Day Trading GameStop, AMC & Meme Stocks transcript

all right everyone so we're going to get into it a big day today in the market I think it's safe to say that Meme stocks are back in play at least for now but usually these are the cleanest at the very beginning of the move and then they start to get choppy and crowded and it's easy to overtrade them and give back profit so today I sort of felt like I got a strike while the iron's hot yesterday there were a couple of areas where I felt a little disappointed that I didn't step back up to the plate but I stuck with discipline which was good and definitely a successful Green Day even though I didn't get a really big win like I got today so what was different about yesterday and today well yesterday if you recall some of my first trades were early pre-market and at that time when I was trading GameStop it just didn't really pull away in a big way and then by the time it finally did I didn't want to chase it because the spreads are larger and I just knew I could get stopped out very quickly and and take an outsize loss and coming sort of off of a big loss last Monday a week ago yes yesterday I was like just be careful don't get yourself into a jam CU I was grateful that I had made back most of that loss by the end of the week so I didn't want to go deep in the red you know once again Monday morning so I was a little more conservative yesterday than maybe I needed to be but nonetheless uh GameStop uh yesterday if we look at the chart and let's see we'll just pull this up here this is a five minute chart so we peaked this morning at $80 a share which is wild yesterday if we go back to to this area where we were trading around 23 24 we had this sort of nice squeeze right here at about 700 a.m. it started to pull away it pushed higher and then it kind of pulled back it squeezed up into the open sold off high volume selling on this candle and that red one and then it does a red to green and rips up into multiple halts going up and I just didn't want to chase it so you know left some money on the table on that but what I ended up seeing was uh yesterday later in the day after hours I was like all right well H look at that creeping up after hours so what do you think it's going to do this morning so I I kid you not this morning at 4:15 in the morning I happened to wake up I rolled over and I was like you know what time is it 4:15 I was like well maybe I should check the market real quick so pulled up my phone checked the market looked at GameStop and saw that it was up in the 40s and I was like okay okay that's good to see so this was like 4:15 in the morning so it's pushing higher up to 44 so I was like all right no that's good that's good to see that's what we wanted but this is a little too early for me to trade granted the volume here was it was fine 300,000 shares on the first candle another 400,000 on the next one and the next one so you've already got a million shares 15 minutes into the day by 4:15 a.m. there's a lot of Traders in different parts of the world Europe you know so on so forth that are trading and uh probably you know not just Europe but anyways there's there's these coach traders that get up super early but regardless so this is a very hot stock that everyone's talking about and by the way what started the move was Rory and kitty posting a meme on Twitter just a meme one Meme and all of a sudden that one post it's it's really wild so anyways um you know but the fact is I think the short interest is around 20% um high enough that you know now you've got some people that are underwater short and 20% when you've got a float of you know 200 what is it 69 million shares is a solid 50 million shares that are short right 50 m 50 million Shares are short on this think about that for a second every dollar a share it goes up $1 a share if you're holding $10,000 shares you're up 10,000 bucks if you're holding 50 million shares $1 shares $50 million so this is a collective of all the short sellers out there but on a 10-point move they're down $500 million so 50 million for every dollar share goes up so this is a multi-billion dollar loss for people who have been holding short and 20 million uh or those sorry 20% are short which is about 50 million shares that at least that's what it was about yesterday um so anyways so this morning 4:00 a.m. it starts to squeeze up I sit down around 6:30 at my computer and I was thinking all right well let's see what it does coming into 7 a.m. because 7: a.m. is when retail Brokers come online the only PE most people trading here are trading with Boutique Brokers um institutional Traders but this isn't going to be most retail Traders so retail comes online at 7:00 a.m. and so I sat down 6:30 so I could watch the the that move at 7: a.m. and right at 700 a.m. we get this first kind of Pop right here so if I go back to my very first trade I got in um as it started to pull away right here and we're going to go to the 10-second chart on this it starts to squeeze and initially I'm like oh gosh you know it sort of similar to yesterday I sort of hesitated it sort of starts