LIVE STREAM (Black Friday Special)

All right, good morning everyone. So,
we're sitting here. It is Black Friday
and I'm running a live stream here on
YouTube right about 9:00 a.m. here, top
of the hour. And as of right now, we've
got a stock that's up 132%. The stock is
very interesting. It made a big move uh
the day before. for Thanksgiving on
Wednesday. In after hours, it squeezed
from about $15 a share up to about $35.
Incredible. This morning early, it
popped up. It pulled back and right now
it's rallying back up again. As of right
now, I'm not in any positions. I've
taken some trades on it. I'm currently
up a little over $10,000 on this stock,
as you can see right here. Now, I'm
giving you a little sneak preview of
what it's like for those of you guys
tuning in on YouTube to be a Warrior Pro
member. All right. Now, as you probably
know, for Black Friday, we've got some
sales going on for our Warrior Pro
membership. Perfect timing, right? So,
make sure you guys check it out. Link is
pinned at the top of the comments and in
the description here on this YouTube
episode. And at the beginning of this
episode, I also want to talk, and this
is a great time because this is pulling
back right now, which is not surprising.
It's extended, so let it pull back. And
what I want to do is I want to give you
an update as promised as to where we
stand on our charitable giving. Okay?
So, as we sit right now, uh I have
raised over $177,000
for charity. So, all of the trading
profits from my small account challenges
are going to charity. So, and and as I
mentioned, every time you guys hit the
thumbs up or subscribe to the channel on
the episodes that are part of the small
account challenge series, I'm giving a
dollar for-doll match. So, you're adding
an extra dollar to what I'm donating.
So, this total $177,000
is a combination of you guys hitting the
thumbs up and my own trading profits.
So, as of our last check-in, I had
already raised 177,000, but I still had
$30,000 to donate. And so, I made the
following donations. These were
suggestions that you guys posted right
here in the comments on YouTube. So, I
really appreciate you guys. I thank you
for giving these suggestions. So,
Wounded Warrior, this was a big one.
This was really popular. A lot of people
asked for Wounded Warrior. So, I donated
$5,000 to the Wounded Warrior um
organization. You can see this is the
donation. I just made these uh last
night. Then, um the second um
organization that I did a $5,000
donation to is um the Hole-in-the-Wall
Gang Camp. This is a um a camp for
children that are um very sick. So, this
was something um that some of you guys
had recommended. I looked into it and I
agreed this was a good organization to
donate to. The third one um we had um a
subscriber on YouTube, Jim, who said
that um he had a spinal cord injury and
suggested this organization. I looked
into it. I really like what they do and
so I donated um $5,000 there. So Jim,
thank you for this one. The Ronald
McDonald House. This is um an
organization that provides housing near
children's hospitals for families cuz if
you live in a rural area uh growing up
in Vermont is obviously rural uh people
would often have to go to Boston uh
children's hospital for you know for for
medical care if their children were very
sick. And so earlier in the year I did a
$30,000 donation to the Boston
Children's Hospital. And at that time
some folks mentioned you know Ross you
should check out the Ronald McDonald
House. um because they've got um they've
got a a home situation uh right near the
Boston Children's Hospital, which is
great for families. Now, I actually had
known about it and I donated to them in
the past. So, I thought that was a good
idea as well. So, that was um the fourth
donation. So, that's 5,000, 10,000,
15,000, 20,000. And then um America's
Vet Dogs. This I thought was great. An
organization that helps train service
dogs uh for veterans. And of course,
November thinking about uh Veterans Day.
This I think this was a great idea. So,
thank you guys for this suggestion here.
Um so, $5,000 plus a little bit for the
credit card fees. And then uh the
Genesis Foundation um another um
organization working um around um
helping these severe illnesses that are
affecting children. So,
so, so anyways, I just wanted to show
you um these um six new organizations
that we've added. So, that means as of
right now through this uh challenge,
I've donated $175,000
um cash out the door. And that leaves me
with $2,552.64
um still that I can donate. So, uh, once
I have my next update in the small
account challenge, then, you know, I'll
post that video. You guys will have a
chance to hit the thumbs up. Obviously,
um, all those thumbs up plus my profit
in the challenge will go towards uh,
these donations. So, we're raising money
for charity, which is awesome. And, um,
you know, we're we're also at the same
time, um, I'm helping you guys gain more
financial literacy when it comes to
learning about the markets. So, Weeble
Challenge today. Well, bummer. No
trades. Okay, so I did trade SMX in my
main account, but I didn't feel
comfortable trading it in the small
account because I knew this is a stock
that was just going to be too volatile.
This is just the reality that when we're
talking about small account challenges,
if I trade a $30 stock, how many shares
can I afford? So, let's get real on this
for a second. We I trade a $30 stock, I
can afford whiteboard
with a $3,000 account. So, right now, by
the way, how much does the account have
in it? It has uh $1,11182
of profit, which is awesome. Um, but the
account value is $3,100. So, I've got
$3,100 in the account. So, that means um
a $31 a share stock, I could do 100
shares equals $3,100.
So, that's all I can do. Now, many of
you would say, Russ, who cares? get in
at 31, sell it at 36, and you're up
$500. $5 a share. And I would agree this
is uh this is some good math. You're
absolutely right. $5 a share, 100
shares, it's 500 bucks. You're right
about that. And yet, um for me, that
would be a very unrealistic trade
because that's not the way I trade. The
way I trade each day is focusing on base
hits. Base Hits is how I've built my
career. Base hits is how I've grown my
account from what was originally less
than $600 to what is now more than $20
million of gross profit.
$600 to more than 20 million in gross
profit. And let's just look just just
for those of you guys that haven't seen
these metrics before. I'm going to pull
up my metrics and I'm going to do a
comparison of winners versus losers of
all of these trades. So, right here,
we've got $20 million in trades and um
we're going to compare winners and we're
going to compare losers. All-time
comparison. It's going to take a second
to generate this report because it's 10
years of trading data. So, my average
winners
15 cents a share. Now, my average losers
are actually 17 cents a share when you
factor in all time. It's not great,
right? I mean, we we'd prefer it not to
be that way, but when we go back over to
detailed, what we'll see is that in
spite of having a slightly inverted
profit to loss ratio, my accuracy over
these past 10 years has been at 68.5%.
Now, if you look at my accuracy just
year to date, um it's it's higher this
year. I'm up just under 72%. Which is
good. And if we compare my profit loss
ratio um the average winners and the
average losers this year, you'll also
see that it's gotten a little bit
better. So, uh I'm happy to see that it
shows that, you know, even after all
these years, um you know, I can still
learn something new. And one of the
things that I learned um that has really
helped me in my trading is I've learned
a scaling strategy, which I'll I'll
share with you guys during this class.
So, 18 cent average winners. Now, that's
bumped up um which is awesome. And I
mean that's not an insignificant bump
from 15 cents to 18 cents. It's a 20
cent bump. 20% bump. 3 cents a 20% bump.
Now here it's um it's cut down to only
15 cents. So that swing even if I hadn't
changed my average losers, just the 20
cent bump in average winners, but being
able to bump the average winners and cut
the average losers. I mean that's like
perfect. That's like best case scenario.
So, so all of that ties back to the fact
that if I got in SMX and I said, "Oh,
yeah. I'm going to try to get $4 a share
in my small account,
I what I would essentially be trying to
do is outperform how all of my metrics
have told me I trade typically in the
past." And and also, you know, for what
it's worth, um I would also be uh
trading a price range where I don't
typically do as well. So price and um
volume I typically do better under 20.
That's $20. This is over 20. So there's
no doubt that my trade on SMX today in
the big account carried some risk. it
did carry some risk and that was risk I
could tolerate in my big account but I
could not tolerate in the small account.
So for those of you guys tuning in here
on YouTube uh we've got about 20 minutes
to the opening bell. It is Friday, Black
Friday, right? So it's a slower day in
the overall market. My expectation for
today was that we probably we would have
one of two things happen. It would
either be a completely dead day. there
would be absolutely nothing to trade
because companies are not inclined to
put out breaking news on the Friday, you
know, like basically after a holiday.
It's just it's a light volume day. It's
actually a good day to put out bad news
because it'll hopefully maybe be
forgotten and overlooked. So getting a
good news headline today, the odds were
were pretty low. So then the next best
bet was that we just sort of had a
wildcard stock and I would argue that
that is what we ended up having on SMX.
We had this sort of, you know, squeeze
yesterday on Wednesday which was
unexpected and then it just sort of
continued pushing higher pre-market. So,
I'm not expecting unless SMX rallies
back to 40 and continues higher. Um, I'm
not expecting necessarily that there'll
be a whole lot more opportunities. I
think it's good that we have a stock
that's up quite a bit, but um, but
today's a day where I sort of was
writing off that I it wouldn't surprise
me if I didn't make much. Um, I broke
the ice in my main account and sure
enough, I went red on my first trade by
5,800 bucks, which was annoying. Uh, and
then on the second stock I traded, I
made 10,000. So, I'm up 4,500 in my main
account, which is not bad. You know,
$4,500 a day, 250 trading days a year,
you're talking about a million dollar
year. So, I don't want to, you know, act
like this isn't a fantastic day here.
But for my daily average this year, my
daily average has actually been 29,000.
