We got a SHORT SQUEEZE +183% transcript

well I'll tell you today was a bit of a roller coaster I started in the red recouped to Green went back to red and then on my last trade of the day recouped those losses and finished in the green above the daily goal in fact my last trade was a $6,400 winner and I did it in less than 15 minutes it was really a solid trade so we're definitely going to talk about that during today's recap but you know I had a little bit of good fortune today because it's not common that I'll have such a great setup and a great opportunity towards the end of my window as you probably know the Market opens at 4: a.m. eastern standard time well that's pre-market which goes until about 9:30 a.m. which is when the market officially opens stays open until 400 p.m. the closing bell and then we have after hours until 8:00 p.m. the window where I make the most money is between the hours of 7:00 a.m. and about 11: a.m. right here so 7 to 11 and really if you look at my trades my distribution of Trades looks like this a lot more trades and then we start to come back down so it's kind of you know for me to have a nice winner towards the end of this window on a day where I was already in the red I don't really expect that I was actually pretty content with today being a red day and I was just hoping it would be a successful red day uh like Tuesday so if you recall for my recap on Tuesday it was a successful red day ended up finish finishing in the red and although it was a very small loss I had fees and commissions that made the loss a little bit bigger but it was down I think total $800 on uh Tuesday so anyways coming back here today sitting down uh feels like Monday morning but it's actually Thursday morning I was looking at the scans bright and early as I often do so I pull them up on my phone and for those of you guys that um have not already done a two-e trial of um Warrior trading I encourage you to do it during the two we trial you get the scanners you get them right on your phone you can get our charts you can get access to my live broadcast and everything else and so this morning when I pulled up uh my scan I noticed that we basically had nothing that looked good I mean the scanner was really Slim the only thing that we had that was starting to move was this mg now the problem with mg is that it's a cheaper stock so let's see this actually started moving at 8:30 so this one uh yeah this began at8 30 there was another one though that was oh it was grdi grdi I think was the leader um let's see this one started this one had a pop at 5 and then popped up again here at 7: a.m. yeah so it was actually grdi not mg so grdi was the one on the scans I was noticing but it's at the same price range that I usually struggle with and to help you understand this the broker that I use uh I have to pay for my routing now and I'm I'm going to explain this because I'm going to sort of compare here um commission uh free trading so no commission trading whatever and then commissions on the other side here so if if you trade with commission free broker the way they route your order is you put in a 10,000 share order and you're you're the client so you put the 10,000 share order in and what they do is um let's see how do I draw this so uh you've got the broker here you've got the market here so this is the actual Market NASDAQ New York Stock Exchange Etc and then they have what are called um wholesalers so wholesaler over here and so what they do is they take your order and they send your order to the wholesaler the wholesaler then possibly sends your order to the market or if they can match your order internally they give the shares back to the broker who gives it back to you no commission right this is a commission free trade your trade actually doesn't go to the market but in this case the way it works is that if you put your order out for let's say a150 the broker is going to go to the wholesaler the wholesaler is going to say hey we got these shares for $149 that's a one cent Improvement and the wholesaler says hey let's do this how about we do this how about we split it four ways we keep one quarter of a penny you get one quarter of a penny this guy who just placed the order which is you the the trader gets one qu of a penny and the person we got it from gets one quarter of a penny right so the person they got the shares from and this is the payment for orderflow structure now obviously this only works when these wholesalers have a lot of inventory but because these wholesalers are providing all of the order execution for these big trading firms Robin Hood Weeble thinker swim eade Fidelity etc etc they have the inventory so at this point right now the biggest challenge with using a wholesaler is that if they don't have inventory they're going to route your your order out to the market and the time of this creates latency so you have latency which is caused by the broker to the wholesaler to the market back to the wholesaler back to the broker back to you whereas a direct route broker will send your order directly to to the market now in the past this has always been faster you send your order directly to the market and if you route your order to nsdq which is NASDAQ you will pay 0.003 per share as a fee so on 10,000 shares you're paying 30 bucks which is a third of a penny now in this relationship here you buy 10,000 shares you're actually getting a third of a penny which is 30 bucks and the wholesaler is getting a third of a penny oh well a quarter of a penny but