Biotech Stock Squeezes Up 300% On Breaking News (Biotech Sector ETF is +37% Year-to-Date)

What's up, everyone? Welcome to day 42
of my small account challenge of growing
a $2,000 account using Charles Schwab as
my broker. Day three of trading inside
my mobile command center, a Sprinter
Mercedes Sprinter van with satellite
Starlink on the roof, solar panels on
the roof, and the battery bank right
under this bench here, so I can trade
from pretty much anywhere that I can
drive to and have a clear view of the
sky.
Today was a challenging day. It was the
inverse of the last two days. In the
last two days, I was green in my small
account, but I was red in my big
account. And in a large part, it was
because
I was prioritizing my small account, and
I got a couple really nice trades in it
at the very beginning of a move, but
because it's a small account, it didn't
really make all that much money. The big
account, I ended up stepping in and
beginning to trade once the stock was
already quite extended, and sort of the
easiest, cleanest patterns were already
over, and so then I ended up going red
in the big account, and I was kind of
frustrated with that. And as I sat
coming into this morning, I was red on
the week across the board. I mean, I the
profits in the small account were not
enough to make up for the losses in my
big account. So, I said, "You know what?
Today, I'm going to put the big account
for you know, first. I'm going to focus
on that one." And so, I ended up having
my first trade of the day
where I went red in the big account.
I didn't trade in the small account that
same stock. It just didn't work, and I
didn't trade it in the small account.
And then the next stock that pops up was
a biotech stock. It starts squeezing. I
jump on it, and the thing ends up going
up over 300%
on this breaking news headline, and I
crushed it. It was an awesome trade, but
I didn't get any of that move in the
small account. By the time I pulled up
the small account, I was doing the same
thing I did yesterday, which was trading
what ended up being the backside of the
move, and the small account went red. I
had a couple of losses back-to-back,
which was really annoying. And I felt
like I mean I was kind of laughing like
this is the exact opposite of what
happened yesterday.
However, it was a little more easy to
easier at least to tolerate because at
least the big account was up so much.
You know, when the small accounts up and
my big accounts down it's still kind of
discouraging cuz I'm still net red on
the day trading in the big account with
the losses and gains being larger. So
you know this just speaks to the
challenge of trading
you know with these two accounts at the
same time, but even in spite of these
challenges August has been a pretty good
month, but we're coming to the end of it
here. So as a reminder all the profits
from these small account challenges are
getting donated to charity. Today we
crossed over half a million dollars of
money raised for charity. And we've
donated $495,000
and we did make a wish in the Virgin
Islands US Virgin Islands today. Didn't
see a dedicated children's hospital
there, but
donated to the Make-A-Wish Foundation
and so that now means we've donated to
every children 50 children's hospitals
across the United States plus Washington
DC,
Puerto Rico, Guam, and the US Virgin
Islands. This is awesome. Thank you guys
for helping make this possible. Every
time you've hit the thumbs up on the
episodes in this series, I've added an
extra dollar to how much we donate. So
thank you guys
for hitting those thumbs up. All right,
so day 42 our top gainer scanner this
morning was not looking so great. We had
as you could see here cheaper stocks
leading the way with a lot of volume but
slightly higher floats and I just I saw
this at 6:30 and I thought man, I mean I
I was feeling discouraged even though I
was green in the small account
whatever Monday, Tuesday, Wednesday this
week because I'm was red in the big
account and I dug myself a bit of a
hole. I felt like I've got a drawdown
and I don't I'm not going to be able to
recover it on any of these. I don't even
know if I should even bother today.
Um but that's not the attitude that you
want. So, of course, I came over and
you know, got in the van here and got my
charts up and running and powered up
that Starlink. And um the the first
stock, well, so I'm going to go over the
small account challenge for Well, I'll
do I'll do the big account for just a
second. So, my first trade in the big
account uh was actually on a Japanese
ticker LGPS.
And on LGPS,
this stock comes out with news of an
acquisition right here. Um I you know, I
wasn't really sure it was going to work,
but what I liked about it was that it
popped up and was suddenly holding over
a dollar a share. And this is a very
similar pattern we've had in the last
couple weeks where we get this sort of
rising um
uh
um momentum, increasing volume, and then
suddenly we break away and boom, we get
a huge candle on Socket. It went from $2
to about $4 or $5 a share. On uh that
other one, I can't remember the ticker
now, it went from about $2 to $18 a
share. So, I jumped in it right here
about $1.42 for the break of $1.50. And
we were saying, "If this breaks 6575,
I'm adding for the squeeze through,
too." It didn't. It dropped. Ended up
going red in my big account and I lost
$2,500.
