Narrowly Avoided a Big Loss! transcript

What's up, everyone? Welcome to day 14 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today is another green day, but it was not smooth sailing. This morning, my window for trading, which begins at about 7:00 a.m., well, 7:00 a.m. is actually the earliest you can trade with Charles Schwab. So, the window starts at 7:00 a.m. Even if I wanted to start earlier, I can't. Begins at and for me runs until about 9:30 in the morning.

The 9:30 opening bell for me marks the end of the pre-market session. And the reason I like trading pre-market is because that's when companies are most likely to put out breaking news. Pre-market and after hours. Why? Because there are no circuit breaker halts pre-market or after hours. So, as the market reacts to the news, the price action isn't jammed up by a halt. So, big large cap companies put out news typically after hours.

And a lot of these companies are also located in California, especially these big tech companies. So, 4:00 p.m., 4:30, they put out the news and the stock can squeeze up 10, 15, 20%. If that same headline came out during regular market hours, the stock would halt. So, pre-market, very similar. And that's why I like the pre-market session. Beginning at 9:30, the market opens and we have stop orders, we have market orders, we have halt levels, we also have options, and trading becomes a lot more choppy, which is a little surprising because the volume increases, but the volatility also gets bigger.

Sometimes you think with more volume, you'll have less volatility because it becomes more thickly traded, but because of the way the high-frequency trading algorithms take advantage of market orders and stop orders, we're actually seeing, at least right now, more more ranges after the open, but not in a way that I feel is predictable. And generally speaking, there's some exceptions to that. But nonetheless, my window is from about 7:00 until 9:30.

And so, today, I didn't have any trades in the small account at 7:00, 7:30, 8:00, 8:30, 9:00, nothing. I thought it was going to be a no trade day. And then we had a stock that put out news at 9:16. I see it, it pops up, it pulls back, I jump in on that pullback, and it flushes. And all of a sudden I'm red on the trade, but it didn't sell. I gave it a second, and the reason I did that was because I wanted to see if when the first candle made a new high, we would see another round of buyers come in.

We did, and I swung on that position from red back to green and got out. Close call though. Not the super Not the best way for me to begin the day. And, you know, beginning the day with my first trade at 9:18 in the morning also not ideal. I ended up taking a second trade, and that second trade was was cleaner, but it was a smaller winner. So, we'll break down the two trades from today. It brings me now up to 35 trades in total on the small account challenge, and I've had 28 winners.

So, accuracy is 80%. Now, as a reminder, all the profits from these small account challenges gets donated to charity, and I asked you guys yesterday in the comments if you had any suggestions for Children's Hospitals. Josh asked me to do a donation to the Children's Hospital of Texas. And I actually realized that I already had, but I hadn't put it on my list. So, I added that to my list. By the way, every time you guys hit the thumbs up, I add an extra dollar to how much I donate, and it comes out of my own pocket.

So, thank you guys for hitting the thumbs up, and this is, you know, kind of my way of motivating you guys to be engaged on this channel, and I appreciate you doing it. So, with $345,000 raised, I put in the $10,000 donation to the Texas Children's Hospital that I had made earlier in the year, but forgot to mark down. I also had one to the Colorado Children's Hospital, which I forgot to mark down. So, this actually increases uh the total number of hospitals that we've donated to in the 50 state challenge.

And I also donated $5,000 to the Shriners Children's Hospital in Portland, Oregon, and that was a suggestion from John uh on the YouTube channel. I hope a subscriber, if not already, maybe you'll subscribe today. And he said that his dad had polio as a youngster and spent a lot of time there. So, thank you for that suggestion and for the other suggestions that I got, I appreciate those and I'm going to get to them as we continue working our way down the list.

So, we've got, I think, 27 or 28, maybe 29 children's hospitals that we've already made donations to. The goal is 50. So, let's make it happen. Thank you guys for hitting the thumbs up. All right, so coming in here today for day 14, we did have a bit of dispersed attention. We already had a couple stocks that had made bigger moves. LHAI, a little too cheap, a ton of volume, but just at a price range that I don't typically do well based on my five pillars of stock selection.

TC, well, you know, TC made a big move earlier in the day and I'll pull up the chart on it right here. It's currently up 164%. Um, but it it really pulled back quite a lot and look at this chart from yesterday. It drops from eight to two, the market closes, then it rallies back up to eight. So, does it get credit for being up 300% since it dropped like 80% yesterday? I don't know, but in any case, that one was a little weird.

