Recovered 1/2 My Losses As Stock Squeezes Up 80% transcript

What's up everyone? Welcome to day 45 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today is a green day and I recovered about half of my loss from the draw down of the last two days which were both [music] red days. The first red day I was down $8,000. The second red day I lost another 3,000. Now that's good in a way because what sometimes happens is that you lose progressively more and more and more. you lose 8,000, then 16, then 32 because you're getting into that mindset of I want to try to make it all back in one day.

So, you're taking more risk. I made I I I mean, obviously I lost on the second day $3,000, but I made the good decision of reducing my share size a little bit so that the total amount of the loss would be more manageable if I had another red day. Because that's the thing, when you come in each day, you don't know if it's going to be a red day or green day, but you can you can control how much you're willing to risk. So, if it's red, the loss will be manageable.

And this is the idea is to make sure you're never losing more than you can tolerate. I like to keep myself where I don't lose more than I can make in one good day. Today's a decent day, up $6,000, a little more than that. It's not a home run. And that's because the stock that I traded met four only four of my five pillars of stock selection. And because the market has been a little bit cooler and I had just had two red days, I traded with smaller position size.

Now, the setup ended up working out really well and I made six grand. And in hindsight, well, the 6,000 over the course of a few trades. But in hindsight, had I taken three times the position size, which I did have the buying power to do, I would have made three times as much money. I'd be up 18 grand today. But if I taken three times the position size and I was wrong, I might be down 10 grand today. And I don't want to have those kind of red days on day three of, you know, a consecutive series of red days, right?

That's where things start to get out of hand. You want the red days to get progressively smaller and smaller and smaller until you turn around and go back to green. And then once you're going green, you want those green days to get progressively bigger and bigger and bigger as you're seeing the markets working. It's in your favor and it's time to step up to the plate. So that's the idea. All right. So here we are, day 45.

Now, as a reminder, all the profits from these small account challenges get donated to charity. One of the goals I set out at the very beginning of this series was to donate to a children's hospital in every single state in the United States. That's 50 children's hospitals. So, I knew I wanted to donate at least $5,000 to each one of these hospitals, which means I needed to raise at least $250,000 as of right now. Well, as of Friday, we had raised over $493,000.

I add in today's profit of $6,000. That's plus you guys hitting the thumbs up, cuz every time you hit the thumbs up, I add an extra dollar to how much we donate. We are over $500,000 of money raised for charity today. Now, we already donated to every single children's hospital or one children's hospital in every single state. And then we added Puerto Rico, Washington DC, District of Columbia, uh, Guam, and the US Virgin Islands.

So now we've actually donated $495,000, and we've raised 500,000. So now I've got to think about where to do the donations next. And so I would love for you guys to propose some uh charitable organizations that you think are good. I don't like donating to things that are um political in nature or particularly religious in nature. I like to try to make sure I'm making donations that are um you know are not too controversial so to speak.

So children's hospitals have been really successful and of course some of them like St. Judees and stuff do have some um you know religious u association but for the most part I I I still felt really good about this. So please feel free to leave comments below on um potential nonprofits that you think would be a good um candidate for future donations. So today on day 45 um we have technically a leading gainer as you can see BURU that's up quite a bit but what you can also see about it is that it has no volume and so when you have a stock that's up quite a lot with no volume and it says check the filings often this is more of a market data sort of irregularity that we would double check.

Um I I think in fact this is a stock that was not actually uh let's see let's just double check. Um yeah so this is like day one. It's probably an uplist from the OTC market. Sometimes when a stock is uplisted, it'll show like a 2,000% return because all of a sudden the stock went from zero to, you know, whatever it's at. And so I disregard those typically. Um I don't filter them out because you you want to keep an eye on it.

Sometimes day one of a new list can be a big move, but for the most part, I just kind of leave it alone. So then we have NCT, which is 50 cents a share. So that's a little too cheap. Over 100 million shares of volume at this point, but still too cheap for me. And then we have boom right there BMGL. Uh as of right now BMGL is up 79% at $822 rallying up and it is actually halted up as we speak. So this is um giving us that sort of curl right here.

And uh we'll get into the chart and talk about in a second, but that the logical target would be a retest of we've got room to the 200 moving average right here, which is up around $1041. So, when BMGL first um popped up on the scans, I analyzed it based on my five pillars of stock selection. Number one, how much is it up on the day? It's up over 50%, which is great. Minimum is 10%. This is great. What's the relative volume?

