Trading is risky, and most day traders lose money. Ross's results are not typical. All information provided is for educational purposes and is not investment advice or buy/sell recommendations. Read our full disclaimer.

Warrior Trading Blog

Tackling Choppy Price Action in MLGO and GME

Hey everyone, Ross here with another recap! Tuesday morning saw some wild action in the stock market. We witnessed MLGO go up over 700%, an incredible move. This is even bigger compared to GameStop’s 80% rise yesterday. While GameStop’s price jump was significant in dollar terms because it started at $27-$28 a share and went up $20, MLGO’s percentage gain was much more spectacular.

The Surge of MLGO

MLGO’s surge this morning was something to behold. Starting the day at $1.69, it shot up to $15 at one point. The stock saw big green candles, showing strong upward momentum. However, it also went into periods of chop, where the price bounced around in a narrower range, making it tough for traders to catch the trends.

GameStop’s move was also impressive, but it had a different profile. It started at a higher price and moved up by about $20, which is more impactful in dollar terms. However, MLGO’s percentage gain of over 700% dwarfs GameStop’s 80% move. Obviously, MLGO was a more unique and exciting opportunity in day trading terms.

Analyzing MLGO’s Price Action

The move in MLGO was remarkable. It shot up rapidly, capturing a lot of interest. The percentage gain was a big draw for many traders looking to capitalize on the momentum.

The move wasn’t all smooth sailing, though. After the big candles, it entered periods of chop, where the price moved sideways more often than up. This chop made it challenging for traders to find good entry points. Missing the big upward moves and then day trading during the chop often meant losses instead of gains.

Desired Price Action

The kind of price action many traders love involves a sustained, stair-stepping pattern. This means the stock moves up, pulls back a bit, then moves up again in a clean pattern. This gives traders confidence and clear patterns to trade. Unfortunately, MLGO didn’t offer this today. Instead, it had erratic pops followed by consolidation, making it tough to trade effectively.

My Experience with MLGO

I wasn’t at my desk at 4 a.m., which cost me some early profits as MLGO shot up. My first trade was around 9:15, where I bought on a pullback at $5.02. It moved up to $5.40, and I took my profit. But right after, it dropped and became very choppy.

Throughout the day, I tried to catch more moves in MLGO. It halted several times, making it even more erratic. I followed my strategy by watching for dips and rips upon resumption, but I missed filling my orders multiple times and got caught in the chop more often than not. This led to several break-even trades without significant gains.

By the end of my session, I decided to step away. MLGO’s price action was too choppy, making it risky to continue trading. Risk management is crucial in day trading, and I didn’t want to let emotions drive my decisions, especially after almost turning a profitable session into a loss. I managed to finish the day with a gain of $1095, with +$856 coming from MLGO.

Lessons Learned

MLGO taught me the importance of recognizing when a stock is too choppy to trade effectively. If you can’t find the patterns you need for a profitable trade, it’s often best to step back. Patience is key in day trading. Waiting for the right setups and not forcing trades is crucial. I exercised discipline today by walking away when the price action didn’t suit my strategy. Also, managing risk is the cornerstone of successful trading. Emotions like fear of missing out (FOMO) can lead to poor decisions. Today, I focused on risk management and stayed disciplined, which helped me avoid unnecessary losses. There’s always another day with new opportunities. Missing a big move isn’t the end of the world. There will be more chances to make profitable trades as long as you stay patient and disciplined.

Daily Goal and Trading Strategy

To give you a quick overview, my daily profit target is $5,000. While I didn’t hit that today, I stayed in the green, which is a win.

Share Size Management

I start each day with a maximum of 5,000 shares and only increase my size as my profits grow. This helps manage risk and ensures I’m not overexposed on my initial trades.

Risk Management Approach

I cap my downside by starting small and only increasing my size after accumulating some profits. This limits my losses while allowing for potential gains to grow.

Ideal P&L Curve

On a green day, I start small and gradually increase my size as my profits grow. On a red day, I limit my losses to a manageable amount. This approach helps me stay consistent and manage risk effectively.

Other Trades of the Day

I also traded SGBX today. It had news that made it pop right around 8:30 a.m. When I see a stock with news and a float under 1 million shares, I’m quick to jump in. I bought on a dip at $4 for a break over, but it only gave me a small profit. I ended up with about $184 on this trade, not enough to hit my daily goal but enough to break the ice.

Final Thoughts and Closing Remarks

Today was a lesson in the importance of patience and discipline in day trading. Despite the choppy price action and missed opportunities, I stayed in the green and managed my risk effectively. Trading is risky, and it’s crucial to stay focused and disciplined to succeed in the long run.

For those interested in watching me trade in real time, you can join us for a free trial here. Remember, day trading is risky, and my results aren’t typical. Take it slow, manage your risk, and stay disciplined. Happy trading!

Stay Connected

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 me on RossCameron.com and Tirekickers.com

Check me out on Business Insider and Entrepreneur

Make sure to follow my YouTube Channel

Find me on Facebook

Watch behind the scenes on Instagram

Stay connected with me on X

Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.