We Just Had A Stock Go Up 5,000% Today!

What's up, everyone? All right. Well, today is day one of my brand new small account challenge of trading in a $2,000 account using Charles Schwab as my broker. And it couldn't have come on a better day. As of right now, we have a stock up 5,465% on 272 million shares of volume. Holy smokes. This is unbelievable. So, as you may have recalled, I said that I expected once the pattern day trader rule was removed that we would see volume come into the market. And boy, have we ever. So today being the first day that I was able to day trade without the restriction of the pattern day trader rule for the f the first time in more than 25 years since the rule was first implemented after the dotcom bubble on February 27, 2001. I was able to day trade as much as I'd like. Now, in spite of the ability to trade as much as I like, I focused on quality over quantity, following the rules of the strategy, as I already laid it out for you in the first episode in this series where I shared with you what the game plan would be for how I would trade with such a small account. Quality matters. You can't be just shooting at everything that moves. You got to be really focused on taking the best setups. Trade the best, leave the rest. So, let's go ahead and jump on the screen share because we have a lot to cover. So, there it is. INHD up over 5,000%. But, boy, this thing is volatile. It is moving quickly. In fact, this had a low today of let's pull on our uh pull up our drawing tool. Let's see. So, we had a low today of about a$19 and a high today of dare I say $66. Wow. 66. Well, that's pretty scary for a short seller, that's for sure. Uh I have no doubt that there are short sellers out there that lost millions of dollars today. This is an unexpected move. You didn't see it coming. Well, you you never really see them coming, but there was reason to believe that something like this could happen with the influx of volume that we knew was the result of the pattern day trader rule going away. All of a sudden, traders can trade far more than they ever could before. So, we're going to talk about this incredible move today. But let's take a look at the top gainer scanner. So, this is the scanner that I use every single day to help me understand the strength or weakness of the market. It's sorting the gainers in the market from the leading gainer being at the top. We have 1 2 3 4 five six stocks right now that are up over 100% in the market. At one point, we had eight stocks that were up over 100%. A few of them have dipped back down. When you've got eight stocks up over 100%, you've got some serious momentum. So, let's pull back on the slide deck, pull back on the charts for a second. We'll jump into the slide deck because, as I said, we've got a lot to cover. So, as you know, I reset my account back down to $2,000. And today was day one of that challenge. And I got to begin this episode with a little update on our fundraising goal. As you know, all of the profits from these small account challenges gets donated to charity. But I gave you guys the opportunity to help me double the amount that I donate because every time you hit the thumbs up on the episodes in this series, I add an extra dollar to charity. So, as of right now, we have raised $293,000, just over, thanks to the profits I've made and the thumbs up that you guys have been hitting. And we've got $289,500 currently donated as of right now. So, I'm a little bit behind. I've got to catch up. So, if you have a recommendation for a children's hospital near and dear to your heart that you would like me to donate to, please feel free to leave it in the comments. My goal is to make a donation to a children's hospital in every single state here in the United States. This is something that means a lot to me. So, thank you guys for hitting the thumbs up and helping make that possible. All right, so day one, it's a hot market. And this h, you know, it really did come as a little bit of a surprise because I'll tell you that pre-market things were pretty slow. This morning I sat down at 7 a.m., which is my typical time that I sit down to trade and we didn't have a lot of action. We ended up having one stock that started to squeeze and I was willing to trade it in my big account, but I didn't feel like it was good enough to trade in the small account. So, I kind of got different quality standards in the big account. I can take a little bit more risk. If I take a loss, it's not a big deal. In the small account, I can't afford to make mistakes. If I lose $500, the account goes from $2,000 to $1,500. And all of a sudden, I can't day trade anymore because you need to maintain a minimum balance of $2,000. So, I funded it with $2,000 and one penny just to make sure I was officially over the $2,000 threshold. So, my quality standard was a little bit higher. And as a result, I didn't take any trades during the pre-market session. And I didn't think I was going to take any trades today at all until that is inh started squeezing. So, how did I find inh moving? So, because this stock was moving very quickly, it fired off on my stock scanners for volatility. It was up enough that I was getting the audio alerts. So, I was getting the notification from the scanner that this stock was moving higher. I pulled up the stock and I saw that it was moving higher on an agreement here to build AI powered used mobile phone sales agent. To be honest, that sounds pretty boring, but it has an important keyword, which is AI powered. And I guess in this market, that is enough. To be honest, I think that short sellers probably started shorting it early on, didn't expect it to go to five, didn't expect it to go to 750, and then added heavily when it broke down right here. Because what happened right there was the trend shifted. Here we're stairstepping up gradually moving higher. And here we step down, which is by itself a little bit concerning. And then we make another step lower and another step lower. And so I think shorts got heavy here. And then suddenly it rips up right there and gets halted on a circuit breaker. If you don't know about circuit breakers, I have other episodes that talk exclusively about how they work. But this halts up on a volatility trading pause. The pause is generated by the exchange and it halts up at about $760. It resumes at just under nine, just over $9. It squeezes up to about 11 and halts a second time in a row. It