Penny Stock Goes Up +225% in 2 Hours! transcript

all right everyone so here we are Thursday morning and today when I first sat down I was like there is nothing on the scans but keep in mind that when I'm scanning the market I have one filter which is at the minimum price is 50 cents a share so this morning on stocks over 50 cents a share the leading percentage Gainer was uh 16% it was only 16% it was crazy I haven't seen a gap scan that poor in a while but then I checked my penny scan and I saw that there was already over 100 million shares on a stock price below 50 and there were two others that each had about 30 million shares so once again it was very clear that penny stocks are in focus and so let's get into the trades from today I'm up $4,000 on MMD which is a penny stock although I didn't trade it until it broke over a dollar a share so I'll break down my trades for you on this this went up over 225% in about 2 hours this morning popping up beginning at 7 a.m. so when it first popped up on the scans at 7:00 a.m. it's squeezing from 50 up to uh 70 cents up to 80 cents right here and as it made this move you know initially I kind of thought well you know I mean for honestly I'm just not interested in trading stocks that are this cheap and this is sort of an interesting issue that I have my ecn fees are charged on a per share basis so let's get out the Whiteboard and I'll kind of break down um how this works so at the broker that I use I don't have free commissions I pay uh routing fees so if I want to buy 10,000 shares of this stock I pay a commission which is per trade and I think they start at like $3 or $4 I pay $1 per ticket and that's kind of because I've been trading there for so long and I've done so many trades I've been able to get discounted but then I also pay an ecn fee which is per share now the ecn fee is 0.3 which means it's about a third of a penny so that means on 10,000 shares I'm going to pay 30 bucks so 30 so basically it's uh $31 to buy when you add the two together the commission and the fee $31 to buy and then of course it could be $31 to sell which means it's $62 and that's if I only do one entry and one exit if I do one entry and then five exits then I'm going to pay $5 or $6 in the commission but that this is the very small part that doesn't really make a difference the issue here for me is the ecn fees so on a 10,000 share position I'm going to pay $62 in fees wow so that means if I trade well and so that would mean I've traded a total of 20,000 shares all right so if I trade trade uh today I traded about 150,000 shares in total and that was primarily on om and times well the number of tickets I don't know I could check to see I probably have like 40 tickets so probably $40 in commissions and then times 003 that's going to be $450 right 300 bucks plus $150 so $450 so my commissions today are a little over 10% of my profit I'm up $3,800 in total four fees and commissions so commissions are going to be a little bit of a problem and the thing for me is that I just know that on these types of stocks because commissions are going to be so high it's very easy for me to start just churning shares I get in 10,000 shares I get out I get back in I get back out and next thing you know I've accumulated you know $1,000 in fees and commissions so here was my first trade it starts to pop up right here and I took my first trade at $125 right here it it pops up and it goes up to um sorry it goes up to where is this um a125 right here and I bought right at that level um right at about1 125 and it goes up to a130 I was up 400 bucks but I didn't take the profit off the table uh and the reason I didn't do that was because I thought it had the potential to go higher it ended up stalling out a little bit so on my first trade I got in and I got out break even so I lost $60 in fees and commissions and then it comes back up and I got back in right here on this candle for the break through a130 so I got back in right there for the Breakthrough a $130 and it squeezed up to $135 $140 $145 $150 60 this thing went all the way up here to a high of a do 65 this was my best trade of the day this was fantastic so you know I mean a 30 C gain on a stock this cheap you just don't get that every day now right here as it started to go um what I was kind of looking at as as parabolic I was like all right now we're starting to go parabolic really pulling away I was wondering if we were just going to squeeze right to $1.75 80190 or even $2 that wouldn't have been impossible so I was ready to scale up for a big move but what ended up happening is it kind of stalled out here to about $165 it dips down I did buy the dip at a148 it bounces back up to a160 can't make a new high and so at that point I thought all right well unfortunately we're probably going to be pulling back even more so given that I think I'm just going to step back and it ended up that the macd crossed over so we could see right here we got a macd crossover right here so we've got the crossover so at that point I'm like NOP not going to trade it so didn't trade this didn't trade this expected it to reject and then coming into the open it did pull back quite a bit as you could see and then all of a sudden we get this red to Green move it squeezes up it halts up but it opens higher and boom flushes back down two halts back down so unfortunately I don't know people bailing on it just getting really difficult so that was om omm D we also had a big move on Nvidia which um had earnings