Warrior Trading Style vs Old Style Update

WarriorTrading Pro Style vs Old Style

My biggest con with the WT Style is that it leads me to mimic the b/o of candles/1min micropullbacks to the higher priced stocks/bigger cap companies which JUST DOESN'T WORK and indulges me to scalp/overtrade which at the moment snowballs into revenge/emotional trading.

My 2nd biggest con is that it works on smallcaps but there will be entries where it will just whipsaw you past your arbitrary stop loss point as shown during Ross's March/April troubles during a non-bull market.

This last 2-3weeks, I've been playing more higher priced stocks with market caps $10-$100+ Billion dollars.  I feel much more comfortable playing these except for the fact that it makes me feel like the money and time i've spent in WTPro has been useless for the moment.  I know in the long run, WTPro is worth it as the content really is worth it, it's just that the style is just not for me at the moment.  I will be applying it once we have a hot market like a sector play or the January effect again though.

On 10 May 2017, I had 100 shares NVDA with avg of $111.6 to start the day.

On 16 May 2017, NVDA Closed the day ~$137

Instead of gaining ~20%-37%, I only got 3-4% of it...

NASTY Lesson... Biggest opportunity cost was the fact I tried micromanage/scalp NVDA positions instead of just swinging it.

I'm still going to be trading the style as planned til end of July but with an even more restrictive set of parameters and no more 1min micropullback trades.

AMD/INTEL/Nvidia Rumor and Manipulation

There's so much conflicts of interest in my opinion with analyst upgrades/downgrades and obvious manipulation when you read the tape.  This rumor from last year regarding Intel-Nvidia license agreement has resurfaced and is spiking AMD stock yet again even while the market is crashing from Trump/White House news of classified information being leaked to Russia by Trump.

Here's my thing, I remember reading the agreement a few months ago and the way I interpreted it is that Intel has access to ALL Nvidia patents PRIOR TO MARCH 31st, 2017.  Afterwards, any patent registered by Nvidia after said date is off-limits to Intel.

People are having the idea that ALL Nvidia Patents will be off-limits after March 31, 2017.  My biggest thing is that Intel STILL HAS access to Nvidia's Pre-March 31st patents and those technologies will still take a year or so to become obsolete to newer products.

I can't believe how there's so much sheep actually believing this and the fact that big name websites/sources are running them via copy+paste.  "AMD-Intel Deal as reported by Blah blah blah". IT'S NOT EVEN CONFIRMED by either AMD/INTC/NVDA yet their stocks are taking the spikes/hits.  It's sad to see that even with all the SEC Oversight, rampant manipulation is not just in penny stocks/smallcaps but in big names as well.. It's just more hidden....

This is just like when Goldman Sachs crashes AMD Stock just so they can purchase them at a discount >_< or Downgrades/Seeking Alpha posts Crash NVDA stock back in february/march saying earnings will be down when earnings was a full blowout instead. Bleh...whatever.. 3 out of 4 actively managed Mutual Funds fail to beat the indexes and that same ratio applies to analysts... So many professional idiots out there.... i really don't like investing anymore.. As a trader, all I need to care about is volatility and managing risk.

AMD, NVDA, SORL, WB

NVDA

AMD

Shitty adds due to FOMO is coming up.  It's new that I've started to add into trades that are working, the problem is that the entries on the adds are sooo bad.  I end up stopping my whole position out which is better than what it was in the past where I would let it get to breakeven and lose all profits.

WB

I Missed the entry I wanted and froze.  I didn't want to chase and go for a pullback since the price is still extended from the 1min/5min VWAP/MA.

WEEEEIIIIIBOOOO....  Chinese social media Facebook/Twitter hybrid.

SORL

The only Warrior Trading style trade of the day. Bought at the green arrow and sold 1/2 on 1st red arrow and rest at 2nd arrow.

WEEKLY RECAP: May 8 - 12

8 May

FEYE

Can't remember what happened... Profit.ly is averaging all my entries and exits and I didn't write down anything after the trade except to screenshot the chart.  Will start adding a quick synopsis after trading that day and then doing a weekly review on the weekends.

