Oil and Gas Sector Stock Makes a 150% Move on Breaking News

What's up everyone? Welcome to day 39 of
my small account challenge of growing a
$2,000 account using Charles Schwab as
my broker. For those of you guys who
have been tuning in regularly to the
updates in this small account series,
you'll notice the location has changed.
That's right. I am on a little bit of an
adventure here. I'm in the back of my
mobile command center. This is a
Sprinter van that I've outfitted with my
multimonitors in the back. I've got a
Starlink mounted on the roof, solar
panels on the roof charging batteries
that are under the bench that I'm
sitting on right now that allows me to
trade from pretty much anywhere this 4x4
vehicle can travel to. I am in the
wilderness in Maine. Pulled over off the
side of the road right now um and found
a good spot where I could trade. Locked
up some profit this morning. taken my
boys on a camping trip here to mark kind
of the end of the summer, which is
something we've been doing um for now
four consecutive years. This is my
fourth year using Starlink and it
continues to get better. The first year
I used it, it was a little hit or miss.
Second year still a little hit or miss
and then last year was great and this
year has uh been terrific. This is the
second trip I've taken using it this
year. So, we're going to break down my
trades from the morning. Um, as always,
all the profits from these small account
challenges get donated to charity. And
every time you guys hit the thumbs up,
you add an extra dollar to how much I'm
donating. We have now raised over
$480,000.
And I've donated $485,000.
Today, donating to a children's hospital
in Puerto Rico and a children's hospital
in Washington DC. So, we have donated to
all 50 states, 50 children's hospitals
across the United States, plus
Washington DC and Puerto Rico. This was
the goal and we have achieved it. But
I'm a little shy of crossing over
$100,000 of profit in the account. So,
as I continue growing the account up
towards $100,000, we'll continue doing
uh donations along the way. So, today's
day 39, and we had one stock that was
the clear leading gainer today. It was
the most obvious stock and we had to be
patient. We had to wait for it a little
bit. SOT was the leader uh earlier in
the morning. As you can see, it's up
65%.
However, it is a bit more expensive at
$21.84
a share. And it was the price alone that
kept me out. I just felt like for the
small account, I wouldn't really be able
to buy enough shares. It would just be
too risky. So, I left that one alone.
BTCT is a crypto stock. This one didn't
perform well. Lucy's an innovative
eyewear company. Ignoring that one. Um,
none of these were really up quite
enough, so I ignored them. Um, but XP
came out with news right around 8 a.m.
And when it first popped up, I evaluated
it based on my five pillars of stock
selection. Number one, was it up more
than 10% on the day? Yes, 150%. What was
the relative volume? More than 5x? Yes,
it was 81 times above average. Did it
have a news catalyst? Yes. What was the
price range between 2 and 20? Yes. Was
the float under 20 million shares? Yes,
it met five out of the five pillars.
However, XP's headline was that they're
going into exploration with um GA oil
and gas. And
you know, that sector hasn't
historically worked really well.
Certainly this year has not performed
well. So, when it first popped up, um it
popped up and dropped down and I
thought, yeah, no surprise. Then it pops
up, has this red topping tail candle
right there, and it drops down again.
And I thought, "Yeah, no surprise." Then
it goes up, tops again, and drops. And
on that candle, the green one there with
the big topping tail, I thought that was
the high of day. And then it pushed a
little bit higher up to just under $7 a
share, which is where I drew the top,
the beginning of that yellow line. It
then pulls back, dips down, and I was
watching it in here for a curl back up,
but we kept having these topping tails,
and I just thought, you know, I don't
know, this one's weird. And then ended
up coming to, you know, basically a
double top right in this area, sells
off. Then it comes back up again. And
when it came back up again, it ends up
going all the way up to seven, up to
750. little micro pullback, pushes up to
eight, and I finally jumped in near the
top of the move at $8. So, this is my
trade. I got in right there at that
micro pullback for the break of eight.
And you know what's interesting is this
order took about 4 seconds to execute. I
bought 10,000 shares. Taking 4 seconds
to execute is too long. It's 3 seconds
too long. Three and a half seconds too
long. execution speeds should be
instantaneous. And what was interesting
was I pressed the buy button and I just
watched this order fill slowly. 50
shares, 22 shares, 10 shares, 14, 2, 1,
you know, 1, 1, 11, 12. I mean, this is
like a very ridiculous way for my order
to fill. So, it's like tick tick tick
tick tick tick tick. And I just watch
the shares slowly over the course of 4
seconds accumulate to 10,000 shares. And
then it broke through eight, which is
what I was expecting it would do. It
squeezed up to nine. I took the profit
off the table. And I was like, "Okay,
that was good." But that was also kind
of weird. Why was that? Why did it take
that long? Is it because I had a 10,000
share position? I don't know. But I
ended up locking up 88 cents a share on
it. $8,85.78,
which was solid. And I should have
called it a day right then and there,
but I went back for it. I went back in
on the next pullback right here. Oops.
