Account Is Up +330% in 8 Days... transcript

What's up, everyone? Welcome to day eight of my brand new small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today is another green day, but I ran into a little bit of an issue. We had a stock that squeezed up so quickly that the price action jumped over the top of my limit for my limit order, and it didn't fill as many shares as I wanted to at the price I was willing to pay. This is a challenge with trading, especially when you're trading highly volatile securities.

Now, if you're trading extremely thickly traded securities that move in a very narrow range, you can buy huge amounts of shares, and the price is sort of going sideways, so you can get filled. Think of something like buying gold or oil or something like that. There's just so many buyers and sellers that it's not highly volatile, typically. But, that also makes it less attractive to day trade, cuz you're not going to be able to get in and get out with a profit because it's not really moving that much.

So, we look for securities that are volatile, but sometimes that means that the price is moving so quickly that as you press your order, the price moves between when you send your order and it's received and executed by the market, so much so that you don't fill any shares at all. Now, that wasn't the case today. I still filled shares, I just didn't get as many as I wanted, and then the price continued on without me.

And that leaves me with a decision of do I chase it and just add more shares at a higher price, which then creates more risk, or do I just accept the smaller position and make the most of it, which is what I did. So, in total today, I only had one trade, but it was a green trade, and so that now brings me up to 15 trades in total in this series, and I've been green on 12 out of 15, which means my accuracy is 80%, which is pretty good.

So, we're going to break down the trade from today. As always, all of the profit from this small account challenge, along with the last um four that I've done here, gets donated to charity. And every time you guys hit the thumbs up, I'm adding an extra dollar as a match to how much I'm donating. So, we're now up to $325,000. I'm going to donate to another children's hospital, and I would love for you guys to give suggestions down in the comments of today's recap of hospitals that you think would be a good candidate for this next donation.

All right. So, thank you guys for doing that, and thank you for hitting the thumbs up on the episodes in this series and helping us raise so much money for a good cause. Today is day eight, and this morning, when I first sat down, I noticed that we didn't have any really big gainers on the top gainers scan, which is the scan that I use just to get a a good picture of the overall market. I was a little disappointed by that, but I also thought, you know, yesterday we had the stock that went up over 300% and the news didn't even come out till about 8:22 in the morning.

So, here early, I wasn't too worried that we didn't have anything yet. And then, all of a sudden, ICCM pops up on our scanner. It has a catalyst right here, as you can see, and I looked at the daily chart, and I thought to myself, this looks very similar to the move that we had yesterday on NXT-S. So, let's look at NXT-S for a moment, just as a refresher. Now, NXT-S, if we look at this on the 5-minute chart full screen, as it first popped up yesterday, we recognized that it would have resistance at the previous day where it had popped up, and then resistance at the day before that where it had popped up.

And so, initially, we thought, well, it's probably going to reverse off these levels and come back down the way it did on these two days. But, in fact, it kept pushing higher and even higher. So, when ICCM first pops up on the scanner, I looked at that daily chart on it, and I said, you know, ICCM, I said to myself, this actually could be really interesting for that same kind of setup because, look, we've got the previous peak up here at around 960.

We had this high right here, double top at around 841. So, I thought if we break that level of 841, we might get a nice squeeze up to nine. If we break that level, what was the next resistance on NXTS? NXTS went all the way up to the 200 moving average, which was at $22 a share. So, that's kind of what I was getting lined up for was a similar type of trade. Now, this one was also putting out a headline in the biotech space.

So, you know, I kind of thought everything was lining up here for uh that possible opportunity. Now, unfortunately, that's not exactly what ended up happening. But, nonetheless, that was my thesis going into this trade. So, it pops up here with breaking news, and I took this micro pullback right under seven, right here. We get the squeeze up to 750, up to eight, up to 850, and I was hoping this thing would continue higher.

It drops back down to 750. It comes back up right here, and I end up getting out when it's unable to break through 850, because that ended up being resistance. So, entry $699, exit $8.03. Total profit $614.47, which now brings my account up to $8,600 versus the $2,000 starting balance. So, the account is up 332% as of right now. 15 trades, 12 winners, three losers. 80% accuracy, and the average winners are about or the average trade is about $442.

This is um the average of the total profit divided by 15 trades. So, I could do my average winners and then my average losers separately to get a accurate profit to loss ratio. But, for right now, I'm just doing my average uh per trade gain or loss. Fortunately, it's a gain. So, I am making progress in the account. It is only about 9:40 right now. I could potentially take more trades, but I kind of feel like the window is closed.

We didn't have a stock coming into the opening bell this morning that was as obvious as NXTS. And of course by the end of the day NXTS had rolled over and sold off quite a bit, although that was in a large part because they did a secondary offering that they announced right at the 4:00 p.m. closing bell. A secondary offering is when you sell additional shares on the open market to raise money for the company to continue to grow and do their research and development and everything else, but it has the effect of diluting the value for all current shareholders because they're selling more shares.

So, the float goes up, more shares get sold. It wasn't a particularly large offering. It was about 400,000 shares at $7 a share, but nonetheless the market didn't receive it well, certainly when it was trading up around $14 a share when that news came out. So, although this did give us a really nice squeeze after the opening bell yesterday, we didn't have something that was set up equally well coming into this morning.

HSCS, you know, this one was sort of a potential candidate, but I said, "Ah, it's below VWAP. I just don't know that that's really going to work. It's not nearly as strong." ATLN, I felt the same way. Also lower priced, didn't think that would really work. RDGT, this one wasn't set up. So, you know, I I don't think I'm really missing anything by throwing in the towel early here today. I hope maybe something does end up becoming an obvious stock, but today feels like a little bit of a miss, and yet I'm still walking away with a little bit of profit, which is always a good thing.

So, I'll remind you guys who are tuning in. Every single day starting at 7:00 a.m., I'm streaming. And you can tune into my broadcast. And when you tune into the broadcast, you can actually watch over my shoulder. You can see my orders, my position window. You can see where I'm getting in, where I'm getting out, and it gives you a real uh deep insight into the strategy that I'm trading every single day. So, make sure you guys check out the 2-week trial if you haven't already, and I'll remind you as always that trading is risky.

My results aren't typical, and you always have to manage your risk by practicing in a simulator before putting real money on the line. Now, if you want to learn more about the offsets that I use for my orders, the different types of orders that I'm um uh trade using in in in my trading, check out the episode where I reset down to $2,000 at the beginning of this series because that's where I walk you through the different hot keys that I'm using during the small account challenge right now.

So, thank you guys as always for tuning in, and I'll see you back at it tomorrow for day nine.