The snow is up around a foot, I'm up +$2026.63! - YouTube
All right, everyone. We’re doing to do our midday market recap, go over the trades from this morning, finishing the day up $2,026.63, which is pretty good. ZZAN is one that I didn’t really capitalize on. I lost $107 on it, despite the fact that it’s up 33% today, just now breaking this little flag pattern and squeezing up all the way to $19.74. I was watching this but I kind of had already said, “I’m done for the day,” so I didn’t really want to push it here.
The thing is, the last trade I took on this was right here on this red candle. I got in at $16.72 for the first five-minute candle to make a new high. I tried to take 4,500 shares. I only filled 1,500, canceled the other two orders, sold 35 shares at $16.98 when it popped up the whole dollar, was planning to sell the rest up at high of day, $17.40, and that just didn’t happen. It turned around quickly and dropped all the way back to $15.55.
I stopped out for a loss at $16.50, but it just kind of made me think, “You know what, probably better just steer clear of this one because it can go the wrong way really fast.” That could’ve been, if I’d filled 4,500 shares, a $1,200 loss. It would’ve really just hurt my day. So it ended up re-testing that level up here, tapping $17.62, pulling back, and then right here was just kind of the final breakout. We basically started to see volume right here around $17.55, knowing that $17.63 was that line that we wanted to see break.
Volume came in. It broke over the high of $17.73. Let’s just look at this on a one-second chart, just so you guys can see this. I know in hindsight it’s like, “Oh, that would’ve been a super easy trade,” but as it’s happening that’s not always the case. This right here was the breakout point, so it broke over and it hit $17.73 right here, so that was the breakout. $17.73, but then on the bid we had … Let’s see, 69, 69, 64, and then it popped up to 88 and then it started to open up.
You can see through this … You know, big spreads, a little bit of pullback, and then, of course, that big drop there from $19.61 all the way down to $18.94. I don’t know. I’m not going to beat myself up too much for not being aggressive on this one. There was probably room for me to trade it a little bit more, obviously, in this area, but I’m finishing the day up two grand so that’s a good day. There are opportunities all over the market every single day.
It’s not about capturing as many opportunities as you can. It’s about walking away each day green. If you’re doing that, you’re doing something 9 out of 10 traders haven’t figured out how to do consistently. Yeah, you’re going to miss some trades. You’re going to see things like this in hindsight that, “Oh, I could’ve done this, could’ve done that.” But as long as you’re walking away with profit, you’re doing the right thing. So I’m feeling okay about this here today. Anyways, that was my ZZAN trade.
First trade of the day was on ANY TE. This was off our watch list. Gave me $571 straight off the watch list. So not bad. Didn’t work out as well as I was hoping it would. We had this pre-market high here of 56. No, it popped up just before the bell to a high of 67. As soon as the bell rang, it dipped down. I said, “I’m waiting for it to dip down and then come back over the half dollar.” I’m going to turn off my video, for those of you on the Facebook YouTube stream, just so it’s a better broadcast.
All right, so it drops down below the half dollar and then pops up. I got in at $8.50, sold half $8.68, a quarter more $8.73, tried to sell another quarter at $8.74, it didn’t get filled, it dropped down all the way to a low of $8, and as it popped back up I sold on the pop. It ended up going all the way back up to $8.96, but I got out the rest of it flat. Was up about $750 and gave back about $200 on that drop, selling as it popped back up, which is fine. It wasn’t the easiest trade in the world, but green is good. That was my first trade on ANY TE.
Second trade was OGEN. This one we had on watch for continuation. I jumped in at $3.50, but as you can see I only got partial fills. Tried to take 7,500 shares, only filled about 2,500 so it just was one of those things where sometimes you don’t get the full order filled. I was in that at $3.50. Let’s see. Oops. $3.50 was my entry right down here, and we hit a high of $3.90. I actually added at $3.90 and yeah. Actually, sorry, we hit a high of $4. I added it $3.89, $3.90, and with selling it ended up $3.93, $3.94, a little at $3.98, and then sold the rest coming back down at, I guess, $3.68. $1,187.37 on that trade. Really not bad, so three minutes into the day, or six minutes into the day, I’m up 1,700 bucks, which is good. That was a really good start.
Then my last trade was PIXY. This one kind of popped up here out of nowhere, and I jumped in on the one-minute pullback right here along at $4.45 with 7,500 shares, selling at $4.49 as soon as it broke at level. Now, when I bought there, there was an 18,000-share seller at 45, and so I was watching as he started to get bought up. I went 18, 17, 16, 15, 14, 13, 12, 11, 10, 9, 8, 7, 5, boom, boom, boom, boom, boom. That’s when I was pressing the button. That’s when I was jumping in. Immediately, it popped up 10 cents, which is typical when a big seller gets bought up quickly like that, and I flipped out and sold on the ask. Took my profit on that, and then the last trade was ZZAN.
We’ve got as our XII on the scans now, but this time of day I wouldn’t take a trade so I’ll just mute my scanner so we don’t listen to them. Looking back at ZZAN, it looks like a false breakout up here. Excuse me. A little pullback, one-minute pullback. $19.41. First one-minute candle to make a new high, goes up to $19.70 but with the spreads it’s kind of hard because this is one that has pretty big spreads. You can see here on my level to $19.21 by $19.35, 14, 13-cent spread, 22 by 38. Becomes a little difficult to trade these. You’ve got to mitigate that risk by trading a smaller size, which works, but today I just didn’t overstay my welcome on that one. Probably missed a good opportunity here, but again, you walk away green, you’re doing something right so I’m not going to beat myself up too hard for finishing the day with 2,000 bucks of profit.
With that, I’m crossing over $9,000 on the month, although this is a little bit of a slower month than … Let’s see. In January, by this day in January, today is the fifth … No, today is the sixth day of March, so I’m up nine grand. One, two, three, four, five, six. By the sixth day of January, I was up, let’s see, five, 12, 21, 24, $28,000. So I’m straggling a little bit behind January, but you know what? That’s all right. Green is good, and still early in the month so just going to keep trying to build that cushion as much as I can.
At this point, I’m still down about, whatever, $1,000 because of last month losing 10 grand, so down $10,500 last month, up about $9,000 right now. I’m getting really close to being at all-time highs on 2018, sitting right now at about $451,000 of profit in my account that I started with $583 on January 1, 2017. So about a year and two months later, $450,000. Going for the million, but it’s going to take some time. Right now we’re in a little bit of a grind, so next target is half a million, $500,000. We’re $49,000 off that goal right now. I should be able to hit that. I could hit that this month if we see really good opportunities, but it’ll probably be in April or maybe May that I break over half a million. We’ll see. Just take it one day at a time. Not going to try to get too caught up in all those numbers, but just giving you guys an update of where we’re at here.
