What’s up everyone, all right, so here we are finishing the morning up $811. This is actually … Gosh, this is the smallest green day of the month. $811 is still a great day. I haven’t lost sight of the fact that five, six years ago, $800 would’ve been like an amazing day.

 

$750, I would have been so excited, because at that time I was probably only averaging $150, $250 a day on really decent good quality days. To be in a place where now I’m averaging $5000 to $8000 in a good market, on a good day, making only $800 doesn’t feel a lot of money.

That’s the time where it’s important not to lose sight, not to become detached from the reality that this is a lot of money. Feel good about that, and it’s another green day. It’s just momentum today was a little bit slower. If anything, I over traded today, I took I don’t how many trades, it must’ve been like 15 trades or something. It was just getting in, getting out, getting in, getting out, and I kept taking stabs at things. They’d only pop up maybe $0.05 or $0.10, so lots of small winners, one bigger loser, and yeah, just wasn’t feeling it.

I did something that is rare, I said you know what? I’m going to call it a day, instead of pushing my luck, I’m just going to call it a day. Up $800 is great, I’d rather be up $800, than down $1500, and it could happen just like that on a day like today. When the momentum is not too high, more false breakout, so I’m taking the money, $800, and I’m done for the day. I’ll be back at it tomorrow, hopefully we’ll have better day, and we can finish up this week strong.

I’ll break down today’s trades in today’s midday market recap, and as usual any questions, any comments leave them below. If you enjoyed the video, give it a thumbs. All right, enjoy, and I’ll see you guys first thing tomorrow morning. All right everyone, so we’re going to break down the trades from today. Finishing the morning up only $811, a little bit of a slower day for me. This is the first day this month that I’ll be closing with anything less than either $1000 of profit, or $1000 of loss.

Every day this month so far, I’ve been either down more than a $1000, or up more than a $1000. I haven’t had a day that’s just a three figure day. A little bit unusual here, but I think the thing is, typically, on a day like today when we don’t have a lot of momentum, this wouldn’t be a green day, this would be a red day, because I would’ve kept pushing it. I would have inevitably had another loss like this one on SMIT, and finished the day down $1500, or something like that.

Today’s actually a good day in the sense that I’m maintaining the composure, and just saying, “You know what? Market’s not really, really hot today, I’m just gonna step out of it before I do something stupid, before I risk an unnecessary loss.” That’s something that I wish I had done last Thursday when I had a red day, it was totally unnecessary. Today, really followed the rules a little bit better there, so that’s a good thing. Now, you can see the stocks that I traded this morning.

Today was interesting, because the leading gapper, the one that I traded right out of the gates, actually this was SMIT, S-M-I-T. Again, for us every morning starts the same way, it’s breaking down the scanners. It’s finding the one to two stocks in the market with the potential to move 20% to 30%. You can see SMIT is up, S-M-I-T 58% right now. If I run this for historical time at nine in the morning, you’ll see that S-M-I-T … Let’s see, I circle day, there it goes. Actually, let’s run it for 9:15, there we go. SMIT, you can see was our leading gapper up 45% at the time.

It was at $3.43. This had everything we look for. It was the right price, it was a lower float, it had news, it was up 45%, it had decent volume. I was watching it for a break of $3.70, and here’s the thing that’s a bummer on this one, it broke that level pre market. Right before the bell rings, it pops up to $3.80. It had already started to break that level pre market, and when the bell rings, I wasn’t totally sure how I wanted to trade it.

I ended up getting in at $3.90 and $3.95, but then it hit a little resistance around $4.00. I took some profit at $4.05, $4.07, and with 7500 shares it was like a $400 winner. It wasn’t a home run like some of the other gap and go stocks that we’ve traded in the last couple of weeks. It was a small win, $400. It drops down, it comes back up, I get back in here for the second break over $4.00. Looking for a move to a high of $4.10, $4.12. On that one, I don’t know, it was basically a breakeven trade.

I added back at $4.05 and $4.03 and $4.08, and then sold at $4.08 and $3.98. It wasn’t a very good trade. I think I maybe was up $500, and then lost $100, or something like that. Then I got back in for one more stab right here at $4.00, and you can see how it did this big rejection. It popped up, and then it dropped all the way down this red candle, and right there I lost like 1600 bucks. I went from being up $400 on it, to down $1200.

