Today's #1 Leading Gapper transcript

what's up everyone all right so in today's episode I'm going to break down the trades that I took this morning so as an active Trader my goal each day is to find stocks that are moving I don't make money buying a stock at five and selling it at five I make money when I buy a stock at 5 and I can sell it at 550 or 6 especially when I can do that within 10 or 15 minutes so what I want to do during this episode is I'm going to present the best trade from today in a little bit of a class format to to walk you through the steps I took from how I found it how I evaluated it where I got in where I got out and then I'll show you my results so we'll also go over some of the other trades that I took and um I'll comment on uh a couple questions that I saw in yesterday's recap so let's go ahead and jump in on the screen here step one I have to find stocks to trade so this morning aisp hits my scanner at 8:31 a.m. so the first alert was right down here and um let's see oops let me just go right there so get my drawing tool on so this was the first alert at 8:31 a.m. now the stock was priced at $28 at that moment only 25,000 shares of volume so very light on volume but it's popping up right it's just squeezed up it's up 26% all right it's um got an 18 million share float so for those of you that already understand my strategy and you've watched longer episodes I go into detail about my day trading strategy you're going to know why this is a stock that I was willing to consider although the float was a little higher than I typically would love at 18.71% on the day which at that moment made it one of the top percentage gainers in the market okay so I saw it very quickly which is great so my next step step two is to identify the catalyst so I have to check for news on the news feed so I saw right here that right at 8:31 a.m. there was news posted so Airship AI announced a significant Soul Source contract Award with the Department of Justice for Acropolis Enterprise video and data management platform I don't know what that is but that was the news headline okay now that's fine so now we know there's a catalyst and the little fire symbol means that the Catalyst has just come out like it's it's brand new it's hot hot hot okay so step three I pull up the chart I got to analyze the daily chart and figure out what the context is and the first thing I noticed on this stock is that oh this is a recent special acquisition company it's a recent Spa merger how did I know that in instant because spaxs trade at $10 a share almost exactly $10 a share the way a special acquisition company works is the company is formed with the sole purpose of acquiring another company they're going to acquire a company and make it a publicly publicly traded company so a special acquisition company uh takes on investors at $10 a share so I could buy into a spack at $10 a share it could be you know Spa XYZ doesn't matter and I don't even know what company they're going to merge with but I can put in my money at $10 a share buy a couple thousand shares or as much as I want and then when the news comes out that the company has found its Pro its Target to merge with then at that point I can decide whether to redeem my shares no I don't want to be in on this company I want my shares back at 10 or if I want to be part of the position and and hold shares of that company this is a strategy used to bring private companies into the public markets so like a company could come to Warrior Trading and say hey we want to buy you and we're going to merge you into this publicly trade company and then Warrior is going to be a publicly trade company from that point forward so in the case of this stock it was trading at $10 a share more or less because it was a spack which is they always trade sideways at 10 which gives people a chance to buy it or sell it sometimes they'll move up a little bit if there's rumors of a possible acquisition Target you know oh this company is thinking about merging with you know Airbnb or something really exciting stock will pop up even if the merge is not complete but in this case anyways they merge and the stock promptly drops like you know 85% okay it does bounce but then it sells off and it's just been hanging out down here at $2 for you know four or five months all right so the thing about this is that despite the fact that the float is 18 million shares this effectively is like a recent IPO and I like trading recent IPOs because number one they usually don't have a whole lot of trading history they don't have a lot of bag holders yeah there's some people here but the volume is very light so when these start to move they can make some nice moves and certainly if it gets over 10 we're in a blue sky scenario now um to add some context to that I'll show you um this chart here swi this one is a good example of a recent IPO IPOs it sells off and then it starts to move up and look at this this thing's all the way up in on $20 a share it's moving it's really moving quickly so so anyways um so when I saw it was a recent spack merger I thought okay I can discount the fact that yes it's got an 18 million share float I'm now okay with that because it's got a chart that has more potential than your average um than Your Average stock that we might see so once I've done step three step four is to pull up the level two and start to analyze