This Is Crazy! We Just Had ANOTHER 2,000% Short Squeeze!

What's up everyone? Welcome to day two of my 
brand new small account challenge of trading   in a $2,000 account using Charles Schwab as 
my broker. Today is the second green day in a   row and now the account is up 61% since I began 
the challenge. This is phenomenal. My accuracy   100%. Well, I've only taken two trades. So, 
here's the interesting thing. As you know,   the pattern day trader rule, which was in effect 
from February 27th, 2001 until June 4th, 2026,   is gone. So, I can day trade as much as I want 
in this account. But my quality standard is very   high because it's a small account. I really can't 
afford to lose. Now, some of you guys might think,   Ross, doing a small account challenge should be 
no big deal for you. You've got so much money. If   you lose in it, you could always just reset the 
account and start over. I suppose that's fair.   And you're right. This is not really my back up 
against the wall the way it was when I was first   learning how to trade. But I'm pretty competitive. 
And so when I'm doing a challenge like this,   I hold myself to a high standard. I want to 
succeed. I want to grow this account. And so   even though you might argue that I could be a 
little sloppy with it, I'm not. I'm being very   precise. And so in total, I've taken two trades. 
Now, interestingly, today there were two setups   that I liked. And on the second one, I didn't get 
filled. My order got rejected. And you want to   know why? It's because I put in the wrong number 
of shares. And the rejection was I didn't have   sufficient buying power. I put in too many shares. 
I did the math wrong in my head real quick. So,   this was a shame. I'm disappointed that that 
happened. ended up missing a great opportunity   because I got in at the exact apex point and that 
stock ripped right after I tried to get in, but I   sat on the sidelines. However, it was the right 
move not to chase it and instead remind myself   that there'll always be another opportunity around 
the corner perhaps tomorrow on day three. So,   for those of you guys who have been watching from 
the sidelines, if you have not already checked   out a two-eek trial where you can watch over my 
shoulder as I'm doing this challenge, the link is   posted to at the top of the comments and in the 
description so you guys can start the twoe trial   today. All right, so make sure you guys check that 
out. Let's go ahead and jump on the screen share   because we've got a lot to cover. As you know, all 
of the profits from these small account challenges   gets donated to charity. And every time you guys 
hit the thumbs up, I add an extra dollar to how   much I'm donating. We have now raised over 
$297,000. Thank you guys so much. I donated   um in the last um week. We did donations to four 
hospitals that are serving people that live on the   Navajo reservation down in um the southwest of the 
United States. And I donated another $30,000 to   Dig deep and this was specifically for the Navajo 
project. And they're working on bridging the gap   to provide clean drinking water to everyone 
in the United States. In fact, there are still   millions of people in the United States that don't 
have access to clean drinking water. Now, we've   probably all heard of Flint, Michigan, and some of 
these other places, but on the Navajo reservation,   in fact, from 1952 up until, I think it was 2003 
or 2004, uranium mining uh ended up contaminating   a lot of the local groundwater. And so, people 
have been drinking this contaminated water and as   a result have higher rates of cancer. So making 
donations to the hospitals that serve people on   the reservation was great, but and I'm grateful 
that I was able to do that. But making a donation   to dig deep, who is providing access to clean 
drinking water is sort of rather than putting a   band-aid over the problem is actually getting to 
the root of why so many people are getting sick.   So as of right now, I've donated $319,000 as part 
of these small account challenges that we began.   Um, let's see. It was back in was it August of 
last year? September of last year. All right. So,   anyways, thank you guys for your um thumbs up and 
helping raise this money. This has been really   wonderful. Today is day two. And let's start 
with a little context. Big picture. Yesterday,   we had a stock that went up over 5,000%. I'm not 
kidding. 5,000%. Yeah, that's a pretty big move   from a dollar a share. $111 up to a high of $66 
and I'm sitting here right now and telling you I   did not take a single trade on it. Why? I didn't 
feel I could manage my risk. However, there were   other stocks that were moving on sympathy to this 
underlying move right here. And this brings me to   an interesting subject. Many of you guys know that 
I had the best week of my career when GameStop   squeezed up to over $500 a share in pre-market 
trading in at the end of January in 2001. And   although I made a lot of money on GameStop, 
GameStop was not the stock I made the most on. I   actually made more money on other stocks that were 
going up with high short interest on sympathy to   the move that GameStop GameStop was experiencing. 
And the reason was those other stocks were lower   priced, so I was able to afford more shares. And 
because they were lower priced, they got a better   ROI or total percentage return. A $2 stock going 
to eight is better than a TW. Well, I mean, it's   the same as a $20 stock going to 80, but usually 
$20 stocks go don't go to 80. A $20 stock goes up   to 25 or 30 maybe. So, you get a nice trade there. 
