Hey everyone, Ross here! Today started like any other Thursday morning. I sat down, scans ready, and found myself staring at… nothing. With my usual filter set to a minimum price of 50 cents a share, the leading percentage gainer was a measly 16%. It was shocking. But switching over to my penny scans, I saw that some stocks were already trading over 100 million shares, with others around 30 million. It was clear: penny stocks were in focus. Here’s how the trades went down.
Hitting Big on ONMD
I’m up $4,000 on ONMD, a penny stock that didn’t break $1 until today. This stock soared over 225% in just about two hours, starting its upward move around 7 a.m. Initially, from 50 cents to around 80 cents, I wasn’t too keen. Day trading such cheap stocks can result in massive fees due to ECN fees charged per share.
Breaking Down the Costs
At my broker, I don’t enjoy free commissions unfortunately. For every trade, I pay $1 plus an ECN fee, which is roughly a third of a penny per share. So, for 10,000 shares, that’s $30 in fees just to buy, and another $30 to sell. This adds up quickly. Today, I traded about 150,000 shares across various stocks, costing me around $450 in total fees. That’s over 10% of my profit!
The First ONMD Trade
My first trade with ONMD was at $1.25. It surged to $1.30, but I didn’t cash out, hoping for a higher gain. It stalled, and I ended up breaking even, losing $60 in fees. I got back in at $1.30 and rode it up to around $1.65 before it dipped. This move turned out to be my best trade of the day.
Struggles with Nvidia and Others
Nvidia also had a big move today following positive earnings and a traditional 10:1 stock split announcement. Despite expecting some profit-taking, it squeezed up, then sold off and came back. It didn’t hold its gains, and I stayed out of it, leaning towards options trading for this stock.
Sorting by volume, ONMD led the top gainers, closely followed by a few other penny stocks with tremendous activity. While these were cheap stocks, their volume was significant. However, trades on two other stocks, CYTO and ASNS, ended up with small losses or minimal gains. SWIN, another volatile stock, was also unpredictable and best to avoid.
Managing Risk and Looking Ahead
As we head into the long Memorial Day weekend, it’s crucial to manage risk carefully. There’s a lot of unpredictability in the market, and it’s easy to get caught up in churning shares and accumulating unnecessary fees. I’ll be back at it tomorrow morning, aiming for a strong finish to the week.
Remember, day trading is risky, and there are no guarantees of success. Take it slow, manage your risk, and keep learning. Don’t forget to check out the Memorial Day sales on my website, and I’ll see you back here tomorrow. Happy trading!
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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.