The Game Plan is Paying Off! transcript

What's up, everyone? All right. Well, when I was getting dressed this morning and I picked out this shirt, I said, "I need the green. I need it today." If there was ever a day I needed green, it was today. It's my first trading day for the new month, April. I'm glad it's in the history books because it was not a clean month for me. As many of you know, I started the month in the first three days by going red $75,000.

I spent the next three weeks of the month just recouping those losses and finally finishing in the green, but it was the worst month of the year. So, I was really hoping I could get May off to a good start. I did not take any trades on Friday. I took the day off because I wasn't feeling well. So, today was my first day of the new month, and I had said in my game plan episode yesterday that the focus was not taking a lot of trades, taking trades on anything that was moving, taking lots of stabs at things.

No, the approach would be waiting for something that really meets all five pillars of stock selection, waiting for a good setup, and then swinging hard. It doesn't mean I'm trying to hit a home run, but I don't even want to swing at something that I don't feel like has the near certain potential of at least giving me a base hit. And I got more than a base hit today. I'm up $46,96753. What a great way to start the new month, the new week.

All right, we're in good shape. So, let's go ahead and jump on the screen share and break it down. CNSP is the stock that I traded. And this one squeezed from $2 a share down here all the way to a high of nearly $11. As of right now, it is still up $314%. This is great. This is good momentum. It is no doubt the leading gainer in the market. is the most obvious stock. And so when the leading gainer and the most obvious stock is also a stock that fits within my five pillars of stock selection, that's when things get exciting.

What are those five pillars, you ask? Number one, price. I do the best between five and 10, but between two and 20 is the big the range where I will focus. Two, number one is price. Number two, uh needs to be up at least 10%, which this is, and of course, this is the leading gainer. Number three, relative volume should be at least 5x. The relative volume on CNSP as of right now is, let's see, go full screen on this. 28,000 times above average.

Wow. So, I need 5x. This is 28,000 times. That's awesome. Um, number four, I always prefer a news catalyst. I can trade without it, but I prefer it. This one had one, and it was a private placement, which is a good catalyst. We'll talk about that in a minute. And then the float on this one is 731,000 shares. So a very low float. Now these are my five pillars. However, there's also some things to be aware of. This is a stock that is a biotech stock.

All right, that's a little bit of a juice factor. You know, biotech stocks can get extra attention in the market. Number two, it's a stock that's been beaten up for a long time. It's been really oversold. So now finally, it's getting a bounce off the low. That's a nice technical setup. you know, this all kind of came together today to be the perfect storm. Now, granted, uh I mean, I had a $56,000 green day a couple weeks ago.

This isn't like it's a, you know, this isn't the biggest green day I've ever had. It's not the biggest green day of the month. It's not even the biggest green day in the last, you know, two weeks, but it's a solid day. And one of the issues that I had with this stock initially was that when it first started popping up, it moved very quickly and on very light volume. And that could be dangerous. So here, look at this.

So it these candles look funny because of how quickly it went. So it goes from 250 down here all the way up to a high of 340 up to 440, back down to 340. That's a dollar a share drop, right? When you get a drop that big, that's scary. So you get that big squeeze then all the way up to five, all the way up to 660, then back to 477. And so when I was seeing those swings right here, I didn't take any trades. I said this is too risky.

The total volume in this area 100,000 shares. So I was aware of the fact that this was definitely our leading gainer in the market. So I was like all right leading gainer that's good. But I didn't feel comfortable taking a trade in that area. I was just too nervous. I felt like the risk was too high. So it goes all the way up to 660. It drops back down here and then it starts to kind of curl right through here. So, you can see how it sort of curls back up and then it pulls back and then it curls back up and then it pulls back.

I didn't actually break the ice on this. My first trade was at about $6.20 and let's see. My first trade was right here. That was where I took my first trade. Just that little pop right there. The way I was looking at this was all right, we'd already had this move, but it was on light volume. We pulled back, sort of rising back up, right? So, I I kind of felt like, all right, I'm just going to take this next little pullback right here.

And that was the little pullback I traded. And that first trade for me was a $2,000 winner. I jumped in with about 11,000 shares. I got about 20 cents of profit out of it. So, $2,000 of profit. It pulls back. It comes back up. I add back here. I'm adding for the breakthrough seven. We get squeeze all the way up to eight and boom. Now, I'm up 15,000 on the day. It does a micro pullback and then it goes up to nine. Now, I'm up 25,000 on the day right there.

Wow. All right. That happened quick. Then it pulls back. It starts to roll over and I think, "All right, maybe that's it." Then it dips down right here, as you could see. And I took this as a double bottom. So, I bought this double bottom right here, and that gave me a bounce from eight all the way up to almost $9 a share. That added an extra $15,000. And that put me up 40 grand on the day. My next trade on it was um let's see, as we squeezed up to 11, which took a few minutes.

