A Strong But Cautious Start To The Second Quarter

After a bumpy first qurster to 2020, I’ve finally found some strong footing for my day trading in April. As of this writing, I’m coming off of 11 straight green days totaling about $30,000 in my main trading account. That also means, after some significant drawdowns, my trading account is back up at all-time highs.

While I managed to get this streak going in the first week of April with several solid wins in Cellect Biotechnology Ltd. APOP Safe-T Group Ltd. SFET, most of my winning trades that week were at or under $1,000. This was largely due to me taking on smaller share size as a result of the rocky results I’d been seeing through February and March.

However, things really turned around as momentum began picking up this week and I got a little more aggressive with my positions. This paid off big time with some massive moves in ShiftPixy, Inc. PIXY and Comstock Holding Companies, Inc. CHCI, which were each gapping up almost 60% 90%, respectively, in Wednesday’s premarket. Add to that a handful of $2,000 winners in Thursday’s session to quickly double my month's profits in just a couple of days.

And while this momentum is great, this is still a potentially volatile market environment, especially as major companies begin reporting earnings and the world awaits more developments in the ongoing pandemic.

This has been clear enough with stocks like Gilead Sciences, Inc. GILD surging 10% in a single day on promising coronavirus treatment. The Warrior Trading students and I even had a first-hand experience with how crazy the market could get while practicing with a paper trading simulator during a training session.

Although that kind of momentum is exciting, it should also be sobering to anyone who thinks they can rush into these markets recklessly. While that simulated trade worked out, it was not a situation I would have put real money into. That’s why I try to emphasize resources like paper trading platforms and advanced charting and analysis tools, many of which are free to use, to new and veteran traders alike.

And while I am eager to keep putting my foot to the accelerator through the rest of April, I am also going to keep focusing on what has maintained my success through the first half of the month: strong entry set-ups, reasonable share sizes and knowing when to close out a position.