Breaking News Sends A Stock Up 222% in 15min transcript

What's up, everyone? Welcome to day 13 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today is another green day, but the small account didn't do as well today as it did yesterday. Yesterday was awesome. Huge green day, biggest green day so far of the challenge. And now here's the thing. The market was really hot, and yesterday I felt a little frustrated because I didn't feel that I made as much in my main account as I should have.

In part, because I was focused so much on the small account. Well, you know, that's the way it goes. So, today I put the focus on my main account, at least at the beginning of the day, and I crushed it. A big green day in the main account, and that's a great way to finish the month of June. So, the small account kind of got the short end of the stick. I traded in it, and I made some money in it, but because it wasn't my primary focus, I didn't do as well as I probably could have.

That's all right, it's another green day. I've got to be grateful for that. And as a reminder, all of the profit from these small account challenges is being donated to charity, and each time you guys hit the thumbs up on the episodes in this series, I add an extra dollar to how much I donate. We're at $342,000 right now. Earlier this week, I donated $5,000 to Children's Hospital of New Orleans, and we are now just about at another $5,000 increment, which means I'll be donating to another children's hospital.

So, let me know if there's one that's near and dear to your heart in the comments below, and I'll see if I can make that one a priority for the next donation. Now, let's look at today's trades. So, this morning, when I first sat down, day 13, our leading gainer was up over 200% from an after-hours move. The ticker is JEM, Gem. So, lower priced stock from a dollar up to two dollars, pulls back at 4:00 a.m., goes from a dollar 70 up to 360, pulls back right here, and goes all the way up to a high of 410.

So, the way I traded this one, um well, so actually I did trade this one in my main account. I didn't trade it in the small account. So maybe for the small account recap, I won't get into those trades. But we if we look at this chart, we can see clearly we had a stock that made a big move. Right at 7:00 a.m. it had another pop from three up to four, a little pullback. So it's kind of doing this trend of popping up, pulling back, going sideways, then breaking out, pulling back, going sideways, and then breaking out again.

So this sort of set the stage this morning that we had some stocks, this was one of them, that had already made some pretty big moves. Then we had this ticker SVRE hit our scanners. SVRE, it's an Israeli company. They've got an acquisition tied into the military space. With everything going on in the Middle East, this is the type of catalyst that could give this stock a boost. So it ends up going from $4 right here when it first hits my scanner on light volume all the way up to 650, up to seven, up to eight.

Now I missed the beginning of that move. I mean it just happened so quickly. Right here from $2 all the way up to high of 650, it pulls back, goes up to seven, pulls back, goes up to 750, does a little rejection here, and then when it rallies back up right here, I got in on this pullback. And on that first trade, I only made 200 bucks. And I was a little bit bummed out. Well, I can only afford so many shares. It's a little more expensive.

So I got in, I got out, $200. Then it pulls back here, I bought the dip off of eight looking for that push higher, and it popped up to 850, but then didn't break that level and go back to the high. So I got back out. Made another $200. It pulls back again, and then when it comes back up, I take one more trade looking for that squeeze through eight and 850 and nine. It doesn't break, I jump back out, and I had a third trade of about $200.

So the total profit, $616.19. Getting in, getting green, getting out, and I've now got over $16,000 in the account. Now, since I funded the account with $2,000, that means I'm up to about $14,395 in profit so far. Now, it's it's rounding a little bit. It's pretty darn close to that, though. So, that means my account is up 719%. I've taken a total of 33 trades. I've had 26 winners, seven losers. So, today I had three more trades.

So, that helped boost my accuracy versus where I was as of yesterday. So, the accuracy of 78%, you know, I would say that's pretty solid. I'm going to pull up my Trader View reports here and I'm going to show you my main account. With my main account, I take more risk. I can I'm comfortable doing that because I've got a bigger account size and I've I've been trading long enough that I know even if I take some losses, it'll it'll even out, you know, over the long haul.

So, this was just for the month here of um I guess May through June or the last 30 days and my accuracy has been about 68%. So, my accuracy is a little bit lower in my main account, but I also reduced my quality standards a bit. So, if we jump onto the whiteboard, one of the things I've kind of noticed with trading is that if you focus on only trading A quality setups, you know, you just trade A quality setups, you know, you may be able to maintain accuracy around uh you know, 78, 80%.

I've been able to. Oops, sorry. I'll just do the percent and then I'll do the zero. 80%. This is trading, you know, A+ quality setups. Now, this is in a hotter market. When the market cools off a little bit, your accuracy might decline, you know, down to could even be 68, you know, to 72% in a bit of a colder market. But, generally accuracy hovering in this area. You start introducing B quality setups, and that's going to be a stock that meets four out of my five pillars of stock selection, and accuracy in a hot market is a little bit lower and a cold market dips down more.

