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Hidden orders are an order option that some brokerages offer to mask the true size of an order.
While not actually ‘hidden’, the brokerage will use various tactics to minimize the potential impact of a hidden order on the market, generally through breaking the order up into smaller pieces and using advanced algorithms to place the smaller orders at optimal times.
Purpose of Hidden Orders
Institutional clients that make large orders may often make use of a hidden order facility with their brokerage to place stop or limit orders that have the potential to significantly impact the market activity for a security, though smaller traders may also use this facility when trading in thinly-traded securities.
The rise of algorithmic trading in particular has made the use of large single-block orders increasingly hazardous, as these algorithms can manipulate security prices in the short term to profit from the existence of large block trades on the order books.
Hidden orders can limit the potential hazards of placing large orders by hiding the true volume of demand from other traders.
Hidden Order Drawbacks
The main drawback of using hidden orders is that the full order may often go unfilled at the target price, forcing the trader to accept a lower volume or a less favorable price.
Most hidden orders are placed at the last second, after all the other brokerage’s orders, which means that the price may have already moved once the hidden order is ready to be filled.
Hidden orders can also carry additional fees or commissions that can reduce or negate any savings from using the hidden order in the first place.
Hidden Orders and Trading
Day traders are most likely to use hidden orders when trading in small cap equities or obscure commodities, where even modest order sizes can have an impact on the price action.
Many brokerages offer the facility to effectively create your own hidden orders by entering multiple orders at once with varying order sizes and priority, which avoids any added fees and potential undesirable outcomes that may occur from the brokerage executing the hidden order itself.
Generally speaking, day traders will be unable to notice when a hidden order is being executed, as the use of algorithms has made this process too fast for a human trader to track, though they may be able to do so through the use of their own algorithmic trading system.
While not truly ‘hidden’ in the strictest sense, hidden orders allow traders to mask the true size of their orders, which may protect them from one or more harmful consequences of placing large block orders in the market.
The rise of algorithmic trading has made large block orders particularly vulnerable to price manipulation by high-frequency traders, which has increased the demand for a hidden order facility from brokerages.
Day traders can often create their own hidden orders by inputting multiple smaller orders with varying priorities, which allows them to better control the outcome of their hidden order and avoid any added fees or commissions charged by their brokerage for executing hidden orders.
An order imbalance occurs when there are not enough buy or sell orders on the market to meet the demand for the opposite order type.
Order Imbalances in the Market
Order imbalances usually occur as a result of the release of important information, which drastically alters the market’s perception of a security and leads to a significant shift in the equilibrium price of the security.
As the price of the security moves from its old equilibrium level to its new one, order imbalances can occur that effectively stop trading in that security for their duration.
Order imbalances in large volume securities can last minutes, while order imbalances in small volume securities can last for one or more trading sessions.
Order imbalances are cleared when the price changes enough that previously reluctant buyers or sellers are now willing to trade at the new price or when market makers bring reserve securities into the market to add liquidity.
Persistent order imbalances may lead to an official halt in trading, which is usually triggered by the price of the security changing more than a set limit within a specified time period, which will differ across exchanges and asset classes.
Order Imbalances and Trading
Order imbalances represent the kind of trading opportunity that day traders are well-positioned to exploit.
Order imbalances often lead to panic buying and selling, where traders are willing to weather dramatic price shifts to enter or exit a position. This means that order imbalances are often followed by sharp corrections back toward the old price equilibrium point as the market finds its new long run equilibrium price level.
Order imbalances can also have a negative impact on a day trader’s position when they are unable to close out a winning trade as a result of a lack of counter-party.
While a day trader may experience an extremely profitable trade on paper, they are unable to close the position at the optimal price due to a lack of counter-parties willing to trade at this price.
Order imbalances and similar market phenomena are why it is so important for day traders to use limit and stop orders, and other advanced order types, instead of market orders for most or all of their trades.
A market order will seek out the earliest counter-party at any price, which may be benign during normal trading yet harmful during extreme market events, such as an order imbalance.
Limit and stop orders, as well as more advanced forms of these order types, will ensure that a trade is only executed under the most favorable conditions to the day trader.
Order imbalances represent the kind of market phenomena that can lead to significant gains or losses for day traders. The lack of willing counter-parties in an order imbalance means that the price of the affected security can swing wildly in the span of minutes or even seconds.
Not only should day traders be able to recognize the signs of a potential order imbalance, but they should always structure their trades to protect themselves from unexpected order imbalances and similar extreme market phenomena.
Right now I’m up about $22 thousand on the month, which is great, but it’s still only about a third of the way of my $50, $60 thousand target, so I need to keep the pedal to the metal. I’m hoping that we continue to see really good momentum this month, because June was very slow and then picked up at the end.
So right now, we’re coming kind of the like the fourth week of pretty hot momentum, and that could be around the time where the tide starts to shift. So I got to be on my toes and I got to be quick to adjust my share size if things do start to slow down, because I don’t want to dig myself a hole that I have to spend the rest of the month getting myself out of. So right now, it’s still the time to be really aggressive, but a little cautious. All right, so we’ll break down the trades from today in today’s Midday Market Recap.
What’s up, everyone? All right, so time for our Midday Market Recap. We’re going to break down the trades from today. Finishing the morning up $8795.47. You can see the PNL right there, upper left hand corner. What a day. I mean, this is living the dream. It’s crazy, this life as a trader.
I remember years ago, I would be happy if I made $800 in a day. And once I really got it, the only difference between making $80 a day, or making 800 a day or making 8 thousand a day, or even making 80 thousand a day ultimately is your share size. And the number of shares that you’re willing to take is going to be relative to your risk tolerance and relative to your account size.
So I’ve never met a trader, a profitable trader, who didn’t slowly increase shares, because you just realize, “Gosh, if in the last week, or in the last month, I made …” Last month I made $37 thousand. “So if I made $37 thousand in the last month trading with 5 thousand shares, what would have happened if I traded with 10 thousand shares? Would I have made $72 thousand or whatever?” And you start realizing that the answer is yes as long as as you increase shares, you continue to trade the same way. And that’s the only thing that some people run into issues with is they trade with big size and then emotions start to change the way they trade.
So you’ve got to increase your share size slowly as you build it up. Now, I want to remind you guys, this coming Thursday, 1:00 PM eastern, July 12th, we’re hosting an encore workshop, and it is going to be awesome. I’m going to be teaching you guys my three secrets for trading success, how I made $87 hundred today, how I’ve made, well, at this point, let’s see, from a $583 account I have made $672 thousand of profit in the last, well, 18 months. That’s crazy.
Think about where you could be 18 months from now if you’ve got $600 in your pocket. Because I started with less than 600 in that account, and now I’ve got $672 thousand of profit. And it’s thanks to trading this one strategy that I’m going to be teaching in our workshop this coming Thursday.
So I want you guys to register. Click right now in the description. You can register. It’s totally free but seats are limited. We’re going to limit seats because the last time we hosted this workshop in June, we had so many people attend that we ended up blowing out the servers and it was … It just created a major issue. So lot of people missed it, and that’s why we’re hosting this encore here on Thursday. All right, so that’s coming up on Thursday, but why don’t we go ahead and break down the stocks from this morning?
All right, so let’s see, I’m going to put up my screen share. All right, there we go. Okay, so as you can see, $8795.47. What a morning. Now, this is actually … I was actually up $9900. I’m down 11 hundred, versus my high watermark of the day, just because I kept pushing, I kept going for the next trade, going for the next trade, and I ended up finally taking a loss. But today was a great day, and it’s 11:15, so I’ve been trading for, well, I only traded for about an hour and a half.
So $8700 in an hour and a half. Not bad. Now, I’m averaging right now actually $2716 per day for every day this year. Every trading day this year, so that doesn’t include weekends. But every trading day this year, I’ve been averaging $2700 per day. So today, I’m above the average, which is awesome.
Yesterday, I was a little below the average with $2300. So I always like to be above the average if I can, because that helps bring my average up. So I’m going to write this in my calendar, all right, so July 10th here, $8795.47. It’s the 124th day of the year, and that means right now I’m crossing $336 thousand of profit on the year. Not bad. 327 thousand to go.
So I’m just over the halfway mark of my profit target for this year. So I still have $327 thousand to go to hit my profit target for 2018, which is a pretty aggressive target, I’m not going to lie. But I think it can be done. I need to average about $3 thousand per day for the rest of the year to hit the goal, which means I am a little bit behind right now, averaging only $27 hundred a day.
So whether I hit that $670 thousand mark or not, I’m not sure. But today is another good step in the direction. So here’s the stocks I traded today. Two, four, six, seven stocks, green on five out of seven. One big winner and the rest kind of small stuff, right? So, how did this morning start?
Well, as we’ll talk about in the workshop later this week, this morning started just like any other morning. It starts by looking at this scanner right here, my secret weapon. This is my holy grail for finding stocks to trade. So this morning, I ran the scan, and this is showing me all the stocks that they’re going to open more than 5% versus yesterday’s close.
So opening more than 5% is a sign of strength. I look at the ones that are really the top 10 of this list. So from here up. Now, SEED, S-E-E-D, this was actually gapping up 897%. However, when you look at the chart, what you’ll realize is that this was a reverse split. So the stock did a reverse split and it was not actually opening higher.
So this is where yesterday, I don’t know, it’s a 10 to 1 reverse split. So yesterday you would have been holding 10 thousand shares at 70 cents, and now today, it opens at $7, but you’re holding only a thousand shares. So it’s just a reverse split, the amount of shares outstanding changes, but the amount of shares, and the amount of shares you’re holding changes, but your actual value of the position doesn’t change.
So this is actually sort of an anomaly. It shouldn’t really be considered a gap. All right, so the first real gapper on the list was BLIN. BLIN. So we pull this one up and you’ll see on my PNL that I did trade it. I made $395 on this stock. All right, so pre-market, it had already moved up 129%, which is crazy, from $1.50, this nice pre-market flag. It breaks to the upside.
Another flag here during the end of pre-market. And once the bell rang, I was watching this to jump in. I said, “Guys, I’m going to be watching this for a break of $3.” Okay, so here’s $3. Here’s the open price. We open at 290 and we surge up and we tap a high of 309.
So on this one, I jumped in at 295 and 296, right here, anticipating the break of the whole dollar. We pop up and we hit 309 and then we drop back down all the way to 265, and I sold I think as it was coming back down. And I sold at 98. So I actually only made about $150 on that very first trade of BLIN. It wasn’t a very big winner.
But I got back in it as it started to surge back up. You can see it squeezed up here to a high of 324, pulled back, and then popped up to 335. So I ended up getting back in it, let me just scroll down here. I got back in at 315, right here, and sold at 322. And then I want to say I added at 335. Yeah, I did. And I stopped out at 333.
So that didn’t end up being the biggest winner. Only about $400 of profit. But I found this stock right off the watch list this morning, so I knew that it was going to be in play. I knew it had potential. It was just a matter of finding the exact entry. Now, the next stock down, OCX, no trades on that. It’s 28 million share float, a little on the high side.
It also trades in five cent increments, and it’s not a former runner. Next one down, RSL. Now, this one I also traded … RSLS. I also traded this one out of the gates. I bought it at about the same time as I bought BLIN. Buying at the same price also, 295. Again, anticipating the break over the half dollar.
This one, unfortunately, very weak today. However, it did give a little opportunity here as it popped up first to 305, which gave me a … I guess from three dollars to three and three. Yeah, so that was a small winner, only about 350 bucks. And then, I got back in it as it surged. It popped up, pulled back.
