Warrior Trading Blog

Trading Recap: Red Day Contemplation -$448

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What’s up everyone? Alright, so Monday morning and you know what? This week is starting really, really slow. Only two trades today and both of them were losers. My first trade I lost $36 on 7500 shares and on my second trade, I lost $414 or $412, sort of on 7500 shares. I started with 7500 and then, I sold all except for, I don’t know, 500 shares. And then, I added another 7500 and I went from being up 400 on the name to down 400. So, I guess 15 or 16,000 shares traded, whatever. Two trades, two losers. I’m done for the day.

 

I’m not pushing my luck today. The caution flag was out pre-market because we just didn’t see a lot on the scanners that looked good. And it’s really important, for me especially, because I’m not always good at this, to start to see that rain on the windshield. Remember when I talk about trying to get your best lap time? You’re driving a race car around the track, and you start to see it’s starting to rain, starting to sprinkle. You know you’re not going to have your best time, you’ve gotta ease up. If you keep going hard, you’re going to spin off the track, and that’s what happens to me with trading.

I don’t recognize the choppiness in the market, I keep trying to push hard, and then, I end up spinning off the track, having a big loss, and spending the next week digging myself out. So today, I was like, “No. Slow down. We’re not seeing very many gappers.” And then, once the bell rang, the gapper that we were watching, BOXL, it dropped. And then, the other stocks that hit the scanners, popped up and sold off immediately. So I was like, “Okay. Let’s go really easy today.”

First stock that looked decent was well, VNET, and UAVS. They were okay, but I lost money on both of them, so not very good follow through today. That’s all right. Down 450 bucks, I’m still up $76,000 on the month. I have no right to complain. Today was just a slow day, so that’s all right. We’ll break down all of today’s trades in today’s midday market recap, and then we’ll be back at it first thing tomorrow morning, 9:00-9:15, for pre-market analysis.

All right, everyone. We’ll break down the trades from this morning. Today was a slow day. I only took two trades and both of them were losers, which is a little disappointing, but this has been an awesome month, and today’s my first red day in more than a week. Down $448 is really not bad at all, considering I’m still up $76,000 on the month.

Now, today’s the a day where we just didn’t see a lot of follow through. We didn’t have a lot on our watch list, and really the only thing on the watch list the morning was BOXL. This one was gapping up so it was on watch, but I didn’t really trust it. I felt like the daily chart just wasn’t very good, and I felt like it’s been overdone, you know?

We’ve seen a bunch of moves on it in the last few weeks, and I just didn’t think it would hold. It ended up actually doing a really nice red to green move, as you can see here. It sold off, it popped up over $9, up to a high … I’ll turn this down. Up to a high of 9.68, and then it came back down. It did a red to green move, and then went low of day and has been selling off pretty much since then.

Couple taps of the VWAP, but it’s just very weak. So no trades on BOXL. Really nothing that looked good. Then that was basically it for the watch list. There was nothing else on the watch list. So, right out of the gates, BOXL sold off. We had a couple that hit the scanners very early on. ATXI hits the scanners, pops up, and sells off. I was kind of like, “All right, this is the type of market we’re seeing today. We’ve got to be really careful. I might not take any trades.”

BOXL pops up on the red to green move, LEDS pops up, sells off, pops up again, sells off. Not easy to trade. UAVS, this one actually was also on our watch list, because it was gapping up pre-market, but I didn’t really think it would do much. I wasn’t sure if it would work. It broke 2.75 and popped up to 2.90 and then pulled back. Then it came up for a second attempt, and that’s when I got in this one.

stock chart

I jumped in UAVS, anticipating the break of $3, I jumped in at 2.90, 2.92, and 2.99. I then scaled out at 3.05, and sold some more on the bid at 2.95, basically breakeven. Sold a little more at 3.17, as it popped up here to a high of 3.23. It then pulls back on a micro pullback, and I added at 3.15, 7500 shares, and that was a mistake. It popped up to a high of 3.20, and then dropped all the way back down and I ended up stopping out, some of it breakeven, and the rest for a loss at 2.91.

stock chart

I went from being up about $400 on the name to down 400. I shouldn’t have added on the one minute micro pullback, but I guess I thought it was worth a try. But it didn’t end up working. So down 400 on that, and then down $36 on VNET. This one, it wasn’t on the scans, but I saw it early this morning doing this little one minute micro pullback, and I thought that that looked pretty good for a move higher. I saw it had squeezed all the way from 6.80 up to 7.50, consolidating right here under the half dollar.

I jumped in at 7.50, 7500 shares, sold half at 7.62, sold the rest at 7.53, and then all the way down at 7.26 and 7.30. I ended up losing only $36 on it, but it was a pretty ugly false breakout. It did end up coming back up, but it just really didn’t hold up very well. So, today’s a day where the momentum just wasn’t there. We just didn’t see a lot of opportunities, and instead of pushing it, instead of trying to get myself back to breakeven today, or whatever, hit my daily goal of 1000 bucks, I’m just saying, “You know what? Today’s not a good day for momentum. I’m throwing in the towel.”

Two red trades, I don’t need to push my luck any further. I’ll be back at it first thing tomorrow, and hopefully we’ll see better opportunities then, but really, there have not been hardly any good opportunities for traders who trade to the long side today. ADOM, there was a little bit here on this one. It’s a little on the cheaper side, 38 million share float is a little on the higher side, so I just didn’t like that combination.

