I Just Made $40k in 10-minutes of Day Trading...

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Transcript

What's up everyone? All right, in today's 
episode I'm going to break down my trades  
from the morning. I am sitting in the green. No 
surprise, wearing my green shirt. That's right.  
You might say, "Ross, weren't you wearing your 
green shirt? Yesterday was no trade day." Sh,  
don't you worry about that. We're in the present. 
We stay in the present. And in the present,  
I'm up 40 grand. Solid green day. And I did it 
in 10 minutes. That's right. From 8:05 to 8:15.  
That 10-minute window was all I needed today to 
lock up $40,000. Let's jump onto the screen share  
and start breaking it down. Now, I got the same 
trade in my small account where I made $2,242,  
which again highlights uh the fact that if I was 
only trading in the small account, I would be um  
leaving a lot of money on the table. So, not every 
trade I'm able to take in both accounts. Sometimes  
it just moves too quickly and I just simply can't. 
Uh but in this case I was able to so that was  
good. Got some profit in the small account. Got 
some profit in the main account. Feeling pretty  
good about uh where I sit now on the week. So 
let's see um the So basically this is kind of  
how the day played out. First of all, as you know, 
we had Zybt on Monday, made this huge move. It's  
now come back down. Um but you know, unbelievable 
1,000% squeeze. Just insane. So this is all sort  
of setting the stage of the current context. So, 
we get this huge move here. Then yesterday, CPHI  
makes um an even bigger move, 2,200% from 60 cents 
a share all the way up to nearly $20. Sells off,  
bounces back up, sells off, bounces back up, and 
selling off really hard right here. I mean, from  
seven down to two bucks. Okay, so you know, look, 
not surprised. These are Chinese stocks. What did  
they do? They did an offering. So, you get that 
big move, they do an offering, they sell more  
shares on the open market. And you know that's it. 
Let me take a sip of water. Hang on one second.
Matching green water bottle, green shirt. All 
right. So, we're in really good shape today.  
Okay. Um so then, um because we had this 
theme of biotech stocks making big moves,  
I was aware of that. Of course, these were 
Chinese stocks with no news. So, you know, wasn't  
really sure we could trust it. We had INM this 
morning, biotech stock, um that comes out with  
news of a $200 million private placement uh for 
advancing their migraine prevention medication.  
It goes from a dollar yesterday up to a high 
of 550 and then flushes all the way back down  
on a $200 million private placement. That's 
surprising. That's a lot of money. It's it's  
I'm really surprised. So then I thought, well, 
geez, even a stock with what would typically be a  
really good catalyst isn't working. I don't know 
what to do today. This might be a no trade day.  
And that's what I I said. This might be a no 
trade day. This might be a week where it's just  
this whole, you know, no news China thing is a 
little distraction and I'm just going to miss it  
because I don't trade later in the day typically. 
I've got other things I got to get done.  
And that's how I've just, you know, set up 
my life and my schedule and I stick to it.  
I don't really try I try not to make exceptions 
because the one day you make an exception might  
be the day it doesn't work well and then you just 
feel frustrated. So anyways, then LABT pops up on  
the scanner with news at 8 a.m. And I kind of 
wrote it off. I was like, "Nah, I don't think  
this is going to work. It's a stock with news, but 
um remember people only like stocks with no news."  
So it's hitting the scanner here. This is the 
headline. Um phase two. All right. So, you know,  
better than phase one, but still taking it 
with a grain of salt. And as you can see here,  
we went from $1.50 all the way up to $8 a share. 
And uh we got a 300% move. Holy smokes. So,  
where did I finally break the ice? All right, 
we're going to switch this to actually a  
10-second chart so I can keep my trend lines on. 
Um, and we're going to get dialed in on it. Oh,  
before we do, uh, let's look at the daily chart. 
So, daily chart on this somewhat recent IPO.  
Sold off. They had to do a a reverse split curling 
up today. Today's the highest volume day it has  
ever had. And I thought that was important that it 
was a high volume day ever. highest ever because  
it to me reduced the likelihood of bag holders 
from previous moves. It would be selling just to  
you know get out and take profit. So on the one 
minute chart now the 10-second time frame actually  
we're going to back this up. So when we initially 
start popping up um right here right after 8 a.m.  
I didn't think much of it. I was like I don't 
know. Then it squeezes up here to a high of three  
and I was like okay that's a nice move. micro 
pullback and it goes to 360. And I was like, "Wow,  
okay, I need to focus on this." Then it pulls 
back. Then it pops up here and that's where I  
took my first entry right here. Looking for the 
breakthrough 360 and then adding as it squeezed  
higher. Goes to 4, 450, 5. I'm still adding 
into the move. Now we're getting pretty much a  
parabolic squeeze. All of a sudden, it prints 698 
just for a second and it flushes right back down.  
There weren't a lot of um shares that went 
through up there. So, it flushes right back down.  
I'm like, uh, okay. So, I get out. I take my 
profit. Um, then it bounces back up right here.  
That first trade was about $20,000 of profit. 
