After GameStop Yesterday, an 850% Short Squeeze Today! transcript

All right, well, here we are, Tuesday morning and we just had a stock that went up over 400% which is incredible. Now, if we think yesterday, GameStop, that was a big move, but it only went up about 80%. Now, the big difference with GameStop is that it started at 27, 28 dollars a share. So, it went up like 20 dollars a share and that's a really big move. It's not as much in percent, but it is in dollars per share. So, today, the stock that gave us a big move is right here, MLGO, and it's even surging higher right now up to 475%, but here's the thing that's a little bit funny about this one.

It's putting in big green candles, but then it goes into these periods of chop. So, basically, you get like a few big green candles, like right here, right here, and then you get a lot of chop. Then right here, and the thing is, if you miss this candle and you start trading it in here, you're just going to trade the chop. You're not going to make money. So, this whole area here, super choppy. This area here, super choppy.

And this has been doing this kind of price action all day long starting with the first move, which was great, and then we went into another long period of just choppy price action. So, a lot of traders really struggled with this one today because if you miss the big pops, then you're just chasing and trading during the churn and the chop, and that's not where we make money. So, you know, the fact is, the type of price action that we really like is when we have these kind of sustained, really like stair-stepping patterns.

Uh you know what I mean? Like, we get the move up, a little bit of pullback, a move higher. Because with this, even though the move up is pronounced it with these sort of large green candles, the pullbacks are nice bull flags, nice sort of orderly patterns, and we feel confident with that setup. So, you know, just to sort of zoom in on this one for instance, what this looks like is usually a couple of big green candles getting bigger, and then you've got a couple of candles to pull back, like one and two, and maybe three, whatever.

And then you start the next leg higher, right? And then again, this repeats. So, this is a pattern that we can get really dialed in with buying this pullback right here. But when we look at MLGO, that's not really what we're getting. We're not getting this clean stair-stepping pattern. We're getting a little bit more of this erratic pop where it squeezes up like a dollar a share, and then it just becomes really choppy.

Okay, so let me break down for you where I took my first trades on this. I got in um I I wasn't sitting down at 4:00 a.m. this morning, although as it turns out, if I had, I might have been able to get a nice trade as this went from $2 to 3, 4, all the way up to 550. Again, only $5 a share relative to the big move we saw in GameStop, dollars per share not as big, but percentage definitely pretty substantial. But then it just goes sideways 6:30, and at 7:00 a.m. we sell off.

We come down. Now, this yellow line you'll see here, I drew at about 9:15, and I did that connecting um right here and right here. And I did that because I was visualizing potentially support right in this area. I was looking for ascending support off of this level, and that was actually my first trade. So, on my very first trade today on MLGO, I bought right here on this pullback at 502 off ascending support. It then squeezes up here to a high of 540, and I took my profit, but then it flushes down.

It then pops back up, but flushes a second time, and at that point I was like, "All right, this is too choppy, right? We just got a rejection here. This is This is just too risky. And then a moment later, it rips and halts up, and I missed it. So, then I'm like, all right, shoot. Well, now it's halted up. What do I do? So, my game plan whenever something is halted up is I watch the resumption for a dip and a rip. So, what that means is I look for the price to resume, dip down, and squeeze back up.

So, right here when it resumed and dipped down, I tried to get in at about 650. I didn't get filled. Jumped over my whole order for which is a 5,000 share order, and it goes straight up to a high here of like 770. It drops down. I try to buy one of these dips here, and it pops up for a second and then drops down again. Pops up for a second, drops down again, pops up for a second, drops down again, and I got out break even.

So, I was like, darn it. Basically, we had, you know, three nice candles, and now it's just chop chop chop chop chop. Right here, we get this jackknife. It pops up and then flushes back down. And then it rallies back up. And when it comes back up and goes to 850, it pulls back and it bounces off eight. And I said, if it can hold eight, it's holding the high of this previous resistance point. So, I do a dip off of eight.

It pops up to like 815, 820, but hardly anything. Then it flushes down here to like 760, bounces back up, and I was like, this is just too choppy. And I saw a bunch of traders saying they're getting chopped out of on this price action. And then all of a sudden right here, you get this jackknife right there. So, again, it pops up, jackknife flushes down, and I was just like, you know, this is not trustworthy. Now we've seen kind of two nasty jackknife moves, and then look at that.

