This was today's MOST OBVIOUS trade transcript

all right everyone so I've got a great recap for you today we have a case study today's big stock went up over 300% this was awesome and what's really cool about today is that I followed the game plan that I laid out for you yesterday to a te I mean it was almost perfect execution now there are things I can't control like how strong the Market's going to be how big the biggest Gaper is going to be when things start to slow down but responding to all of those various my trading performance today was solid locked up the daily goal here first day of April so let's go ahead and jump on to screen share and we're going to go into the slide deck and I'm going to go over my case study okay so the stock that we're breaking down today is VSS te when I looked at my scans this was at 7:13 a.m.

I pull up my scans on my phone this is screenshot from my phone and I saw that VST was up 185% which I was like holy smokes this thing is impressive um price $882 so the next thing I did on my phone was to check the chart and the reason I wanted to check the chart was because I wanted to see whether or not the stock was a buyou which I didn't I mean you never know I just want to see like what's the chart showing me now as it turns out we did have a buyout today uh the buyout was um do do up 33% and if I pull up the chart on this I'll just show you real quickly um so do do there it is this one trading um it's going to trade more or less sideways because the the price has been determined and uh so there's no volatility on it anymore right it pops up buy out now it's sideways so whenever there's a buy out I'm like all right well I'm not going to trade that that's not going to give me um really any profit opportunity so the first thing I did on VST was I checked the chart now the next thing I did after I saw that the chart was interesting was I checked the news so generally the first step is just see this the stock on your scanner and try to decide whether or not it's even worth looking at in more detail and you could do that by either glancing at the chart or just even looking at the metrics on the scan so for me when I'm looking at a result on the scan immediately within seconds this is what I'm doing and let me just pull up my whiteboard here so we can um get dialed in So within seconds this is the due diligence um that I perform okay so the first thing that I check number one is float because if the leading gapper has a float of five billion shares I don't even have to look any further I know that I'm not going to trade it it's probably a buyout if it's the leading Gap with a float that high so the first thing I do is I check the float and I want to see ideally that the float is under 20 million shares and i' prefer lower lower is better so under 5 million is is even better than under 20 number two I check the price I want to see that the price is generally between I prefer five and 10 that's sort of my sweet spot if the price is like $40 a share I'm just going to note this is going to carry a lot more risk to trade it I don't know if I have the appetite for it if the float is sorry if the price is like a do 15 or 80 or something I just know that it's going to be cheap it's going to be a little bit harder for me to make money on it because the range is going to be smaller uh KB was mentioning today that he actually likes trading stocks with bigger range um and he's kind of like sort of thought that that maybe that was um unusual to prefer a a more volatile range and I I agree 100% And the reason for me is that when a stock is grinding in a small range you know and this is very common with low price stocks under $3 a share and under five dollar a share even you know your best casee scenario is that it's going to go up maybe 10 15 cents it just feels like is that even worth it because at any time it could jack knife and flush 30 cents so it feels like you've got more downside than upside whereas some of these higher price stocks you know if it breaks this critical level it could go up 50 cents or a dollar a share that's a pretty juicy return that's something to get excited about okay so as I'm looking at the scanner the first thing I'm looking at is um well I I I also of course check the percentage Gap so I'll just write that down here um you know percentage Gap if it's only like 15 to 30% I almost don't even pull up the chart I'm like this is boring so to get me excited what I need to see is that the Gap is 50% and higher 100% is going to get me really excited I'm going to come running over to my desk if I see on my phone that something's up 100% a float of under 1 million is going to get me really excited under 5 million is like okay that's interesting price just 5 to 10 is ideal um and then number four the next thing here is trying to figure out the news and then number five is looking at the intraday chart so when I pull up um the news on this I I don't see that there's a fresh headline there was some news from last week but it didn't really substantiate this just squeezing up 300% today so I was like I don't know you know I'm I'm just not sure that