As it surged back up here, I got back in and rode that momentum up to a high of 320. But it didn’t hold that level and then it started to sell off. But in total, I made about $422. So on these two trades, right off the scanners, it’s about an $800 day. Right, $800, not bad. I mean that, $800 a day keeps the job away. Absolutely. That is a great year if you’re making $800 a day.
And doing that, let’s see. So by 931, I was already up $800. 932. So … No, 931. So a minute into the day, I’m already up 800 bucks trading these two stocks right off the scanners. All right, so now we also on the scanners had DCAR right here, which I was watching because this looked a lot like STAF yesterday.
Remember yesterday, S-T-A-F had this pre-market flag that looked kind of like this. It had popped up, it pulled back. I’ll just pull up another chart here to show you. We were looking at STAF for a couple different reasons today. Let’s see, so let’s go back to yesterday morning. Do, do, do, do.
All right, so this was the pre-market chart on STAF yesterday. Pretty similar, right? They both look kind of the same, and when you have one stock that’s really strong yesterday, like STAF was, this ended up hitting a high of six dollars, then you look, when you see another stock with a very similar set up, you’re a little more likely to jump on it.
All right, so I see DCAR looks similar, and on this one I jumped in as it started to squeeze up here. You can see it popped up to a high of $1.83. It hit the scanners and everything, but then it didn’t hold those levels. It popped up DCAR 160, 177, maybe that was it. And it just didn’t hold that level.
So I got in, 75 hundred shares, captured some profit. Total profit on this was about $600. So now I’m up $1400 on the day. Not bad. Getting a little bit more in the green. So continuing to make progress. Next trade, let’s see, so that was DCAR there. And then, I had a trade on back in RSLS. That was a small win. And then I had SAEX.
This one hits the scanners and initially, I wasn’t totally … Where was it. Right here. It hits the scanners at 220. Initially, I wasn’t sure, but it hits a high of 244. And then it pulls back, and so I’m like, “All right.” Where was this? So it hits a high of 244 and I’m like, “All right, well at this point, this thing is up 56% today.” I mean, it’s actually up a lot. So I’m going to watch for a one minute micro pull back which was right here.
So as it curls back up, it pulls back here, and as it curls back up, I buy right in here, and then it hits a high of 47, and it drops. And so on this one, I ended up losing $266, which was my worst trade of the day. But considering I had, let’s see, 75 hundred shares, it’s really not that bad.
I was able to start getting out quickly once I realized there was some resistance up here. And I can see resistance when you see a lot of buying but the price isn’t breaking. So I was like, “All right, I’m just going to start getting out of this and unwinding this position.” Which I did, and then that was it.
So lost 266 bucks. Whatever. Not that big of a deal. All right, next trade on the list here, GBR. So this one, I’m iffy on GBR. It had this crazy move last week. I made some … I mean, I made like $10 thousand on it. I made some good money on it, but I had this horrible red day.
Well, today from a technical perspective was the first day it was making a new high. After four red days in a row, today it started to go green. And sometimes, you see buyers jump in as it starts to turn around. So this, so right here, as it started to curl up over … What was it? Four dollars, $4.20, that’s where I was like, “Okay, I’m going to take a stab.”
So I got in at 412 and I was a little more aggressive on this because at this point, so now in taking 10 thousand shares. At this point, I’m already up over a thousand on the day, so I’m feeling a little more confident, and I’m thinking, “All right, this one’s taking off.” I mean, it clearly just squeezed from $3.40 to $4, so I’m going to step it up a little bit here and see if this goes into a halt. Maybe we get a short squeeze.
Anyone who’s been short for three or four days is going to cover, and the thing will go to five dollars. It’s not impossible for this type of set up to get that type of break out. It’s a technical set up. Even without news, this is a technical set up. It’s the first daily candle to make a new high.
So I jump in. It hits a high of 440. But it doesn’t end up getting halted and then it drops down. And although this you can say is a one minute pull back, it had pulled back too much for me because it came all the way down to 395. So then I was thinking, “Okay, well in this area here, maybe it’ll consolidate under 420 and maybe I could get in here.” But then it broke the low of this level, and so now it’s just stair stepping down. Down, down, down. So made some money on that, but nothing super exciting.
All right, next one is CLWT. This one is the most disappointing one of the day. And I’ll say before I show that one, I was a little disappointed when I say CHCI hit the scanners, pop up, and immediately get slammed back down. That kind of made me a little nervous. SAEX did the same thing. I knew RSLS wasn’t holding up very well. So I started thinking, “I got to be a little careful today because we’re seeing a number of stocks popping up and fading.” So I need to see something really show some strength, and CLWT I was probably too aggressive on it given what we had just seen.
But it hits the scanners and I knew that this is a former runner because this is a stock that in one day went from a low of 230, $2.30, to a high of $8.45. 400% in one day, that’s crazy. So knowing that this is a former runner with this history of making big moves when it hit the scanners, I was willing to jump in pretty quickly. So let’s see, where is it. It hits the scanners at 470 right here, and I jumped in at $5. Now, where I got in, I only got a partial fill. And I tried to add, but my orders didn’t get filled. And then it ended up being halted on a circuit breaker. So it’s halted at 515. It resumes and taps a high of 570, and I sold at 550. Made 850 bucks. And then I added back at 550 and 568 thinking that this was a one minute micro pullback right here and that it was going to go higher.
But sort of like SAEX, that did not happen. Well, it hit a high of 590, and I want to say I sold some. No, I guess I sold at 70. I sold half of it and break even basically. And then, it drops all the way down here to 480, which is disappointing. Nobody likes to see that. And so I stopped out at 510, and gave back my $850 of profit from the first trade. So I went from being up about a thousand dollars on this one to down a hundred. And that was disappointing. So at that point, I had gone to be up $3 thousand on the day, to up only about 18 hundred or something like that, 19 hundred.
Which again, $19 hundred is still a great day, but of course, $3 thousand is better. So then, MTSL hits the scanners, and this was the last one. So MTSL hits the scans right here at $1.67, $1.70, and it gets halted. Now, I don’t get in before the halt. I see it pop up, hit the scanner and get halted. And I’m like, “Okay, well let’s just see if this stock shows some strength.” So it was halted right here at $1.84. Some of you guys I bet did get in before it got halted, because you were even a little faster than me. Now one of the things that’s cool is that you guys all have access, Warrior Pro students, to these same exact scanners as I have.
So we’re seeing these stocks in real time at the same time. I don’t have any advantage. I’m not seeing them before you. You’re seeing them at the same time as me. And you may be on that trade more focused or more willing to jump, and you may get in it sooner and get in it faster. So on this one, some of you guys probably got in at $1.80, $1.84. Whatever, I didn’t get in there. It was halted, but as it resumes, I jumped in for the break of $2. So right here. I get in with 7500 shares as it comes out of the halt. And it squeezes up to a high of 213. So I make a little money, I sell some at 208, sell some at 206, whatever.
I then add back at 206, because now I’m like, “Okay, it’s actually holding up pretty well. And right here it’s doing a one minute micro pullback.” So on this one I added, and on this one it worked. It pops up to 20, and then up to a high of 27. And so I’m like, “All right, very nice, very nice.” So I made some money there. And then you can see here, it starts to pull back, and this is doing another one minute pullback. And then suddenly it drops here down to a low of 189. And I’m thinking, “Oh boy, down to 189. That’s not what I like to see.” And I sold the rest of it at 203. Oh, this was a little scalp here, whatever. Couple scalps. Do, do, do, do. Let me look for where … Okay, so this is where things start to get interesting.
So on MTSL, at this point I’m only up like a couple hundred bucks. I’m up 2 thousand something on the day, but not a big win on MTSL, just a little bit of profit. All right, so then you can see here it’s going sideways, and it drops down to 189 and I’m like, “All right, another one that’s dead. This one’s just going to probably fade from here or whatever. It’s done.” And then, all of the sudden, it surges back up and goes through the highs. So I keep high of day on watch. And as it started to curl up, I was like, “Okay, I don’t understand why that just happened, but this this is going, and I’m jumping in.”
So I jump in here with 10 thousand … 75 hundred shares at 28 and 29. So I start with 75 hundred shares. Once up up $750. I add another 25 hundred shares, so now I’ve got 10 thousand. And then I added another 25 hundred and another 25 hundred, so now I have 15 thousand shares right here. And I’m like, “This thing just clearly is taking off.” It’s showing incredible strength. And so it goes up to 61 and I add again at the half dollar, and again at 55, and again at 60. So now, I have 20 thousand shares. So basically, all day I traded with a max of 10 thousand shares, and then all of the sudden I see this opportunity, I step up to the plate, and I take 20 thousand shares.
So now I’ve got 20 thousand shares of this stock. Or actually, I have 18 thousand as of right here, and it gets halted on another circuit breaker. So on this one candle, just in one minute, it had 216 thousand shares of volume. So it had a lot of volume for sure, and I jumped in with 20 thousand shares, or 18 thousand. It’s then halted. It’s halted and it resumes higher and squeezes up to a high of 85. So as it resumes, I add another 25 hundred at 60, and then I sell half at 77, I sell another quarter at 77. So now, I’ve sold 15 thousand shares from basically 37 to 77, which is awesome. And then I sell a little bit more at 74. And then it dips down. As it curls back up, I add back at 73 and 77. I then sell at 83, 82. And I add back at 80 and I add at 90 and then I stopped out at 86 and I stopped out of the rest down here at 84 and at 60.
So I was up a total of $10 thousand on the day. And then, on this little drop right here, I gave back about a thousand bucks. So today’s a day where I’m finishing up $8795 and I know I could have done a little bit better, because I gave back a little profit there, I gave back a little profit on CLWT. So that’s the really cool thing with trading is that even when you have really good days, you know you can do better. And that’s why I know that there will be a day at some point where I have an $80 thousand day. Today was an $87 hundred day. That was good. The best day I’ve ever had so far, $40 thousand in one day. So today’s not even my best day. Today is a good day and I’m very grateful and very thankful that it’s a good day. But this isn’t a record breaker. This isn’t a day where I’m going to do anything special tonight or celebrate.
This is just a decent day of trading. That really is all it is. 87 hundred, it’s a decent day. $40 thousand is a great day. $50 thousand would be a great day. If I have an $80 thousand or a $100 thousand day, that will be an amazing day. That will make me really exciting. And that’s my goal eventually to have a $100 thousand day. I just think that would be a really amazing thing to have happen.
But right now, the best day’s 40 thousand, and on that day, we had incredible momentum in the market. I mean, it was incredible. We were seeing multiple stocks do this. And so I was buying one, and then the next, and the next, and the next, and the next. And I traded like 12 stocks that day and I made between 5 thousand and 20 thousand on each one of those stocks. I mean it was just back to back to back to back. And boom, that’s where I really locked up some profit.
So anyways, today’s a good day. And considering it’s July, it is pretty great, because the reality is summer time is often a little bit slower. It’s not uncommon that things are a little slower in the summer. This is a good time for us to study and be in the classes and just focus and discipline. So having a couple of big wins during the summer is great.
I made $8 thousand last Monday. I made 7700 last Thursday, and I’m up 8700 today. So today right now is the best day of the month, which is great. And I’m feeling good about this momentum that we’re seeing. The market is hot. So this is definitely the time for me to put the pedal to the metal and be aggressive and try to capitalize as much as I can because inevitably, we will have days, whether it’s later this week or next week or next month, where the market starts to slow down a little bit.
And where I’ll have to make due with making only a thousand dollars a day. And that’s just the way it goes. June for me was really slow to start, and then in the last two weeks, I made like $55 thousand. So I pulled it together for the month of June, but it was a really slow start and I lost some money in the first couple weeks.