All right, so that’s about it for me here, finishing up Thursday. Let’s see, where does that put me on the week? Let’s see, $2,000 plus $4,600 from yesterday is 66 minus $1,000 from Tuesday is 56, plus $700 on Monday is about $6,000. $5,000 a week is pretty much the goal. That’s $20,000 a month, so that’s kind of where we’re looking and I’m right on track, so that’s good. All right, so anyways, that’s it for me and I’ll be back at it first thing tomorrow morning, 9:00, 9:15, pre-market analysis and we’ll try to finish up the week with a couple more good trades. All right, I’ll see you guys in the morning.
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All right, everyone. We’re going to do our midday market recap here for this morning. Today is actually the best day of the month. $4,607.41, but I’m not happy about it. I’m actually really quite frustrated about it. I’ve got $3200 in missing profits from my account this morning. How did that happen? Well, once again, I took a fantastic trade in the simulator side of my IRA account. $3200 of profit and it’s not real money. It’s not going to be there tomorrow. This is one of the most frustrating things. It’s happen to me like five times and this software … I just don’t like it. I don’t like this software at all on this side. I don’t think it’s very good, but it just will toggle back and forth between your main account and your sim account, just kind of seemingly for whatever reason.
You can see how all of these right now are toggled on my main account with interactive brokers, but for whatever reason today, on OGEN, I pulled up the symbol, O-G-E-N when it was at $2.60 or whatever that was. I jumped in. Let’s see, that was at … It was along 4,000 shares at $2.60, what a great entry. I ended up selling it at $3.11, $3.24, and $3.37, which is great. Then I realized, wait a second, why does this say simulator account? This is insane. This has happened again. How is this possible? So, very, very disappointing. I have $630 of profit in that account and I have a $1,000 loser, which gives me a net of $387 in losses and $3200 in unrealized sim profits, or whatever.
On my main account, I’ve got $4,944 in profit. It’s a great day, but it’s just really frustrating, and this is not the first time it’s happened. I’ve [inaudible 00:02:23] losing money in my IRA, because I can’t add more money to this. If I have a bad week or anything like that, I can’t add more money. You’re limited to adding $5,500 per year. It was just really disappointing that I had that loss early on. We’ll look at that trade on PIXY. I’ll move this down. So, PIXY, I jumped into out of the gates. Interactive brokers, for whatever reason, is a little slow on the execution. It’s not as good of a platform for me as Lightspeed, I 100% prefer Lightspeed. I jumped into this, I pressed the order at $3.20 and it slowly filled. It showed I had like filled 40 shares and I was like “Why did they fill only 40 shares? This is crazy. This doesn’t even make sense.” Then, it slowly filled the rest of my order at 3:24. It showed 48 shares filled here and then five seconds later it filled the rest. Five seconds of lag, that’s crazy. Five seconds. That’s horrible.
That was annoying. Five seconds of lag, I finally get filled at 24 and then you can see here, it popped up only to a high of … Well, it popped all the way up to 48, which was my target to sell at the half dollar. That would have been, with 3,000 shares, like $600 of profit. That was my target, 350. It just popped up, it dropped back down, and then I stopped out down here, and then of course, it curled back up. I don’t know. You’ve got to follow the rules, but I feel like I stopped out basically at the low and then it ended up bouncing back up. It could have just as easily continued to fade like CLBS did yesterday. CLBS came all the way back down on the GAP yesterday. I mean, it just kept selling, right? AMDA, yesterday, this one just totally kept selling.
So, yeah. Today, I would have actually made out better if I had just held PIXY, ’cause it’s gone all the way now up to basically $4, but you don’t know know, and you have to just set your max loss. I stopped out of that with $1,000 in the red, and it didn’t take it in my main account until later on this pullback here, and I made $349, so, whatever. I’m disappointed there, because that’s a 10% loss on a $10,500 account. That’s a big pullback, which is why I was feeling really frustrated this morning. Again, part of the frustration was the fact that I was lagging on the entry. By the time … I almost want to say that … And, let’s just look at this one second chart. I want to say that by the time I was filled the order, it was already coming back down. Let’s just look at this for one second. So, I was filled at 15. Yeah, it hit 48 and then I was filled at 15 as it came back down, but I press the order. If we look at when I sent the order, the timestamp is going to be … Well, that must be just showing when it executed, ’cause that’s obviously … Yeah, that’s showing when it executed.
I wonder if I can config … Let’s see. I don’t know. I guess it’s just showing when it executed, but obviously, I pressed it earlier, because of this fill here at 10. I’m just annoyed by that. It’s very frustrating. It’s just not a good platform to try to scalp on. Probably, in hindsight now, an hour looking forward, I won’t trade the gappers on this, ’cause Interactive Brokers with this platform is just too slow. Anyways. Didn’t do well on that, I was down $1,000. Losing $1,000 yesterday, that immediately put me on the defense, a little bit disappointed. So, I decided to sit back for a second, didn’t take any trades until the next trade, which was … Let’s see. The first trade in this account at 9:43, which was on OGEN. I also got in this at $2.60, so, I bought trading in two accounts, basically the same price.
This is my retirement account, this is my regular margin account. Adding at $2.60, $2.65, $2.81, $2.87, and $3.08. On this one, I was adding because the fact that it was going parabolic was telling me that it had the potential to make a very big move, right? It went from $2.00 to $2.50. I got in at $2.60, next thing I know it’s at $3.00 and I’m thinking this could be one of those ones like INNT or ZZAN that goes to $6.00, so, I’m just going to jump in and ride this momentum, and keep kind of adjusting my stops. That worked out well, because this hit a high of $4.20 from my initial entry at $2.60. That’s where I sold the demo account. They set you up with a demo account. I asked them to remove it and they didn’t remove it. So, I’ll email and ask them again to remove it, but they probably won’t. Anyway, $3200 profit there, which certainly makes up for $1,000 loss. Awesome trade. But, whatever.
In my main account, I was starting to sell at $3.17, $3.17, added at $3.30, sold it at $3.35, added at $3.76 and $3.90, trying to sell over $4.00, but didn’t get filled. So, it sold as it came back down. Hit a high of $4.20. In this one … Oops. Go back here. Oops. One. Just put in one. All right. We have the first trade here with the high of .63. This was the little micro-pullback where I got in. Then, we had a little pullback here around $3.25, another little pullback here around $3.75. This is where I took a trade in my IRA account, long at $3.70, and selling that. Tried to sell some at $4.04, but this is where I now have a problem. I only filled 450 or 350 shares and then it started to drop. So, I canceled the order and sold. So, now I’ve used up all three of my day trades for the next five days, because I had to sell in two pieces. So, that’s a day trade, that’s a day trade, and my exit on PX whatever it is is a day trade. Now, I’m done with this account for the rest of the week. I’m going to book a 300 day $7 loss on it. Frustrating.