23,000, something like that. It dips down and  
I start doing dip trades. I buy the dip, I sell 
as it pops back up. Um, did a little dip. Um,  
adding up here for the breakout. This one didn't 
really work very well. Uh, drops back down  
and through this area. I was watching for the 
break back over 550 and then the break of six and  
right here it pops over 550. Then it comes up to 
six and so I'm trading these little breakouts here  
and then adding as we squeeze up for a second time 
up to seven and then all out as we get that push  
and it forms another topping tail. So now what 
I ended up doing I drew a couple lines. I drew  
this line right here um at the previous high a day 
which was 698 and I drew this ascending line right  
here by connecting the tops of these candles um 
just like that on the 10-second on the one minute  
though is where I drew it. Uh and then I drew 
another trend line at the high of day and then  
I ended up having another trend line here. So kind 
of drew a few different trend lines. We sell off,  
pull back, then we rally back up here again 
and we get this big squeeze back up there.  
I did not trade that one. That one I missed. I 
did not think that it was going to be able to make  
that um that move because at that point on the 
one minute chart, I sort of felt like, you know,  
we've got um these two topping tails, ascending 
resistance. I don't know, MACD's negative. I don't  
think it's going to happen. So, I actually got 
up. I walked away from my desk for a second. Then,  
I heard ding ding ding. I came back and I had just 
missed the move. And I was like, well, whatever.  
I wasn't going to trade that anyways cuz the MACD 
was negative. I didn't think it was going to work.  
So, um, you know, so all of a sudden, um, 
you know, things just sort of, uh, we we  
got this big move and then it kind of slowed down 
and kind of went sideways and and that was sort  
of it. Um, so, you know, that that ended up being, 
um, very impressive. Uh, right now you've got ZCMD  
squeezing up. Um, guess what? It's a Chinese stock 
from $2 to 660. um you know it's it's the latest  
one today and I think on the one hand you know 
traders are going to be like okay this one's going  
to be the next one to go up a thousand%. Right. Um 
but I think you also have to remember that stocks  
going up a thousand% on no news doesn't last 
forever and eventually the companies are going to  
take the opportunity just to sell shares because 
holy smokes it's like a gift for them. their  
stocks up a thousand% with literally no news. So, 
it would almost be like against their fiduciary  
best interest for shareholders not to sell a 
little bit when they have the opportunity because  
then that means they don't have to do an offering 
later at a lower price. So, sell some shares. Um,  
and short sellers are going to get, you know, 
onto this that okay, well, you know, look at um  
Zybt on Monday. You know, this one's now back at 
a dollar. So, I just have to make sure I don't get  
in too early so I don't get squeezed out. CPHI, 
what's that? Back to $1.96, right? So, shorting  
these works as long as you're not in too soon. But 
how soon is too soon, right? When is too late? And  
that's the thing. We You could have shorted on 
the backside here and then it goes from 8 to 16.  
What if it had ripped through the new high and 
then it's at $25, $30 a share, right? See, that's  
the thing is all of a sudden things can get out of 
hand pretty quickly with these. So, um, you know,  
so I'm not trained to the short side, but I think 
that you just have to be aware of the fact that,  
um, there's probably some limit to what we can 
expect. And, you know, look, if you're doing well  
and making money, by all means, you know, keep at 
it. But just remember that at a certain point, um,  
these will probably stop working. And when that 
happens, you know, whenever it is, you got to make  
sure you adjust quickly to take your foot off the 
gas. So, you're not still going like full throttle  
while these are um starting to fail. But today, 
ZCMD up 348%. I don't know if it's going to  
go to a,000%. I I almost feel like it might not 
because it's moving almost too quickly right now,  
which is kind of like a symptom of FOMO that 
traders are jumping on something really really  
fast. So, it's not having as much of a chance to 
build up. It's probably not also having as much of  
a chance to trap short sellers. So then the people 
buying up here might not be shorts covering.  
It might be longs just chasing hoping for short 
covering. But I don't know that this has the  
same dynamics as the other ones from from the 
other day. The last two days have they were more  
late morning afternoon moves. I think they had 
more time to build up and accumulate shorts.  
And after two big moves, I think shorts are 
probably going to be pretty cautious. So anyways,  
I'm not trading it. Just my two cents from 
the sidelines. This is always a challenge of,  
you know, when's the right place to walk away? 
Um, should I push it harder and this could be an  
$80,000 day. I didn't give back profit off the 
top. I just finished basically at high a day  
and there were no more setups on LABT and then 
the bell rang and I thought, you know, trading  
after the open and dealing with halts creates 
this extra risk because what can happen here?  
So, right now we're showing a resumption at $799 
because the market has been so hot. This might  
go into a fourth halt. It's already done one 
halt, two halts. That's a third halt in a row.  
So, let's say it does a fourth halt. 
Let's say it halts up at eight. Um,  
what's going to happen most likely sooner or later 
is that this will resume and it'll halt down.  
And when it halts down, if you don't if and 
this this can halt in as little as 15 seconds.  
