Biotech Stock Squeezes Up 300% On Breaking News (Biotech Sector ETF is +37% Year-to-Date) transcript

What's up, everyone? Welcome to day 42 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Day three of trading inside my mobile command center, a Sprinter Mercedes Sprinter van with satellite Starlink on the roof, solar panels on the roof, and the battery bank right under this bench here, so I can trade from pretty much anywhere that I can drive to and have a clear view of the sky.

Today was a challenging day. It was the inverse of the last two days. In the last two days, I was green in my small account, but I was red in my big account. And in a large part, it was because I was prioritizing my small account, and I got a couple really nice trades in it at the very beginning of a move, but because it's a small account, it didn't really make all that much money. The big account, I ended up stepping in and beginning to trade once the stock was already quite extended, and sort of the easiest, cleanest patterns were already over, and so then I ended up going red in the big account, and I was kind of frustrated with that.

And as I sat coming into this morning, I was red on the week across the board. I mean, I the profits in the small account were not enough to make up for the losses in my big account. So, I said, "You know what? Today, I'm going to put the big account for you know, first. I'm going to focus on that one." And so, I ended up having my first trade of the day where I went red in the big account. I didn't trade in the small account that same stock.

It just didn't work, and I didn't trade it in the small account. And then the next stock that pops up was a biotech stock. It starts squeezing. I jump on it, and the thing ends up going up over 300% on this breaking news headline, and I crushed it. It was an awesome trade, but I didn't get any of that move in the small account. By the time I pulled up the small account, I was doing the same thing I did yesterday, which was trading what ended up being the backside of the move, and the small account went red.

I had a couple of losses back-to-back, which was really annoying. And I felt like I mean I was kind of laughing like this is the exact opposite of what happened yesterday. However, it was a little more easy to easier at least to tolerate because at least the big account was up so much. You know, when the small accounts up and my big accounts down it's still kind of discouraging cuz I'm still net red on the day trading in the big account with the losses and gains being larger.

So you know this just speaks to the challenge of trading you know with these two accounts at the same time, but even in spite of these challenges August has been a pretty good month, but we're coming to the end of it here. So as a reminder all the profits from these small account challenges are getting donated to charity. Today we crossed over half a million dollars of money raised for charity. And we've donated $495,000 and we did make a wish in the Virgin Islands US Virgin Islands today.

Didn't see a dedicated children's hospital there, but donated to the Make-A-Wish Foundation and so that now means we've donated to every children 50 children's hospitals across the United States plus Washington DC, Puerto Rico, Guam, and the US Virgin Islands. This is awesome. Thank you guys for helping make this possible. Every time you've hit the thumbs up on the episodes in this series, I've added an extra dollar to how much we donate.

So thank you guys for hitting those thumbs up. All right, so day 42 our top gainer scanner this morning was not looking so great. We had as you could see here cheaper stocks leading the way with a lot of volume but slightly higher floats and I just I saw this at 6:30 and I thought man, I mean I I was feeling discouraged even though I was green in the small account whatever Monday, Tuesday, Wednesday this week because I'm was red in the big account and I dug myself a bit of a hole.

I felt like I've got a drawdown and I don't I'm not going to be able to recover it on any of these. I don't even know if I should even bother today. Um but that's not the attitude that you want. So, of course, I came over and you know, got in the van here and got my charts up and running and powered up that Starlink. And um the the first stock, well, so I'm going to go over the small account challenge for Well, I'll do I'll do the big account for just a second.

So, my first trade in the big account uh was actually on a Japanese ticker LGPS. And on LGPS, this stock comes out with news of an acquisition right here. Um I you know, I wasn't really sure it was going to work, but what I liked about it was that it popped up and was suddenly holding over a dollar a share. And this is a very similar pattern we've had in the last couple weeks where we get this sort of rising um uh um momentum, increasing volume, and then suddenly we break away and boom, we get a huge candle on Socket.

It went from $2 to about $4 or $5 a share. On uh that other one, I can't remember the ticker now, it went from about $2 to $18 a share. So, I jumped in it right here about $1.42 for the break of $1.50. And we were saying, "If this breaks 6575, I'm adding for the squeeze through, too." It didn't. It dropped. Ended up going red in my big account and I lost $2,500. So, that was my first trade of the day and did not trade that in the small account, uh which was fine.

