The TREND TRADING Day Trading Strategy (Millionaire Traders LOVE This) transcript

in today's episode we're going to talk about momentum Chasers and I'm going to share with you the techniques that I use to figure out what I should trade on a day when there's a ton of stuff moving all at the same time and a lot of it looks really good now it doesn't matter if you're trading forx pairs you're trading cryptocurrency futures or you're trading stock like I am there will be days where maybe as a result of some type of news Catalyst in the sector within a particular instrument or just in the global markets there's a lot of volatility and a lot of opportunity and you know today a day where I saw some Traders do really really well and I saw other Traders struggle they struggle to jump from instrument to instrument as attention was shifting but that's exactly what was happening in the market we would see one stock that made a huge move and then it would fade and then the next one comes up and then the next one the next one so chasing momentum is something that's been around literally for Generations it's been around for centuries the concept of Chase in momentum is the idea of seeking out profit by jumping on a current Trend and so back in the 1600s we had tulip Mania in the Dutch golden age when the price of tulips were skyrocketing and that ended up being a bubble but there are investors who made a lot of money during that bubble because they were chasing opportunity you really can be one of two things in the market you can be a trend Trader or a counter Trend Trader I find it it to be a lot easier to join the trend and to trade in the direction of where things are already going so when we look at my p&l today you're going to notice that I actually traded 14 different stocks to come out to a total of $1,327 39 of profit that's a lot of trading no doubt about it but I think this is a really good case study because I'm going to exemplify here how I was able to master jumping from stock to stock to stock and essentially being the embodiment of a momentum Chaser now some people are a little critical of this term Chaser chasing in terms of the general Trend I think is okay as long as you're managing your risk that's what it comes down to chasing momentum to me means you're jumping on the trend that's already established and that is a proven strategy that Traders have been implementing literally for Generations so let's dial in here now why did I trade so many different stocks well we can look at the stock on the chart right here this stock went up 100% today over 100% from $4 up to 750 but then you can see after it made this big move it kind of rolled over and pulled back we'll analyze this chart in more detail in a few minutes but let's jump over and look at a couple other charts so the way I set up my monitors my main trading screen is uh this is the screen that you can see on my screen share while I'm streaming for all of our members at Warrior trading you see my p&l if if I'm in positions if I'm out of positions and you can see my charts you can see my scanners now on my bottom window down right below which is my laptop screen I actually have my uh trading platform so this is where I have my level two window which is right here and this is showing all of my actual order entries where I'm getting in where I'm getting out so this is the screen that I record for our live trading archives on my second monitor over here I guess it's my third monitor I have two stocks that are on watch this right here is a 1 minute 5 minute daily and 10c time frame for the stock nexi nexi is a stock today that if we look at the chart went from $2 a share to seven bucks so yes I traded it then we have this stock here Ford so we've got again 10c 1 minute 5 minute in Daily time frame for this one stock and this one went from $4 a share up to nearly $9 a share another 100% move now we jump over to my fourth Monitor and we've got a couple other stocks I've got on watch so here we had bdrx went from 80 to $160 a nice clean 100% move and then we had lcf y this was today's record from $2 a share to over 11 bucks this went up 385 in one day okay so what we ended up essentially having happen today was it felt like we had a week's worth of momentum all clust clustered into one day why does this happen well I've actually noticed a phenomenon in the market and we can look back at my metrics here uh let's pull up let's see the month of February just as an example so I love tracking my metrics here because this allows me to really get detailed into my analytics of where I make money where I lose money what I need to lean into and why I need to stop doing completely so if we go back here we're going to go to reports and we're we're going to look at let's see we're going to do year to dat so uh year to date right here we're going to refresh that and we're going to go let's see month and year and we're going to jump into the month of February so let's see we'll do calendar all right so February right here this is a month where momentum really picked up you can see I actually only have one red day for the whole month of February started you know pretty nicely that first week $1,500 of profit the second week was solid and then look at this third week right here of February $9,000 on the 12th 18 on the 13th 20,000 on Wednesday the 14th today that day uh I missed because I can't remember what was going on but I missed that day of trading completely I was out then 12,000 on Friday the 16th and then this was President's Day and then this was Monday the uh Tuesday the 20th so it was like $60,000 $70,000 in like six days so we had this little cluster of momentum and what I've noticed for me with my trading is that I'll have these green days and then all of a sudden the the big green days get stacked together and then it slows down and you know what usually happens here is if I'm not careful I'll have a big red day and then this is basically when the hot streak ends and a cold streak begins and now during the cold streak these green days usually are recouping this loss right here until the next hot streak begins but it's true that hot streaks are usually clustered together so what we ended up having happen uh really so far this week has been momentum all of a sudden has been really hot and in fact I think this all kind of began back in May it was it was really in May and in June with um the Resurgence of GameStop you know GameStop was back in the in play with Roar and Kitty coming back and and posting on social media that continued into June and then here in July I I mean this was uh $33,000 on