May Maybe, and I'm just estimating, you know, maybe this is um you know, 65 to 75% and the cold market might be 55 to, you know, 60% or something like that. Then you start introducing C quality setups. Those are stocks that only meet three of the five criteria. And in a hot market, you might be able to get away with it, but in a cold market, you don't. Maybe this is 55 to, you know, 65 and then down here is like 45 to, you know, 50, something like that.

So, where's the cutoff on profitability? Now, I probably didn't draw this chart exactly the right way. But I I you know, I would say for the A quality setups, I'm profitable regardless of hot market and cold market. For B quality setups, uh down here, you know, this is where we may kind of get into the cusp of not really making money, sort of down in this area. And in here, you know, it's well, you know, even in a hot market, it you sort of drop off a little bit sooner.

So, you know, this is Again, this is a very unusual graph. I don't know why I did this like this, but um there's kind of a line here where um sort of anything below this line is, you know, sad face, you're losing money. So, we'll add a couple tears there. And anything above this line is, you know, happy. You're making money. So, in a hot market, in order to introduce more trades, you will trade B quality and C quality setups because that's just going to be more money.

Yes, you'll have a blended average of, you know, maybe for me 68% accuracy, um but it's worth it. But you need to be able to adapt because when the market cools off, if you keep trading these low quality setups, you're going to end up taking unnecessary losses. So, the ability to kind of uh feather your trading and sort of you know, be light on the throttle and it so to speak, where you get more aggressive when it's hot, introducing more trades, trading bigger size, and changing your quality threshold, and then scaling back when it's cold, that's a level of touch that a lot of beginner traders aren't able to master.

So, it's better just to focus on five pillars and just stick with that until you've had a long period of consistency, several months, and then start experimenting with some B quality setups. And then maybe you get down to here. So, for me in the small account challenge, I'm still staying really up at the very top of just trading the best quality setups because I feel like you know, I I don't want to take unnecessary losses.

When you've got a small account, you know, your back is kind of up against the ropes. You've really got to be managing your risk properly. And you know, one big loss that could happen when you trade a C quality setup, um you know, could wipe out weeks of of great progress. You know, if I took a uh one of these trades with big size and I lost $5,000, I'd lose 30% of my account in one day. And that could easily happen trading a C quality setup.

Even in a hot market. So, for right now, I'm focusing on quality over quantity. So, although I may not be growing the account as quickly as if I was introducing more B quality setups and just trading a bit more actively, I'm happy with the progress so far and I think this is the right way to grow a small account. For those of you guys that want to keep watching over my shoulder as I do this challenge, if you want to watch live while I'm trading, we've got two-week trial that you guys can check out.

I also let you guys know yesterday that our 4th of July sale is currently underway at Warrior Trading, which gives you a special discount on our Warrior Starter and our Warrior Pro memberships. But before you become a full-fledged member, you can do a two-week trial. See what it's like to be part of the community. Go through some of the classes. And if you like what you see, then join using the 4th of July coupon code before they expire next week.

So, if you come over to our members dashboard here, as a student going through the classes, you'll have access even when you're doing the two-week trial to the first six chapters of Day Trading the Basics. This is going to walk you through my foundational course that teaches you the strategy that I'm trading every single day. This is where you want to get started. You want to begin with day trading the basics and then get into strategies and scaling, which is part of our Warrior Pro membership.

While you're going through your 2-week trial, you'll have access to the charts, the scanners. This is the window right here where you see that. And for those you guys that become full-fledged members, you'll also have access to a trading simulator, which lets you practice these new strategies you're learning in a safe environment. So, let's say GEM right here, I want to jump in that with 1,000 shares. Boom, shift one, I'm in 1,000 shares.

I want to add more, I keep pressing that button. Boom, now I've got 6,000 shares. What am I looking for? Well, let's say I'm looking for the break over $4. Now, it's the moment of truth. Is it going to break over four? Seems a little heavy. I'm going to bail out, control Z. Sold the whole thing on the bid out at 390. And so, this is where you practice. Now, you want to look at your metrics, you go pull up your aptitudes, your daily performance, and you can actually see what you're trading and where you're doing well and where you need to put in a little bit more effort.

So, we'll look at the aptitudes right here and you could see the profit loss ratio, the accuracy. Now, this is where I kind of just messing around. So, my accuracy is only 31% here. I really got to get focused, but that's fine. If this is where you're at, then it's a good thing you're in the simulator and not trading with real money. So, oh, and I should probably have updated my charts here for GEM. All right, so with that, I will see you guys back at it first thing tomorrow morning.

I'll remind you as always that trading is risky. My results aren't typical, so manage your risk, take it slow, and always practice in a simulator before putting real money on the line. I'll see you guys streaming at 7:00 a.m. tomorrow morning.