Here, in July, I’m having a pretty strong start. Made 12 thousand last week and I’m up 10 thousand or 11 thousand this week. So that’s good. My goal pretty much is about 10 thousand to 15 thousand a week. I really need to be averaging 15 thousand a week in order..
What is Treasury stock? A company’s treasury stock is any shares that have been previously issued by the company that are now held by the company itself, usually through share buybacks on the open market or through a structured repurchase scheme.
Treasury Stock Example
Suppose that a new company creates and publicly issues 1,000 shares at its inception at $10 per share.
In this case, the entirety of a company’s shares will be held by the public, and the treasury stock of the company will be 0.
The company then distributes some of its earnings as dividends and invests the rest in development.
After a decade, the company decides to repurchase 100 of its 1,000 outstanding shares using profits instead of investing in further development, as it believes its markets are now saturated with little room for future growth.
The treasury stock of the company is now 100 and there are 900 publicly-held shares of the company.
While the value of existing shares may drop as a result of the reduced potential for future earnings growth from a reduction in development investment, they may also rise as a result of all future earnings being distributed over a smaller pool of publicly-held shares.
After another year the company decides to retire the 100 shares held in its treasury stock, reducing the treasury stock of the company to 0, and leaving the number of publicly-held shares unchanged.
While this has no effect on dividends, the price of the shares may rise as a result of the decreased likelihood of future share issuance’s that would dilute the value of future earnings distributions.
Treasury Stock and the Balance Sheet
Treasury stock is held on the company books as equity.
Shares held as treasury stock do not receive dividends, which can have a pronounced effect on company valuation. The smaller the number of shares that are privately held, the greater the amount of earnings that can be distributed to each share.
Treasury stock also loses its voting rights, which means that company management cannot use shares held by the company to influence company policy at a board level or appoint directors to the board. This is an extremely important factor in how companies are managed.
Finally, treasury stock held on the balance sheet can be re-issued in the future without the need for any additional legal restructuring.
The shares held as treasury stock can be resold directly on the market or distributed through some other means without the complex process involved in the creation and issuance of new shares.
Shares held as treasury stock can also be formally retired, which means that they lose all value and legal significance, and effectively cease to exist.
Trading and Treasury Stock
Treasury stock is important to company valuation in a number of different ways. Day traders who incorporate fundamental analysis into their strategies, particularly research based on balance sheets, will often encounter treasury stock in the process.
Not only can treasury stock influence the long term price of a company’s shares, it can also influence their value in the short term when a company uses their treasury stock in one or more ways.
Likely the greatest influence of treasury stock on the value of a company’s shares is the impact on the company earnings on dividends.
Any shares that are taken out of public circulation and held as treasury stock no longer receive dividend payments, which shrinks the pool of shares that must divide any earnings disbursements.
Companies that perform share buybacks often see a sharp increase in the value of their shares as the expected value of future dividends rise.
However, the converse effect is that a large treasury stock may make some investors wary, as these shares can be quickly reissued to the public without the lengthy and complex process involved in issuing new shares, which can lead to a dramatic drop in the value of the shares that are currently held by the public.
A company’s treasury stock will be important to day traders who are experienced in balance sheet analysis.
These sorts of corporate finance structuring issues, such as a company’s treasury stock, can often have dramatic impacts on a company’s share and bond prices, so day traders with experience in balance sheet analysis are well-positioned to profit from changes in a company’s treasury stock.
Shareholders, also known as stakeholders, are any individual or institution that holds one or more shares in a company.
Shareholders are the owners of the company for which they hold shares, and these shares confer certain rights and privileges to the shareholders, as well as a chance of return on equity.
Example of Shareholders
Suppose that a day trader purchases 100 shares of common stock in Company A. For as long as these shares are in the brokerage account of the day trader, they are a shareholder in Company A and are afforded all the rights and privileges for the shares that they own.
When the day traders sells the shares of Company A, they are no longer a shareholder in this company and lose all rights and privileges associated with the ownership of these shares.
There are two general types of shareholders: one for preferred shares and one for common stock.
Common stock represents the every day shares that are traded openly on most exchanges, and which are quoted as the representative shares when the company’s shares are referenced. Common stock confers voting rights and dividends, as well as various other potential rights and privileges.
The institution of shareholders is at the core of modern capitalism.
The distributed ownership of public companies to a large number of unrelated and profit-oriented shareholders means that modern companies must compete to maximize profits, which is in contrast to the institutional bloating and self-aggrandizement of executives that is seen in many companies in less developed nations.
Shareholders act as a check on the potentially sub-optimal behaviors of company management and executives, which leads to the greatest possible social welfare produced by the company.
Even companies that are privately owned must compete with these public companies, which forces them to adopt some or all of the most efficient practices in the market produced by the widespread use of the shareholder institution.
There is a growing trend of dual-class share ownership in contemporary markets, particularly in the technology sector, which limits the traditional powers of shareholders and concentrates decision-making in the hands of one or a small number of executives, usually the founder or founders of the company.
This trend is young enough that its full impact is still unknown, but it has many critics among financial professionals who believe that it allows executives too much capacity to satisfy personal desires instead of concentrating on profit-maximization.
Shareholders and Trading
Day traders can create profitable positions by discovering who the large institutional investors in certain companies are and forecasting their reactions to certain events.
Many institutional investors are constrained by publicly-available trading strategies and known beliefs and ethos, which makes them potentially predictable in certain scenarios.
Shareholders are the cornerstone of modern capitalism.
Day traders should follow the developments in the new trend of dual-class ownership of public companies, as this phenomenon has the potential to dramatically alter the operation of companies and markets in advanced capitalist economies.
A digital asset is any information that is stored digitally and has value. This can include, but is not limited to, videos, software, data and graphics.
Issues surrounding the legality of the ownership and use of digital assets have grown exponentially alongside the importance of computing and the Internet.
In the financial world, issues with digital assets are particularly important when discussing the technology sector and blockchain-related phenomena, such as cryptocurrencies.
Defining Digital Assets
Many of the issues surrounding digital asset management arise from the difficulty in creating a strict definition of what is and is not a digital asset.
At the core of various legal definitions of digital assets are the twin concepts of ‘value’ and ‘digital storage’.
Foremost a digital asset must have some form of exchange value, such as the ability to generate revenue or capital value. Personal information or images, for example, may have a high personal value, but are not marketable assets in the strict legal sense.
Digital assets must also be stored in a digital format to be considered to fall under strict legal definitions. This means that the information must be formatted so that it can be transfered digitally, through ‘downloading’ and ‘uploading’, and not just in a physical form, on a DVD or CD for example.
It is this twin state of being both valuable as an asset and easily transferable in digital form that leads to the many issues surrounding the use and ownership of digital assets.
Digital Assets in Trading
Day traders will most often deal with the issues surrounding the use and ownership of their digital assets holdings when they are valuing companies that deal heavily in digital technology.
Many of the world’s most valuable technology companies are ultimately based on relatively simple software.
Facebook, for example, is based on software that allows users to present images and information according to a shared format. This basic information-sharing software is then supported by vast systems for the collecting and sorting of user data, which is used to generate revenue through advertising.
The issues arise when determining how much of the information that is generated by Facebook is owned by them, the end user or the public, and to what degree competitors can emulate Facebook’s revenue-generating digital information.
Other companies can, and have, copied the basic concept of Facebook, which is not overly complicated. However, if a rival too closely copies the formatting of Facebok’s digital software, they could be successfully sued.
Similarly, the information that Facebook collects from its end users may not all be used to generate revenues, and we have witnessed recent pushbacks against Facebook’s practices when it comes to the storage and use of end user data.
All of these factors have and will continue to influence the value of Facebook in the market, as it will other companies that are heavily involved in digital information.
The issues surrounding digital assets are also important when considering the value of various cryptocurrencies and blockchain-related companies.
Most cryptocurrencies and blockchain ventures are based on the decentralized collection and dissemination of information, so day traders must consider how the digital assets involved are purported to create revenues or value and how the legal landscape with respect to these digital assets will change over time.
Valuing digital assets and attempting to foresee the future course of technology and related legal issues can be extremely challenging, and the issues surrounding the ownership and use of digital assets are only set to grow in the future as the global economy becomes increasingly interconnected and digitized.
While many day traders could quite easily go through their entire professional careers without needing to deal with the issues surrounding the use and ownership of digital assets, those day traders who deal in the technology sector or blockchain-related phenomena are bound to face one or more of these issues.
The value of digital assets can change dramatically based on small alterations to relevant legal codes or regulations, as well as shifts in the underlying technology. Day traders who have a grasp of the nuances involved in the valuing of digital assets are well-placed to profit from the often volatile technology and cryptocurrency sectors.
As a leading mobile investing app, Ed Robinson (Co-founder and President) and Brandon Krieg (Co-founder and CEO) founded Stash in 2015. Both co-founders started the company with a mission of simplifying investing. Today, Stash Invest has extended its mission to include access to financial education, services, and technology designed to help the average user secure their financial future.
As a micro saving mobile solution, Stash is geared towards helping users’ select flexible investment options that meet their goals. Designed for new savers, hands-on investors, goal-oriented investors and retirement savers, Stash requires no minimum balance but you are required to deposit a minimum of $5 or more to begin investing.
Operating under the mantra “we believe in financial transparency, opportunity, diversity, access, education, and literacy”, Stash guides investors through the process of building a wealthy and healthy portfolio.
In our Stash Invest App review, you will learn more about the company, services offered, features, fees and why it’s the perfect mobile investing solution for you.
Stash Invest App Features and Services
As said earlier, Stash is a mobile investing solution. As such, users are required to download the official app from Apple App Store and Google Play Store. To get started, simply open Stash website and click “Sign Up” on the upper right corner.
You will be presented with an electronic registration form. Enter the following details to proceed.
Click “Create Account” and proceed with the rest of the steps which include:
Creating your investor profile – you will be required to answer a couple of questions. These questions are designed to help determine your risk tolerance.
Provide your personal information
Select your investment – Stash Invest will display investment options that match your risk tolerance. Click on any of the options to learn more.
Funding your account – link the Stash Invest App with your bank account to fund it and start investing.
Complete registration and start investing.
Stash is not just an investment mobile app. It is an investment solution that offers access to tools designed to help you become a successful investor. With Stash, you can invest in what matters to you.
The staff at Stash hand-picks investments and designs them into investing themes which are straightforward and approachable. With Stash, you will never be alone. Stash Coach is available to guide you as you make your investment choices.
As an investor, you have the choice of selecting investments from the environment to innovation. You can invest in stocks and ETFs based on trading liquidity, risk profile and expense ratio. With Stash, you don’t need a deep wallet. Just start with $5 and increase the amount as your portfolio grows.
Want to view the potential of your budget? Stash has designed an intuitive calculator based on a 5% average growth rate per year. Just move the slide across – from $5 to $100 – and watch the graph below as it displays the growth potential depending with the amount invested.
The following are investment options offered by Stash.
i. The Activist
Designed for the investor with a cause, investment options available include holdings in companies that help to create a bright future. Simply put, you will be investing in companies that produce wind, solar and other renewable energy solutions. Such companies include Electric Power Development Co, Xinyi Solar Holding’s Ltd, Vesta Wind Systems and Meridian Energy Ltd to name just a few.
ii. The Techie
Want to change the world? You can now invest in upcoming tech companies developing solutions that solve both local and global problems. In addition, you will also invest in tech companies that improve how we interact and communicate with each other across borders. A few of the companies that you will invest in include Apple Inc, Facebook Inc, Google, Cisco Systems and Microsoft.
iii. The Globetrotter
This type of investment focuses on global industries. Simply put, you will invest in companies that fuel our fun from travel and leisure to entertainment and gaming. A few of the companies you will invest in under this category include Delta Airlines, Las Vegas Sands Corp, CBS Corp, Twenty-First Century Fox and MGM Resorts International.
iv. The Trendsetter
If you are a social media mania, then you can finally have a slice of social media giants. Under this category, you will invest in companies that fuel our entertainment and communication. A few of the companies include Tencent Holdings, Twitter, Alphabet, Pandora and Facebook among others.
