Warrior Trading Blog

A Warrior’s Journey & a $25K Donation! | Ross’ Trade Recap

special guest

What’s up everyone? All right, so we’re going to do our midday market recap today, but guess what? I have a special guest who’s going to come in here and sit next to me while I’m doing the midday recap and I’m going to give them a check for $25,000 and he doesn’t know it’s coming. It’s going to be pretty cool. I’m pretty excited.

 

So, what I’m going to be doing is I’m going to be talking a little bit about my journey, how I … My journey, right? How I got to where I am today. This was, for me, just a combination of being in the right place at the right time, learning a few critical things when I was going through high school and early college that allowed me to become a day trader and to open this company Warrior Trading and do what I love every single day.

90% of people are going to go down life and they’re going to follow the rules. They’re going to be just the 9 to 5 job, everything else. That was never going to be me. It just never was and so I knew I was going to be on the outskirts on one side or another, and for me, day trading has been just an absolute blessing. I want to be able to help of course more people live life on their own terms. Day trading has given me that ability and I know it can, for those of you watching this video who have been kind of thinking about it. So, what I’m gonna do is I’m going to put a link in the description below for you to register for one of my upcoming workshops, where I’m going to teach you a few more of the secrets to my success as a trader. All right. We’ll talk about some of the highlights today, but if you really want to keep learning, make sure you register for the workshop.

All right, so enjoy this recap. This is probably of all the ones I’ve done, one of the ones that moved me the most, so hope you guys enjoy it. Any questions, any comments, leave them below and of course I’ll come back through and answer them later. I love seeing your comments. So I will come back and answer them. All right, enjoy.

So we’re going to do a midday market recap here today. We’re going to go over of course my trades from this morning. I’m finishing the day up $1,912.45 which is another really a solid day of trading. I mean, we’ve got a couple of good opportunities. So, we’ll break down those trades. You’ll notice my shadow today, Gavin is gone but Eric is here. So, Eric is hanging out with me today. He actually works over at the Dublin School which is where I went to high school and he wanted to come down and kind of see what I do every day. For me, and this is, we’re all on the same journey, this goal of really living life on our own terms. Now, for me, when I first got into trading, as you guys know, it wasn’t to try to make a million dollars.

It wasn’t to drive a red Ferrari or fly on private jets or a drink champagne every single day. It was so I didn’t have to go into a 9 to 5 job. For me when I was in my 20s, I was going through a lot of anxiety but even long before that, just to take you guys back, when I grew up in Brattleboro in Vermont, I went to the public school for my first six years up to 6th grade, six years of schooling. That, for me, wasn’t a good fit. I was getting bullied a lot, which you guys, I mean, for someone as handsome as me, yeah, I didn’t have this beard back then. I didn’t have this ponytail. I was not everything that I am today and school was really hard for me. My parents made the choice of putting me into a different school for middle school. I went to a Montessori School for two years and then there was a question of what do I do for high school.

Do I go back into the public high school with all those kids that were bullying me when I was in 6th grade? Or do I go somewhere different? So I ended up going to the Dublin School in Dublin, New Hampshire. That for me, when I first went there, I looked at a lot of different private schools. Looked at Deerfield Academy. I looked at Vermont Academy, Putney School, Northfield Mount Hermon and I ended up choosing the Dublin School because it just for me felt like a group of students that were very much like me. In those days it was about 100 students total in the whole school from 9th grade to 12th grade. So in my 9th grade class, there were about 25 or maybe 30 of us. So it was a small school and we all got a lot of attention and I spent a lot of my time in the computer lab and I was getting really into computers.

For me those four years at Dublin were so pivotal in me developing my sense of self and recognizing that it’s okay not to try to go down the same path as everyone else. Obviously I haven’t gone down the same path as everyone else. I ended up going to college for a couple of years. It wasn’t a really good fit. Dropped out of college, ended up finishing my degree at a community college, at the Vermont College in Brattleboro. For me college just, I didn’t get a lot out of it. In fact, since I graduated college, I have never actually looked for a job where I put my college degree on my resume even though I have that college degree. I think for me, I got everything that most people get out of college from the four years I spent at the Dublin school.

