I Took A Ride On The Rollercoaster...

AI Summary

Transcript

What up, everyone? All right. Well,
today was a rollercoaster. I didn't
start by going up. I started by going
down and then finishing back into the
green.
We continue to see these Chinese stocks
with no news making huge moves. And
today, we saw something that was almost
unprecedented. We almost never see this.
Stock comes out with the news of a
secondary offering and it drops like 50%
and then suddenly it rips from a low of
about $1.50 to $8 a share.
It's insane. And some of you guys
probably traded it. I missed that whole
move. I totally didn't expect it. By the
time I actually had the level two up, it
was already showing like $7.50. I was
like, I cannot get in up here. This is
insane. And then it pulls back and well,
let's go ahead and jump onto the screen
share and start breaking it down. So,
we're going to begin with ZCM D, which
was actually the stock that made our big
move yesterday. So, at 9:00 a.m. they
announced a $5 million offering. And if
we look at the news headline, the price
is at a $1.10 per share. All right. So,
this is um
a relatively low offering and the result
is that it essentially, you know, values
the company low at only a dollar a share
for 4. whatever million shares, 4.8
million shares. And it has the effect of
increasing the float, right? Selling
more shares on the open market. Now, the
float's still pretty low, but it
increases the float by like 4x, you
know, from a million to 5 million
shares. So, the news comes out and what
happens? The stock drops. And usually
this is kind of the nail in the coffin
and that's the end. They drop and then
they continue lower and within a few,
you know, days,
they're below a dollar a share.
You know, in a few weeks, they're below
50 cents and then, you know, are they
going to do a reverse split at some
point because the stock keeps going
lower and lower. And so, a lot of short
sellers look at that kind of news
headline and that nail in the coffin is
being like that's the place where I
should just short it, and now I can just
hold this for a while. It's very
unlikely that it's going to get back up
to this previous level, and it's almost
impossible that it would somehow squeeze
to nearly $8 a share in 2 minutes, but
that's exactly what happened. So, the
unexpected happened here. It sells off
to $1.50, it bounces back up to $2.50,
then it's going sideways here, and then
it breaks this level and just explodes.
It goes from 3 3 54, 455, 556, 657, and
I pull it up right here, and thank
goodness I didn't punch the buy button,
because then it flushes all the way down
to
you know, $2, $2.30. Then from $2.30 it
bounces back up to 450, which by itself
is an unbelievable bounce. It's more
than 100% on the bounce. That's just a
dead cat bounce, and we got that big of
a move. Then it pulls back, and then
right here it pulls away. It ends up
going up to a high of 650, right there.
Then it drops back down, and I missed I
missed all of this, I missed all of
this, and I decide to take this trade
right here adding at about 550, 570, and
looking for the break over six, then
looking for the break through 674, then
looking for the break through this
level, and then we're back to looking at
a retest of yesterday's highs, which
were up here around $12 a share.
Well, that didn't end up working out so
well, and it flushes back down, and I'm
immediately down $11,000.
Yikes. That is not what I was hoping
for.
It curls back up again, I get back in it
here, and I lose another thousand bucks,
and so I am down $12,548.45
on this stock. And I didn't even trade
it yesterday, so I've no cushion of
profit. I am just red on it,
which is super annoying, but it is what
it is. Now, I had cushion on the day of
$579 from GEM, but that was it. If we
look at GM, GM is also a Chinese stock
up Hong Kong with no news. So,
recent reverse splits as you could see
here, popped up, pulled back, popped up,
then right at 7:00 a.m. it squeezes, and
I jumped in a little high in that move
and had to get out very quickly. It was
sort of a close call, ends up rolling
over, doesn't end up giving us more
action. And so, I was in and out of that
with 579 bucks. So, basically
a break-even trade on 10,000 shares, in
and out, 5 cents a share, whatever. Um
and then I just sat tight. ADVB popped