to move higher and I was like oh man I'm I'm sort of missing this move so it pushes higher here pushes a little bit higher pushes a little bit higher it dips right here and then it goes High it dips right here and this is kind of silly but it dips right here and I was like you know what I'm just going to take a starter on this um and I bought this dip right down here let's see let me just check the high of this candle so I just want to make sure I give you the exact right time so it was yeah it was right here so on this candle right here I bought this dip at $7.96 I bought a th000 shares and I add added another th000 and I added another 500 as it started to squeeze up as it goes up here and I'm up to 59 I'm up $2500 $2,700 I go to sell I'm like nice trade solid I feel good about that right nice nice solid little trade so I'm like happy with that and what happens my order is rejected so I put the sell order out well I guess it's not exactly rejected I put the sell order out and well let me show you the video I actually I did a video of it which I did because I kind of knew I was like you know what if I have to go to the exchange or someone and say hey this is what happened I want to make sure I've got a video of the trade so let me grab this video here um so this is around 7 7:15 a.m. okay so this is what it looks like here so I added on this position and you see how the Orange is sitting there in the the order sitting there in Orange so my order's sitting there and I can't do a thing I can't do anything the order is stuck it I can't cancel it I tried to cancel it it won't let me cancel it I tried to log out log back in that's not doing a thing I just can't do anything I try to press the sell button you know just to like get out I can't sell because I've already got one sell order that's already out if you have two sell orders you're going to go short so I'm just sitting there holding 2750 Shar at 5811 and if you if you watch this you'll see it is right now I'm down3 $3,300 and so I'm kind of like I'm super frustrated here I'm trying to cancel it won't let me cancel and I'm thinking what am I going to do here you know this is this is a major problem so the first thing I do right away is I email the service desk at Lightspeed which is my broker I emailed them and I said hey guys you know what is going on I can't I'm stuck I can't uh I can't sell this position I've got my I have an order out but it won't let me sell and then immediately I got on the phone I called them and they're like okay um they pull up my account they look at it they're like yep okay we see what's going on um hang on hang on one second um what do you want us to do you want us to get get you out and I said well I put out my sell order at 50 whatever it was um you know I put out my sale order and I want that sell order to be filled because the price went above my order so yeah I'd like to get out at the price I actually put the order at at a time that it should have filled and they're like okay um well let me call you right back so I'm like all right so I'm sitting here and I can't do anything so it ends up going all the way down to $54 a share so I'm holding let's just Round Up 3,000 shares so I'm down uh about four points on you know 3 ,000 shares I'm down about $12,000 on this thing and it comes back up here for a moment to 56 drops back down to 54 comes back up to 57 I'm just holding there's nothing I can do I'm just sitting here holding this thing and um then I see inside my platform they po sometimes I'll post announcements and they posted an announcement inside the platform um let's see it's kind of like funny if you see right down there at the bottom there's that yellow so they posted in announcement right here and they say don't use Edge X or ARCA or they had like a couple routes they said don't use those routes right now they're broken so well it's like okay uh and then um so then I'm sitting here and I'm just you know waiting I keep trying to cancel the order and log out log back in nothing happened nothing happens and now it's going up and I'm like well thank god at least at least it's going up and for what it's worth um this is how I wanted to trade it so what I wanted to do was um so let's go back here I took this little micro pullback uh right here going up to 60 and I tried to sell and I should have been up you know 2,000 bucks on that trade it then pulled back and I was watching this area for an ABCD pattern so right here it pops back up it pulls back so I was watching for the break back over 57 right here for this squeeze back through 60 so I would have gotten probably $2,000 of profit on this trade whatever then I would have been getting back in here for the break of 57 but I didn't want to certainly didn't want to add to the position because I knew that I I didn't even know if I'd be able to sell what I already was owning so I was just like I I just am going to wait so it ends up doing exactly what I wanted it to do here it breaks through 57 it goes up to 60 and it squeezes through 6364 and this is when they called me right here and they said yeah we're having a