So, that was my first trade of the day
and did not trade that in the small
account, uh which was fine. And then we
had PPCB.
This was now at 8:30. So, I waited it,
you know, about an hour. PPCB pops up on
the scan. Initially has light volume,
low relative volume, but is quickly
increasing in volume as it's moving
higher. It has a catalyst right here. Um
and so, I do my five pillars of stock
selection. The stock meets five out of
the five. It's already up over 100%.
Eight times relative volume. Yes, it's
got news. The price is fine. Float is
under 20 million shares. And this was
this rapid squeeze here from $1 all the
way up to 350, 360. It pulls back, pops,
pulls back, then it breaks 340, goes up
to 440, dips down, comes back up, and
ends up kind of going sideways. So,
here's the deal. Ended up making $47,000
total on the day with nearly $50,000 of
profit in my main account PPCB taking a
higher risk entries right here as it was
breaking away. Adding right over two
into 250 into three and getting profit
into the squeeze. And then right through
here getting back in and getting out
into this breakout right here. And I
think I I had did have a trade there and
it didn't work. Gave back a little
profit, but that was okay. So, in total
I did really well in my main account.
But in the small account, I ended up
trading what ended up being more of the
backside here and here. And so in the
small account, I actually ended up
losing on this stock. Let's see, what's
my total P&L? I'll show to you right
here. $323.09.
So, I'm down 300 bucks. All right, it's
not the end of the world, you know.
But it's a little discouraging. And then
we get another scanner alert here, YMT.
It goes from 440 to $5. And what was
interesting was the moment that hit the
scanner,
it it was like almost the exact moment
um PPCB started dropping. And sometimes
when that happens, what we see is
attention shifts. So, PPCB drops right
there and YMT pops up. And so as it YMT
pops up, it ends up going up to 450, it
does a micro pullback, and I got in
there with 2,000 shares. It ends up
going up to a high of $5. I'm in, I'm
out, I get in, I get out one more time,
and I lock up $739.38.
Now, if I had had the day completely
inverted where my first trades were all
in the small account, I crushed PPC B in
the small account and let's say I made
like $10,000 on it. And then I, you
know,
got a um
And I I okay, and I had a small loss on
that Japanese stock, but whatever, I'm
still up like 9,000 on the day. Then I'm
like, all right, I need to make a, you
know, some profit in my big account. So
then I'm trading PPC B on the backside.
And in my big account, I'm probably down
like five or six thousand dollars on it,
you know, doesn't work. And then I jump
into YMT, but I trade it with bigger
size, and that one popped up for a
second and then flushed back down. It
was easy to get in and out with 2,000
shares, but doing that with 20,000
shares, I probably would have been at
another loss. And today probably would
have been in another, you know, 10,
15,000 dollar red day in the big
account.
So, this definitely speaks to the
challenge of, you know, kind of trying
to like pick and choose your trades. Oh,
I'm going to take this one here, this
one there. In fact, um
uh
I I was uh playing a game of Monopoly um
on this camping trip, and I was pretty
discouraged um
you know, that I lost quite badly.
And my strategy was
to wait and save my money to buy the
highest end properties, but I kept not
landing on them. So I kept not buying
anything. And then eventually, all the
properties got bought by other players
in the game, and now I'm just paying
rent to everybody, and I I sort of
realized, you know, gosh darn it,
I just I I I can't recover from this.
And no one wants to trade anything with
me, and so I end up losing all my money
and I go bankrupt. Right? So,
picking and choosing is really tough.
Um You think you're going to wait and
wait and wait and just take, you know,
and you're too patient and then you miss
the whole move. And so it is important
to kind of break the ice on some of
these, start to build a cushion or break
the ice and if you lose, then you just
you get out and cut the loss quickly.
And all of that is a lot easier to do a
small share size, which is why the small
account is in pretty good shape even
though I was only trading the back side
of the moves, whereas my main account,
when I only trade the back side of the
moves but with bigger share size, I
really don't do well at all. So,
you know, kind of interesting um
you know, observations there. But in any
case, wrapping up day 42, only about
$400 you know,
$79 to go before I cross over $100,000.
And I just need to cross it and hold
over it. So, that'll be the goal for day
43. Thank you guys as always for tuning
in. If you want to check out two-week
trial, the link is pinned at the top of
the comments and in the description. But
I'll remind you as always that trading
is risky, my results are not typical,
and there's no guarantee you'll find
success whether you trade on your own or
you learn from me. So, please manage
your risk, take it slow, and always
practice in a simulator before putting
real money on the line. With that, I'll
see you guys back at it bright and early
tomorrow for day 43.