I already had a small win on another stock, so at that point I was down about $500 on the day. I was like, “Okay, you know what? I gotta be careful, right now, this is my first red day in a week. I was red last Thursday, and so right now I am red, I gotta be careful, I don’t want to make this day worse. I want to try to get out of the hole, but be smart about it.”

The next stock was MTSL MTSL again, we traded it yesterday, traded again today. A nice move here from $3.00 to $3.50, a pullback, right here a flag, and then the move up to a high of $3.70. Made some money on that one, $1100, again not a home run, it just felt like I don’t know, it just didn’t feel really clean. It kept popping up and dropping, you can see this drop right down here. Another drop … Let’s see, where is it? Right in this area here, so it wasn’t the easiest one.

Only made $1200 on it, so that got me out of the red and into the green, which was good. Small win on MYO, off the scanners, jumped into for the break of $3.00. It hit a high of $3.07, and then it came back down. Only $600 on that. PED, this one hits the scans from $2.70 up to $3.20. Did a little bit of a pullback here, but again on this one, really didn’t do that well on it, only $400. Small win in TRT, another one I jumped in with 200 shares, and got stopped out with a $0.50 loss.

Just a blah day, it wasn’t super exciting, making $8000 yesterday was a great day. Making $4000 the day before, and $7500 the day before that, those were great days. Today’s a day where I didn’t do anything differently, the market just wasn’t hot. This is the thing that can be difficult for traders understand, because they think, “Geez, I did the same thing today that I did yesterday. Yesterday I made $8000, today I made only $800, what gives, right? I don’t understand.”

Even if you do the same thing every single day, it doesn’t produce the same results, because the market is different. There are days where the market is going to be stronger, and you’re going to see stocks go from $3.00, to $4.00, to $5.00, to $6.00, and then there’s going to be other days where the market is just sluggish, it’s a little slower. Stocks at $3.00, will only go to $3.40, $3.50, and then come back to $3.00. That’s one of the things that is a little bit hard to understand early on, that you could be doing the same thing every single day, but your profits vary.

Some days are going to be big winners, and some days are going to be big losers. You’re not really doing anything different, it’s just the difference is what’s happening with the overall market. I guess another thing to mention there, is that sometimes you can learn bad habits, because you can break the rules, but make money, because the market just happens to be really strong. If you do that on a day when the market’s weak, breaking that rule is going to get you into trouble.

Yeah, so let’s see, so SMIT, so a bunch of trades here. You can see I traded a lot today, 103 total trades, 200 and something thousand shares, 220,000 shares of volume. I traded a lot, and I don’t have a lot of profit to show for it. That’s the thing that to me, I was like, “All right, at this point I’m just churning shares. I’m working for the broker more than myself. I’ve just got to throw in the towel and be done.”

When you trade this much and you’re not really making progress, it’s a good cue to just be done. I kept my max share size today at 10,000 shares, warnings here 10,001. I don’t think I exceeded that. If I press an order that’s more than 10,000 shares, it’s gonna pop up this warning sign for me, and I can override it, or choose not to. Let’s see, so trades on SMIT, MTSL this one, so I was in MTSL at $3.44, $3.45. I tried to scalp it up to a high of into the $3.50s. Again, that was only a small winner, it was like $600 there, 10,000 shares, wasn’t that exciting.

Trying to sell in the ask, not getting filled, having to cancel the orders. Piecing out in really small sizes as you can see here unnecessarily so. I think on this one I was selling on the ask, trying to reduce the loss, because it had dropped down, and was popping back up. Got back in at $3.45, sold at $3.51, but again, these are really small wins. They barely justify the risk. SMIT back in at $3.95, 5000 shares, stopped out of $3.62, so that was that big loss there, the one big one of the day.

MTSL, got back in here 10,000 shares at $3.50. Again, there are just so many trades, it’s hard to look at each of them individually. This is as it was curling back up right here, I got back in at $3.50. It popped up to a high of $3.69, was waiting for one minute micro pullback, and it failed. That’s just the thing that’s a little bit tough. One of our students sent me a message today, Joseph he was asking about how to deal with the fear of losing.