So today is well below the daily
average, but again, not surprising
considering it's the Friday, you know,
kind of holiday weekend situation. So,
what I want to do during uh today's live
stream and I and I've obviously got my
chat room um up here for warrior members
as well is on the one hand um we'll keep
an eye on SMX and then on the other hand
um I'll teach you a little a little bit
about this scaling strategy and then
then at the end we'll kind of wrap up
the live broadcast by doing a rapidfire
Q&A session which will probably begin
maybe closer to 10:00 am. And then we'll
do Q&A for a little bit. Okay. So, let's
start talking um maybe high level. Um
why don't we why don't we go over SMX
for a second? So, uh SMX today and and
today will be a good case study actually
for the scaling strategy. Um because as
I sit here right now, I didn't take uh
full size on anything today. I didn't I
didn't go aggressive. I kept my share
size moderate. I took uh 10,000 shares
on W AI. Uh that was my 5,000 share
starter. Then doubled to 10. It flushed
down. Uh ended up losing 58 cents a
share on it, which was a bigger cents
per share loss. But for me, that was
starter size and I was giving a little
bit more room. If I had gone to full
size, then that would have been a much
different situation. And SMX biggest
position on this 3,500 shares. I don't
even think I took 4,000 shares on it.
So, I did end up getting $3 a share out
of this one, but with very small size.
So, what I knew about SMX, so let's back
this up. So, what I knew about SMX this
morning was Oh, and look at that drop.
Okay, so but that doesn't surprise me.
So, we're kind of back in this range
right here, uh, between 32 and 34. So,
what I knew about SMX was that this had
made a big move on Wednesday, and I
actually traded it on Wednesday. So, uh,
on Wednesday, I was teaching classes for
members here at Warrior Trading. We
started classes at what time was it? It
was, um, about 10:00 a.m. We started
class at 10:00 a.m. on on Wednesday. And
I think I was teaching until 3, maybe
3:30. It was about 3:00. Um, so we had a
really nice uh long class and then um
class ended and I was working on my
slide deck for chapter 6 part 7 on
advanced hotkeys, advanced order routing
and advanced order types. And as I was
sitting here uh working on the slide
deck, I um I I decided to start
recording um and using the live trading
as an opportunity to record uh live
trading examples which I would put into
the class. So I was doing that and I
needed of course something that was
moving. So initially I pulled up Ford
because Ford is a stock that's easy to
trade. It has a lot of liquidity and I
can demonstrate my buy sell orders on
it. Okay, so that's a good stock just
for demonstrating this is a limit order.
This is a market order, buying on the
bid, selling on the ask. But then I
wanted to test out some of the more
advanced orders and demonstrate
executions that you can get filled
between the spread. And for that, I
needed a stock with bigger spread. And
so then I noticed SMX was on the scanner
and I said, "Well, this is actually
perfect." So I pulled this one up and uh
it ended up squeezing right into the
closing bell right here and halting up.
And I think this is a stock that um
there's kind of a whole story around
this price action. We've been in a
market that's been a bit cooler, right,
for the last uh you know, the last
couple weeks. And short sellers have
been aggressive and they've been
confident. Now, a long biased trader
doesn't make money buying and selling
Ford and neither does a short seller. If
you have a stock like this that's not
moving, you don't make money on it. We
all need volatility as you know, look,
that's what we need. If we're going to
make money intraday, we need things that
are moving. So, it doesn't matter if
you're long biased or short bias. So,
shorts have been looking for volatility.
And typically, I think most short
sellers recognize that shorting a stock
with a sub 1 million share float can be
very risky. However, when things are
slow, you take more risk just to sort of
generate more trades. You lower your
your threshold a little bit um just
because you need to introduce more
trades otherwise you're not making any
money. You're not doing anything. And
so, uh, there were a number of, uh,
short sellers that were talking about
positions they were taking on SMX. The
stock was squeezing up on Friday, or
sorry, it was Wednesday. Um, and you
know, a lot of people thought, look,
this is a company that has a
well-established history of doing
secondary offerings and reverse splits.
Look at look at the chart. Do you see
all of these S's? These are all of the
reverse splits that have happened on
this stock. Now, by the way, when you're
a member of Warrior Trade and you're
Warrior Pro member, and for those of you
guys that are checking out the Black
Friday um specials, you get access to
the same software that I've got on my
screen here. So, this software is Day
Trade Dash. So, you'll have access to
it. You can log in. Once you sign up,
you go to the members dashboard, you
click enter, and you load your own
version of this software. So you can go
ahead and rearrange the scanners,
rearrange the charts, select different
scanners, you know, save your layouts,
create multiple pop outs like what I've
got over here for stocks that are on
side chart, right? So I've got that side
chart there and then I've got our chat
room, you know, down here. So I can
watch the chat room right there. So you
could do all of that um inside this
platform. Okay, so just to kind of walk
you through the tools I'm using. All
right. So, SMX ends up um so any Okay,
so anyways, this is a stock that has
this uh history on the daily chart of
doing reverse splits. So, the reason
they're doing reverse splits is because
ultimately the company keeps falling out
of compliance with the exchanges. To
maintain compliance, you've got to keep
the stock price above $1 a sh $1 a
share. So to maintain compliance, they
could either be a better company, uh,
number one, or they could just do a
reverse split. So when they do a a
reverse split, what ends up happening
is, uh, let's say they have a 10 million
share float
and the stock has gone all the way down
to trading at 50 cents a share, let's
just say. So it's below the $1 minimum.
So they say, let's do a 10 to1 split. So
if they do a 10 to1 stock split,
essentially what they're doing is um
reverse stock split, they're going to
multiply the price by the ratio, which
is 10. So that means the stock is going
to go up to $5 a share. But obviously
the market cap, and the market cap is
the equation of shares outstanding times
float. The market cap hasn't gone up
times 10, right? If you own 10,000
shares at 50 cents and it resumes at $5
the next day, you're going to be like,
"Holy smokes, I'm, you know, just made
50 grand. This is amazing." So, what
they do is they say, "Well, no, you
didn't make that money." Um, yes, you
still have a position and it's at $5 a
share, but the ratio, we have to divide
the float. So, divided by 10 equals a 1
million share float. So, that's the new
float right there. 1 million share
float. So the price goes up and the
float goes down. So now when you look at
this daily chart and you see this
history of reverse splits, what you know
is that each time that happens, the
float has gone down by the ratio of the
split. So this split was a 22:1 split.
This one here was a 75:1 split. So it
divided the float by 75 by by a by a
factor of 75. So if it was a 75 million
share float, it would have gone down to
one, right? Right? If it was a 7.5
million share float or it was a 100
million a 10 million share float, it
goes down to less than a million shares.
Right now, this one was 28 1. This one
was 4:1. That was smaller. We don't
usually see 4:1. That one's 7:1. This
one's 10:1. That's more common. This
one's 8:1. So now you understand how
this stock has suddenly been able to
have a float that is this low. Right? So
the price goes lower, lower, lower,
lower, lower. Uh they do the reverse
splits and then that moves the price
back up, but then the float goes down.
Now, unfortunately, this stock has a
really it's a it's a terrible daily
chart. I mean, this stock keeps going
lower. And you would probably argue this
would be a bad investment long term. And
I think I would agree with you. This is
this doesn't show the potent I mean, on
the one hand, you know, rock bottom, you
know, how much how much further down can
it go? But because the reverse split
mechanism,
it it'll it could it could potentially
never go to zero because every time it
goes to 50 cents, what do they do? A
reverse split back to five, back to 50
cents, back to five, back to 50 cents.
So, it's like it just keeps going lower,
which is that's that's what's um
unfortunate about these uh these charts.
So, while there may be changes in the
future where the exchanges decide, you
know what, at at a certain point, you
can't do this many back-to-back splits.
You should be on the OTC market,
whatever. For right now, these stocks
are still on um the the public markets.
So, this one here is on NASDAQ. It's on
the NASDAQ exchange. Um and the OTC is a
public market, too, but it's just not um
one of the big exchanges. And the
regulatory requirements are a little
different on the different tiers of the
OTC market. So anyway, so SMX daily
chart has this little wellestablished
history of dropping. And so you could
see why a short seller might look at
this and think, "All right, this is a
stock that I'm just going to short all
of the pops on it because in a matter of
a week, it's probably going to be back
down below $5 a share again. We take off
the 200 moving average. We take off the
20. We adjust the scaling on this chart.
It's hard to really even see it clearly,
but this is what it does, right? So,
this candle right here was Wednesday.
And we look at that and obviously with
22 million shares of volume, it was the
highest volume candle that this has ever
had when the chart is corrected for the
splits because of course the number of
shares traded gets adjusted as well. So
now we're zoomed in on this and you see
that what's happening here is actually
kind of crazy. The stock's been beaten
up, beaten up, beaten up. And in a way,
and look, I don't I'm not sure how that
it's going to go a lot higher. But on
the other hand, if you were a short
seller and you kept shorting, like where
could this potentially run into
resistance? I mean, it's just been
dropping. So it'll, you know, it's
probably going to run into resistance
where anyone who has been holding for a
while starts selling where shorts
overpower buyers and or where the
company itself decides to sell shares on
the open market, which is not uncommon
at all. So how would the company do
that? Well, we go to BAM SEC, we go to
the uh stock ticker lookup, and this is
where we actually can see if they have a
shelf registration. So this was filed on
uh November 4th right here. Perspectus.