That's fine. But two to eight to 14 to 16, that's   where things get exciting. And so when we had that 
big move on GameStop, I did really well trading   sympathy momentum. And that's the same as what's 
going on right now with the SpaceX IPO is looking   for sympathy momentum. SpaceX is expensive. All 
these other stocks that are moving on sympathy are   more affordable. And the AI sector is also very 
strong. And of course, SpaceX is one of the big   segments of their business is AI. So naturally, 
any stock with an AI catalyst headline right   now is doing well. This one had an AI headline 
yesterday. Goes up over 5,000%. This morning,   we had a couple other stocks that made um quite 
large moves as well. Now, before I jump in here to   um the charts, let's just look for a moment at um 
a few of the stocks that made big moves today. So,   as of right now, we've got um CCTG. Now, this 
is very interesting. Look at this volatility.   Yesterday it was at less I don't know about 80 
cents a share goes up to a high of $6 is back   down at a $147. That's on the one minute chart. 
We don't need to look at the 10-second I don't   think. So this is CCTG MSW this one today. Look 
at this move from a $1.50 up to $5. Wow. Then   we have CHAI. This one earlier today. Back this 
up. Look at this move from about a dollar up to   $6 a share. We had AZI, which you'll see uh 
we're going to get into this one in a moment.   This one went from about a dollar a share down 
here all the way up to $13. And then yesterday,   uh we had was it NPT? No. Um uh was this it? 
Yeah, this was it was NPT yesterday. Uh yeah,   this was the one that I traded yesterday. And um 
this one unbelievable move from about a dollar a   share all the way up to $12. So, it's safe to 
say that right now in this market, we've been   seeing some pretty extreme moves. In fact, I mean, 
it's it's really been unbelievable. AMHA or ah   um what was what was it? I'll scroll back on 
the scanners. We'll look at it from earlier. So,   we had a couple of stocks today that made these 
just unbelievable moves. Backto back circuit   breaker halts. Um however, as you can see, a lot 
of these moves didn't end up holding super well.   Uh, MTEN was another stock today that made this 
big move. I mean, look at this. From $3 to $10,   then back down to three, then back up to eight, 
back down to A140. Give me some Dramamine because   I'm getting motion sickness. This is too much. 
Uh, call a chiropractor cuz I've got whiplash. Uh,   you come up with the next one. So, the issue 
here is yes, we like volatility, but gosh,   this is hard to manage risk on PAVS. Look 
at this one today. So, um, PAVS, uh, today,   this was insane. So, this is the one that went up 
2,000% today from a dollar a share up to $26 and   then it came back down. We've seen this type of 
price action before. This is indicative of a very   frothy market, a very hot market where there's 
a lot of exuberance. Traders are jumping in very   quickly. Shorts are scared. They don't want to 
get in front of a moving freight train like this.   But inevitably they don't go up forever and when 
they roll over no one wants to buy it as it starts   dropping and now shorts have the advantage. So, 
this is actually an interesting market because   shorts are kind of sitting on the sidelines and 
letting these things squeeze up and long traders   are doing really well on them and you just don't 
want to be the last one in or the last one to the   exit before it starts dropping because then once 
you get that first drop back down, that first red   candle, that's when short sellers are coming 
in right in here for the drop and then the the   selloff back down. So basically today we were in 
such a hot market from yesterday's frenzied move   uh with a 5,000% gain that I was expecting to 
see continued momentum. However, I will tell   you that it's not uncommon that the day after a 
big move I'll actually go red because, you know,   we're kind of thinking everything's going to keep 
going higher. You mismanage risk and you screw up.   And although I didn't go red today in my main 
account, um here's the P&L for my main account,   I did lose $27,000 on CCTG. Now, I finished the 
day up 42 grand, so I can't complain. And this,   thank God, was not the first trade I took. Um 
the first trade was um now I can't remember,   but I think it was D AIC. I was up 11,000. Then 
I lost 8,000. Then I made 23,000. Then I lost   uh no, then I made uh 15,000. I was up about 50 
grand before I took this loss. So in any case,   um it is what it is. But today it was very easy 
to get on the wrong side of the some of these   moves. And so for those of you guys who are 
new, I will share with you that as a beginner,   I found days like today to be some of the most 
difficult because you have stocks that have huge   ranges going from three to nine and back to 
three. I mean, it's insane when I felt like   I was just constantly chasing. And so, if you're 
feeling that way, you're not alone. Remember that   a year from now, you will have more experience and 
more intuition. you'll you'll be able to better   capitalize on this level of volatility than you 
are today. So, the best thing to do during this   environment as a real beginner is to reduce share 
size a little bit just to accommodate the fact   that you're likely going to see stocks that drop 
more than you expected, but also could pop up more   than you expected. So, it can it can work to your 
in your favor, but you've got to be careful. So,   AI, as you can see here, uh was the first stock 
I traded. It hit our scanner 388, 413, 518, 552,   and it's squeezing up. It's got 12 million 
shares of volume, a 4.5 million share float,   and relative volume of 1,500 times above average. 
