Hey everyone, Ross Cameron here, and wow, what a phenomenal day for trading! Today, I aimed to surpass my daily goal of $5,000, and I am thrilled to say I achieved that and more. The star of today’s session was SGBX, a stock that soared over 150% due to breaking news, which turned out to be a perfect short squeeze opportunity. The stock experienced multiple breakouts and pullbacks, making for a very engaging trading session. Let’s dive into the recap!

The Alert That Started It All

My day trading journey began this morning when SGBX popped up on my scanner at $3.14 around 9 AM. Recognizing the stock from yesterday’s market activities, I quickly positioned myself with an initial 500 shares at $3.17. I was drawn to this move for several reasons:

• The attractive price point
• The low float of the stock, which indicated potential for high volatility
• The significant relative volume from the previous day’s activities
• The presence of a strong news catalyst which typically propels stocks upwards

Analyzing the Daily Chart

The daily chart provided further insight into why SGBX caught my eye. The stock had undergone a 20:1 reverse split recently. Post-split, it showed some resistance around $6 with the potential to escalate towards the $10 mark, aligning with the 200-day moving average. Although the chart depicted a stock that had significantly dropped over the past year, it followed a typical pattern of a reverse split followed by a news-driven spike and potential secondary offerings.

Managing Trades and Breakouts

As SGBX began to move, I adjusted my positions accordingly:

• I boosted my position size at $3.23 and $3.39 after witnessing the initial upward movement.
• I secured some gains by shedding shares at $3.61, a prudent move considering the volatility.
• I re-entered at $4 during a dip, capitalizing on the momentum that eventually led to peaks around $4.20, $4.30, and $4.40.

During the first significant leg up to $4.54, I realized a gain of $1,500. This leg allowed me to increase my trading size as my rules permit taking more risk once I surpass $1,000 in profit for the day.

Seizing Opportunities and Knowing When to Quit

The trading pattern showed resistance at $4.54, aligning with the previous day’s peak, forming a double top. Observing heavy selling at $4.60, I opted not to chase the bounce, demonstrating the importance of strategic exits in day trading.

When SGBX broke through the $4.54 resistance, I saw an opportunity with a 20,000-share buyer at $4.50. I aggressively increased my position, facilitating a push enormously rewarding, with the stock reaching highs around $5.10 and $6.15. By strategically taking profits and re-entering on dips, I managed to lock in a total of $5,360.

Utilizing Level 2 data revealed critical sell orders around the $6.20 area, a clear signal for potential pullbacks. Identifying these resisted levels and understanding market depth allowed me to navigate the trading waters carefully without getting caught in adverse movements.

Discipline, Consistency, and Risk Management

Today was not just about the profits; it was an example of the power of discipline and consistency in day trading. By focusing on small, consistent wins and understanding when to step back, I safeguard my monthly goals and maintain a strong trading foundation. Today’s success story with SGBX underlines the critical nature of being well-prepared and responsive to market movements, emphasizing that while day trading can offer great opportunities, it also requires a disciplined approach to risk management.

For those eager to learn more about day trading and witness these strategies in action, consider joining me for a two-week trial. This experience will grant you firsthand insights into effective trading strategies and real-time market analysis. You can sign up here!

Happy trading!

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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.

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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.