Minimum is 5x. This is on 11,400 times above average volume. That is incredible. Now the way that occurs really uh is that the stock has to have uh a lot of volume today of course and also needs to have had relatively low volume in previous trading sessions in order to have that big imbalance. So it had 327 shares of volume literally that was it on Friday and today it's got 16 14 million shares right now. So, you go from 300 shares of volume, but the relative volume is the 50-day average all all of a sudden to 16 million shares.

That's a huge spike. Now, you might say, well, you know, okay, wow, the stock's up 50% on or now 70% on 11,000 times relative volume. This is phenomenal. So, as of right now, it's actually gone up to 15,000 times relative volume. By the time that I was first looking at it, this is about what it was at. So, what's the catalyst? What's driving this thing higher? Well, there isn't one. Yeah, I know. It's another foreign listed security with no clear catalyst.

So that's tricky. The price is fine. It's between 2 and 20. The float is fine. In fact, it's quite low, less than half million shares. But because there's no catalyst, we meet only four of the five pillars of stock selection. So it ends up hitting a couple different scanners. Uh it was on the running up scanner right here at about 740. And at that time it had relatively light volume. The relative volume was still pretty high, more than 5x.

Uh the percentage change was there, but the total volume was light. So, it ended up popping, selling off, and then curling back up right here. And I tried to get in on this curl, and my order did not fill. I don't know if that's cuz the volume was just kind of light or what it was, but my limit order was above the current price. I should have at least filled a few shares, and I filled nothing. So, I got absolutely nothing filled right here.

It ends up going up to 650 from a low of like 550 up to 650. So, it's a little disappointing. I didn't get filled, but whatever. Ends up selling off down here. It goes lower and then right here curls and gives us this big power candle from 550 to 650 to 750 up to 850. Pulls back, comes back up, pulls back, comes back up, pulls back, comes back up, rejects. So look for the inverted head and shoulders pattern. A traditional head and shoulders pattern is the opposite where you have this sort of head formation, then this side.

And typically a traditional head and shoulders has a big move up, then the edge, pulls back, then it goes a little higher, then it kind of pulls back again, and that usually leads to a sell-off. An inverted head and shoulders pattern sells off, bounces up, bare flag, goes lower, but then rallies back up to this more or less same level, pulls back, and now if we break that level, we squeeze back higher. So check this out.

This break of VWAP right there. Very nice. So now you've got the inverted head and shoulders pattern right there. You squeeze up and on this one there were a couple things I noticed. I checked the SEC filings on it and I looked at the daily chart and I noticed a couple things. So this is a Singapore listed security. So it's not a US security which sort of fits the profile um you know of these foreign listed securities making big moves.

We talked about that in the watch list on Friday or on Sunday. Um it I I saw the daily 200 moving average at 1040. That's fine. I looked at the daily chart and I realized that there's really only a couple days it's had volume, which was way back here. And in fact, this began trading for the first time ever back here in 2000 uh February of 2025. So, it's not like it's a brand new IPO, but compared to CRBP, which was another stock that was up today, CRBP has a lot more history.

And so, CRBP was popping up, but didn't trade very well. And so when BMGL started to pop up, I really kind of thought to myself, you know, of the two, uh, this one has a little bit of a more interesting daily chart. So now you've got one recent reverse split right there, as you can see. And so then I'm thinking, okay, is this a stock that, um, you know, do they have a shelf registration? So I pull up BAM SEC to look at the SEC filings.

And I notice I look back here and I don't see a recent shelf registration. There was a prospectus filed in February of 2025 to sell shares. That was, you know, over a year ago, year and a half ago. So, I'm not super concerned about that. It's old. Compare that to TN. TN had a shelf registration that they filed like a week before breaking news came out. So, and then they had this perspectus for another 1.8 million shares.

So, it felt very clear that TN was the type of company that was going to sell shares. I didn't feel that way with BM um BMG. That doesn't mean they won't, but it just didn't feel that it had that same overhead risk as uh TN. So, we got this initial break through the volume weighted average price. I'll hide these charts there. All right. So, we got this initial break right here. This was an awesome move. Then it pulls back and then you get the second pullback right here or sorry.

So, first pullback right here. Then second pullback is right here. Then we got a topping tail, right? See how it squeezes up and reverses. nice high volume green candles and then a red candle with slightly higher volume. It sells off, it comes back up and then look at this dramatic rejection, high volume selling on these two candles. Don't really like that. It sells off, it ends up rallying back up going into the open.