Sorry. We'll close that out. I'll open
it up again. So, I get back in on the
next pullback. I'll show it to you on
this chart here. Let me just move this
over. So,
the place where I got in was um we have
this curl back up to nine right here.
Then it dips down and I got in right
here for the breakthrough 950. And the
same thing happened again. I get back in
and my orders tick tick tick tick tick.
I slowly get in. So, I'm in with this
time 9,000 shares. It goes up to a high
of 10 and I was looking for it to break
10 and squeeze up towards 1050 or 11 the
way we' had this big candle here. I was
looking for that nice big extension
higher and we did not get that. Um, so
that was a little bit discouraging. Let
me put this back on full screen
slideshow.
So I'm back in here at like 950. It goes
up to 10 and it drops back down. And you
can see here in this pullback I was
holding because I thought, well, I'm
still in the green. And then right here,
it drops to 940 and I'm red. And I was
like, well, let me hold this for a
second and see if it pops right back
above, you know, 950. And then it drops
down here to 918. And I was like, h gosh
darn it. I'm holding through a pullback.
And then I finally cut it right here. I
pressed the sell button at $9 a share.
So when it broke nine, I pressed the
sell button. And I'll admit, I held that
way too long. I should have could have
gotten outbreak even, but I just got
stubborn on it. But by the time my order
filled, tick, tick, tick, tick, tick,
tick, tick, I was filling at $863,
but all the way on the way down. So, I
ended up giving back about $6,000 of
profit. Now, part of that was absolutely
my own fault. I held too long. Uh, but I
don't know why today my orders um were
slow in executing. Now, you could say,
"Oh, it's because you're on your
Starling." No, that's that. No, that's
not it. The Starlink would create a
slowness between me sending the order to
the market and the market receiving it.
The latency there, that could happen,
but it wouldn't create a 4se secondond
slow execution cuz once the order's been
sent to the market, then it's the it's
the broker that does the executing. So
then that should just be instantaneous
as it normally would be. That's not
limited by my connection. So, this
execution on the buy side was slow. The
execution on the sell side was slow. I
got back in and then because it was slow
getting back in, I was a little I didn't
want to cut it unless I was sure it
wasn't going to work. But then by the
time I was sure it wasn't going to work,
I think probably everyone else was too,
including shorts, and we got this big
sell-off. So, I'm a little discouraged
to have had a nearly $9,000 green day
and be sitting here today with only
$2,500 of total profit. On the other
hand, $2,500 is still a solid day. And I
don't what I don't want to do is go
chasing, you know, and continue to trade
and end up turning this into a red day.
I want to be grateful for the $2500.
It's not as much as I wanted, but I'm
still grateful for it. I'm going to keep
that profit and I come back at it
tomorrow. So now I've got $85,000 in the
account, $15,000 away from the goal. And
as you can see today, even just the fact
that I was up $9,000, you know, for a
moment there,
I I really could easily cross over
$100,000
with one or two more good good days,
good trades. It could happen tomorrow.
You know, it could happen very soon. Uh,
previously in 2017 I turned a account
with $583
into 100 grand and I did it in 44 days.
So it took 44 days to do that. This time
I took $2,000 and I'm turning it into
100 grand. Uh, but I'm not using
leverage. During the last challenge I
used leverage which allowed me to grow
the account faster. So slightly
different challenges, certainly
different markets. Uh but sort of
similar timeline here coming in, you
know, right around 40. Tomorrow will be
day 40. So, you know, I I don't know. I
mean, it would be who knows, maybe it'll
be another 44 day um you know, a
challenge. Um which is I I guess it's
very possible. Four more days, you know,
$3,000 $4,000 a day. I mean, that that
might be it. On the other hand, I might
have a $15,000 day tomorrow and boom,
challenge is done at day 40. So, I I
don't know. But that doesn't really
matter. That's sort of aside from the
fact that I did give back too much
profit today. I'm a little discouraged
that I did that and my order execution
was a little um slower. Uh and I think
part of that is because I'm trading with
larger share size as I'm getting further
into the challenge. And something that
we've discussed is that um you know
generally the way I think about it is
that um commissionfree brokers um you
know like Schwab and um uh and Weeble
are excellent at um you know when you
start with a small account and for the
first you know for the first period of
time as you're growing it because you
don't have to pay any commissions. But
then at a certain point, what I found is
that you actually start to get
diminishing returns uh with these uh
commission free brokers when you try to
take too much share size. And that's
where the direct access brokers kind of
pick up. The direct access broker with
small share size, you're going to lose
money. But once you start trading with
bigger share size, you know, you can
I've at least been able to scale my
profits quite a bit faster. So that's
something uh to keep in mind and we'll
continue to discuss as I um continue
growing this account. With that, I'll
remind you guys as always um that if you
want to check out twoeek trial, there's
a link pinned at the top of the comments
where you can watch over my shoulder for
the rest of this challenge or for two
weeks. Um either way. And uh as always,
my results are not typical and there's
no guarantee you'll find success whether
you trade with me or you learn on your
own. So, please manage your risk and
always practice in a simulator before
putting real money on the line. With
that, I'll see you guys back at it first
thing tomorrow morning at 7