So when I started getting into day trading, a lot of people were questioning it, both my family and my friends, “Ross, you’re going to gamble away the little bit of money that you have. You shouldn’t do it. It’s too risky.” But I believed I could, like every single one of you who are in the chat room believe you can. I saw other people doing it. I knew that just as quickly as you could lose money, you could also make money if you were on the other side of the trade. I was inspired. So I went down that path and it was two years of trial and error, two years of struggling. But I eventually turned the corner.

Now you guys know for me, my whole turning point was discovering every single day there’s a stock that moves at least 30%. Even with a small account, if I focused on those stocks, I could make a living. Look at VTVT, today from $3 up to $6 in two hours. It’s got a 37 million shares of volume. That right there is an opportunity, okay? We see these types of things happen. Well that’s a 200$ move, but from what it closed at yesterday, which was two. But, we see these types of moves happen on a weekly basis really. It’s incredible. Once I was sort of halfway through my first year of trading, I pulled on some of those skills at I learned Dublin and started building a website and that was daytradewarrior.com and I have learned how to build websites and how to write in HTML. So I built our first website and I set it up as a WordPress site.

Then in 2000, 2012 and 2014, I taught our first day trade course. In 2015, I used everything I’ve learned about writing, which I certainly didn’t get in my limited college experience, but what I did get at Dublin to write our book, How to Day Trade. It’s a bestseller. It’s right behind Harry Potter and 50 Shades of Grey. It really sells like hotcakes. It’s incredible. So, when I think about my journey to being where I am today, not just that choice to take my own path and become a day trader, I attribute a lot of it to what I learned at the Dublin school and building the skills that I had to use the computer, which I’ve used to make a ton of money and as a trader and using it to build this website and this community that’s now home to literally thousands and thousands of students.

So you guys may not be aspiring to run your own business. You may just be thinking, “If I can make my $200 a day as a trader, that’s good enough.” Hey, I’m okay with that. That was my goal when I got started. It just sort of ended up organically growing into what it is today and I do love what I do. So, what I wanted to do, of course, we have Eric here. You were talking about, a few minutes ago, you were talking about that highway. Do you want to tell me that story again? The highway that most people go down but some people are on the outskirts.

Sure, absolutely. What Ross and I were talking about was how so often what we see, particularly when kids come out of college, is that they are funneled in a certain direction and what Ross was strictly referring to is he’s talking about his sister. She went to college. She did all the right extracurricular activities. She did the honors. She’s all the things she’s supposed to do. Graduated from college, got a good job, and that’s pathway that so many people take. But there are those who live in the periphery and quite frankly, they are people who look at that mass of people on that main highway and they say, “That’s not for me. That’s not really where I belong.”

A lot of these people who you see on the outer edge, they aren’t in that mainstream, but they’re doing extremely well because they have found ways of making it in life that aren’t necessarily following the traditional pathway that’s prescribed that lot of people are on. What you typically get when you’re on that pathway that is prescribed that most people are on is the usual common and typical results for yourself, for your life, for your income, et cetera. But if you really want extraordinary results and want to do something different, you’ve got to get out of that mainstream and get on the periphery to be able to see life a little differently.

Yeah. It, at the beginning, is scary and it was scary for me. I really look up to my sister. She’s my younger sister, but I look up to her in a lot of ways for having the discipline to go and go through that proper for your college experience that I couldn’t go through, to do a study abroad in Africa to get a really good job working at a hospital. I mean, I couldn’t do any of those things that she does. For me, for whatever reason, following that right path was very difficult. So when I was learning to trade, I felt like I’m the kid who’s … I could go either way, I’m either going to be a huge success or a huge failure. And I was of course worried I’d be a failure, but I stuck with it.