If you want to ensure your future is financially secure, you can now do so using Stash. With the mobile app, you can save for retirement and on your taxes. For customers under 25, Stash does not charge any fees. As you already know, retirement accounts are some of the greatest investment opportunities.
At the time of writing, Stash offers two retirement accounts namely
By selecting any of the accounts above, you can enjoy immense tax benefits and savings not only when operating the account but even when withdrawing funds. To get started, simply sign up with Stash Retire. From your account, select the right retirement account that will help you maximize your savings.
This product is designed to replace traditional banks. In the belief that traditional banks are treating their customers like ATMs, Stash Banking wants to change this practice. The service is designed to help people spend wisely. In addition, Stash wants to help its users save and invest for the long run all via one mobile app.
Simply put, Stash Banking is the best solution designed for users who want to secure their financial future. What you ought to know is that Stash Cash Management LLC which is not a depository institution or bank licensed in any jurisdiction provides Stash Banking. It is wholly owned by Stash Financial which is an affiliate of Stash Investments LLC.
Learning is the key to making wise financial and investment decisions. To help you with this, Stash has made Stash Learn accessible to its users. To get started, click on “Learn” from the homepage. From there, you will be redirected to the learning portal.
Stash provides a wide range of articles designed to help you learn about different types of investment options, how to invest and even how to use Stash to secure your financial future.
Sample the following titles
How to Invest in ETFs with Stash
Stash Invest vs. Stash Retire, Which Account is Right for You?
To ensure that you are able to locate the right learning resource, Stash has divided Stash Learn according to the following categories:
Stash Invest App
Now that you have created your account with Stash, you can access it on the move plus your portfolio and other investment options. This is possible with Stash Invest App. Compatible with Android and iOS devices, the Stash Invest app allows you to view your Balance, Potential and Investment Ideas. In addition, it also allows you to access other services – Stash Learn, Stash Banking and Stash Retire among others.
The best thing about the Stash Invest App is that it has an intuitive and easy to interface that you will surely love.
All accounts at Stash with an average daily balance of $1 or more but less than $5,000 are charged $1/month for Stash Invest and $2/month for Stash Retire. For accounts with an average daily balance of $5,000 or more, Stash charges $0.25/year or 0.021%/month. For accounts with an average daily balance of $1 or less, no charge will be deducted.
Deposits and withdrawals are free. When it comes to Stash Retire, users have the option of selecting between Traditional IRA and Roth IRA. Below are fees charged by Stash for the above retirement packages.
Traditional IRA – $2/month equivalent to 0.25% for accounts with over $5,000. Maximum contribution of $5,500/year ($6,500 if user is aged 50 years +).
Roth IRA – $2/month equivalent to 0.25% for accounts over $5,000. Maximum contribution of $5,500/year ($6,500 if age 50 years+).
Stash Invest is a great mobile investment and financial solution for beginners and goal oriented investors. Thanks to their investment options, you can build your portfolio depending on your goals. In addition, you can learn more about investment options available to you finally making the right decisions when selecting financial instruments for your portfolio.
Stash does fall short in certain areas. For starters, subscription fees are charged to the users’ bank account, not from their investment portfolio. Secondly, the fees are quite high especially for accounts with lower balances.
Despite the shortcomings, Stash is a promising mobile investment solution that will help you grow your investment portfolio.
What’s up, everyone? All right, so here we are Monday morning, first full week of July without a holiday, and I’m finishing the day up $2375. So green is good. I’m happy with that, but when we break down the stocks, the trade today, you’ll see that I started the day with two back-to-back losses that nearly put me below my max loss. I mean, I was just shy of my max loss.
Stairway To Heaven +$2,375! | Ross' Trade Recap - YouTube
Fortunately, I was able to start digging myself out of the hole. One small trade, another small trade, and I made a little here, a little there, a little there, and next thing you know, I’m breaking through $2000 of profit. From nearly the max loss to above the daily goal, which is awesome.
So I feel good about that, but definitely a little bit of a caution flag, just to be careful because Friday was a little bit of a close call and then here again on Monday, a little bit of a close call. So tomorrow, Tuesday, I’m gonna start with smaller share size. So if I do take losses right out of the gates, at least they hopefully won’t put me below my max loss or really close to it. I don’t wanna have that big hole that I have to spend the rest of the morning digging myself out of.
Today was a record in terms of the number of trades I took. Usually, once I hit a good amount of profit, I walk away. I’m done for the day. But today, trying to get myself out of the hole, I kept trading a little more than I normally would, and that’s another area where you have to be a little careful, because when you overtrade, you can reduce the quality threshold of what you’re willing to trade and then inevitably your accuracy can go down.
So a little bit of a close call today, but I climbed back up that stairway of heaven, and now, $2300 of profit. Green is good. So we’re gonna break it down in today’s Mid Day Market Recap.
What’s up, everyone? All right, so we’re gonna go over the trades from this morning, finishing the day up $2375.50. Green is good. Now, today was actually not an easy day. I started going deep into the red, and then I had to dig myself out of the hole. Now, fortunately today I didn’t go below my max loss, so I was still within a range where I could dig myself out of the hole, which is really good.
So the big winner today was on STAF. Right now it’s up 229%, and when I first saw it, it was at two dollars. It’s up right now $4.50. I had my best exit right around, I don’t know, $4.80 or so. It hit a high of I think $4.87, and I’m up just on that stock alone, $5759, which is crazy.
So definitely loving the momentum. We still have it in the market. It’s just been a little bit choppy. It’s kinda finding which stock is gonna start moving and really take off. It’s kinda like, I don’t know. We start to see things take off and it’s like, “Oh, looks like this is the next stock that’s gonna go,” and then it fades all the way back down. So when that happens, obviously I get stopped down. I take a loss. It’s really frustrating.
What’s up, everyone? I see you guys logging in on Facebook. Again, so you guys, any questions, any comments, leave them below. I’ll come back through and answer them later. Those of you watching YouTube later this afternoon, I’ll come back and answer any questions and comments you guys have as well. Also, reminder.
This coming Thursday at 1:00 pm eastern, we’re hosting an encore webinar. We had our webinar last week. It was a great turnout, but we had a lot of people that missed it or who got into the webinar and then ended up having audio issues and stuff like that. So, we’re hosting an encore this coming Thursday, 1:00 pm eastern. Book your calendar. Click to register. The link is right here in the description on Facebook. I’ll put it in the description on YouTube as well.
All right, so with that, let’s jump in and start breaking down the stocks that I traded this morning. All right, so I’m gonna shrink that like that. All right, and go like that. All right. So let me drag up my broker window. All right, so here we are, finishing the morning up $2375.50. Green is good, and you can see the warning on my account right here.
Global trading set to all trading allowed. My PNL is greater than $-4990. If I’m down more than $5000 on the day, I cannot take another trade. I called my broker and I asked him to set that up for me, because last month in June I had taken a pretty good size loss, and it was a day where I was already down more than 5000, and I should have just stopped trading.
And I kept trading. I kept pushing my luck and I ended up finishing the day down $16,000 which was really disappointing. It was either my second or third worst day ever, and I know I can do better than that. I should be a better trader not to let myself go that far in the red, but it helps to automate some of that stuff.
So now I’ve automated it with my broker. If I’m down more than $5000, they won’t let me take new trades. So today, I went into the red. I was actually down $4600 on my first couple trades. First trade was on BNTC. I lost three grand. Second trade, SSY. I lost $1500. So on those two trades, I’m down $4600. So I was like, $300 off my max loss before finally bouncing back. Let’s look at the ones that I traded.
So, BNTC. All right, so on this one, this was a gapper, and initially it was our second leading gapper. Every single day starts the same way. Those of you who have attended a webinar in the past, you know that we talk about how to use these scanners, and so just to kind of go over it in summary, I look at the scan around 9:15 am, and this shows me all the stocks that are gonna open more than 5% versus yesterday’s close, which indicates some strong momentum has already begun. I usually look at the top ten or so. Leading gapper was MBVX. Already gapping up 222% with news and the second was BNTC gapping up 85%, also with news.
So BNTC had a pre-market high of 5.87, and I was watching it because I thought if it broke back over five, we might have a chance of kind of filling this gap up towards 5.87. So the bell rings and it starts surging up, and I ended up jumping in. And I took so many trades today, but I ended up jumping in this one at … Let’s see. I got in at four … Let me go back here. I got in this one at 4.79, 4.80. 4.80, and I added it 4.90. I thought this thing was gonna break five dollars. I was being aggressive. 10,000 shares. I was thinking it would break five, squeeze up to 5.20, maybe 5.50. It would be a good winner. And then, look at what happened. A minute later, it’s all the way back down here at 4.13.
So this was what we would call a pretty sharp rejection of the whole dollar. It just couldn’t break that level and it came back down. So I ended up stopping as it came back down. I got a partial fill at 86. Once I added and then it was going down, I was like, “Okay, I gotta start easing up.” So I tried to sell what I added. I got a partial fill, sold more at 67, more at 55, more at 26, and the rest at 18. So I sold down into the flush. I hate doing that, but at a certain point, you’re hitting your max loss and you have to. So I lost $3000 on that, which is 30 cents on 10,000 shares.
Obviously, for 10,000 shares it’s not that bad of a loss. It’s only 30 cents, but it’s definitely disappointing. I hate starting the day and starting the week with a red trade, but that’s what happened. So started in the red with this rejection, and then I’m watching the scanners. MBVX was on our watch list pre-market, but when the bell rang, it … I don’t know. It dipped down for a second, and so I sorta ignored it because it dropped down to 89, and then it surged back up here, broke through two dollars, and hit a high of 2.37, and I missed it because in these two minutes, I was trading BNTC. So I missed this trade completely and I just felt like I was chasing it, so I just left this one alone. I didn’t even trade it at all today. I just totally left it alone.
So then I’m watching the high day momentum scanners, and these scanners show us stocks that are squeezing up in real time right now. BNTC was on the scans. I jump into it, lose money on it. STAF was on the scan right there at $1.88, and it was actually on our watch list pre-market. However, because it had popped up all the way to three and then sold off, I thought it looked too weak, so I really wasn’t very interested in it at that time.
So BNTC, BNTC, BNTC, MBVX, STAF, STAF, STAF is hitting the scanners a couple more times. STAF ends up hitting a high of 2.20, 2.24, 2.25, and then dropping all the way down to 1.82. That’s a 40 cent drop. That’s pretty substantial in a cheap stock, and so I was like, “Another false breakout, just like BNTC. Looks like we’re gonna see kind of a crappy market.”
SSY hits the scanners. I jump in at 71, and then I added it at 92. I thought it was gonna break over the whole dollar. It hits 2.02. I tried to sell half and I got a partial fill at 99. Tried to sell on the bid at 90 and it just flushed down and I ended up selling the rest at $1.49.
So I lost 1500 bucks on that one. And again, this ended up dropping more than the place it started. It went all the way down. So now we have like three rejections on the day. We’ve got BNTC. We’ve got STAF, and we’ve got SSY. Now, when STAF curled back up and broke over that 2.20 spot, that’s when I was like,
“All right. I’m gonna give this thing a chance.” So at this point, I was down $4600 on the day. $4600. I was in the red and I was not happy about it. But, you notice it starts to squeeze up, so I jump in here as it’s going up, thinking maybe it’ll squeeze into a circuit breaker halt.
