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Warrior Trading Blog

$7K on My 7th Green Day! | Ross’ Trade Recap

Ross_5-20

What’s up, everyone? All right, so here we are at Monday morning, finishing the day up, $7,000, pedal to the metal, being aggressive, momentum continues to be really hot. The month of May has been a terrific month. We’ve still got really two weeks left, which is awesome. So here’s the deal. Sometimes traders ask me, Ross, if you know you’re right 70% of the time, why don’t you just always trade with 12,000 shares, let’s say. And the reason is because during the cold streak, my accuracy is usually going to dip down a little bit. We don’t see big follow through, we don’t see big winners and slippage of course is always a factor. So what I want to do during the cold streak is sort of throttle back, reduce my share size to minimize my risk of loss. Now during the hot streak, my accuracy is going to go up to 75, 80% maybe even higher.

And that’s the time where we’re seeing bigger breakouts, more circuit breaker halts, more volatility. And that’s what I want to increase my share size to maximize on the hot streak. Maximizing on hot streaks and minimizing on cold streaks takes a fair amount of experience to be able to know when to be aggressive and when to slow down. So keep watching the midday recaps. And as always, if you have questions, put them below. I’ll come back and answer them later on. And tomorrow morning I’ll be live streaming as usual, 9:15 pre market analysis, so make sure you’re subscribed to the channel so you get those alerts when I go live. All right everyone. So you guys first thing tomorrow morning.

All right everyone. So we’re going to do our midday market recap here for this morning, Monday morning. And the momentum this month is continuing to be really strong. So make it official here, I’ve got to catch up for missing entering my Thursday profits and Friday profits. And now here are the Monday profits on Victoria Day in Canada. All right, my calendar is informing me of that. So $7,118.73 of profit, solid green day, five grand on Friday, 2000 on Thursday. So that’s 14,000 in the last three trading days. And at this point, it’s just putting me further and further above my $40,000 monthly goal, which I hit in the first week of May. So that’s definitely really nice to just be covering some ground here and making some progress. I did have a red day last week, dropped down $6,500 into the red, but I bounced back into the green really quickly.

So that’s the good news there. You’ll notice that my trading account says all trading allowed. P and L is greater than minus 1990 so if I’m down more than $2,000 my account gets locked up and I can’t keep trading. So this tells you that at some point today I went into the red and I went into the red because of the spread on CANF. So CANF is the only stock I traded today. It was straight off the watch list. This is one of those days where everything kind of came together pretty nicely and was able to hit that daily goal, trading CANF up 40% pre market.

So here’s the deal. Many of you guys already know I’m hosting a workshop today at 1:00 PM Eastern and this is exactly the type of stuff I’m going to talk about.

CANF. How did I find it? Well, I found it on my scanners. How did I know that it had potential here at 9:25 AM? You know here it is at 10:30 or almost 11, I’m up $7,000. How did I know, an hour and a half ago that this stock had the potential to turn into this type of profit? Well, I’m going to walk you through my five criteria for identifying a strong stock to trade using the scanner.

And then I’m going to talk about my two favorite ways to buy strong stocks on the chart right here. This is going to be the second strategy that I talk about today, which was a break of pre market highs. I mean really like a perfect example. Pre market high here with 755, jumped in for the break of 755. There’s a quick move up to 846. Right there was about $5,000 of profit.

Got back in right here and I actually lost a little bit on the first one minute candle to make a new high. And then I got back into it right down here for the break over VWHAP and made back the little bit that I lost and got myself even further into the green. So trading is one of those things where it’s kind of stacking layers of knowledge, understanding how to manage risk, understanding how to find strong stocks to trade, understanding where to get in and where to get out and knowing how to use the platform to maximize on the opportunities, utilizing hot keys, being able to get in and get out quickly. And I was able to do all of that on CANF today, which was great. So another solid green day and I can feel really good about that.

So again, those of you guys who are in the chat room, I’ll just put the link here one last time for our 1:00 PM workshop. Those of you guys watching on Facebook, the link is in the description and those of you guys watching on YouTube, the midday recap this evening. Well unfortunately you probably missed the workshop because it was at 1:00 PM Eastern so you guys will have to stay tuned for the next workshop. Make sure you subscribe to the channel so the next time I host a workshop, you’ll be able to get the alert on it early. So anyways CANF, let’s back this up here. So this is what was happening pre market on it. It was taking off, it was up 40% by 9:25 and I was just hoping it would hold off before it just made this final squeeze.

I would’ve loved to have been able to buy it down here or even down here below six, even down here at six. But it just kind of kept squeezing up pre market. And unfortunately when that happens, it does sometimes kind of break the pre market, the gap and go set up because it’s so extended by the time the bell is ringing. And so that’s kind of an issue. And this one we know it was a more thinly traded stock. I had trouble getting in. I mean the bell rang and I tried to jump in right away and it was just hard for me to get full entries. I mean you can see right here, these are my orders. I’m trying to buy, trying to buy, trying to buy, these are all except for one partial fill and these ones were rejected completely, rejected, rejected, rejected, rejected.