whether or not I can take this trade so when I first pulled up the level two uh now of course the stock has a lot of volume but when I first pulled it up um the stock had just popped from $1.70 up to two up to 250 and then dipped back down I decided to buy this dip right here it bounced off two it came up it almost double bottomed it to and I bought as it came back up here at $219 so I took my first entry at $ 219 and my stop was at $2 which means I was risking about 20 cents a share now this popped up to about like 238 at 230 it pulled back a little bit I added right here and it squeezes up to 250 260 270 so that ends up being a pretty nice move uh in in fact it's you know I guess it it did give me more or less that 40 Cent winner that I needed for the 20 cent stop wasn't a perfect trade uh and the reason it wasn't perfect was because it did sort of do a little stop and go here before it pulled away and then there was big there were some big sellers on it which kind of surprised me but there were some big sellers there was one at 240 another 250 then there was another one up at 270 and then it drops here all the way back to 230 so my first goal as a Trader each day now look everyone's different my or my first goal order of business is to build a profit cushion so I'm trying to make $1,000 my first ,000 to get myself in the green get myself a little bit of a cushion now I know there are some Traders out there who will say you know Russ you've made all this money youve made millions of dollars trading why you just throw you know $50,000 on this trade and leave it all day maybe this is the stock that's going to go to5 or $10 a share while on the one hand I could in theory afford to take that trade I don't think of trading like that I feel like that is gambling I feel like that is speculative especially when you say why didn't just throw 50,000 on it and just let it run I cannot get my head around that I need to be in more control so I never leave a position when I'm you know I never leave the computer with the position open I'm actively managing it I'm monitoring it and I am being pretty aggressive to get in and get out and there are times where I can look back and see the bigger picture of like wow this stock I've traded from from $2 to $10 and I would have done better if I had just bought and held the whole thing but in the moment you don't know if the stock is going to go from you know in in this case a $1.70 up to 270 and then right back down and let me show you a reason why I might have that kind of fear so let me try to remember um what were some of the stocks that we had this morning so we had um let's see encp let's look at the chart on this one from this morning this one's also a recent Spa merger stock sold off and then popped back up let's see um my computer's been I'm having a little bit of an issue with this computer let me close some apps I'm not using um think I'm I'm I'm overworking my computer a little bit right now let's close some stuff down all right so uh so anyways this one goes to 740 and then comes all the way back down to 560 doesn't hold not even close um LV TX LV TX this one this morning popped up didn't hold right goes up comes back down so I made money on this stock we'll talk about this one maybe um in a moment after I go over sort of the the first trades on um aisp but I made money on this because I got in on the pullback I took profit and then I didn't overstay my welcome but for someone who gets in is like I'm just going to let this this ride this is a loser um let's see lipo this was a loser so this one this one pops up for like a fraction of a second and then dumps hard um BF loser another loser this one pops up drops back down it's like you know so the thing is after you've seen enough of these types of stocks even phun at the open uh loser pops up drops back down you see enough of those and you realize as a if I'm G to be a successful Trader when I'm up 50 cents or dollar share I got to pay myself I've got to take that profit off the table and you know what yeah Will some of them end up going to 20 and 25 sure and you know what I get back in I get back in here I get back in here this is how I was able to turn a $600 account into 10 million now if you want to turn a $10 million account into 100 million you got to take more risk you got to hold you got to figure out which one you want to hold for multiple days and yeah there's definitely a lot of money to be made there but it's a lot easier said than done a lot okay so so back to um the slide so first trade dip here at 219 get some profit as it goes up to 270 all right so I'm breaking the ice I first get myself up 600 on the day and then 800 and then about $11,000 it hit the high of 270 it sold off all the way back down to 210 it comes back up drops back down sideways comes back up tries again at 270 so I did trade it again in this area small profit nothing to be that excited about because it didn't really pull away sells off comes back up again sells off comes back up again and here finally we break through this 268 270 level so I took this trade and we got a nice pop up to 290 but then it drops back down and what I actually did on this is I bought this dip I said as long as it can hold over this level that's important it was resistance right resistance it can't get above it now can it be support because if it can be support then we're in better