We Just Had A Stock Go Up 950% in 2hrs

What's up, everyone? Welcome to day three of my brand new small account challenge of trading in a $2,000 account using Charles Schwab as my broker. If you've been tuning in for this entire series, you already know that on day one, we had a stock that squeezed up over 5,000% in one day on AI news. Very interesting. On day two, we had a stock that squeezed up 2,000% and today we had a stock that squeezed up over 950% on the day. Interestingly, as the total gains that we're seeing are getting a little smaller, my profits are getting bigger. And that's because I can trade with the profit that I've already made from day one and day two. My account has already grown. So, today I was able to take the biggest position that I've taken on the first three days of this challenge and as a result, today is the biggest green day so far. We've got a lot to cover, so let's go ahead and jump on into the screen share. We've got a slide deck and I'm going to break down my trades from today. For those of you guys who are new, reminder as always, all of the profits from the small account challenge are getting donated to charity. You guys can help me increase that donation. Every time you hit the thumbs up, I'm adding an extra dollar to the amount that I'm donating. So, as of right now, we are over $300,000 in total money raised for charity, but I've already written checks for $319,000. So, I'm a little bit ahead of you guys. So, I hope you're able to hit the thumbs up on this episode and if you want to subscribe to channel, that would be cool, too. All right. So, today, day three, yesterday we had this stock PAVS that went up 2,000% in contrast to the momentum on day one when we had a stock that went up 5,000% it held fairly well going into the end of the day. PAVS on the other hand, this stock squeezed up, as we can see, but it was not able to hold up. And that leads me to be a little bit concerned coming into this morning. I'm thinking, yes, we had volatility, but will these moves hold? And I really wasn't sure. So this stock yesterday went from $0.69 a share all the way up to a high of over $25 a share before, as you could see, coming all the way back down. It gave back the entire move. And we don't really like to see that. That's not a good sign. The problem here is that on the one hand the market is really hot, so short sellers are being pretty cautious about getting in the way in in getting kind of in front of one of these moving trains. But on the other hand, because we're seeing such extreme moves, once the price starts coming down, the buyers don't want to touch it. They're like, this thing went up 2,000%. I'm not possibly going to buy a dip on it. The dip is, you know, still up 1,700%. So people aren't buying dips. So what happens is suddenly we're seeing a big swing in momentum, where we go from surging up to coming back down. In fact, this is a market where even short sellers are jumping to the long side to ride the front of this momentum, and even long traders are flipping to the short side to trade the way back down, because the moves are just that large. There's a lot of opportunity on both sides. So because of this move yesterday, I was expecting volatility today, and I was expecting the market would be hot, but I knew that I had to be careful that I not get caught on the back side as it starts to unwind and come back down. So that's kind of the big picture context coming into today. This morning, day three, we already had a leading gainer that was up over 300% on the day, VSME. It's a Chinese stock. You can see the country code right here, and it had no news. So that's always a little bit suspicious, but this is not uncommon in a really frothy hot market that we start seeing stocks that are moving up with no news. So this had already sort of set the precedent today of Chinese stocks with no news are getting a lot of attention. In this current market that we've been in, unfortunately, there's been a lot of traders that Well, I don't want to say unfortunately, but the reality is there's been a lot of traders that are very speculative. And when a stock starts moving with no news, people are speculating on who knows something. They think somebody knows something. Now, most of the case, nobody knows anything. And the stocks are going up on no news, and there is no secret news that somebody is, you know, leaking. So, people think there might be something, but there's really nothing. But if you think there's something and you act as if there's something, then the stock starts going up. And so, it creates this interesting paradox in the market, which eventually will self-correct and we'll stop seeing those moves, but currently we are seeing them. So, this was the leading gainer. Okay, so we've got VSME squeezing up, and I broke the ice and I traded it in my main account this morning. I'll do a recap later for my main account. But I didn't trade it in the small account because I felt like I kind of missed the beginning of the move, and I just I couldn't really manage my risk. So, then at 7:42, the scanner fires off this alert on DSY. Now, the scanner is searching the market in real time for stocks that meet my five pillars of stock selection, stocks that share the common characteristics of the type of stocks I tend to make the most money on. So, this stock here, DSY, hits the scanner. It's got light volume at the time that it hits the scanner, but that's okay because I want to see things that are moving early on. So, if I like it, I have time to think about my risk and my reward. I have time to research what the news is or what the lack of news is, check the daily chart, do some technical analysis, and so on and so forth. So, DSY is popping up. I recognize that it's Chinese and that it has no news. And so, I immediately think, well, it's on theme. In fact, we had a US company today that was a biotech stock with news and I was like, nope, that's not going to work because it's a US company with actual news. And today, in this market, that's not what traders are interested in. Again, that feels backwards, but that's the reality of the market that we're in right now. And so, you have to be able to adapt to it. So, DSY starts squeezing up. It does a little pullback here and it pushes higher. No trades. Pulls back again, pushes higher, pulls back again, pushes higher, goes all the way up to 325. And now volume starts to really increase on it. And as it hits $3, all of a sudden, this thing is up, you know, 50, 60, 70% on the day. So, now people are starting to pay attention to it. And it was actually good timing because VSME was rolling over. So, attention was leaving VSME, the leading gainer, and then this was sort of the stock that came right in its place. So, my