Back to my main account. $5,112.00 on OGEN, $349 on PIXY, and a $500 loss on OPGN. You know, easy to say “Well, Ross, this is a great week, or, a great day. $4,600” and it is. But, it’s also a little disappointing that I am red in my IRA and just kind of fumbled things there for the fifth time or whatever it is. I don’t know. It’s just part of the deal. I’ll email and complain about it, but nothing will get done, ’cause nothing ever gets done when you do it. It’s just the way it is. So, that’s why you want a traded account like Lightspeed. The only thing … I’m going to try to petition Lightspeed to create margin on IRA accounts, so we can trade the IRA on settlement margins. Otherwise, I would absolutely just have two Lightspeed accounts side by side, my regular one and my IRA one, but they only give you traditional margin, which means you have to wait two days for every trade to settle, and that’s not going to work with a $10,000 account.
I’m going to petition Lightspeed, see if they can do us a solid. We send them a ton of business, so, maybe I’ll do it, and they’ll be able to be the account that I use for my IRA, as well. So, I’ll reach out to them over there on that and maybe they’ll be able to get something up and running in 2018 for us. Anyways, that’s kind of it for me today. It’s a snow day. I’m just kind of thinking I’ll just trade the first hour and then be done. Overall, a good day. $4,600, wish I was a little happier about it, but now I’m in the red on my IRA account. So, I’ve got to work on getting that thing back up. Trading in the IRA has been such a nightmare. I’m still dealing with Interactive Broker’s customer service trying to fix this issue that they screwed up. It’s just been a pain. In February, I didn’t take a single trade in that account. Mostly because I didn’t see anything that was A quality. Then, I kind of said, jeez, you know what? I went a whole month without taking a trade. If I had even made $50, it would have been better than doing nothing. So, that’s why today I was like look, you can’t just keep not trading in the account. Just take the trade, just do it. And, of course I lose $1,000.
Eh, oh well. It is what it is. I’ll be back at it first thing tomorrow morning. Hopefully we have another good day of trading, some decent momentum. OGEN today was good, ZZAN yesterday was great. INNT the other day was fantastic. What’s coming up tomorrow? I don’t know, but I’ll be here [inaudible 00:12:17] a-traded and breaking down the watch list first thing, 9-9:15, and then we’ll start trading as soon as the bell rings. That’s the game plan, I’ll see all of you back here first thing tomorrow morning.
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A ratio spread is an options trading strategy that is used when a trader expects a low level of volatility in a security and their target strike price is unlikely to be exceeded by a significant degree. This expectation allows the trader to sell options with a different strike price to recoup a premium which offsets the cost of their primary options purchase.
Ratio Spread Example
Imagine that a trader expects a stock that is currently at $25 per share to exceed $30 per share at the end of the month. In addition, the trader does not expect that the stock price will go far beyond $30 per share.
Therefore, the trader can not only buy a call option for the stock with a strike price of $30, but they can also sell 2 call options with a $35 strike price whose recouped premiums exactly offset the premium paid for the $30 call.
This creates a cost neutral position with no downside risk (all options expire worthless at <$30), a small window of profitability (between $30 and $35) and an unlimited upside risk (above $35).
This risk profile makes sense to the trader because of their expectations of the upcoming price action of the stock over the next month.
Trading a Ratio Spread
There are a number of different methods for setting up a ratio spread trade, but the general strategy relies on an expectation of low volatility and a targeted strike price range. Generally traders using a ratio spread are looking to offset the low upside potential of their expectations by creating a low risk or no-risk entry point by selling offsetting options with a different strike price.
The substantial break-even area obtained in a ratio spread is the reward for accepting a hard cap to returns on the primary option position (the purchased options) and the unlimited upside risk on the secondary option position (the sold options).
Setting such a small band for success may seem like an extreme risk, but many securities display the kind of low volatility that makes ratio spreads an ideal trading strategy.
Traders generally do not employ a ratio spread because of a supreme predictive confidence of an exact outcome range, but rather as a result of historically low volatility and a hard structural limit on any possible upside moves in price as a result of relevant news or events.
The ratio spread strategy is an example of the advantages of having a broad toolkit of trading strategies when dealing in options and other derivatives.
While few traders would purposefully seek out ratio spread trades specifically, an experienced options trader would instantly recognize a prime opportunity to employ a ratio spread trade. Used in ideal circumstances, a ratio spread trade allows otherwise marginal trades to become favorable and already favorable trades to be optimized.
Ratio spreads and similar sophisticated options trading strategies allow experienced options traders to identify and execute highly favorable trades in circumstances that inexperienced traders would not even be aware of. That is why it is so important that day traders looking to trade in options arm themselves with the full toolkit of available trading strategies.
A position is delta neutral when the change in the value of one or more securities is exactly offset by a corresponding change in the value of the associated derivatives within the position.
Traders use delta neutral positions either as a hedge in securities trading or as a strategy to profit from alternate sources of derivative value, such as time decay and implied volatility.
Delta neutrality relies on the use of the delta value of options, which is the direct relationship between the price of a security and the price of the associated option. For example, if an option has a delta value of 0.5, then a $10 increase in the price of the security would lead to a $5 increase in the price of the option.
A trader can select an option or set of options whose delta directly offsets any change in value in the underlying security.
Delta Neutral Example
Suppose that a trader is looking to create a delta neutral position with 10 shares of company A that he owns. To do so he decides to purchase 20 options, each with a delta of -0.5.
Therefore, a $1 increase in the price of the shares would lead to a $10 gain (10 shares x $1 gain each) exactly offset by a $10 loss (20 options x -$0.5 loss each), which would be a delta neutral position. Any change in the price of the company A shares is exactly offset by the change in the price of the associated options.
Delta Neutrality and Trading
There are a number of reasons why a trader may wish to establish a delta neutral position. While hedging for a security may have been the most common reason to establish a delta neutral position originally, the growing popularity of options-based trading strategies has led to a vast proliferation of complex and sophisticated strategies based primarily or solely on the value of options as opposed to their associated securities.
For example, one of the most common reasons for establishing a delta neutral position originally was to hedge temporarily. If a trader expects a security’s price to rise in the long run yet fall in the short run, they may select to offset the short term position loss by purchasing put options to create a delta neutral position in the short term.
By contrast, many contemporary delta neutral strategies actually aim to profit from the change in the price of the derivatives in the position, and it is the securities themselves that are purchased to create a delta neutral position. Many delta neutral strategies are primarily options-focused, with the associated securities used to isolate and control for the delta value in the options.
The growth in options-based strategies has led to the relative decline of delta neutral hedging strategies compared to strategies that are designed to profit from an increase in the value options while maintaining a delta neutral position.
A delta neutral position can be employed for a number of reasons, from hedging to options-based strategies aiming to profit from other sources of option value, such as time decay or implied volatility. Delta neutral strategies are another example of the complex and sophisticated positions that can be crafted using an advanced understanding of options and other derivatives.
