Warrior Trading Blog

Weekly Recap +$5k Trading 2hrs/day

Check out my Weekly Recap

I finished this week with just about $5.5k in profits.  These are the types of week I need to have a $20-30k month, unfortunately October has been fairly choppy for me.  I’ve had some big green days, some big red days, and 2 weeks that were breakeven or a small loss.  One of the things I’ve been doing this month is stepping up to the plate with what I consider to be home run setups.  I take big size, sometimes as much as 15k shares.  When these trades don’t work out, I hit my stop, plus I get another 5-10 cents in slippage because of my share size.  This has meant my losses have been bigger.  Slippage to the downside is one of the reasons having a higher accuracy rating is really important.  Slippage makes losses sometimes 30-40% bigger than you would have originally planned.  If you can minimize losses to just 30% of your trades that is ideal.  This week I traded at 58% success and I had a red streak of 4 consecutive red trades where I gave back about $3k in profits.

Market Cycles (Hot Streaks and Cold Streaks)

One of the things I have discussed extensively is learning to ride through the hot streaks and cold streaks of the market.  Being self employed as a Day Trader means some weeks you get paid, and other weeks you don’t.  This isn’t the same as punching the clock and getting a steady paycheck each week.  However, most traders love the fact that success is directly related to your ability to master the skills and strategies to day trade.  Even though I’m up over $170k on the year, having months like October where it feels like nothing is working can be frustrating.  This month I’ve been taking big trades, but I’m just not seeing the resolution.  A trade that might have typically been moving 30-40 cents, is only moving 15-20 cents.  The profit margins are smaller, my accuracy has declined, and the result is less profits. Having been in the market for many years I’ve seen these cold streaks before.  In the past having a stock like $GRVY make a 100% move can get the momentum going again.  We’ll see how that impacts trading next week.  I’m hoping we can finish the month with a nice day on Monday then go into November strong!