opens, goes up to 12. It dips down and then rips up to 15. Then it dips down right here and rips up to $20.97 per share. And when it resumed, as you'll see right here, it ended up resuming and going from $32 all the way up to $44 a share. Then it dips down and squeezes, as you can see here, all the way up to $66 a share, which is the high of day. So, wow, that made a really big move. So, how did I trade it? Where did I get in? Let's break it all down. Well, guess what? I didn't trade this stock. I didn't trade this stock for a couple reasons. Number one, I missed I missed the move. I missed the majority of the move on this one, and I didn't feel that I could manage risk. The price is also a little too high for the small account. I really couldn't buy very many shares with the $2,000 balance. So, I felt like this one's going to go without me. I watched it. I was tempted and I let it go without me. But, as you'll notice here on the scan, there were a lot of other stocks moving. and one of them fit well within my risk tolerance. So I was using my halt scanner right here and this was telling me other stocks that were getting halted. B Y Ah, TDIC, WTO, and NPT right here. I liked NPT because it had 119 million shares of volume. TDIC had quite a bit of volume but was too cheap. B Y Ah, good price volume a little lighter. I wasn't sure it was obvious. NPT also met my five pillars of stock selection with the exception that there wasn't a clear catalyst, but that it was trading on sympathy to the other stock that was making a big move. And so I saw it hitting my scanners and squeezing up. I pulled up the chart and I recognized an opportunity right here to buy the first pullback. If you watch the earlier episodes in this series, you know that this is one of my favorite setups that I told you I'd be trading. One candle up, sometimes two, sometimes three, sometimes five, but eventually a pullback. Let it dip down. And right here, I'm a buyer if this next candle crosses this level right here. We call it a crossing candle. The first candle to make a new high is crossing the high of the previous candle. So, I'm a buyer right there. If this candle goes green, I'm in the moment it breaks. I don't wait for the candle to close because by the time the candle closes, the price could be way up here. The moment it breaks, I am a buyer. In this case, in this example, we get a second red candle. So now I'm looking at the next candle, and if it breaks this high right here, including the top of the candle wick, that's the this isn't drawn perfectly, but that's the crossing candle. That's the entry for candle over candle. And that's where I'm a buyer, right there. So, if we pull back our example, this was where I was a buyer. Right in there. That's where I got in. Look at the volume profile. Nice volume on the buying, light volume on the selling. The MACD was open. This all looks good. We got a nice pullback. So, I took my entry right here, buying, as it turned out, 237 shares. I was all in. I put all my cards on the table, all my chips on the table. This is all that I could afford. That was my full balance for the account. and I got filled at $8.29 with the remaining nine shares getting filled at $8.32. Within less than a minute, it squeezed up and I sold at $104 as you can see right here, locking up a profit, which you'll see in just a moment. So, this was the trade from right there to right there. Picture perfect, beautiful, precision, surgical. Just one entry, one exit. That was it. Now, it shows two uh technically two fills, but it was one order to buy that filled in two little blocks and one order to sell. This gave me a profit of $41622 minus a little bit of the fees that Thinker Swim charges or uh should I say Charles Schwab and I'm up $416.13 here in my account today. The account's up 20% in one day. Not bad. That's good work. Now, I only took one trade. I thought about getting back in and as I thought about getting back in, I reminded myself that what's more important is to build consistency. Usually, it's the first couple of trades that are the best and then you start to push it and I can't afford to make a mistake. Now, I've done a lot of small account challenges and some of you have seen me have a great trade on the first trade. I take a second and I go red on the day and I'm furious. I'm disappointed at myself. Why didn't I take the profit off the table? So, let me give you a little recommended reading right here. Annie Duke, quit. The power of knowing when to walk away. It's better to walk away leaving perhaps some money on the table than to give back profit, especially when you're in a small account and you just don't have that margin to make those kind of mistakes. So, today's a great day. The accounts up 20%, I'm feeling good. And for those of you guys who have been tuning in, it doesn't stop here. I want you guys to check out the link for the twoe trial. It is pinned at the top of the comments. It is posted in the description and it gives you the chance to watch over my shoulder as I'm trading. Now, in full disclosure, for this trade, I took it all by myself. I wasn't streaming when I took this particular trade. Now, I was streaming all morning, but this afternoon, I came on and I took this trade on my own. I saw the setup, it looked good, and I executed. Now, I don't think that's going to be very common. In fact, it is pretty rare for me to trade in the afternoon. Typically, I'm trading between 7 a.m. and 9:00 a.m. It just so happened today that we had this picture perfect opportunity. We had it was an opportunity. It was a window and I felt that I had to execute on it. Now, during the afternoons, I've got our mentor John who's got his $ 1.5 million badge and he's streaming providing the market commentary. So, I didn't want to step on his toes. So, members are getting education throughout the whole day. So, if you haven't already checked out the two-eek trial, I hope you do. If you want to watch some of the fulllength episodes about the strategy that I'm trading every single day, you'll see posts to them right there and right there. And I'll remind you as always that trading is risky and my results aren't typical. The best way for you to manage your risk is to take it slow and to practice in a simulator before putting real money on the line. If you haven't checked out the twoe trial, make sure you check it out and stay tuned for day two of the small account challenge coming tomorrow.