the week before today's 11,000 so this is a $44,000 green week right here right it's probably my second biggest green week of the year and it's in four days so literally here in 4 days I will have made more than I might have made in the entire month of January for instance all a sudden Mo momentum is hot the Market's hot and we're seeing opportunity after opportunity after opportunity so what I noticed happening was um back on Wednesday so about a week and a half ago a week and a day ago we had one stock that made a really impressive move and that ignited this current round of momentum that was the beginning so let's go back and look at that day that was uh Wednesday right here the the third and so the stock in question was uh cost Koss um this is a stock that has been a meme social media Reddit favorite uh and remarkably we had this move here I'll zoom out and show you the five minute chart where this thing in over the course of two days basically goes from about $4 a share all the way up to 20 bucks this was incredible and then the next day it pulled back but it came back up again it gave another move I think that got the fire started now once that begins what happens there is a shift so we're going to talk for a second about the shift between cold markets and hot markets and then I'm going to share with you the technique that I use to capitalize when the Market's hot and we have all these stocks moving at the same time so the shift occurs typically with an event it's a catalyst it's it's one stock usually that makes a really big move and what that suddenly does is it catches a lot Traders by surprise a lot of Traders like myself who are long biased traders meaning we profit when stocks go up may have been sitting on the sidelines and you know a little bit of a slump right here not taking necessarily a lot of risk just kind of you know chipping away hold holding it together nothing crazy and short sellers traders who profit when the market declines have perhaps started had the inverse experience where their p&l uh could be perhaps almost exactly inverse where having big green days when we're having um slow days and then we're having big green days they're having slower days so you sort of have this inverse now you might think gosh wouldn't the perfect Trader just be able to do a little bit of both and just like as this looks a little chaotic it's a lot easier said than done to flip long short long short a lot of traders who end up doing that end up kind of getting analysis paralysis and and losing money making mistakes so sometimes it's better as I said in yesterday's class to be a master of one setup one strategy before you try to spin off five six others so what ends up happening is you have this stock that ignites a round of momentum short sellers are caught by surprise and can end up experiencing some really big losses and that ignites a short squeeze where when they're negative on the position they now have to buy back shares at a higher price and that pushes a stock even higher and that's where all of a sudden one day we see a stock that goes from 30% to 50% and Traders maybe are like ah well that's good but let's see what it does next thing you know it spikes up to 100% now it's up 150% 200% and now shorts are feeling the pain and Longs are starting to see something breaking that standard deviation starting to get a little excitement so now we jump in but a little cautiously because we've been burnt a few times in this last cold streak so we jump in cautiously but it's really the short sellers that ignite that move now what happens after that is there's a shift in sentiment in the market traders to the long side are starting to feel a little bit of fomo fear of missing out those who missed that big move like cost so traders who missed this big move on cost start to feel a little bit of fomo right they're like oh man that I didn't expect that I didn't see that coming at the same exact time shorts are being to feel like ooh I just began you know I just had my first big red day I better slow down and be a little more careful we're starting to see things shift and what then usually happens is the next stock that has a similar setup that maybe is a similar price or has a similar type of catalyst gets a lot of attention and then you have the beginning of this round of momentum so when we look at my uh calendar here we had uh so we had Wednesday where we had this really impressive move sorry let me put my calendar up so we had this really impressive move on Wednesday and then we had the market closed for the 4th of July so it just happened to be around a holiday uh Friday was actually a little slow um it wasn't it was kind of surprising but also a day after a holiday not too surprising and then Monday morning we get zap zap so zap this isn't a stock that uh is NE is really super related to cost in any way but you can see this thing it began the move on let's see so it's actually started moving on the same day as cost but it continued moving higher so the fifth it was a little slow and then back mon that Monday it starts to pick up and it makes this huge move pre-market from 5 to 7 it pulls back and then it pushes higher and higher and higher it ends up going all the way up to $19 now it didn't do it in one day like cost did but it just kept sustaining this momentum so all of a sudden we get this really big move here on zpp and then that I think just reaffirmed for short sellers that now is the time to lay low hunger down and just wait until things really roll over before going short and now long Traders are experiencing so much fomo and so much excitement they're jumping into every stock that's popping up so typically these cycles of momentum will Peak with days like today where everything that hits the scanner is just getting that much more attention because short sellers are cautious to short anything and long buyers are jumping in quickly and some beginner Traders maybe haven't learned that you can't just jump into everything that pops up and expect to make money maybe you could do that for a couple of days in a really hot Market but longterm that won't work so in this stage right now we're kind of in the the middle or later stage I think of a hot streak where everything that pops up is getting attention and that's going to work until we get a really nasty rejection and once we get a really nasty rejection shorts are going to come back in with stronger sentiment and Longs are going to start to get a little nervous now what surprises me actually in some ways is that we didn't experience that more uh this morning because LG VN yesterday