So Eric brought this pen, Dublin Endurance. Just one of the, I guess, new models of the school. I definitely had that and every single one of you guys have that, those of you who are still in the chat room today, those of you who are going to watch this later on our YouTube channel, on Facebook. It’s having the endurance and having the courage to do something different from what 90% of people are going to do. For me, I was willing to take a pay cut to live a life on my own terms. How many of you guys right now are willing to take a 20 percent or even a 50% pay cut to live life on your own terms, to be your own boss, to not have to go in to a 9 to 5 job anymore? Because when you go into that 9 to 5 job, you’re helping make that person’s dreams come true and you may still pursue your dreams on the side, but not to the same extent.

So every single one of you guys in the chat room, you’re saying, “Yeah, yeah, yeah, absolutely.” That’s what I did. In my first two years, they were a pay cut, absolutely, until I got to the other side. So for me, I’ve thought about this a lot, the most, I mean, the most critical skill that I learned both at Hilltop, at the Montessori School and then really nurtured and developed in Dublin were those computer skills. If it weren’t for those, I probably wouldn’t have come back up to Vermont and said, “Okay, I’m good with the computer. How do I turn this into a career?” Even if I had said, “Maybe I’ll start day trading,” I probably wouldn’t have been quick with the hot keys. I type faster than most airline booking agents. I mean, I’m lightning on the keyboard. That for me is an asset that allows me to be a very profitable trader.

Literally this morning in the first, let’s see, let me just scroll up, in the first 40 seconds of trading this morning, I made over a thousand dollars in less than 40 seconds. I’ll show you the stocks I traded this morning. VTVT was one of them. It was up 48%. NVCN was the other. It’s also up now 38%. But what I want to do is really encourage students today that are at the Dublin School to focus on those computer skills. Because if it weren’t for those, I wouldn’t have been able to build. I wouldn’t been able to afford to have someone, to pay someone to build the Day Trade Warrior website. I built our website myself. We only have the website done professionally a year ago. I mean, all the versions leading up to then for six or five years or whatever it was, those were all versions that I did. Some of you guys are gamers and you know what, that’s okay too, because you’re good with the hot keys, you’ve got good hand eye coordination, but I really want to encourage that. So what I wanted to do today for Eric is give him a check for $25,000 and I want it to go towards the computer lab.

Thank you.

Yeah.

Ross, thank you so much.

You’re welcome.

That’s wonderful.

Yeah.

Thank you.

That’s something that I know will really help those students. That for me was, I mean, if it weren’t for that, I wouldn’t be here right now. I wouldn’t be a self-made millionaire if it weren’t for know those computer skills. So yeah, I mean it’s really a big deal for me. I didn’t have every advantage that a kid whose dad works at a hedge fund has or any of that stuff. I had to really create pretty much all of this myself and so I hope that some other kids will be able to do that as well. So, when we look at the stocks today, like I said up 1,900 bucks today, $5,000 yesterday. It’s my 9th green day in a row, 179th trading day of the year. We’re just continuing to grind along. You guys, you might not know this story, but I started with a small account January 1st of last year. I started with $583 in my account and I want to prove to everyone that being a successful trader does not require starting with a lot of money. Even $583 is enough.

As of today, my account is sitting at, let’s see, let me just scroll up, we’re sitting at 717,636.27. I’m about $282,000 away from crossing a million dollars. I hope that will happen. If not by the end of this year, early next year. So within two, maybe two and a half, three years at most, I’ll have $583 and turn it into a million bucks. It’s all just based on trading the same strategy that trade every single day. All right, so let’s look at, I’ll put up the big screen for you guys to see my trades from this morning. So you can see here on my Lightspeed account, $1,912.45. All right, so I traded three stocks, no huge standout winners, not like I had yesterday, but a few decent trades. So every single day starts the same way. This is an educational opportunity for Eric. Basically, what we’re looking for, that discovery that I made in my first two years was realizing that every single day there’s a stock that moves 20 to 30%, every single day.