routing issue um we can manually sell for you do you want us to manually sell or do you want to keep holding and I was like sell it if I can't choose if I can't trade on my own then yeah just just sell it so they sold me out at $64 right here and I was up 16,000 bucks it ends up going higher as you could see and so this kind of annoying because it did end up going higher and I mean look I just I wasn't comfortable holding through this whole pullback right down here and so I was happy to get out and then as it goes a little higher I was like all right well let me let me change all my hotkeys so I changed my hotkeys to use the route that they said was working I then tested with one share buying and selling orders went through no problem so now I'm like okay you know I guess now I'm going to be okay to trade so as it comes up to um 80 it pushes up here to 67 ends up making this nice push up to 80 um right in here I was looking for the break through 80 and at this point I was like you know I'm looking for a move up to 85 maybe we're going to go parabolic to 100 so anyway so I took a trade right here for the break of 80 it ends up as you could see dropping so I took a loss on that and although I got back in for a dip I didn't make back as much as I lost so I took a few trades on it and I ended up giving back um about 3500 off of the 16,000 that I made from that kind of ridiculous trade comes back up to 80 but it can't break it it drops again pulls back and at the open I got my last trade on it so at the open I was expecting profit taking I was expecting selling because I thought that anyone who was holding from yesterday who doesn't know how to trade pre-market is going to sell at the open so at the open it halts down once twice three times and then it comes down here and after the third halt I got in at $47 and about 25 it halts up once it halts up twice so we got a nice bounce here off the low um but I only did it with 250 shares because I was had already given back a little bit of profit and I was like uh I don't know so anyways made back a little bit of what I lost but that was my last trade on GameStop now because GameStop halted up I then started watching AMC AMC had halted down in tandem right they trade sort of together so this had halted down once and twice so I bought at 9 sorry $887 it halts up at 924 it ends up going all the way up to150 so on that one I made $1500 $1,700 decent little trade and then there was ctnt C TNT hits my scanners and and by the way there was a trade here on cost a trade on Mullen a trade on hoo these are relatively small wins but I'm green on sixs six stocks because we had some serious momentum today so all of a sudden ctnt hits the scanner and I'm looking at it and I'm like all right well it's moving up and I had just gotten a couple other trades I had a little bit of cushion so on this one as it starts to pull away it goes from two up to 250 to three and I'm like all right this thing is moving so I get in and this thing goes to 350 to 4 it prints a high of 650 before dropping back down I couldn't believe it I took my profit off the table I was like that was insane at the open it ends up curling back up I got another trade for the break over um 450 We Got A Squeeze here up to 5 to 534 something like that uh sorry it was right here I mean this was really wild and the thing is once I actually checked the news which I I wasn't looking at when I took my first trade on it I saw that the news was that they priced an offering so I'm like wow this is crazy they they have offering news and the stock goes up 500% so that was insane and it's still holding up right now 24% so this was wild this was wild spwr um also wild almost traded it but missed this this sort beginning of the move right here uh then we had Plug Power these are kind of slightly larger floats so to answer a couple questions one why was I trading stocks that are above my typical float I was trading them because they were volatile because they were moving they were moving very quickly they were very liquid now it's true that Nvidia and Tesla can also move very quickly and and be pretty liquid but those are also quite expensive and so I don't usually like to go that high on price even GameStop is pretty expensive for me but I did break the ice you know and I so I ended up getting some trades on it not that I honestly did Super well on it but anyways I mean whatever all's alls well it ends well it just was a weird thing with the the order but uh you know so because we had the volatility I was willing to trade some of these but plug the float was just simply too high cost the float is low it is easy to borrow however um AMC 270 million share flow something like that similar went to 300 million same as Gamestop these ones are more thickly traded but trading around halts we've got so much volatility it felt like there was opportunity and it made sense so you know I stepped up to the plate now it's true that I'm trading right now in my big account so I've got about $300,000 in this account there was no leverage on GameStop so I couldn't use any leverage on it not that