So this was um an issuance of up to 22
million shares. So think about that. 22
million shares. That's a lot of shares
to be selling. Now what these companies
often do is they'll sell a combination
of shares. Sometimes they sell them
through an investment banker directly on
the open market. Sometimes they sell
them um to uh an accredited
institutional trader who will buy like a
big block of shares. They get them at a
discount. They can then turn around and
resell them on the market. Sometimes
they'll also buy warrants which allow
them to exercise uh in the future based
on certain strike prices. Um but
nonetheless, this is a company that has
notified all shareholders with a shelf
registration back here in February that
they will from time to time sell shares.
$45 million worth is what they notified
us here back in uh February. So, in
order for them to raise $45 million,
uh you know, they would obviously have
to sell last shares on the open market.
Now, there's always a question with
these companies uh of whether or not
they actually need to raise money. Um
you know, look, does this does this
company even need to raise? So, we go
back to SMX. We check their financials.
This is the amended financials here. You
scroll down and then you can look at the
profit and loss of the company and you
can look at their balance sheet and then
that gives you a sense of whether or not
this is the type of company that may be
in need of raising capital. This is as
of December 31st, 2024. So it's a little
old, but at that time their current
assets were uh 4.3 million and their
cash and cash equivalents um 2.3
million. So, you know, that's fine. $2.3
million isn't isn't bad. Um but then you
go down here and um you start looking at
the fact that they're operating at a
loss. As we could see right here, I had
already checked this um
on Wednesday. So they're operating at a
loss and in that whole year they lost
11.3 million,
right? So, you know, now that uh the
prior year they'd lost 12 million and
the year prior to that they'd lost 5
million. So, now you sort of look at
this and it's like, all right, um you
know, this could be this is a little bit
of a um a challenge. So, where are they
getting their money currently to run the
business? And they're getting it from
the exercise of warrants right here um
and from the issuance of ordinary
shares. In other words, they're getting
the money to operate the company by
selling shares on the open market. So,
in fact, if we looked at um
risk factors, let's see. Um
usually up at the top we get where's
this?
Um
so this is also um a international
company. It's a foreign company by the
way. So foreign companies are not
required to publish their earnings on a
quarterly basis. They can p they have to
publish them annually and they can
publish them periodically if they want
to.
Um
I'm not seeing the risk statement here,
but in any case um I just would have to
look around for it a bit more. But this
is a company that, as you can tell, um
they they it's very likely that given
they have a history of doing offerings
that um that they would do it again. It
just wouldn't shock me. It wouldn't
surprise me at all. Um I didn't see
which underwriters associated with this
company. Um I didn't check that. If
anyone has seen it, you could mention
it. But um so while all of that is true
and your long-term my long-term outlook
is not bullish on the other hand if you
start shorting this and you you start
adding aggressively to it and then
suddenly the company decides that
they're not selling today. They're not
creating that uh additional overhead of
supply. In order for these stocks to
make a big move, you need an imbalance
between what? supply and demand. So,
demand typically comes from breaking
news.
However, demand can come in the form of
uh short interest, short interest, and
short squeeze because if you've got high
short interest and you're getting a
short squeeze, then that's going to
create demand because it's going to
create buying. And then supply is the
float, which is the number of shares
available to trade, but then is also
overhead sellside resistance. So,
selling. So it could be selling short or
it could be selling positions that you
already own or it could be the company
selling. So these are sort of the
variables that we're looking at that uh
ultimately determine how high a stock
will go. So you could have two stocks
that have very similar headlines, are
very similarly priced and have very
similar floats, but they produce
different moves. And it's because the
variables um and there's many others
which we go into full depth on in the
classes, you know, that that I just sort
of started alluding at. So or alluding
to so anyway. So uh so SMX going into
after hours on Wednesday squeezes up to
15 and then pulls back and then squeezes
up here and halts. It resumes and it
surges up to 24. It dips down and that's
where I got in right down there on that
dip. Now I didn't take big position.
This was after hours trade on the
Wednesday before Thanksgiving. So I took
a small position and I only made about
$2,800 on it. But it ended up going from
about $22 a share to 34. And so imagine
for instance if you've been short 20,000
shares of this or 50,000 shares of it,
you know, which wouldn't be an
insignificant position, but let's just
say all of a sudden this thing is
ripping up 22, 23, 24, 25, 26, 27, 28,
29. And what you know is happening is as
you're trying to cover the position, the
market makers are seeing your orders
coming in and they're pulling their
orders out of the way because a market
maker doesn't want to go short 50,000
shares of this thing. So if it sees your
big buy order coming in, then all of a
sudden they're going to cancel their
sell order. They're going to move it up
the book and you're going to get a lot
of slippage. And that's just the market
makers, you know, their job is not to
give you all of their shares or to
potentially set themselves up for a
loss. They're making the market, but
they're also trying to make money. So,
next thing you know, this thing went in
an instant. In less than a minute, it
went up $10 a share. So, with 20,000
shares, that's a $200,000 loss in an
instant.
And and it stopped there probably
because it was after hours, right? But
at a different time of day when there
were more traders around. I I mean, you
don't want to underestimate how much
these could go up. And so most short
sellers recognize that shorting a stock
with a float of under a million shares
is extremely risky. I mean it can work
but if it doesn't work it can fail you
know in pretty epic proportions. So and
I'll just show you some examples here.
Um
so I've got a couple different um trades
I'll show you from this Excel or this um
slide deck. So let's see. Um,
so this is a day here. Um, the the stock
I made the most on on this day. I'll
just go full screen. Um, NDRA, this had
50 million shares and a sub 1 million
share float. I made $161,000
on it in that was just in one day. Um,
let's see. This one, SQFT, sub1 million
share float, $58,000. This one was a
little That one was a little choppier,
but this one that I already showed you
that NDR um this one NIVF sub 1 million
share float again with 40 million shares
of volume. So, there's demand on these
and there's demand on them because
traders know, you know, these are the
ones that can do something pretty
special. Does it happen all the time?
No, it doesn't happen all the time, but
when it happens, you want to get a piece
of that action. And this is, of course,
a day that it was happening. So, made
some money on um well, actually, I
didn't make as much on that one. And the
stock I made it more on was um TR AW. It
was a 4.5 million share float. But in
any case, the the big uh rate of ch
change very common with low float. So
then this one um got a couple here.
BTCM, this was tied into cryptocurrency.
So there was a good catalyst there. 6
million share float. This one million
share float. And then BB um LG 500,000
share float. Let's see. This one 600,000
share float. I mean, those are those are
very low levels of supply. And so, if
you're suddenly if you're short and
you're suddenly caught on the wrong
side, I've seen them go. I mean, I've
seen some of these moves that have just
been absolutely insane. And going from
$22 a share to $32 a share in one minute
is pretty wild. So, this morning it
popped up again and one of the things
that I thought was, you know, what if um
there was someone that was short from
Friday and they did not cover
Right? What if they're still holding
this thing? What would what would you do
if you were short from 15 or whatever 12
and you were still holding and you were
down this much, but you knew if you
tried to cover after hours, you just get
smoked on um slippage. So, you say, "I'm
going to still hold it. I'm just going
to see this thing through and let's see
what happens." So, there's a couple
things you could do. One is um hope that
the company does a secondary offering
and the stock drops. Okay? um hope that
um some institutional investors exercise
those warrants and um that causes the
stock to drop. Okay, that's fine.
Another thing you could do is you could
average down. You could add to the short
position, but that's actually going to
be a problem. And the reason that's
going to be a problem is because when we
look um at the short interest on this
and the utilization of the shares that
are available, the there's uh 87% of all
the shares available to short have
already been shorted. So the utilization
is 87.48%.
The cost to borrow has gone up over
400%.
So, it's four times more expensive to
borrow and there's not a lot of shares
left to borrow, which means all of a
sudden, if you want to get out, your
ability to get out or sorry, if you want
to uh add more, if you want to average
down, your ability to average down is
going to be limited. So, now you're just
stuck holding it at 12. You can't add
heavy at 35 and kind of, you know,
create extra supply by selling on the
open market, selling into strength and
bringing your average up. In this case,
if the stock was easy to borrow and had
or had very very, you know, minimal cost
to borrow and the utilization was low,
then you would expect there would be
more short selling. This has a short
interest that was last reported at 37%.
So all of that um the these are all the
variables
that are sort of part of the structure
of the market that the dynamics that can
result in stocks making really big moves
like this. Um and this is look I mean
for a Black Friday day after
Thanksgiving this is a pretty solid
move. It's obviously shown some
volatility right here just after 9. Um
it was actually right at 9 we dropped
9:01. Um, but I don't see,
let's see. So, they did put out another
headline. Now, one thing that I'll say
is that when companies are putting out
headlines like every 15 minutes at 9,
9:15, 9:30, sometimes people get a
little nervous that like there's almost
a little bit of desperation like, "Hey,
hey, hey, don't stop looking at our
stock. It's still strong." So that
almost makes me more suspicious about
the the risk of potentially these red
candles being caused by um either I
don't know either a company doing an
offering or maybe institutional traders
are selling. I'm not sure which it is.
Uh and and I could be wrong. It's it's
at the end of the day it's speculation.
