THREE (3) Penny Stocks Up 100%+ transcript

well it wasn't a wild card Friday but we did have three stocks that went up over 100% today which is not bad so when I first sat down this morning and I pulled up the scans on my phone I saw that leading the Gap scanners were penny stocks these low price stocks which you know I I'm just I'm not tuned to trading them because for all of my years I've never done particularly well on these low price stocks it's not just my opinion that I don't do well it's actually in the data if we look at the price in the volume you could see on stocks under $2 this accounts for less than 2% of my total profit which is over 10 million all right so I don't make a lot of money on cheap stocks when I saw once again that we had these low price stocks on the scan I was like oh boy so first one today that was up over 100% spec SP this one was kind of interesting because it actually started the move after hours and it was explosive after hours this thing goes from 35 cents right here at like five o'clock all the way up to 85 cents it pulls back goes sideways breaks out at like 7:00 here pulls back and going into 7:30 745 it's hitting the pre the after hours high and then we go into just a little bit of pullback for 8m so this thing actually broke over a dollar this is pretty impressive it's not every day that you see a stock make this kind of move at that time of day so all right huge move after hours and I am sure there were people that were buying this hoping for a gap up and a continuation up to two this morning but what's interesting is that at 400 a.m. slammed down high volume selling and that's 600,000 shares there in the first just two minutes so definitely Traders are ready to sell SP so let's pull this one up um and get a little bit more detail on it the float is 3 million shares as you could see right there when we look at the daily chart you'll see that this is a history a stock that has a history of some nasty red days I would actually grab this would be worthy of grabbing a screenshot because if you see this kind of price action this is a stock that you just know and I'm going to grab a screenshot of it right here I'm going to go control let's see there we go you just know that this type of stock has a very high likelihood of failing once you sort of learn the behavior of some of these you just you leave them alone cuz it's not worth it all right so I'm going to add that one uh there to my slide deck I'll talk about that in my next class so a terrible daily chart all right so that didn't help it go over to stock quote scroll down and you could see right here I was checking I was trying to figure out what's the catalyst so we had um yesterday at :07 p.m a um in 8k so we had news that was filed that came out and when I first pulled it up I was just like a little bit confused about it because um it's a um they entered into an agreement with um I don't even this is a law firm um scen scadden I've never heard I don't know I've never heard of them but anyways it's a law firm agreed to adjust and defer payment of legal fees incurred by the company in amount of $6.2 million holy smokes so agreed to reduce the fees to 2.7 million okay and 2.37 is payable in cash so it's like I don't know I'm just and then some of it's in the form of common shares in the company I don't know so I just sort of thought you know that's kind of a funny headline um it just didn't feel super you know strong to me and I try not to be too bias when it comes to headlines cuz look if the stock is moving up ultimately I'm a technical Trader I'm going to trade price action but when I saw that headline I was a little skeptical so I think probably evidently other Traders must have felt the same so there was kind of like a lot of hype as it first starts popping up and people are like whoa this thing's going crazy and then you know markets closed 4:00 a.m. we open and we're selling selling off pops up sells off more pops up sells off more tries to kind of curl and at 7 a.m. this is when people who are holding from after hours dump they sell their shares at 7:00 a.m.

