Hey everyone, Ross Cameron here. I wanted to take a moment to reflect on the day trades from last week, starting off in the green, which is always great news after finishing the prior week with a couple of red day. Last week was a bit slow with two red days and only two green days, but it’s all part of the journey. Every day is an opportunity to learn and grow in the trading world.
Navigating Market Volatility
One of the interesting patterns we’ve observed recently is the jackknife whipsaw, where stocks break out, then quickly reverse course. This type of market movement can be akin to traps for both bulls and bears. It’s a challenging environment to navigate, with bursts of liquidity and unpredictable volume, making it difficult to find consistent trading opportunities.
Identifying Trading Opportunities
The day started slow with gaps that lacked substantial movement, but later on, there were a couple of trades that caught my attention. The first was on a stock called $BETS, which showed momentum on the scanners. I managed to secure a profit of $757 from that trade. The second trade was on $ELAB, and although this trade was initially debated for my small account, I eventually decided to take the trade in my larger account and secured some profit from it as well.
Understanding Market Dynamics
The market dynamics at play today were intriguing, especially with the observation of heavy trading activity and liquidity generation on certain stocks. It’s fascinating to witness how market participants are actively engaging with these opportunities.
Trading with a Purpose
While some might wonder why I don’t short stocks, it’s important to consider the various factors and risks involved in different trading strategies. Short selling comes with its own set of challenges, from unlimited loss potential to the availability and cost of borrowing shares. These factors, combined with my personal trading style, led to the decision not to short stocks in the current market environment.
Even though I chose not to partake in short selling, it’s essential to recognize that each trader has their own biases and approaches to the market. For me, maintaining a long bias has been a successful strategy, and as I reflect on the day’s activities, I’m content with the results. While there were opportunities in shorting, I’m staying true to my trading approach and focusing on future opportunities.
In the end, I’m grateful for the trading day and the $3,400 in tax-free gains, all of which will contribute to my retirement account. It’s been an eventful day, filled with learning opportunities and valuable insights.
Final Thoughts
I’m looking forward to upcoming trading sessions and sharing more insights in the next episode of the Small Account Challenge series. For those following along, thank you for your support, and I’ll be back with more trading experiences and valuable lessons.
Remember, trading comes with its own set of risks, and success is never guaranteed. Take it slow, stay informed, and make deliberate choices in your trading journey. The market will be here for you when you’re ready!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
You can learn more about Ross Cameron on his websites, RossCameron.com and Tirekickers.com
Check out more blogs from Ross on Entrepreneur.
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