up on the scanners. Although it's moving
higher and it is amazingly broke
yesterday's high in spite of yesterday
being a shooting star candle, I felt
like the risk was too high on that, so I
didn't take it.
Um spreads were bigger, so there were no
trades on that. WeBuy, this is a cheap
stock, wasn't interested in that, no
trades there. LGCL, no trades there. So,
I'm sitting down $12,000 as we're coming
into the open.
And then I see, well, you know, EHGO, as
I discussed in my small account recap,
actually looks very similar to ZCMD
yesterday. So, ZCMD yesterday, coming
into the open, was a flat-top breakout
pattern here um against 3.15. And it
rips through that level and it goes all
the way up to nearly $12 a share. So,
when I saw EHGO also being a Chinese
stock, uh I was interested, but I did
recognize the 200-moving average here
could be an issue, and that did end up
being resistance.
Nonetheless, my entry, right down there,
$3. I was looking for the break of
three, and I got in on that first
5-minute candle to make a new high. Then
it goes to three, I start with 35,000
shares right there. So, I that's my
starter position. Yeah, it's a bigger
position, but it's also a cheaper stock,
was pretty thickly traded, had millions
of shares of volume. So, I add there,
and then I'm adding as it's squeezing
higher. And I'm adding and adding and
adding. And so, I ended up taking a
pretty big position on this. I sized up
in a big way. It squeezed to 350 to 4.
I'm still adding. It goes all the way up
to 450, and then I start unwinding
profit, and we got the squeeze through
the open. So, I actually held this
through the 9:30 opening bell, um you
know, kind of right through here.
And so, I ended up making $41,000 on it,
which was a really solid trade.
Uh and so, you know, now I'm just had a
big swing from red 12,000 to green
29,000
and that uh that that is meaningful.
That's that's a really nice swing to
have. So, if you look at my P&L here,
and we look just um month to date, so
this month here for July, thanks to
yesterday's $40,000 green day, I jumped
up in my P&L to um you know, 177,000
on the month. Now, thanks to today, I'll
be a little over 200,000. I was noticing
the green days were getting bigger, and
I was kind of wondering is today going
to be, you know, something like this?
Um not exactly, but uh but that's okay.
Nonetheless, it's still a good day. What
is interesting about uh this month is
that my accuracy has been a little lower
than average, but my profit loss ratio
has been bigger than average. Three to
one profit loss ratio here. Um which is,
you know, pretty solid. We look just
back at the last um you know, the last
12 months just for example, and um you
know, this is more like a little less
than two to one. So, being at three to
one is pretty solid. 68% accuracy is
kind of like over, you know, much longer
periods of time. Um that's a year.
That's over 10 years. 10 years right
where I'm at. But over 10 years, my
profit loss ratio um is a little closer
to one to one. So,
you know, it um I guess it all kind of
um balances out, but um but nonetheless,
um you know, this is kind of what I'm
seeing right now, which is that um in
this market, we are seeing some big
moves, but it's a little harder to
predict it. So, that's the importance of
taking a starter and jumping out right
away if it doesn't work. It hurts
accuracy to do that, but that doesn't
really matter. When you have a starter
that's working, then I'm adding to it
aggressively, and boom, that's how I'm
getting the 3:1 profit loss ratio. So,
that seems to be working well right now.
I'm going to keep it up, and
that that's about it for me. So,
I'll be back at it first thing tomorrow
morning, and I'll remind you guys as
always
that my trading my results are not
typical. But you've got to manage your
risk, and
if you want to check out this green
shirt, there's a link pinned to the top
of the comments. We have them in men's
and women's. So, check out the green
shirt, and if you want to watch over my
shoulder as I'm trading, then check out
a 2-week trial. The link is also pinned
right next to the green shirt link in
the comments and in the description. So,
again, please take it slow and practice
in a simulator before putting real money
on the line, and I'll see you guys back
at it streaming at 7:00 a.m. tomorrow
morning.