Biotech Up 300% on Breaking News

AI Summary

Transcript

What's up everyone? Welcome to day 23 of my 
small account challenge of growing a $2,000  
account using Charles Schwab as my broker. Today 
is a solid green day, which is great. It makes up  
for the fact that yesterday was a no trade day. So 
today's Wednesday now. All right, so let's go back  
to Monday. After I finished trading on Monday, 
we ended up having a stock that squeezed up over  
a,000% and I missed the whole move. I'd already 
taken my trades in the morning, wasn't overstaying  
my welcome. In fact, wouldn't have expected such 
a big move later into the morning and even into  
the afternoon all the way to the 4pm closing 
bell into after hours. It kept squeezing. So,  
yeah, I missed the whole move. But then when we 
came in on Tuesday, we were sort of in the shadow  
of that huge move from the day before. And because 
that stock had started at under a dollar a share,  
a lot of people were looking for the next penny 
stock that could go from being a penny stock to  
$10 or $11 a share like that one had on Monday. 
And so the volume was sort of all over the place.  
It was very scattered. It felt very chaotic. 
And I didn't end up taking any trades in my  
small account or any trades in my big account. 
It was just a no trade day. So then come back  
and and so then so that was yesterday morning, 
Tuesday morning. Then as the day went on,  
we ended up having another stock that squeezed 
up and this one went up over 2,000% yesterday.  
Holy smokes. Now the common denominator 
between the stock on Monday and Tuesday,  
both of them had no news to substantiate the move. 
They are both Chinese stocks squeezing up with no  
news whatsoever. Traders were jumping on them. 
Shorts were getting squeezed. I mean, you can  
understand why shorts would be shorting a stock 
going up on no news. It doesn't really make sense.  
Well, people argue the same thing when GameStop 
started squeezing up and Melvin Capital lost $6.7  
billion with that approach. So, you know, the 
markets can be irrational and these two stocks  
were irrationally strong. So, then coming in this 
morning, the stock that had made that big move  
yesterday was still holding up and definitely 
attention was looking for sort of the next  
stock that fit that theme. A Chinese stock 
with no news that was also a biotech stock.  
H I wasn't sure about that, but then we ended up 
having a different biotech stock that came out  
with breaking news this morning and it started 
to squeeze. And that's the stock that I traded.  
I took a total of two trades and it wasn't 
super clean. I mean, the first one was good.  
The second one I held in the red for a bit longer 
than I probably should have. So, we'll break down  
that trade as we jump into it here with a 
recap. Now, as a reminder, all the profits  
from these small account challenges gets donated 
to charity. We just crossed over $380,000 of money  
raised for charity. And so, I donated $5,000 this 
morning to the Oklahoma Children's Health Center,  
which is like a children's hospital. So, 
did that donation just this morning and um  
I thank you guys as always for uh hitting 
the thumbs up because the way I'm doing these  
donations is every time uh you hit the thumbs up, 
I add an extra dollar to how much I'm donating  
um to these hospitals. So, the goal is to donate 
to 50 children's hospitals in the United States.  
It's the 50 ch 50 state children's hospital goal. 
So, Oklahoma got $5,000 today. And actually,  
I got to update this to 380,000 thanks to 
that donation I just made uh this morning.  
All right, so there we go. So, that's that. 
Now, these are the two previous moves. Um  
ZYBT right here, which went from about 60 cents 
a share all the way up to 11 and then came just  
plummeting back down to earth here. Pops back up, 
pulls back, pops back up again, comes back down.  
Then we had CPHI goes again from 50 cents a share 
all the way up to 10 and then up to a high of  
nearly $20 a share over 2,000% drops down pulls 
back rallies back up in after hours but then pulls  
back again. So this morning when we got a scanner 
alert at 8 a.m. on LABT initially I thought oh  
it's a US company I guess traders aren't going to 
care about it because it and oh it actually has  
legitimate news so they're definitely not going 
to care about it. And the reason I thought that  
was because we actually had another stock this 
morning, IMN, that popped up, uh, IMM, that popped  
up on news of a $200 million private placement, 
uh, for the development of a migraine medication.  
And the stock immediately went from well, a dollar 
yesterday to a high of almost $6 a share. So,  
the percentage return on this just, you know, in 
that little squeeze was I guess it was about 300%.  
Uh, I thought it was a bit more than that, but 
nonetheless, ends up making this this nice move  
here. Uh, what was the close yesterday? Must have 
been higher than I thought. Yeah, I guess it was.  
So, but then it comes all the way back down. 
Higher volume selling, not great. So, that kind  
of surprised me that in spite of what seemed 
like a legitimate catalyst, a good headline,  
that the stock would fail. And that made me think, 
uh-oh, are we in one of these markets where good  
news is somehow bad news? Um, so this was um the 
$200 million private placement and then this is  
um news about a um uh again that same uh the same 
medication. So I you know I I was I was genuinely  
surprised that this failed so dramatically. 
So then I'm thinking all right well I guess  
no news is better. I don't know. So when 
LAT first hit the scanner I was like yeah  
it's probably not going to work. It was sort of 
you know felt a little defeated about it. Um,  
but I I look at the daily chart and I see that 
the all-time high shows at about $100 a share.  
There's three days with higher volume, maybe four 
here, but the highest volume was 4 million shares  
on the highest volume day ever. So, it's a 
somewhat recent IPO. It IPOed and then it  
sold off. In fact, they had to do a reverse split 
because of the fact that it had already gone below  
a dollar a share. And now here it was back down 