Vertical Spread Definition: Day Trading Terminology
A vertical spread is an options trading strategy that involves the matching sale and purchase of options of the same type and with the same expiry date, but with a different strike price. The idea behind a vertical spread trade is to create a small window of unprofitability, the spread, between two profitable outcomes.
Vertical Spread Example
A trader wishing to set up a vertical spread on an equity priced at $35 per share can sell a call option at a $35 strike price for $3 and buy another call option at a $40 strike price for $1. The premium gained from selling the $35 call option ($3) is greater than the premium paid for buying the $40 call option ($1) which means you would bring credit.
This means that the trade is profitable when the price is slightly above $35 and slightly above $40, leaving only a small area of unprofitability between these two points, which is the spread. Ideally you want the strike prices to finish out of the money so the options expire worthless and you can keep the credit you brought it.
Vertical Spread in Trading
A vertical spread is most commonly used when the trader is confident of a significant price move, but wants to protect against the downside. In the example of a $40 strike price, any price well above $40 will mean an increasing rate of profit on the trade, as the income earned from the $40 call will outpace the payout made on the $35 call.
However, if some event causes the price to not rise, or even to fall, then the trade will still be profitable as a result of the beneficial premium spread from the sale of the $35 strike price option.
A vertical spread is another example of highly sophisticated derivatives trades that allow traders to craft complex and nuanced positions that perfectly match their expectations of a security’s potential price action.
An equity trader who sees a potential for a price increase yet notices that this potential may fail to occur for some given reason may choose to pass on that trade. However, an options trader can craft a perfect position as a response to this scenario using a vertical spread trade.
A vertical spread is an options trading strategy that is most commonly used when a sharp price move is expected alongside the existence of a potential downside. The vertical spread allows the trader to gain a beneficial exposure to the positive price move, while also narrowing the window for a potentially unprofitable trade.
Did you know that a vast majority of members belonging to the Forbes 400 list of wealthiest people in the world have increased their wealth by investing stocks? According to history, trading or investing in stocks is one of the best ways to build wealth over an extended period.
What you ought to know is that lack of understanding the basics about stock investment and trading could result in the loss of capital. Since stock trading is a tricky business, you need to master the basics first and learn how to invest in the right stocks.
What Are Stocks?
You may have encountered the use of the following words referring to stock – security and equity. Well, stock is referred to as equity because as an investor, you get to purchase a share of a company. It is also referred to as a security since as an investor; you will be securing a part of the company. This means that you will become a part owner of the organization based on the amount of shares you have.
What is an Investment Portfolio?
When investing, financial advisers will advice you not once but several times to diversify your portfolio. The reason for doing so is to lower any risk(s) that could result in the total loss of your capital. To avoid this, you need an investment portfolio. This refers to a collection of all your investments that includes stocks and bonds.
You can do this by investing in a lot of different stocks or you can look at investing in ETFs that cover certain sectors or industries. You can also look at investing in mutual funds but make sure you do your research because there are a lot to choose from and many have different types of fees that are different from stocks.
Stocks are the foundation of an investment portfolio. Over the years, they have outperformed different investment options. To become a well informed investor, you need to know the different types of stock.
i. Common stock
This type of stock entitles the investor to share in the company’s profits through capital appreciation or dividends. It is important to know that common stockholders have preemptive rights. This gives them the power to maintain the same proportion of ownership. In addition, they have voting rights where the number of votes is directly related to the shares owned. Returns from common stock do fluctuate with changes in market condition.
ii. Preferred stock
Preferred stockholders have a larger claim on the company’s equity but since the stock is considered to be less volatile, there is less probability for profit. The stockholders are entitled to receive dividends which are fixed and regular. The dividends are provided over a certain period unlike those provided to common stockholders (variable dividends). One advantage of preferred stockholders over common stockholders is that in case the company goes bankrupt, preferred stockholders will be paid first.
Ways To Invest In Stocks
When it comes to investing in stock, you have two options. You can either choose to become an independent investor (be your own boss) or work with robo advisors. As an independent investor, you will be in charge of everything – setting up stock screeners, choosing stock symbols to invest in and coming up with trading strategies among others. In this case, you will work with a brokerage in order to access market data.
Robo advisors refer to digital platforms or financial advisors who provide automated investment management services with moderate human intervention. They provide digital financial advice thanks to the use of algorithms.
Select the Right Type of Investment
There are three main types of investments you should know.
Stocks – also referred to as individual stocks, investing in it/them allows you to own part of a company. There are two types namely common and preferred stock which have been elaborated previously. When you choose to invest in individual stocks, you have the option of creating your investment portfolio and watch it grow.
Exchange traded funds (ETFs) – also referred to as stock mutual funds, this investment type enables you to own different parts of varied stocks. This is usually achieved through a single transaction. With ETFs, you have the option of building your diversified portfolio similar to mutual funds but with the trade-ability of stocks.
Mutual Funds – A mutual fund an investment vehicle whereby funds are pooled together with the goal of investing in specific sectors or industries. By investing a lot of different stocks at the same time you are limiting your risk and reducing volatility in your portfolio through diversification.
Research on Capital Requirements
You might think that trading stocks requires you to have big money, right? What you ought to know is that today, investing in stock is not a capital intensive venture. Thanks to upcoming mobile trading solutions like Acorns, Robinhood and Stash Invest; you can start with $5 only and continue building your investment portfolio.
Choose Your Broker
Selecting your first broker requires lots of careful contemplation. Why? The right broker can help you find the right securities and diversify your investment portfolio while the wrong broker will limit your options. So, if you don’t want to be scammed, checkout the following resource on how to choose a stock broker.
Selecting the right broker should also include making sure they have a solid platform that will meet your needs as an investor. This should largely be dependent on your frequency of trades, investment strategy and preferences. The best platform should have a web browser, mobile app and desktop platform.
See our round up of the best online stock trading brokers in this link.
With your new trading account, you are ready to start investing in stocks.
There you have it. The ultimate guide on how to invest in stocks. Once you have everything as described above, all you need is to utilize the available tools, develop trade strategies, implement them, research, stay up to date with market news and manage your emotions.
What’s up, everyone? All right. Here we are finishing the fourth trading day of the month of March, and I’m in the red, down 945 bucks, but you know what? Today’s actually a little bit of a breakthrough because I did something that I almost never do. If I look at my calendar here, if you look at my losing days, well, we don’t have the month of February because that’s gone, I don’t even remember what happened, but we look at the losing days from, let’s say, the month of January, down $4,600.
That was a losing day. Down $4,000 on another one. These are pretty big losses, and usually what ended up happening is I said, “I’m below my max loss. I can’t keep trading.” I stopped trading for one of two reasons. Either I hit my daily max loss, or I had three losing trades in a row. If I have three losing trades in a row, that, for me, is my rule that I’m done trading. I’m not going to take a fourth trade.