One of the things … We’ve had a number traders over the years have this issue. The one trader that I remember the most distinctively, he was a pharmacist for his entire adult life. He had his own pharmacy, and he sold it, and now he was retired, and he was doing a little trading to make a little bit of money. For him in his whole line of work as a pharmacist, he just had this belief ingrained in him that he could never make a mistake.

He couldn’t make a mistake, you make a mistake once as a pharmacist, and something really bad could happen, right? You give someone blood pressure medicine when you mean to give them I don’t know something else, a vitamin, and it’s bad news. He just had this really strong belief that he could not make mistakes. That caused him as a trader to do a couple of things. Number one, it caused him to hesitate, because he wanted to be 100% sure it was gonna work.

The reality is in the market, there’s never 100% certainty. He had the first issue of hesitating, and then the second issue of when he took a trade, and it was going down, he didn’t want to sell it for a loss, because once you press the button and sell it and take the loss, you’ve now made it official. As long as you’re holding the trade, there’s always the possibility that it could go back up, right? He had these two problems, one hesitating, and two, holding losers too long.

What I encouraged him to do, was to focus on going through the emotional conditioning of getting good at losing. Now, I’m a guy that’s gotten good at being a loser, because I’m a loser every single day, in the sense that I’m always going to have losses. I’m never not going to have a loss. Maybe we can look at my trader view stats, maybe there will be times here or there where I get lucky, and I don’t have any really big losses.

This is my win rate for the last 30 days, so 87% is the best day. That means every day in the last 30 days I’ve had at least one loser. Now, if I go back further than that, maybe we’ll see a couple days in here. Okay, so out of the last … Well now we’re going back a little further, but out of the last now 30 days, back into June, I have three days where I had 100% success. The remaining 27, were days where I did have at least one loser.

Being a successful trader does not mean not losing. That’s not realistic, it’s not a realistic standard to hold yourself to. It’s not, so you have to get good at losing, and that means being quick to take the loss. One of the things that I encourage you guys to do, is do some emotional conditioning to experience loss, and to be okay with it. Here’s two ways that I’ve encouraged students to do this in the simulator.

You’re trading in the simulator, and number one when you’re trading, you’ve got to trade with small size, all right? You trade with small size, because when you trade with big size, inevitably the emotions flareup. You get more of the emotions, you get more frustrated when things don’t work. When the dollar signs are bigger, we always get more emotional, and this is the same for me. First step is to reduce your share size to like 100 shares.

Trade with 100 shares, because when you lose money with 100 shares, like look today, I lost $0.50 per share on TRT, $0.50 per share, but it was only 200 shares, so it was only $100. I mean it’s a big loss, but it’s really that amount of money doesn’t mean anything to me at this point. It’s not a big deal, so you want trade with an amount of money that is not a big deal for you, where you’re like look, I could care less, I’m down $14 today, it doesn’t matter.

You do that for a month, and during that period of time you’re going to just focus on trading the right way, because the amount you make or lose is no longer significant, it’s not going to change your life. It’s not going to mean you can’t pay your mortgage, it’s not going to mean you buy a new car, it means nothing. Of course in a simulator it really means nothing, because it’s not real money. Then what I always do, is I would say do that for a month in the simulator, and do that for a month with real money, and prove to yourself that you can start focusing just on trading the trade the right way, and not worry about really how much you make or lose.

That does mean that during that month, you might lose money on commissions, okay? Say look, I’m going to give myself $500 this month, and I can lose the $500 in commissions. I don’t care about how much I make after commissions, I’m focusing on before commissions. Commissions, when you’re trading with 100 shares, are a huge piece of the pie. When you’re trading with 10,000, they become minuscule. Don’t factor in commissions, just don’t worry about that for right now.

Focus on conditioning yourself to take that loss and take it quickly. The first thing is trading small size, and then the second thing is to use live stop orders. Even though I personally don’t like to use them, if you used a live stop order let’s say on small caps that was $0.10 or $0.15, if you’re getting in at the right point, you’re getting in at the apex point, these stocks aren’t going to look back. Now if you get in at the wrong point, they might pop up and drop $0.15 and then go.

That says you didn’t get in at the right point, but if you get in at the right point, they just take off and they go. Like SMIT for instance, this one this morning, if you had set a $0.10 stop on it, and you bought it at $3.85, something like this, this popped right up to a high of $4.09 without looking back. Right there is $0.15 of profit. Of course you could cancel your stop order, and sell it, and take a profit, and you’re done, right? That would be fine.

