Ross Cameron - Warrior Trading - But I do have some bad news...
The speaker shares insights from a recent trading session, highlighting two successful trades: a biotech stock and a coffee company. The biotech stock was a typical breakout, while the coffee company was unexpected due to its sector. The speaker emphasizes the importance of using scanners to identify top gappers and trading early in the morning when opportunities arise. He also discusses the significance of adapting to market conditions, being aggressive in a hot market, and having a structured daily trading process. The speaker advises new traders to practice in a simulator before trading with real money and to focus on building a consistent trading process.
Key Points:
- Use scanners to identify top gappers and trade early in the morning.
- Adapt trading strategies to current market conditions; be aggressive in hot markets.
- Practice trading in a simulator before using real money to build confidence and skill.
- Maintain a structured daily trading process, including a checklist for preparation.
- Focus on consistent, smaller trades to build a cushion in volatile markets.
Details:
1. đī¸ Introduction & Unexpected News
1.1. đī¸ Introduction
1.2. Unexpected News
2. đĻĢ Groundhog Day & Special Sale
2.1. Groundhog Day Prediction
2.2. Special Sale Event
3. đ Trading Success & Market Insights
- The Groundhog Day Sale at Warrior Trading offers an extended opportunity to learn day trading, especially during the prolonged winter season.
- Participants can immerse themselves in a community of traders, enhancing their skills and knowledge through shared insights and real-time trading experiences.
- The promotion includes access to exclusive resources, mentorship programs, and potentially higher success rates in trading due to community support.
- Engagement in this sale can lead to improved trading strategies and increased market understanding, making it a strategic move for traders looking to capitalize on winter downtime.
4. đ Morning Scans & Trade Highlights
- Total profit of $18,615.40 achieved by trading two stocks, highlighting effective trading performance.
- Biotech breakout news stock resulted in a profit of $1,138.48, demonstrating a successful news-based trading strategy.
- An unexpected 70% increase in a coffee company stock was capitalized on, showcasing adaptability to market changes.
- Leading gainers identified were lower-priced stocks using a gap scanner before the market opened, which is a strategic approach for identifying trading opportunities.
- Successfully traded Reborn Coffee (third gapper) and BCX (fifth gapper), indicating effective use of gap scanning to select trades.
5. đ Deep Dive into Trading Strategies
5.1. Trading Strategy Overview
5.2. Reborn Coffee Case Study
6. âąī¸ Early Trading Tactics & Challenges
- The trader hesitated during a breakout, missing an early opportunity and entered the trade late at 7 a.m., resulting in a less favorable position as the price was already rising.
- A micro pullback trade was executed at $659, with the price initially increasing to $720 and $750. However, the trader miscalculated by increasing their position at $8 expecting further gains, which led to losses when the price dropped to $7.80.
- Approximately $5,000 was lost due to the price failing to break $7.80 again, illustrating the challenge of taking profits and managing risk effectively.
- A significant stock increase from $1.70 to $8 over two days (nearly a 400% rise) was not fully capitalized upon due to missteps in timing and position sizing.
- A different early trade at 7:30 a.m. on stock BCT X, despite favorable news, resulted in modest profits of $1,000 to $1,500 due to cautious trading and smaller trade sizes.
- Caution was exercised due to light trading volume and the presence of a 20,000-share seller at $640, which influenced price movement and limited potential gains.
- Attempts to trade dips and push for a higher squeeze to $7.87 were made, but topping tails indicated potential reversals, prompting a cautious approach.
7. đ Market Trends & Trader's Mindset
- Profit of $111,000 was achieved from a stock movement of only $1 per share, highlighting the potential returns from small price changes when using large share sizes.
- The trader is focusing on 'base hit' trades due to the current hot market, implying a strategy of consistent smaller wins rather than waiting for large price movements.
- The trader aims to average $20,000 per day, which aligns with historical high-market periods like the 2020-2021 GameStop era.
- Since November 1st, the trader has averaged approximately $21,000 per day, showing significant improvement from $2,000 per day on October 1st, indicating strategic or market changes.
- If the $20,000 daily average is maintained, it could result in $5 million annually by 2025, emphasizing the potential scale of consistent trading success.
- The trader acknowledges market volatility, noting that while the current market is hot, it may slow down, necessitating adaptability and a focus on capitalizing on present opportunities.
- The importance of having a daily trading process and checklist is stressed, including factors like personal well-being and market analysis, to ensure readiness and maximize trading potential.
8. đ Future Plans & Trading Advice
- Reflecting on past market conditions, the speaker highlights the importance of being more aggressive in favorable trading periods, such as 2020, to maximize profits. For instance, identifying and investing during bullish trends can lead to substantial gains.
- In 2022, the Federal Reserve's historic pace of interest rate hikes led to a recession and a slowdown in market activity. This highlights the need for traders to adapt quickly to changing economic signals and adjust their strategies accordingly.
- The strategy of maximizing efforts during bullish markets and exercising caution during bearish markets is emphasized. This approach has been instrumental in maintaining a financial cushion during downturns.
- Patience and adaptability are crucial in trading. Traders should capitalize on opportunities during bullish markets and adopt a conservative approach when the market is slow to preserve capital.
- An invitation to join a live trading session at 7 am EST is extended, offering real-time engagement and learning opportunities for traders looking to improve their skills.
- A reminder about the risks involved in trading is given, stressing that results are not typical and urging individuals to manage risks and practice using simulators to hone their skills and strategies.