you get the idea and the broker's getting a quarter and the other person's getting a quarter but a as you see here that's not the case when you direct route but the advantage of direct routing is speed speed and historically I have always thought that it makes more sense to have speed because when I want to get in a trade I want the shares now and when I want to get out of a trade I want to get out now so 10 plus years ago when I started trading or when I was you know kind of getting getting focused on it I opened my first account in 2001 but I wasn't day trading at that time I was just sort of dabbling anyways when I got into day trading I realized pretty quickly using Brokers like E Trade and a merit trade in those days you were paying five six seven eight even $10 per trade in commission they weren't commission free yet so at that time going to a discount broker um that was uh direct routing it was actually sort of double benefit because they were discounting commissions at you know usually between $2 and $3 per trade and yes you were paying this ecn fee in addition but it was still way cheaper than going to thinker swim or E Trade so that's when I first started using them and I'll tell you that the day that I switched I couldn't believe how fast my orders filled I I was like this is unbelievable it's almost like it's a joke like I actually wondered if my orders weren't actually going to the market if I was like somehow in a simulator because it was instantaneous it was instantaneous fills on the buy side and the sell side and from that point forward I was like this is the way to go now in 2019 when all these Brokers went commission free I was like you know what I'll give it another try so I went back to eade I tried ER trade again and I was extremely disappointed with order execution the orders were slow to fill there I had orders that took 15 20 seconds to fill now that was an anomaly well I don't want to say an anomaly that was not the norm the average order was filling within one or two seconds it was pretty quick but I was having orders sometimes that would take a really long time to fill and it was excruciating to watch the order just sit there and I'm like I want to buy or I want to sell what is going on and I kind of felt like that only needs to happen a few times a week or a month or a year for me to get so angry triggered that it's just worth it for me to pay the extra money and have the confidence that my order will fill very quickly so so at this point the reason I brought this up was because uh today I did quite a bit of trading on mg now the problem with mg is that it's a cheap stock so let's pull up mg and actually we we'll go back to my very first trade of the day which was on CM andd so CM andd was the first trade of the day this stock pops up as you could see right here and this one was kind of annoying for me because um the float is fine 3 million share float no issue there was a headline a catalyst so I'm like okay I got something to work with here it pops up as you can see right here and on my first trade on it well let me show you the 10-second chart if I look if I show you on the one minute chart you could just think I'm a complete idiot but I'm going to show you on the 10-second chart just to show you that I did have a reason for buying here so um my first trade was right here now the reason I bought there was because we had this nice move up pull back push higher and we had a shooting star candle a shooting star candle is typically a candle that indicates a reversal you've got that topping tail and then that red body right so the the fact you've got that topping tail shows that sellers pulled it back down or pushed it back down but the fact that it rallied back up I was like this might squeeze because if we break the top then it's doing the opposite of what you expect and that's where short sellers will sometimes cover so I bought right here at 2117 expecting short covering through 225 and 230 well it ends up only going up to 221 and drops back down I stop out it was a 5,000 share position on the first trade 5,000 shares at 218 sold at 208 minus 500 bucks right so that's the first trade of the day all right bummer in the red but not you know not deep red but I'm in the red so it pulls back here down under under two and then it comes ripping back up right here I end up getting back in on this dip right here and once again I was like this I think this looks good we got a pullback we're retesting support I'm buying the dip and it goes up goes up and then it dumps and I stopped out of that with a a pretty small stop of uh 5,000 shares and um about 5 cents so I was in at uh 221 I believe it was and I stopped at like 27 approximately so now I'm down about $700 on these two trades on CM andd well let's see we we'll check the p&l $755 40 is what the p&l is showing so that was my loss my two losses on CM andd so once again I'm like all right as you know when I start each day I start with at zero because I'm a day trader my account is at zero my daily goal is 5,000 my Max loss is 5,000 but I prefer not to hit the max loss if I can help it and so until I've crossed over $11,000 of profit 1,000 in profit I have a Max of 5,000 shares so first trade down 500 second trade down another 200 so now I'm down 700 bucks on the day all right so I'm going in the red but you know it's I'm keeping the losses so far pretty tight so it's not too concerning but I am a little annoyed uh next trade grdi grdi comes back up here and on this one uh it's a cheaper stock as