We don't know. Um but we can see the
price action. And so right now the price
action is not as clean. Now, if this
ended up curling back up and squeezing
back through the highs later in the
morning or whatever, you know, then it's
game on back up here over the highs. As
soon as you're breaking over the highs,
like to me, that's where this gets
exciting again. And so, I just really
try to trade the price action more than
anything. And if it's still moving
higher and it's clean, then I'm, you
know, on board. And if it starts showing
this choppiness, you know, or halting
down like this, then, you know, I just
sort of take my foot off the gas and and
I I leave it alone because there's no
sense in overtrading the backside of the
move. So, um, so now that's my analysis
there on SMX and, you know, I've already
articulated that earlier this morning to
members that are, uh, you know, in the
chat room and listening to my stream.
So, um, now let's talk for a second
about this, uh, scaling strategy that
I'm using and KT with, um, currently 56
million shares of volume. Um, I do see
this one. I also recognize this has sort
of high levels of volatility here up and
then down and then back up and then back
down. So, it's it's swinging around
quite a good bit. Uh if we back this one
up though, this is another one on the
daily chart that um the stock has been
beaten up. They've got reverse splits.
You've got a history of some bigger red
candles. So, it's bouncing here. Um and
there's some potential on it, but to me,
this price range I don't often do as
well with. I just find that um I just
find that I struggle a bit with it. So
part of it is that when they're cheaper,
well, it's harder to get those, you
know, 15 cent, 20 cent moves. Um, you
know, that would be a a 10% underlying
move. So that can be more difficult. um
you know and they often the spreads are
very tight which is fine but um they can
become very crowded with traders who try
to buy like two or 30 hund,000 shares
each hoping this goes up to $3 and then
when it does they have big big sell
orders that are on the ask and it just
starts to become um it just it's too
heavy. Uh but in any case, so let's talk
a little bit about this um scaling
strategy. So
um what I'm going to share with you,
I've been trading for a long time. And I
funded my first account, by the way, in
2001. So um I wasn't day trading at that
time. I was uh trying to be, you know,
more like investing in things that
either could go up quite a bit uh over
the long term, pay dividends, or
potentially could like, you know, double
in, um, you know, a few weeks, which
would be amazing, but not nothing like
day trading. So, um, but even even with
all this experience and all this time in
the market, um, I still am making sort
of, uh, new discoveries. And so I want
to compare my win days to my and my loss
days. And we're going to do this for
um let's see, we're going to go from
2020. We're going to do 2024
um because this was um when I made this
epiphany, so it's actually going to be a
little bit earlier, but it's okay. So uh
if we look at this on these are my
winning days. There were 197 of them.
And these were my losing days. There
were 23 of them. Uh and what I noticed
on my lo so so this epiphany by the way
uh came after I had a big loss. I was
feeling I was just feeling frustrated.
You know I had one of those days where I
sat down and I was red on my first trade
right out of the gates and then the
second trade I took even bigger size to
try to kind of get recoup that first
loss and I lost a second time. So now
I'm even deeper red. And then the third
trade um you know I was red and hit my
max loss. And so I was like so
frustrated and so annoyed. And so
usually when I'm frustrated and I'm
annoyed uh one of the things that I do
is I take a step back and um I try to
get perspective. And usually initially I
need to walk away from my computer for a
little bit and go for a walk and just
stop trading, right? Uh, but when I come
back, one of the first things I like to
do is I look at my metrics because my
metrics are really helpful at showing me
um what I'm doing that's working, okay?
But also what I'm doing that's not
working. And so as I pulled up my
metrics, I just happened to run this
comparison of winning days and losing
days. Uh, and it was over the last year
or so. And I hadn't thought to do it
before and really looked seriously at
it. But what I noticed was that on my
losing days, and of course I was sitting
on the losing day, that my accuracy was
only 46%.
46%. That's it. And I thought, I've been
trading full-time for this long. And
what good is all of that experience and
all that intuition if on these losing
days I'm just going to trade not with
calm, cool, collected, you know,
logical, analytical mindset, but just
from pure raw emotion, fear,
frustration, anger, stubbornness, and
and spiral because that's what was
happening, right? On those red red days,
what was happening is I would have my
first trade number one, and I would lose
money. So, I'd be down and it would
immediately trigger really annoyed and
then I don't want to feel annoyed
anymore. So, what's the best way to make
that feeling go away? The best way to
make that feeling go away is to make
back whatever I just lost. So, I'm going
to take more trades. But now, especially
if the market's slow, in order to take
more trades, I'm going to have to reduce
my quality standard. And to make that
money back faster, I also have to take
um bigger size.
And this is an emotional response.
And then what results typically is
losing more money and then I'm even more
angry and then I take even bigger size
and then I lose even more money. Right?
So this is this is a um a a a negative
feedback loop, a spiral really that many
traders find themselves in. And all of
this the culprit to all of it, what is
it? Is it losing?
Not really. It's not that it's not the
loss, it's the emotional response to the
loss right here. So what I realized was
my problem. So So I thought, well, all
right,
to back up, I I asked myself, I said,
"Okay, is there a way that I could know
sooner
that today was going to be a red day?"
Affirmatively, because if I knew if you
told me like last night that today was
going to be a red day, I wouldn't show
up, right? Okay. Well, maybe there's no
way to predict that. But how early in
the day after I start trading, can we
predict that it's going to be a red day?
And there's sort of a statistical model
here where after like two or three red
trades, the likelihood of this becoming
a good day is very low, right? So now
the probability is just higher that it's
going to be red. And now it's just how
big is the loss going to be? And so what
I realized was that um my best days
typically started with me sitting down
and on my first trade I'm green. First
trade right out of the gates I'm in the
green. And the worst days start with me
of course going red. And so then I
thought well what if for the sake of
argument I just implemented a rule of
trading
this is just a test a rule of trading
with one quarter size
um until
green
one quarter of my goal daily goal. So
trade with small size till I'm green
with you know about a quarter of the
daily goal. So, and I and I thought on a
really good day,
this is going to happen in my first
trade. And I guess I asked myself, am I
going to feel FOMO and frustration that
I took that first trade with only one
quarter size instead of full size? And I
reminded myself that on my best days, I
don't take just one trade. On my best
days, I end up taking dozens of trades
sometimes. So, as soon as I'm green,
more than a quarter of my daily goal,
then at that point, I'm free to size up.
But until I've gotten that first
cushion, I stay with small size. So,
today for instance, today on my first
trade, which was on the stock WAI that
popped up on the scanner, which I
thought might have been our potential
wildcard stock for today. It was a
lowerflowed stock, popped up on the
scanner, and I was like, "Okay, I could
work with this." I bought 5,000 shares
and then I added another 5,000 and I was
looking for the squeeze through um the
half dollar whole dollar. It ended up
rejecting and I ended up stopping out of
it. Okay. But I never was in full size.
So 10,000 shares for me is not a
full-size position. That's still
quarter. Not that this one really
supported me going full size when I
first took the trade anyways because the
volume was very light. But nonetheless,
my full size is 50,000 shares. Depends
on the price range of the stock. I
wouldn't do 50,000 shares on SMX, but um
but depends on the price range. So 30
40,000 though. So anyway, starting with
10,000 shares is is small enough. I went
red and then I took a trade on SMX. So
then on SMX, would it have been the
right thing to take 20,000 shares?
The answer is no. Even though, as it
turns out, it would have worked. it
would not have been the right thing to
do because if it had not worked then all
of a sudden with 20,000 shares of SMX
I'm down 40 grand potentially big loss
because it's more expensive. So I ended
up taking a,000 shares and then adding
to 2,000 and adding to 3,000 and in my
first trade on SMX I made um let's see I
made
$2,000. Yeah, it was about 3,0002
$3,000. So I was only down about 2700
2,800 on the day. So, I was like, "Okay,
that's good, but I'm still red." So,
then on my second trade on it, I
continued trading with 2 3,000 shares.
And then eventually, I got myself um to
break even on the day. And when I was
break even on the day, part of me
thought maybe I should just walk away
here. You know, just, you know, this is
sort of damage control at this point.
It's it's Friday. Maybe just walk away
green. Um but then I saw another setup
that I liked and I said, "Okay, I'll
keep trading this, but I'm going to
continue trading with quarter size." And
so today, because the first loss was
with one quarter size, you know what
happened?
So trade number one, I go red. And I'm
not going to say I'm happy about it, but
I'm also not a rate. So I'm just kind of
like, eh, it's a little annoying.
Kind of predictable, kind of typical.
It's a Friday, you know, day after
Thanksgiving, light volume, market's
been cold, but I'm not emotionally
compromised. And so then when I take
trade number two, I'm still focused on a
quality setups. I'm I still am working
with my analytical,
you know, calm, cool, collected state of
mind. And so then that trade ends up
being a winner. So the first one was a
loser, second one was a winner, and then
I take trade three and trade four and
trade five. I ended up taking, you know,
a dozen trades today. And so I worked my
way slowly through just small base hits
up to $10,458
of profit on SMX.
And this is a day where, you know, two
years ago, I could have very easily
spiraled. I lose 5,000 on the first
trade and then I go in big size on the
second. And look, if it worked and I was
up 40 grand on the day, then I feel like
a hero. But the reality is
more often than not when you start the
day in the red and then you revenge
trade into trade number two you're going
to lose. And I think in total over the
long term you're going to lose more than
you make with that type of emotional
strategy. So even though today it might
have worked more often than not it will
not work. So anyway so it um and now we
could see this coming back up to the
highs. So one of the things I had
mentioned was that um you know if it
comes back up to the highs that that's
the level that you know I would find it
interesting.
