Warrior Trading Blog

Up +$1,458 Starting March GREEN!

Up +$1,458 Starting March GREEN!

 

What’s up everyone? All right. It’s a new month. March 1st. I’m excited. I’m really confident for the month of March. I know it’s going to be a great month. But today, my trades have been a little tough. I started the day with a couple of small winners and then, boom, dropped myself into the red on a $1,400 loss. It was a trade I took out of a circuit breaker halt. It was a squeezing momentum style trade and it just rolled over hard but I was able to get myself back out of the hole and now I’m up $1,458 on the day.

Green is good. I’m starting the month of March in good shape. This is better than I started the month of February. So we’re already off to a great start. We’ve got a snow storm coming in later today so I’m going to drive down to New York City tonight. Tomorrow, I’m going to trade from the hotel and I’m going to fly out and I’m going to be in California next week. I just can’t wait for some weather.

So anyways, I’ll give you lots of clips of being in California. But right now, let’s break down today’s trades in our midday market recap. All right, guys. So this is going to be a little bit of a exciting midday recap because I’m going to go over my trades but in the background, we’ve got TENX halted right now, currently up 82%. This is a really nice momentum name here. I’m up $1,493 on it. Up $1,458 on the day. Today is not a home run for me. It’s really was this day to try to just get myself back to green after being down 1,400 on this one name. We’ll walk through the trade. So just so you guys know, TENX, it was halted. Last print was at 10.47. It will resume in five minutes at 10.52, all right?

So we’ve got the time up here. We’re going to watch that for resumption. So I’ll walk you through my trades from this morning. Very first trade was on MNGA. This was off of our watch list, pre-market. It was a gap and go setup as you can see here. A decent pre-market flag. A little bit of consolidation here. On this one, I jumped in as soon as the bell rang, 10,000 shares at 1.51 average so selling at 1.51, 1.52 and 1.50. Total profit, $24.03. That’s a quarter of a cent. Very, very small win. It just didn’t hold up. It popped up a little bit. It didn’t work and I said, “Break out or bail out.” It’s not working. I got to get out. So I feel good that I was able to take a 10,000 share position and only lose or make $24. That’s in terms of risk management not bad. So that was the first trade of the day.

Second trade was CRON. This one, I got in and I … Let’s see. It said, “Cannot exceed buying power to buy 2,500 shares.” So I took one order and I was like, “Wait a second, I can’t take full size?” So then I was just like, “Well, I don’t know. I’m just going I guess hold these 2,500 shares.” I was kind of like now I don’t even want to take the trade because now I feel like I can’t really make anything on it. So I jumped into it at 9.50 right here and then I just ended up selling it at 9.70 for 20 cents. Now as it turned out, that was $500 profit which wasn’t bad but I was just kind of like, “Well, if I can’t take full size, what’s the point of even takin the trade?” So then it surprised me by working out fairly well.

It pulled back and I got in for a second trade right here at 9.50 on this little pullback. So right here, back in at 9.50. Selling again through 9.70. So in at 9.50, out at 9.70. Then down here, you’ll see in at 9.50, out at 9.69. 1,071 bucks on this one. Not bad at all. It’s a marijuana stock, a Canadian company that has just gotten listed so it’s getting a little action and ended up giving me a couple nice trades.

TENX, let’s flip back at this one. We’ve got just seconds to resumption. You can see the level two here. It was halted at 8.49. So this one at this point, if I took any trades, I’d only take a thousand shares because the risk is so high. What we saw with this one that made it really hard was big spreads. Right now, we’ve got 49 by 50, 30 by 31 tight spreads but it’s dropping. 31 by 35. The high out of the halt was 8.70. 8.70 would typically be the spot I would watch. Look at how fast it just dropped to 7.90. All right guys, so when we talk about trades that are beginner level, intermediate and experienced, this is experienced. You have to have a lot of practice before you start trading stocks like this because if you get in going the wrong direction, it can be very painful.

Here right now we have a 10-cent spread, 15-cent spread. The difference between the bid price and the ask is the spread. So 8.15 by 8.29, that’s a 14-cent spread, right? That means if you buy on the ask, you’re instantly down 14 cents if you sell on the bid. Look at how fast this is at 7.73. That happened in the blink of an eye. I know from experience. I’ve got a $1,400 loss right here from being on the right side of one of these types of stocks earlier today. They have a lot of potential but until you’re really good at being able to make decisions, split second decisions, you want to leave these for when you’re a more experienced trader, all right?

