+$5,513.64 And Breaking Over $60k In Profits Trading From Santa Barbara!

Midday recap. Let’s break down the trades from this morning. Hanging out here, day … I don’t know. What is it today? Day six being in California, day seven. It’s been a great week here. I’ve had a lot of fun and trading has been awesome, so I’m finishing the morning up $5,513. Can’t complain. We’re just seeing some great opportunities day after day after day. Today I’m breaking over $60,000 of profit on the month, and we’ve only had 11 trading days so I’m averaging $5,500 a day. You know what? These days are just going to help me boost my average for 2018.

Last year I averaged … I can’t remember now. It was $1,500 a day a want to say. I think it was around $1,500 a day, something like that. $1,500 times 235 trading days, yeah, around $1,500 a day. And you know what? That was great. $1,500, $1,600 is a great average. $350,000 is not bad at all. If I actually averaged $5,000 a day for the whole year I’d make over a million dollars, and I’m not setting the bar that high. I think that would be unrealistic and that would be setting myself up for a disappointment, so I just want to do better than I did last year and keep always trying to be a better trader, so this is a great start to the year so far. I’m getting really close to breaking over $100,000 in my trading account. This account started at the beginning of the year with like $33,000, so once again proving it doesn’t take a lot of money to be a profitable trader.

As of right now I’m at $392,000 in my account that I started a year ago with $583. $583 to almost $400,000. I’m excited for meeting the halfway point of $500,000, so I’m $108,000 off that level and maybe get to the halfway point in March or something like that, but that’s the line in the sand. Once you get to the other side, it’s like hump day, Wednesday. You get to the other side of the week and it’s smooth sailing. It’s downhill. So I’m just excited to get to the other side there. At the beginning of this challenge, even on the day when I broke over $100,000, I was like, “Okay, that was great. I took $583 and turned it into $100,000 in 44 days, but I’m still only 10% of the way there. I’ve got to do it 10 more times before I get to a million bucks.” That was definitely a little scary to know that I was that far from the goal, but slow and steady wins the race. Year later and $392,000 is not bad, so let’s look at the trades from this morning.

Today was a day where I really didn’t have anything that I was crazy about, so let’s look at the gap scanner. Let me see. Where’s my mouse? There it is. Alright, so gap scanners this morning. I’m going to go right click, timeframe, historical date, and we’re going to look at this gap scanner at 9:15 AM, whatever. 9:12 AM. That’s fine. Alright, so 9:12 AM. This is what the gap scanner looked like. Oh, it’s got to update I guess. It’s slow to update here for some reason, but our leading gapper was JUNO. There it is. JUNO was the leading gapper, gapping up 64%, and so I was like, “Okay, this one certainly looks interesting.”

However, what’s the reason that I might not have been super crazy about it? The volume. 3.37 million shares of volume. That basically told me that when the bell rings, it’s not going to mean a lot because traders are already actively trading it, so this is very thickly traded for premarket, and so when I looked at the chart, so number one I looked at the scanner and I thought, “Well, I don’t know if I like it because the volume is so high.”

That’s number one. Then number two, I look at the chart. I pull up the chart and I realize that it had sold off versus the premarket highs, so that was number two. Two reasons that I was a little iffy on the trade. However, we still ended up seeing an opportunity on it, so right out of the gates I thought, “You know what? I’ll jump in here to see if it pops over $3. The high is $2.96.”

So my very first trade I got in this at $2.90 with 7,500 shares. Target was $3 and $3.05. A break of $3, planning to sell around $3.03, $3.04, $3.05, maybe sell the rest at $3.10. That would have given me about $1,000 of profit, so that was my profit potential on the first trade. It popped up to .95. It didn’t hit my target so I didn’t sell. And then it dropped down and I sold at .88 and at .79, and this is actually a bummer because if I had been able to sell the whole thing at .88 I only would have lost $150, but I sold most of it at .79 because it dropped fast and so I lost $718 on my very first trade. One minute into the day I’m in the red and for that one I thought, “Okay, I’m starting in the red. That’s not going to be good.”

Here’s the deal. I talk about liking high volume. I like high relative volume. I’m going to mute my scanners here. I like high relative volume, but there’s also a tipping point where we have too much volume, so that’s an interesting thing because it’s not more volume is just better. It’s sort of a bell curve where light volume stocks are hard to trade because the spreads are big and they’re not really great. Increasing volume is good because that means traders are starting to see it. They’re starting to buy it up, and you get that feeding frenzy, especially with small caps. Traders jump to the next opportunity that’s moving, so when a stock is starting to move, that’s the time when volume is ramping up and the price is moving quickly that we want to jump in and try to capitalize on that first and maybe second leg of the move.