It just curled up, all of a sudden punches up here, pulls back, and then pushes even higher up to 11. So, I'm truly impressed. I mean, I I I'm impressed because despite these jackknife candles right here and right here, it's rallying back up. Now, sometimes in some markets, I will try to buy off sort of the support level of these pullbacks, but just the way this was trading, I just didn't get a good feel for it. I just I don't know, you know, so anyways, um now it's halted up here at 10.90.

However, it's showing right now a $9 resumption. Now, I don't know where it's really going to resume. But imagine if it actually resumes at nine. That's like a two-point gap down. Right? Talk about a rug pull. So, I'm up a thousand bucks on the day. It's nothing to write home about, but you know what my focus is? It's hitting base hits and being consistent. I traded three stocks, I'm green on all three. I feel like I've done my job.

I would love if I'd been able to get myself up five, 10, 15,000 on the day like I did yesterday on GameStop, but on my first trades today, well, I just kind of was breaking the ice. So, let's go back while this is halted to my first trade of the day. So, very first trade of the day back here was actually on news and it starts popping right around 8:30. This is the pop right there. So, when I see a stock with news popping up, especially when the float is under 1 million shares, I'm usually pretty quick to jump in.

So, it it pops up right here to a high of four and it dips down right here and then as it dipped, I got in right here for the break over four and it ends up popping up just to about 4.20. It can't go all the way back through the high and so ended up getting out basically break even on 2,000. Well, I guess it was about 10 cents. Up $184. So, you know, a small winner, but not enough for me to feel like I'm really in the driver's seat.

Now, you guys know, my daily goal is 5,000. So, I did a good job yesterday. It was three times that. Uh but today, not even close. And that's all right. My first line in the sand is to get myself up over $1,000. Once I'm up over 1,000 bucks with a maximum of 5,000 shares. So, when I start trading each day, my max cap is 5,000 shares, and I won't exceed that until I'm up over $1,000. And sometimes there's a couple exceptions, but I won't get into those right now.

So, just generally, this is the way I trade. So, today, I started first couple trades 2,000, 3,000 shares, breaking the ice. I was thinking if I can get a couple of nice winners here, I'll be up 500, 700, 1,000, then I can start increasing my size. The reason I do this is because it's a strategy for risk management. So, that means I start each day at, well, zero, right? I'm at zero each day with a max size of 5,000 shares, and a profit target ultimately of $5,000, but first goal is to be up over um 1,000, which we'll just put right here, 1,000.

All right, so that's sort of the first goal right there. So, when I'm starting at zero on the day, this is where I'm exposed to the most risk. Because if I buy, let's say, a 15,000 share position, and I lose 30 cents, I'm going to be down $4,500 in the red instantly, right? Now, that's I'm now $10,000 away basically from hitting my daily goal. So, instead, because the risk of loss on the first trade is real, and I could have a loser, um let's say, for instance, I get in this at um you know, I I take a position, and I'm in with um you know, 2,000 shares.

It drops 30 cents, I'm down 600 bucks. It's easy to recover from that loss, no big deal, I'm not going to sweat it, right? I can easily rally back up. Or if I have a winner, then next thing you know, I'm up $600. Next trade, I take with a little bit more size, I make another 600, 700. Now I'm up, you know, $1,300, something like that. At that point, I take my max cap cap off, and with a cushion, I'll trade more aggressively.

Now, if I go back to flat right here, I put the cap back on, I reduce my risk. But if I keep moving up, then I start taking a little bit more size to increase my profits. And so, basically, my goal is that on any given day, my P&L looks one of two ways. If I go red, it looks kind of like this, where I have a couple of steps down, but I don't go down more than about $2,000. But if I go green, I start small, and then I allow myself to start taking bigger size.

So, this is capping downside while allowing my upside to grow. So, that's kind of my approach with these and uh with trading in general. So, when I took my first trade on SG um BX, you know, my mentality on it was, well, let's see if I can get 20, 30 cents. And then when I couldn't, I figured, all right, I better um better slow down, better reduce my risk, and um you know, look at the next trade and just be cautious.

