35th Trading Day of 2018 and Up Over 3k!

What’s up everyone? All right. So here we are finishing my 35th trading day of 2018 up $3,234.38. Not bad at all. Today I took a total of eight trades and I had seven winners, which is awesome in terms of accuracy. My last trade was a loser and I said, “You know what, that’s it. I’m throwing in the towel. I’m done.” Traded for one hour. One hour and $3,000 profit. Not bad. Let’s break it all down in today’s Midday Market Recap.

What’s up everyone? All right. So we’re going to break down the trades from today. 35th day of 2018. Another green day. So finishing the morning up $3,234.28. I was going for a $4,000 day. RKDA was the last one I traded. I was up about $300 on it and then on my last trade, I lost I guess $422. So I’m down $120 on it. So it was worth a stab. I didn’t get in before the halt. I saw some of you guys did. You saw it as soon as it hit the MOMO scanner. You were willing to jump. $5.57, $5.50, $5.73, $5.80, $5.89, $6.11.

It’s then halted at $5.26. So remember guys, when stocks move more than 10% inside of a five minute period, they can be halted for five minutes by the exchanges. This was actually halted for 10 minutes and when it resumed, it squeezed all the way up to a high right here of $7.40. I got in after it resumed at $6.77. I went with small size. Let’s see. Let’s back this up. $6.78. Small size and sold at $7.25 and $7.00. So $300 winner. But for those of you that jumped in this down here at $6.00 or $6.12, boom, you just made a dollar per share, which is awesome. It’s right off the high day MOMO scanner.

So what we talked about yesterday with these trades is that think of it as jumping out. You’re going to the Grand Canyon and you’re jumping out halfway off the cliff, but you’re not standing there without a backstop. You’re not standing there without a rope. You’ve got a rope. If you fall, you’re only going to fall five or 10 feet. Then boom, the ropes going to catch you.

So here with trading, we set a mental stop. So that mental stop would be down 10 or 15 cents. So if it drops down, we’re out of the trade. We take the loss, but not really a big deal because when they work the way this one worked, you’re making a dollar per share. So with that accuracy or with that profit/loss ratio, you really only need to be right one out of every five or one out of every six to be break even. So you’re setting the bar really low to be profitable.

So anyways, it’s curling down or rolling over a little bit here. May not hold up for a second move today. But yesterday, ZZAN was really strong. It did a very similar thing in the middle of the afternoon, it just sort of all of a sudden took off. As you can see right here. Scroll back. From $5.40 all the way up to $11.00. That’s over 100% in one day, which is crazy. So that was when we see a stock like RKDA hit the scanners, we never know what the potential is. Could this thing go from $6.00 to $12.00? Maybe it could. ZZAN did yesterday, right?

So anyways, I didn’t end up trading it really well myself. I was a little bit conservative on my first trade. Part of that was because today’s only my second day back after being out all last week with my ski injury. So I’m trying to get myself back in the saddle, but get my legs underneath me before I start getting really crazy aggressive. It’s also because I am still red on the month of February. Even though I made $3,234 today, I’m still down around $7,000.

Let’s see. What’s it going to be? Yeah, down around $7,200 on the month right now. So tomorrow’s the last day. I don’t want to say that I’m going to try to get myself out of the hole tomorrow. If we see a home run, if we see a great opportunity, I’ll step up to the plate. But I don’t think it’s going to happen. I think I am going to close the month red and it’s not that big of a deal. The good news is I made $1,000 yesterday. $3,200 today. That’s $4,200 in two days. Let’s keep the momentum going. This is going to probably be a good week for me. Maybe a $5,000, $10,000 week.

So that’s kind of what I have to think about is the big picture, and I’ll turn off my video for you guys. And not try to get so tunnel vision on finishing the month break even or green. Because at the end of the day, this is just one month. I had two months in 2017 where I closed red. I closed red in April and I closed red in September. I still made almost $400,000. So it’s not the end of the world if I close February in the red. The most important thing is I stay focused on going for good quality trades.

So anyways, today, eight trades total. Seven winners. My average winner was 18 cents per share and my one loser was a 22 cent loss. So right around one to one profit/loss ratio with accuracy of 87.5%, which is good.

So very first trade of the day was ZZAN. Matt asked me to break down this trade a little bit more. So let’s look at this one in detail. All right. I see you guys watching on Facebook, feel free to leave comments, I’ll come back and answer them later. Also, if you guys want to check out the YouTube channel, we can go over to YouTube. You can see the intro videos and stuff like that. You can also see the video I made on my ski crash from last week.

All right. So very first trade was on ZZAN. So I said this one was worth watching because of the big move it had yesterday. However, pre-market it had pulled back a little bit. It dropped down after hours yesterday and pre-market it was starting to curl back up. All right. So it’s starting to show some signs of strength, especially in this one green candle. That’s what I really liked seeing that one green candle. So I thought as soon as the bell rings … I mean, guys, what pattern is this right here? I’ll draw it out. This is a flag pattern. Right? This is a simple flag pattern. It’s a pre-market flag. So for me, the setup here was buying a break of the pre-market flag. That’s what it was. So as soon as the bell rang and it started to squeeze up, I’m in. I try to buy 5,000 shares at the half dollar. I tried to buy at the apex point right here, which is basically as the candle breaks the top of that flag, the top of that descending resistance line. That’s where I wanted to be a buyer. In fact, I only filled 1,800 shares of my 5,000 share order.