So, we'll back this up. So, anyway, so
now what I do is I utilize this scaling
strategy where I take quarter size until
I'm green a quarter of the gold. Now, I
won't say there haven't been a few days
where I've fallen into this trap. I
have. It's happened a few times even
since implementing this where I ignored
my rules. I trade with too big a size on
the first trade. the loss did trigger me
to get emotional and then I was sort of
back to that old bad habit and I had a
couple days where I managed to finish
green and a few days that I had big
losses and you know so I'm not perfect
and this is actually a really good
instance to kind of share with you that
I can teach you all the rules of the
strategy and I do for our members at
Warrior Trading. you learn the ins and
outs of my entire strategy. But I've
often said that traders fail for two
reasons. The first reason they fail is
because they come to the market with no
strategy at all. So they're basically
shooting from the hip, trying a little
of this, a little of that, and they get
inconsistent results. They don't have a
technique, more or less, they're kind of
gambling, just I'm going to throw money
on this. It's very speculative. And then
there's a second group of traders who
lose money. They're a little smarter
than the first group. They have learned
a strategy. They've spent the time, you
know, teaching themselves a strategy,
testing it, practicing maybe in a
simulator, but they still lose money.
And why is it? It's because they lack
the discipline to consistently follow
the rules of the strategy. And I get
that because we're only human and it can
be very frustrating when you're sitting
here faced with loss. So, I've had these
times myself where I'm sitting here and
I'm like, you know, all right, I'm going
to be following the rules here and the
next thing you know, I'm I'm making a a
big mistake and it's very disappointing
when that happens. So, I get that. Um,
and being a successful trader is not
about being perfect 100% of the time,
but it is important to minimize um how
often you have those setbacks as much as
you can. So,
uh, so anyway, so I that that scaling
technique has helped me quite a bit
because it's allowed me to keep my red
days generally a little bit smaller, you
know, with the exception of a couple of
uh ones that got away from me. And uh,
but at the same time, it hasn't really
held back my green days from being
really solid green days. And I think
that's where um, you know, that that's
where I I I feel really good about this
technique. So, some techniques might
hinder your your progress as well. You
don't want to cap your upside. You want
to cap your downside, but not your
upside, right? That's where things get
tricky. Now, you can see this volatility
on SMX. Now, it's back to 35 and it's
showing a halt level here. So, it's
obviously highly volatile. Um, you know,
I haven't taken any additional trades on
it since we started this broadcast. So,
I'm just sitting tight. I I I'm
I could be persuaded to trade it if it
could prove to me that it could hold up
in these areas. Um but each time it, you
know, kind of came back up, it rejected,
then came back up right there and now
it's rejected. So, you know, we'll see.
But you could also, you know, speculate
as to where all of this selling is
coming from. You know, it's additional
supply perhaps.
And your your variables are the company
selling with a shelf registration
through an investment bank. Uh an
institutional trader who has shares
they're selling or has warrants are
exercising and selling the shares on
that. Um or short sellers uh or you
could argue maybe some retail bag
holders. But the float's so low and the
volume today with 8.5 million shares has
more than enough volume to sustain
everyone uh selling who was already in
it for profit. So I don't actually think
that it's probably insider or uh
existing like bag holders or people that
have been holding for a while that are
taking profit here.
Okay. So let's see. Um
now I want to welcome you guys again uh
who are tuning in on YouTube. Uh today I
wanted to host a special uh Black Friday
broadcast. Um and uh my thought was that
I would uh give you some live market
commentary here if there was a suitable
uh stock or opportunity to do that.
Right now it's I suppose not
surprisingly been a little slow. So took
the opportunity to give you a recap on
my trades uh from this morning that I've
taken thus far to share with you my
scaling strategy. And I had said as we
got closer to 10:00 a.m. top of the
hour, I would do some Q&A. So, we've got
about 8 minutes here to the top of the
hour. My routine each day is I sit down
at usually about 7 a.m. Um, sometimes a
little earlier, sometimes a little
later, but usually around 7:00 a.m. And
I begin by looking at our gap scanner.
When I sat down this morning, I saw SMX
was our leading gapper, but when I first
pulled it up, it was around 6:30 and I
was like, "Oh, boy." Okay. So, yes, it
made a move early but sold off right
here. So, I thought, nah, that's not so
great. Um, but then it ended up coming
back up uh in this area and I got a nice
trade right down in there and I got a
nice trade in this area when the MACD
flipped positive and that gave us that
move all the way up here to 40. Um, it's
like no, it was about to 39 and then I
took profit and then it squeezed a
little higher without me. But that's
okay. And you know what? That's also a
good lesson on the reminder that you're
never going to get the perfect move from
the bottom of the setup to the top. You
do the best you can. Uh, and you know,
you just accept that every day, I
suppose you're doing one of two things.
You're either giving back profit or
leaving some money on the table. And I
don't mind leaving a little money on the
table as long as I'm walking away
feeling like I paid myself and I've got
a little bit more profit than I had at
the beginning of the day. Anytime I've
got a little more profit than the
beginning of the day, I feel like I've
done a pretty good job.
All right. So, let's see. Um,
uh, and those of you guys, um, in the
chat room today, um, will, um, we'll do
the Q&A session
on YouTube. So, I'll be, um, watching
the YouTube chat specifically, but I'll
I'll also see if I, um, I'll open the
mentor room. So, if I notice a question
in the mentor room, um, I will, uh, try
to answer it there as well. So, let me
open up the mentor room. It'll be the
Warrior Pro mentor room.
And then I can switch my broadcast for
members, uh, to that room so it's uh,
less disruptive for those that are still
trading.
So, uh, so warrior members, I'm going to
switch my broadcast here and, um, I'll
jump over to the mentor room because I I
I really I don't anticipate taking any
more trades. But, you know, like I said,
if this ends up surprising us and going
back to the highs, then then maybe I
will.
Okay. So, while I switch that broadcast
for um members at Warrior Trading, those
of you guys here on YouTube,
I appreciate you guys uh tuning in
today. I hope you had a great
Thanksgiving. I hope you enjoy uh the
weekend and I hope to see you guys um in
the chat room as full-fledged Warrior
Pro members on Monday morning. And of
course, you have our um Black Friday
special sales uh discounts that uh make
it a great opportunity and a great time
to join. And and just, you know, while
I'm sort of on that topic, um since
we've got about 5 minutes till Q&A
starts, um as Warrior Pro members, when
you guys join using the Black Friday, uh
coupon code, we give everyone who joins
during this little window a 7-day money
back guarantee when you become a Warrior
Pro member. So the nice thing with that
is you can join uh today and become a
member and you can start going through
the classes today, this weekend um you
know Monday, Tuesday, Wednesday, next
week and as long as you email us on or
before the seventh day, 7-day money back
guarantee, we give you a refund and
there's no hoops that you have to jump
through. You don't have to do anything
crazy. And this is something that many
people can attest to because they've
done a 7-day money back guarantee. And
people will ask, they'll say, "Hey, does
Warrior, you know, is Warrior good about
this?" They make it hard and we don't
make it hard. Um, and you're not going
to get a surprise rebuild. We we make it
very easy for you. Um, our belief is
that we've got a fantastic community
here. We've created fantastic tools.
We've got a fantastic curriculum. And
for those of you guys who are in a place
where you're ready to commit to trading
and you know dive into this, I really
believe there's not a better match. But
it's possible that you'll come in,
you'll be like, "Oh, I'm not at the
right place right now." In which case,
no harm, no foul. It's fine. it's no
problem to step out of the um you know
to take us up on the 7-day money back
guarantee and to step out and and come
back in a year when it is the right
time. So, we just feel like if um if
you're not loving it, then you know it's
we're not trying to twist your arm.
Um, and the reason that we don't have
just the chat room available, um, I I
really am a big advocate of, um, wanting
to emphasize that my chat room is an
extension of the classroom. It's where
I'm demonstrating the strategies that
you're learning. And so if you're in the
chat room, but you're not in the
classes, that feels inconsistent with my
goal of really giving you the
opportunity to learn everything that I
know about the market. I'm not saying
that as a chat room member only, you
couldn't potentially learn a lot because
you would learn just by watching me
trade, but I worry that if you're
joining the chat room because you're
like, "Well, the chat room is only $150
a month. That's cheaper." then you might
be someone who doesn't have as much
money available to you right now, which
could mean that you're going to feel
more desperation and more pressure to
make money trading ASAP. And those
emotions are not going to um they're not
going to serve you well. And I'm going
to be upfront with you on that. I'm not
telling you that you need to be rich to
start trading. Um I certainly wasn't
when I got started. But I do think that
it's important and and helpful that when
trading can be um thought of as a new
skill that I'm learning that if I can
make some money at it, this is awesome,
but I don't need to make this money by
the end of this month to pay these
really important bills. Because if
you're in that type of situation, then
the truth is you should find a job or a
way of making money that is a pretty
guaranteed trade of your time for money.
