A 350% Short Squeeze!

AI Summary

Transcript

What's up everyone? Welcome to day 19 of
my small account challenge of growing a
$2,000 account using Charles Schwab as
my broker. Today's a green day and I
took a total of two trades and both of
them are winners. So today was a much
smoother day than yesterday, which is
good. You know, yesterday I was a little
disappointed to go big green all the way
to red, suffering the biggest loss I've
had during this entire challenge. At
least I almost positive it was. and
then, you know, crawling my way back to
being in the green by 200 bucks. But
since I had that high water mark
yesterday, being up like 2400, being up
200 didn't feel like much of a victory.
So, coming in today was focusing on
quality over quantity. Was able to break
the ice with my first trade. Nice
winner. Second trade, smaller winner,
but that's okay. Finishing now with over
$25,000
in the account that started with $2,000
19 days ago. That's some great progress.
Now, we're going to jump on to the
screen screen share and I'm going to
break it down for you. But as a
reminder, as always, all of the profits
from these small account challenges gets
donated to charity. We've now raised
over $364,000.
And each time you guys hit the thumbs
up, I add an extra dollar to how much we
donate. So, we're coming up here again a
little shy of um the next $5,000
donation, but donating to children's
hospitals around the country. All right.
So, today, day 19, we had one obvious
stock. It was our leading gainer, NXTC.
This had 30 million shares of volume, a
3 million share float, three uh 37,000
times higher volume today than is
typical for the stock. And that is all
thanks to a news catalyst. The news was
a reverse merger with a privately held
company. And these are the types of
catalysts that can really get a stock
moving. when a company does a merger. So
let's say let's say Warrior Trading
wants to go public and there's a
publicly traded company right now that
isn't particularly profitable then what
Warrior could do and this is what these
companies do is they approach them and
they say hey I want to go public can we
merge and then we do a name change and
the surviving entity is Warrior Trading
and it's now a publicly traded company.
So rather than doing sort of the
traditional IPO, um you you you merge in
in this in this way. Um it's
it's not the most effective for uh
raising capital typically, but it is a
way to bring a privately held company
into the public uh markets. So in any
event, NXTC uh squeezing up on this
headline that they're merging with this
other company, bringing them public, and
this was the chart. The problem is all
of this happened before the 7 a.m., you
know, kind of traditional open to
pre-market for most retail traders. So,
I did not trade any of that move. Now,
as we sat down right at about 7 a.m.,
look at this candle right here. This is
a red candle right there, that
rejection. So, I marked out the high of
that candle, and I thought, you know,
and it was about 850, 8:42 or something
like that. And I thought we need a break
over that rejection in order for us to
get back into a good spot. And so that
was the level I was paying attention to
840. And then we had this level here.
And then of course we were back to the
pre-market highs. So my entry was the
break right there as volume started to
come in. I was looking for the break
through that level. So let me just pull
up my chart so you can see it here. And
that was a $1,400 winner. Now um I'm
going to show you the entry right here.
So that was the breakout. Look at that
squeeze. So we broke this level right
here of840 and we went right up to 950.
Micro pullback, a squeeze higher, micro
pullback, squeeze higher, micro
pullback, squeeze higher all the way up
here to a high of over $12 a share. And
I made about $19,000 trading this range
in my big account as well. So green on
both sides there. I was grateful for
that. Don't love the topping tail though
because it shows that although we
squeezed up, sellers pushed it right
back down. So that was a little bit of a
problem and in fact that marked the high
of day for this stock. Now maybe it
rallies up later but as of right now
that's our high of day. So that was NXT
uh NXTs NXTC NXTC $1,400 of profit. One
trade, one entry and well maybe it was
one entry and two exits. Anyways, uh so
that was that. Then uh we had a scanner
alert here on UBXG. NXTC was also
hitting the scanners. I still had that
on watch, but then UBXG um hits the
scanners and it's starting to curl up. I
see that it um is a Chinese stock. I
don't see a headline, but we had this
initial pop to 11, this pullback,
consolidation, then it pops back up
right here, and I bought this little
micro pullback. Now, I actually got in
right about here. It dips down and then
it rips up here. And I was kind of
holding on by the seat of my pants. I
was like, it's got to hold over the VWAP
and it went right to the VWAP and then
it bounced off that level. Goes up to 10
right there. 1040 and I'm out with
$740.99
of profit. It was a closed call. My
account now has 25 a little over $25,000
in it, which means in theory I have
$100,000 of buying power in theory. In
reality, I don't have buying power on
any of these stocks. None of these
stocks are offering leverage, which
means the most I can buy is my cash
balance, which is $25,000. Now, that's
because Schwab is a little bit more
conservative about extending leverage or
borrowed money on small cap stocks.
There are other brokers that are a
little bit more generous, a little less
conservative about letting you borrow to
trade these types of high-risk
securities. So you could see the the
rationale for Schwab. They don't want
people to buy $100,000 of a stock. It
drops 50%. They're down 50 grand. They
only had $25,000 in their account. Now
the account's red 25 grand. That's a
blowup. That's a disaster. Nobody wants
that to happen. So they just figure we
just won't let you trade on leverage for
these higher risk stocks. Whereas other
brokers understand that there's a whole
population of traders that want to be
really aggressive. Yes, blowups happen,
but hopefully not too often. Maybe the
broker puts additional risk measures in
place so if they see you sort of sort of
you know in a position where you're at
risk of blowing up they automatically
unwind your position for you and you
know so they'll take a little bit more
risk. In any case whether you're at a
broker that's a bit more conservative
like I am or you're at one that's um a
bit more liberal with um you know
letting you use the uh the margin it
will it will ultimately actually make a
difference in how quickly you can grow
that account. So my limitation right now
is that I don't have enough cash in the
account since I don't have any leverage
uh on any of these stocks to so I I
don't have enough cash to take big
positions. Uh but at the same time that
also means I'm growing the account in a
safer and probably more sustainable way.
So it's taken 25 day or no 20 days to
get to $25,000. Um, so I'm up 23,000 in
total profit, which means my account has
grown um approximately 1,161%.
45 trades, 77% accuracy. Average winner
is around $516.
All right, so uh, slow and steady wins
the race. I don't know if you'd say this
is slow, but it is steady progress. It's
certainly not, you know, parabolic. I I
am making a bit more than I was making
in the first couple days, but uh but my
average green days have kind of been
steadily around, you know, 1,500 2,200.
I don't think I've had a day bigger than
2900, maybe 2,800. So, you know, I'm I'm
also not overtrading. I'm focusing on
quality over quantity. It seems to be
working. So, thank you guys as always
for tuning in. Reminder for those of you
guys that want to watch over my
shoulders as I'm trading, there's a twoe
trial. The link is pinned at the top of
the comments and in the description.
It's $20 for that trial, but it gives
you access to a selection of my classes
where you can learn more about my
strategy. It also gives you access to
this platform that I use every single
day for charting, scanning, and breaking
news. That's the Day Trade Dash
software. And in the Day Trade Dash
software, we also have a simulator. So,
oops, it's not there. So, you can
practice trading in a safe environment
before you ever put real money on the
line. So, you're thinking, "Oh, maybe I
want to take a trade on this GMM." So,
shift one, boom, you're in a 100 shares.
Control- Z. Boom. You're out. All right.
How much did I lose? A dollar. All
right. I guess I can handle that. But if
you can't make money in a simulator,
you've got no business putting real
money on the line. So, please take it
slow. And reminder, trading is risky and
my results are not typical. I'll see you
guys back at it streaming first thing
tomorrow morning at 7