last night which were positive good and also is announced a 10:1 re 10:1 I think it's 10:1 reverse split that's going to take effect um in June so not a reverse split a traditional split so this is going to become a approximately you know $136 stock so you know that's good to see um now this for me what I kind of suspected would happen this morning was a little bit of profit taking and I was a little surprised that um coming right into the open it squeezed up like this it then sold off then it rips back up pulls back pushes a little higher sort of double tops right here at about 40 and has pulled back and is under that level now so no trades on this for me um you know probably a stock that's better for options trading I I had mention that this is one that um you know I I sort of have a feeling that it's going to Rally going into the reverse split I sorry the traditional split I'm so used to reverse splits um that happened with Tesla if we think about Tesla during the really hot Market of 2020 2021 when it was on just such a tear um they did a stock split and as soon as they announced the split the price just surged up so there was just like incredible buying they announce the split it squeezes up and then they do the split and it sells off now there's some really interesting stuff here people are asking you know how much will I make on a stock split is this a chance to make like a big return and then some people are like oh my gosh I'm going to lose a lot of money on stock split price is can go all the all the way down to $100 so to be very clear a stock split does not change the market cap of the company so by doing a stock split if you're in during the split it's not it's a it's more or less a non-event except for the effect it has on psychology and sentiment so I think that there sentiment here which is that oh great this is going to become cheaper more affordable more people are going to want to buy it and therefore it's going to go up maybe the way Tesla did so you know that may happen to be honest um I'm not going to chase it up here to the long side uh so I don't really have any strong opinion um on trying to trade it in this area so so that's that um now on the side chart I have BCG here which has been squeezing up a little bit this one's kind of interesting cuz they had news out yesterday but it's been very thinly traded uh kind of big spread sort of popped up flush back down you know obviously you could see it's made a nice move from four up to nearly $8 it's up 77% this one is a blue sky setup over 16 so a little ways away from that level that's way up here uh you know I don't know maybe something um maybe something to consider if it keeps moving higher but I think the challenge today is whether or not this is obvious and you see all these topping tail candles like it pops and it pulls back it pops and then it pulls back these can be really difficult to trade so my gut feeling uh is that I I probably should just leave this alone and not overstay my welcome today you know the fact is if we sort by volume let's look at the volume of the market o nmd has the most volume of a top Gainer scan but we've got a couple of pennies down here 327 million shares of volume on G GW this has got a tremendous amount of volume it's cheap but tons of volume I think people were hoping it was going to be the next stock to go to a dollar seems like it's not Asti 150 million shares of volume so we've got a lot of volume on these cheaper stocks but today it was MMD that ended up uh pulling away way now I did take trades on two other stocks uh CTO I took a trade on ended up working out somewhat well but U but anyways I I got stopped out on it basically a $72 loss very small loss and asns I took a trade on that it broke over $1 a share thinking maybe you know this is the next one and it did make a nice move but it didn't hold um very well so left that one alone uh as well so you know just kind of weird uh choppiness and then swi you know this one is so shady look at this dump the other day then it rallies back up into pre-market and then dumps again this is just that classic garbage the action that we've been seeing a lot of so I'm sure some people will look for a dip on this and wonder if it's going to do you know a ctnt and rip up to $40 a share but then even if it does it's probably going to come back to a dollar the way this one did right so ctnt had the day where it dropped here from $10 all the way to two and then rallied all the way back up here to 44 so you know I'll keep I'll I'll keep an my chart up for swi but I'm also just going to be honest that these are stocks that are very shady really hard to trust in any way so you've got to just be so so careful just tons of selling at this point so anyways manage your risk and as always I'll be back at it first thing tomorrow morning hopefully we can finish off the week with another um you know nice Green Day and uh we got to remember that we're going into the weekend we got a long weekend here Memorial Day is on Monday so we do have our Memorial Day sales going on right now at where you're trading you come over to the website and check out out if you haven't already make sure you do that and I want to thank you guys as always for tuning in hope you hit that thumbs up hope you subscribe to the channel and I remind you as always that trading is risky and there's no guarantee you'll find success whether you trade on your own you learn from me so take it slow and I'll see you back here tomorrow