So whether that's driving Uber, you put
in your time, you get money. Whether
it's freelancing, doing work for
different people, whether it's having a
regular 9 toive job, it doesn't really
matter. It's up to you to choose which
one you want. But um but but you I
really think that it's better if you're
in that state of desperation because I
have found that um traders that I think
tend to do better are traders who
already have um they they've got enough
either sources of income through
freelancing, which is often works really
well with trading because you can be
flexible uh with your time. um small
business owner um or someone who's at a
place in their career where they have
the time they can spend trading and so
they've got some more resources. So, you
know, they're they're in a good um you
know, they're in they're in a good
position there to um you know, to trade.
And I find that often times when people
are in that better mental position, it
feels like sometimes the people who need
the money the least are the ones who
make it the most. I mean, you see like
um some of these, you know, people who
have crazy amounts of money um you know,
who post on social media like on Twitter
or whatever, you know, oh, just bought
like a million a million shares or
whatever of this stock and and then
they'll hold it for like five days and
like make five million bucks and you're
like this is crazy for them. They've got
so much money that it's like a game and
they're not it's like it's just totally
um it's a relationship with money that I
don't understand and I'm not there yet.
Um I don't know if I'll ever be there to
be honest. But um but it can be
frustrating for a beginner because
you're like I'm not I'm just trying to
make a couple bucks here, you know, $200
a day, $400 a day, 500 a day. And why is
that so hard?
And that is the blessing and the curse
of the market. Um if um if you end up
unfortunately um
you know you you could literally spend
years trying to make 15 20 cents a share
per day. Uh and then once you're making
it you can scale but until you're doing
it consistently you can't scale. And
then of course um you know if you're in
the position of having just a lot of
wealth it's it's easy to hold your
winners and let them run and not get
emotional about it because you're just
holding it. And on the other hand when
you're in a loser you could just cut it
and you don't really care. You move on
to the next one. So how do you put
yourself in that headsp space that those
people are in that seems to give them an
advantage even if you're not actually in
that place today. And I think that is
done by first practicing in a simulator,
building up your track record, building
up your metrics and trading, focusing on
the process and recognizing that profits
are a byproduct. So right now, your job
is to focus on the process. And so for
members of Warrior Trading in Chapter
14, I give you guys a trading plan that
you can start following. And we give you
access as part of your Warrior Pro
membership uh to a simulator for 90
days. So you can practice that trading
plan in the simulator. Prove you can
make money with it. Because if you can't
make money in the sim, you shouldn't put
real money on the line. But if you can
in the sim, then all right, you know,
give it a give it a try with real money.
Okay, so let's do some Q&A here.
All right, so let's see. Um,
so I'm just going to kind of scroll
through here. Um,
so how do you stay disciplined in the
simulator? When I trade with 20 to 100
shares with real money, I seem um like I
follow the rules more than in the sim.
In the sim, you know, 20 shares, I I
don't feel like I'm treating it like
real money. I get that. And so
to me, the simulator serves two two
roles. The first role is teach you about
the basically how trading software works
because most simulators um and most
trading platforms are quite similar.
Once you know how to drive one car, you
can pretty much drive them all. um you
know it's a generalization but they're
they're just so similar that once you
understand the mechanics of one you can
translate it. So, a simulator is great
for just building your comfort actually
using this software.
And then number two, um it's to start to
build a little bit of a track record.
But I do understand which is becomes
your proof of concept for trading real
money. But I do understand that for some
people, they feel like they can't
they just don't treat it like real money
because it's not real money. And so if
you're in that situation and you're
using a commission-free broker, trading
with one share or two shares essentially
is like trading with a simulator except
it is real money. So if you have the
money to sort of set up the account and
trade with really small size, you could
start doing that with real money. It's
just very important that you discipline
yourself to stay in negligible share
size so you don't end up taking, you
know, real losses. So SMX kind of
rallying up here. Um, one of the
challenges with this, by the way, is
that, um, now we have halt levels after
the open. So, now it's at the halt level
of 4429.
And we've seen here that it halts down
and then it kind of rallies back up,
halts down, rallies back up. So, it
almost makes me a little worried. Is it
going to halt up and then kind of open
higher and then sell off and then maybe
give us another move? But trading around
halt levels can be an added level of
complexity um that I don't love. So for
right now for me, I don't feel like I
could be comfortable buying this up here
because if I got in and I timed it
wrong, look at this. Look at that candle
that dropped like $5 a share. Losing $5
a share. I mean, that's that's not so
fun. Okay, so let's see. Um,
of the short sellers I've known over the
years, what's been the most common cause
of them blowing up? Um, so typically
typically what ends up happening with
short sellers is they see um pretty high
levels of consistency where they're
growing their account and then they'll
just have that because especially if
they're um counter trend trading, so
they're shorting as something's going
higher, they short as it goes higher and
then when it comes down they cover. sure
as it goes higher and then they come
down as a cover as you know they cover
when it comes down. Um but when you get
that one that just keeps going higher
and you can't add to it anymore and then
finally it blows up, what ends up
happening is they give back uh sometimes
all of the profit they've ever made in
in one trade. And that can be just like
a death blow where they're like, I just
can't I can't I can't keep going and my
account's gone and I've got a margin
call and and it's really sad because you
know during that period of 90% accuracy
you've built so much confidence like I
know what I'm doing and then it's all
gone and that's it. It's really hard. Um
okay, let's see. Thank you for that
question.
Um question about hotkeys. How do you
execute them so quickly? What is your
mechanism for um actioning off the
hotkey executions? Do you hold your
shift key in anticipation? Do you use
two hands? So, um great question. Um uh
the way I do hotkeys, and I'll show you
my keyboard here, is um shift one is
buying a,000 shares and then 2,000,
3,000, 4,000, etc. And so that's I I
hold the shift button and then all I
have to do is tap the one when I want to
buy. And then for selling it's control
with my pinky and then I have this hand
up here to sell to add liquidity to sell
on the ask up here. So K or L depending
on half or fulls size position and then
control Z is one hand to sell on the bid
to bail out and that's to sell on the
bid. So, those are my primary hotkeys.
As we've talked about at the in the
advanced hotkey um settings chapter of
the class, I do have some more um
sophisticated settings, and I at this
point do have a lot of different hotkeys
on my keyboard, but they're not all keys
I use on a day-to-day basis. And for a
beginner trader, it's better to master a
couple, like three or four or five
hotkeys with stickers on your keyboard
and then, you know, add them add them
later, add additional ones later.
Um, so SMX currently halted, showing a
$45 resumption right now on the
resumption quote. So it's bullish. Um,
typically one of the techniques that I
look at is um, trading dips and rips. I
do notice this had some resistance here
earlier and it does feel like we're
coming up to that level, but we might
gap above it if we open, you know, we
might open just above it.
My biggest concern with this stock is
the previous history today of these red
uh candles.
So given it has a history of doing that,
it's very likely it will do that again.
It's just when and can you avoid getting
caught in a candle that does that?
[snorts] That's that's where we get
nervous.
Okay. Um
so let's see. How much do I rely on
level two when I'm in a trade? I am
looking almost exclusively at level two
when I'm in a trade. Level two is the
primary thing that I'm looking at. Um so
it's yeah I'm just I'm really staring
right here at level two. So for this
resumption for instance um the halt time
was 109 sorry 10:04 and 27 seconds. So
resumption is going to be about 30
seconds. And I don't, like I said, I I
don't really want to break the ice and
trade this um here because I'm concerned
that we're just we keep seeing these
extensions and then the selloff. And so
u but what I would be doing is I'd be
watching this and sometimes I'd put an
order up here at like 2650, like 100
shares, but I'm what I'm really watching
is the ask and the flow here. So we're
going to come up to resumption. It's a
fivem minutee long halt. So watching
here, it's $46 resumption.
It's still halted. So there it goes. So
now what I would watch here sometimes
that dip and then buying for the break
of 48 is a setup that I would watch. And
then the next halt level is at 50. Now
in this case, I glance at the spread
there and I see ooh it's a big spread. I
also notice a 10,000 share seller at 50,
which makes me a little nervous. So all
of this creates a bit more risk. Now I'm
watching this one purely from the
sidelines right now. I'm not in the
trade. Uh, but look at how fast it hit
50 and then it's back at 48.88.
So, I haven't even looked at the
candlestick chart since this resumed.
I'm only looking at the level two right
now. Now, we're going up to 50 52. Halt
level is 5368.
So, this is very bullish. There's no
question about it. Um, it's pulled away.
And hey, I love seeing that. It's
unfortunate that the stock has this
history of these uh red candles because
it makes it harder to trust. On the
other hand, it might have given shorts
additional conviction to take a trade on
it for all I know. And now they're stuck
because now it's halted up at 5368 and
it's showing a $56 resumption. What if
it resumes at 56 and then squeezes up
again? Then it's going to halt at 65 63,
right? So all of a sudden, if you're
short, it's very hard to unwind this
position.
Okay. Um, why use the bid to bail out?
Well, I would always prefer to sell on
the ask, but if I can't get filled on
the ask, then I can flip um and hit the
bid. So, hitting the bid would let me
get out a little bit. Um, I could just
sell to a buyer who's got shares that
and wants to buy.