as you can tell and I got in um right here because it curled back over vwap it retested it held and I bought at 120 and it actually pops up here to high 125 it dips down it pops back up to 130 on this I bought 15,000 shares now let me explain all right so this Mac share size is what I've been using and I apply it basically to stocks in the three to you know $20 price range however there have been a couple issues I did have one day where I took 4500 shares on GameStop and that was when it was like $45 a share that was probably not a good idea it was too much you know that's a $120,000 position and then on some of these cheap stocks are trading at a120 well 5,000 shares that's kind of silly because this is so cheap so I'm trying to be a little more Dynamic with thinking about this 5,000 is an easy number to remember but realistically if we think about 5,000 shares of a $5 stock it's a $30,000 position right for 25,000 so five so 5,000 shares of a $10 stock $50,000 position you know 5,000 shares of a $20 stock that starts to get a little pricey to be honest that might be even a little too heavy for the first couple trades so I feel like keeping those first trades in the $30,000 to $50,000 range is kind of acceptable and anyway so so took a little bigger size on that trade um but a low price stock so I'm in 15,000 shares at 120 or something like that goes up to 125 126 I lock up $700 so $600 on it so now I'm back to basically uh down slightly on the day I'm down like what is it $128 on the day right so $628 of profit on grdi red on cmnd all right tolerable so now I'm I'm keeping the loss tight still red but not by a lot Z pops up next and zpp this was um here at about 839 so it starts squeezing up right here on this move and I jumped in as soon as I hit my scanners because I was familiar with the stock and I thought that we might get some continuation on it I actually jumped in at 180 and added at 186 and 195 it squeezes up to two and it hits a high of 204 so $24 that's the peak it dips back down I take a little profit off the table at like 195 so it wasn't a huge winner but a small little base hit there it drops down pops up pulls back more then it comes back up comes back up climbs higher and goes all the way up to 225 so I was like boy this thing really is showing some strength anyways at the open it squeezes up here to 240 up to 245 up to 250 right here so now we're at the half dollar of 250 and right there I'm starting to think about taking a position now I hesitated on buying right here because as you could see there's a lot of this sort of chop it was moving but it kind of looked thickly traded it did a false sort of attempt at 250 where there was a lot of buying but it didn't break and it dips back down and then it does it again now at this point um I was sitting I had already taken some trades on mg so let's actually put a pause on this here let me go over mg first and then we'll come back to that so M um this one hits my scanners and I took my first entry to $122 which uh was another 15,000 share position so that was down in uh this area right here as it starts to pull away it squeezes up to 130 140 I book some nice profit and then on this one I got chopped out so I got stopped out right here at 150 I tried to get back in for a squeeze higher it drops back down and then at the open it was just choppy so in total on M I've got $734 of profit but it's really it's not that much so at this point in the day I was up you know 500 bucks it's a small green day but nothing too exciting and as uh zap started to pull away zpp uh although I I I should add that on mg uh because I was getting in and out I was churning commissions so every time I get in with 15,000 shares it cost me you know $90 right $90 or actually it's 100 more like 120 so you know I'm I'm churning these commissions getting in getting out getting in getting out you do that five times I am easily at $1,000 in fees and commissions today that's a lot so when I got myself back to up you know I got myself up 1,200 and then I was back to Red uh by about 100 and then at this point I was like you know really I'm I'm actually down here closer to minus a th000 because of fees and commissions and that's when Z came along so on Z this thing squeezes up puts in a really nice move and it ends up halting up I was really impressed and the thing that I took note of was that it was so strong going into this hall right here it was just like high volume it was just really impressive so on resumption it opens and basically it dips for just a second there's a little bit of red and then just surges higher and I added 10,000 shares three 20,000 share full position and we get a squeeze up to 340 up to 350 up to a high of 380 we dip down we pop back up now the thing I'll say about this position was that so I made about $6,400 right in this window right here and uh it was on three trades the 20,000 share position and then a 10,000 share position and then there was one other somewhere right in here maybe right in here the one thing I'll say on this was that the share size was heavy and this is something that you know so $3 stock 20,000 shares $60,000 position and just before I took that trade I had taken a loss on pixie so this trade on pixie got me and I made a little bit of a mistake um I meant to buy 5,000 shares but I accidentally bought 10,000 shares so I added to it and I I just had more size than I intended so when it sto when it dropped here I stopped out and lost 1,200 bucks right so with that I was like gosh darn it I didn't