this was one of the stocks that we traded and and did quite well on but as you can see phenomenal move from 80 up to 720 yesterday but then by the end of the day it had really given back almost all of the gains so it kind of felt like you know on the one hand was it strong yes it was but on the other hand it didn't hold up super well now another stock yesterday that I traded uh and I actually traded this after my recap yesterday was ivp ivp ends up squeezing up here to 950 from you know 350 in the morning so this made another really big move but did it hold up well as you can see by the end of by the end of the trading hours at 8:00 p.m. it had pulled back 30% off the low and by the next morning here it was already down almost 40% off the low and it's continued to sell off so after seeing those moves I was a little cautious this morning in in wondering you know whether or not yesterday was perhaps sort of the the end of the road but yesterday I will acknowledge we also just had a lot of stocks moving up yesterday we had vvpr this one made a really big move um you know I mean overall from $4 up to six nearly that was impressive Naas this one made a big move yesterday right we're looking at these charts A180 to $6 sometimes it's hard to get the the scale but these are really big moves we had GX AI this one uh I don't know if this one held up super well no this is more of one that kind of popped up in reversed but still I mean it popped from $3 to almost six it's like a 100% pop before It reversed then we already looked at LG VN we had atnf this is another one so like you know we had a lot of stocks yesterday that made big moves or in the last few days and then pulled back so I was kind of concerned this morning about whether or not we were going to see continuation so my first trade the day today was actually vlcm so this morning when I first sit down my routine and and kind of my workflow is that I pull up my phone in the morning and I check the scanners on my phone so the software that I'm using as you guys probably well know is day trade Dash this is software that I developed with my own development team and it's available for our members at Warrior trading you can sign up just for the software or if you're a warrior Pro member you can get access to the software in addition to the education so I pull up the scanners on my phone and I saw that vcn was the leading Gainer and what I noticed about vcn immediately was that the float was showing 200,000 shares so I was like wow this is a crazy low float stock and what we have noticed in the last few days is that some of the biggest moves have been on stocks with floats of under a million shares this is where we've seen some really exaggerated squeezes so if you haven't watched some of my episodes where I talk about stock selection I'll give you just a 90 second refresher so what I'm looking for when I'm I'm personally searching for a trade I'm a momentum Trader and if you want to say a momentum Trader or if you want to say Chaser that's fine so like a stormchaser those of you guys who have seen uh twister right stormchasers searching around looking to get in the middle of a tornado well here we are momentum Chasers we're looking to get in the middle of some serious momentum and volatility and we're going to try to capitalize on it so Momo Trader Momo Chaser however you want to call it so I'm looking for stocks between 2 and 20 price range I'm looking for stocks that are up at least 10% on the day with five times relative volume I prefer a news Catalyst although asri if Hot Market if the market is hot then sometimes we will see big moves even without a clear Catalyst and number five I prefer floats of uh under 20 million shares but I know that lower is better this is uh Supply right here float represents the supply and this all represents demand so the imbalance between supply and demand is created and that's when we see these big moves so when I saw vcn on my scanners I thought oh boy you know this looks pretty good and that was right about here pre-market so on my very first trade on it I sat down and I jumped in at about 680 right here and I was looking for the break through $7 and it squeeze up to 720 I get I get in at 680 I get out at 7 I then get back in at 750 and I add at 765 and 775 and I'm looking for the squeeze up to 8 I'm starting to feel pretty confident and you'll see what happens is Boom it comes back down so I actually went red on that first uh that first stock vlcn and I'm still read on it today I didn't get married to it I didn't hold it I'm not still holding it thank goodness if I was still holding it I had 10,000 shares so if I was still holding it I would be down right now you know almost $30,000 it's not worth it to hold these you've got to be ruthless about cutting your losses move on Let It Go I get out with the Press of a button I'm out of that trade so I let it go and you know at that time I was like all right well you know yesterday was a little cooler than the previous two days Monday and Tuesday and here I am starting the day in the red by $4,000 or three whatever it was $3,000 I was like this is not a great start but but it's early so let's see what happens now in a hot Market I'm more likely to try to trade longer at least until I'm seeing profit once I'm seeing diminishing returns then I'll stop trading but as long as I'm seeing good opportunity I'll trade earlier in the morning and I'll trade till later in the uh morning or the afternoon so first trade on vcn broke the ice and we get this big flush second trade was on Cyn Cyn this stock pops up right here and this was incredible it went from $4 down here all the way up to five to six to 650 up to 7 it pulls back and then rips back up here to 750 and here's what happened essentially vcn when vcn rejected when we had that nasty flush the chart was kind of ruined from a technical perspective for those of you guys who have gotten good at reading Candlestick chart charts you're going to know what I'm talking about if you're not already good at that check out my other episodes on how to read Candlestick charts beginner's guide or starting from zero these are some really good episodes so as I looked at the chart on vcn I just thought man this chart's broken we've got this you know high volume rejection we've come all the way back down here I don't think it's going to work you know we had nice volume on the buying but just for whatever reason we got a big rejection now why did this fail in spite of low float and high and I couldn't really say some of these will hold up really well and do great and others will sell it