So the goal is to try to find that stock before it makes the big move. To understand, what creates the likelihood for a stock that’s maybe up 5 or 6% to go up 20 or 30%. All right, so what I realized was that every single stock that makes a 30, 40, 50% move shares the same common sort of characteristics from a technical perspective. The first is a price. They’re almost always below $10. It’s obviously easier for a $5 stock to go up 30% then for a $50 stock to go up 30%. So price is the first one. The second is float. So what we know is when a company does an initial public offering, an IPO, they sell shares onto the open market. So if they sell 10 million shares on the open market, from that day forward, you’ve got a 10 million share level of supply, and so we’re always trading out of that same pool of shares and that supply is called the float. So that’s our supply side.

Now, if you have a stock with a supply level, I’d say of at least 15 million shares or under, that’s a very low level of supply. Just in comparison, Bank of America has a 10 billion share float. So if you only have 15 million shares outstanding, you’ve got a very small level of supply. That’s one side of the equation. The other side is demand. So demand usually comes in the form of some type of catalyst, some type of news. So in the last few weeks we’ve seen a lot of stocks moving up on a sympathy to Canada legalizing cannabis. So that’s a big catalyst right now in the market. But we’ll see different catalysts at all different times of the year. I mean, it can be a biotech stocks get really hot with some breakthroughs, clinical trials, things like that.

So number one, stock has got to be under $10. Number two, the float has to be ideally under like 20 million shares. I mean, you can have one that’s 21 million or 25 million, it might be okay, but a lower float. Then the third is you want to see some type of catalyst that is going to be what ignites that stock to move higher. Number four, you need to actually see if the stock is already moving higher, which means it needs to be up at a minimum 5% today. Being up 5% five percent is outside the standard deviation. So here we have this morning, at about 9:25, this is our list of all the stocks in the entire US Stock Market that were up more than 5%. You can see it’s not a very big list. I mean there’s a decent number on here. I’m not sure how many, maybe 30 or maybe 40 or 50.

I usually just look at the top 10. Those are the ones that most traders are going to be looking at. There are hundreds of thousands, if not millions traders every single day doing the same thing that I’m doing, looking for these one or two opportunities to make a little bit of money. We’ve got about 5,000 here at Warrior Trading. So the leading gapper was MNGA. Now I pulled up this stock, it’s up 132%, but I looked at it and I saw that it was below a dollar. It was at about fifty cents. I generally don’t like to trade actual penny stocks. So this one for me right away was off my list. There’s a number of reasons for that, but just in short penny stocks for me are too risky. I don’t like to put my money in them so I don’t trade penny stocks. So this one right away is off the list. So we’re going to cross that one off.

The next one down is NVCN. All right. So NVCN, second one on the list gapping up 38%, right? So that’s pretty nice gap. Premarket high here was about $3 and then it was continuing a little bit more in the premarket session. My charts are light gray for premarket and then they turn black once the bell rings right here. So on this one, we were watching this because clearly this is a nice gap, 38% and so from a technical perspective, I was watching this for a move higher. We had a headline, positive 12-week follow up data from the first US patient implanted with, I don’t know, whatever that is that they made. It’s a biotech stock. So I don’t really look into the fundamentals. I don’t check the earnings of the company specifically. This, the fact that the stock is up 38% tells me that clearly someone who knows more about this already feels confident and has bought it.

So I’m basically now thinking that I’m watching it to the long side. All right, so on this one we’ve got a pre market high of 3.17 So the bell rings and I’m watching this for a move higher. I jumped in this one right around 3.12, 3.15 and 3.10. I kind of got funny fills there getting the last fill on the low side, but as it squeezes up, I’m selling my 9,000 shares at 3.16, 3.17, 3.18, 3.20 and it ends up hitting a high of 3.25 and then up here all the way to 3.35. One of the things that I always say is you don’t go broke when you take profits. Remember when I do FOMO Fridays with our trading psychologist, Ted, he was talking about how he watched me trade over my shoulder one day and was like, “Ross, why are you selling? It’s still going up,” and I said, “Hold on, Ted. Why don’t you leave this to me? We’ll talk about the therapy afterwards.”