Next trade comes up and I trade MRIN. Same thing, basically a break-even trade. So, then we're coming into the open on MLGO, which is now up 670%, which is really incredible. This is when things This is when emotions come out. You get a lot of emotions. Be mindful, though, when you have a divergence there of volume declining as the price goes higher, cuz that's when you can sometimes get a uh move the opposite direction.

So, nonetheless, uh so MLGO, on this trade down here, I only bought 1,500 shares as a starter. I just said, you know, I'm not up that much on the day, we're coming into the open, let's be cautious. So, on that first trade, I made, I think, 300 bucks on it. Right? So, you know, a nice little winner, and at that point, I'm up 500 on the day. I didn't have a lot of profit. So, I was I wasn't working with a cushion and then I gave some of that back up here on one of these rejections in this chop.

And then, you know, I was able to make my way back up to up what is now, you know, $1,000, but I never really got myself in the driver's seat today. And so, I asked myself a question. I said, you know, And for what it's worth, I got myself up to $1,000, actually 1,100, and then I went to up only 200. And at that moment, I was like, do you think you should walk away here before you go red because you're clearly stair-stepping back down.

And I took one more trade, which nearly was a loss, but it ended up working and I got myself back to where I sit right now, which is a thousand. And at that point, I said, you know, I think you kind of just had a close call. I think it's time to walk away. And this is all about exercising discipline. It doesn't matter what happens after I leave, the focus is managing risk, minimizing drawdown, and you know, on days when it's hot and and on days when things are really connecting, I'm in the green pre-market near my daily goal, and then I just keep squeezing.

I just keep sort of leaning in and riding that momentum. Unfortunately, today, it just it just didn't happen for me. You know, we ended up getting these moves, but I didn't time them right. You know, this was choppy. It finally pops up, but then it rejects, didn't hold, and then I missed this leg higher right here. And I am sure that I'm not the only one who got frustrated with this chop, left, and then missed this big move.

But the worst thing that I could do right now is get back in like right here at $11, have it flush on me, or you know, something really stupid like that, and all of a sudden now I'm red on the day cuz that's when emotions get really big. So, you know, today's a day where we ended up getting a nice move around 10:30. That's something to take note of. Ended up going up nearly 700%, which is phenomenal. Uh but we also have to remind ourselves that we've got resistance on the daily chart right here at the 200.

So, we're coming into resistance at the 200. Uh if we could break over it, then you've got a lot more room. But, you know, for right now, it just feels like a day where um I don't know. Uh it was just a little choppier. So, for whatever reason, this one uh for me was not super easy to trade, even in spite of it going up 600, 700%. So, hey, you know, you win some, you lose some. And at the end of the day here, I'm walking away with a little more profit than I had at the beginning of the day, and that's always a good day.

Base hits, it's early in the month, and like I said, you know, some days it just connects. You know, you swing, you get a hit, and next thing you know, you get more than a base hit. You're having a really nice, big, green day, and you lean in, and you ride the momentum, you catch the squeezes, and you're doing well. And today, you know, my P&L, well, I wasn't able to get a squeeze on the P&L. That's what I was looking for.

All right? Going from 500, 1,000, 3,000, 6,000, 10,000. That big squeeze in the P&L. Wasn't able to get the squeeze today. Today, it just ended up being, you know, kind of up and then back down and then up and then, you know, just It was just choppy. So, maybe I, you know, coulda, woulda, shoulda put my entire account on MLGO today, but, you know, it's all about managing risk, and if you can't manage risk, then you're not going to make it as a trader very long.

You might have a couple of lucky trades, but then you'll be gone. So, doing this um as a career requires an ability to detach yourself from the emotion of FOMO that you'll get when you see a stock that makes a move like this, and just remind yourself there's always going to be another one. So, those you guys that had FOMO yesterday over GameStop, well, today we had this. Who knows what we're going to have tomorrow? So, don't worry about missing stuff cuz there's always going to be other opportunities.

Just focus on trying to be a good trader, trying to manage your risk, take it slow, and not overstay your welcome. Those of you guys that want to watch me trade in real time, come on and join us for a 2-week trial. I'll put a link down in the description. I'll pin it to the top of the comments, and I'll remind you, as always, that trading is risky. My results aren't typical, so take it slow, manage your risk, and if you enjoyed this episode, I hope you hit that thumbs up and subscribe to the channel.