Today, I didn’t have three losing trades in a row, and I also didn’t hit my max loss. I just calmly said, “You know what? I’m not feeling it, and I’d rather just not keep trading today. I’m down 945 bucks. That’s not that bad. I’d rather just keep the losses small.” I said to myself, “I had this goal for the month of March that I would close every day green,” and so as I was down $250, I was sort of looking, “Okay, what can I do to get that trade to get me just up over the break even spot, even if it’s only $251, and then I said, ‘All right.'” I took another trade, and I lost. Does it really matter? Because that’s focusing on the sprint, and we’re thinking about the marathon. I’m in this for the long haul. I’m at $440,000 in my account that I started with $583.
My goal is to break over a million dollars. I’ve got 600,000 or 550,000 to go. Who cares about today? Today, we’re not seeing a lot of momentum, down 940 bucks. I’m throwing in the towel. I’ll be back at it tomorrow. That’s, for me, almost just transcending. It’s getting above the ups and downs of each individual day and trying to separate myself from the emotions. It’s very easy to get this tunnel vision where you’re just looking at the P&L, and you’re seeing that’s it red and you’re thinking about how you needed to make this amount today and blah, blah, blah, blah, but step back. Let that go. Look at the big picture.
Last year, I finished with $380,000 profit, $1,500 a day was pretty much my average. Some days were great. I had a day where I made $40,000. Other days were a little slower. I either was break even or lost money, and that’s all okay. Everything in between is just the noise.
Right now, we’re in a market that is a little tricky. It’s kind of just a grind. That’s okay. The momentum will come back, and when it comes back, I’ll be there to step it up with big size, but, for right now, I’m just going to go with slowing things down, trading with smaller size, and not being too aggressive because I just want to take it slow and have a good month of March.
Anyways, that’s where I’m at here for today, fourth day of the month, and we’re going to break down all of the trades in today’s Midday Market Recap.
All right, everyone. We’re going to break down the trades from this morning with our Midday Market Recap here. Today’s the first red day for me for the month of March, down 945 bucks. Although being red is obviously a little disappointing, the good news is that I’m keeping the losses pretty small. You can see here … Let me drag this up. My P&L, green on two names, red on two names, sort of just mixed followed through today, and I didn’t have any big winner to really offset those two pretty moderate losses, a $535 loss and a $680 loss. Not a big deal. It was just, today, I didn’t happen to get a good winner, like a $6, $7, $800 winner that would make up for it. First red day here for the month of March, but, really, it only gives back yesterday’s profit and a teeny bit of Friday’s profit, so still well green on the month, which is good.
I think one of the goals for me this month is, number one, not to have a loss bigger than … not to close any day down more than $1,000 if I can help it. That would be really nice, number one. Number two, to move in the direction of trading with smaller size. I can just not get as frustrated. Right now, we’re in a market where frustration can easily take over because it’s frustrating to come in every single day and trade and not see good follow through.
If you look at my calendar for the month of January, I was making $8,000, $5,000, $12,000, $13,000, $18,000 back to back to back. It was crazy. Right now, having days where I only make $700 or where I lose 900, it can become draining when you’re used to these really big green days. That’s something definitely to be mindful of.
It looks like I’m not sure if my livestream on Facebook is really working. It seems like it’s maybe lagging a teeny bit, but, in any case, one of the things that, for me, it’s like I can get very aggressive with my share size and, even today, I took a 12,000-share position on CHFS, and, of course, losing only $500 with 12,000 shares is really not bad at all. I got in this at 3.80 with 12,000 shares. It popped up to $4, was up 2,500 bucks, expecting to break over 4 and just scaling out, 4.10, 4.15, and it didn’t happen. Stopped out with $500 loss.
Overall, that’s not bad. Risk 500 to make 2,500. Its’ good risk/reward ratio, but if I keep swinging for the fences with that type of big size, it’s inevitable that I will have a day that I’m on the wrong side, and I take a $3, $4,000 loss, and I really can’t afford that right now, financially, but even more so emotionally, in terms of confidence. It’s the last thing that I really need after closing February red. I just need to build that confidence back up and almost trade with size that’s so small that I don’t even really care. Trading with 2,500 shares or 3,000 shares because if I lose 20 cents on it, it’s no big deal, and if I make 20 cents, it’s great, but it’s also no big deal and just keep doing that until we start to see better opportunities, and then I can amp up the share size.
INNT, I thought this would be the big momentum stock that would bring small caps back to life when it goes from $5 to 20 bucks. TENX, another one that made this a really big move, but it doesn’t seem like that’s really happened. Today, the small cap market was pretty much dead. AMDA popped up to 3.37 and tanked at the open. CHFS popped up to $4 and came back to 3.50. CLBS, which I didn’t trade, sold off right at the open and has just been weak. Even the larger cap stocks, YY, look at this gapper. Gap and drop. It dropped 15 points, which is crazy.
Right now, we’re in what is a little bit of a more difficult market, and if you look back at my P&L from 2017, you would see that January, February, March were three amazing months for me, and then things slowed down in April, May, June, July, August, and September, and I was only making about $5, $6,000 a month, which, for me, was very low. For a lot of you guys, $5, $6,000 a month, you might be really happy with that, but having had months where I made $60, $70,000, or even $100,000, 5 or 6,000 almost feels like nothing. It feels like one day. I might as well take the whole month off. That’s how it feels.
That’s where you’re kind of in the grind, and you’re in the trenches, and it’s just day in, day out, trying to capture a little profit, 300 bucks, 400 bucks, 500 bucks, and then once you feel like you’ve gotten a little progress, boom, that’s when you get hit with a $2,000 loss, and you just gave back a week of profit. That’s kind of where we’ve been right now, and it’s no doubt a little frustrating. It can be draining. I would say that if you can learn to trade during this type of environment and consistently make 200 a day, then you’re going to be in great shape for when the market does start to open up.
Right now, I’m up probably $2,500 on the month, and we’re four days in, so I’m averaging $600, $700 a day, and I know for a lot of people, $6, $700 a day would be incredible. You just get used to these big, big green days, and you can stop appreciating the small days, but you got to be able to adjust your expectations to different market conditions. You’re simply not going to be able to make $5,000 a day every single day for an entire year. That would be a million dollar year, and very, very few day traders can put together a million dollar year. Just, it’s not very common, but putting together a $150,000 year, a $250,000 year, a $350,000 year, I really believe that is well within reach for 80% of you, in the chatroom and who are going through our classes. I think that is a realistic goal to strive for. Start with 200 a day. Then 300 a day, 400 a day. By the time you’re doing $500, $600 a day, you’re crossing six figures.
Even for me last year, I averaged $1,500 a day, which totaled to $380,000, which was a great year. It obviously comes in waves. There were months last year where I made a lot of money and months that were a little slow. It’ll be the same in 2018. It’ll be the same in 2019. It’ll be the same in 2020. That’s just the way trading is. You have to be able to come in expecting that. Again, if you can be a profitable trader during these types of markets where it’s a grind, then that’s when you know you’ve really got it.