even mean to take that much size and that was a bigger loss it's so annoying I jumped in that even though the volume kind of light it it sort of it felt like it looked maybe similar to zpp in that it was a similar price range starting to pull away with a similar daily chart and it was just the wrong move because it wasn't obvious and I took a loss on it so that was the one that dropped me so I went red once right here so this is my first time going red and then I came red a second time right here and this was when zap came up and so punching the order for 20,000 shares right here on zap that was a high-risk move so I'm going to say caution that was pretty high risk the risk was if it I'd been wrong on it and it flushes down 20 cents I'm going to be close to Max loss here right the position size you know it it I should have been taking just 5,000 shares because this was a stock you know in the $3 to5 price range and I was basically flat on the day and I think what prompted me to go bigger on it was the fact that I was a little frustrated from this loss number one I was a little frustrated from spinning my wheels on MGO and grdi and cmnd whatever and I said you know what this one's finally moving we finally have one moving and I think that this is a moment where I benefited from um educated intuition so it's sort of the years of experience that as I saw this halting up as strongly as it as it did I just had this feeling that we were going to see another strong move and and I was right I we did we saw a move from three all the way up to a high of 380 and then I said you know topping tail we're probably going to double top at that level so I got this dip we come back we double top I take my profit I don't add into it the double top was like dead on it pulls back got one more little trade here thinking H Maybe maybe we could break through this if it's a flat top we get a little cup and handle uh and over four I'd start to get aggressive but then that didn't end up happening but I ended up having a good read on this once it started to pull away in fact usually once a stock is moving quickly it's it is easier for me to read it but sometimes by the time it's pulling away you feel like you're missing the move because you know now it's up so high and and I did miss a good chunk of that move in fact you know bttr for instance this one's hitting the scans and it's like all right it's moving maybe this isn't the best example but you think all right can I be in at the beginning of the move you see oh there's a headline here you know up to retire $10 million of debt obligations that's interesting um you know so like you start to think all right maybe I'm just one of the first people that sees this this could be a good opportunity this could be the one that makes the big move and that's a really fine line of trying to guess and predict which one is going to be the next stock that is obvious and just waiting until it's obvious if you wait too long you're going to miss the move if you're in too early you don't have confirmation and you know so that's kind of that balance that I think we're all dealing with when we're seeing a stock hitting a scanner should I jump in this one or you know maybe should I wait and the thing today was that when I first sat down I noticed that we had a number of stocks that had popped up and sold off so grdi L Lei sorry l e uh L I re Li sorry uh this one grdi this one you know popping up selling off there were a few others that did it earlier um it doesn't really matter but I sort of noticed this trend today where we are seeing these stocks popping up and pulling back and we even had it on zap zpp I mean we look at the one minute chart on this and it pops up it gives back the whole thing it pops up again drops down comes back up again pulls back back up again back below vwap side ways below vwap week and then out of nowhere just explodes and this is where I think that shorts maybe got we got a little short squeeze because it looked weak it didn't look like it was going to go and then all of a sudden it's going up to 350 380 so you know we ended up getting a nice move on that I did not expect it but um but obviously grateful for it so and then with that I said you know what all right I'm back I'm over my daily goal here which you know is saying something considering I was read twice today but let's not forget I still have fees and commissions I have to take off of this so after fees and commissions you know closer to 4500 4700 and that's still a great day it's a green day I don't want to overstay my welcome especially since it was choppy so I can take the profit off the table and also you know remind myself that we're dealing with a little bit of a holiday um you know we've got a holiday week here we had the holiday on on Wednesday so the middle of the week is is kind of a tricky time uh to have a day off because I think it it throws off a lot of Traders including myself you know we're we're like we get excited and we're going to have a nice week and then wait we've got a day off in the middle it kind of breaks up momentum it sort of slows everything down so today I was like what are we going to get for continuation from Tuesday do people even remember what was hot on Tuesday right that's what I was worried about and you know I think that that's that's the challenge with having these holidays in the in the middle of the week so anyways you know it's fine it is what it is uh in a couple weeks we're going to have uh the 4th of July as well which is on a