Chinese Stock Up 200% and Healthcare Stock Up 167% in 3hrs

What's up everyone? It's Tuesday morning
and we've got a penny stock squeezing up
as we speak, up over 200% and continuing
to move higher. This is a Chinese stock
that came out with news. So, it's not a
no news Chinese stock. It does have a
headline and it promptly began
squeezing. By the opening bell, over 120
million shares of volume have traded.
Wow, that is a ton of volume. Which
means with that amount of liquidity, it
would have been easy to buy 100, 200,
300,000 share positions. And the problem
with that is with a 100,000 share
position, every penny is a,000 bucks.
Which means if you're at a
commission-free broker, there's no doubt
that people are buying and selling
100,000 shares just to make one penny of
profit. And that means as soon as it
pops up a penny, there's someone willing
to sell. And the result is the stock has
become very thickly traded. But there's
another problem with it. If we jump onto
the whiteboard, the problem is that
yesterday the stock closed below 75
cents a share. Which means during
regular hours, the halt bands are every
15.
Now, stocks that closed the prior day
between 75 and $3 a share have halt
bands that are 20%.
Stocks above $3 a share, halt band is
10%. So let's do an example. So let's
say we have a stock that's $2 a share.
It's up over 100%. Yesterday closed
below 75 cents a share. What's the halt
band up? Is 215. If it goes to 215 in
less than 5 minutes, it will halt up.
What about a stock that's also $2 a
share, but yesterday was closed above 75
cents a share. Okay, halt bands 20%.
That means it's going to go up to $2.40
before it halts. Or you have a stock
that yesterday was $3 dropped back down
is at $2 and the halt band is 220 10%.
This is a very funny system because it's
based on the prior day close. So you
could have three stocks that are the
exact same price but have different halt
bands. Now, the good news, if you're
trading using the Warrior Trading
Simulator or if you're using some of the
more sophisticated
brokers, you can actually see the halt
bands. So, let's pull up a stock, GRML,
for instance. Oh, this one's halted.
Just luck of the draw. We'll pull up
Decoy. So, Decoy, let's see. Oops. Let's
pull this up. So, Decoy right now has a
halt band. Let's just pull this down a
little bit at $649.
So that's the halt band 649 up and 443
down. So if we look at uh Decoy and
that's the stock that I made the most
money on. You could see it's rallying up
as we speak up 130%. This is a US
company. It's a biotech stock. Um
putting in a nice move here at the open.
The prior day close as you can see was
between 75 cents and $3 a share which
means the halt bands are 20%. But that's
20% above the average price over the
last 5 minutes because the price is
obviously fluctuating. That means the
halt bands also fluctuate. Now the halt
band has moved up to 664. But I can see
where it's going to halt. Now you have
access to that same data in the Warrior
Trading Sim for those of you guys who
are using it. So we're going to break
down my trades from today. I'm going to
walk you through the watch list that I
was looking at essentially as I was
sitting down this morning. Here's Decoy
on uh the simulator and you can see the
halt levels uh right down there. You
just have to adjust your charts a little
bit. So I'll cancel that out. So now
it's gone up to 674 in the Warrior
Trading Sim. Okay. So this morning when
I first sat down, we had um we had some
lower price stocks were moving up and we
also still had GRML, the Greenland
mining stock from yesterday. This stock
is on now day three of continuation. The
move began on Friday after hours,
continued into Monday, and has continued
into Tuesday. So, generally speaking,
what I find is that the volume declines
as the days go on. So, if we look at the
volume profile on this stock, this was
from the after hours move on Friday,
which was light volume, but that's not
surprising because it's after hours on a
Friday. Volume really increased
yesterday and then decreased as the day
went on. And look at today. Today, the
volume is significantly lower. And yet
the price is going higher. So we have a
divergence. Volume declining price
increasing. Going from $13 a share to
nearly $16 is impressive. We love to see
that. But we also have to recognize that
this at this price range has bigger
spreads and less liquidity than it had
before. Which means if you were able to
jump in and out of this with 20,000
shares yesterday with very little
slippage, you wouldn't be able to do the
same thing today. In fact, if you tried
to trade, you know, 40, 50,000 shares,
you'd probably get a lot of slippage on
the stock. A dollar a share potentially
of slippage depending on, you know, how
much the market makers wanted to abuse
your order if it was a marketable order.