One of the things that I'll tell you
with um stocks like this is, you know,
as it turned out, I missed this kind of
first move. And if I'd gotten in here
and gone red, I would have been annoyed
because I I missed a better entry down
here and then I kind of got in a little
too high. So, the downside of losing is
that not only do I lose money, but I
feel like I miss I kind of I either
trade it the whole time or I don't trade
it. Stopping and starting is difficult,
which makes it hard if you're teaching a
class or doing something like this. Um,
or you walk away from your computer and
then you come back because it's like if
you walked away and came back here,
you'd be like, "Oh my gosh, I want to
get in up here." And then you buy it up
here and lose and you're like, "I am a
 I missed this entire run up." And
then I buy it at the top and I lose. I'm
probably the only person who's, you
know, read on this stock today. And so
sometimes it's better just to say, you
know what? All right. I missed this one.
And I've got to let it let it reset
entirely and maybe there'll be another
opportunity. Um and and you know what?
If I miss it, hey, here's the good news.
There's always another one around the
corner, right? I mean, I showed you my
screenshots there of some of these um
these big P&Ls. But I mean, these are I
mean, there's, you know, dozens of days
where it's like, you know, 90 grand,
98,000, 100 grand, 116, 10, 127. you
know, the best days for me, uh, it comes
together pretty quickly. And most of
these days, for what it's worth, I'm
trading pre-market and I don't have to
deal with circuit breaker halts. The
halts create an added level of
complexity, um, which I don't love. So,
the best moves uh, for me usually are
actually pre-market where we could go
from 40 to 53 and we wouldn't have
halted right there. We wouldn't have
halted at 44. We would have just kept
going. So, you get in the zone and
you're just still buying dips and
selling rips and buying dips and selling
rips and next thing you know, you've got
something that goes up, you know, 30,
$40 a share in 15 minutes. We've
literally had that happen. Those P&Ls
I'm showing you was just showing you, a
lot of those are from, you know, a move
where it just kept going higher. So, you
know, we pull up this chart. So, this
one, let's see. Oh, I'm already on it.
So, this one went from 8 up to 19. That
was pretty nice. Um, this one, uh, what
was the price range on this one? Um,
this one went from $30 to 56. So, very
similar price range here on this one.
Um, I will also say these higher price
stocks can be riskier because of the um,
unfortunately because of the spreads.
So, you can mis you mismanage it and
next thing you know, you could be down
$5 a share. This is halting up and most
likely it will halt down again. So
remember, they halt up, but then they
can halt back down. So the halt on this
one was 1010 and 24 seconds. So
resumption will be 10:15 and 24 seconds.
So you got about 90 seconds to
resumption.
And this can be the thing in a cold
market where shorts start to get a
little bit more desperate. So they start
shorting higher risk stocks just because
they're moving. And then if they get
squeezed, it it can make the squeeze
that much more uh volatile because so
many people are are in it short.
Okay, let's see. Um
what do I consider a dip? So, when the
MACD is still open and we're on the
front side of the move and we drop down,
I do like trading dips around half
dollars and whole dollars for the pop
back up. But on the other hand, um, when
you have something that's this
expensive, that's this extended, you
want to be careful buying dips because
it could flash and end up uh flush going
into a halt down if someone all of a
sudden dumps a really big position. And
again, that could be an inside that
could be the company selling a million
shares on the open market to raise
money.
So, we've got about uh 15 seconds to
resumption on this one now.
Okay. So, we've got about 7 seconds to
resumption.
So, we're showing Oh, so we resumed a
little early there. That Oh, I think it
fell early, but Oh, no. I'm sorry. I was
thinking about 24. Anyways, nonetheless.
So, so this is a spot where typically
I'm going to be hands off. I would think
of that as a dip and I would have been a
buyer right there. I'm I'm having to
pull my hands off because I don't want
to make a mistake and impulsively press
that buy button here and end up deeply
regretting it. Now, there's some sell
orders going through there going into
the halt. Um it it it did halt and now
it's showing a $75 resumption.
So, for what it's worth, you guys had
every opportunity to trade this this
one. I'm sitting on the sidelines, but
you had every opportunity to take this
trade. All of our members at Warrior
Trading when I'm giving my commentary
have every opportunity to take these
trades before me if they want at the
same time as me. If they want to buy
after me, it doesn't matter. I'm being
I'm putting it all out there. I'm
telling you exactly what I'm looking at.
So, this is where, you know, okay,
you've got three halts in a row. We're
pretty extended.
So, this is a this is a Black Friday
wildcard stock. It's impressive.
So, when trading premarket, if the stock
moves in the wrong direction below your
position, how do you handle it? So
during pre-market, we don't have stop
orders, right? So I can't just set a
stop and get up and, you know, let it
work. Uh, and if it stops me out, stops
me out. I unfortunately,
you know, I'll have to sell and I
usually would end up selling on the bid.
Now, if I don't get filled, I might have
to cancel my order and sell a little bit
lower because there's no marketable
orders um either. So I just have to sell
with an offset below the bid. So, the
order that I use, and I'll show it to
you here. I go into my custom orders.
Um, so let's see. So, we're going to do
sell half. Um, and I'm going to do sell
bid full. So, this is NASDAQ 10 cents
below the bid right here. Full position.
So, it's going to sell my full position
10 cents below the bid. Now, in this
case, 61, it would be 50 uh 60 90 cents.
So 10 cents below. So it'll just always
be 10 cents below the bid. But if you
have something like this that does have
kind of a big spread and is jumping
around, you know, that that can be um
that can be tricky.
So you know, today's a day where at this
point I'm actually not even above uh one
quarter of my daily goal. So my daily
goal is 20,000. So and 29,000's been the
average this year. So I'm I'm only, you
know, 4500 5,000 is sort of 5,000 is the
line that I would need to cross to take
bigger size. Um I made the conservative
choice today not to push it um and not
to sort of be aggressive on taking this
dip right here. And it's a 100% because
of this history right here of that red
candle into the halt down. that one
right there and this one right here. So
I would kind of argue whatever caused
that those two drops right now,
obviously whether it's a short seller, a
institutional trader, or the company
selling shares, that seller is not here
right now. That seller is letting this
go higher.
They they probably have the shares they
could sell. They're letting it go
higher. Now, by letting it go higher,
that's going to bring in more volume cuz
now people are like, "Holy smokes, this
thing's up 250%." More volume means they
will actually be able to sell and at a
much higher price. So, I really believe
a lot of these stocks, you know, how
much they go up is a factor of, you
know, on the inside what the companies
are kind of thinking because a lot of
these stocks, as soon as they pop up
just a little bit, they're selling
shares. are selling shares and the and
the it's like the company doesn't let
them go up because they just start
selling. Uh and then sometimes we see
this where we're like whoa. Um you know
they're not selling. Even GameStop,
think about GameStop. When Roar and
Kitty came back, what did GameStop start
doing? They started selling 45 million
shares into the volume. There was high
volume. So they were like, "We're going
to sell." and they basically just dumped
all of that stock on the open market to
all of the retail traders and they took
all that money and they put it on their
balance sheet, billions of dollars on
their balance sheet, you know, so a lot
of compan so that they single-handedly
prevented the stock from going higher.
They killed the momentum and they raised
money and you could argue they had a
duty to shareholders and so that was
raising money was the right decision but
uh but they didn't let the stock go
higher. And then on the other hand if
the stock starts dropping too much some
of these companies will announce that
they're going to exercise or they're
going to um initiate a share buyback. So
now they're not going to let the stock
go too low again.
And of course they have the money to buy
it back because they did the offering.
Okay. Okay, so this is going to resume
here and showing currently a gap down,
which gives us the risk that it'll open
and halt down instantly.
Now, if it doesn't,
that's very bullish, but I would be
super cautious here.
So, that's your first halt down. Now,
the only scenario where I would ever
trade that is if it thins out and then
rips back up. It could thin back out by
shorts covering um because you would
need buying to go through. Right now
you've got basically a cross market in
that moment. So three halts up, one halt
down. Predictable total liquidity on
this total volume actually only about
150,000 shares on that resumption.
So um you know it's not there's not a
lot of I mean it's got 10 million shares
of volume but it's halting very quickly.
So, um, for Warrior Pro members, I am
live streaming every morning. Every
morning I'm live. So, starting around
7:00 a.m. and I usually end my stream
around 10:00 a.m. So, today I'm
streaming a little bit longer.
So, why is time in sales red when it's
halting up and green when it's halting
down? So, um,
that's a good question. So, when a stock
is halting up,
when it's halting up,
you cannot have anyone buying above that
price because it's already at the top of
the band. So, the only orders that can
go through are red orders of people
selling. When something is halting down,
it's at the bid at the bottom there, so
no one can sell. So the only orders are
people buying but they are buying from
that um that seller that's basically
holding it back. So I would actually
think that the orders should be entirely
green but um as it goes into that level
but in any case doesn't appear to be the
case here.
Okay so let's see um
let me look for the next question. Okay.
So, Ross, in the scanners, um, can you
explain what's the first thing that
you're looking at when you first pull up
your scanners? So, when a stock first
hits my scanner, like this one, V E, I
don't even need to pull up the chart.
Initially, if I'm on my phone, I just
look at the scanner data here, and I
look at the symbol. Do I recognize it?
The price, the volume, the float, and
the relative volume, and then the
percentage change. So, it's only up 23%.
It's got low relative volume. So in
terms of my five pillars of stock
selection, it doesn't meet it. So I
don't even bother to pull up the chart.