M and it just goes lower so spec it was up 100% but didn't get any trades on it didn't end up holding up very well okay next trade ARB ARB this one I traded and it's a low price stock as well so American rebel Holdings um on this one we let's see um we had a distribution agreement with the state of Connecticut ah you know I don't know I mean all right so that's our headline there and it basically took off and went crazy this speaks to the fact that there's so much exuberance on these lower price stocks right now 30 cents it goes straight to 80 cents basically the same as spec right goes straight up here it does pull back a little bit here and then it comes back up coming into the um sort of during the opening range I got in at 70 cents so I took a position on this at 70 cents right about here squeezes up to 80 pulls back goes up to 85 goes up to 90 pulls back comes up to about a dollar wasn't able to get over a dollar here's something interesting let's look at that 200 moving average this is actually another one to grab a screenshot of because this ran into that 200 moving average almost to the penny all right so let's grab screenshot of this guy here so this is an example it's not a bad daily chart but we just know that we've got that 200 moving average um level of resistance here so I'm just going to paste this in here 200 EMA so 200 EMA resistance all right so what we know is that a lot of these stocks if they're extended coming into that level they run into it they're not able to break now I will say that kavl last week was really impressive because it came up to the 200 expected resistance and this thing blew through it but that was actually kind of what made it so special um so it comes up to that 200 right there it pulls back it goes over it and I don't think people were expecting that and all of a sudden we got that squeeze up to eight okay today actually by the way speaking of kavl you could see big gap down so what was the deal why is the gap down secondary offering so they priced the $6 million offering here at a153 so got the offering on kavl we thought that might happen because there was a shelf registration I think amended or updated or filed last week so that was kavl no on that one uh so ARB was our second stock to hit 100% today it's still sitting at up 60% then we had nxl nxl third stock to go up 100% Today this one honestly I didn't even this one kind of came out of left field I don't know what happened here look at this volume basically like nothing and then a million shares 3 million 5 million look at how volume just came out of nowhere let's see let's just check to see if there's a catalyst there so it went from a do2 a133 up to 280 um let's see so yeah I let's see so what time was that um I saw it out of the corner of my eye it was about 11:00 a.m.

I don't know what sent this I don't know I don't know what this one was about um this isn't it this is just a transaction it's not even a very significant one so you know I'm not sure what this was about it just started taking off and squeezed higher um it it is a stock that's been in play a little bit this week as you could see here we had this day I guess it was the end of last week couple of days sideways popping back up and then pushing higher here all right so now my profit today traded two stocks locked up uh $1,662 84 cents of profit on minm and the small trade on a ARB I took with small size and I sold it too soon which is fine I went red on it came back up and I got out mm was the one that I did the best on uh but you know what's interesting today is uh after yesterday's kind of close call I sort of today felt like maybe I shouldn't push my luck too much uh minm to be honest it surprised me I would actually say you know this is an example of this is an example of not a great chart if we grab a screenshot of this one it's really not terrific you've got this U daily history of these nasty false breakouts which you can clearly see it doesn't hold those levels lots of big red candles topping Tails so this morning a couple people mentioned it early they said oh minm it must have been like right in here when it was popping up just a little bit to like you know 340 they said oh you know take a look at this and I took a look at it and I was like I don't know guys you know you've got the 200 moving average on this um crossing right at 387 so 200 moving average right here at 387 uh you know it's I don't know it's got a 1.3 million share float but I didn't see a clear Catalyst for it so I just sort of felt like I'm not sure you know I don't know if we're going to get anything on this but then it's kind of crazy all of a sudden it pops up and it goes from 350 right here it rips up 350 all the way up to 375 380 to 4 and when it did that I said you know what I'm just going to take a starter I bought 2500 shares at 4 the thing goes to 480 I'm up 80 cents a share on 2500 shares I was like holy smokes so let's just see what this does instantly it drops back to 380 and then it pops back up and I got it out at about 420 so I made $500 on that first trade on 2500 shares and I just was like wow that was that was kind of wild that was a big topping tail I don't know sellers came in let's be careful with this so then we see high volume selling it comes back down I'm sitting up 500 bucks on the day so you know I'm like I don't know not really sure uh towards the open it curls back up right here and um let's see so let me go back here so the first trade was 396 uh added at 409 and 424 got out average at 417 I guess about that um then I got back in let's see so this wasn't this was back closer to 930 all right so around 915 it breaks over volume weight average price and right here I was like I don't know you've got the 200 moving average right around 387 on The Daily we just had this big pop it didn't hold that level I don't see the catalyst is this really going to work so I said I'm not going to touch it