It hits a high of 74, then pulls back a little bit, hits a high of 87. Couple little scalps here, and I’m still holding here and then I sell. My very best exit was up here at 2.99. So let me just scroll down, where was this? There was so many trades on this. I was getting in, getting back out, getting back in.
So best exit up here was at 97 and 99 right there, which was pretty good. I was happy with that. So I started making money back. I think I made like $1500 back on that trade, and so I was down only $3000 on the day.
And then we see a couple little opportunities, a couple other stocks hit the scanners. XTLB, this was actually called out in the chatroom, which is good. Sometimes traders in the chatroom will see stuff that I don’t see or will see stuff that our scanners don’t catch. So I jumped into this one. It pops up from about 2.20 up to 2.60.
Again, the first move sort of gets rejected and then it curls back up. So that’s really the thing to look for right now is, let it pop up, pull back, and then if it goes above this level, that’s the spot I’m interested. So I got in as it surged back up here. TGC, similar. This one I jumped in … It first popped up to $1.12. It then pulls back, sort of inside this candle, it drops down, and as it surges back up, I bought at $1.18 and added at $1.20. High of the day was $1.24.
So made 700 bucks on that. You know, a couple small winners here. So with these, I was able to get myself down to red, I don’t know, maybe $1500 on the day. So still in the red, digging myself out one trade at a time, small winners. SECO, I jumped in this one right here at 4.50, pops up to a high of 4.53 and drops down. Only made $49 on it. Small winner, whatever. And then back to STAF. This is the one that, for me, gave me such nice winners. Once it broke over three, it came up. It tapped three, it pulled back, and then it started to curl back up. So right here is where I start adding for the break of three. I added at, I wanna say it was like 78 or something like that, so let’s see. I’ll scroll down a little bit.
I added on STAF at … you know, again, just so many trades on this. Getting in, getting out, getting in, getting out. Added at 80 and 87, and 87 and 89. So taking some size, I was expecting an immediate break over three. It’s a little bit choppy so I end up adding it at 2.95, selling at 99, 96. Couple partial fills, orders that wouldn’t fill.
This is when I try to sell on the ask and I have to cancel it. Then selling at 90 and then getting back in as it pops back up, 3.15. So this was sort of just scalping. Getting in around this area for the test of three, adding as it’s going up. We hit a high of 37. We then pulled back, consolidation in here. All of this area for me is like getting in, getting out. Getting in, getting out. Based on reading the time in sales, which is this window here.
So when I see a huge streak of green and lots of buyers, I often jump in as early as I can, kind of ride that momentum that you’re seeing in the time in sales. You’re not gonna see it as much now as we’re getting closer to the lunch hour, but overall, some good trades on this one. And then right in here, at $3.45, we were consolidating right here, and that’s where I took my final … This was the really good trade.
I got in here at 3.45 for the break over the half-dollar, and boom. It popped up from 3.45 all the way up to a high of 4.80. And it had a circuit breaker halt. The sad thing is, I wasn’t nearly as aggressive as I could have been, because at this time right here when I took the trade, I was still down around $800 on the day. And I had said, “You know, I don’t wanna go back down below 1000 in the red, so I can only risk $200 on this trade. I can’t be really, really aggressive.”
So I get back in, it squeezes up and I end up adding. And I got a good win on it, but … I mean, obviously I did. I made $3600 or $3000, because I went from down 600 to up, actually $2998 on the day, which was my high of day. And then I took a couple scalps right here on a one-minute micro pullback, jumped in there. It didn’t hold, and I tried to get back in at 87 for the break over five, and that didn’t hold. So I gave back about 600 bucks on those last two trades, and that’s when I was like, “Okay, that’s it. I’m done for the day. Green is good, especially after such a rough start.” So finishing up $2375 and it was not easy. Today was not an easy day. It was just very choppy.
So you can see here, I’m green on four, red on three. This is basically a break-even trade. $49 is not profit to me. That’s just nothing, really. So three winners and four losers, basically. Just choppy. My total accuracy today looks like it’s around 66%. Average winner, only 10 cents. Average loser, 13 cents. So small wins. A couple of bigger losers, especially on that BNTC trade. So 31 cents was my biggest loser, and 20 cents was my biggest winner, including scaling out, right? If I sell half at 20 cents of profit and the other half at 40 cents of profit, my total is 30 cents. It’s the average of the two.
You know, green is good. I’m gonna be happy with that. Today was a really close call. I was only about $300 away from hitting my max loss, and having to say, “I’m down $5000 today, guys, and that’s it. I’ll try to make it back tomorrow or later in the week.” But fortunately I was able to recover off those lows and curl back up. Right now, up right around 14,000 or so on the month, 328,000 on the year, 665,000 in my small account from when I first started with $583. So you know, green is good. It’s another day, another dollar. Progress is being made, but hopefully we’ll see a little bit of cleaner momentum tomorrow.
I’d really like to see the stock like BNTC, the leading gapper, be clean. Our two leading gappers today, BNTC and MBVX, neither one of them were really that easy to trade. MBVX has held up a little bit better, but it also did a false breakout up here, then sold off down here, got halted going down, squeezed back up but then got halted going back down again. Just kinda choppy.
So I don’t know. Maybe it breaks over 2.50, it’ll be interesting, but the volume is 14 million shares, so at this point it’s pretty crowded. A lot of tug of war there.
So I think for me, the smart thing to do is to close up shop here. Today was a little bit of a close call, and you know what? Friday was also a little bit of a close call for me, so the more you push your luck, inevitably you’re gonna get caught with that big loss, so I gotta be a little bit careful going into the market tomorrow. Maybe I’ll start with, initially, a little bit of smaller size. I won’t start with 10,000 shares. I’ll start with like, 5000 and then I can always add. That way if I do get caught in false breakouts on those first couple of trades, they won’t be too, too painful.
Recovering from being down 4600 is really not easy. It’s actually pretty rare that I would have a day like today. Usually if I’m down 4600, that’s it. Maybe I’ll make back a little bit and close down three grand, but I’m almost definitely still closing in the red. So today, STAF was my lucky stock.
This was the bailout that I got, and I’m glad that it was as strong as it was, because I definitely needed that. But unfortunately I wasn’t even able to capitalize on it as well as I could have. Considering it’s up 100%, being up only $5700 feels like it’s not a lot, but that’s mostly because when I was at my max loss or so close to my max loss, I really couldn’t afford to take a lot of risk on those early trades.
So yes, I’ve hit my max loss. I hit it twice last month. Let me just look back here on my June calendar. I believe it was twice that I hit it. Yeah, I hit my max loss twice last month. I had four red days, but two of them were max loss. In May, I hit my max loss once. No, sorry. Twice. I hit it twice in May.
In April, I hit my max loss twice, and it was two days back to back which was not fun. In March, I hit my max loss once. Yeah, only once in March, which was good. February, I hit it a couple times. January, I hit it once. Actually, January, no. I didn’t actually hit it. I was down 4600, so that wasn’t quite a … so I didn’t hit it in January.
But in any case, this was a close call today, so just gotta keep that in my mind tomorrow, that today was a close call and I gotta scale back a little bit. I don’t wanna see this warning here. This happens any time you go red. It warns you, and I actually think that on my trade on STAF, on that first trade where I got in, I was actually holding and for a moment I might have been down more than 5000, but I was holding it, and then it curled back. So the max loss doesn’t turn on until you press the “sell” button, and on that one I was able to … It ended up curling back up so I didn’t end up taking the loss. It ended up being a small winner.
Anyways, I’m gonna set my max size tomorrow for 7500 shares to start, and then I can always increase that if I’m feeling confident. But just try to take it a little easy tomorrow. If I can make 500 to 1000 bucks, that’s good, but we’ll need to have that one stock that’s really showing strength. Today was STAF, and that was about it. So a good move there, but everything else was pretty choppy.
All right, so that’s it for me. I hope you guys have a great afternoon. Those of you who are just getting into the community, again, study up. Go through those classes. Watch as many of those videos as possible. Everything we do during the day is, really it’s an example of the lessons that we teach you.
So if you hear I’m trading a stock like STAF, by all means, I want you to look at it because there’s obviously opportunity here, but you gotta decide your entries and exits based on your own understanding of the patterns. You don’t ever wanna just follow, whether it’s me or anyone else, because that doesn’t teach you be independent, doesn’t touch you to be self-sufficient.
One of the things that we do that is so rare is we actually explain why we take the trades we take, so you can learn from them, right? And then you can become a better trader on your own, and then you can start throwing ideas into the chatroom that are actually gonna help me and some of the other traders who are profitable, and are really just using the chatroom for idea generation, not for exact entries or exits.
That’s the value of this community, its idea generation. All right, so anyways, I hope you guys have a great afternoon. We’ll be back at it first thing tomorrow morning, 9:00, 9:15 for our pre-market analysis. All right, I’ll see you all in the morning.
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What’s up, everyone? All right, so here we are at the end of a holiday week, the end of my second week of trading in our new office, which I’m still getting set up, but I’m loving it. I’ve got the fiber Internet.
$1.3K A Day Keeps The Job Away! | Ross' Trade Recap - YouTube
I’ve got this nice space to work in, and the last two weeks, they’ve been pretty good, $26,000 last weeks, 12,000 this week, $38,000 in two weeks, so I’ve broken in the space with some big winners, and I’m really happy about that, finishing today up another $1,300, which is good.
I’ll say that the momentum today wasn’t as good as it was yesterday. Yesterday was a $7,000 day, but it wasn’t horrible. There were some opportunities. The biggest one was on XBIO, as that squeezed up from about $5 all the way up to $6 and I think it was 20 cents, so that was a pretty big window, and I was able to capture a couple of small moves within that range, which was good, so finishing the week with green trades, on a green note. I feel good about that, and I’m excited to go into the second week of July.
Now that the kind of 4th of July holiday is behind us, we can really get out of it. We’ll have regular weeks of trading for the rest of the month, and I want to really stack up those profits as much as I can because July is typically a slow month for me, and so the fact that right now it’s been pretty good, I want to strike while the iron is hot and make as much as I can.
All of you guys who watch these videos, whether you watch and you’re thinking about trading or you’re currently an active trader, anyone who’s not already a member of the Warrior Trading family, I want you to go over to the website right now, warriortrading.com, and join, whether it’s the monthly chat room, the Warrior Starter, which includes chatroom and some access in our classes or the Warrior Pro Course, because we are still running our 4th of July Special.
4th of July, it’s all about freedom and independence, the two things that got me into the markets, all right? I want you guys to join. I want you to become part of the family so you can watch over my shoulder every single day while I’m trading, all right?
Now, let’s break down the trades from today that helped me give me … that helped get me $1,300 of profit, and if you guys have any questions, any comments, leave them below because I’m going to come back through it later today and over the weekend and then answer them, so I hope you guys enjoy and I’ll see you first thing Monday morning.
All right, everyone, so we’re going to over our trades from today, midday market recap, finishing the morning up $1,366, which is not too bad. Green is good. This is not going to be the biggest day of the week for me, but it’s another thousand bucks, and I’m happy with that. This has been so far a great start to the month.
Let’s see if I can pull up my trader review stats here, so let’s go down month of July. Monday, I made $8,000. Tuesday, I lost 2,800, and then, Thursday, I made 7,700, so plus 1,300 today, that’s a $12,000 week in four days of trading, which is terrific, so off to a really good start here.
If we look at the detailed … you’ll see … Let’s see. Let’s just look starting for the month, look at net … Let’s see starting July 2nd, so this was as of yesterday, $10,812, average winning trade, 580, average loser 702. I had a bigger loss, a bunch of small winners, but percentage of success is 70%, so the accuracy is on point, and I just need to get a couple of those bigger winners to help really boost up that average winning trade, but, overall, this is pretty good.
