Ross Cameron - Warrior Trading - +$12,544.62 in 10 Minutes of Day Trading a Biotech Stock
The speaker provides a detailed account of their trading activities, highlighting the stocks they traded, reasons for choosing them, and the outcomes. They mention a successful week with a total profit of over $100,000, despite a challenging day on Wednesday. The speaker emphasizes the importance of market volatility and liquidity in their trading strategy, allowing them to take large positions. They discuss specific trades, such as OST TX, where they took a 40,000 share position due to high volume and liquidity, resulting in significant profits. The speaker also reflects on their trading goals, noting a $20,000 daily target in a hot market, and discusses their approach to risk management, emphasizing short-term capital use to minimize exposure to overnight risks.
Key Points:
- Focus on stocks with high volume and liquidity for larger positions.
- Set clear daily and weekly profit goals to guide trading activities.
- Utilize market volatility to capitalize on short-term trading opportunities.
- Manage risk by avoiding overnight positions and focusing on day trades.
- Reflect on trading performance regularly to adjust strategies and goals.
Details:
1. 📈 Morning Trades Overview
- The daily market recap focused on morning trades, highlighting strategic stock selections based on detailed market analysis and potential growth predictions.
- The rationale for choosing specific stocks was explained, emphasizing factors such as market trends, historical performance, and anticipated future growth.
- Entry and exit points in trades were analyzed to optimize profitability, detailing specific metrics used to determine these points.
- A notable outcome was achieved with a net profit of $1 for the day, showcasing the effectiveness of the trading strategy.
2. 📊 Weekly Performance Recap
- The best performing day of the week achieved a peak revenue of $33,000, marking a significant high for the period.
- Wednesday was identified as the weakest day of the week and month, yet it still exceeded the $5,000 daily target with an $8,000 revenue.
- Early in the week, both Monday and Tuesday consistently delivered around $20,000 in revenue each day, aligning closely with daily targets.
- The strategic aim for the week was to reach a $100,000 profit by setting a $20,000 daily revenue goal.
- Despite experiencing a low-performing day, the overall weekly strategy was successful, nearly meeting the $100,000 target due to robust performance across multiple days.
- Compared to previous weeks, maintaining a performance above the set daily goal indicates a positive trend and effective strategy execution.
- Subsequent weeks could focus on minimizing low-performance days to consistently meet or exceed the $100,000 weekly target.
3. 📉 OST TX Stock Analysis
- The trader started the week with $89,000 and achieved a total of over $100,000, indicating a weekly gain of at least $11,000, showcasing effective short-term trading strategies.
- By the end of February, the trader's monthly total was nearing $300,000, reflecting strategic long-term growth and consistent profitability.
- Market factors such as volatility and liquidity were crucial, allowing for large position sizes that maximized profitability.
- OST TX was identified as the most profitable trade of the day, highlighting the importance of stock selection in daily trading success.
4. 🔍 Detailed Trade Breakdown
- A significant trade was executed on OST TX with a 40,000 share position, capitalizing on high volume of 33 million shares traded against a 16 million share float.
- OST TX showed multiple pullbacks and breakouts, peaking at 414, with a crucial trade at the 350 breakthrough.
- Initial skepticism on OST TX due to its high float was overcome by its strong movement and sector performance, initiated by a scanner alert at 270.
- The first successful trade on OST TX resulted in a $1,500 profit through strategic buying at $3, holding, and re-adding at $3 support.
- A strategic large position breakout trade through $4 reached a high of 4115, yielding approximately $112,000 profit.
- A 10% gain was achieved from 350 to 380 by effectively scaling in and out during the trade.
- Smaller trades included SMX with a $1,300 profit and a break-even result on xh lld after a dip buy at $11.
- JTI was observed but not traded due to unclear acquisition terms, despite unexpected movement post-announcement.
- KDLY and MBRX were monitored for potential continuation, with MBRX showing erratic and flushing behavior throughout the day.
- Despite initial doubts, the OST TX trade was the most profitable, aligning with sector trends and stock movement, despite being atypical due to its float.
5. 🛑 End of Week Reflections & Advice
- Current daily earnings are at $177,000, slightly below the $20,000 daily goal set for a hot market, while the regular daily goal is $5,000.
- Over the past five months, the average daily earnings have been $20,000, projecting a potential $5 million profit over a 12-month period if maintained.
- A drop to a $10,000 daily average would result in a $2.5 million annual profit, whereas a $5,000 daily target would yield approximately $1 million annually.
- The speaker has been aggressive in trading due to ample market opportunities, though choosing to slow down as the week ends due to a lack of clear trading prospects.
- Despite not meeting the aggressive daily goal today, the weekly goal was exceeded, indicating overall positive performance.
- The market will be closed on Monday for President's Day, with a planned return to live streaming on Tuesday morning.
- Trading is highlighted as risky, with advice to manage risk, take it slow, and practice in a simulator before trading with real money.