Ended up doing a nice five minute pullback setup here from a $1.50, $1.60, up to $1.95, but I missed it. Again, I’m not going to beat myself up today. I still have a goal of hitting 100k this month, and I’m $24,000 off that level. Today’s not a day I’m going to have a 5 or $8000 winner. It’s just not going to happen. My best bet is to sit back, be done for today, and then come back at it tomorrow.

One of the things that I said earlier today is that I can’t remember when this was, I think it was last year, I had a red month, I think it was the month of April, and then in the month of May I came back and I said, “In the month of May, I’m only going to trade” … What I said is I’m going to trade twice my regular share size. So instead of trading like 4000 shares on average, or whatever it was, I’m going to trade 8000 shares. Because I was doubling my share size, and that might not have been May. I can’t remember when this was.

Because I doubled my share size, I started to become very picky about what I was willing to trade, and a lot of times I would say, “This looks interesting, but I don’t think it looks good enough to take 8000 shares” so I wouldn’t trade it. So, that month I ended up trading a lot less, but everything I traded, I had really high levels of confidence in, and I ended up making a lot of money, because I didn’t trade as much, but I traded high quality setups with bigger size, and I did a lot better.

Today’s a day where I start looking around and saying, “You know, if I don’t trust taking this with 10,000 shares, is it even worth taking?” I mean, yeah, sure, I could take 2500 shares and maybe I’ll make 10 cents and make 250 bucks, but when my goal is to make $100,000 this month, 250 here, 250 there is not really worth it. I need setups that I really feel confident in, and that I’m willing to take 10 or 15,000 shares of, maybe even 20,000 shares. If I don’t see it, well, maybe I shouldn’t even trade today, because the reality is, if I don’t feel confident enough to take a big size, then it definitely says something about the position, about the stock.

It doesn’t take much with 5000 or 7000 shares to lose a couple hundred here, couple hundred there, and the next thing you know you’re down 1500 bucks, and it was unneccesary. That worked for me today, just staying focused on if it’s not A quality and I don’t trust it with 10,000 shares, don’t even bother. I took a couple starter trades this morning. Wasn’t able to get anything started, and then just kind of said, “You know what? I think I’m better of calling it a day.”

Finishing in the red, $448, on the 90th trading day of the year. But my average is still $3117 per day, average. Sitting at $280,000 on the year, and it’s only May 21st. I mean, this is looking like it’ll be a great year regardless. Last year I finished with 380,000, so I’m only $100,000 shy of last year’s total profit, and we’ve still got six and a half, seven months to go. I mean, we’ve got a lot of time here, so that’s exciting.

I think this is going to be a great year, and it just means that yeah, when I have days like today, I’ve just got to be really quick to close up shop and walk away, and not fight it, and not try to get myself out of the hole, and then end up getting myself into trouble and going deeper and deeper into the red.

Anyways, that’s the goal, and today was a good day. Even though it’s a red day, it’s a good day, because I closed up shop early, and I’m not fighting against the current of the market, which today is pretty choppy. All right, so anyways, that’s about it for me. Only two trades, not much to go over. No charades in the IRA account today. I took all three last week and two of them on Friday, so sitting at 21,000 in the IRA, which is good.

About $4000 off the $25,000 level, so trying to get that above the PDT spot as soon as I can, but it’s slow and steady wins the race there. With this account, if I see a really good quality setup, something like CALI, and I can take 7000 or 8000 shares on one of these stocks, and make 50 cents, boom. One trade, I’m going to be up over $25,000.

At this point, I’m within one trade of 25k, as long as I take really good quality trades. I’ve got to be very disciplined in this account, focus on A quality setups. Again, it’s going to be something that I can take with big size. I wouldn’t trade anything probably above $6, because I’d only be able to take like 3000 shares. I want to trade between $3, probably between $2 and 3.50, $4, so I can take at least 5000 shares. Then, if I can make 50 cents or a dollar per share, boom, I’m going to be up above 25k.

That’s the goal there with the IRA, but I’m not going to be able to trade in it until Wednesday, so I’ll sit tight on that one today and tomorrow. Main account at 154,000 right now. I’ll be taking money out of this at the end of the month, because half of these, my profits this month, are going to various organizations. As of today, I guess it’s still right around $38,000 that I’m giving away, and I encourage you guys to also participate in the Warrior Gives Back challenge.

We’re going to do, let’s see. Let me pull up this page. You guys can check it out. I think some of you guys have already put in emails, so we’re going to be tallying up your pledges. All right, so Memorial Day challenge. This was my 32,000 from last week, so it’s going to go up to 38,000, and we’ll be adding your pledges. As you go make pledges, you say your name, email, the organization, and the amount that you’re going to donate this month. Again, we’re not collecting the money, it’s just a pledge to see how much in total the Warrior Trading community is donating to our local non-profits.

All right. Anyways, that’s it for me today. Anyone watching on Facebook, on YouTube, love for you guys to give us the thumbs up. Subscribe to the channel if you’re enjoying these videos, and we’ll be back at it first thing tomorrow morning, pre-market analysis around 9:00-9:15. All right, I’ll see you guys in the morning.

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