What's up everyone? All right. Ross here from Warrior Trading and I'm back for another month in review This is February 85 000 in total profit. Ended up being a good month. I was pretty happy with it.

Could have been a little better. I've got the calendar up here. Had two, four, Six red days. Uh, two, four six eight, ten, eleven green days.

so that you know could have been a little bit better ratio there. I usually wouldn't mind like one red day a week. So six red days is a little a little higher. But overall, uh, not bad.

Eighty five thousand dollars and I had two phenomenal days. I had one day where I was actually up, uh, just about a hundred thousand dollars. I tried to go for that final trade, jumped me up over a hundred, gave back a little profit, finished up 65 000. The next day I made 50 000.

So in two days, over a hundred thousand dollars of profit. That was awesome. This is probably a good time for me to tell you that my results are not typical. Most beginner traders do lose money, so please take it with a grain of salt.

And as a beginner trader, you should trade in a simulator before you put real money on the line. If you're a new viewer on the channel, I hope you hit the thumbs up and subscribe. Uh, two exciting things. One, when we cross over one million subscribers, I'm going to do a new small account challenge.

So my account right now has got 700 000 and I've got a fairly big account. I'm going to start over with a new small account challenge when we cross a million subscribers and every morning Monday through Friday I do a live day trading morning show where I give you a little bit of a preview of my watch list and sometimes I'll take a few trades during the morning show and then I'll stream the rest of the day just for traders over Warrior Trading. So make sure you subscribe and click the notifications bell. So when I go live each morning for the morning show, you get the notification and you can tune in.

All right, So let's jump into it. Let's review: February 85 000 in Profit Month in review. All right everyone. Well, uh, here we go.

It was, uh, quite the month. 85 000 to finish the month, but not clean. I had a very slow start to the month, which was partly because, uh, I had come off kind of a rough month in January, so you know, sort of a slow start. A red day here.

I took the day off on my birthday this year. learned the lesson from last year where I lost 275 000 on my birthday. Did not want to repeat that so took the day off on my birthday, was out on Monday, came back Tuesday read: Day 11 000, read on the month, recovered by the end of the week. finish the week green going into the second week green and then two big red days down.

30 grand in two days recovered with the two best days of the year so far and on this day 116 trades I was up over almost a hundred thousand dollars. I hit 90 000. I went for those final trades to get myself up over 100, gave back a little profit off the top, but still 65 000 is a great day, 50 000 on that Friday and those two days made my month. Uh, ended up finishing the third week or the fourth week red and then uh, a small green day to finish the month.

So if we look at the Um the equity curve, you know it's like a little profit. Two big red days, two huge green days and then started to give it back and I gave back. you know, 20 percent, 30 off the top which is annoying. If we look back to the month of January, you'll see that my 60 day equity curve is quite a mountain range.

It's up, it's down, it's back up, it's steep up, and then back down again. I can't seem to get it, just nice and steady. But if we, um, if we went back, you know, 90 days or something like that, it doesn't look as bad it was relatively. You know, I'm just in a little bit of a stretch here that's been a little slower, which is never fun, but it's certainly part of trading.

and so if we look at the calendar for February, uh, obviously these two big days were um, uh, you know that that was where I crushed it And the stock was Ispo and Angh. So I'll pull up those charts for you so you can see them. Uh, pretty pretty epic. Uh, angh was the sympathy stock.

Ispo was the primary Momentum stock. you know, son of a gun This thing. I mean, it was. It was crazy.

So at pre-market it went from 12 to 30 bucks in one candle on very light volume. And this was a recent ipo stock. So a recent ipo? this is. oops.

Let me move this down. Um, let's see there we go. Sub Char. All right.

So recent ipo stock and it just it goes crazy. Now, one of the things that's interesting about recent ipos and recent ipos. It's a setup that I've traded for a long time. It's a setup that I've taught as part of the Warrior Pro Momentum strategy.

It is a powerful setup for a couple reasons. Number one: Usually when a company does its initial public offering and they sell shares onto the market, there's a lockout period where they cannot sell. So you know a lot of times an ipo will give an insider the opportunity to cash out, right? They can raise money, but they can also cash out. There's people that will happily buy their shares at a premium, so it's very common at a certain point during an ipo and after an ipo that you do see a period of selling.

Um, you saw it on Facebook for sure. There were a lot of you know, people that were happy to take profits. Um, you know you go back like this. This was then.

the Facebook ipo was actually pretty, uh, dreadful. But you had this um and part of it was because it was probably overpriced. Anyways, it pulls back for a while and it took like a year for it to kind of rally back up. Twitter was sort of similar.