Anyways, trades from today, AMDA, gap and go trade, this one I jumped in it at 3.15 for a break of the pre-market pivot. The pivot was the high of this candle. Actually, I got filled on this at 3.18 and 3.27, and in the same second. That’s how fast these can move. Sold a second later, 3.35, 3.39, 3.34, and then I stopped out the rest of it at 2.98 as it dropped back down. It didn’t hold that level, and I couldn’t afford to keep holding, so ended up only being $177 profit. It was about a $400 winner, and then I had to stop out. That was AMDA.
Next one was CHFS, and at 75, 77, 82, 83, 85, sold half at 91, was ready to sell the rest above 97. Well, this was as it started to drop. I tried to put out orders and then had to stop out at 85, 72, 67, and 52. Ended up being a $535 loss, but, again, with 12,000 shares, that’s not that bad. Adding some liquidity, I guess, the 6,500 shares, so that’ll reduce my commissions a little bit on that trade, but kind of a bummer that it didn’t work out well. The chart on that one, it hit the scanners, wasn’t off our watch list. It was off the scans, so, boom, hit the scans, and I saw that and thought, “CHFS, this is one of the ones I’ve traded well in the past. We’ve got a couple days back here, right here, the day it went up to $20 the next day.” I think this was a stock that I made $30,000 on, so was excited to see it on the scans, jumped in pretty quickly, but it just didn’t hold up, came back down, flagged sideways, but it didn’t get back in it, so I just said, “Whatever.” That’s it on that one.
Next one was INNT. At this point, I was down about 360 bucks on the day, and then INNT squeezed up and got halted on the circuit breaker. It squeezed up 10% in a one-minute candle basically or right in this candle, got halted. It resumed higher. I jumped in it at 6.58, sold 100 shares at 17.02, sold the rest at 16.70 as it came back down. Average was only 20 cents with 500 shares. Not a big winner, but $93 profit.
With those three trades, I was down to $226 dollars on the day or right around there, $260, and I was looking for that next trade to try to get me back to break even. Wasn’t seeing anything in small caps. WBAI, a little outside my price range, but what I liked was the fact that it had just made this big move from $20 all the way up to $23, and so I thought, “Okay, well, you know what? It’s strong. I’ll buy the one-minute micro pullback,” which I did. I got in right here at 22.71, 1,000 shares.
We popped up to a high of 22.91. I put out an order to sell at 89, did not get filled, tried to sell at 86, did not get filled, and then I had to sell on the drop, which was right here, boom, all the way down to 21.50. That’s the hard thing with these stocks is that when you have this price range, you can lose all of a sudden 680 bucks, and I lost 68 cents per share. Did I have a potential to make a $1.28 per share? Gees, I just don’t know. I don’t really think so. The risk/reward on that one wasn’t very good, and I probably could have done without that trade and just closed the day down 250 bucks, but I took the trade, so going to pay the penalty on that one, and it is what it is.
Down 945 on the day. Just grinding right now. I paid myself $100,000 of profit for the month of January. I paid myself nothing for the month of February. I didn’t have anything to pay myself, lost 10 grand, and now, in March here, I’m just trying to build the account and hope that I can get a paycheck here either at the end of this month, take out a little profit or maybe it won’t be till April, but that’s okay. The 100 grand will tide me over for quite a while. I don’t even spend that much money, so most of it’s just sitting, and that’s okay.
That’s where we’re at right now, finishing the day in the red, but not too frustrated. I didn’t have two losses in a row or three losses in a row. I just am voluntarily saying, “I’m done today.” That’s nice. I’m not leaving because I hit my max loss. I’m not leaving because I hit my max consecutive losers of three in a row. I’m just saying, “You know what? I’m not feeling the momentum today, and I’d rather save my capital for tomorrow.”
I’ll be back at it first thing tomorrow morning, 9:00, 9:15 pre-market analysis, live in the chatroom and on YouTube. We’ll start trading when the bell rings at 9:30 and, hopefully, tomorrow, I can get myself back into the green, make up today’s losses and start to work towards that $4, $5,000 weekly goal. That’s where we’re at, and I will see all of you back here first thing tomorrow morning. See you guys in the morning.
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All right. So here we are, first day of the week and as you may notice, I am sitting here in my home office. So what am I doing here? Wasn’t I supposed to be in California? In fact, I seem to remember driving down to the airport on Thursday, staying at the airport hotel on Thursday night, going to the airport on Friday, boarding a plane three times in a row, being told to get back off, and then finally after four and a half hours, having the flight canceled.
It’s a distant memory, but yes, that’s exactly what happened on Friday. It was a long, exhausting day. I packed all my stuff. I was ready to go. Flight got canceled. So I went out and the taxi line was about 250 people deep. So I took a $300 Uber back into the city and I stayed at the Plaza, a home alone style night with a nice Sunday and a bubble bath. It was actually pretty relaxing. Kind of nice way to calm down after a really not very enjoyable day at the airport. So my trip has been postponed until next week.
All my bags right now that I checked are … They somehow found their way to customs. They’re stuck in customs. I have no idea because obviously I wasn’t going international, but they are now in customs and I’m waiting for them to get shipped back to me, which will hopefully happen soon. I packed all my favorite outfits. So I’m really in a jam here. But you know what, that’s okay. So I’m back here in my office. I’m missing some of my equipment that I had packed in my carry on or my checked bag. So right now just kind of trying to get this week off to a good start.
Today, a little bit choppy. Made about $2,300 on INNT. First entry was a $12. Selling that all the way up through $18, then I had three other stocks that I traded and I lost money on all three of them. So this was just a choppy day. I wasn’t seeing that follow through that I really wanted. But you know what, I’m closing the day up about $700 green is good. Third green day of March. Right now I’m just kind of on the consistency challenge.
As you may remember for those of you who have been following this video blog for a long time, back in the end of 2016 and going in through March … No, it was from November of 2016 through I think January of 2017 I had a 50 day hot streak. 50 consecutive green days. In those 50 days, I didn’t make $150,000. I didn’t make a lot of money, but I was very consistent. It really built up my confidence. That what led into the 100k challenge from $583 to $100k in 45 days. I started that challenge at the end of that hot streak.
So right now, March is all about consistency. Instead of swinging for the fences and being really aggressive, I’m just trying to get myself on the leader board, get base hits, be green and that right now is the goal.
So we’re going to break down all the trades from today in today’s Midday Market Recap.
All right. So we’re going to break down the trades from this morning. As you can see, $728 total profit. The big winner was INNT $2,336.11. So this is one that I was really hesitant on early on just because I just felt like I wouldn’t be able to trust it. It unfortunately was very big spreads. It was not clean. But I said, “You know what, the level that I like would be a break of $12,” because that was resistance on Friday afternoon and again after hours. So I thought if it breaks over $12, that’s the spot where I’m interested. So let’s back this up here. Go back to right around where we had the break of 12. So it wasn’t my very first trade of the day. I took a couple others first, but we’ll go over INNT first.
