Red Day Recap transcript

Well, it was bound to happen. Today's day 33 of the small account challenge, and it's another red day recap. I've gotten out three red days, I believe it's three, during this challenge so far. Today's not the biggest red day that I've had during the series, but it it's disappointing nonetheless, and I also am at a max loss red day in my big account. I'm going to upload that recap later. You're definitely going to want to stay tuned for cuz I actually traded the same three stocks in both accounts.

All right, so let's jump into the small account recap first. Um as you guys know, all the profits from these challenges get donated to charity. However, what happens on a day when I lose money? Well, the amount that I'm donating gets subtracted by the amount that I lost because all the profits, net of the losses, get donated to charity. So, well, that means $800 comes off how much we donate, except that every time you guys hit the thumbs up, I add an extra dollar to how much we donate.

So, that means the increase from episode 32 or day 32 to today is 100% thanks to you guys hitting the thumbs up. So, we've now raised uh $446,000. Again, no thanks to me on day 33, but um but I appreciate you guys hitting the thumbs up. Uh so, I donated uh $15,000 today to bring our total donations to 450,000 to children's hospitals in Indiana, Iowa, and Kentucky. So, um we are now at 45 uh children's hospitals that we've donated money to, and we've got five left to go as part of this challenge.

So, I'm really excited about that. Uh thank you for helping make this possible. So, day 33, our leading gainer this morning was W E T O. As you can see right here, up over 200%. It's a Chinese stock with no news whatsoever, so it fits into this crazy theme that we've had in the market of stocks with no news making bigger moves than stocks with actual legitimate catalysts. It doesn't make sense, but that's the market that we're in right now, and so just riding the waves of momentum.

I wanted to break down my five pillars of stock selection and how this stock fits into them. So, WETO, number one, is up more than 10% on the day. That's the first pillar. And this was, yes, up over 200%. Number two is that the relative volume should be five times higher, 5x or higher. And in this case, it was a little over 49. There should be a catalyst. That's what we would prefer, and in this case, there is not one.

The price should be between two and 20. It was. And the float should be under 20 million shares, and it was. So, this met four out of five pillars of stock selection. I'm willing to trade a four out of five pillar, especially in this current market where news is preferred, but, you know, if it's not there, it's okay. Now, other pillars such as float, um, on what was it? Yeah, yesterday, we had a stock with a 46 million share float.

They ended up making a 1,700% move. So, that was surprising, but it met the other pillars of stock selection. So, there are times where four out of five is going to work. So, anyways, this was a lead the leading gainer. It had popped up, pulled back, and then squeezed early at about 5:30 in the morning. First pullback, surges higher to 11, dips down, bounces off the volume weighted average price, and rallies back up into a double top.

Usually, I'm like, double top, that's not great. If we got a cup and handle formation, double top with a little bull flag here, we could take that breakout, but this pulled back a bit too much. However, just the other day, we had WXM, which had a similar chart. Squeezed up, double top, pulled back. I hesitated on it down here, and then it ripped up to 14. So, because of that, I said, "I'm going to go ahead and take this trade right down here." And I punched it.

I jumped in this at $10.35. It was on the scanner squeezing up right here, and so I jumped in this for that squeeze um through 1050 and looking for the break through the high of 11. And we got to move up to about $11.50, which gave me a profit of $2,195 and 26 cents. Now, I'm going to pull up um let's see. Uh do do do do do I'm just going to pull this up. So, my entry was um right down here. So, first trade the entry was First entry was at $10.34, 34.99.

Now, I took that same trade in my um big account. Um so, in my big account uh today was Well, um what's the polite way to say? Um hm I don't think there's a polite way to say it. So, I'm not going to say uh I'm going to save it for the recap. But, what I will show you is that I had my first entry in the small account um right here at about the same price of $10.35. Oh, let me just drag this up so you can see it better.

So, $10.35 uh same price as the small account as the big account. That was the same starter. And then adding as it was going higher. So, basically took the same trade in both accounts. And in the big account on that trade, I made $26,000. So, about 10 times as much. Well, 5 10 15 20 25 30 30,000 share position, right? I can afford more shares. So, of course I made more money on it. So, that was my first trade of the day.