You know these. This is a very common story. Um, ipos. A bit of a pullback before a rally.

So this this recovered, um, faster. But in any case, so um ispo recent ipo setup. Uh, so typically insiders are not going to be able to sell. Uh, there's a there's a quiet period and a lockout period.

Um, so that's number one that's going to create. and these are sort of. We're talking about the scales. a little bit of supply and demand.

So when you have more sellers, that's going to create more supply and you'd require a higher level of demand to overcome it. So on the sell side, we don't have insiders selling shares. We do not have a high likelihood of a secondary offering within a week of a public offering, or a stock merging into an Ipa. or merging into its initial.

Um, it's initial. trading if it's a merger or a Spac, so you're not likely going to have a shelf registration which is an S3. That's more getting into its technicals, but you're not likely to see a secondary offering when you have a stock that's been beaten up for a long time. Secondary offerings are a real concern.

A stock that's been beaten up for a long time that's starting to just kind of curl off the low. Um, this. let's see this one. Actually, this one's not even really that beaten up.

but you know, like. But in any case, this was actually a recent ipo stock as well at the time, right? Same setup as a turn as Um, as it turns out, but I was thinking about it Now, you know, a couple years later. So like down in this area, you know, on a day where it's popping up down here, you know, Now you're a couple years after the ipo. you do start to have the risk of the company doing a secondary offering, selling more shares onto the market to raise money, selling more shares, increasing supply, Again, diluting the value of the stock.

That's not good for momentum. But on ispo. Uh. this one, uh, of course, uh, gave us a pretty huge move.

So uh, a couple other things on uh, recent ipos. Often they can be really hard to find shares available to borrow. At one point I found shares available to borrow. on this.

and to borrow ten thousand shares would have cost me sixty five hundred dollars. It would have cost six thousand Five hundred dollars just in borrowing fees. To borrow six thousand, uh, Ten thousand shares. So that's that's astronomically expensive.

Uh, and that's gonna. and that was. I mean, it's gonna make it's gonna basically make short selling, um, very difficult. So all of that, uh, can lead to a parabolic situation and that's what you ended up getting here.

This stock went from uh, the previous day 12 bucks all the way up to 108 dollars. It was incredible and I had a beautiful trade through this area here. This trade is, uh, right now live on Youtube let's see and I'll give you the link here. We'll put the video up in the corner here so you guys can check it out, but this one is live on Youtube.

It was posted, let's see. So it was, uh, where was this? Well, it was. It was posted on the day that, um, that I took that trade. Here you go.

Okay, so uh, seventy eight thousand dollars. So uh, that was right there. And fifty one thousand was the next day. So check out those two morning shows if you haven't already.

So that's a live morning show where I was actually trading uh during the show and I ran the live morning show a little bit longer. So again, if you're not already subscribed to the channel, if you're a new viewer, make sure you hit the subscribe button because I do my morning show every morning and sometimes when we've got some really great action like that, I'll stream a little longer because it's something pretty special. So I was trading it in this area here and we got the move back through the high first. pullback, squeeze, higher, pull back, squeeze, higher, halt down, rips, back up all the way to 108.

Incredible. Now what was interesting and this is very common is we started getting sympathy momentum and we got sympathy momentum on Angh. I wasn't really expecting it initially. I sort of said i don't know, I'm not sure if this one's going to really be the one.

It popped up here. it halted up, it went to 14 and then it pulled back, and then in the afternoon it went all the way up to 34 a share. So why was Angh sympathy momentum? Angh was also a recent ipo. so was Sky H.

Sky H was another one that was a recent ipo that's actually continued into March. There were there were several others, um, I can't remember all of them now off the top of my head, but uh, Ispo and Angh were the leaders. Uh, but both of them came back down and you know a Isp is back down at nine dollars. which is a good reminder if you're day trading these types of stocks that we're day trading.

We're buying and selling. We're trading. We're not wanting to marry these stocks, We're not wanting to hold them in our retirement accounts for the next six years. These are not large cap stocks like Facebook or Twitter or whatever.

These are small cap companies that have a short-term imbalance in supply and demand and have these bursts of momentum. And this type of volatility can present opportunities for active traders. And it's your choice whether or not you want to try to capitalize on them. So we did get some nice opportunities on this one.

and that, really, um, you know that changed my entire month. I mean, those two days were basically all the profit from the month and the rest of the month was kind of like, you know, a net loss if you think of it that way. all of my profit on the month came from two days and basically from two stocks. And that almost makes me rethink my approach of trading every day because all of this was just a grind.