ends up going to 390 it pushes to four it drops down pops back up drops back down pushes up pushes higher drops down and right in here there was a 20,000 share seller at uh 410 it was actually it was 410 it was right here so we broke over it we come back down and I said you know what if we're going to hold over that level I'm going to buy so I got back in right there at 410 it squeezes up to 430 440 I got out at 448 going right into the open that was a nice trade I was happy with that so so then we have a pullback it does a little bit of Chop look at these topping tail candles topping Tails topping Tails topping Tails just that chop is ridiculous uh but I did take another trade in here getting in at about 450 for the squeeze through the high and we hit a high of 480 before flushing down and anyways I just took a bunch of small base hits on this I probably took gosh let's see well I'll count them out all right so I've got one trade there I've got two five 6 seven trades seven trades on this and yeah seven trades and actually I think they were all winners I don't think I had a losing trade I had some trades where I added a little high and I made profit on the trade in total but I I had an ad that was too high but I think all seven of those trades uh were winners and then a small winner on aerb so accuracy today was actually pretty solid but here's the thing I got to a point where I was like you know what honestly even right before this trade I was up 900 on the day and that was after six trades on it so I was like you know I'm my average winners right now are tiny like I keep getting in this thing and it goes up like five cents and then there's a big seller and it stalls out and then it dips I buy a dip and it pops up and I'm up like a little bit and then again so after that happened and I have six small wins I said you know I better be really careful here because if I get in this with too much size I could lose all of that in one trade and it's gone and then seriously like a moment later I see some green on the tape I I basically to be honest got sort of tricked from the from the level two there's this big burst of green kind of like what you see here and I was like oh here we go I think we're going to snap through this level get in and where was that um I can't remember I mean it was it was right here it was because I sold when we had this candle that popped up I was hoping for a squeeze to five but um I can't remember if I might have gotten in on this candle here and it dips down and I was like uh oh you know I'm unrealized red here 20 cents a share and then it comes up breaks through 70 I'm like there you go but it stalls out again and I just got out and I was like you know what you're done with this one this is it's it's only a matter of time before you get you catch a jack knife and you catch a big loss so looks like there was a little bit of a rejection there anyways you know got a little got a little profit today don't want to overstay my welcome too much um one thing that I'll say right now I was just noticing this um so let's see so right now it's let's go let's go back to we'll do we'll do year to date so year to date we're coming towards the end of June I'm sitting at at $258,000 in profit so far on the year let's just take a look back at where I was at this same time last year just for you know year-over-year comparison let's take a quick look so year-over-year last year at this time I was at a very like disappointing $126,000 for me disappointing for me I you know look a grand scheme of things this isn't bad but look at this the commission 36,000 this is net 111 in a commission sorry 11,000 so I had fees and commissions of $47,000 as of right here last year so you know we'll go back to year to date here year to dat right now I'm at it's similar it's it's actually very similar but you know what the net profit is twice as big so why is it twice as big let's just copy paste this so it's twice as big because the average winners have to be higher all right that has to be the difference so let's look so average daily gain 1,200 last year average daily gain 2,300 this year average um 62% accuracy this year last year 64% so accuracy was a little higher last year I was actually noticing that accuracy is a little low right now um let's see average I'm going to look at the average winners um where is it they rearranged this um average winning trade 624 this year average losing trade 6 13 last year 413 500 so I mean you could just see like how different two years can be now I'm not going to compare 2021 or 2022 because or or 2020 because those were covid years so those are going to skew everything but let's look at 2019 for a second so 2019 I was at 270 all right so I was a little further ahead than where I'm at now ecn fees were a little less commissions were darn near the same average winners 870 average losers 1,000 1100 those are a little bigger accuracy though was 71% so you know it's just the different ways to cut the uh the the pie or skin the cat I don't know how you want to say but um 2018 was at 282 right average winners 1300 average losers 2600 or uh sorry 1,200 ecn fees were quite a bit lower in 2018 2017 this will be interesting um 115 right so 2017 that was lower see 2016 2016 here uh 81,000 so you know I mean the cool thing here is you've got 16 17 18 19 20 21 22 23 24 nine years of historical data so I like being able to kind of look back and do these sort of gut checks and so you know what I'm seeing right here is that I am 50% ahead of where or actually I'm double I'm up 100% I guess year-over-year so if we were gonna if we were going to announce my uh my Q2 earnings here like I was a publicly trade company in a small cap we would say Ross is up earnings 100% up year over-year right these guys they get so excited now it's not a lot of money but you know look at the end of the day it adds up every single day showing up every month showing up