shape but these candles big upper candle wicks lower candle wicks pretty choppy to be honest I ended up taking a 12,000 share position at 290 for the break of three hits three drops down I stop out comes back up I get back in here you know it ends up working eventually and I was able to size up it goes up to a high 350 but I never really got myself big time in the driver's seat on this stock so my total profit on this one um and by the way after we had this macd crossover right here I felt like I had to slow down I did get a trade on this Spike right there but um in total my profits are $3,167 nothing to really be that excited about but I think what's more important here is I was trading the most obvious stock today I was trading the leading gapper the obvious stock in the market 82 million shares of volume as of 10:30 as of right now it's got 130 million shares of volume the flow has rotated six times we've got solid volume 2,000 Times Higher volume today than average it was the right stock to trade this morning now could I have traded it better yes um there are some things I probably could have done better on it um but overall I felt like I traded it quite well so you know it just wasn't the absolute easiest one so that was um so that was aisp now I did trade phun this morning I got a trade on it right here as it started to pull away look it broke through vwap I was hoping we' get squeezed up to 17 didn't work but I did take a trade on that one for a small profit I also got a trade on LBX on biaf n CP was a small winner and Co was my only loser I didn't trade Ocea um floats relatively low at 3 million shares but what's interesting on it is that it's very it's very thickly traded um the volume on it is 57 million shares of volume it's multiple days of momentum continuing higher so you know there were some traders that were focusing on this one um dtss also put in a pretty nice move today and by the way so this got pretty much parabolic here you then got a flush which gave a nice bounce back up to S 25 750 but now macd has crossed over this is the backside volume declining so that was probably the high for right now but a nice move up to nearly $8 a share um so that so that was Ocea dtss this one um halted up there was news that came out 10:45 a.m. halts up opens higher dip and rip into a second halt opens higher dip and rip up to 13 and then kind of unwinds kind of tough this is a time a day that's not easy for me I'm not usually still um focusing too much on trading I was getting ready to teach a class for warrior Pro members but nonetheless you know that that was a nice move you can't deny that a nice move there and a squeeze up to 1320 uh before it pulled back a little bit so that was good that's actually the leading Gainer right now at 87% so dtss aisp Ocea these two were Mo were both more after the open apge today too expensive so didn't trade this one price is too high Dave too expensive $33 a share Eva too cheap 74 cents Fe h it's a little cheap but the float's too high this one looks like warrants no volume on it 4,000 shares and then cmax yeah this one popped up some Traders were talking about this care Max but no trades for that on me for me so I finished the day at 4500 $ 4,594 yesterday was 5,500 so at about 10,000 on the week and about 15,000 so far on the month so you know the momentum is continuing these aren't the big big green days that I had um of the last you know few weeks that we had in February February was a terrific month but my daily average in February that put me up over $114,000 was about 6800 7,000 a day right now I'm at 5,000 a day average you know that's it's not coming from any individual home runs but base hit base hit base hit base hit base hit and you know small loss no big deal so as long as I can keep up this kind of trend keep my head down stay focused hit those base hits and you know build up a little little bit of momentum I'm going to have a great month of March so that's my focus right now just to stay focused stay green and not overstay my welcome so today it cooled off you know a little faster than I thought if we didn't have that one trade on AI you know it would have been a lower day but still I you know I broke the ice with a couple of Trades here and I still would have been up, 1500 bucks which um not as much but you know hey green days add up so that's the that's the way to approach it focus on consistency and that's what I'm all about so I just want to be consistently green base hits I understand that I am sacrificing a little bit by not swinging for the fences and trying to hold for multiple days or things like that but um except except for a few periods in the market I have found that trying to do that uh for me doesn't work very well so you know we've had some periods where the Market's been super super hot but more often than not we just see these terrible rejections and then we see shelf registration secondary offerings and so I just I don't have to worry about any of that I get in I trade I get out I make my money I'm happy with that so thank you guys as always for tuning in I hope you hit the thumbs up if you enjoyed this episode I hope you subscribe to the channel and I'll post it episode right here that YouTube thinks you're going to love so check that out and I'll see you for my recap bright and early uh I'll be streaming tomorrow and I'll upload my recap tomorrow afternoon