KTOS

Green trade but commissions made it red. 200 shares size is too small. 400 is the lowest I'd go so I'm not sure why I decided to go 200 that day.  I need to make sure that I appropriately size my positions, not too big but not too small that the commissions eat me alive either.

10 May

NVDA

Am getting better at sizing in / out of bigger priced NASDAQS, the problem i'm having is that using the WT style, i'm confusing styles and end up scalping instead of basing it off the bigger move.  This should've been a swing long.. Sell half on the AM spike and hold rest/dip buy off VWAP.

PRTO

5 cent tick.. Chased my entry, shouldn't have done it pre-market and waited til open to see more volume.  Gap and go setup but wait for open on 5cent ticks to see better price action with the more volume.

MTBC

I entered on a 1min microPB.  Sold half and rest blew through my stop at breakeven.  My % on 1min PB and Micro PB have been really bad since i've been entering so far from the VWAP/MAverages.  I'm most likely going to limit trading these only during hot markets/sector plays and focus more on the other setups.

11 May

NVDA

My worst day ever and what I've been dreading from mixing WT style and My own style.  This feels exactly how I first papertraded and kept on scalping.  Buy high just to panic and sell low.  FOMO > Short low then panic and sell high.  I traded off emotions and nothing objective/supports and resistances.

I started the day off bad being -$100 realized then regain composure and getting up to $300 green realized.  The problem was that I had to go double my size.  I had called it quits right there and then but the stock kept on going higher and higher... but at the same time pulling away from VWAP.  FOMO kicked in for some scalps and I kept scalping well until EOD.

Mixing the scalp with longer TF, I had an entry of a scalp but with the exit goal of a swing/overnight long.  The BIG PROBLEM was that it was way off vwap and I'm in the trade well before power hour with very little volume to find out where the trend was.  I ended up getting stopped out well past the ideal scalp stop loss.

I fat fingered a short while stopping out and ended up covering high like an idiot.  I was trading off emotions and couldn't think clearly.  Stock closed well towards vwap and would've made money off the fat fingered short but I was in too heavy and just wanted out.

Tried to dip buy a falling knife.. One mistake kept snowballing into another mistake = revenge trading.  I included the share sizes in this trade just to show how bad doubling up / revenge trading went on the day. I ended the day -$300.

12 May

NVDA

Solid trades, kept composure and based trade off VWAP.

JWN

This I got off mike's alert, looked good to short but was too quick to jump in and not assess. RSI was oversold on both 1min/5min and was on it's 2nd down day already.  I should've expected another reset before resuming further fade.  Got stopped out.

SGMO

I had wanted to trade this 5cent ticker since I got a better idea on how to trade them from the idiotic PRTO trade.  Problem was that I was in NVDA at the time it was flagging.  I entered for the ugly F3 EOD flag/pattern but got stopped out at a point where I didn't plan on getting stopped out.  Lesson learned on 5cent ticks, is to set it a cent below where the level you want to get stopped out at.

Crossroads: Warrior Trading vs Trading Tickers/IU style trading vs MADAZ

January -- my style of trading has been to risk off support/resistances.  Buy dips/sell into strength.. Catching momentum using MACD to make sure i'm on the right side of the momentum.  The market was hot and I was on fire.  The trading crisis I had mid January was more due to psychological errors and had nothing to do with the strategy I was using.  I couldn't see it then but I ended up getting Warrior Trading to try and learn a more refined way of entering trades as well as a different strategy.

February - April -- I've learned the Warrior Trading style which has me looking into entries using candlesticks for the first time and really had a good intro into tape reading.  I've also delved more into swing trading while I studied WarriorTrading Pro.

Swing Trading -- It was a sloooow 3 months but it was a good experience since the emotional rollercoaster experienced during daytrading was slowed down to where I had time to analyze how I was feeling during the ups/downs of being in a trade.

     The euphoria of being in a profitable trade and the inflated ego/pride that cost leaving more than 70% of unrealized gains on the table.