When you look just year to date, for instance, you’ll see my average winners are closer to a thousand bucks, $1,200 average winners, $1,100 average losers, up $3,025 on the year before today, so things are looking pretty good for 2018.
I finished 2017 with $335,000 of total profit in my small account that I started with less than 600 bucks. I had another 50,000 in my main account, so that was 380,000 right around there for 2017, so once I break over 380,000, this will be the new best year of all time. 380,000, last year was the best year I’d had, and it looks like I’m only about 50,000, 60,000 away from that level, and it’s July, so that’s good. That’s really great.
The thing is when I started trading, I wasn’t thinking about making $1,000 a day. I wasn’t thinking about making $5,000 a day. This year, I’m averaging … My average daily gain or loss is $2,659 of profit. Think about that. How many jobs do you make $2,659 per day? There’s not a not a lot of jobs where you can get that, and the ones that you can, you need to go to school for a long time to get there.
Remember last week we were talking about the orthodontist who’s got over $1 million in student loan debt, and he’s making $250,000 a year, and he’s just paying the minimum interest on his debt, so I’m making more than him and I didn’t have to take out $1 million in debt to be able to get here. I don’t have any student loan debt, so it’s obviously a pretty awesome career, but the reality is trading is not for everyone. Not everyone is going to get it. Not everyone is going to have the mentality to be able to do it, because not everyone is going to feel comfortable taking the risks that we have to take every single day, so it is a select group of us who have what it takes to be traders.
One of the things you’ll realize is that, once you have all the people who have what it takes to be traders, the sad thing is, even though they have what it takes, a lot of them will still fail, and they’re going to fail not because they don’t try hard, not because they don’t have what it takes, not because they don’t really want to be successful, but for one really important reason. They don’t have a strategy. They don’t know the rules of the market. They don’t know how to find stocks to trade, and so they’re just at the mercy of trading, what they hear about on message boards or what they get emailed about for hot stock penny picks or whatever it is, and they end up losing money.
That’s the thing that’s really frustrating, and that’s what we’re trying to prevent, so you guys who are in this room, those of you who watch on Facebook, watch on YouTube, if you think you have the aptitude to be a trader, I want you to make sure you’re getting a good education and you’re learning the strategy before you just throw money in the market because, 90% of the people that come into the market, they end up losing money, and it’s not fair. The market, it really is … It’s rigged to favor big money, and retail investors like all of us, we really have the cards stacked against us, so we need to come into the market every single day with a very specific strategy of how we’re going to conquer it.
Fortunately, for me, I’ve got one that’s been working to the tune of $2,600 a day, but even though I have the entrepreneurial spirit, even though I have the aptitude, even though I have the mental willingness to take the risks in exchange for the reward, I was almost part of the 90% who failed. I was a failing trader for two years before I finally turned it around, and the reason that I was failing was because I didn’t know how to manage my risks, and so I ended up having lots of big losers. My biggest loss was like $25,000 and my biggest winner was probably like 4,000, right?
Now, look at where I’m at now. My biggest winner is 24,000 and my biggest loser is 10,000, and it’s not to say that a $10,000 loss is insignificant, but in the context of where I’m at now, it’s actually not that bad. Relatively speaking, my biggest winner is two and a half times bigger than my biggest loser, and that’s what’s good.
This would have never happened to me. This moment where I finally turned the corner, it wouldn’t have happened if I hadn’t discovered this one pattern in the market. I’ve been using Trading Review now for a couple of years. We can go back here. Let’s see, let me just scroll down win-loss expectation, so this is the account over the last couple of years since 2016, all right? You can see. I mean, really, this has been an incredibly profitable time right here the last year and a half. I really stepped up to the plate and put the pedal to the metal, but none of this would have happened, this equity curve. It wouldn’t have happened if I hadn’t figured out this one really critical secret, and once I figured it out, that for me was the turning point.
The critical thing for me that has led to my success, has allowed me to make as much money as I have in the last several years, let me just back this up, is that the stocks that I make the most money on, price and volume, they’re stocks under $10, right here, and this is 500,000. That’s half a million dollars of profit, trade stocks between $2 and $5. These are just little bars, but this is a lot of money that it represents, so I make the most money trading stocks under $10. That was a huge discovery.
The second big discovery was, let’s see, that I make the most money on stocks that have high relative volume performance by the instrument’s relative volume, so stocks that are trading on five times higher volume than average is where I made $787,000 of that profit. Right? That’s crazy. Think about that, $780,000 of profit, so this is the sweet spot.
Now, before I discovered this, I was trading stocks like this. Stocks like Facebook, stocks like Netflix, those are all going to be in this column right here, because they just trade on pretty much average volume, so when I was trading a stock like Apple back in 2012, this stock, back then, it was like $700 a share or something, but look at how much it moves on any given day. You could look at this. You could say, “This stock is moving. I could trade it.” It went from 185 to 187, but percentage-wise, that’s like … It’s just such a small move, and the volume, this is the volume today and this is the volume over the last 20 days, it’s average volume. We make money on above-average volume.
What happens when you have above-average volume? You’ve got high demand. What happens when you have high demands? Stocks move really quickly. That’s when you get stocks like this one today, XBIO, from $4.40 to $6.20, a 50% move in one day, so realizing that the stocks that I made the most money on were stocks that moved more than 2% in a day. I mean, literally, all of my profits are stocks that are more than 2% in a day, so these were really big discoveries that I made, and I wouldn’t have made any of these discoveries if I hadn’t taken thousands and thousands of trades.
I needed all of that historical data so I could go and data mine it and then draw these conclusions, so just in the last, whatever, two, two and a half years, I’ve got 2,500 trades. It takes that amount of trades, if not more, to draw real conclusions about your strategy, about the patterns in the market, about what works and what doesn’t work, so anyone of you guys, I really believe anyone of you guys could make these same discoveries as long as you did a couple of things. One, you meticulously track all of your trades.
Now, just tracking it in Trader Review is good. Tracking it in Excel where you could add notes to the trades is even better, where you say, “This was a bull flag. This was a bear flag.” This was the strategy that I actually traded. This was just sort of the raw numbers, which is helpful, but by itself, it doesn’t give maybe as much insight, so, number one, track all your trades and then, number two, practice trading for a year, year and a half, maybe two years to build up enough data to start having something that you can really did through.
You guys can all do that. The only problem is it takes a lot of time, and a lot of people don’t want to spend that time, and they’d rather start on day one making $1,000 a day, making $2,000 a day, right? That’s the goal is just to start on day one, and so I realized when I started Warrior Trading, and I first started it as a blog, but there was a huge demand for educational content, because, for me, when I was learning how to trade, it was trial and error. I was struggling to figure it out, and I was doing all this Googling. What does this moving average mean? What does this mean? What does this mean? What does this mean? There wasn’t one common database that had all this information.
I wanted to learn one strategy. Does someone have a strategy they could show me, that they could teach me, that works, that’s proven to be profitable? I couldn’t find it. I couldn’t find it, and so I ended up having to spend all this time figuring it out myself, but what I started doing is I started Warrior Trading as a blog where I chronicle my ideas and what was working for me, and it was a journal basically, and I would write about moving averages and write about the momentum trading strategy, and I started realizing the site was getting a lot of traffic organically just from people Googling the same things that I was writing about, and, the next thing I know, the site is doing 100,000 sessions a month, 200,000, 400,000, 600,000. We’re now doing over 1 million sessions a month of people trying to find this information.
Clearly, there’s a huge demand, and it’s because the market is more accessible than it’s ever been in the history of the stock market. You can access it right here on your phone. You can access it with a laptop. You can access it from Rural Vermont, from The Berkshires of Western Massachusetts. You can access it from Oklahoma, from Indiana, from the middle of nowhere. If you have an Internet connection, you’ve got a mobile hotspot, you can access the Internet, so with all these people trying to access the Internet and trying to capture a little bit of profit, there’s a huge demand for a little bit of education, for understanding a good way to trade the market, a safe way, a smart way, and so that led to Warrior Trading to what it is today with the chatroom, with the classes.
Our goal is to help every single one of you who are wanting to learn how to trade get there the easy way, so you can start using the strategy that I’ve proven through years of trial and error and, now, through years of historical data of profitable trading is successful, so you can learn my strategy and you can learn it in three months, and you don’t have to spend years of trial and error. You can start trading. You can get into it, and some of you, on month four, when you finish the Warrior Pro Class, you’re going to be trading profitably like Justin. All right?
Some of you guys are going to be month six, month nine, month 12. Everyone is on a different learning curve, depending on the amount of time you can dedicate and everything like that, but the reality is you can learn a strategy that’s already been proven to be profitable. You could do that or you could do it the hard way, which is to try to reinvent the wheel, and the reality is you can reinvent the wheel, you’re going to figure it out, you’re going to go through … You’re going to get closer and further away, closer and further away, closer and further away, and then when you finally figure it out, you’re going to realize you’re right back here in the same spot, because almost all of the profitable day traders out there trade a variation of the same strategy.
You either trade momentum or you trade reversals, and we teach both. I prefer momentum because it’s more profitable in my opinion. Financially, it actually is more profitable, but, for me, it is. For some, reversals might be better, but we teach both strategies, so you could either go the long way of trying to figure it out or you can get started right here, so this is all just to set the sort of foundation of what we’re going to talk about today when we go over these trades.
Today is not the biggest day of the week. Today is not the biggest day of the month. Today is just a $1,300 day, which is below my $2,600 per day average, but it’s a green day and I’m happy with that, so it’s another decent day in the market and it just helps keep me going to that $650,000 goal that I have for this year. It’s actually 665,000 because last year I made 335 in the small account, which means I need to make 665 this year to cross over $1 million, and when I do, whether it’s in December or it’s in January or February of next year, I would have proven that you can make $1 million with as little as 600 bucks.
If you have $600 in an account and you have a strategy, you could become a millionaire trading. I am $650,000 or so of the way there. Let’s see, where are we? $660,000, so we’re 66% of the way there and 340,000 to go. It’ll happen. It’s just a matter of time. I will cross that line, and even where I’m at now with 600,000, to make that in 18 months of trading is pretty incredible. We’re all really, really fortunate.
Like I said, trading is not for everyone. Not everyone in the world can be a profitable trader. Otherwise, everyone would do this and no one would work regular jobs because this is an amazing job, so it is a specific type of person that’s willing to be a trader.
A lot of you guys, you own small businesses. A lot of you have that entrepreneurial spirit. You want to be self-sufficient. You want to work from home, and I get that. That’s the same drive that I have and that’s what ultimately will make you such a successful trader because you’re so motivated for that freedom, that independence. Other people want the security of a nine-to-five job, and there’s nothing wrong with that, and there’s nothing wrong with that at all. It’s totally okay, but to each their own.
Anyways, it’s just been a great start to the month of $1,200, which is fantastic, so I’m happy about that, and, again, so today is July … was July 6th, and we have extended our 4th of July sales through this weekend, so you guys can use the coupon code “Firework” to save 30%, 30% on the chatroom, 30% on the simulator, 30% on the Warrior Starter Course, which includes the chatroom and the simulator, or 30% off the Warrior Pro Course, which is our flagship class. All right, so we’d love for you guys who haven’t already gotten to the classes to join.
We’ve done surveys, a lot of surveys, and we know that, students who are just chatroom members, you guys have about a 50% chance of being profitable. About 50% of the chatroom members, just regular chatroom, are profitable, so that’s your baseline. Now, that’s not bad. That’s five times higher than the average success rate. The average success rate is only 10%, but 50% is still pretty low.