And that rally going into the open, I traded in my main account, but I didn't get back into it in the small account. So, the total profit $6,38510 bringing my account now up to about $94,48156 to be exact. So, I'm about $5600 shy of crossing over a h 100red grand in this small account. Not bad. All right. So, this was a good day. If I don't take any trades tomorrow, if I don't see anything that's really solid, that's fine.

I want to focus on quality over quantity. So, I stepped up to the plate, got a couple nice trades on BMGL. I didn't overstay my welcome, locking up a green day. And that is the way to grow a small account. In hindsight, I wish I hadn't taken those two trades on the two red days that, you know, put me in this draw down. But hindsight is always 2020. At the time, I felt the market was strong. I felt the setup was good.

I thought it was going to work. Obviously, I wouldn't have traded if I didn't think those things. So, you know, look, you win some, you lose some. At the end of the day, I'm making progress. Maybe not quite as quickly as I'd hoped, but I am making progress. In 2017, I funded a small account with less than $600, and it took me 44 days to turn that account into a hundred grand. However, I was using leverage, six times leverage.

I was using an offshore broker. And for this challenge, I have not been using leverage. So, I've been day trading, but I haven't been using leverage. Now, most of that hasn't been because I haven't wanted to, but because Schwab doesn't extend leverage on a lot of these risky, you know, lower price stocks. So, although I started with $2,000 instead of $583, I didn't have the use of leverage. So, the growth has been a little bit slower, but kind of not too much slower.

I mean, today's day 45 and I'm darn close to thatund $100,000 mark. So anyways, we'll see what day I ultimately cross it. Um, but in the meantime, I'm continuing to make progress. So, if you guys want to check out a twoe trial, even if it's not just to listen to my commentary and to go through some of the classes, but just to use the charts and the scanners that we have right here, uh, you're of course welcome to check it out.

Twoe trial, $20. You're going to get a lot out of it, and you'll get to try out this platform, and you get to listen to my commentary if you'd like and see what it's like to be a member of our community. So, I hope you guys check it out. Congratulations to those of you guys that um locked up some profit on BMGL. I'm happy to see it continuing higher. Next target is the 200 moving average, $1040. If that breaks, then well, you've got a lot of room.

So, that could get pretty interesting. You know, the big difference is will this company go and sell shares on the open market to raise money? Their stocks up 100% today? They sell a million shares, they're going to raise $8 million. They sell five million shares, you know, it adds up. So, if they want to sell, they could start selling if they had a shelf, but they don't have, at least as far as I could see. I don't see a shelf registered.

So, you know, how quickly could could they get one out? Um, you know, maybe maybe today, but uh I don't think they'd be able to sell those shares today. So, again, I you know, it's a foreign listed security, so I suppose you never know. But, uh but this is good to see. Oh, and one other thing that I'll mention. Um, Rehea, this is a stock that popped up um here. Chinese stock, no news, pops up, sells off to $2. So, it goes to 295, almost $3, then drops to two, and then it bounces all the way back up to 250.

That's a nice bounce off the low. That's more than just a bare flag, right? That's a nice bounce. Now, it did end up resolving to the downside. But if this if we start seeing these kind of moves where you get a big sell-off and then you get a 50% bounce off the low or more, what if you get one that goes all the way back up to here? What if you get one that rips through the highs? Then all of a sudden, anyone who's shorting these first candles is like, uh-oh, the bulls are starting to step up to the plate and I better be careful cuz you get one that drops and then goes all the way back up.

It's going to be pretty scary. CRBP did something like that today. It did a big drop right here from 10 down to five and it comes all the way back up. Pulls back back up. Pulls back back up. It wasn't able to pull through 10 and hold. And that didn't surprise me. The float was a little higher. Um, you know, the fundamentals of the company. It's one of these ones that I think is at a higher risk of selling shares. And so, I didn't take any trades on it, but it is good to see those recoveries.

So, that's something to pay attention to. If we're seeing more of them, that may indicate that momentum is starting to shift um back towards the buy side. All right, so with that, I'll remind you as always that trading is risky. My results aren't typical, and there's no guarantee you'll find success whether you trade with me or you learn on your own. So, please manage your risk. Take it slow and always practice in a simulator before putting real money on the line.

I'll be back at it streaming tomorrow morning at 7 a.m. Eastern Standard Time.