But then we get a tipping point where okay, now the volume has really peaked. We have high volume. The move has already happened. And now you may have some traders who are jumping in to try to buy the first five minute pullback or something like that, but you also have traders who are like, “I’ve been watching this for a couple hours. I think it’s going to drop. I have a big account. I’m going to short it.” And so it starts to bring in short sellers plus more people taking profit, and then that’s when it becomes more difficult to trade, and that’s the backside. So NURO, you see the front side which is this first move up, and then it pulled back and this had the opportunity of continuing higher but when it broke down right here on this red candle at 8:35, that to me signifies that it’s turning to the backside of the move.

Now, I will sometimes try to trade the backside of the move because I think that it could pop back up and continue, but it’s risky and on this one I ended up being wrong and I lost. Now I’ll say, my accuracy so far this year is 80%, so 8 out of every 10 trades I take I’m right on, I’m making money on. So my accuracy has been pretty good and even on this one, to lose $700 is not a big deal for me. Within my risk tolerance, this is not really a concern. It was just a trade I took and it didn’t work, so I stopped out, and if you had taken it with 2,000 shares you would have lost $200. If you took smaller size, the loss would have been smaller. For me it’s a $700 loss because I took 7,500 shares. It’s related to my position size.

Okay, so that’s a little explanation on NURO and on the volume, that balancing act between high volume but not too high, and also it’s not just the volume. It’s also the chart, because when you have higher volume you’re more likely to see this type of chart action where it’s a little bit choppy.

Okay, so NURO was on the list. I took a trade on it and lost on it. AEZS was also on the list as a maybe. You can see 320,000 shares of volume. It wasn’t as crowded, but the chart didn’t look very nice because it had popped up and then it really was just selling off, so by the time the bell rang it just wasn’t looking super pretty, so that was no good. And that was it. JUNO was too expensive. NEWA, too expensive, and these ones I wasn’t interested in. They were either too cheap or just didn’t look good on the charts.

So the bell was about to ring. I only had two stocks I was watching. NURO, AEZS. Took a trade on NURO, lost $700, and so I was like, “Alright, well let’s watch the high of day momo scanners. Let’s see what starts to pop up, what starts to look good.” And the first one that popped up was ONTX. One of the things that I look for when a stock hits that scanner is I want to see the stock is moving quickly.

This stock was definitely moving quickly because it had already squeezed from $2 up to around $2.20. Let’s see. Let me zoom this back in. So you can see my order there, buying 7,500 shares at $2.27 and $2.30. Let’s see. Right here. So I bought $2.27 and $2.30. It pops up and it taps a high of … What was the high? .67 or .60, right around there. But unfortunately it did not hold that level at all and it came back down, which was disappointing, so I sold into that squeeze going up, so 7,500 shares from .28 selling at .48 is $1,500. Selling at .52 is like $1,600, $1,700. So $1,700, $1,800 on that trade and then I got back in at $2.40, so I got back in when it consolidated.

It pulled back and then it started to ramp back up, and so I got in right here. Target was a retest of high of day. We couldn’t retest high of day, and so I ended up stopping out but I made on that one another $750 from $2.40 to $2.52 and $2.54 and $2.52, so total profit $2,171.25. ONTX. Easy trades, not a lot of risk. Just getting in, getting the profit, and getting back out.

Next trade, ORPN. ORPN was a little bit suspect to me, and this is one of the things. The way I trade, I look for stocks that are hitting my high day scanners, and what other people will do is they’ll look for stocks that they think could move really fast because they have a low float, they’re thinly traded, and they’ll just buy them. And so you guys have probably followed email newsletters and stuff like that where they kind of just pick those stocks and then they alert them, and boom, the stock just goes up. And for me, I don’t do that because I don’t feel comfortable doing that. Instead, I look for stocks that have already started to move and then once they’ve started to move, then I’ll just jump on the momentum. I don’t like to be the one that is starting momentum. I just don’t feel like that’s the right thing to do, but that’s what happened here. Someone just bought the stock and alerted it to their newsletter and it pops up from $2.70 up to $3.29 and it’s halted on a circuit breaker.