Graduates of the Warrior Pro Class have an 82% chance. We did a survey, and we found 82% of our graduating students profitably trading the markets, so that’s where we want to get you to. Inner Circle is 90%. That’s the top tier. Inner Circle right now is on a waiting, so we’re not even accepting new application right now.
We want to get you in a place where you have the highest likelihood of being successful, and summer is a great time to learn how to trade especially because, when things pick up in the fall, September, October, November, December, that’s when you want to really make sure you got the skills so you could put the pedal to the metal and make as much as possible.
Last November, I made $82,000, best month of all time. December, I made 84,000, best month of all time. January, I made $117,000, best month of all time. Crazy. Three months and nearly $300,000 of profit, just absolutely crazy, so, anyways, so I want to see you guys have that same level of success. I know so many of you guys email us and thank us for the success that you have, and we just want to keep seeing those emails coming in, keep seeing you guys in the chatroom making money.
Anyways, here, today, we’re making a thousand bucks, 1,300. XBIO, this was the biggest winner today. Actually, it was kind of interesting. It was a little bit choppy. I first got in it for the break of $5 right here. We saw it starting to curl up, and I jumped in for the $5 break. It pops up to a high of 5.22, and then promptly drops all the way down to 4.81 as you can see right here.
It then pops back up, so, in this very first move, I made $268. I made a very small profit, and I stopped out as it came back down, and I thought, “Geez, another choppy stock. I don’t know.” It then curls back up and breaks over 5.20, and then I get back in. It hits 5.40, and then it drops to 5.15. Okay? Once again, I’m right on the trade and I’m thinking, “Geez, this thing is hard,’ and then it breaks over 5.45 and makes this big push here up to 6.09. This is what we call … These are micro pullbacks. This is a pullback. This is a pullback, and this is the third pullback.
My best exit was up here around 6.19, which was pretty good, so, overall, made some good money on a stock. Let’s see, where was this, 6 … Yeah, actually, I guess I tried to sell up there. Maybe they didn’t get filled, but, overall, it was okay. I made some money on it, but it wasn’t a $1,000 winner or anything like that, and it was because it kept chopping around. It scared me right here. It scared me right here, and then, finally, it takes off, but I was a little too nervous to add up here at the half dollar because it had just done these two sort of choppy moves.
Here, you see it’s backed up at [inaudible 00:22:19], so XBIO today is up 46%, all right? That’s what we’re talking about. 46% is awesome. That’s a huge move. Look at the volume. It’s above-average volume for the last few days. It’s under $10. This stock has everything that I look for in a stock that has home-run potential. All right, so XBIO, $824, green is good.
PRAN, this one, I jumped into out of the gates [afraid 00:22:52], anticipating a break of yesterday’s high. Yesterday’s high was 2.60, so I was looking at this for continuation. The bell rings. It dips down for a second. It opens at 2.32 and, as it surges up, I added for for the break over to 50. It pops up to 2.50. It pulls back. I add for the break of 2.90. It hits a high of 2.91, and then it drops all the way back down to 2.55, so I actually was up about $1,100 on this and then I lost 300 as it came back down right here, so I’m up $747 on it. It’s not the biggest winner I’ve ever had. It’s just kind of an average trade, and it really didn’t hold up very well, which is disappointing.
[TAET 00:23:37], this one, I jumped into hit the scanners, so we use the scanners back here. This is how I find the stocks to trade. Once you know what your sweet spot is, the challenge is how do I find these stocks in real time? You can see XBIO is on the scanners right now, real time, 12.10, so that’s telling you that stock is moving, which it is, so TAET, it hits the scanner down here at 2.15, 2.20. 2.40. I see it popping up, and I’m like, “Okay.” Clearly, this is what I look for. I look for stocks to hit the scanners multiple times in a row. If they’re in yellow, it means it’s hitting my massive volume and Low Float Scan. That’s the name of the scan, so the horizontal coloring is based on the name of the scan.
This is massive volume medium float, so it’s in green, all right? This one, let’s see, down here is up 8% in the last 10 minutes, all right? We’ve got a couple of different scans, so the yellow one is the one that I really like the most because that’s stocks that are moving quickly, so it hits..
What’s up everyone? All right, Tuesday morning here we are, second day of trading for the month of July, Second day in this new office, but its red day.
I Want You to Learn How I Lost $3k | Ross' Trade Recap - YouTube
I am wearing a little bit of red today and I hope it’s not bad luck. Not going to jump to any conclusions yet, but I’m a little nervous.
So, yesterday I made $8,000, today I’m down 2,800. So, you know it’s my first red day in about a week and a half and in the last week and a half I made $52,000, so that’s 52 steps up and 3 steps down. So down whatever say $3,000 today, 2,800 three grand it’s all the same at this point so.
A little bit of a step back but not too bad. We’ll really have to see how Thursday and Friday play out, I’m still green on the week, still green on the month, up about $4,000, $5,000. So, you know I’m still in good shape but you know let’s see what comes next.
Right now, I know I was trying to put the petal to the metal today, be a little aggressive and I got my hand slapped by the market, so you know a little bit of a step back but you know again it’s part of the deal.
And I should have know better because this is a holiday week, and today was a half day in the market so maybe I should have been a little more conservative, but you know what that’s all right. I’m going to go into the week, or into the day off tomorrow feeling good, relaxed because you know what I’m up $320,000 on the year, I’m green on the month and I’m in the drivers seat, I really am.
You know at this point in the year, if you’re green, you know you’ve got the wind at your back. It really is now just maintaining your pace, slow and steady, because coming into the fall, October, November and December those are historically my strongest months. It’s actually November, December and January. So I know with those coming up, those are going to put me in really good shape to finish up the year strong and right now it’s just kind of trying to you know keep my pace, keep putting down some winners, and stay in track.
So, anyways we’ll break down the trades from today, it’s you know a little bit of a kind of crazy day, had a bunch of trades, had some winners, some losers, all over the place. We’ll break it all down in today’s midday market recap.
All right everyone. So, we’re going to break down the trades from today. Today is unfortunately my first red day in over a week. Last week was awesome, had some really great trades, made $26,000. Yesterday the momentum continued with $8,000 of profit and then today giving back a little bit of profit down 2,800 bucks.
So, I’ll go over the trades here. I’m just going to go open up my broker account. One of the things that I try to do when I am having a bad day is at a certain point I just close my account, I’m like, nope I’m done for the day, I’m not going to keep trading, because if I keep it open and I keep it in front of me inevitably I’ll end up continuing to trade and that’s when I get myself into trouble. So, I didn’t want to do that today, I just … I’m a little frustrated with a couple of the trades form this morning and I really could have finished today in much better shape if I hadn’t been so aggressive. So, we’ll break it down.
Now, today started like any other day, looking at our gap scanners. All right, so every single day we’re looking at this scan to find the stocks that are gaping up the most in the entire market, so if we use historical date, we search at 9:15 we’ll see this morning that GBR was our leading gapper right here, gaping up 48% which is a huge gap.
Second leading gapper MICT. Third leading gapper MXC. And you’ll see I traded each of these. So for the most part my strategy is to trade stocks that are on the scan, and then also once the bell rings to trade stocks that are on the high day momentum scanner.
as it turns out today I didn’t do super well of the scanner, MXC … Actually I lost on basically, well I made a little bit of money on MICT. Made a 170 on MICT, lost 408 on GBR and lost 500 on MXC. My big winner was actually TGC, which was a total surprise move, it wasn’t on my scanners.
The bell rang and all of a sudden TGC starts to take off, and I jumped in that. The scanner alert for us was the dollar and one cent and hit a high of $2.47, it’s 150% from the alert. So I’ll show you that alert in a second.
The first stock let’s look at GBR. So, GBR was gaping up and initially I was thinking geeze this is interesting because look at what happened yesterday. Yesterday this big move pre market, and then it takes off when the bell rings. Today, this big move pre market, and then it takes off when the bell rings, or sorry it takes off pre market and then when the bell rings look at what happened, it literally dropped like six points from a high of 14 all the way back down to a low of 6.15, isn’t that crazy.
What a drop, I mean it’s been a while, I don’t even know the last time I actually know the last time I saw a stock in our price range that dropped like that. It’s just very unusual. So what I tried to do on this, was I tried to do a bottom bounce, little risky but what I did was I waited for the first [candle 00:05:49] to go green.
All right so you saw the sell off, sell off, sell off, I got in here first candle to go green I jumped in at, let’s see it was actually no … I got in a little bit higher … yeah let me go back on this, I’m going to go into a ten second chart.
All right, let’s see back, back, back. So, here we go. All right, so it starts to, it looks like it was starting to bounce right here, so I jumped in at 9.61, I wanted to get in at the half dollar, of 9.50 but I used my hot key. And when you use a hot key, you know you’re jumping right in at the current price, and for me in this case, I was jumping in just a little high. So I got in at 61, and sold some at 73 and 74 as it pops up to a high of 77.
Then it dropped all the way back down to 9, and I sold at 9.50 and I sold the rest at 9.04. So. You know a 70 cent loss or a 60 cent loss for my initial entry on those last 1,200 shares and so that put me down 406 bucks. So, you know this one it just wasn’t ready to bounce and it ended up going lower and continuing down.
So just not an easy stock this morning, it was very, very weak. Kind of surprising considering the big pop that it made pre market, but you know for whatever reason the bell rang, and this thing just tanked. So, I don’t know the price action on this one has been pretty wild last couple days.
Still no news to account for this move, and I guess it was a matter of time before it started to come back in, so anyways lost 500 bucks on it. I’m still up about 10,000 on this stock so I’m not going to be too disappointed on that, on I guess $400 loss so whatever, not that disappointed on that.
So, next trade, MITC off the scanners. This one I jumped into for a break over 180 it started to curl up, I thought maybe it would retest the pre market high, but it ended up pooping up hitting a high of 195 and then fading. So I sold as it came back down, only made $169, so very small win on that, basically like not a good trade.
Next trade, MXC. This one I was hesitant about because the price is a little too high. I got in and, let’s see I got in for the break over 12.50 as it was squeezing up right here, it hits a high of 13.29, and then on this candle it drops all the way down to 11.21 which is a two point drop.
You know that stuff is really hard to manage, and so I ended up stopping out as it came back down. It then curls back up, I get back in at 13 right here and then I get out flat because I got in at 13 it drops to 12.85, and it came back up and I got out break even, actually I got in at 13.20 so I was down like 40 cents … excuse me.
It comes back up and I get out, then it squeezes up to 14.20. So I was just like you know what this stock is a pain, I’m done with it. So lost 500 bucks on that one.
So, those are my three trades so far, and then there’s TGC. So I see TGC on the scans, it hits the scanners at a dollar. So the scanners that I used to find TGC, once the bell rings the high day momentum scanners, we move them out of the way, we’re not using those anymore so we’ll go put those like way over here. No need to look at them.
All right, now the bell has rung, we’re watching the high day momentum scanner, this scanner shows me stocks that are squeezing up right now. MITC was on the scan, GBR was on the scan pre market. SAEX, didn’t trade that. Here’s TGC at a dollar and one cent.
All right guys $1.01, it’s going to go up 150% from here, I’ll make $2,200 dollars on it. So it starts squeezing up, squeezing up, and as I see … Initially I was like, oh I don’t know if I’m interested, and then right in this it did a little one minute micro pull back, right here, right in this area at 1.20 and as it breaks over 1.20 and squeezes up I jumped in. It squeezes up to 1.55, I jumped in with 15,000 shares. Stepping up to the plate, big size and I’m holding at an average of 1.30.
