Scaling into the Squeeze! transcript

What's up, everyone? All right, in today's episode, I'm going to break down my trades from the morning. There was only one obvious stock during the pre-market session, and it was the stock that was on my watch list yesterday. It was the stock that was our leading gainer after hours on Friday. B I Ya. Now, it's a Chinese company. Well, technically, it's a Cayman Islands holding company that has their operations in China.

It was up on no news, which by default made me a little nervous about it. But on the other hand, we've seen a number of no news Chinese and Singapore foreign listed securities that have made these huge moves. So I didn't want to completely write it off. My expectation was that because it closed strong in after hours on Friday that it would continue during the pre-market session. And that was correct. So let's go ahead and jump on the screen share and start breaking it down.

BYA is currently up 67% having pulled back a little bit at the opening bell. But you can see that if you took a trade on this right at 4:00 a.m., you certainly were able to do quite well. It popped up at 4:00 a.m. on continuation from after hours, then pulled back, pushed higher, pulled back, popped up, pulled back, and then squeezed right here at 7 a.m. I was watching it at 7 a.m., considering taking that trade, but the two topping tails had me a little nervous.

I was, and actually the third one right there on this candle, I was afraid that it was going to pop up and drop very quickly. So, it definitely squeezed up a lot more than I was expecting right there. But then this little pop was premature. It rejected. I didn't take any of these trades right through here. But I did finally punch it right here. So, why did I take that trade? Well, because it held up as well as it did through here.

It broke over the resistance. It came back down. It retested it, proving that 684 was support. Then it starts to curl back up here. And I thought, where's the level? Where's the line in the sand where if this price breaks, it's going to go? And I thought, well, the high right there was about, let's see, the high there was um 680. No, what was that? 7 um 756. Then the high here of day was 775. And so I was kind of looking at these areas here.

And as it started to pop up or pop up right there, let me jump on to the one minute chart first and then we'll get into the 10-second chart. I felt like it was worth taking a stab. So you can see right here we had had this pop pulled back popped up this rejected it dropped back down comes back up and then right through here we end up breaking this level and squeezing up here. So, it was right here at 750 that I took my starter.

I added at 760, added at 785. It squeezes up to 8, 8:15, 825. I take a little profit, goes up to 830, it dips down. I buy the dip. It pops back up for a second. It drops back down. I sell the rest right around 8. Then it pulls back. It comes up here. It rejects. So, now we've got a almost 2 million share candle here. We've got a topping tail. And this is kind of the theme that it pops up, but doesn't hold these levels.

Then we were unable to break through this 816 level. It made a couple attempts at it and I said, you know, I'm just I'm not going to mess around with this anymore. I feel like the theme is too well established that every time it pops up, you have a topping tail. And that means that short sellers are going to feel comfortable adding as it goes higher, expecting that flush back down. So heavier shorting, lighter volume volume on the buy side, that's going to create smaller and smaller pops until eventually it just rolls over immediately.

And that's what ended up happening. Now, if the company actually had a good catalyst, that would support more buying. But because there's not a solid underlying catalyst to support the move, uh, long bias traders are playing hot potato. We'll trade it, but we don't want to hold it for very long. And that's very typical. Hey, by the way, you may have noticed I'm wearing my green shirt today. That's right. This is my lucky green shirt.

In fact, if you tune in to the channel, you know that I find that wearing green brings good luck. And so, I wanted to find a way to wear a green shirt every single day of the week. And I figured it out just like this. Yes, it's true that uh you can be superstitious uh and still end up u being successful. I suppose uh my technique is to outsmart the superstition just to stay one step ahead of it. So, for instance, you can't walk under a ladder.

We all know that. Unless you're holding a newspaper over your head. If you hold a newspaper over your head, then that's that changes everything. See, it it this is the thing. You got to really get dialed in into what the superstition is about. You're superstitious about walking under a ladder. Why? Because you're worried that a painter who's painting above you is going to drip paint. It's going to fall on your head. And that's bad luck.

You hold the newspaper, you won't get any paint on your head. There's no bad luck involved. See, this is the way you have to look at things. You can wear a green shirt every day of the week as I am now. We've got green, green, green, green, green. And I'll put the link in the description if you guys want to check out the green shirt. I would love someday to see one of you guys walking down the street wearing your own green shirt.

And this, by the way, is my own handwriting. I took a white paintbrush, painted on a paper, and then we put it on a t-shirt. It looks great, if I do say so myself. So, with that, um, today actually ends up being a $26,000 green day because I stepped up to the plate with that one good trade. So, I had a big entry there. I jumped in, I add to the position, scaled into it, scaled out of it, and I ended up having a total of three trades through this area.

Um, and it was one winner and then two losers, but I was only up 26,000 at the most. So, the first loser gave back some unrealized profit by increasing my cost basis and I stopped out break even. Uh, so I lost on the shares I added. And then the second loser was when I was buying this dip looking for the curl back up. Um, I basically did two dip trades in here before finally giving up and saying, "Nope, that's it. It's not going to happen." So, a total of three trades with only one winner is 33% accuracy.

But because the winner was so much bigger than the losers, um that that worked. So this was how we started the week. Um you know, on the one hand, oh, and by the way, we had GVH this morning that popped up and is now down 57%. Yikes. That is a little scary. This actually had news out too of um this expanded commercial distribution to a platform with over 90 million registered users and the stock's down. This is unbelievable. now 60% nearly 60%.

I mean this is just this is kind of insane. So from the top of the move which was at $9 that was the peak uh we're down like 70 almost 80%. Yikes. So that's a reminder not to just hold these if it's not working. I just get out. I cut the loss even if it feels big at the time. I cut the loss and I move on. So, uh, yeah, overall today, you know, it was better just to focus on the one stock that was the leader, the one that was obvious.

That was at least the safer of the options. And although it didn't give me a bunch of opportunities, I missed the first one at seven, but I got this one right here. And that was enough for me to hit uh 26 nearly $26,000, which is um five times the daily goal, which is 5,000 a day. So, a solid green day here. and I'll be back at it first thing tomorrow morning, 7 a.m. So, those of you guys that want to check out my twoe trial, link is also posted in the description.

And hopefully I'll see you guys in the morning. Reminder, as always, trading is risky and my results aren't typical. So, manage your risk by practicing in a simulator before you ever put real money on the line.