to this lower price. So, yesterday it was at about  
$180. This morning it pops up. I sort I ignore it. 
don't care. Pulls back. Then it squeezes up again.  
Micro pullback here and goes up to 360. 
When it went up to 360, I was like, "Okay,  
well, now this is something I have to consider. 
I mean, the stock's up over 100% on the day.  
This thing is clearly moving." And so, it pulls 
back right here. As it squeezes back up, this  
is a micro pullback right there. And that's where 
I took my first trade. Now, I actually have this  
um slide titled uh from Monday's recap. So this 
is just the pre-market chart. Uh pre-market chart.  
All right. So back to there. So uh so I took this 
micro pullback here and we got this squeeze from  
360 up to 460. Nice. Up to 560 up to 660 up 
to a high of just under $7. But then dramatic  
topping tail. It flushes back down. Pops back 
up. Flushes back down. So I got my first trade  
in and out right there. So this was the first 
trade. And then as it's pulling back right here,  
right there, I get back in. I'm like, here we go. 
But I get filled at about just under $6 a share.  
And then it immediately flushes back 
down to five. And I was like, uhoh.  
Well, I'm in this a little higher than I planned. 
So I'm in here at about 565, something like that.  
And it drops back down here to about 480,490. 
So I'm down almost a dollar a share on this.  
And I was green plus 1,800 on this move right 
here. And then uh right there. And then on this  
pullback, I was uh minus $900 on the day. So 
my P&L, you know, I was down over 2,000 almost,  
you know, $3,000 on that trade or no, $2,700, 
but anyways, was was still almost $3,000.  
Close enough. So I was down quite a bit 
on that trade and I held. Why did I hold?  
I really felt the setup would work. I recognized 
I timed it wrong and if I had been able to get  
in and get out with like a five-cent loss, I I 
would have done that. I believed in the setup.  
I really thought this would work and we would 
retest the high. The question now was how long  
could I continue to hold before I'd have to throw 
in the towel. And so connecting the low here and  
the low here, we formed a bit of a ascending 
support trend line as you can see right here.  
Now, we broke the low of this trend line back here 
to five. And this was sort of my scariest point  
because I was like, "All right, now we're below 
that trend line is I just don't know." But then it  
it immediately bounces back up over five, goes 
up to 550, 560, and now I'm like, "Okay, I'm  
in the driver's seat." It pops up to six, micro 
pullback, and it rips up to 620, 640, 68,7, hit  
a high of 740, and I took the rest of it off the 
table, and I sold pretty quickly into that move.  
So, I had the right idea. I made $2,24211, but 
that second trade only added eight uh well no $400  
uh but was as it turned out risking more like 
$3,000. So not a good profit to loss ratio on  
that last trade. But total profits with two 
trades brings my account up to about $32,000,  
which means my account has now grown over 1,500% 
since I started with $2,000. That was 52 trades  
ago. I've maintained about 78% accuracy and 
the average gain loss per trade is about $600,  
just under. So, I'm making good progress growing 
the account and donating the profit to charity  
as uh as I'm able to now. Well, so I'm putting 
the donations on my American Express card,  
so I'm getting a couple of points for that. 
Uh I'm not taking the money out of the  
account to make the donation. If I did that, I'd 
perpetually keep myself in a really small account.  
I don't really want to do that. I want to have 
more buying power so I can take more trades.  
But nonetheless, I am donating the amount equal to 
how much I'm making trading plus your thumbs up.  
And I'm giving my account the chance to grow 
a little bit more so I can hopefully have even  
more money down the road to donate, which would 
be that's sort of the win-win. So, that's where  
I'm at right now. And for those of you guys that 
want to watch over my shoulder as I'm trading, um,  
if you haven't already checked out the twoe trial, 
there we go. Twoe trial. Link is pinned at the top  
of the comments and the description. During your 
two-eek trial, you'll also get access to uh the  
same software that I'm using every single day, the 
charts, the scanners, and the breaking news feed.  
And so that gives you a chance to really test 
out what it's like uh you know, to be actively  
trading the market using the same software. Now, 
we have a simulator built into our platform. Uh  
maybe I I had it open yesterday. No, I got to 
open it again. Um so, we've got a simulator there.  
We've got our uh classes here. So, on the members 
dashboard, you can go to the education portal  
and then you go into day trading the basics. 
And while you're doing the two-eek trial, you'll  
actually have access to uh the first six chapters. 
So, you can go through all of this content here.  
Um, and the sim is only available for full 
uh full-fledged members at Warrior Trading.  
This costs us a little bit more to operate, so 
we don't give this as part of the uh twoe trial,  
but this is something that members are 
able to use to practice trading in a  
safe environment. So you type in the ticker. 
Oops. Labt. Make sure you type it correctly.  
And then you say, "Oh, I want to jump in there." 
So shift one. Just bought a 100 shares at 495.  
497. 498 on the ask. There's $4.99. Coming up to 
five. Boom. I'm out. And just like that, locking  
up a little bit of profit. $8. All right. Not bad. 
That's just I just punched it at a random time.  
But the more you practice, you can start using 
your um using your metrics here to get dialed in  
on your aptitude, what you're good at, what 
you're not good at. Now, for me, I'm mostly  
just pressing the buttons and kind of gooseing 
around here. So, I don't have very good metrics,  
but I hope that you will take it a little bit 
more seriously than I am right there and actually  
uh make an effort to see if you can make money in 
the sim. All right, so with that, I will be back  
at it first thing tomorrow morning. So, I hope 
to see you guys in the chat room streaming at 700