So, if you don't have a chance to get out before 
it halts going down, you're going to be stuck.  
you're gonna be stuck in the halt. And 
because it halted going down, all of a sudden,  
the sentiment has swung from the fear of missing 
out and the greed of I want to make money on this  
next big move to the fear of I'm going to catch 
a big loss or maybe a greed on short sellers part  
of I want to hit this to the short side and it's 
going to flush back down. So, if it halts down,  
then it's going to probably show a lower 
resumption. So, if it halts down, if it goes up  
to 10 and then halts down at eight, it might show 
a resumption of like $6. So now it's showing, you  
know, in that halt down scenario, a gap lower, it 
opens. It could halt down a second time and you're  
still stuck. Especially if you're using one of 
the slower brokers. Now, there's some brokers out  
there that are really fast. You can get in and out 
so quickly. And there's others where, you know,  
you're going to be fumbling a little bit. And this 
is not a stock where you want to fumble because  
if you're fumbling on this kind of stock, I mean, 
you could get completely smoked. That's the issue.
So, showing right now, you know, a resumption 
of 801. Um, it's a 10-minute long halt.  
So, on this one, um, you know, we're getting, um, 
these longer halts. This one was halted from 9:46  
until 10:16 previously. So, it was a 30 minute 
long halt. Halted from trading for 30 minutes. Why  
it, you know, it's because it was gapping up 
so much. Um the previous halt was 15 minutes  
and then the next one's 30 minutes, but they're 
making these long halts, it's essentially slowing  
down the momentum. It's because the gaps are so 
much higher, it's extending the halt time. So  
arguably this same move if it occurred pre-market 
well you know pre-market is when you could  
actually see a stock go like CPHI from uh you know 
$10 to 14 in five minutes in less than five just  
straight up from $10 to $16 a share. I mean we've 
had stocks that went up like 20 $30 a share in  
pre-market and they don't get halted. They just 
go they just keep trading. They just go higher,  
higher, higher, higher, and you can get out 
anytime you want, and you could add anytime  
you want, and it's perfectly liquid. You're not 
fumbling around dealing with halts. Now, yes,  
it's volatile. Um, they can also drop like that. 
Um, you could see this drop was from seven back  
down to $183. No halts. So, you know, you've 
got to be careful. But I much prefer to trade  
um during the pre-market or after hour 
session without halts at this point because  
of uh just that feeling of being stuck. And then 
what about the risk of a T12? What about the risk  
that the regulators come in and say, "You know 
what? We've had enough of this ZCMD, you're halted  
until you put out news. We're we're just putting 
a clamp down on this. We're stopping it."  
So now it's going to be halted. If that was the 
case for four or five hours until the company  
puts out a headline, you know, well, what time is 
it in China? Are we going to get a headline out  
today? Maybe it's not Maybe it doesn't resume till 
tomorrow. So if you've got a short position now,  
you're going to pay borrowing fees for two 
days overnight. What if it's halted for a week?  
Well, now you're paying borrowing fees for a week 
if you're short. If you're long, your money's  
tied up. If you're if you're in on leverage, then 
you're paying interest on the leverage, although  
that's going to be a smaller amount of money 
than the uh the daily interest rate than than the  
locate fees for borrowing a short. So, all of 
this just creates a bit more risk. Uh I would  
rather just trade uh pre-market. So, um anyways, 
that's where I'm at. Good luck if you traded it  
today or if you're still trading it uh depending 
on when you watch this episode. But I'm going to  
take the money and be grateful for the green 
day. Today is the biggest green day for the  
month of July. Monday was the biggest green day 
and I beat Monday by $14,000. So now two of the  
biggest green days of the whole month in one week. 
I'm up 65 $66,000 on the week. Nice. All right,  
so we've still got a couple days left. Let's see 
what we can do on Thursday and Friday. Those you  
guys who haven't already checked out a two-eek 
trial here at Warrior Trading, I hope you check  
it out. During the trial, you can use the same 
software I'm using. Real-time charting, scanning,  
real-time scanning, breaking news feed. We've also 
got the chat rooms, of course, where you can tune  
into our broadcast. I broadcast in the pre-market 
session, and then I have um other traders who have  
earned their million-dollar badges here at Warrior 
Trading who broadcast uh at different times of  
the day to give you guys more content. Uh we've 
got our SIM trading uh platform here, so you can  
practice jumping in, jumping out. So, if I pull 
up ZCMD, it'll say equity halted. Can't trade it,  
right? but it does show you the resumption 
quotes. Then, uh, you can go through the  
first six chapters of Day Trading the Basics as 
part of your two-eek trial for 20 bucks. So, um,  
go through it. I hope you guys enjoy it and I'll 
see you back at it first thing tomorrow morning  
at 7 a.m. But let me remind you as always that 
trading is risky and my results aren't typical.  
So, please manage your risk by practicing in that 
simulator before putting real money on the line  
and take it slow. All right, so with that, I'll 
see you guys bright and early tomorrow morning.