I don't need to. On the other hand, we
have something like, you know, SMX. This
one relative volume is 22. It's up 92%.
Right? So then this is something where
I'm paying a little bit more attention.
10 million shares of volume. I see that
it's got a news flame. So then I click
on it and I pull up the chart. So, when
I'm sitting down and looking at my
scanners pre-market, the scan right
here, I actually don't um I I don't pull
up the charts initially. I'm just
looking at the details of the scan alert
and then deciding how many of these are
even worth looking at the chart on. 58
cents, no.75 cents, no float too high,
float too high.
So, now we can kind of narrow it down to
this one and this one right here. And so
then at that point I pull up the charts.
No, Warrior Trading is not going to do
any prop firm stuff. We're not a broker.
We're not we're not prop firm. Can't
trade money. I don't trade money on
behalf of customers or anything like
that. We're a software company. We've
got all of the software that we sell,
the subscription based software that
we've building out for um all these
years. And then we're um a provider of
education. So, we've got educational
content that walks you through how to
use a software and walks you through my
strategy.
Okay. Um,
so let me look at this uh resumption
quote here. So, halted down at 54. The
halt time was 21. So, resumption will be
26 and 17 seconds. So, we've got about
less than a minute to resumption.
Thank you guys. I appreciate you uh
tuning in and um having watched those
other uh videos. That's great.
Okay, so
just staying tight right now.
We've got about
17 seconds to resumption showing 5125.
So after the first halt down, if this is
bullish, there might be some shorts who
cover. Maybe there might be some traders
who try to buy the dip. But the nine
moving average is at 50 right now. So
it's a little bit further down. So
sometimes I watch to see if it bounces
back up, [snorts] first candle to make a
new high potentially, but that does have
the risk of a false breakout. The first
halt down showing looks like a 10-minute
halt. In fact, that's not totally
uncommon because right now you've got
more people who are trying to sell it
and there's not enough buyers and so the
market makers and or they're having a
hard time matching the order for the
resumption and so it is still halted.
So, showing 5125.
So, now it's going to be a 10-minute
long haul.
So, I can see the resumption prices. Um,
also using Weeble. Um, you have to
subscribe, go in here and subscribe to
NBBO data, NBBO details right there. And
then you'll be able to see the
resumption prices. You can see the halt
levels, limit up, limit down right here.
And then you can see the resumption
quotes
SMS.
So currently showing 5124.
So um not all brokers offer that but um
but but a lot of them do
Um, let's see. Have what differences do
I notice between Weeble Level two and
um, Lightseed? The only difference
really is the is the color scheme that
here I've able to change the colors to
my liking. And I can go into the
settings and I can really change them
under design to be whatever colors I
want. Um, it could change them however
you want and you can't do that at
Weeble. So, they give you a couple
options for appearance. Red and green,
multicolor, or blue. That's it. Three
options. So, your ability to customize
it is limited. Um, but you know that
other than that, it's okay. So, you
know, and in hindsight today, should I
have taken any trades in the small
account? I think in hindsight, keeping
in mind risk, I did the right thing by
not taking any trades today. Trading
SMX,
that would have been a Hail Mary pass.
That would have been extremely risky.
Um, not worth the risk. I mean, yeah, it
went from $36 to 60 bucks, so it would
it have worked, sure, but it wouldn't
have been a good move. So, that was way
too risky. Uh, and then um there hasn't
been anything else I feel like I missed
out on. Okay. So, now we're coming up
about 10:30.
So, coming towards the bottom of the
hour here, 10:30.
So, looking at the quote on this, let's
see, we're still showing about 5110.
So, the resumption quote hasn't changed
all that much.
So, [snorts] do I have a recommendation
for catching one's emotions early before
you kind of go onto this spiral? I think
one of the things that can be helpful is
um journaling while you're trading. So
just having a a pad of paper and just
being like trade one green or red profit
loss. Uh and and then just having a note
of like you know how you're feeling. I
mean because the thing is when you when
you start looking back at this pattern
of like oh trade one lost annoyed trade
two lost more super annoyed. Trade three
got smoked furious. Trade four I'm about
to throw my laptop out the window. Trade
five I've thrown my laptop out the
window. Uh that's when you look back and
you think, hm, maybe right around trade
two when I'm saying annoyed, frustrated,
that was my cue that I should have
walked away.
Um so I did that personally. I started
journaling like that so I could just
kind of get a better grasp in real time
of like sort of tracking my emotions. I
mean, this is the thing like it's it's
hard because we don't have I feel like a
lot of us don't have the capacity to in
real time be very in touch with
are we in our calm, cool, collected,
analytical mind or are we switching to
our emotional, you know, impulsive side.
And the more you trade, the better
you'll get at recognizing these sort of
caution flags are going up and walking
away before you know you give into them.
So, let's see if this resumes here at
the 10-minute mark. So, there's the
resumption and there's some buyers at 50
right now. It dips down a little bit.
So, those buyers got cleared out. Halt
down 46, halt up 56, but we're not we
didn't halt down instantly. So, that by
itself is um you know, moderately
bullish, but we're closer to the halt
down than the halt up. If it can break
over 5250,
I think that would probably be a good
line in the sand just psychologically.
Um this is probably like a one of these
setups that people would trade is like
buying a dip. But you can see the
spreads have gotten big, the liquidity
has gotten kind of worse. um getting in
and out with big size, even small size
really for a dip would probably not be
super easy. Um I don't know what your
fields would be like with a commission
free broker on this, but um you know,
now you've got that candle which closed
with a bottoming tail.
Bottoming tails are typically bullish.
Again, though, it's a $50 a share stock
and the volume is declining. So I feel
like in this spot the risk um you know
outweighs the reward. There could be a
point where we consolidate for longer
and you know we sort of go sideways and
kind of pop up a little pull back pop up
and we kind of identify a wedge in this
area for like a curl back up. But
usually when we start getting into this
this price range I feel like these are
just they're yolo trades. They either
work really well or they fail miserably.
It's hard to have a lot of in between
when you buy something that has a 50
cent, 90 or dollar plus spread. It's
just really hard to manage risk. That's
the reality.
And there's another See, again, look at
these headlines. This is where I really
guys am nervous. There's another
headline there at 10, another one at
10:30.
These are to me like
kind of caution flags that this they're
they're continuing to sort of like
pepper out these, you know, sprinkle
these little headlines out like they're
just trying to add like little little
bits of fuel to the fire. Um I just
don't love I I that makes me nervous
because that makes me feel and I could
be wrong, but it makes me feel like the
company's watching the price action.
and is sort of being systematic about
here's the price action. We need to keep
people aware of the stock.
So, you know, maybe I'm wrong, I don't
know, but that's just how it feels when
I see that and I don't like feeling that
way.
So, I think the um you know, at the end
of the day, I'm up 10,000 bucks on this
stock today. I feel pretty good about
that. Um, I think I left some money on
the table, but as always, if I start
thinking just about how much money I
left on the table, I could have bought
10,000 shares and made $100,000 on this,
you know, while I was doing a Q&A
session. Um,
I'm going to no longer be grateful for
what I've got. And it's really important
to be grateful for what you have. And,
you know, for me, I I am I'm very
grateful for the day. I'm grateful to be
green. Any day that I walk away with a
little bit more than I had at the
beginning of the morning is fantastic.
Obviously, um you know, I'm a little
disappointed the small account didn't
get any trades today, but I'm also
really grateful for you guys um who have
helped me with this uh fundraising
challenge. So, you know, $177,000 that
we've raised so far. Um donated 175,000
of it in total and uh just yesterday
donated another 30,000. Wounded Warrior,
Hole-in-the-Wall Gang Camp, Wings for
Life, Ronald McDonald House, America's
Vet Dogs, and the Genesis Foundation.
So, I'm feeling pretty good here. I'm
feeling really thankful and um
I'm uh appreciate you guys who have
tuned in here. We're coming up um just
past the bottom of the hour. So, I think
I'll um end the session here and uh be
back at it obviously bright and early on
Monday morning at 7 a.m. So, I hope to
see a lot of you guys that have been
tuning in on YouTube um in the chat room
Monday morning. Um if you found today
interesting, I I think you're going to
be really pleased with what it's like to
be a member. So, you're welcome to come
on over, use the uh coupon codes for
Black Friday. When you become a Warrior
Warrior Pro member, you'll have a 7-day
money back guarantee. So, you've got the
next week to give it a try, see what
it's like. And if it's not a good fit,
no harm, no foul. And if it is a good
fit, then you joined with a Black Friday
sale at a great time of year to study
and, you know, to be part of the part of
the community. Learning how to trade is,
in my opinion, very similar to learning
a new language. And you're already
picking up, you know, little bits of the
language when I talk about the bid and
the ask and the spread and um, you know,
we talk about the float and secondary
offerings and warrants and all this
stuff. But the mo the more you immerse
yourself in a community of speaking a
community of people speaking the
language every single day, the faster
you'll learn it. So, uh, thank you guys
as always for tuning in. And reminder,
as always, I'm upfront about this.
Trading is risky. My results aren't
typical. There's no guarantee you'll
find success whether you trade with me
or you learn on your own. So, please
manage your risk, take it slow, and I'll
see you guys back here bright and early
on Monday morning.