And the volume in the last 5 minutes was 3 million   times higher than average. The stock at that 
point was up 388% on the day, which made it   our leading gainer. At this point here, it was up 
532%. the leading gainers typically perform well   because a lot of traders will notice them when 
you have a stock that's a little bit lower and   um you know some of these down here they don't 
often do as well because they just don't get as   much attention. So leading gainers typically 
are better. So it was the leading gainer and   um it was on my Ross' fivepillar scanner right 
here and it triggered this alert right down here   as it was continuing to move higher. So initially 
it squeezes up here. I don't trade it. It pops up   here to about $1.70 and then has this high volume 
red candle. That's a rejection. It drops back   down. Then it rallies way back up right here. 
Now, when it rallies up here, I still didn't   trade it. The stock is a little cheaper. I wasn't 
sure it was going to work. You had pretty high   volume buying, but at this point, we still had 
a bunch of other stocks that were moving, and it   was hard to tell what was obvious. So, it ends up 
selling off, coming back up, doing a double top,   which creates a cup form, a cup. This was a little 
handle. I didn't trade this. It pushes higher   right here, and then it rejects and comes back 
down. And at that point, I was like, "Yep, AI,   it's rejected. It's no good." I started switching 
and looking at other stocks. In fact, it goes   all the way down below this orange trend line, 
which is the volume weighted average price. And   this is where I think shorts um got I think shorts 
probably added on this rejection right here, added   more as it stairstepped down and felt confident 
as it was below VWAP for a selloff back down to   basically where it came from down here around 
$150. Well, what ended up happening next was it   squeezed back over VWAP and we got the creation of 
an inverted head and shoulders pattern. As you can   see right here, as it squeezed up here to a high 
of 330, it pulls back, gives a micro pullback. I   still don't take that trade because at that point 
I I wasn't really paying attention to it down   here if I'm going to be honest. And when it hit 
the scanner right here, I was like, "Okay, this   is interesting. It's starting to move, but let's 
see what it can do." So, it dips down. It rips up   here to $410. And so, I'm going to show you this 
is the setup that we've been talking about. Um,   in the first episode where I shared with you that 
I was resetting my account to $2,000, I showed you   this pullback. So, I let the stock squeeze up. I 
let it pull back. And then I'm looking for that   first crossing candle, the candle that crosses the 
high of the previous candle, candle over candle.   And that's what we look for. And we look for the 
resolution through the new high of day. And so as   this rallied up right here, I missed the first 
pullback. I wasn't watching it super closely.   By the way, this is a 10-second chart, but I show 
it to you because it's helpful to see how quickly   these stocks move and sort of the zoomed in 
patterns that were occurring. So micro pullback,   micro pullback. It goes up to 576. It dips down. 
It pops back up and this is the formation of an   ABCD setup. It looks like a W for winner. And 
so as that pattern was forming, it dipped back   down right here. As it dipped down to about $5 a 
share, I looked at that and I said, I think I need   to take a starter. I'm going to take my starter. 
Now, of course, in the small account, I'm all in   on my starter cuz I'm that's just it cuz it's a 
small account. So, I added right down here and   we got this squeeze right there. Squeezing up 
to seven. A little micro pullback right there   and then a push all the way up to $10 a share. 
Nearly $10 a share. This was really solid. So,   on the one minute chart, um this is what that 
micro pullback looked like right there. So you   had the pop up, three, four green candles in a 
row. A little pullback there. Check the volume   profile. So we've got a nice volume profile. Yes, 
higher volume on this candle, but nice volume on   this. MACD is open. So our indicators are giving 
us a positive signal. I'm a buyer right down here.   We get that resolution. This is my trade in at 
$4.98 on that dip. Buying as close to support   as possible. And I took my exit up at 682. So, 
I didn't sell. I didn't get as much profit as   it turned out I could have, but nonetheless, $816 
is phenomenal. So, now the account is up 61%. I'm   at $3,232.94 of equity in the account versus 
the $2,000 starting balance. Two trades in,   100% accuracy. Average winners now are about $616. 
the account is growing and I encourage you guys   to tune in to day three which will be coming 
tomorrow. So if you have not already checked   out the twoe trial again the link is posted in 
the top of the comments and in the description   so you can come on over do the twoe trial. During 
your trial you'll get access to the same software   that I'm using every single day while I'm trading. 
This is Day Trade Dash. These are the scanners,   the charts, the news feed, plus my live audio 
video broadcast with my market commentary where   you can see me trading in real time. So, you'll 
see the gains, you'll see the losses, the ups and   the downs, you'll see the small account, you'll 
also see the big account. So, make sure you guys   check it out. And reminder as always that trading 
is risky and my results are not typical. So,   take it slow. Your best bet is to practice in a 
simulator before you ever put real money on the   line. Now, if you haven't already checked out the 
full length episode where I introduce you to my   strategy, I'll put a link to it here and the link 
to day three will be right here. So, check those   out. Thank you guys as always for tuning in. Your 
thumbs up are going to a good cause. So, I hope   you hit the thumbs up. I hope you're subscribed 
to the channel and I'll see you for day three   tomorrow. I'll be streaming at 7 a.m. Eastern 
Standard Time. All right, I'll see you then.