Then, um we have another stock that pops up and it's STKH right here. This stock is up 127%. It's meeting number one criteria. Number two, the relative volume is 4.09. It's below five. And I didn't catch that until after I finished trading it. Okay. That's important to note. No news catalyst. Price is fine. The float is fine. But, because it meets it's missing two of the pillars, it's actually only three out of five, which is a little risky.

And I got caught in that false breakout right there. Now, this is tough cuz you've got a nice volume pattern, nice volume profile, light volume pullback. This is a ABCD pattern dipping down. You're looking for the break through the new high. I jump in right there and I ended up losing $3,930.12. As you might imagine, I lost about 10 times as much in my big account. Mhm, with bigger share size. Again, the recap for the big account is coming soon.

So, now I'm down 1,700 on the day on two trades. And at that point, um I sort of I I at that point I was emotionally compromised. Not because of the loss in the small account, but because of how much I was red in the big account. I was really frustrated. And uh we had another stock that squeezed up. I was considering taking another trade on W W ETO in the small account. Um I didn't. I did in the big account and it was not a good idea.

I'm glad I didn't in the small account. But then I took one more trade on ONF O. This stock starts squeezing up right here. And so to go through the five pillars, um you've got the price, which is Oops, sorry. The price right here, the float, um the relative volume, the percentage change, right? So, this was uh up nicely on the day. Um and this was a This is a US company. So, it didn't fit perfectly within the theme.

As you can see right here, um doesn't have news. So, no news, but it's a US company. So, I was a little bit, you know, not totally sure. Uh but nonetheless, uh I did take a trade on this and I bought the first pullback. Uh so, let's see. We had a ABCD pattern and I bought for the break through 450. And man, you know, I was able to jump in it and jump out of it for $855 of profit, but it was a close call because I had a big rejection.

And in my big account, I was not able to get out before the rejection. And I lost. So, again, the big account recap, don't worry, it's coming soon. So, as I sit today, I'm down $879.73, which is a negligibly small red day. Um I mean, it really it's it's it's tolerable. Um it's discouraging, perhaps, and it it shows, um you know, clearly today was not as strong as as a previous days this week, but, um you know, big picture, trading with smaller share size, um you know, reduces the magnitude of the losses, so that brings down the emotions.

Of course, if I was always trading in this account, um well, jeez, so this week I've only taken like four or five trades in the small account. I haven't been trading in it every day by any means. Um partly because I had this big loss last week in my big account. Last Friday, I was down 73,000 in my big account, so I spent the majority of the week rebuilding the big account. Uh which quite well. I was up $134,000 on the week before today.

How much did I lose today? Oh, anyone's guess. Uh you'll find out when you tune in to the recap. So, have I had I not traded at all this week and just did the small account, I would only be up like three grand. So, even in spite of today's red day, it's still absolutely um worthwhile for me to be uh focusing on my big account during this time and I and and trying to trade both when it's possible. Um today, maybe I shouldn't have done that, but I was feeling a little bad that I hadn't um uploaded any more recaps this week.

So, in any case, this is where I finished the week for uh the small account, but you know what I'm grateful for is that we've now donated to 45 children's hospitals across the country. That is a real uh exciting accomplishment. We've got five more to donate to. Uh each one getting $5,000. So, that's $25,000 more that we've got to raise for charity. And we'll do that through a combination of my trading and you guys hitting the thumbs up on these episodes.

And, you know, it's probably we're probably going to get there, um, you know, within another week, maybe a week and a half. Uh, there's a good chance actually we could get there by the end of next week if, uh, we keep seeing some really nice volatility in the market. Even though today wasn't, um, you know, a perfect day by any means. I think that, uh, part of that was because of my own, um, sort of getting caught up and fumbling between the two accounts.

So, in any case, um, thank you guys for tuning in. We're going to remind you as always trading is risky. My results aren't typical and there's no guarantee you'll find success whether you trade with me or you learn on your own. If you want to check out two-week trial over at Warrior Trading, it's $20. You'll learn a ton. You'll have access to a selection of classes from the Warrior Pro curriculum. You'll have access to the same scanners, the charts, and the newsfeed that I'm using every single day to find setups and to find the stocks I'm day trading.

And you'll be able to listen in at on my broadcast as I'm trading. And you'll see the good days, you'll also see the bad days. I put it all out there. So, thank you guys again for tuning in and please take it slow and always practice in a simulator before putting real money on the line.