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Want Consistency? Learn To Scalp

Ross Cameron - Warrior Trading

New week, new streak. I unfortunately ended last week on a small loss, but I’ve spent this week focusing on delivering consistent wins.

So far, that focus has paid off. After four days, I’m up nearly $12,000 on the week.

Monday started slow with a small position in Biomerica, Inc. (NASDAQ: BMRA) for a breakout on the open for about $350. I made the majority of Monday’s profits on Social Reality Inc. (NASDAQ: SRAX), which released news at 10, scalping on pullbacks and consolidation. Unfortunately, momentum has been scarce so far in April, and both charts fell back below its premarket levels. Despite that, I was able to make several scalp trades in SRAX for a total of $2,250.

My $5,000 profit Tuesday was primarily split between ATA Inc. (NASDAQ: ATAI) and SSLJ.Com Ltd (NASDAQ: SSLJ). ATAI was on my watchlist at the open, having gapped up about 15 percent. While that isn’t much compared to what I usually look for, I was still interested. The stock broke out on the open, pulled back, and I made my first of several entries on the way up, all scalps. SSLJ came up on my high of day scanner because the stock performed a 1-for-5 reverse split. Again, I took a couple of quick scalp trades on the way up and one final position as it sold off. (Beginning to see the pattern?)

Wednesday, I took another stab at ATAI as a momentum play, making $1,800 on the way up and losing about $400 on the way down. My other big win from the day was in Inpixon (NASDAQ: INPX), the leading gapper that morning, which I also banked roughly $1,400, buying into five-minute pullbacks and consolidations.

Finally, Thursday was my one, true momentum play in Phunware Inc. (NASDAQ: PHUN). PHUN had been on my radar for the past few days after it fell 60 percent to $5 earlier in the month, and I was watching the daily chart to see if and when it might rebound. Once it started breaking out above $6 dollars I was fairly confident it could run to $7 or $8. Nevertheless, based on the lack of momentum in the previous days, I started small with a 3,000 share order and kept buying once it reached a halt near $6.50.

The lesson of this week? Hope for momentum, plan to scalp. Any way you cut it, this was a good week for me. I’m hitting my daily and weekly goals, I’m managing my risks and I’m feeling confident. I, and all traders, just need to keep that confidence in check and realize that base hits win more games than home runs.

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