could be insiders that are selling it could be the company that's selling we don't always know but the fact is with these red candles I felt like the chart was broken and so even though at the time it was still up 100% nearly on the day I started looking for the next stock that was moving and I knew that I wanted to try to get in at the beginning of the move if possible but here's something that's challenging what you're going to notice on a day like today when the Market's hot are lots of stocks hitting this scanner right here so this is my high of day momentum scanner and it's showing all the stocks that are making new highs and it's got the time stamps on it and there I mean there's hundreds of alerts on this during a day like today because there's lots of stocks making new highs and a lot of Traders are going to be jumping on each of them you can see right now bfrg has just made a move from $1.70 up to 240 while I've been teaching this class so missing this and that's fine but this is another example where Traders are jumping on it does it have a clear Catalyst nope floats 5 million shares it's got 500,000 shares of volume it's up 50% Traders are jumping on and this is generating momentum and now the fact that it's up this much by itself is its own Catalyst but the problem is a lot of beginner Traders are jumping on these stocks that have no volume they have 10 10,000 shares 15,000 shares so there's really no volume and if there's also no clear Catalyst like breaking news it's really hard to know which of these are going to kind of ignite each of them are a small spark right a little pop but which one's going to gain attention which one's going to go into a flame and and it's really hard to know because you can have dozens of stocks that pop up that all look similar and then just but only one of them ignites and goes up 100% why that one and not the others if if anyone knew with certainty they would end up being an incredibly successful Trader of course and so the best we can do in my opinion is wait for one to start to really gain some momentum and so what I mean by that is not just pop up a teeny bit but actually pop up and try to pull back and sustain that first pull back so in this case I would say uh on bfrg the place where this gets interesting is is right around here first it pops up and pulls back but on very light volume as you can see then it pushes a little higher and pulls back and the fact that here it doesn't just go all the way down that it's holding up and volume is increasing okay it's time to take this more seriously for the break of two and then there's a micro pullback there at 206 there's a micro pullback there at 225 and you could be trading all of these on the way up now the reason I love trading micro pullbacks is because it's a strategy that allows me to capitalize on volatility when in the middle of a move traders who don't trade micro pullbacks but are are just waiting for the first five minute pattern to form a lot of times they're going to miss this entire move because it's not you're not going to have a f- minute pattern you'll have a stock that goes up 100% in 5 minutes or 10 15 minutes and then comes all the way back down now there's an opportunity in that volatility to capture some profit but you have to be willing to reduce your time frame down to one minute charts and even 10-second time frames to to take those micro pullbacks I will put a link to my micro pullback strategy PDF it's a free download that you can print out put it on your computer or you know print print it put it on your desk and you can follow in your own trading as always if you're going to start following my strategy I encourage you to practice in a simulator before you put real money on the line because you're testing something new that's unfamiliar right so manage your risk and take it slow but that'll be pinned to the top of the comments and Linked In the description so micro pullbacks for me as soon as it starts to pull away has been the best way for me to trade these if I jump in everything that's popping on the scan like plsc this one just pops up H where do you where do you buy this right I mean there's no liquidity there's no volume unless it had breaking news that just came out or it's moving really really fast it's probably going to be too dangerous to trade it so I got to let it move up and then wait for that first micro pullback to jump on and so with Cyn that's exactly what I did Cyn will pull this up here and we'll we'll zoom in even on the 10-second chart on this one because it was such a fast moving stock um we have 10-second charts as part of the day trade Dash platform by the way so you guys can use these in your trading okay so so right here we start to pull away look at that pullback right there 520 that's so clean just a really nice little dip now it's not it's not the biggest pullback but it's not bad either so so let's see so Cyn we get this move here pull back at 520 moves up again another micro pullback there moves up again a little bit of a bigger dip but then reclaims $6 right here gets back above that whole dollar and rips back through the high of 640 squeezes up to 680 up to 7 little dip and then up to 720 that right there I mean that's a clean you know beginning of the move and then it pulls back right here gets back low volume weight average price and then as soon as it's back above it first pullback back in play moving higher another pullback back in play moving higher so essentially the best way to trade these for me is to wait for these little dips and to buy these pullbacks for the next leg higher so I can draw as sending support lines if that's helpful and you're welcome to do that if that's helpful for you watch when the price gets near these support lines and look for them that move back up especially you want to focus on volume seeing increasing volume increasing volume that tells you that more Traders are focusing on this stock people are getting excited about it and that's what we like to see so Cyn I'm aggressively trading it here in this section of the move and I would call that the front side of the move so on a in a market that's really frothy where you've got you know these stocks popping up and jumping higher you want to focus on trading the front side and you're going to have these exaggerated moves where the front side can be really big like this but the back side can be big as well where you get that big flush so that was the front side marked by a topping tail dogee candle and then a correction back down now we have the macd crossing over here we go under vwap and then we come back up