DXF, this one's too cheap. GEM, this is the one from yesterday. It actually continued into after hours on fairly light volume in total, but it went from $4 to $12 a share. This morning, it kind of pushed a little higher. I got a trade in it in my main account, but in the small account, I didn't trust it. CANF, you son of a gun. Well, all right, so I'm glad to see it moving higher. This was the second stock I traded, but we'll let's hold on that.

We'll break that one down in a second. So, because there was a bit of dispersed attention at 9:17 a.m. when DXST hit the the it was almost immediately up 85%. So, it makes this huge move. Now, the relative volume was low and the total volume was low as well. It did have breaking news, as you can see right here. So, AI-enabled healthy aging platform, you know, if they could figure out how to address my receding hairline, I'd be grateful for that.

Um so, I don't know what they do, but um it ends up popping up Oh, jeez Louise, this is my chart from yesterday. All right, let me knock that out. I'm going to grab um I feel sorry for anyone named Louise. You know, I don't bring you up when it's just a bad thing. There's I'm sure there's good expressions include your name. Um but, they're probably aren't. So, here we go. So, CINF No, this is um DX What was it? Now, I forgot which ticker it was.

Um This is how quickly they jump out of your mind. DXST. All right, so DXST right here. DXST. On this one, um this was the pop. All right, so this thing pops up right here, and it goes um it it squeezes up from two up to 270, up to 280, up to three. Um it dips down for a moment, and so it hits this high here of 380, and then it pulls back. And I was like, that's a big move. So, as it dips down here, I got in right in this area.

Let's pull up the Thinkorswim uh account so you can see where I got in. So, boom. So, my first entry on this was um down here. I bought the dip about 319, 321, and 323. And so, I was getting in right in this area, and then it flushes to 80. And I really wasn't expecting that drop, and now I was worried that it was potentially going to keep going lower. So, in 10 seconds, it drops to 280, and I said, well, I cannot let it keep continuing going lower.

So, if it breaks that level, I'm going to cut my loss. It holds that level. It bounces back up. It squeezes back up to 360, and I got out right up here at 352, and I was like, "Phew, that was a close call." Then it drops back down, and I said, "Well, I'm definitely not getting back in that one." So, in total, yes, it has news, it pops up, and it gave back all those gains, and it's actually red versus the close from the previous day, in spite of putting out breaking news.

All right. Well, I don't know what to say about that. I guess we had dispersed attention, and there were other stocks that people were focusing on. CANF may have been one of them. And so, on CANF, I had some trades on this one earlier in the morning, uh in this area, in my main account, but I didn't trade in the small account. I felt that it was a little bit too risky. Um so, I I didn't take that trade. So, if we jump back onto the slide deck here, um my next trade here, uh CANF.

So, CANF hits the running up scanner at 5:03, right there. It's got 24 million shares of volume with a 2 million share float, 16 times relative volume today, which I thought was pretty good. And so, on this one, I was looking at the break through the volume weighted average price, and this is how I traded it. We get this curl right here, and I jumped in right about there. So, if we look at my orders on CANF, I'm in this one at 5:07, and I'm out at 5:28.

A decent little profit. It actually went up all the way to 5:78, and I sold as it came back down. I thought maybe this was going to retest those pre-market highs right here, but I was aware of the fact chart not very compelling with these red candles and resistance at the 200 moving average. On the other hand, I thought the market's been pretty high, so if there was ever a day that it could break this level and pull away, today's probably the day.

But, didn't end up happening. And even as it curled up here, we just got that sort of hard sell-off. So, as I finish the day today, this is where I'm at. $1,068.75. The account is now at $17,448. Green on the two stocks I traded and up 772% since I began the small account challenge 14 days ago. 35 trades, 28 winners, 80% accuracy, $441 average winner or average trade. For those of you guys that want to watch me continuing to grow this account, check out the two-week trial.

Link is posted at the top of the comments and in the description. And this week we've got our 4th of July sale. So, if you want to become a full-fledged member, this would be a great time to check it out. But, it's even better time to do the two-week trial. So, before our coupon codes expire, the 4th of July sale, you'll already know what you'd be a part of. You'd already get a sense of the community. So, if it's worth $20 to do a two-week to do a two-week trial, make sure you guys check it out.

But, I'll remind you as always that trading is risky and my results aren't typical. Now, it's just after 10:00 a.m. I'm going to jump into the Warrior Pro Mentor room and do a mentor session. So, I will see you guys back at it. Those of you on YouTube for tomorrow's recap, and everyone else I'll be streaming tomorrow at 7:00 a.m.