     The depression of being in a losing trade and the emotions of denial, refusal to be wrong, reluctance of taking a loss, and changing the original plan to rationalize my emotions instead of acknowledging what the market is telling me.  Each wrong led to another wrong which snowballed me into a psychological trap that I couldn't get out of until the loss became too great to ignore.

** Rule #1: Cut Losses and stick to stops
If I didn't learn enough on seeing NVDA crash after a positive ER, It didn't stick till I was in AMD when It crashed on in-line ER.  At least it's at a discounted price now.

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My problem right now is that the core WT style of trading contradicts my old style using established supports as risk levels.  Instead of being selective of my trades, I've started to get in lower quality setups.

Huge advantages of WT Pro is that on extremely hot markets, I now have learned tools such as reading candlesticks/level 2 to use to enter/set my risk.  I'm still getting used to reading the Time/Sales while looking at level 2.

Huge disadvantage of WT Pro is that on sideways/bearish markets.  Whipsaw action are huge due to setting risk levels on arbitrary price points and not on previously established support levels.  Ross has had a tough time trading through this and It felt like a huge WALL trying to trade in a clear bearish/shorter's market.  This is a previous chart I uploaded on the Gap and Crap:

It's nice to have learned WT Pro style and it will be a tool for me to use during overall hot markets for hot stocks.  I've felt sideways on this since I did spend alot for the WT pro that I could've used as capital but I feel that it was worth seeing that I did get what I wanted out of WT Pro.

1) Control FOMO/Find ways to spot when i'm chasing on Longs/Experience first hand what happens when you chase seeing Ross have a tough time and go through trader Rehab for April/May.
2) Tape reading..

I ran into MADAZ on youtube, another scalper that is also a very fast tape reader. Back in December, I couldn't decipher anything that Ross was looking at, but now I've got an idea at what he sees.  MADAZ on the other hand adapts to how the market is doing and scalps both long AND short.  What more that I like from him is that he doesn't focus on where and how the candlesticks close but focuses specifically on support/resistance levels and how the TAPE reacts around those areas.  Which is how I trade back in january but he does it in the timeframe of SECONDS.

https://www.youtube.com/watch?v=8HfvGHz7Av0&list=PLR26t0AnySjkLkxETkds3qcYVyQe_l3kp&index=5

** I've noticed that lagging indicators are always behind the price action so I started to use multiple timeframs back in December to make sure that i'm on the right side of the move.  But now, I've also noticed that candlesticks in different timeframes can tell different stories. The true indicator of where price direction really is the tape, the one limitation of it is that the larger the timeframe gets--the importance of tape reading gives way to higher TF support/resistance levels--but at the same time keeping in mind that any unknown large trader/institution/catalyst can easily break those same levels.

I've actually noticed this before last year then during the open when stocks would crap in the open--hit a support level--and shoot straight back up green always wondering why it just didn't shoot straight up.  What would happen then was that I would buy at the bell and sell into the panic just to watch it bounce of the level and go green without me.

** MADAZ pretty much trades just that in the open.. support/resistance levels but on a scalping time frame.  What scares me though is not having enough experience watching the tape to see the difference between a levels holding or the price action BLOWING THROUGH the level.  This one fact along is the main reason why I can't do a scalper's timeframe and need a slower TF to trade off.  But now that I've seen a scalper use support/resistance levels as his stops than using arbitrary stop points--I've got more confidence back towards my own style of trading.

Importance of CATALYSTS

It's hard not to get into a trade when the chart pattern sets up well but with no know catalyst.  I've stayed away from them while Ross had a hard time playing them.  They do have potential though, most of these no catalyst but good chart pattern plays are short squeezes and I need to read the chart first whether I can tell there are shorts trapped or not in order to play.  If not, I need to stay away from the chart.