right here when we come back up right here notice the macd crosses back into the positive and that's my signal here as this comes above vwap and then macd confirms that we're moving back in the right direction to trade these pullbacks micro pullback one minute pullback for that retest of the high of day once we drop down again once again macd crosses over back out of the trade now in this area I started to lose interest because I felt like if it was really strong it shouldn't have pulled back quite this much it should have kind of H hung out like up in this area for a move through eight so I ended up kind of giving up on this one after a little while which was the right move it pulled back and you know what happened a lot of Traders gave up on it as well Traders were really excited on Cyn and then once it started to fade they're like I can't get in here I'm I'm done with it and and what you'll notice is that Traders can be very fickle they'll jump from stock to stock to stock to stock so whatever is currently at the highs that's the stock that's going to have the most volume at that moment and I like to focus on trading what has that volume because that's liquidity that allows you to easily get in and out with 5,000 10,000 15 20,000 shares boom boom in out and that's where with 5 10 15 20 cents of uh profit you're locking up some really nice gains so switch to Cyn it makes a nice move and then it starts to pull back and after a bunch of trades on that I was like all right we got to switch gears so switch gears and let's see next trade KZ KZ this is a penny stock that I traded and I'm not going to go over every single one of these trades because there's too many I think to realistically go over but I'll just highlight some of them so kzi we had a couple of nice trades on this but you can see this was a really nice stretch at the front side of the move on heavy volume it broke through that 120 pre-market level and it pushes up to 130 140 150 up to 160 and then it dips down so this is one again you want to trade the front side of the move when the macd is open avoid trading on the back side and this is also a stock where because it's lower priced you've got a lot of Traders with big big orders that are selling and th that those can create big flushes so this area here macd is open it's the front side of the move and then once we pull back like this moving averages the nine starts to go flat high volume rejection at the top all right it's time to step back look for the next one so once again the way I'm looking for the next one is I'm watching the scanners I'm seeing some stocks popping up but I'm asking myself which one is really going to hold right which one is is going to really show me that it it wants to make a big move not just like a teeny little pop but it's going to actually pull away so the next one was a bdrx so bdrx this one comes up here we'll back this one up go to the one minute chart and really out of nowhere this was so this was so impressive it's like 80 cents a share and it just starts squeezing up right so on this one I didn't didn't break the ice on it up in here I didn't take my first trade until this pullback right there that was the pullback where I took my first trade at about $125 do30 that was my first entry and I felt like that made sense because I you know I don't usually trade under a dollar it pops up it pulls back the volume profile was good green volume nice big green candles light volume red red candle yes we did have a little gravestone dogee here that's a dogee with a flat bottom and a sort of taller upper Wick like this so this is a gravestone dogee a little nervous about that but the volume was there and Traders bought it up and off it goes up to 150 pulls back and then goes up to 160 170 and then right here it failed to break through new highs and macd Crosses over done with the trade it pulls back it tries to come back up one more time and actually did get back in it at 160 it was a little risky but macd was coming back up volume was coming back in I was looking for the break of 170 and as you could see it stalled out so I think I maximized on this one pretty well you know $1,800 that's certainly not bad best exit probably around 167 168 so you know again traded that one and then once it rejected here it halts down and now I'm like all right well if it's halting down I I'm obviously not interested in it here so well what else is moving so then back to the scanners so now watching the scanners again look to see what else is popping up so the next one was um hscs now hscs is interesting I'm actually not up that much on this one um hscs this one rejected hard look at this so this one went from 45 to 750 and then came all the way back down and is actually red on the day today now it had news which is the crazy thing the news was granted a patent which is not I mean not everyone loves patent news headlines but it is a headline nonetheless so this one pops up on my scan and my first entry on it was let's see um I got in just over $5 so it pops up right here it drops down and then it starts to curl now this was looking really good right here it moves up to 6 650 to 7 I'm taking profit and then here can you see what the problem was look at the selling volume so even right here high volume selling so this to me was a bit of a warning sign and you know because I traded 14 different stocks today I didn't have an opportunity to pull up uh the filings on each of these before I was taking trades these were just moving way too fast so if we pull up the filings we could look to see well do they have a shelf registration is there a risk of them doing an offering do they have warrants what are the warrants priced at you know what's the balance sheet look like what does their cash position you know what are what are their operating costs is this a company in other words that has a high risk of um duding the value of the company by offering shares and selling shares because if they do have a high risk then we may see that today even though the news isn't maybe phenomenal it's it's enough for them to sell some shares on the market and to raise some money they may take that opportunity so you know once you get into the balance sheet you start looking at you know how things look you can get a better better perspective but for me just purely from a technical point of view just technical analysis entry take profit as it moves higher first candle to go red is a hard exit and high volume selling there's no re-entry there's no new pattern so that was it that was over and it just sold off from there and Traders got in it traded it