Hey everyone, it’s Ross Cameron! Today was another exciting day in the world of day trading. Although it wasn’t a wild card Friday, we witnessed three stocks soar over 100%. This kind of action always gets the adrenaline pumping. When I first sat down this morning and checked the scans on my phone, I saw penny stocks leading the gap scanners. I’ve never had much luck trading these low-price stocks, and my data backs it up. Stocks under $2 account for less than 2% of my total profit, which is over $10 million.

My History with Low-Priced Stocks

Low-priced stocks and I just don’t mix well. It’s not just a feeling; it’s in the numbers. For years, I’ve analyzed my trading history, and these cheap stocks simply don’t bring in the profits. When I saw today’s leading gap scanners full of low-priced stocks, I thought, “Oh boy, here we go again.”

SPEC

The first stock to catch my eye was SPEC. This one was particularly interesting because its explosive move started after hours. It jumped from 35 cents to 85 cents, and continued to surge in the early evening. By 7:00 PM, it had broken out again, and by 7:45 PM, it hit its after-hours high.

At 4:00 AM, there was high-volume selling, and 600,000 shares were sold in just two minutes. The float for SPEC is 3 million shares, and its daily chart has a history of some nasty red days. When looking at the catalyst, it was an 8K filing stating an agreement with a law firm regarding legal fees. This news wasn’t strong enough for me, and I remained skeptical.

AREB

AREB (American Rebel Holdings) was the next stock up over 100%. It skyrocketed from 30 cents to 80 cents and saw a bit of a pullback and recovery. I decided to jump in at 70 cents. It squeezed up to 80, then 85, 90, and even touched a dollar before pulling back. It ran into resistance at the 200-day moving average, almost to the penny.

This reminds me of KAVL last week, which blew through its 200-day moving average resistance, making it a special case. AREB’s catalyst was a distribution agreement with the state of Connecticut, which led to its impressive run.

NXL

NXL was a surprise. The volume increased out of nowhere, and there wasn’t a clear catalyst. It went from $1.02 to $2.80 by 11:00 AM. This stock had been in play earlier in the week but started taking off unexpectedly.

Detailed Analysis of MINM Trade

MINM was interesting. Initially, I was skeptical due to its poor chart pattern and 200-day moving average resistance at $3.87. I entered at $4 with 2,500 shares, and it quickly jumped to $4.80. I was up 80 cents a share in no time. However, it soon dropped back to $3.80 before recovering to around $4.20, where I exited with a tidy $500 profit.

Throughout the day, I made seven trades on MINM, all winners. My average winners were small, but consistent gains add up.

Mindset and Risk Management

After yesterday’s close call, I decided not to push my luck too much today. I was cautious about entering big trades and aware of the potential risks. This mindset helped me avoid significant losses, allowing me to end the day on a positive note.

The Impact of Commissions

High commissions have been a consistent frustration for me. Last year, I paid around $63,000 in fees and $20,000 in commissions. It’s a bit demoralizing to see 22% of my profit go to the broker. This year, I aim to keep fees in check.

I’ve tried various brokers, like E-Trade and Interactive Brokers. While my current broker has a reliable and fast platform, the high fees are making me reconsider. I’m planning to research and test new brokerage accounts this summer to find a better fit.

Over my career, I’ve paid about $1.4 million in fees and commissions. That’s about 10% of my $11 million net profit. While this percentage is acceptable, the increasing fees recently have become a concern.

Closing Thoughts

Overall, I locked in $1,662.84 in profit today on my trades between MINM and AREB. I think that’s a good way to go into the weekend. I hope you found today’s recap insightful. Day trading is exhilarating, but also risky. My results aren’t typical, so always manage your risk and take it slow. Keep learning and improving, and maybe explore alternative brokers if high fees are eating into your profits.

Stay tuned for more updates, and as always, 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.