So, I’m up 3,000 bucks right there. It resumes from a halt, it’s a five minute circuit breaker halt. It resumes, it hits 1.65 and I added, I said I was going to add coming out of the halt. So I added at 1.65, so where is this add, 1.64 there we go, I add and then. So I add and then immediately I realize that I’m buying into a hidden seller, and so I try to get on the ass to sell, I don’t sell and it drops. It drops from 65 all the way down to a low of 30. Now I’ve got 17,500 shares and I go from being up 3 grand to being down about 800 bucks. Just like that, and I was like dang it. You know this is, I’m already red on the day, this is not what I need.
So as it pops back up, I start to ease out on the ask at 44 and 43. So I sell 15,000 shares at 44 and 43, and them boom, it pops up to two bucks, 2.10. How’s that for frustrating. If I had held the whole thing, if I had like a mini stroke at my desk and fell over and woke up 15 minutes later, I would have been up $8,000, but I stopped out, I just got nervous, I bailed. It then pops up and you know I got back in and chased the momentum a little bit, but the trade was ruined.
So what ruined it was this drop here, obviously in a perfect scenario that doesn’t happen. You know in a perfect scenario they open higher and they continue, but in this case it opened high, it dropped, and then it surged up. I never like when that happens because there are time, now lets just remember, this could have gotten halted going back down, right? It could have gotten halted going back down and then what? I’m holding 17,000 shares and a halt going back down, it resumes at $1.10, that could have been a $5,000 loss. So it was the right thing for me to do, to sell right here, it’s just disappointing that I ended up missing so much of the profit. So, it was actually about $3,000 of total profit, I then got back in right up here for the break of 2.50 and that ended up being a false break and I stopped out here as it came back down to 2.10. So I lost $1,500 as it came back down. So I went from being you know up $3,000 on the day, after that trade I was down like 1,500 bucks … I gave back 1,500 bucks so I was up 1,500.
Then we had USEG hit the scanners. So USEG hits the scanners and I jumped into it really quickly because USEG is energy, TGC is energy, GBR is energy. So we’ve been seeing these energy stocks surge up and I though USEG, being an energy stock, might get sympathy momentum. So since these others were so strong, this one might be strong as well.
So I jump into it, let’s see here it is. It’s on the scanner 65, 68, 67, 70, 74, 75, 78, I got in it at 80, with 17,000 shares. So I take another really big position, it pops up to a high of 1.90, so I’m up 17,000 bucks, but I was looking for this to break 2, I wasn’t selling at 1.90. I wanted to see it break over $2. It hits 1.90 and what happens, two minutes later it’s back at 1.55 and I had to bail out. So I sold as it came back down, and so there I lost three grand, and like that I went from being up 1,500 on the day to down 1,500 on the day. Super frustrating.
One of the most frustrating things for any trader is to go from green on the day to red. It’s just, it’s this feeling if you had it in your hand, and you let it slip away. It’s like imagine holding a handful of gold, and standing in the ocean and just you let your hand go and it’s gone, you’ll never find it again. It’s gone forever, right? That’s kind of what it feels like, you got it, you got this win, and then it’s gone. There’s just this incredible feeling of frustration when that happens. And here’s the thing, frustration is an emotion, and when you trade with emotion …
Look at the spreads of MXC right now. Just looking at that, like that’s a big spread.
When you trade from an emotional place. When you’re emotional fueled, you end up getting too aggressive, you end up making mistakes, you can end up getting impulsive. So for me, you know I ended up being down 1,500 bucks, I recouped some of that loss on, let’s see, on AMTX on my first trade on it.
I jumped into AMTX, initially I wasn’t that interested in it, but then as I saw it squeezing up here I was like, okay I’m going to jump on this momentum, it looks like it’s obviously going parabolic. So I got in at 2.10, and added at 2.20 and added at 2.40, for the high of day break thinking over 2.50 maybe it would squeeze up towards three. So with this one I had 10,000 shares and I sold, I think I sold 7,500 and so I was at that point down only about 500 bucks on the day, and then I added back for the break over 2.40. Then I had to stop out here as it came back down to 2, and lost 1,500 bucks. So it’s like ah, you know I … again even on that one, I had profit and I didn’t hold it because I was looking for a bigger move.
You know, we’ve been in a market where looking for bigger moves has not been unrealistic, look at GBR from $1.99 to 12 bucks. Right?
Look at MXC, from $7 yesterday to $14 today.
looking for a big move is not unrealistic, we’ve been seeing a lot of big moves in this market. It just unfortunately didn’t happen for me on USEG or really on AMTX. I mean it happened, AMTX from $1.50 to 2.40, that’s a big move, I just got in a little too high, and I didn’t take the profit when I had it and I thought it would continue and I was wrong on that. So, I guess we haven’t seen in the last … Well maybe we didn’t see as much today is follow through on some of these stocks. GBR very weak, MXC rolled over, AMTX didn’t hold up, USEG didn’t do very well, MITC didn’t do very well, and TGC actually has sold back down to $1.50.
So, we’re kind of in one of those markets where the best opportunity is the first leg of the move. You know kind of right in here, and you’ve got to get in early. If you’re not in early then it’s like the trains left the station, and you can try to grab a little piece oof it up off high and maybe you’ll get lucky but the risk is just becoming higher.
So, you know yesterday I made $8,000. I’m not going to beat myself up today. I’m still green on the month, which is great. I’m still green on the week, $8,000 yesterday was fantastic, but today I think I was just, you know I was just wrong on USEG, that was the big one that got me. I think that it could have just as easily worked, I think it could have just as easily gone to 2, 2.10, 2.20, maybe 2.30, and that could have been a 4 or 5 thousand dollar winner. TGC could have just as easily opened at 1.60 and gone right to 1.75 and gotten halted, and resumed to $2, I mean that could have done it in one push and been a $10,000 winner. It just didn’t happen today.
So, you know when I look back on my trades, is there anything today that I would do differently tomorrow. Well, tomorrow that markets are closed for 4th of July, but is there anything I would do differently on Thursday? Honestly, I really wouldn’t say there’s a lot that I would do different because all of these had that potential to go into a circuit breaker halt, to open higher and to be a really big trade. Especially considering the market that we’ve been in for the last week. Now, I’ll say that on Thursday, I’ll be maybe a little more cautious, because I lost money today, but you know if I hadn’t lost money today or whatever the strategy today I would trade any other day. Really I don’t think there was any issue today. I think we just, maybe a little bit of slower market going into the holiday or something like that. Nothing I would really do that differently.
So, today is just kind of one of those days where I’m on the red side of the fence and it’s just. You just chalk it up to, all right that’s part of trading. My accuracy is between 65-70%, so today’s just one of those days where you know I’m on the other side. So I’m just going to write this down in my calender here, -$2,896.24.
One of the things that interesting with trading, you know if I had to stack up the $2,900 that would feel like a lot of money to be giving back to the market. Yesterday making $8,000 that’s a pretty big stack of money to take out of the market. It becomes this kind of thing where the amount of money made and lost, the numbers become so big, it’s almost like pretend money. I mean it’s real money but it just has this sort of like, for me at least, when you’ve made enough, you get this sort of detachment, where it’s like okay I’m down 2,800 bucks today, I’m not really thinking about how much money that really is. Or I’m up $8,000 yesterday. Or I’m up $315,000 this year, I’m not really thinking about how much money that is in terms of what it could but or what it would look like stacked up on a desk.
I just kind of keep myself focused on the trades, trying to take good quality set ups, trying to scalp the momentum, and the numbers are bigger because my share size is bigger. That’s it, you know if I get myself really hung up about how much $2,800 could buy then I’m going to start scaring myself away from stepping up to the plate. If I’m afraid to step up to the plate, I’m not going to have $29,000 green days like I had last month. I had two $29,000 days back to back. $58,000 in two days. All right that’s a crazy amount of money, and if you really over think it, you’re going to scare yourself and start taking smaller and smaller size.
So, I just kind of try to compartmentalize that aspect. Ah, today’s a red day, whatever. It could be 280 bucks, it could be $28, it could be 2,800, doesn’t really matter I’m doing to make it back you know later in the week. Later in the week I might have a $15,000 green day and you know I’m not going to let in change my mentality, I’m not going to let it change my spending habits. I’m just okay, that’s that and back to you know the drawing board, or you know back at it you know the next day. Nothing changes.
So, you know it’s a funny thing. I know for me when I first got started, it was very hard to detach the emotions from the money because it’s like every single trade just feels like you know you’re making or losing money and it can be stressful. The longer you do it, the more that the trading account is just kind of like this thing that you do. And then yeah every couple weeks you end up taking money out of it and dropping it in your bank account and then it’s real. But, in the mean time it’s just kind of focusing on the pattern, scalping and not getting too caught up in the numbers, whether they’re going up or they’re going down.
Going down obviously those number are more painful to deal with, but going up can be tricky as well because it can give you false senses of confidence. You might have made money because you got lucky, it may not have been because of accuracy or skill. It could have just been luck. So if you have really big winners, it can make you complacent, it can make you sloppy. Losers can make you gun shy and timid, and then you miss the next big mover.
So the best thing to do is to work on emotional conditioning. Where you’re basically conditioning yourself to not have emotional reactions when you lose money, or even when you make money. SO the best way to do that is to start with smaller share size. You know if I was trading right now with 500 shares, it’s like I could care less about the profit or the losses because they would, relatively speaking, be so small. You know, if I traded right now with 50,000 shares, that for me would start to bring out emotions because on a green day I might make 150,000 and on a red day I might lose 150,000, and that would be a lot of money. That would start getting emotional. So you start small and then you keep adding share size, you know to keep pushing your limits, and pushing your limits until you get to where I’m at which is trading between 15 and 20 thousand shares, and making anywhere from 30 to 40 thousand to losing 15,000 on a bad day and that’s all just kind of normal for me, at this point. I’ve conditioned myself to experience down $2,800 so many times that it doesn’t mean anything anymore. Up 8,000, it doesn’t mean anything anymore.
The only time I get kind of whatever is if I’m at the extreme. So if I’m having a 30 to 40 green day, then I’m going to start to feel pretty excited. If I’m having a red day down more than 10 grand, you know then I might start feeling a little bit bummed out and a little bit annoyed or frustrated. Everything in between is just kind of the noise.
So, you know that helps you focus less on the money and more on the strategy, more on the pattens, and more on what you need to do to be successful. You know to really succeed at this.
So, you know like I said yesterday was a great day, 8,000 bucks. Today is a little bit of step back. So, if yesterday was three steps forward, today is basically one step back. No big deal, it doesn’t really matter that much.
Market’s closed tomorrow. Thursday, Friday we’ll be back at it. Next week, you know hopefully this hot streak continues.
GBR I want to say that we’re probably going to be done with this one. You know with this big red day, I could be wrong. I mean this one’s faked me out a couple times, but with this kind of red day and the way it’s just kind of like this, I feel like it’s kind of done.
So now I’m thinking, and I mean I’d love to know, you know that’s just suck an incredible amount of selling pressure. It’s really nuts.
Anyways, just haven’t seen a stock drop that hard in a while. But, in any case, I think probably going into the weekend, we’ll be look at … Thursday and Friday we’ll be looking at the next stocks to hit the scans. So you know whether it’s a TGC type of stock hits the scan or takes off. These surprise moves seem to do pretty well. They kind of catch traders off guard, and we just sort of end up jumping right in.
Yesterday we were talking about that feeding frenzy mentality. Where you see something moving in the water ad you bite before you really think about it, and traders do that all the time. They see something starting to move and they jump, you know and the stock may not have news. Well, you know it may not have the best daily chart but next thing you know enough people have jumped that now the stock is going up.
So, on TGC initially I wasn’t going to be the first one to jump. I saw it a $1.01 and I thought, okay, I’m iffy on it I..