I jump in. Boom, 3.10, 3.10 I’m in. It pops up, and I’m like, “Okay, this looks good. I’m going to add because this looks really strong,” so I added at 3.29. It hits 3.29 and then hits 3.40, so really nice breakout there, but then it comes all the way back down.

Look at that, all the way back down here to 2.95, and so I end up stopping out of that trade with $5.00 of profit. I stop out, break even, which was the right thing to do. It then curls back up and I get back in, anticipating that it’s going to retest high of day, and that doesn’t happen. I get in at 2.23. I add it to 30, and then it does this little one minute micro pullback, as you can see here. Hit’s a high of 35 and the fades, so total profit $224.00.

This is a day where, we just didn’t have a lot of good follow through, and the reality is, it’s not like I really missed anything. I mean I missed, the one thing I missed was NNDM, that first leg. This was the cleanest move of the day, and it faked me out, right here, and for me, it was the right thing to do to get out because I’m not in a position where I could be aggressive.

This is where that kind of is costing me a little bit, since I have to be more conservative, I got out quickly, and then I ended up missing this really nice opportunity, which is disappointing. I tried to do some scalp trades in this area, and took a loss, but all things considered, today is a very small day. Down $800.00, it’s really not a big deal. I made 2,400, 2,500 on Friday, so being down 811 here this morning is not bad. This is a day where I have exercised self control, discipline, patience. As tempting as it was to try to get back in NNDM, I didn’t.

The only stock that I was a little more aggressive on, to answer your question there, is CORV. This could have been a bigger winner since I had 5,000 shares at 3.10. It went up to 3.40, so I could have sold at 3.30 for $1,000.00 of profit, and instead I added, so that was maybe a mistake, but at the time it was hitting our scanners.

Where is it? It was hitting our scanners right here, and then again up here, so it looked to me like maybe it had potential as a big breakout on the daily … I just sort of thought, “Maybe this is the one that’s going to make a big move,” and you know, I was wrong. This was sort of a little bit more aggressive, and maybe I was a little bit more aggressive on this, to try to get myself out of the hole on this one, and it just didn’t really work.

Again, it’s not really that big of a deal. I didn’t risk, I wasn’t really risking going in the red, but I risked my profit. Instead of taking the profit, I let it ride for a bigger move, and I got stopped out, so that’s the way it goes sometimes. I’m not going to beat myself up on that one. Overall, you know, it was just a little bit choppy, so down $800.00, whatever, not a big deal, but disappointing only in the sense that it means that we are still in a choppy market, and I would love to be seeing a little bit more follow through, you know? I would love to be seeing those 3,000, 4,000, $5,000.00 winners, but we’re just not seeing that right now.

The good news for you guys is that this is a great time to be trading in the simulator, and to be practicing because if you can make money in this type of market, and last week I did make money, and this week, you know, I don’t want to jinx myself, but this week most likely I’ll have some decent days. Down $800.00 isn’t that big of a hole to dig out of. If you can make money in this type of market, you’re setting yourself up really well for when the market does start to pick up again.

Some traders have asked me, “Okay, well when is that going to be? When is the market going to pick up again? When are we going to start seeing big opportunities?” Typically what happens is, it’s not seasonal. It’s not like, “Oh, September 1st we’re going to see big opportunities,” or “August 1st we’re going to see big opportunities.” It’s cyclical, and so right now we’re in a little bit of a slow cycle, and that’s just because we haven’t had a lot of good stocks with really, really good news headlines hitting our scanners and giving us breakouts. We’ve seen a few heavier float stocks, but it’s just been a little bit choppier.

Usually what causes the next cycle of hot momentum will be the next stock that goes from $2.00 to $10.00. The next stock that just totally takes off, that’s usually going to get traders off the sidelines, back into the market, and excited. A lot of traders with big accounts don’t even trade on days like today. Maybe they trade NNDM, but for the most part they’re just like, “No, I’m just going to wait for hot momentum to come back.”

For me, I trade through all markets, so it’s hot, I make money. It’s cold, I sometimes lose a little bit of money. Sometimes I make some money during cold markets, but usually not a lot, maybe 5,000 or 10,000 a month would be averaging on a really cold market. Other traders totally don’t even trade during that time period. They’re just like, “No, I’m going to wait on the sidelines, and when I start to see stocks taking off, that’s when I’m going to come out and start to get aggressive.”

What you have during slower markets are less participants, less traders, just in general less people are trading. That means less volume, less buyers, less breakouts, fewer breakouts, so what we need is that next stock to go from $2.00 to 4, to 6, to 8. To go up 300, 400% so you can get traders excited, to get them off the bench and back into the market, and then what you’ll typically see is sympathy momentum.

The next stock that hits the scanner, starts to get even more volume because traders who missed the first one, who were sitting on the bench, they want to take advantage of the second one, and the third one, and the fourth one. That’s usually what starts that next cycle.

At this point, I think we’re still going to be in this kind of base hit market. You might see, here and there, some stocks open up a little bit. TPIV opened up on Friday, which was a nice move. This squeezed up from $6.00 up to $11.00. It was a really pretty nice move, but you know, the price was a little higher, didn’t get traders super excited, so little opportunity on that, which helped get me the 2,500 on Friday, but there’ll be a little bit here, a little bit there, but I think we’re going to need that stock to really go parabolic before we see the next round of momentum, all right?

That’s kind of the game plan here is sitting tight, being patient, not over trading, under trading if anything, being more conservative. On TPIV on Friday, I did do the whole thing of like adding instead of selling, and that worked out well. Today, on CORV, it didn’t work out as well. Tomorrow, you know, maybe you’ll see something that it will work on.

For me, what’s most important is that I’m grinding on kind of slower numbers. I take a little bit of profit, but I don’t push it. None of my trades are big blowout numbers, so even though I lost on that last trade on NNDM, I only lost $1,600.00 on that trade. For me, I have to be very, very careful not to have 4,000, $5,000.00 losers right now, because I can’t afford it. I’m not in the type of market where I’ll be able to bounce back quickly from that type of loss.

Trading with smaller size, and being quick to bail out is important, that kind of stick and move sort of mentality, and I’ll just keep that up this week, especially since we’re off to a little bit of a slow start here on Monday morning, all right?

Today, total of six trades, and I actually made money on five out of the six, but they were all small winners, and then I had that one loser on NNDM, which was a bigger one. Accuracy is good, but the follow through is a little bit weak, and that may continue to be the case for another couple of days, until we see that next stock really start to take off.

Anyway, that’s about it for me here this morning. I’ll be back at it first thing tomorrow morning. Hopefully we’ll see some good follow through. We’ll see some good opportunities on the gap scanners, and I’ll be breaking it down on YouTube live, right around 9:00, 9:15 tomorrow morning. All right everyone, so those of you watching on Facebook, YouTube, I’ll look for you guys to throw comments down below.

We’ll come back and answer all of them later. I read every comment that’s posted, so I love for you guys to ask me questions, tell me about what you’re learning, what you traded today, how much you made, all that type of stuff, all right? Hope you guys have a great afternoon. Relax a little bit, get outside, enjoy the nice weather, and we’ll be back at it first thing tomorrow morning. All right, I’ll see you all in the morning.

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