And then we had PPCB. This was now at 8:30. So, I waited it, you know, about an hour. PPCB pops up on the scan. Initially has light volume, low relative volume, but is quickly increasing in volume as it's moving higher. It has a catalyst right here. Um and so, I do my five pillars of stock selection. The stock meets five out of the five. It's already up over 100%. Eight times relative volume. Yes, it's got news. The price is fine.

Float is under 20 million shares. And this was this rapid squeeze here from $1 all the way up to 350, 360. It pulls back, pops, pulls back, then it breaks 340, goes up to 440, dips down, comes back up, and ends up kind of going sideways. So, here's the deal. Ended up making $47,000 total on the day with nearly $50,000 of profit in my main account PPCB taking a higher risk entries right here as it was breaking away. Adding right over two into 250 into three and getting profit into the squeeze.

And then right through here getting back in and getting out into this breakout right here. And I think I I had did have a trade there and it didn't work. Gave back a little profit, but that was okay. So, in total I did really well in my main account. But in the small account, I ended up trading what ended up being more of the backside here and here. And so in the small account, I actually ended up losing on this stock.

Let's see, what's my total P&L? I'll show to you right here. $323.09. So, I'm down 300 bucks. All right, it's not the end of the world, you know. But it's a little discouraging. And then we get another scanner alert here, YMT. It goes from 440 to $5. And what was interesting was the moment that hit the scanner, it it was like almost the exact moment um PPCB started dropping. And sometimes when that happens, what we see is attention shifts.

So, PPCB drops right there and YMT pops up. And so as it YMT pops up, it ends up going up to 450, it does a micro pullback, and I got in there with 2,000 shares. It ends up going up to a high of $5. I'm in, I'm out, I get in, I get out one more time, and I lock up $739.38. Now, if I had had the day completely inverted where my first trades were all in the small account, I crushed PPC B in the small account and let's say I made like $10,000 on it.

And then I, you know, got a um And I I okay, and I had a small loss on that Japanese stock, but whatever, I'm still up like 9,000 on the day. Then I'm like, all right, I need to make a, you know, some profit in my big account. So then I'm trading PPC B on the backside. And in my big account, I'm probably down like five or six thousand dollars on it, you know, doesn't work. And then I jump into YMT, but I trade it with bigger size, and that one popped up for a second and then flushed back down.

It was easy to get in and out with 2,000 shares, but doing that with 20,000 shares, I probably would have been at another loss. And today probably would have been in another, you know, 10, 15,000 dollar red day in the big account. So, this definitely speaks to the challenge of, you know, kind of trying to like pick and choose your trades. Oh, I'm going to take this one here, this one there. In fact, um uh I I was uh playing a game of Monopoly um on this camping trip, and I was pretty discouraged um you know, that I lost quite badly.

And my strategy was to wait and save my money to buy the highest end properties, but I kept not landing on them. So I kept not buying anything. And then eventually, all the properties got bought by other players in the game, and now I'm just paying rent to everybody, and I I sort of realized, you know, gosh darn it, I just I I I can't recover from this. And no one wants to trade anything with me, and so I end up losing all my money and I go bankrupt.

Right? So, picking and choosing is really tough. Um You think you're going to wait and wait and wait and just take, you know, and you're too patient and then you miss the whole move. And so it is important to kind of break the ice on some of these, start to build a cushion or break the ice and if you lose, then you just you get out and cut the loss quickly. And all of that is a lot easier to do a small share size, which is why the small account is in pretty good shape even though I was only trading the back side of the moves, whereas my main account, when I only trade the back side of the moves but with bigger share size, I really don't do well at all.

So, you know, kind of interesting um you know, observations there. But in any case, wrapping up day 42, only about $400 you know, $79 to go before I cross over $100,000. And I just need to cross it and hold over it. So, that'll be the goal for day 43. Thank you guys as always for tuning in. If you want to check out two-week trial, the link is pinned at the top of the comments and in the description. But I'll remind you as always that trading is risky, my results are not typical, and there's no guarantee you'll find success whether you trade on your own or you learn from me.

So, please manage your risk, take it slow, and always practice in a simulator before putting real money on the line. With that, I'll see you guys back at it bright and early tomorrow for day 43.