this is something I can feel good about uh from a news perspective so that made me a little bit nervous all right so there's no clear headline but it's up 300% so I checked the chart and the first thing I noticed on the chart is that this is a chart that we would identify as a recent IPO so recent IPOs are um chart patter chart daily chart uh patterns that I really like because it's all-time high is right here at 14 and what usually happens with these is they open they they'll sell off for a period and then the company will start putting out some good news and this is where we can have a turnaround story and today's pretty incredible that we went all the way up to just about $14 a share I mean that is that is a huge move it's 300% that's great so that doesn't always happen but the thing about this is that above 14 it's blue sky there's no resistance however you can have insiders who will want to sell now there are lockup terms for insiders which is one of the reasons I like recent IPOs uh but often it's like 90 days um sometimes it's longer 6 months but you know we're past 90 days here so it wouldn't be surprising if we saw some selling today from those insiders okay so so that's the daily chart all right so the daily chart checks out on this one I'm like daily chart I like it so then I'm looking at the intraday chart right and what I see on this is that it spiked from $4 to 13 in one 5minute candle that had about 880,000 shares of volume so here's the problem with that um we we'll get the Whiteboard out here again so the problem with that kind of move is when you have a stock that goes up that much that quickly often they have a hard time sustaining that that level so let's see so we go basically straight up here like this and our 9 moving average well that's way down here right volume weight average price uh sometimes will be actually um you know kind of like this and the reason this happens is because this is just all of a sudden when the volume comes in it moves the the vwap higher but the nine moving average is quite a bit lower so usually these need to have a period of pulling back and typically I like buying a dip when it comes down to the nine for the curl back up right but unfortunately here um you know we'd like to pull back to the nine but The Nine's still way down here so when I'm looking at this chart that's the thing I'm thinking is well jeez look at the nine moving average it's below $8 the vwap is way up here it's too extended you know I can't I don't think I can get in here and expect the first candle to make a new high and this I didn't trade this move right here uh the volume was super light as you can see and the spreads were huge and the risk was too high given that it had no news right so then so we end up pulling back so total profit 6,100 and oh I think I was up at 6,400 and finished at 5400 but this was where I grabbed that screen shot so 6100 um and look at how we when we finally came down to our N9 moving average that's when we ended up having support but what I'll tell you is that um I I was looking at this pattern here and I was sort of saying to myself I'll pull up the VST chart here so I was looking at that pattern on the five minute and I was like really trying to ask myself like what do I think about this pattern so let's go back to here so first candle pops up right so we got our first candle pops up second candle red pops up 118 B Big Range Big Range pulls back again pulls back again I'm watching it here and I'm like I can't I can't and then it all of a sudden flushes it breaks below vwap goes down to eight goes sort of sideways here and right in this area I was like what do I think of this pattern and I was thinking to myself well we've got resistance at the volume weight average price here at 920 we've got 950 which is sort of half dollar maybe resistance and then we have resistance at 10 if we get back above 10 then it starts to look better for a move higher but do I want to buy it down in this area so I was watching it at $915 and I was really close to buying it and I was just like I don't know I don't know if I like this it pops up to 950 hits a high of 958 and on this little micro pullback I got in and we got to squeeze up to uh 10 as you could see right here and then it pulls back and as it broke over 10 I added back and we got squeezed to 11 and then it reverses and drops back down so at the end of these two or three trades I was up $1,000 and I was like you know what I was cap so and here's the thing on this trade here I got in as it broke 1020 right there about 1038 and I took 25 200 shares and then I added another 2500 so I had 5,000 shares and I was up 40 cents a share when it hit 11 uh1 98 I was up $2,000 unrealized but I didn't take it off the table cuz I was like well hold on this looks like if this breaks this level now we're going up here so I was like let me give it a second and then it revers really fast drop down so one of the things that I said yes yesterday during my game plan was that my first goal for this morning would be to try to get myself up $1,000 on the day once I'm up $1,000 on the day then if it happens relatively