Now, this is approaching the daily 200
moving average. As you can see up there,
if we type in GRML, we're showing a 587
resumption. So, it halted at 587 and
right now is showing a resumption quote
of exactly the same price. Often times
when you halt up, we expect the stock to
gap higher and continue. So when it
shows the exact same resumption price,
what that tells us is there's actually a
seller at 5.87 right now. There's not
enough buyers that are able to move the
price up even a penny higher. And so
that can be a warning sign of a
potential reversal on the resumption and
then the risk of even a swing to the
downside and a halt down which would be
very discouraging. But I think we have
to acknowledge that GRML has gone from
$2 a share all the way up here now up
nearly 500% but in three days. So it's
continuation over the course of several
days having something like LHSW
which peaked um this morning. This is
actually pulling back a little bit here.
This one went from a low um down there
all the way up about 260%
as it peaked at $158.
That put in a decent move. So, I saw um
so the first stock I was looking at this
morning was GRML. Was aware of it, but
thought day three a continuation
probably going to be too risky. You can
see the resumption there and see how
it's dropping back down. Halt down
levels at 418. Halt up is now 1733. Oh,
and now we're down to the halt halt down
level which is at 418. So, you can see
that volatility, but that was a warning
sign. Now, if you appreciate those kind
of observations, what I just did is I
took 25 years of intuition that I built
up in my years in the market and I was
able to convert what I was seeing there
as a sign into layman's terms that you
could understand. As a beginner, it's
very hard to pick up on those subtle
cues, which means the more time you have
in the market, the more edge and
advantage you will have as a trader. I
like to share that with you as members
of warrior trading. Now, right now I
have John, my first student who ever
made a million dollars, earned him his
million-dollar badge. He's currently
streaming and providing market
commentary and because he trades the
same strategy as me. There's no doubt
that he already communicated what I just
shared with you, which was the risk of
the halt down because of the flat
resumption. So, make sure you guys check
out the twoeek trial if you want to see
what it's like to be part of our
community. And during that trial, you
not only get to listen to the broadcast
that I put out, John puts out our mentor
sessions, you also get to use the same
software that I'm using every single
day. All right. So, with that, uh, GRML,
I said, "Nah, I'm interested in it, but
I just don't know if I could trust it."
So, then the next stock that pops up on
the scanners this morning, if we scroll
back here, was NCT.
NCT was very interesting because it
moved up very quickly. As you could see
here, it went from $6 to 14 and then
back down to six. It's a Hong Kong
company. Fits the profile of a Chinese
stock popping up. It's got a recent
reverse split. And when this first
popped up, I thought it's obviously very
risky. U but it is interesting
nonetheless. It popped up, it pulled
back. Micro pullback, it pushes higher.
No trade. Micro pullback. I jumped in
right there at $1193 and it pops up to a
high of $14.50
a share. I was up two points, but I
didn't sell and it flushes back down
right here. I ended up selling for a
loss. Then it dips down right here and I
bought off support down here for a curl
back up. I sold and got out right here
and I'm finishing up $700 on NCT. So, a
little bit of a a loss and then a
recovery at the open. 50% accuracy on
NCT. Two trades. Average winners are
just a teeny bit bigger than the average
losers. And so, I'm green on the stock.
So, that was the first trade and that
the first two trades and those were done
by 731.
Then, moments later, what hits the
scanner? Decoy. We see it hit the
scanner right here at $7.32.
It's got 20 times relative volume, light
total volume. I click on it. I see it's
a US biotech company. I'm thinking,
okay, interesting. It's got a headline
including non-dilutive funding. That
means they found a way a way to raise
money without diluting shareholder
value, and that's a good thing. I look
at the daily chart. No recent big red
candles. Now, we've got room up to the
200 moving average. I like that. The
float's pretty low. I like that as well.