So the reason that I was selling is because I always like to sell into strength, as the stock is moving higher. It’s always easier to get out when it’s moving up than to get out when everyone’s rushing for the exit. So that’s my approach. Sometimes I leave money on the table, but you guys have a choice. You’re either going to leave money on the table or you’re going to give back your profits. It’s one or the other. I mean, you just can’t have both. So I’d rather leave money on the table and walk away green. I apply that same strategy when I go to Las Vegas. So NBCN there, I’m going to put this back to a one-minute chart. I don’t use 15-second charts during the day, I was just showing someone earlier as an example.

So we’ve got our one-minute timeframe, our five-minute timeframe and our daily and this is all the same stock that we’re looking at. These are just different timeframes. Each candlestick right here, this is the candle stick. That’s one period of time. So if this is a one-minute chart, that represents one minute. This down here as a daily chart, represents one full day each candlestick. So the next one we’ll look at is VTVT. This is a stock that was very strong yesterday. I got into it at $1.3, ends up hitting a high of $2 and of course I’m thinking, “Man, I could have done better on it,” but I walked away with $5,000 on the day, so I was happy with that. Today it’s continuing higher. Now the interesting thing on this is that when we have second day follow through or continuation, it can bring out a lot of emotions from traders who missed the first part of the move.

That is the interesting part about trading is that it’s very technical, but the reason that we can’t automate what we’re doing to computers is because you need to be aware and have a presence of mind of the emotions in the market. Are traders right now experiencing FOMO? Are they experiencing fear? Are they beIng really conservative? Are they being really aggressive? Are they chasing stocks higher? As you can see on this one, on the move from $3 up to 6, they’re no doubt chasing stocks higher. So I got into this one right out of the gates, 2.99 for the break of 3. As you can see, it squeezes up to a high of 3.75 and of course I’m taking profits on the early side as it’s moving up. I didn’t capitalize on it as well as I could have, but another green trade. So that gave me on this stock another $569.

You should have seen me on some of the days where I was really killing it. This is not for those of you guys who have been trading and watching me for a long time. This is a decent day. This is not a killing it day. It’s kind of a bummer because this stock made a massive move, but I didn’t expect it and you never know what a stock is going to do. So the right thing for me was at a certain point to stay to say, “You know what, if I buy it up here as it’s going higher and higher, I’m really giving into emotion.” I’m not following rules, I’m trading with emotion, and that’s not how you create success for yourself. So as it squeezed up to 6.10, typically, I would be buying into that halt, not this time. Thank goodness I followed my instinct on it. So we have this thing in the market called circuit breaker halts and this happens on the entire market, entire indices as a whole. If they drop more than a certain amount, they’re halted for a period of time to allow investors to circulate what’s the news, what’s the reason this is happening, and just sort of catch their bearings.

Now, in lower priced stocks like VTVT, it usually happens at a 10%, 20% or 40% percent increments. So if a stock moves in one of those increments, it will get halted for a period of five minutes. Now, what typically happens when stocks get halted is they open higher. They usually open higher because it creates this imbalance. The stocks are squeezing up, squeezing up, they get halted and then they usually gap higher. But on this one it did the opposite. It opened lower, which is very unusual. It probably only happens about 10% of the time, but on this one, what I suspect happened is you have so many investors and traders kind of jumping in with Robin Hood and getting off the couch and then taking these trades that they may not be really seasoned and familiar with what happens when a stock is halted.

So all of a sudden they’re looking at it and they’re like, “Oh my gosh, the stock is halted. What’s happening, what’s happening?” and they’re all pressing the sell button. They’re like, “I’m feeling fear. I’m going to alleviate that fear by getting out.” They press the sell button. The market accepts it, but it doesn’t execute. All right. It’ll execute the moment the stock resumes. So at the moment of resumption, you have an imbalance to the sell side. Then boom, it opens 50 cents lower. It did end up filling that gap back up to 6 and then selling off. So it wouldn’t have been devastating if you did buy it into the halt, but no doubt, not something you really like to see.