quick I will increase my share size and try to scale in see if I can hit my daily goal and then once I hit my daily goal if it's really hot I'm going to keep going but once I get close to the end of my window when I usually make the most money I'm going to bring my share size back down because if I take a loss towards the end of the window I won't have time to recoup the loss so I started this morning with a cap of 5,000 shares on my first three trades and I got myself up $1,000 and then I lifted the cap to 10,000 shares and I said I'm going to keep trading it but I'm going to increase my share size so it ends up going sideways here and then was as it comes back up I got back in and we squeeze back up to 11 micro pullback up to 1150 micro pull back up to 12 super solid and right there I made about $5,000 so that put me up 6,400 on the day it then pulls back a little bit I got um I got one trade up here where I bought for the break higher I was looking for the squeeze up to 13 I lost 500 on that so then I was up 5,900 and then I had a trade I think it was down in here a dip trade got back up to 6,100 and then at the open took a trade uh for the break red to Green move and lost 500 I'm at I think 5,900 in um or 5400 in total profit on VST so overall I traded it pretty well and I followed the rules today really to a te I started with small size and then so by the way um once we got up to 9:00 a.m. at the top of the hour I was like all right well my window kind of closes at like 10:00 a.m. definitely by 11: and I'm at the daily goal above the daily goal and it's the first day of the new month also for what it's worth I hit my daily goal the last two days in a row and then gave back like 70% of it that happened last Wednesday and it happened last Thursday so I was like I don't want to do that again today this is getting a little annoying so I'm going to bring my share size back down to a cap of 5,000 shares for the rest of the day and I didn't actually trade even with that much size as I continue trading but uh but nonetheless so finishing the day at about 9,000 sorry sorry uh $4 4,962 I think 53 or something like that so a solid a really solid green day just a smidge under the daily goal but we'll Round Up call it a daily goal $5,000 um and VST was um you know was the best the best one now at this point right now this is looking like a head and shoulders uh kind of pattern which is going to probably come back down that's usually how these work so I think that I did well enough on it I don't feel they need to overstay my welcome at the beginning of the new month I'm I'm grateful for the Green Day $5,000 is great uh always a little disappointing to give back some profit at the open and that is what happened to me I had goes a total of three trades at the open open or maybe four and they were all red fortunately they were all with small size so I only gave back like $1,300 total from my Peak maybe, 1400 but still it's a little Annoying to have three losses in a row so the second I start to feel a little annoyed I'm like okay I'm aware right now that I'm feeling a little annoyed and I realized that if I take another loss I'm going to be fairly triggered this right now is the time to walk away this is the time to be grateful so I had said for um for the month of March when I was talking about my performance I said that I was I was left feeling a little bit frustrated because as you might recall uh for those of you who have been tuning in for daily to daily Recaps um for quite some time I I had a really good start to March and then I actually gave back all of it which was terrible and then I rallied back up here and then I gave back a little bit more and so I finished the month right about here which was about 18,000 in gross profit and about 10,000 in net profit after fees and commissions which you know let's be honest considering I made almost $120,000 in February 10 grand is nothing it's almost it's might as well be a break even month so I'm like all right well what's the cause of that four red days where the cumulative losses were nearly 40 Grand because I got frustrated I got stubborn and I had a couple of days where I had emotional hijack and that's when you you know you just give up the rules and you just start trading from emotion and it can be very dangerous when that happens so my goal for the month of April is to try to get through the whole month without having any emotional hijack okay that's a good goal to have but I was like how do I how do I achieve it because I never intend to have a episode of emotional hijack right you don't intend for that to happen but it happens anyways so you know I'm still trying to think about what I can do to help keep myself calm cool and collected every single day through the month of April we've got you know 20 trading days approximately and that means each day I've got to I can't have even one slip up because a big slip up when it comes to emotional hijacking cost tens of thousands of dollars so I need to be on my game every single day um there were a few days in March where I came in and I was sick I I spent most of the month of March