some people made money some people shorted it whatever and then everyone's off to the next stock that's moving higher so the next that was moving higher oh let's see went back to bdrx and then had a trade on zap had a small trade on znf and then um lcf y all right so lcf y ended up being the next one this was around uh 10:15 when we got this squeeze up and it pulls back so this is the one that ended up making the biggest move today 385 which was really impressive and when I first got in it I was like well we have the 200 moving average right here at around 520 that's probably going to be an issue but I took my first trade on it at about 560 let's see so we'll back this up so we're going to go back here so my first trade on it uh it halted it resumes and I got in right here as it starts to break higher it ends up squeezing up to 675 opening and then dip and rip up halting up and then opening dip and rip from 7 to 750 up to 9 squeezes all the way up to a high of 950 then in one candle drops comes back up and as you see we it'll pull back we have a little bit of false candle here and then rips up here and then that candle yikes that is a close call so that was a big rejection and after that candle I had actually been in it on this breakout right here and I had bought and I took some profit right before this candle and I got out and then all of a sudden you get this three-point FL will halt down on the resumption I did a dip trade but it didn't bounce and I was just like wow that was a close call maybe maybe I should call it a day right maybe I should be done I don't want to overstay my welcome when it's Tau you want to try to lean in and double down and be aggressive but on the other hand once you have a close call you got to be careful but nonetheless the next stock that pops up nexi squeezes up it halts it pulls back it then rips up to four 450 I took a dip and rip on presumption up to 5 up to 550 up to 6 and holy smokes while we were doing this class this one went up to 7 wow I mean it's still happening so I I've left some money on the table here today but I'll remind you just as I did yesterday every day you're doing one of two things you're either leaving money on the table or you're giving back profit now sometimes if you're special you'll manage to do both and the only way you'll do that is if you take a break for like an hour and you miss a lot of opportunities so you leave some profit on the table and then you come back and trade and lose money then you've lost twice so you really want to be careful about that so for me when I do these Recaps and I do these episodes later in the day and I see these stocks moving I have to be really careful that I don't try to overcompensate for the fact that I missed the move right I'm doing this class for you guys I missed this move and look I think I did well enough today I'm up $1,000 it's a green day as it turns out I probably could have gotten to 12 or 13 if I kept Trading but hindsight is always 2020 because it'll never sort of account for the fact that what if this had one of those massive drops here uh like what we saw on um whichever it was LC lcf Y which is currently up still 198% so this one's up 198% it's obviously doing really well but nexi not bad it's up 165% so you know this is this is what we like to see okay so let's see so let's jump back and get reoriented here so nexi right so traded that so my entry on This was um yeah so we went over this it was back in um in this area we had this first pop this pullback halts up opens dip in a rip got long there got the squeeze up to 560 up to seven up to six uh 620 high and then a rejection drops back down now an issue with nexi was that the 200 moving average was right here at about 575 so it's a little unusual that we would break the 200 down and then be able to get back above it which you know ends up we even were below volume weight average price so what sent this all the way back up to five to six and up to seven well there's some serious momentum in the market right now and it's that I wouldn't say you shouldn't consider trading something like this I mean this is moving it was obvious at the time when of the scanners that I like to use um let's see let me pull it up so um top volume in the F last five minutes so top volume in the last five minutes is going to show you the stocks right now that have the most volume and this is in the entire market so nexi and lcf Y and Ford and bfrg these all are peing in the entire stock market so you want to follow the volume around the market if you're a stormchaser right you're using your meteorology skills to figure out where you might have a storm if you're a Momo Chaser you're using your scanners to try to figure out what's moving now some momentum Traders are going to use Reddit and social media and that can be helpful through Word of Mouth to find out what's moving but I think scanners are great because you're getting realtime data from the market and it's telling you right now instantaneously what's happening so anyway so so nexi that would have been the easiest way to find it one thing that be a little tricky is that um a like this stock here H VR that's moving up or this one here that has the Green Arrow moving up these are moving up the scan so you might not notice them when they're lower down on the scanner and that's where this works nicely in conjunction with your high a day scanner so you've got the high a day scanner showing you something making new Highs but then you also have the top volume scanner showing you just in the last five minutes what's got the most volume right and the the top Gainer scanner showing you the biggest percentage gainers in the market uh and so you know very clearly telling us where there's attention where people are focusing so we got this move on nexi then following nexi uh let's see the next one was Ford all right so then all of a sudden Ford pops up now here's here's the the thing about Ford when this one first hit my scanner look at this move this is pretty much a rejection higher volume selling right definitely higher volume selling on Ford also pierced the 200 moving average and pulled back this is the type of day where you could have 30 stocks like Ford go up 100% And it's crazy and and a lot of traders who trade momentum will jump from stock to stock to stock to stock and a lot of short sellers on a day like today maybe building a cushion shorting these because in fact we're seeing a lot of them are pulling back what I would actually prefer to see is one that's just going absolutely insane versus 20 that pop up and then do a full reversal all the way