The problem is, you know, you could say, and sometimes I think this, well, what if I? what if I actually have the willingness to sit on the sidelines and to not trade if something doesn't really look good? Well at the beginning on Ispo. When I first started trading it, I wasn't really super into it because the spreads were big and the volume was light and so I traded it with really small share size. um you know and then next thing I know with 500 shares I ended up being up 3 500 bucks, 4 500 bucks and the next thing I knew I was up 10 000. I was like wow, Okay now I'm getting a cushion.

If I hadn't been in my regular routine of just sort of, you know, actively trading whatever was moving and waiting for it to be really good. By the time it looked good, it was would have been too extended to even trust it. And then yes, I could have waited and taken this pull back in this area. Maybe.

But even at that time I don't know if I would have felt confident because it was still up so much so and it was extended. So you know, trading every day has its pros and cons. The pro is that you're in the market every day. If something starts moving, you're going to see it.

Sometimes when things start to open up or when you know a stock is first on the scans, it's not that interesting and you have a couple base hits on it and then all of a sudden you know someone's getting squeezed out to the short side. or there's someone out there trying to buy a huge position and next thing you know it's up 40, 50 son of a gun, it's up 100. Wow, this thing keeps going. It's up 200 percent so it's not always clear.

You know, like if I was going to set an alarm to only notify me like if something was the i don't know what that line would even be. You know, the stock that I traded today ended up. I started trading at like 50 gain. It went up to like 110.

Um, and then it topped out there and came back down. It didn't continue higher. So you know you could say oh, I'm not going to trade unless it's up at least 100. Well you know, sometimes that works and then sometimes 100 is where it tops out and you miss the whole move from 50 to 100.

So it's hard to say. but I I do find myself. so this is what I find myself struggling with and I'll go on split screen for a second here. So what I struggle with is the fact that um, at the very beginning of a move and in any mark.

So in any market I I'm going to use this analogy. I'm thinking of my dog June who chases squirrels and chipmunks and rabbits and she'll chase anything that's running. And as a Momentum trader, you train yourself to chase. And that's because Momentum trading is by high sell higher for intraday trading.

It's a great strategy that I really like. Yes, buy low, sell high works if you're Warren Buffett and you can hold something for a few years. But in the in the context of one day or even an hour, there's there's not enough time to buy low. Sell High.

I mean, you could buy, maybe off support, but even then you're still buying high. It's up a lot. It's above the volume weight, average price. it's extended.

You know all of those types of things. So the the challenge that I have is that when something starts squeezing, when something starts moving, it's like seeing a chipmunk immediately. very quickly. I need to make a decision.

That's partly intuition, and there's a little bit of impulse. There needs to be a quick grab, a quick jump, and the problem is in a cold market. What we often see are these false starts. Something starts to open up and then it doesn't follow through.

the volume just kind of disappears, and then it just drops. And that's the pop and drop. It pops and then drops. and sometimes it ends up lower than before it even started.

You know you now have short sellers that are coming in and aggressively shorting anything that pops up. And what's really challenging is keeping the presence of mind of what's the condition of the overall market because it's not something that you are seeing in the moment when that chipmunk is popping up. you know. So like for for June for girl, you know that chipmunk starts to run.

You know it, she's not gonna have in that moment, she's not gonna be able to hold that greater sense of, you know, is the deck icy right now? You know, is it. did it snow and rain last night? Or you know, is it whatever I mean she's She's so hyper focused and I think an attribute of a lot of successful traders is an ability to be hyper focused to sometimes not be thinking about the risk of a trade. I mean, you have to be mindful of it, but you yet, when you're really being aggressive, you've got to be like in there, you've got to be trading and you can't get yourself scared. You know it'd be like, uh, you know, walking a tightrope.

If you start just freaking yourself out and overthinking, you've got to be super focused on your task at hand. And when we're in a cold market, I find myself jumping and then getting smoked. Jumping. Getting smoke jumping against smoke and it's hard for me to slow myself down.

And because those attributes and that strategy and that willingness to be that aggressive pays me so well, when the market is hot, I'm hesitant to throttle it back. You know, things that I could do that I've thought about. I could take money out of my account. well.

but then what about the two days when we have something that's opening up and I need the money there? You know, those two days changed my whole month sometimes. And so here's something I actually did do. On the 16th I emailed my broker and I said cap my max position size at 15 000 and one share because I don't want to take big size. I'm getting frustrated.

You know, I. I just I'm frustrated. So they're like, okay, fine. so these two days I made that profit with with not more than 15 000 shares in any one position.