this account has leverage because it's a retirement account it doesn't but even still there there was no leverage so I was only able to trade with the cash balance but $300,000 would have allowed me to take a Max position of you know 6,000 shares or you know something like that depending on at the prices so I I could have taken bigger positions than I did um I capped myself on that first trade and I never traded more than that on on GameStop most of my positions were small um ctnt biggest position was about 5,000 shares maybe 6,000 I didn't go big on anything today didn't really need to we had a lot of volatility we had range that's what I look for I was able to trade it I was able to come away in the green so you know now as we look at the month of of uh May here all of a sudden one day has you know obviously changed the month pretty substantially I mean it's it's the power of you know showing up every single day which we have to do because we just never know you know when we're going to have a big day I had a $99,000 red day last Monday right that was my red day uh had recouped it by the end of the week and then I didn't import yesterday's trades yet but those weren't um super substantial but now all of a sudden I'm going to have a jump here up to you know way up to here right this is 60,000 this is 70,000 so all of a sudden it's like you know right back in the swing of things nice big uh Green Day today and it's I'm grateful for it um I just you know I can't complain and I don't want to overstay my welcome too much because I sort of like once the fact that GameStop halted three times going down to me was too much all I was expecting was a deadcat bounce basically got more out of it than I thought we would get but I don't I didn't expect to go back to the highs after selling off that much um BTO popping up and you're going to see stocks that are juicy today you know you're you might see some big moves like this looks like this is a IPO um but manage your risk because like what we saw with ctnt we've got some roller coaster price action there's some fomo in the market and so people are trading with more emotion and with bigger size and you can see some big swings during that environment I saw someone today who said they went from their biggest red Day Ever to their biggest Green Day Ever that can easily happen on a day like this when we have this amount of volatility so the best thing to do is to size down a little bit for me I also recognize that my emotions kind of you know I got activated because because of the fact that I had this crazy Fiasco at the beginning of the morning I've been trading with light speed for a long time I have never had something like that happen now I've seen them put out announcements to Route away from certain orders you know it happens from time to time but I've never just never been in a trade and had an order that I couldn't cancel um it it well it actually it happened one time before and it was related to an internet issue that I was having on my side I was trading um in this cabin in Maine and anyway so I that was my fault that was an internet issue but this was this was something different um so you know and I also saw some people today complaining that thinker swim was lagging on them so you know the first week now everyone's moved over to thinker swim from TR from TDM trade now with Charles Schwab and we go into this you know Meme stock era again or or little moment of time and super high volume tons of trading billions of dollars of volume on GameStop and AMC and the platforms can't all support it they start to crack under the pressure under that load and so there were some issues there some other people were mentioning on other platforms so you know the the the issue is if you all of a sudden use all your buying power and go in on one of these at like the high of day and then you go offline for 15 minutes you could come back on it's down 15 points and and that's scary I mean trading is hard but you know it's it's it's it's hard enough without having these Tech issues but they do happen from time to time so it's something to be aware of it's something that um you know I would say on a day like today just maybe mitigate risk with slightly smaller size because emotions are running High among all the Traders out there including me so anyways uh finishing the day $2,352 green is good I'll be back at it first thing tomorrow morning and uh those of you guys who are tuning in on YouTube I'll put the link down in the description for the twoe trial if you haven't already checked it out twoe trial $20 gives you access to charts scanners my broadcast the chat room everything else and you'll get um a selection of classes from the warrior Pro curriculum we call it the pro preview the warrior Pro preview so I hope to see you guys in the community and I'll be streaming bright and early tomorrow morning all right reminder as always trading is risky my results aren't typical and there's no guarantee you'll find success where you trade in your own learn from me so may add your rest take it slow and I'll see you in the morning