back down because what what happens when you have moves like this is short sellers are going to start shorting earlier and earlier and earlier knowing that this is going to happen you need more moves like nxi where they don't drop I mean and this dropped enough that shorts probably could have covered for profit but you need you need ones that just keep sustaining remember that's what started this whole cycle of momentum we go back to the beginning it was zap right it was cost these stocks that over the course of several days just did not let up so like yes there were momentary pullbacks but it just generally kept going higher so shorts just were not getting a break on it costs same thing shorts not getting a break and this really went parabolic going from 10 to 20 in like 10 minutes so people just momentum Traders crushed it and short sellers got taken by surprise and and lost I'm sure there are millions of dollars in cumulative losses by shorts so with Ford this one popped up but the problem with Ford was that from the very beginning the volume was very light so it popped up and halted up here let's see the first halt up was actually here at 487 and it was on about 70,000 shares of volume okay so it's very light I tried to get in into this halt because I saw it moving higher and I filled 348 shares that was I mean I I tried to get in with 500 and I filled 348 so I couldn't even buy a l of shares cuz there was just no volume it opens and it drops and then immediately goes into another halt right here and it happened so fast and the volatility was so big that I was just like you know I only have 348 shares and I ended up stopping out so I stopped out for like a $17 loss when it dropped here and then when it came back up I got back in with 250 shares and got a small little trade as it came up to the halt level it then drops pops up drops halts up right here at 620 opens and immediately goes to another halt opens almost to another Halt and then drops down hals down then it bounces here comes back up and right in here I'm okay with it this still has the potential of reclaiming these levels but then macd cross over and starts to sell off more and that that was was the end of the day for Ford and you know very quickly Traders sort of abandoned Ford and jumped on to the next one now that's where I ended up saying so let's see um so this this peaked at about 12:15 so that's about where I called it a day so as we looked at bfrg earlier um I missed that move this one went from a $170 to 40 but right now would you say it's on the front side or the back side of the move I would say it's on the backs side McD's crossed over right high volume on these candles here we're on the back side of the move the fun is over for now on bfrg and that's fine we had another stock that hit the scanner xtlb did this one give smacking not really right super light volume it didn't drop but it's not holding up gri 283,000 share float Traders aren't jumping right they're not biting they're not going for that one we looked at at oh no we looked at PLS um at at you know these ones they're light volume they're just not going so bfrg that gave a bigger move Hao it tried but Traders didn't go for it they didn't bite so this is the thing like I just never know you know what Traders are going to bite on you know we we I don't think we do so we just sort of go with what's moving right now and here you know nexi makes that second leg higher that's great to see so it got back over vwap and maybe just the fact that had made such a big move earlier Traders were quick to jump on it this probably is a company that's not prepared to sell shares uh today uh they they whether or not they have a shelf registration you know again we can go into the filings and check now that we've got a moment of pause um they actually do have a valid shelf registration it appears although I couldn't say for sure because that's four wait 22 that's no it's only two years ago um let's see so then respect this so you know again you could look you could spend time going through all of this and looking to see you know okay so here was an offering in February that's what I was looking for so there's an offering of 300,000 shares TW price of 1205 wow um so they raised some money on that one so what was the price of this back then oh yeah right right right right right right yeah so this was one that made a big move back here this was incredible from $56 to $28 so that's probably part of it it's a stock that's a history of making this these big moves I actually forgot about that uh but you know again that 200 moving average it's it's kind of I don't know usually these stocks when they make a crazy move like that they're kind of you know these are always kind of like little aftershocks they're never as big usually as the first move but what's interesting is that the volume today is higher I suppose that's the price was lower people were able to trade more shares so that's going to contribute to it the total dollar amount of of uh shares traded is probably low so so then yeah so then that was nexi and as I'm looking at the chat room right now it's it's 137 in the afternoon there's still a bunch of Traders chatting talking about different stocks they're watching um some are watching lcfy0nsrw still active and I saw a number of people saying that they were going to come back for power hour so Power Hour is from 300 p.m. till 4:00 p.m. and then of course markets open until um 8:00 P.M for after hours trading so the window that I've been focusing you've got 4: a.m. to 7 a.m. so 4:00 a.m. to 7: a.m. this is early pre-market so it's it's premarket but I'm going to say early premarket and then 700 a.m. to 9:30 is is sort of what I would call just regular pre-market and the reason I am distinguishing these is because the number of Brokers that are online here from 400 a.m.