But the fact is, that didn't really make a difference on that day because the stock was ispo, You know it was so, um, it was so expensive I wasn't even able to take positions that big. Uh, I was. and it was. Spreads were big and everything else so I didn't even trade.

I mean, 15 thousand was my cap, but I didn't even trade that. Um, you know when you have something that's um, lower price like we had this one? Um, here today. Let's see one minute. Fifteen thousand shares? You know, 15 000 shares? Um, isn't enough on on something like this? Um, 24 hour.

So on this one you know this is a two three dollar stock and this right here is a move from 367 up to 420. I want to be able to buy more than 15 000 shares. So then the other thing that someone had mentioned is I said well what if you limit your buying power, you know, cap your buying power to 100 000. That would still allow you to take 40 000 shares of something like this, Or thirty thousand, whatever.

Uh, twenty five thousand, maybe. uh, but it would, um, you know, keep your share size a little bit smaller. On something like Ispo, you'd only be able to take maybe two 000 shares when it was lower and then maybe a thousand as it gets higher and that's not a bad idea. And then of course, if something is really really opening up, you could always email your broker on that day and say hey, can you lift the you know, lift the restriction.

Today's the day where I want to go big because what I find myself doing is I see something starting to open up and even though I know that I've maybe said don't trade more than 15 000 shares, I'll just lift that limit because I I'm seeing this and I'm like let's go, it's time And then when I get smoked, I'm sitting there thinking man, what's the deal you know In that moment I was so hyper focused I just went all in and then I I got smoked and it really the market wasn't hot enough yet. Why did I do that? So that's left me feeling sort of like, um, a little frustrated with myself because I'm just I've tuned my training to be so aggressive and you know. I mean I can't say it hasn't paid really well, but when the market is choppier, it's been difficult and so with you know, the overall market. The S P 500 with everything that's um, you know, kind of been going on here.

We've had this, um, fairly substantial pullback. We're below the 200 moving average. You know, this is sort of Bear market territory now. Maybe you know, end of March? You know we end up getting back above the 200.

That would be great. but you know it depends a lot on things that are happening in the um, you know, global world and I I don't know what's gonna happen. So if we stay in a Bear market and it continues to be cold, I'm gonna have to throttle it back a little bit and either be willing to sit on the sidelines until something like this sets up and then get aggressive. you know, or be willing to just trade with smaller share size kind of across the board until something is up more than x percent and then start to size up.

I? I don't know, it's it really is difficult for me. I'm not sure the answer because it feels just so counter-intuitive and I'm trying to scale my strategy. I'm trying to be aggressive. I'm trying to go big and the the market just is not supporting that right now.

So you know the fact is, at the end of February, uh, I finished. I was at about 112 000 on the year. Uh, if you compare that to 2020. At that same period, I was at 66 000.

you compared 2019 2019. I was at Um 228 2019. I was at 133 000. Uh, you know, 2018 I was at 100 000.

So you know. and I'm excluding 2021. Why? Well, because I was at 1.2 million and I don't really need to see that because I know that that was because of Gamestop. So that was an anomaly.

That was. That was awesome. But that was 2021. That's not going to be the norm every year.

So 2022, I'm basically kind of right back on track to what I would have been in 2019, 2020, 2018. Uh, if we, you know, during years where you don't have game stop, so that makes me feel a little bit better. Um, at the same time, I honestly think that I could make more money if I could take my foot off the gas sooner. On days where I'm spinning out, on days where I'm not trading, well, you know, like the second I'm down five thousand dollars on the first trade.

Like, is that the cue Just to say. All right, that's it. I'm stopping there and I've thought about doing that. I've thought about setting max loss on my account at like a thousand or five thousand dollars.

So you know, if I'm below that, I can't take any more trades. I do have a max loss set right now. I think 30 000 and I have my Mac share size right now set at 50 000 shares. so they're those are both giving me a little bit more room And that's not always a good thing.

especially not in this market, you know. But on a stock like Pik, I needed to take you know, 50 000 shares, 40 000 shares to make to make good money because it doesn't have a huge range. it's a cheap stock so I needed to be able to do that. I had a good day today, which is fine.

Um, you know, and this you know this was uh, this was a fine chart so nothing wrong with these trades here, but I needed the position size. The problem is, can you restrain yourself to not use it on the choppy stocks and it's hard? It's really really hard. So anyways, um, February ended, um, relatively well. Profit loss ratio was not as good as I would have liked.

I had the biggest, you know, 38 000 loss was bigger than my 20 000 biggest winner 67 Accuracy. Well actually this is this is through the whole Uh year, but even if we look just at Um. February, it's not gonna be that much better. So it's a little bit better, but not that much.