And so, I pull up the chart. I'm looking
for an entry. And let's get it back
zoomed in to the very beginning of the
move right here. You can see how this
immediately squeezed all the way up to a
high of 490. squeezes up, dips down. I
buy the dip, get the pop. We do another
dip. I get another pop right here,
locking up some profit. Smaller trades
because the volume was a little bit
lighter. Then it pulls back here and is
below VWAP. So now I'm not sure if we're
going to get really any more action. It
comes all the way back down to here. But
what I observed on the one minute chart
was the beginning of a head and
shoulders formation. The head and then
the shoulder coming back up. I did not
take that trade. I just wasn't sure it
would work because it pulled back so
much. Drew this ascending support line
as you could see right here. It shows
support right on this area. Comes up to
518, pulls back. I take a trade right
through here. It's going to be in a
minute. Right up here. It doesn't quite
work right. It comes up, it rejects, it
drops back down, tries again, fails.
This ascending support line, it broke
and becomes resistance. Resistance here.
And now it would still be resistance,
but the price is far below it. As we
curled up closer to the open, I just
didn't trust taking any more trades on
it. So, my last trades were actually in
this area here, hoping that we would
pull away, but we just weren't able to.
It got pretty thickly traded, which was
unfortunate. Nonetheless, I was able to
lock up just under $10,000 of profit on
decoy, trading with relatively small
position sizes, breaking the ice,
getting in, getting green, getting out.
As you can see right now, you're getting
a little bit of a jack knife. the pop,
the drop, the recovery, then does it go?
Maybe. Does it flush back down? This is
very difficult to trade in here. In
fact, we saw a lot of big sellers on
decoy, which were definitely making me a
little bit nervous. But the volume
profile is solid. More more buying
volume than selling volume. And so, at a
certain point, will shorts give up? They
seem to be pretty powerful right now as
every time it pops, you get a topping
tail and the drop back down. So, I gave
up on decoy. I said enough's enough. And
then I switched over to LHSW.
This put in uh a couple of really nice
patterns right here. Nice pullback, nice
pullback. I missed the first one. I
traded the second one and that gave me
$2,94.84.
So, finishing the day at $13,542.73,
I'd say, is pretty good. I'm leaving
with money in my pocket. Now, I may be
leaving a little money on the table by
not taking any trades on decoy at the
open or leaving GRML alone. I think
GRML, realistically, I would have lost
money on that if I traded at the open.
Decoy, you know, it's hard to say.
Hindsight's 2020. You always look at
them and say, I would have crushed it.
And I'm telling you, I've traded moves
like this and managed to be a loser. So,
I'm going to be grateful to walk away
with a little more profit in my account
than I had 3 hours ago at the beginning
of the day. This is consistency. Coming
in every day, getting green, and getting
out. And if I'm red, respecting my max
loss, and walking away before it becomes
a bigger red day than it needs to be. I
never want to lose more in one day than
I can make in a good day. So, right now,
this week, you know, green days are
averaging 10,000 yesterday, 13,000
today. We look at the gains from last
week, I was up 78,000. So, you know,
this pretty solid week last week, 15,000
a day. uh you know, so at this point, if
I'm averaging about 12 to $13,000 a day
for the last 7 days, I just want to make
sure I don't lose more than that on a
red day. I don't want to lose more than
I can make on the next good day. That's
that's kind of my my attitude because if
I lose 5,000, 10,000, I can make it back
in one day and it's water under the
bridge. I don't have to be stressed out
or frustrated about it. It doesn't
really matter. Now, if I lose, you know,
a million dollars, well, that's
different because that's far more than I
can make in one good day. So, now I have
to think, gosh, I just lost a million
bucks. It's going to take me,
you know, how many months of really
focused, slow and steady trading to make
that back. It could be done. I've had
big draw downs before and I've made it
back. It can be done, but it becomes a
mental battle and one I'd rather not
face if I can avoid it. So, staying
calm, cool, collected, stepping up to
the plate with bigger size when it is
worthy, when a stock is worthy of it.
LHSW, I took 60,000 shares. Liquidity
was great. Was able to jump in with
that, jump out, no problem. It's got
right now 163 million shares of volume.
Decoy was smaller size and NCT was
smaller size. Uh, and I think that that
was appropriate. So, with that, I want
to remind you guys to check out the twoe
trial. Link is pinned at the top of the
comments and in the description. And
I'll remind you as always that 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 will see you guys bright and
early streaming at 7 a.m.