I mean you've got so many Brokers that they don't even come online until 7 a.m. right so this is like all of the Brokers out there your you know all your free commission Brokers and then you've got just a small handful of Brokers that are that start this early so as a result since you don't have a lot of Brokers that are even online before 7 you don't have a lot of volume before 7:00 a.m. it's light volume but then from 7:00 a.m. until 9:30 we're fine from 9:30 until 400 p.m. we're fine and then from 4 p.m. until 8:00 p.m. that's the end of after hours and that's when it stops for for everyone so everyone stops at 4 pm that's the end of the day but most Traders cannot use leverage after hours which is interesting but you can pre-market that depends on the broker you use but a lot of Brokers will restrict leverage at 4 p.m. so 4 p.m. because leverage gets restricted now once again the trading between 4 P.M and 8 pm. is going to be lighter volume not as many people focus that out that period And even from here I would say that 9:30 to you know 12 is sort of a window of opportunity and then from you know 12 to two it's usually slow and then from 2 to 4 that's when we're starting to get sort of focused on are we going to have anything for Power Hour which really begins at 300 p.m. right so 3: p.m. to 4:00 p.m. so that's kind of the breakdown of the hours of the day and during a during I would say a typical Market I'm going to trade um you know primarily in this area here during a hot market I'll sometimes go all the way to here sometimes I've even done this from 400 a.m to 8:00 P.M that's unusual I don't do that often uh I've probably actually only done the full 400 am to 800 pm I've only actually done that one day and that was in uh 2021 on GameStop so that's the only time I've actually done the full full full day um but I will often I don't usually get up at 4 a.m. but I will I will sometimes when the Market's really hot and I've done that with GameStop several times uh but usually in this kind of Market I'm sitting down around 7 and I'm here until 12 or something like that and then the afternoon I just don't expect there's going to be a lot but the fact is these last couple of afternoons we have continued to see quite a lot and so for that reason I have traded longer and I I guess if we looked at my calendar from uh the last couple days what you would notice is that um so Thursday so Tuesday you can see I peaked at 177,000 then gave back a little bit by the end of the day we go back to um let's see where's the calendar so we go back to Monday so Monday closed at the highs so that was fine closed at the high on Monday Wednesday was up 14,000 and closed at 10,900 so you know the last couple days closed a little low but today right now this is my high of day $1,327 39 so closing at or near high of day is always great oop here we go we've got stock on the scanner so I'm looking at this and immediately I'm seeing the float's 161 1 million shares is it a recent reverse split which could give us reason to question the float no we can just double check the filings so what was the ticker again awl so AMW I look at the quarterly filings and I check the shares 263 million right there so yep we're too high so that float that this is not going to be one I would trade so I sometimes we'll just double check it now syt okay this one low float probably have to double check that as as well that's very very low um looking at this it's below the 200 moving average as you can see does it have a catalyst no just popped from 180 to 205 so this is sort of my quick due diligence but the fact is the volume on both of these is very light so either way the safest thing for me is to wait to see if either of these could prove themselves right continue to hold up show me a micro pullback and then when I actually pull up the level two and I start looking at it that's when I can also see all right well where's the halt level 239 halt up 159 halt down right you can script this so it's right here on your level two so L LD up uh down this gives you some perspective right now you've got a 4 Cent spread 8,000 shares on the bid I mean it's not bad uh tight spread but there's no volume so right now there's no trade now you could take it a step further and you could check short interest or you could check not short interest so no shares available all right so that's kind of interesting so then I could go uh use this other software here let's just see so s syt short interest so we'll pull this up currently the short interest is basically showing nothing so not showing High short interest here on fintel uh there's some other um Services you can use to check short interest that's a little bit more real time but it doesn't look like this is one that has a high level of short interest so let's see I'm just checking another feed I'm showing 7% short interest so doesn't have high short interest doesn't have a catalyst is it going to do anything probably not but you know there might be some traders who did just jump in it there because they're in that mindset of jumping in everything that moves now as a momentum Chaser and a momentum Trader I know what that's like when it's a hot Market I often will jump very quickly but there is some basic due diligence have to do before I jump in I've got to make sure I've got decent spreads I've got to make sure that it's moving it's got rate of change and so those are kind of things I'm doing as a gut check now like anyone else I'm not right 100% of the time I'm going to have my fair share losses but I think one of the things that a lot of our members at Warrior trading benefit from is that when they're tuning in my broadcast they're able to get my real-time commentary and you're able to benefit from all of the educated intuition that I've spent more than a decade building so for a beginner Trader that's invaluable so if you haven't already checked out my micro pullback strategy PDF that link is in the description there will also be a link in the description to do a twoe trial at Warrior trading so come on over and join me for two weeks you could trade side by side with me you can use the software that we've got here as part of that twoe trial so you'll have access to all of these charts you'll have access to the scanners you'll have access to the newsfeed plus my chat room and my broadcast now we're uh we're always doing improvements on this software so um by the time some you guys may end up doing a twoe trial a month from now or even a year from now if you decide to wait and do it later that's fine you may see um there's a whole lot more features in this platform than you see here today so I want to thank you guys as always for tuning into to these episodes I hope you found this one valuable this week has been packed with really nice long form episodes because the market has been giving us so many great case studies and it's just a ton of stuff to go over so right now I I hope you guys are enjoying it and if you are hit that thumbs up I hope you subscribe to the channel and I will see you for the next upload real soon and I'll take this opportunity to remind you as always that trading is risky my results aren't typical and there is no guarantee you'll find success whether you trade with me or you learn on your own so please take it slow manage your risk and I'll see you for the next upload real soon