Thursday that's a little bit better because uh on a Thursday a lot of people will just take the long weekend and you can feel I mean most of us will be like all right I I'm okay with taking a long weekend you know it's um that that's fine I don't I don't mind doing that but taking you know Wednesday uh Thursday and Friday I don't know I just I feel like I'm missing too much to do that so anyways let's see um I was going to pull up my metrics here here um we'll see if I can get these to load so this is going to be Let me refresh this page I'm still getting used to this new layout that we've got here um oh I'm going to clear this time okay so right so yeah so that was $858 in the red on Tuesday this is net of fees and commissions so you know had that little dip and you know for what it's worth I mean I had a red day back here uh June 6th and then you know kind of recovered it you know that's good but then you know not by a lot after fees and commissions so anyways having a nice green day today is is a bit of a relief because it's been a little slow you know $5,000 days $6,000 days so grateful for the Green Day overall it's been a little bit of a slower month um the best month of the year was in February and since then it's just been a little bit slower but hey you know what just grinding trying to keep my head above water trying to focus on consistency hitting those base hits if we look at the year to date here um let's see check year to date we go to detailed and we can see that's the equity curve so you know that's year-to date if we go back to 2023 just to include like a little bit of a longer stretch you know you can kind of get some context there of like all right generally sorry my mouse is funny so generally you know pretty consistent here had a little pull away um there in in March or sorry February dip down a little bit in March with a couple red days and now kind of back in the back in the groove so one of the things I focus on is consistency I pay attention to my draw Downs I try not to let draw Downs go deeper than $10,000 right now if I can help it it happens periodically but uh trying to keep those draw Downs in check so I'm never more than a couple of good days away from being back to all-time highs and I mean this is you know my account right now is at all-time highs um or I I wouldn't say my account my my total profits my account right now at light speed so this year I began um let's see I think I can do a year to date and it'll show where we're at so I just have to show this um all right so I'll just show it like this so it's not showing my account number so started the year with um $110,000 in the account currently at 366,000 so you know account is growing 254 Grand that's solid that's good percentage return uh there was someone that asked just in the YouTube um comments yesterday you know why I don't try to turn 50,000 into 100 million you know I was able to turn 500 into you know 10 million and the reason is because of liquidity in the market so just to give you context in uh you know I don't know I'd have to check the metrics but I'm going to guess that my average positions size right now is about 10,000 shares so if I wanted to be producing you know 10x I would need to be trading with an average of 100,000 shares and what you probably know about my strategy is that I capitalize on per short periods of volatility usually U associated with breaking news and my average trades are only about five minutes long so to be honest I can't move in and out of the market with most most stocks with 100,000 shares in 5 minutes easily to buy and sell that's 200,000 shares traded in 5 minutes you know some stocks like the cheap ones you could do it but a lot of them you wouldn't be able to do it and especially when you get up to higher price stocks you would just get way too much slippage so I have a strategy that works really well for growing small accounts um but it's not really good at turning you know whatever 5 million into 500 million that's just not the area that this strategy excels and to be honest um I think the the areas where people excel in that department is you know on the hedge fund side of things and they have a completely different strategy from what I do so what I would rather do to be honest is day trade my account and then I mean I should probably invest in a hedge fund that's well established take that 10 million and put it in a hedge fund now I haven't done that but that actually would be a great idea anyways um guess you got to know people to get foot in the door and I'm always riskminds like a Bernie madeof situation and you know the whole thing's gone so I just go with lower risk um long-term uh Investments because I want to see essentially a similar similar Equity curve in my long-term account as in my short-term account now granted it may be 10 million and it's growing you know 5% 8% a year but just slow and steady to me that's the name of the game I don't want to take 30 40 50% draw Downs that doesn't feel good so anyways I hope you found this episode helpful if you you haven't already tried our twoe trial there'll be a link in the comments and pin to the description so you can check that out and uh I hope you hit that thumbs up subscribe the channel I'll see you for the next upload real soon I'll take this opportunity to remind you as always that trading is risky my results are not typical so manage your risk take it slow and always practice in a simulator before you put real money on the line I'll see you for our next upload real soon