So I started with small size only 500 shares. In fact, I only took a total of 600 shares. The goal was 1,000, but I only got partial fills here. So 600 shares long at $12, which is fine. I ended up selling it up here at $13.54, $13.79, and $14.17, which was crazy. $2.00 per share. So it ended up being like $800 scaling out into the move. So even though it was only 600 shares, $800 that was a really solid trade. My next entry on this was for a break right here over $14.00, so I was watching it in this area for a break over 14. So we were going sideways, going sideways, and I said if it breaks over 14, that’s where I’m going to be interested. So let’s see, I ended up getting in this at I guess, let’s see, I took a small scalp here $13.46 to $13.60. That was in this area right here. So like $140 on that. Then I got back in at $13.99. Sold half at $14.47. Sold a little more at 74. Then I got a partial fill there or 60 something. Sold some more at $14.89, $15.24. This thing squeezed right here all the way up to a high of $18.79 out of that $14.00 break out. I mean, that was incredible.
You know what, I could’ve been so much more aggressive on this. This could have been a trade where I took 5,000 shares and made $7,500 or I made $10,000. But I just don’t feel like I can afford to take that kind of risk right now. We’re early in the month. I’m trying to build up my cushion. I was red in the month of February and I just need to close the month of March in the green. I can’t risk having a big drawn down or doing something stupid. So I was a little more conservative on it. That was okay. I’m obviously green on the day and so that was good.
I ended up being up over $3,000 on it, and then giving back some profit with this trade here from $18.30. Stopping out at … Selling some at $18.60 and $18.79 and then selling the rest down here at $17.60 and $17.25. So not very clean. It did this big false break out right here on this candle. So that was where I got stopped out right there. So I gave back $800 on it and said, “All right. You know what, with that, I’m going to scale back.” So finished the day pretty much there.
The couple of trades earlier this morning, AVGR. This one was off the watch list. I got in at $1.44 for anticipating the break over the half dollar. It tapped $1.50. I tried to sell at $1.49. Filled 200 shares. Sold the rest at $1.44 or $1.41. So lost $130 on that.
Then took a trade on MYO. This was a $900 loss. Kind of annoying. Jumped in it thinking it was looking good. It tapped $5.52. Then dropped. I was in at 50, so stopped out at 31. On this one I got in for the break of the half dollar thinking that it would just continue higher and obviously it just didn’t. It came all the way back down here. So not a very nice move on that one.
TENX, tried to scalp it. I had a couple of trades on it and one of them was a winner then the other one was a loser. So I got in on one trade for the break over $9.00. It squeezed up to a high of $9.40, but I only had 350 shares. See, my order here only filled 350 shares. So I was like, “All right. That’s great. But it’s only $100.” Then when I got back in it at $8.76 right here, that was for the first five minute candle to make a new high and it did make a new high. But I was … My target was back to high of day and it ended up dropping. So stopped out of that with $600, $700 loss and so this is my PNL today. It’s not the best. But I guess the cool thing is that my average winners today are 79 cents per share because I had a couple of really big winners. My average losers are 20 cents. So 79 cents per share and 20 cent loser, that’s a really good profit/loss ratio. Accuracy was only 50%. So you can still be profitable with 50% accuracy as long as you’ve got a good profit/loos ratio and today I had it.
So anyways, that’s about it for today. Really not the most exciting day. Couple little opportunities there, but not a big green day. Nothing to really write home about. Just making a little bit more progress. Trying to build up my account a little bit more. So as of right now, I’m going to be up around $3,700, $3,800 or close to $4,000 on the month. I guess I’m down about $7,000 off of my all time highs for the year. So I was up $117,000 at the end of January, lost $10,000. So was up only $107,000, and now I’m up like $110,000, $111,000. So making my way back up. Looking to cross over $117,000, make my way to $125,000, $150,000 and just keep moving on up.
All right. So that’s about it for me today. We’ll be back at it first thing tomorrow. Hopefully we’ll see some more good opportunities and remember, only takes one. Today we had one really good opportunity and that not only gave me a good profit, it also got me out of the hole from a couple of other trades.
All right. So we’ll be back at it first thing tomorrow morning, 9:15 Pre-Market Analysis. I will see you guys there.
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What’s up everyone? All right. It’s a new month. March 1st. I’m excited. I’m really confident for the month of March. I know it’s going to be a great month. But today, my trades have been a little tough. I started the day with a couple of small winners and then, boom, dropped myself into the red on a $1,400 loss. It was a trade I took out of a circuit breaker halt. It was a squeezing momentum style trade and it just rolled over hard but I was able to get myself back out of the hole and now I’m up $1,458 on the day.
Green is good. I’m starting the month of March in good shape. This is better than I started the month of February. So we’re already off to a great start. We’ve got a snow storm coming in later today so I’m going to drive down to New York City tonight. Tomorrow, I’m going to trade from the hotel and I’m going to fly out and I’m going to be in California next week. I just can’t wait for some weather.
So anyways, I’ll give you lots of clips of being in California. But right now, let’s break down today’s trades in our midday market recap. All right, guys. So this is going to be a little bit of a exciting midday recap because I’m going to go over my trades but in the background, we’ve got TENX halted right now, currently up 82%. This is a really nice momentum name here. I’m up $1,493 on it. Up $1,458 on the day. Today is not a home run for me. It’s really was this day to try to just get myself back to green after being down 1,400 on this one name. We’ll walk through the trade. So just so you guys know, TENX, it was halted. Last print was at 10.47. It will resume in five minutes at 10.52, all right?
So we’ve got the time up here. We’re going to watch that for resumption. So I’ll walk you through my trades from this morning. Very first trade was on MNGA. This was off of our watch list, pre-market. It was a gap and go setup as you can see here. A decent pre-market flag. A little bit of consolidation here. On this one, I jumped in as soon as the bell rang, 10,000 shares at 1.51 average so selling at 1.51, 1.52 and 1.50. Total profit, $24.03. That’s a quarter of a cent. Very, very small win. It just didn’t hold up. It popped up a little bit. It didn’t work and I said, “Break out or bail out.” It’s not working. I got to get out. So I feel good that I was able to take a 10,000 share position and only lose or make $24. That’s in terms of risk management not bad. So that was the first trade of the day.
Second trade was CRON. This one, I got in and I … Let’s see. It said, “Cannot exceed buying power to buy 2,500 shares.” So I took one order and I was like, “Wait a second, I can’t take full size?” So then I was just like, “Well, I don’t know. I’m just going I guess hold these 2,500 shares.” I was kind of like now I don’t even want to take the trade because now I feel like I can’t really make anything on it. So I jumped into it at 9.50 right here and then I just ended up selling it at 9.70 for 20 cents. Now as it turned out, that was $500 profit which wasn’t bad but I was just kind of like, “Well, if I can’t take full size, what’s the point of even takin the trade?” So then it surprised me by working out fairly well.
