Oil and Gas Sector Stock Makes a 150% Move on Breaking News transcript

What's up everyone? Welcome to day 39 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. For those of you guys who have been tuning in regularly to the updates in this small account series, you'll notice the location has changed. That's right. I am on a little bit of an adventure here. I'm in the back of my mobile command center. This is a Sprinter van that I've outfitted with my multimonitors in the back.

I've got a Starlink mounted on the roof, solar panels on the roof charging batteries that are under the bench that I'm sitting on right now that allows me to trade from pretty much anywhere this 4x4 vehicle can travel to. I am in the wilderness in Maine. Pulled over off the side of the road right now um and found a good spot where I could trade. Locked up some profit this morning. taken my boys on a camping trip here to mark kind of the end of the summer, which is something we've been doing um for now four consecutive years.

This is my fourth year using Starlink and it continues to get better. The first year I used it, it was a little hit or miss. Second year still a little hit or miss and then last year was great and this year has uh been terrific. This is the second trip I've taken using it this year. So, we're going to break down my trades from the morning. Um, as always, all the profits from these small account challenges get donated to charity.

And every time you guys hit the thumbs up, you add an extra dollar to how much I'm donating. We have now raised over $480,000. And I've donated $485,000. Today, donating to a children's hospital in Puerto Rico and a children's hospital in Washington DC. So, we have donated to all 50 states, 50 children's hospitals across the United States, plus Washington DC and Puerto Rico. This was the goal and we have achieved it.

But I'm a little shy of crossing over $100,000 of profit in the account. So, as I continue growing the account up towards $100,000, we'll continue doing uh donations along the way. So, today's day 39, and we had one stock that was the clear leading gainer today. It was the most obvious stock and we had to be patient. We had to wait for it a little bit. SOT was the leader uh earlier in the morning. As you can see, it's up 65%.

However, it is a bit more expensive at $21.84 a share. And it was the price alone that kept me out. I just felt like for the small account, I wouldn't really be able to buy enough shares. It would just be too risky. So, I left that one alone. BTCT is a crypto stock. This one didn't perform well. Lucy's an innovative eyewear company. Ignoring that one. Um, none of these were really up quite enough, so I ignored them. Um, but XP came out with news right around 8 a.m.

And when it first popped up, I evaluated it based on my five pillars of stock selection. Number one, was it up more than 10% on the day? Yes, 150%. What was the relative volume? More than 5x? Yes, it was 81 times above average. Did it have a news catalyst? Yes. What was the price range between 2 and 20? Yes. Was the float under 20 million shares? Yes, it met five out of the five pillars. However, XP's headline was that they're going into exploration with um GA oil and gas.

And you know, that sector hasn't historically worked really well. Certainly this year has not performed well. So, when it first popped up, um it popped up and dropped down and I thought, yeah, no surprise. Then it pops up, has this red topping tail candle right there, and it drops down again. And I thought, "Yeah, no surprise." Then it goes up, tops again, and drops. And on that candle, the green one there with the big topping tail, I thought that was the high of day.

And then it pushed a little bit higher up to just under $7 a share, which is where I drew the top, the beginning of that yellow line. It then pulls back, dips down, and I was watching it in here for a curl back up, but we kept having these topping tails, and I just thought, you know, I don't know, this one's weird. And then ended up coming to, you know, basically a double top right in this area, sells off. Then it comes back up again.

And when it came back up again, it ends up going all the way up to seven, up to 750. little micro pullback, pushes up to eight, and I finally jumped in near the top of the move at $8. So, this is my trade. I got in right there at that micro pullback for the break of eight. And you know what's interesting is this order took about 4 seconds to execute. I bought 10,000 shares. Taking 4 seconds to execute is too long. It's 3 seconds too long.

Three and a half seconds too long. execution speeds should be instantaneous. And what was interesting was I pressed the buy button and I just watched this order fill slowly. 50 shares, 22 shares, 10 shares, 14, 2, 1, you know, 1, 1, 11, 12. I mean, this is like a very ridiculous way for my order to fill. So, it's like tick tick tick tick tick tick tick. And I just watch the shares slowly over the course of 4 seconds accumulate to 10,000 shares.

And then it broke through eight, which is what I was expecting it would do. It squeezed up to nine. I took the profit off the table. And I was like, "Okay, that was good." But that was also kind of weird. Why was that? Why did it take that long? Is it because I had a 10,000 share position? I don't know. But I ended up locking up 88 cents a share on it. $8,85.78, which was solid. And I should have called it a day right then and there, but I went back for it.