Some of these ones that we’ve looked at, MTSL, or MDGS yesterday, some of these ones, they just take off and they just go. That $0.10 on a home run, on an A quality trade, you’re not going to get stopped out. On trades that pop up and drop down and then go, you’ll get stopped out, and the reality is, sometimes that’s for the best. Look at this, let’s say on this one you got it in at $3.90, and you had your $0.10 stop. It stops you out at $3.80. Well I stopped out way down here at $3.60.

Stopping out at $3.80 with a $0.10 loss is not a big deal. By making it automated, where you’re using the stop order, it conditions you just to be like, “Well, the computer stopped me out, it wasn’t even me.” It takes the hard work of pressing the sell button, and you delegate that responsibility down to the computer. Let the computer handle the hard work of realizing the loss. You’re in the simulator, you can go to the hot keys, you go add hot key, scroll down, stop …

Let’s see, so do a stop order to sell long position with average price. This would stop out your order at your current average price. For instance, I’ll just say … Oops, I’ll set this to Shift S for stop … Oops, Shift S to stop order, okay, so that’s going to be my stop order. Now if I go to a stock like BIOC, I’m holding 500 shares in the simulator or whatever. I am holding the 500 shares, my average is $6.01, but the current price of this stock is obviously higher than that.

I might have to log out, log back in, my quotes aren’t loading. Let’s see BIOC, what’s the price? $6.46, all right, so I press Shift S, and now I’m going to have a stop order on this stock right here. Now I’ve got a stop sell order at whatever it is, $6.01, my average cost, all right? That’s a stop at break even, I’m going to cancel that order. I you want to do a stop $0.10 below the bid or something like that, you go to add hot key, go to stop order, and then where is it?

Stop order, I’m just looking for this. Stop order, sell long position with average price, reduce by okay. I think this would be selling $0.10 below your cost basis, and then the other one would be to sell below the bid. Where is that? Stop order to sell long position on the bid, and then we reduce by $0.10. This would be the one … One second, I’ve got to do this. Okay, so I’m just going to do Shift D for right now, okay, Shift D, and I’m going to save that.

All right, so now I’ve got a hot key on shift D to sell … Let’s go to another one I’m up on, [JASO 00:21:30], it’s a solar stock. On this one if I press Shift D, I’m going to have a stop order $0.10 below the current price. I don’t know why my quotes aren’t loading here. I’m going to have to log out and log back in, but I’ll just press Shift D. Now I’ve got a stop order that’s down $0.10. The advantage here, and it’s for the full size.

The advantage here is that you’re delegating that responsibility to the trading platform, so you just get stopped out. It’s like, “Oh, I got stopped out, it is what it is.” Now the reason I don’t do that with the way I trade, is because number one, when you put out stop orders, market makers can see them. If I put out a stop order on a 15,000 share position, and a market order can see that, they may try to do stop hunting, which is where they try to flush the stock down to literally pick up my shares, and then the stock rips back up.

That starts to happen when you trade with big size, and when lots of people have stop orders out. For that reason I avoid using them, but for small size, and for a beginner, in terms of going through this emotional conditioning process, it’s a good technique just to get yourself comfortable with experiencing loss. Ultimately, I lose every single day, and that’s okay. That’s part of this career, it’s not part of the career as a pharmacist to make a mistake and lose money every day, but it is part of the career of a trade.

You just have to get good at it, so practice makes perfect, all right. Anyways, that’s about it for me here today. $811, it’s nothing to write home about, but that’s a green day, I’ll take it, and then I’ll be back at it first thing tomorrow morning. We’ll try to finish up this week strong with hopefully a couple of more winners. Tomorrow will be the 132nd trading day of the year, and I’m sitting right now with about almost $20,000 of profit on the week, which is awesome.

If I can get another nice day on Friday, well, I’d be happy with that, all right? That’s the game plan, for those of you guys watching on Facebook, YouTube, feel free to leave some questions, leave comments below. I’ll come back and answer them later. You enjoy the videos? Give us a thumbs up, and I’ll see you guys all first thing tomorrow morning, all right, see you all in the 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.