Okay, so at that point it’s now hitting my scanners and now I’m seeing it, so I’m like, “Okay, this stock is starting to move. I can jump on it.” Well, by the time it hit my scanners I tried to get in but I couldn’t get filled. It just moved too fast, so no fill on that. I don’t think I even tried. It was halted right away. It resumed higher, and so what I do on these ones is I wait for the resumption. Let me just pull this back. I wait for the resumption, and when it resumes, I let it pop up, and so this popped up here.

It’s going to be a little bit hard to see. It opened. The open price was $3.65. It popped up to $3.80 and then it dropped down, and then when it curled back up that’s when I got in at $3.89, and I only took 2,500 shares on it because I was a little iffy, although in hindsight I suppose I could have been more aggressive, but the volume was light and I also wasn’t sure because sometimes when you see stocks suddenly pop up like that, as soon as it resumes from a halt, whoever alerted it down at $2.70 or whatever it was is going to be selling. That’s not always the case but it can be the case.

If the stock was popping up because of news, an actual catalyst, that’s different because then people are just going to keep buying, but when it’s a pop from a newsletter alert or chatroom or whatever it might be you have to be a little bit more careful initially. So I got in at $3.89, 2,500 shares. I sell half when I’m up $.30 at $4.20. It’s then halted at $4.23. I try to add at $4.23. I don’t get filled. It then pops up after the halt and I sell it at $4.56 and I take some profit. It squeezes up a little bit more. It taps a high of $5.23. It pulls back. I buy this little pullback at $5.19 and $5.23 and $5.50 and sell at $5.56, $5.53, and $5.45, and the rest at $5.50. That was on actually a five minute setup. Let me just pull this back here.

And you know, here’s the thing. If you were a trader who for some reason had a strong bias on this, you’re like, “Well, this stock. I think it’s really strong.” A lot of people will scan daily charts. They scan daily charts the same way we look for intraday charts. They’re looking for bull flags. they’re looking for stocks that if they break out they could squeeze, and someone bought this, thought it could break out, could squeeze, and they were totally right. I mean it obviously did.

For me, I’m not good at doing that so I just wait for stocks to start to move and then I jump on that momentum as soon as I see it hit my scanners, and I think that’s a little bit easier for beginner traders as well just to focus on scanner alerts, because when you’re trying to do swing trading it can be a little bit hard to pick which stocks are worth trading. Anyways, this has a high of $5.25 on the five minute, does a little five minute pullback, pops up to a high of $5.99. It can’t get over $6 and it fades off that level, so a decent couple of trades on that for $3,104.88.

Then the last trade of the day was MYOS. MYOS was on our scanners this morning. It hit the momentum scanners, and when it hit it was at like $1.85 by $1.90 and I was kind of watching it. I was like, “Okay, this looks interesting. I’m not sure.” It starts to squeeze up a little more. $1.95, $1.97, $1.98, and at 1,98 I saw a 10,000 share seller and so I thought, “Okay, well when that seller moves maybe I’ll get in.” So that seller started to get bought up. Other people were coming in and buying his shares. It went from 10,000, 9,000, 8,000, 7,000, 6,000, 5,000, and boom, boom. That’s when I jump in at $1.98.

However, when I got in at $1.98 I immediately realized that there was a hidden seller, because I bought 7,500 shares and I didn’t see it on the level two. I didn’t see the share size get smaller, so that made me a little nervous, and then when it popped up to $2.14 as it broke over the whole dollar, I sold half, I sold a quarter more, and then it was halted on a circuit breaker. It ended up squeezing to a high of $2.33, but I didn’t sell it there. I just ended up stopping out at $1.98 when it came back down.

So $955 on that, and with that, I wrapped it up. Called it a day at 10:30. First hour, one hour in, and finished with $5,513 of profit, so not a bad day at all. What is it? 9:25 here in California. 9:25 AM and it’s time for me to go enjoy the warm weather. Drive around a little bit. Explore. I’ve got the whole day ahead of me. It’s awesome. It’s nice getting up at 5:30, trading early in the morning, and then having the whole rest of the day. The only thing is you’re tired at night and you can’t stay out late, but as long as you don’t mind going to bed a little early it’s a good time.

Anyways, that’s it for me today. I’ll be back at it first thing tomorrow morning bright and early. Premarket analysis around 9:00, 9:15. We’ll trade at 9:30. I’ll trade the first hour, and then I’m going to get out of here, drive down to LA. Alright, so that’s the game plan for tomorrow and I’ll see you guys right back here in the chatroom. Anyone on YouTube, Facebook, you’ve got questions, comments, leave them below. Give us a thumbs up if you like the video, and I’ll see all you guys bright and early tomorrow. Alright, that’s it for me. See you in the morning.

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