So anyways, that was my trade there on VTVT. Follow the rules on it. At this point in the day, or at the point of finishing that trade, I was now thinking, “Okay, I’m looking for something that’s going to maybe have sympathy momentum.” So that’s what we have a lot. We have sympathy momentum. One stock is strong, next thing you know, stock two, three and four are also strong. Traders, they think, “Well, if this was strong, that’s going to be strong.” So they buy it and they want to make more money so they buy it with more size. That’s more volume. Again, this is where the emotions come into play. After years of trading, what I say is that you want to learn how to capitalize on FOMO without falling victim to it. So that’s a very difficult thing. You need to have such a need to have such strong presence of mine that you’re able to say, “I’m being more aggressive right now, not because I have FOMO, but because I see FOMO in the market and I think this is a good time to be more aggressive.”

So I was looking for the next stock to hit the scanner. These scans basically are searching the entire market at any given moment. They’re searching right now for a stock moving up that meets my four criteria for being in play. So this helps me in the middle of the day find something that maybe an opportunity. Again, this is where those computer skills do come into play. Of course, for students that are in our classes, you guys get the benefit of being able to just plug this in and start running it right away. But the process of developing these scanners did take a long time.

So we have a late morning trade on ORGS. ORGS starts hitting the scanner, boom, boom, boom, boom, boom and I pull it up and initially I’m like, “I don’t know about it, I’m not really sure, but I’m interested in maybe doing a scalp over the half dollar.” So it’s squeezing up, squeezing up to 8.15. It pulls back and it comes up, it tops 8.50 and I jump in for the break over the half dollar. So I’m in with, I got a partial fill of, let’s see, 2,600 shares. So not a very big position. I had another order I tried to take that didn’t get filled, so I canceled it. It then pops up to 74, it pulls back for a second and then it surges up to a high of $9.25. So I took my profit on that and made another $564 and that put me up 1,900 on the day. So another green day following the rules.

So really, for all of you guys that are hanging out today, those of you who are watching on Facebook, those of you who are watching on YouTube, I want to reiterate that the journey to getting here was not direct. It was not smooth. One of the things I did a lot at Dublin was sailing in Dublin Lake, which was a lot of fun. I don’t think we were ever the top in our league there for the teams we were competing against, but we had a great time. Of course with sailing you want to get here, you don’t go straight, you got to go left and then right and then left and right and you make your way there and that was my journey to trading and it took about two years before I really started to turn a consistent profit. For you guys, you have such an advantage. Those of you who want to take a few minutes to register for one of our workshops or webinars, I’d love for you to register. They’re are about an hour and a half, two hours long. Some of them go a little longer, three hours.

During those workshops I’m going to talk about the three secrets to success, how you, number one, manage risk. How you, number two, find stocks to trade, and then number three, how you know when to buy them and when to sell them. As I walk you guys through this sort of three core lessons, you’re going to realize that the path to success, it may not be overnight, but it’s one that now thousands and thousands of students at Warrior Trading have taken before you and it’s one that we’ve … Through all these students going through that path, we’ve refined it. We want to make your path of least resistance to be that of success. We’ve got our work cut out for us because nine out of 10 traders in this market will not find success. so they need every advantage possible. That means learning a strategy that is proven to be profitable and that’s of course the strategy that I trade every single day.

So, anyways, that’s about it for our midday recap. I’ll put a link below on Facebook and YouTube for you guys to register for one of our upcoming workshops. Would love to see you guys there. I’ll let you guys enjoy the rest of the day. Eric, I hope you learned something about trading.

I did. This is great. This is great.

Yeah? I want to see a picture of the computer lab and, yeah, I’m really glad to be able to do that.

We are too.

It does help a couple of students, whether he’s going into the graphic arts, building websites or doing something like this, I think it would be really awesome for them. So that’s it for me. I will see you guys all first thing tomorrow morning back here in the chat room and hopefully we’ll see a couple more stocks on the scanner. The market’s definitely picking up. We’re in a hot market, so time to put the pedal to the metal and be aggressive. All right, I’ll see you guys later. If you’re still watching, you must’ve 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.