this does add up that's how you know over the course of a decade you accumulate up to1 million you just got to keep showing up every single day and the fact is you don't know when the Market's going to go crazy you don't know when there's going to be a dot bubble or there's going to be a pandemic or something insane will happen so you get keep showing up every single day you keep learning you try to keep improving but the reality with trading is that not every year is going to be better than the last it's uh that is a myth um you know to think that you're just going to sort of like every every year you're just going to make the same amount you know that amount plus 10% plus 10% it's just not like that with trading you're going to have some years where you know the markets you you do this much this year you do this much the next year then you do this much and then you know this much and then back to this much and then you know a couple small years and then you have a huge year so this is what we signed up for right now if you can handle that then trading is for you if you want that consistency that guaranteed income well day trading it's not going to give it to you so you just got to be willing to kind of go with the flow and when it's hot you know ride those waves momentum try to lean in dig deep get aggressive but when it's cold ease off the throttle slow down and do not overstay your welcome so you know something I've been talking about and thinking about is the role that commissions play in my trading last year I was feeling uh I was feeling really frustrated at the end of last year because last year I spent uh so much money in fees and commissions I just felt like you know it was so this was my this is my net so my gross so I made $389,000 you know it's 400 Grand that I made trading but I had to give 63,000 of that to my broker for ecn routing fees and another 20 grand to them for fees and commissions so or just commissions so I mean this is they basically made $80,000 just off of me one person think about that for a second I mean 10 Traders like me and they're doing like almost a million dollars a year in these fees that they're pulling in they've got a 100 Traders it just feels it feels like a lot and it feels to me that that that's too big of a percentage historically paying 10% you know okay so 10% would be 38,000 paying 15% all right you know you're at 45,000 this is $80,000 paying 80,000 that's in ex that's like 22% of my profit just like back of the napkin but 22% that's kind of dumb this year year to date I'm at let's see so my I'm at 309 but we've got 40 so we we're at 50,000 so yeah we're already at 15% we're I mean we're at 15% right now a little a little above 15% and you know if I can keep that in check it won't get too much higher but listen I had some days just this week that were out of control right we look look at this day so this was this was gross so let's look at this day right here this day right here I had um $1,115 in fees and commissions it was a green day but not after fees and commissions red 858 bucks right which just kind of dumb it's stupid it's frustrating so anyways um I'm I'm going to do some shopping around and you know over the years in 2019 I tested different Brokers and I was still happy with a broker I was using I tested free commission Brokers I used um E Trade I used amerit trade and I think I used one other I've used interactive brokers before I've used Fidelity before and I've kept coming back to being happy with the broker that I'm using and one of the things that definitely is great about it is the platform is reliable and super fast it's not glitchy it's solid platform and you know if I look back on everything I've made and most of it's been with this broker or a broker that was comparable and I paid commissions on I can't really you know can't be too upset I made some good money um you know but in total I've paid $1.4 million in almost 1 5 million in fees and commissions over the last 10 years right here or eight years whatever it is so you know that's but that's 10% right on 11 million and this is 11 million net so actually it's a gross is uh 12.7 million net is 11 so that's where big picture it's been like it was fine but it's the last year where it was really bad and this year is still pretty bad and I'm just starting to you know at times get frustrated about it because it it's preventing me from Trading some of these low price stocks that's one of the reasons I typically have avoided the penny stocks they just the commissions are insane so anyways it's something that I'm thinking about I know a lot of you guys use different Brokers um than I do just because they're easier to set up it's a lot easier to set up an account with Robin Hood or thinker swim or E trade or Weeble or whatever than you know these Brokers that um are kind of like more catering towards professional instit tional Traders but yeah I don't know I I just wonder if the um if the competitive advantage that those Brokers had years ago is kind of dwindling that their value offering just isn't what it used to be I mean I think there's no denying it's not what it used to be since 2019 so I don't know I'll at some point this summer since the Market's you know a little I mean it's not bad but it's not crazy hot maybe I'll spend a couple weeks um doing some research and check checking out some different brokerage accounts and seeing if there's other platforms that uh you know more or less give me what I'm looking for but address the the commission issue so anyways that's it for me I hope you guys have enjoyed this recap as always hope you hit that thumbs up subscribe the channel I'll remind you that my results are not typical trading is risky so man your RIS take it slow and I'll see you back here bright and early for uh the next upload which is actually going to be coming tomorrow so make sure you stay tuned for that and I'll see you guys real soon