So yeah, I've got a little. I've got a little work to do, but the good news is I'm building a cushion. uh, slow and steady my initial goals for the year. You know, since last year I did 3.8 million, I sort of thought if I can do 200 000 a month, you know 2.5 million is within reach.

And I was doing about 200 000 a month during most of my slow months last year. So I thought, yeah, let's set the goal a little a little low at, you know, two 2.5 million. I think you could probably do that because this was last year. You know this was a slow month at 167 000.

Well all of a sudden you know 43 000 was my worst month last year and I've already in a in a 2021 or 2022. I've already kind of set new lows in terms of like being up only 25 000 in um, January and then being up only 86 in February. So now I'm starting to think, well, shoot, what is my what's my goal for the year? You know, do I just take off these two months that I should have hit 200 and so instead of 2.4 have my goal at 2 million and then hopefully I get back to 200 for the rest of the year Or should I be just scaling the whole thing down and saying well, I might only do 50 000 a month average and maybe I'm only going to do 600 000 this year. And so I guess the question that I that a student asked me you know is us one of our students um had a phenomenal year last year and was saying I don't know, I'm feeling kind of anxious because I don't know if I'm gonna be able to do as well this year.

You know, I don't know if we're gonna have another game stop. I just don't know and I feel like I really want to do well. I'd like to have another really great year, but it's out of my control. You know, to a large extent is the market going to be hot or is it going to be cold? I I don't know.

and so I sort of said well try asking yourself this question: if you make a quarter of what you made last year, Could you possibly still say that it was a good year and if I make a quarter of what I made last year, if I make a million dollars this year instead of four million approximately. Could I still say this is a good year And the answer is yes, I could say it was a good year. Was it a slower year? Sure. Was it a sustained bear market through the whole year? If I only make a million bucks, then that may be the case.

But uh, that's part of trading. You get through it and you get to the other side and you want to be here for the next hot streak. Because when things open up like they did the last two years, you want to make sure you're able to capitalize on it. So that means that some months, some years are going to kind of just be a wash.

I hope that there won't be a full year, that's a wash that would be. That would be disappointing. I mean it would be for sure, but I but I can have a month, a few months that are a wash that's okay and I can have a year where maybe I'm making six figures mid to high, six figures 500 to 700 000 and I can be okay with that. So if you can be okay with it, then it starts to take the pressure off right? You're okay with that, so there's no pressure.

It's when you start saying I'm not going to be okay with anything less than 3.8 million that now you're putting yourself in a pressure cooker where you either hit 3.8 million same as last year or you're going to be not okay with how you did and that's putting a lot of pressure on yourself. But this is sort of a performance sport. So like professional athletes, we always feel we're only as good as our last game our last year and we're on us. You know, sports have seasons, so you know we're on a tax year, so we know what our 1099 was for the last year and you know we have a goal this year of hitting that number.

I mean, naturally, we want to keep doing well, and if you have a sustained period where you're making less and less and less, you're going to start to feel a little bit of insecurity. So one of the things that I am a big advocate of is living within your means and saving as much as you can, trading as much as you can in a retirement, reinvesting that retirement into long-term accounts so you can position yourself with multiple sources of revenue. Whether you're reinvesting for real estate, or you're reinvesting by starting your own business, or you're reinvesting in dividend paying stocks, the fact that you're reinvesting and creating second, third, and fourth revenue streams. That is the very best thing that you can do with profits that come from trading.

It's the very best thing you can do. and you know what the very worst thing you can do is spend all that money on expensive cars and private jets and stuff like that. Now, I'm not saying it's not okay to spend some money because you should. Life is short.

You know you. you should spend some money you should enjoy if you've worked hard and had some success. But there has to be a balance. And I think because trading inherently uh, is going to create a little bit more insecurity because you're essentially self-employed it makes sense to prioritize a little higher saving than maybe if your income was coming from something else.

So anyways, that's my two cents. That's uh, February month in review. I hope you've enjoyed it as always. Take it slow.

Trading is risky and my results are not typical so I encourage you to trade in the simulator before you put real money on the line. I hope you do check out, uh, some of the other videos that I have posted on Youtube. Uh, the two days in February. that was the really hot days.

You should check out both of those and make sure you subscribe to the channel. So you get the notification when I go live for the day trading morning show. And as always, I'll be streaming first thing tomorrow morning. so I'll start streaming anytime between eight and nine.

so make sure you subscribe to get the notification when I go live. All right, Thanks so much! We'll see you guys for the next episode. And that right, there was an entire video with no ads. I don't monetize my youtube channel with video ads, which means you guys get to enjoy the content.

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