I went back in on the next pullback right here. Oops. Sorry. We'll close that out. I'll open it up again. So, I get back in on the next pullback. I'll show it to you on this chart here. Let me just move this over. So, the place where I got in was um we have this curl back up to nine right here. Then it dips down and I got in right here for the breakthrough 950. And the same thing happened again. I get back in and my orders tick tick tick tick tick.

I slowly get in. So, I'm in with this time 9,000 shares. It goes up to a high of 10 and I was looking for it to break 10 and squeeze up towards 1050 or 11 the way we' had this big candle here. I was looking for that nice big extension higher and we did not get that. Um, so that was a little bit discouraging. Let me put this back on full screen slideshow. So I'm back in here at like 950. It goes up to 10 and it drops back down.

And you can see here in this pullback I was holding because I thought, well, I'm still in the green. And then right here, it drops to 940 and I'm red. And I was like, well, let me hold this for a second and see if it pops right back above, you know, 950. And then it drops down here to 918. And I was like, h gosh darn it. I'm holding through a pullback. And then I finally cut it right here. I pressed the sell button at $9 a share.

So when it broke nine, I pressed the sell button. And I'll admit, I held that way too long. I should have could have gotten outbreak even, but I just got stubborn on it. But by the time my order filled, tick, tick, tick, tick, tick, tick, tick, I was filling at $863, but all the way on the way down. So, I ended up giving back about $6,000 of profit. Now, part of that was absolutely my own fault. I held too long. Uh, but I don't know why today my orders um were slow in executing.

Now, you could say, "Oh, it's because you're on your Starling." No, that's that. No, that's not it. The Starlink would create a slowness between me sending the order to the market and the market receiving it. The latency there, that could happen, but it wouldn't create a 4se secondond slow execution cuz once the order's been sent to the market, then it's the it's the broker that does the executing. So then that should just be instantaneous as it normally would be.

That's not limited by my connection. So, this execution on the buy side was slow. The execution on the sell side was slow. I got back in and then because it was slow getting back in, I was a little I didn't want to cut it unless I was sure it wasn't going to work. But then by the time I was sure it wasn't going to work, I think probably everyone else was too, including shorts, and we got this big sell-off. So, I'm a little discouraged to have had a nearly $9,000 green day and be sitting here today with only $2,500 of total profit.

On the other hand, $2,500 is still a solid day. And I don't what I don't want to do is go chasing, you know, and continue to trade and end up turning this into a red day. I want to be grateful for the $2500. It's not as much as I wanted, but I'm still grateful for it. I'm going to keep that profit and I come back at it tomorrow. So now I've got $85,000 in the account, $15,000 away from the goal. And as you can see today, even just the fact that I was up $9,000, you know, for a moment there, I I really could easily cross over $100,000 with one or two more good good days, good trades.

It could happen tomorrow. You know, it could happen very soon. Uh, previously in 2017 I turned a account with $583 into 100 grand and I did it in 44 days. So it took 44 days to do that. This time I took $2,000 and I'm turning it into 100 grand. Uh, but I'm not using leverage. During the last challenge I used leverage which allowed me to grow the account faster. So slightly different challenges, certainly different markets.

Uh but sort of similar timeline here coming in, you know, right around 40. Tomorrow will be day 40. So, you know, I I don't know. I mean, it would be who knows, maybe it'll be another 44 day um you know, a challenge. Um which is I I guess it's very possible. Four more days, you know, $3,000 $4,000 a day. I mean, that that might be it. On the other hand, I might have a $15,000 day tomorrow and boom, challenge is done at day 40.

So, I I don't know. But that doesn't really matter. That's sort of aside from the fact that I did give back too much profit today. I'm a little discouraged that I did that and my order execution was a little um slower. Uh and I think part of that is because I'm trading with larger share size as I'm getting further into the challenge. And something that we've discussed is that um you know generally the way I think about it is that um commissionfree brokers um you know like Schwab and um uh and Weeble are excellent at um you know when you start with a small account and for the first you know for the first period of time as you're growing it because you don't have to pay any commissions.

But then at a certain point, what I found is that you actually start to get diminishing returns uh with these uh commission free brokers when you try to take too much share size. And that's where the direct access brokers kind of pick up. The direct access broker with small share size, you're going to lose money. But once you start trading with bigger share size, you know, you can I've at least been able to scale my profits quite a bit faster.

So that's something uh to keep in mind and we'll continue to discuss as I um continue growing this account. With that, I'll remind you guys as always um that if you want to check out twoeek trial, there's a link pinned at the top of the comments where you can watch over my shoulder for the rest of this challenge or for two weeks. Um either way. And uh as always, my results are not typical and there's no guarantee you'll find success whether you trade with me or you learn on your own.

So, please manage your risk and always practice in a simulator before putting real money on the line. With that, I'll see you guys back at it first thing tomorrow morning at 7