being under the weather which was unfortunate I also had some days where I came in where I didn't sleep well at all and I feel like maybe I should have been a little bit more honest with myself like I'm not feeling like 100% And and you know if you go out to on a performance sport like on the golf course or on the basketball court or whatever you go out on the field and you're not 100% you know it's not realistic to have the same expectations of yourself or to try to push yourself as hard as when you're at full capacity and you know some of these things are out of our control so I think I should have done a better job sort of recognizing and acknowledging where I was at on those individual days and cutting myself a little slack and making the sort of um proactive step of applying some guard rails and reducing my size so that question I often ask did you eat well did you sleep well do you have a couple stocks on watch that you like and if you do what's the condition of the overall market so when I came in today to be honest 3-day weekend I felt a little tired all right so I felt a little tired um did I sleep well yeah but I I just still felt a little tired what's the condition of the over do I eat well well right now I have not eatting breakfast so that's sort of a separate thing but that's not unusual for me that's that's that's normal so that's fine um this is the question that I always ask people though in general so um so then do I have a couple stocks I like and I was like I like VST but what's the condition of the overall market and I'm like this is where I'm a little nervous because the last few days last week you know I had a red day Monday Tuesday and then Wednesday Thursday were green days but both days I hit my daily goal and then gave a lot back so I was like uh feeling a little guny you know a little bit nervous but I said well this is why we're going to start by breaking the ice with small size because the worst thing I can do here Monday morning at the beginning of the new month is take a big loss on my first trade take 10,000 shares on the first trade and lose a dollar a share and I'm down 10 grand that would be so emotionally devastating I would be like I will give anything to have an undo or to to you know a redo like undo that last trade like a redo but that doesn't work in the market you know it doesn't work that way so so I was very much thinking about that and I was like let's just follow the rules that I laid out yesterday start slow build a cushion once I have the cushion scale out so I kind of expected today that my um you know my position sizing would be kind of like this starting at you know 5,000 share Max size going up to a peak of 10 to 15,000 shares oops 10 to 15,000 shares depending on how strong the market was and how big my cushion was and then bringing it back down to anywhere from 7,000 to you know 3,000 shares as I kind of scale down right so these are all sort of moving targets and so I got one two three trades here got my cushion of $1,000 and then right away moved this up in this area I built a cushion of or made a profit of about um five uh I guess it was probably $5,000 and then in this area here when I was in the scale down spot I lost about 1,200 something like that 1400 whatever it doesn't really matter and so thank goodness that I made that scale down because if I kept at that size I would have given back half maybe more right I probably would have given back almost you know more than half so this is how today played out and like this is how the p&l played out which is sort of a little bit out of my control because it's the condition of the overall Market but the share size the sizing strategy position management was really solid and so that gave me a p&l where I kind of started went up and then came down just like a little bit right just maybe like that and I would say that's okay so trade one trade two trade three Trade four trade five trade six seven 8 something like that right so this is a good day I'm happy with this type of p&l um and I want to try to do it again tomorrow so all I have to do is sit down tomorrow with the same intention that my first order of business is building the cushion building the goal right sorry building the cushion not the goal and doing that with small size now if tomorrow let's just say I start with you know my 5,000 share Max siiz cap and on my first trade I lose 250 and then my you know second trade I lose another 250 I'm down 5 00 on the day and then I have a winner and I'm up 700 am I going to increase my share size here or I'm up net 200 no I'm not going to increase my share size if I if I if I can't even get myself up ,000 in profit there's no reason to increase my share size right if I'm already struggling but if I could start to get the cushion you know first trade second trade then that's when I'm going to move the size up try to scale up and then the question of when to bring it down right now is something that I've kind of struggled with because as I was was saying for the month of March I had a couple days where I felt like I was you know in the zone so I was continue to trade aggressively