entry, naturally, is on a micro pullback. And so, now we're looking at a 10-second timeframe, a very fast chart, which you guys do get access to when you're using this same software that I'm using over at Warrior Trading Day Trade Dash. Um but nonetheless, we have this um this big move here and we get this micro pullback right here and that was my first trade, right there. We get a squeeze up to 460, a little pullback, a pop up to five, a big pullback, a retest of five, another big pullback, pop up to six, another pullback, and then move up to 640. In fact, the stock has gone up to over $19 a share. So, this thing and I don't know, you know, by the time you guys are watching this, it may be higher, may be lower, I don't know. But, it's continued to move higher uh even uh after I I took my trades on it, which is good to see. So, here was my entry, right here. So, I got in at about 307 and 311. And you can see how the fills are like kind of these small little pieces of shares. You'll send an order for a thousand shares and then often uh Schwab will sort of fill it in little bits and increments. I don't know exactly why, but that's very common. And so, I'm in down here right on this pullback at about 310 average, 311. It ends up squeezing up and we get this nice resolution. For those of you guys that didn't watch my first episode in this series where I walk you through this pattern, this first pullback pattern is tried and true. This is one of my favorite patterns to trade. We have something that starts to squeeze up quickly on breaking news. I say something cuz it doesn't have to be a stock. You could apply it to different markets. But, in my case, we have a stock that squeezes up usually on news, but not always. It pulls back and this first pullback is its chance to prove itself. It'll either reject and just keep going lower, in which case there's no trade, or it'll hold up and if it crosses this level right here, that crossing candle, the first candle to make a new high is the entry and we look for that continuation back to the high of day. And that's exactly what we ended up getting. In fact, between 7:40 and the 9:30 opening bell, this had already gone from up you know, 15-20% on the day up to a peak of about 700% as it hit 11:50 right there. As of right now, it is our leading gainer. It's currently up about 685% and you can see that we hit a high after pulling back at the open of all the way up to just under $20 a share. It dropped down, it bounced back up, it pulled back, bounced up, sort of consolidated here and this is where we sit right now. Whether or not it has more room in it, I don't know. But, I'm going to answer an interesting question that some of you guys may notice on this chart. What are all these lines? We've got blue line, blue line, we've got this box right here. So, I noticed resistance right here at about 965-975. It drops down, comes back up again, rejects, comes back up again and rejects. So, why did it keep running into resistance around this area? And it's because this was the position of the 200 moving average on our daily chart. And so that forms a very strong level of resistance that traders have come to respect. And so it struggled in that area until it was finally able to break through that area shortly after the opening bell. And when it did break through that area, it was sort of interesting because we initially had this ascending resistance line as you could see right here. So I'll just make this a different color so you could see it uh more clearly. So this um this resistance line right here I drew connecting this line and this line, the top of these candles. And so I just drew it because uh when we started to squeeze up uh in the morning a little bit later, I was wondering where will we see resistance? And naturally I was thinking about sort of this $10, $11 area, but then above that, how much room do we have? And I said, I think we're going to have a problem here. And look at this, it ends up coming up right to about that level. Then it dips down, micro pullback, and then it broke through that level, and it was on pretty strong volume. And we had a positive MACD. And you know, at this point, it was just too expensive to trade in the small account, so I didn't. Uh which is fine. Uh you're you're not going to catch them all. So DSY has now become the leading gainer in the market. And it became the leading gain gainer very quickly, which gave it uh more momentum because more traders were coming in to buy those dips. It was also on Ross's five pillar scanner for the type of stocks that would typically make the most money on. So it was RETO. I didn't end up trading that one. The volume was a little bit too light, and it didn't um pick up much momentum. So total profit today, as of day three, $1,014.69, which means the small account has now grown to a total of $4,247.37. I'm up 112% in three trades. Just three trades. Even though I'm not restricted by the pattern day trader rule, I'm focusing on quality over quantity. Just looking for one really good trade each day. And although there may be some days, especially now that the account's getting a little bit bigger, that I'll start trading a bit more actively. Right now, I think it makes sense just to focus on high-quality setups. So, for those of you guys that haven't already checked out the 2-week trial here at Warrior Trading, we'd love to have you watch over my shoulder as I'm trading the markets. Yes, the small account challenge is going on right now, but in the future, those of you guys who continue to be members and are active in the community, you'll see me trading very actively in my main account. Uh and I will do a recap later today going over those trades. Today was a great day. We had some great momentum. This week we've got just so much going on in the market. We've got a big IPO coming. Everyone's excited about it. It's super hyped up. So, it's going to be a pretty exciting week here. And I hope you guys check out the 2-week trial. All right. Reminder, again, all the profit from this challenge is getting donated to charity. And when you guys hit the thumbs up, you're adding an extra dollar. So, I hope you hit the thumbs up. I hope you enjoyed this episode. And make sure you go back and check out the first episode in this series that walks you through my strategy. And stay tuned for day four coming tomorrow. Reminder, as always, trading is risky. My results aren't typical, and there's no guarantee you'll find success whether you trade with me or you learn on your own. So, your best bet is to manage your risk by practicing in a simulator before you ever put real money on the line. With that, I will see you guys bright and early streaming at 7:00 a.m. for members at Warrior Trading.