It pulled back and I got in for a second trade right here at 9.50 on this little pullback. So right here, back in at 9.50. Selling again through 9.70. So in at 9.50, out at 9.70. Then down here, you’ll see in at 9.50, out at 9.69. 1,071 bucks on this one. Not bad at all. It’s a marijuana stock, a Canadian company that has just gotten listed so it’s getting a little action and ended up giving me a couple nice trades.
TENX, let’s flip back at this one. We’ve got just seconds to resumption. You can see the level two here. It was halted at 8.49. So this one at this point, if I took any trades, I’d only take a thousand shares because the risk is so high. What we saw with this one that made it really hard was big spreads. Right now, we’ve got 49 by 50, 30 by 31 tight spreads but it’s dropping. 31 by 35. The high out of the halt was 8.70. 8.70 would typically be the spot I would watch. Look at how fast it just dropped to 7.90. All right guys, so when we talk about trades that are beginner level, intermediate and experienced, this is experienced. You have to have a lot of practice before you start trading stocks like this because if you get in going the wrong direction, it can be very painful.
Here right now we have a 10-cent spread, 15-cent spread. The difference between the bid price and the ask is the spread. So 8.15 by 8.29, that’s a 14-cent spread, right? That means if you buy on the ask, you’re instantly down 14 cents if you sell on the bid. Look at how fast this is at 7.73. That happened in the blink of an eye. I know from experience. I’ve got a $1,400 loss right here from being on the right side of one of these types of stocks earlier today. They have a lot of potential but until you’re really good at being able to make decisions, split second decisions, you want to leave these for when you’re a more experienced trader, all right?
So TENX, let’s scroll back up here. We’ll look at KBSF, that was the one that got me pretty good. So TENX as you can see, from 4.50 all the way up to 8.50, an amazing move, really quite impressive. KBSF earlier this morning, it appeared it was going to do something similar. Okay, so KBSF squeezed up earlier this morning from a low of about 5.50 all the way up to 6.50, all right? So I jumped in at 6.49 with 2,500 shares and I tried to add going into the halt at 83. I did not get filled, thank goodness. It resumed lower. After the five minute halt, it resumed at 6.70 and dropped all the way to 6.03. In one candle, it dropped 70 cents.
I said, “I’ll hold it for a second. Let’s just see what it does.” It popped back up to 6.44. I thought, “Okay, maybe it will pop back up. Maybe it will curl and will be right back up at $7 before you know it.” That’s not what happened. I ended up stopping out at $6 and 5.80 for $1,412 loss. So again, this is one of those ones where it’s a similar setup, this really volatile explosive action. It’s a feeding frenzy and on this one, I got caught on the wrong side of it. We then saw a couple of other stocks pop up. XRM was one of them. No, sorry. What was it? Now I can’t remember the name. But CETX was another one of them. It popped up. Didn’t hold the level. As you can see here, it came back down.
We had another one. What was the name of it? Actually, let me just check on the scanners because they were on the scans. We had IFON, we had CETX, we had KBSF, XRM. That was close. XRM. Or no, I was right. Okay yeah, so it popped up to 6.05, 6.20 and then dropped back down. KOSS, this one, same type of thing. Pop and drop. Not holding the levels very well. So when TENX first came on the scanners, I was like, “No, no, no. You’re not going to fool me. I’ve already been fooled once today. I’m just going to wait.” But it ended up rallying. It ended up being really strong. PTIE was another one. This one, I jumped on. Again, I got a little bit of profit on it, $282 but it just didn’t hold the levels.
So I said, “All right, you know what, I got to wait until a stock holds their levels,” and the first one to hold its levels was TENX. So this is where I was watching it, right here. I drew these trend lines. I said, “Okay, guys.” The high on this was 5.49. Right now it’s consolidating sideways. That was right at this point here. So I said, “Okay, well, you know what, I like this if it can break the top of this descending resistance line.” So I like it over basically 5.30 and so that’s where I got it. I got along TENX at 5.30. I tried to take 5,000 shares. I only filled, let’s see, 3,430 roughly, all right? So I got a partial fill. It pops up to a high here of, as you can see, all the way to 69. It then drops down to 40. I was a little nervous.
I thought, “Oh Jesus. It’s going to fake me out,” and so I ended up selling half at 54 and 59. Then I added back at 6.02 and 6.12. So once it started to show strength right through here, I added back. It squeezed up on this one minute micro pullback and went all the way up to 6.60 so that ended up being an awesome trade. I sold through at a high of 6.65 which was, let’s see, that was high of day was 6.69, so four cents off high of day right there. All right? So Ronald, the recap will be uploaded on YouTube this afternoon. We always upload the same day. So it will be uploaded in three hours.
All right. So then TENX pulls back here and I’m thinking, “Okay, I’ve got $1,400 profit on it. Can I get back in? Should I get back in?” Remember, I went from being down 800 on the day to up 1,400. So I’m just grateful to be in the green and above my daily goal. I’m no longer thinking about home runs and amazing days. I’m thinking about preserving capital. So at this point, we have this red candle and I’m saying, “Look guys, we had those three green candles in a row. It was a great setup.” Maybe I wasn’t as aggressive on it I could have been partly because I was already down 800 bucks before I took that trade. I just didn’t want to push it. This was a great setup and I made $1,400 on it. Now, it’s pulling back here but it feels a little extended.
So as we see these candles, all of a sudden here it squeezed from 6.40 up to 6.88. But then it comes back down to 6.35 and you can see how it’s just sort of it’s getting choppy. It grinds here a little bit under the whole dollar of seven. I was watching it, it broke seven. It hit 7.05 with 6.80 on the bid, a 25-cent spread. So again, I didn’t feel comfortable taking that trade but boom, it goes to 7.43 all the way up here to 7.79 and then up to 8.49 and boom, we topped out at 8.70 and now we’re down in this area. But curling back up. So again, 8.70 is the spot to watch. It’s interesting but it also feels like it’s a little extended. With these spreads, it feels like it’s going to be a little hard to trust.
So I think I’m going to do the smart thing. I’m going to take my profits and be done for the day and just be glad that we are seeing a stock squeeze up 75, 80%. Because that is what we love to see. That’s the type of momentum we love as day traders. Hopefully I’ll see some good opportunities tomorrow and we’ll be able to keep building up this … My cushion on the month of march.
All right. So that’s the game plan for me. Be back at it first thing tomorrow morning, 9:15 for pre-market analysis and hopefully we can finish off this week with another couple of good trades. All right, so I’ll see all of you guys back here first thing tomorrow 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.