Um let's see. So, we'll go on to the one minute chart here. So, one minute chart, first entry, second entry, um third entry on the double bottom dip. And then here, I got the next trade as it pulled away right there, but only made about six or $7,000 on that final trade. So, I did have 100% accuracy on this one today. Winners only, no losers, which is good. I didn't take too many trades. I mean, we've got one, two, three, four.

It might have only been four trades. Let me just go back and look. So, one, two, it's a little hard to tell because of scaling in and out. I have, let's see, one, two, three, four, five, six areas where I was at. Seven areas where I was adding, but some of those I was still inside a trade when I was adding. So, in any case, probably four or five trades total and uh pulled some really nice profit out. Now, after this peak right here, notice topping tail, topping tail, increasing volume.

MACD goes negative. Then the MACD flips right here. We get this second push higher on what ends up being sort of an inverted head and shoulders pattern. Not perfect, but again, that topping tail, dips back down, flushes hard right here. Not for any good reason. It just was a little extended, consolidates at VWAP, curls back up, and I said, not really interested in trading it in this range. If we can break over 1082, I like it for a move higher.

But in this range, I'm not that interested. And it's still in that range. So, could we break over this high and and start to open up and clear out? Maybe we could. But at this point, unfortunately, now that the bell has rung, we have halt levels, we have stop orders, we have market orders. And so, that's actually creating bigger swings, more volatility, and not in a way that I feel that I can safely manage my risk. So, this is going to be one of those stocks where um I did the best on the early side.

Sometimes we'll have stocks on the early side where I don't do as well and it's a little bit later in the move that they finally start to pull away. But for this one, um my profit for me was really on the earlier side and now it's gotten a little bit more rangebound. It's not continuing to grind higher. I mean, on the other hand, it's still holding up relatively well. It's up 300 plus percent. So, it the longer it holds up, uh, you know, eventually shorts may cover and you get that squeeze, but I I still think that the sort of instant gratification of jumping in and out within, you know, five minutes and getting that huge move um is more appealing to me than trying to time a possible maybe break through the high right in this area.

Again, I I it may end up working. And this is going to be one of those challenges where I have to remind myself that it's not about making evos trade. It's about walking away with profit. Knowing the power of knowing when to quit, when to walk away, this is a great book. Um, for those of you guys that are interested in learning more about that topic. When it comes to trading, we all struggle with knowing the right time to walk away.

And many of us have good days and then we overtrade. we give it all back and we regret that we didn't walk away sooner. Other times we don't walk away. Um, other times we walk away too soon and then we see a stock run, you know, maybe this goes up to $30 a share and I think, "Wow, I I'm a [ __ ] I can't believe I I stopped when I did. Why didn't I keep trading it?" So, it's definitely possible as a trader to feel like you'll never win because you can always judge yourself and say, "I could have, should have, would have." And so if you create a system and you follow the rules of that system fairly consistently, right, you you know, you walk away at the same time every day, you you know that if you have more than x number of um you know, whatever losing trades that that's when you're going to that's when you're going to stop.

You know, the to me that makes a lot of sense. Um just to focus on having a set guideline, a guard rail that this is when I walk away. it's three red trades, right? Or it's um you know, it's after I've given back half my profit. And for me, I didn't need to give back half my profit today to know that it had been about an hour since my last trade. And I thought, you know, I I think that it feels like the market's kind of speaking to me that the opportunities are just thinning out and I don't want to overtrade.

So, I'll keep trading if it's grinding higher and if it stops going higher, then I'm going to stop trading. And so that's kind of where I'm at here today. So I would say this is a great start to the week, a great start to the month, and this approach that I have right now of not trading anything at all unless I really like it is working well. So I'm going to continue with this. And now I just have to be hopeful that there could be a stock every day that I like this much.

There probably won't be. Um it would be a phenomenal month if this were the case. But uh but that's okay. uh even if I have a no trade day tomorrow, but then another great day on Wednesday or Thursday, this could end up being a terrific week. And I think that's going to have be how this becomes a great month. So, nice job for those of you guys that got a piece of CNSP. I'll be back at it streaming first thing tomorrow morning at 7 a.m.

So, reminder as always for those you guys um who haven't already checked out a two-eek trial. During the twoe trial, you can watch over my shoulder as I'm trading. You can see my position window. You can see my orders window right here. So you could see exactly where I'm getting in, where I'm getting out. And you have access to this software here so you can adjust your charts, your scans, uh your news feed, and um you can actually have all of this with real-time market data.

So make sure you guys check out that twoe trial. I'll put links to a couple couple recent uploads right here that you guys might enjoy for those you tuning in uh on YouTube. And I will see you back at it tomorrow morning at 7 a.m. Reminder, as always, trading is risky and my results aren't typical. So manage your risk, take it slow, and I'll see you guys first thing tomorrow morning.