FEB-APR Lessons learned:
1) Understanding what the catalyst is important for future potential momentum
2) Stick to stop losses
3) Take 2-3 Days off to reset after a big rule break/Have an emotional thermometer beside the Monitor.
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Stats for 21 April- 5 May
GapGo ----------------------- 1g
MOMO/1min MicroPB --- 2g/2r
MOMO/1min PB ---------- 1g
MOMO/5min PB ----------
MOMO/ABCD/MA PB -----
F3 EOD ---------------------
Short ------------------------ 2g
BAD ------------------------ 1g/7r


16 trades
7 green
9 red (8 were bad setups)
43.75% W/L Ratio #### Commissions

May 2nd Week Trading Plan-
60%+ W/L Ratio:
1) Focus on High Quality Setups
2) Sticking to stop losses
3) Picturing how the trades will be executed/my responses to the trade if it goes up or down--prior to taking the trade.

September Plan - Get capital ready to switch to CenterPoint Securities to focus on shorting.  Shorting is really where I feel like should be at.  I can easily see where my stop losses are at much easier and feel like it's much easier to execute the loss than being in a long trade where my reaction is to hold hoping it'll bounce back.

EXAS part deux

1st buy was b/o of pre-market high. I gave it too long to break 31 and should've sold just under.

2nd buy was a 20cent risk to go back to HOD 30-40cents.  A 1-2 Risk/Reward ratio except the fact that I had to go to a promotion ceremony/assignment briefing.  This cements that I shouldn't leave a trade open.  I justified that It would be a hold til end of day/I'll be back by power hour.  I missed the opportunity to exit my trade whilei I was gone and I came back as it was dancing around the Vwap at breakeven point.  Instead of being able to fully re-assess the pattern, I rationalized that I will be turning this into a o/n swing just like my AMD mistake.  The day trade should've been exited out at breakeven or next support at 3.20-3.30 area but once it fell down to where it opened on the day at 3.20 I changed the exit level again down to just break below 30--set a stop loss and logged off/went to sleep. Arbitrary number since a stronger support/prev. afternoon support was at 29.5-29.6.  I checked back in when I woke up at night to see it hit my stop loss.

Pros:
1st buy was good entry, was slow on exiting once 31 was facing resistance. Best to miss out than to give back.

2nd buy was good but how it was managed was horrible and a repeat of my AMD daytrade-turned-to-swing trade mistake.  I got tunnel visioned when I got back and it was hovering at VWAP.  Looking back at it at hindsight, I couldn't see the descending triangle that formed and wasn't able to get out of the trade.

******************* +1 Day after *******************
Ugh... I called yesterday that my stoploss just below 30 was an arbitrary number and the strong support was at 29.5-29.6.  I took the morning off but this is what happened.  There's a huge dissonance between how I traded using TradingTickers/IU vs what I've learned from Warrior Trading and it's night and day on.  I'll post more on this later but it's troubling me for now till I find a way to find a compromise between both strategies.

** NEW SYSTEM Proposal **
Every 10/15/30/60mins or intervals during a longer trade, I should re-assess my position as if I have no position.  Learning the WT Scalping way is making me forget how to assess where strong support/resistance levels are.

** Will edit this when I have more time

EXAS

Some movement pre-market but they had no good positive catalysts... EXAS was an earnings winner but higher priced/market cap so I went in small..

1st buy went as planned, need to work on the exit

2nd buy went well with good exits

3rd buy saw topping action and exit-ed to be safe.. noticed it reversing

1st short went well with good exits

2nd short exit-ed right before the crack

3rd short was FOMO trade from missing the crack of support... tried to exit at 28.6 but platform crashed and got out at 28.85 once it restarted.

Pros:  Exiting trades as planned if not early.  Better to miss out than to give back..

Cons:  FOMO, I knew it was a FOMO trade much earlier though and was fully aware of it and having a tighter stop than normal.  This trade was a repeat of my NVDA swing with the same emotions felt.  Much better traded than the NVDA swing and much more aware/control over my emotions affecting my trading.

Nice F3 EOD Pattern for a swing but I wasn't in the market.

**** CATALYSTS ARE IMPORTANT !!!

** Will edit this when I have more time