Well I had to cancel it because it didn’t fill so no fill, no fill, no fill. 1200 shares, 3000 shares, 1500, 100 shares, 1,270 shares. I mean I was trying to buy and I was just not getting filled and that was pretty much the story of the stock today. It was like tons of tons of orders and having a hard time getting filled. It was just moving so quickly. So even with my offset to buy above the ask, even then I was still having a hard time.

But despite that, you know when you have a move from 755 up to 846, you know that’s a lot of potential and I was able to do well on that move. It then pulls back, it drops back down here to 752, sideways, sideways and as it curls back over eight, I got back in on this green candle, thinking that if we broke over eight and we broke this high of 820, we would retest the high of day of 846. that didn’t happen.

It hit 820 and then dropped back down to 765 and I stopped out and took a loss. It then pops back up again, drops down again, no trades on it, just sitting and waiting. And now at this point, I’m watching the five minute setup. I’m watching the first five minute candle to make a new high. So this is a perfect example for the workshop today because I traded my two favorite strategies on it. Break a pre market high and buying the first pullback. So those of you guys who are going to be in the workshop, just remember as we go through those strategies, how it applies to CANF here. I might even try to add this one to the workshop real quick since I’ve got about two hours before it starts. First five minute candle to make a new high was right here over 755 . Now as it started to curl up right here, I saw volume coming in and I was just like, this thing is taking off. It looks good so I’m going to be aggressive. So I jumped in. As it started to squeeze up, I added for the break over $8. We hit a high right here of 790 and then we dropped down, flash all the way down to 720 before, finally coming back up here to 814.

So it ended up not being as solid on the first five minute candle to make a new high as I hoped. I still made money on the trade. It was still a green trade. It just wasn’t as good as I wanted and this was sort of that ABCD set up, the down, up, down, up. But it didn’t end up breaking and holding. So at this point I was like, all right, I’m done with it. I’m going to step back. I’m not going to push my luck. I’m going to take the profit and bale.

The trade where I had the most risk was this trade right here. This is where I took my biggest position. I added where, well, I added, it’s like right up here. I had 12,000 shares. So I stepped up by adding, adding, adding into the breakout. And I was looking at this potentially as 12,000 shares. If it breaks over 820, I was going to add again to 15,000 and be holding 15,000 shares goal of high a day, 846 and maybe a move into a circuit breaker halt and a squeeze up to $9. That could have been a 15 to $20,000 winner had it really opened up. It failed. I recognized that quickly, switched gears, took my profit, added a couple thousand dollars bringing the day up to 7,000 which was good, and certainly, of course, better than a loss. But yeah, and this was really the only thing for me that ended up giving me opportunities.

OTLK, I know some of you guys were watching this. It did also give us that same breaker pre market high gap and go trade. The break of $3 resulted in squeeze up to 335. The daily chart gives you room up to 466 but I just left it alone. I don’t know. It was already 5 million shares of volume pre market. I felt like it was going to be a tug of war. I lost a thousand on it on Friday, so I just wasn’t super into it. And nothing else really hit the scanners after the bell rang, it ended up being just a little bit on the slow side. So you know what, that’s fine. NVAX hit but didn’t really do much. A BIOC rave, a couple of others. But I don’t know. Not a lot. So just figure I’m going to take it as another green day, feeling good, feeling charged up, ready for the workshop here at 1:00 PM and that’ll be today.

And then of course I’ll be back at it first thing tomorrow morning, live streaming around 9:15 as we look for what’s coming up next on the scans. And yeah, absolutely, I don’t want you guys just blindly following me. I want you to understand the strategy. CANF, it’s a gap and go strategy. It’s what I teach in the classes. If I wanted you just to follow me, I wouldn’t even bother teaching classes. I would just say follow me. I want you to be able to trade these all by yourself because you understand the setup and you know really this is holding up quite well. I mean I’m impressed that it’s still at this level it’s still up 47% on the day with 3 million shares of volume and short sale restriction. I would say 814 right here would probably be 815, the most kind of critical trigger.

Who breaks 815? Well we should see a break of 846 and this thing is from here at 846 and then maybe a squeeze up to $9. So you know, take a quick look at the daily chart. What are your support and resistance levels? Resistance is right up around nine, 915 and then above 915, it has room all the way to 1050 and we do that by looking to the left and up for these little windows.

So yeah, this one still has some potential. Keep it on watch. For those of you guys who are going to stick around. I guess I left an order at 850, just to, if I happen to be looking at it to take a trade, but I probably won’t. I don’t want to give back profits today. So if I do take another trade on it, it would be really small size of maybe go down to like 2000 shares and then if I double, I’d be at 4,000 and maybe I’d go up to six or 8,000 if I’ve already got profit, but I don’t want to jump in with 10,000 shares and then lose 30 cents. It’s just not worth it.

This is a solid green day, three times the daily goal and just making great progress on the month of May here. We’ve still got a full two weeks left, so we’re in really good shape here. So time to put the pedal to metal, be aggressive, capitalize on these opportunities, knowing that they’re going to have to tide us over during an inevitable slow patch, whether it’s a week from now, a month from now, or sometime in the middle of August, the market will likely slow down and we’ll have to just kind of sit on the profits that we got from the hot momentum earlier in the year.

So anyways, that’s the game plan. I’ll see most of you guys at 1:00 PM Eastern and everyone else will see you first thing tomorrow morning for our pre market analysis. All right, bye, everyone.

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