and then it was like a rug pull and I gave back more than half in one trade so for right now based on time of day I'm bringing the size back down just knowing that my window is closing and if I make a mistake I won't have time to recover and it's as simple as that so this is kind of a good way of making this a little bit more systematic with my scaling and hopefully that is able to keep me so I'm constantly trading you know from a position of confidence starting with small size can give me confidence because I break the ice or if I lose it's not a big I'm not rattled and then if I'm doing well leaning into it and then easing off towards the end of the day so I can end the day strong because even though I gave back a little bit on those last three trades like I've already said that when I have a big red day I can for be totally like I forgot about within like 2 days so how long do you think it's going to take for me to forget like three little losses off the top I'm going to forget about that within like two hours right it's gone so I just have to be able to sort of lock it up set it aside and move forward now one thing that um I do have queued up for myself is on a day where I'm feeling a little bit more emotional I got a couple of guided meditations that I did during the the month of March that really helped me kind of calm down so I sort of have those queued up and my thought was I want to do one meditation at least one a day for the whole month of March sorry April and if I have a day where I start to get really angry I want to stop trading immediately do that meditation bring myself right back down in a way I feel like the brain starts to have this neurop pathway of like loss anger reaction and I need to interrupt that as quickly as possible and sort of develop better awareness that I'm going down that path so I can create this new pathway that's like loss walk away stop looking don't care that doesn't become this like emotional cycle so so I have a guide meditation that I'm going to be doing on days where I'm feel myself getting frustrated and I want to try to walk away earlier before I cross that sort of point in no return and then at night or maybe in the mornings I'm not sure I did the meditations um yeah at night these last few days uh but but possibly before trading if I have time um is to do meditations on patience being patient with the draw down that I'm currently in I've been in a draw down now for like 3 weeks it's kind of a drag you know I dropped to the low and I've been rallying back up so it's like one really bad week and then a couple weeks of rallying but still still net net still you know and a little bit of a draw down so I have to be patient with that also to be patient with the market be patient for waiting for good quality setups because it's possible today if we didn't have VST you know CX I'll talk about that in a second but if we didn't have either of those we would there would have been nothing to trade none of these were good for me I didn't like the prices they you know one was a buyout and like the flow it's just none of these were good now VST because the stock was up I got some trades on it but if this one just wasn't here today I wouldn't have had that profit CX I didn't end up trading this one um when this one hit my scanners at 9:05 9:00 a.m.

I already had um Built My cushion and I looked at it and it was coming right up to the 200 moving average so I thought it was going to have resistance there and I was sort of like I don't know the price is a little lower at three the float is 10 million shares it's not jumping out to me as being super super exciting and it's only up like maybe 30% initially so this is where I sort of started watching it I was like I don't know it kind of broke and sort of dropped there were a lot of big sellers right away and the tape started looking kind of thick and then when it punched higher here I was like okay well that's cool but you know I don't know I'm this is sort of gets to what KB was saying where the total range wasn't huge um but you know as the day has gone on it's continued to kind of grind higher and higher at the open I was focusing on VST uh we had a sort of bigger drop here this was a higher volume candle anyways so you know in hindsight I left some money on the table not trading it but I didn't break the ice and then sometimes when you don't have that ice breaker trade it feels really hard to break the ice when it is way up here like for your first trade so sometimes it's just like ah shoot so anyways all that was to say that um it's possible I'll sit down tomorrow and they'll be nothing that looks good and if that's the case I need to be patient I need to just be calm and it's totally okay to have a no trade day if nothing is really solid I'd rather not trade at all than take a low quality setup so I hope this has been um a helpful recap I hope a helpful case study as always I hope you hit that thumbs up I hope you are subscribed to the channel and I will be back for the recap tomorrow and make sure you stay tuned for some new episodes coming to YouTube this week all right I'll see you guys soon