It squeezed up to all the way to $9.25, which with 5,000 shares would have been a $3,200 winner on one trade. But with 1,800 shares, it was about $1,000, $1,200 scaling out. So I sold at 94, $9.10. I added at $9.05. That was inside of all of this action here. Inside of this I added at $9.05. Then ended up selling at $9.19. $9.00. A little more at $9.19. It was kind of whipping around. So kind of exits all over the place. Sold a little on the way back down at $8.63. That was on this drop. At that point, I was like, “Hmm. I’m not sure if I’m going to keep trading this. I’m not happy that it dropped in this way, but maybe it’s … I don’t know. Worth watching.” So it consolidates sideways and then here it starts to curl up I thought, “All right. I’m going to jump back in.” This is where I got a little more aggressive. In with 7,500 shares at $9.00. Anticipating a retest of high of day, and my back of the mind target was that this could go all the way back up to yesterday’s high of $11.00.

So I’m in there and boom, we get the pop up to $9.25. That squeezed up to $10.00. Then from $10.00 we tapped out right around $10.20. So selling through that move also adding for small scalps. I added at $9.21, $9.25. Adding more at $9.46 and adding again at $9.70 and adding again at $9.88. Yeah, that was the last one.

So on this, what I always do is I add and sell. I add and sell. I’m not good at just taking a position and walking away. For whatever reason. I’m just not good at that. So I add. When I’m up a little bit, I sell. Then I add back. Then I sell and add back. So I end up churning some shares. You can see I traded a total of 45,000 shares today. I mean, from 50,000. I mean, I traded some size. But not a crazy, crazy day. I’ve certainly been more aggressive in the past.

So all of that ended up $3,356 profit. That was by 9:40. Well, 9:45. I mean, that was basically 10, 12 minutes into the day and I’m already up $3,000. In this last trade on RKDA, which I already walked you guys through. It was just a little scalp. I didn’t execute it super well. But I didn’t take a lot of risk either. Only gave back $100 on that.

Now, I would like to show you guys MNK. This is a swing trade that Tyler took off the watch list. So as you guys know, Tyler is a graduate of the Warrior Pro Trading Courses. One of the thing is really wanted for you guys is to have more swing trade content. We have right now Mike and Jeff who put out swing trades, but typically the swing trades that they take are options trades. It makes sense because you can use more leverage and you can make a lot more money of options. But the reality is for a beginner trader, someone who’s in the Warrior starter course, someone who’s just getting into trading, those options trades are a little confusing. So I wanted to have more stock specific swing trades for beginner traders and Tyler being a graduate of the class I wanted him to start helping me put out this content.

For me, it’s just so difficult to take swing trades while I’m focused on day trades. It’s like trying to be a basketball player and a hockey player at the same time. They’re both during the same season and you can really only focus on one. So for me, I can’t really day trade and swing trade at the same time very well. So I’ve had Tyler come on and start helping me build out the daily watch list and take the swing trades. These are all based on what we teach in the classes.

So MNK was a swing trade that he alerted today. The entry was at $20.50. So it was for a break on basically this bull flag. So this stock started to show strength pre-market. It pulled back and he got in right here with the first target of $21.50, which is right here. So he hit the first profit target, target of a dollar per share within half an hour. So right now it’s consolidating sideways. My guess is he’ll hold the remainder of the position until he either hits his stop or it goes sideways and then curls back up and hits the second profit target.

But any case, I just wanted you guys to see that because these are great trades for beginner students, students that want to participate in the market but are either still working full-time. They don’t have the setup that I have. They don’t have the skill to trade these aggressive type of trades that I’m doing. There’s no doubt about it that ZZAN and RKDA, these are aggressive trades. Making $3,000 in a day, you got to step up to the plate with a little bit of a willingness to take some risk. That’s not where everyone is at right now. So the swing trades are really something I want to encourage you guys, especially as beginner traders to focus on. Master swing trading and then get into day trading.

I wish I had done that because I tried learning how to drive on the Ferrari. It’s like I tried day trading. It’s fast paced. When it works, it’s awesome. When it doesn’t work, it’s really bad and really frustrating. I wish I’d been able to start on that kind of just easier strategy where your entries are a little more forgiving and you don’t have to stress as much about using hot keys. Again, some of you guys are going to say, “Well, I won’t day trade anyways.” You might want to day trade the swing trades. You could buy this and hold it for half an hour and sell it up here, and that’s okay too. But when we’re looking at some of the day trades that I’m taking, this is there’s not a lot of margin for error on these. You got to be quick. When you are quick and when you learn how to capitalize on it, you can do pretty well. But even for me as a pretty quick trader, I still lost $120. Some of you guys were faster than me and made money on it. But it’s the same with ZZAN. As quick as I made $3,000, I could’ve lost $3,000. If I was a little slower, if I wasn’t as quick with my hot keys, and wasn’t as confident.

So I want you guys just to have that moment where you check in with your confidence level, your skill level, and you trade as strategy that’s a good fit for where you are right now. Thinking about this as a marathon. This is about the big picture. This is about learning a skill that can help you achieve freedom in your life to do whatever you want. To trade for an hour a day and then go do the things you really love. So I don’t want you guys to come in, get aggressive, blow up your accounts in a month and then be out of the game. That’s what happens to 90% of traders out there. It’s not what happens to the majority of our students because we really try to instill this stuff I’m talking about right now very early on in the classes. But for those of you watching on YouTube and Facebook, I just want you to keep it in mind.

All right. So anyways, that’s about it for me. I’m going to let you guys go and we’ll be back at it first thing tomorrow morning. 9:00, 9:15. Pre-market analysis on YouTube and in the chatroom. Then we’ll trade when the bell rings at 9:30. Hopefully we’ll get a couple more good trades and we can finish up the month of February at least on a green note. Even if it’s not with a $7,000 green day. If it’s at least a green day, I’ll be happy with that.

So that’s it for me and I’ll see you guys first thing tomorrow morning. All right. See you guys there.

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