So TENX, let’s scroll back up here. We’ll look at KBSF, that was the one that got me pretty good. So TENX as you can see, from 4.50 all the way up to 8.50, an amazing move, really quite impressive. KBSF earlier this morning, it appeared it was going to do something similar. Okay, so KBSF squeezed up earlier this morning from a low of about 5.50 all the way up to 6.50, all right? So I jumped in at 6.49 with 2,500 shares and I tried to add going into the halt at 83. I did not get filled, thank goodness. It resumed lower. After the five minute halt, it resumed at 6.70 and dropped all the way to 6.03. In one candle, it dropped 70 cents.

I said, “I’ll hold it for a second. Let’s just see what it does.” It popped back up to 6.44. I thought, “Okay, maybe it will pop back up. Maybe it will curl and will be right back up at $7 before you know it.” That’s not what happened. I ended up stopping out at $6 and 5.80 for $1,412 loss. So again, this is one of those ones where it’s a similar setup, this really volatile explosive action. It’s a feeding frenzy and on this one, I got caught on the wrong side of it. We then saw a couple of other stocks pop up. XRM was one of them. No, sorry. What was it? Now I can’t remember the name. But CETX was another one of them. It popped up. Didn’t hold the level. As you can see here, it came back down.

We had another one. What was the name of it? Actually, let me just check on the scanners because they were on the scans. We had IFON, we had CETX, we had KBSF, XRM. That was close. XRM. Or no, I was right. Okay yeah, so it popped up to 6.05, 6.20 and then dropped back down. KOSS, this one, same type of thing. Pop and drop. Not holding the levels very well. So when TENX first came on the scanners, I was like, “No, no, no. You’re not going to fool me. I’ve already been fooled once today. I’m just going to wait.” But it ended up rallying. It ended up being really strong. PTIE was another one. This one, I jumped on. Again, I got a little bit of profit on it, $282 but it just didn’t hold the levels.

So I said, “All right, you know what, I got to wait until a stock holds their levels,” and the first one to hold its levels was TENX. So this is where I was watching it, right here. I drew these trend lines. I said, “Okay, guys.” The high on this was 5.49. Right now it’s consolidating sideways. That was right at this point here. So I said, “Okay, well, you know what, I like this if it can break the top of this descending resistance line.” So I like it over basically 5.30 and so that’s where I got it. I got along TENX at 5.30. I tried to take 5,000 shares. I only filled, let’s see, 3,430 roughly, all right? So I got a partial fill. It pops up to a high here of, as you can see, all the way to 69. It then drops down to 40. I was a little nervous.

I thought, “Oh Jesus. It’s going to fake me out,” and so I ended up selling half at 54 and 59. Then I added back at 6.02 and 6.12. So once it started to show strength right through here, I added back. It squeezed up on this one minute micro pullback and went all the way up to 6.60 so that ended up being an awesome trade. I sold through at a high of 6.65 which was, let’s see, that was high of day was 6.69, so four cents off high of day right there. All right? So Ronald, the recap will be uploaded on YouTube this afternoon. We always upload the same day. So it will be uploaded in three hours.

All right. So then TENX pulls back here and I’m thinking, “Okay, I’ve got $1,400 profit on it. Can I get back in? Should I get back in?” Remember, I went from being down 800 on the day to up 1,400. So I’m just grateful to be in the green and above my daily goal. I’m no longer thinking about home runs and amazing days. I’m thinking about preserving capital. So at this point, we have this red candle and I’m saying, “Look guys, we had those three green candles in a row. It was a great setup.” Maybe I wasn’t as aggressive on it I could have been partly because I was already down 800 bucks before I took that trade. I just didn’t want to push it. This was a great setup and I made $1,400 on it. Now, it’s pulling back here but it feels a little extended.

So as we see these candles, all of a sudden here it squeezed from 6.40 up to 6.88. But then it comes back down to 6.35 and you can see how it’s just sort of it’s getting choppy. It grinds here a little bit under the whole dollar of seven. I was watching it, it broke seven. It hit 7.05 with 6.80 on the bid, a 25-cent spread. So again, I didn’t feel comfortable taking that trade but boom, it goes to 7.43 all the way up here to 7.79 and then up to 8.49 and boom, we topped out at 8.70 and now we’re down in this area. But curling back up. So again, 8.70 is the spot to watch. It’s interesting but it also feels like it’s a little extended. With these spreads, it feels like it’s going to be a little hard to trust.

So I think I’m going to do the smart thing. I’m going to take my profits and be done for the day and just be glad that we are seeing a stock squeeze up 75, 80%. Because that is what we love to see. That’s the type of momentum we love as day traders. Hopefully I’ll see some good opportunities tomorrow and we’ll be able to keep building up this … My cushion on the month of march.

All right. So that’s the game plan for me. Be back at it first thing tomorrow morning, 9:15 for pre-market analysis and hopefully we can finish off this week with another couple of good trades. All right, so I’ll see all of you guys back here 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.