Biggest Squeeze of the WEEK! transcript

all right everyone so we're going to go ahead and jump into it I've got a case study for you bdrx was the ticker this went up over 35% today which is a pretty solid move this is actually I think the first case study that I've had maybe in over a week although I've had a couple of nice trades nothing has really stood out as being quite worthy of a case study until today what a nice way to finish the week all right so bdrx this is our biggest percentage mover today so we're going to Jump Right In um Step One in these case studies as always I walk you through how I find these stocks so the way I found bdrx was using my stock scanners and someone asked a really interesting question today they said Ross do you think you should consider getting a Bloomberg terminal so we can get the news faster since it seems we're mostly trading breaking news and it's true that we are trading breaking news but getting news faster is not helpful and I know because I tried it I used a service that I think it was like $700 a month and I won't name it because it was way overpriced I wouldn't recommend it to anyone but it was a streaming service where I could get breaking news headlines super super fast the fact is I didn't know what to do with them so here's the problem if you were the first person to get breaking news the stock hasn't started moving yet so you need to be able to read the news and understand within the context of that company if the news is good bad or indifferent and then take a a position now for me you know news would come out on a company and and it could be you know a small cap company that's like partnership with Amazon and you're like oh that's great news and then the stock declines why is it decline that's a great headline well maybe a week prior they put out the headline that they're launching this partnership with you know $4.5 million of of you know kind of to ramp it up and then this headline comes out and they're launching it with only 400,000 so it's like unless you knew the context of that specific story and headline for that company to be able to instantaneously react you're not going to be able to do it and so this is totally okay and the good news for us is that we don't have to spend the money on all those expensive news Services what what I do instead is I want to see what is moving so I don't try to jump in something ever that's not already moving I don't do that I wait for the first wave and then I jump in so once I'm waiting for the first wave I'm just waiting for the stock to start to hit my scanners because these scanners in real time are searching for those waves they're looking for something that's moving and it's got to be moving up at a certain rate it's got to have certain characteristics and then when it meets all those things it's going to hit my scanner it's going to trigger trigger an audio alert and I'm going to run across the room if I'm standing over there over there as fast as I can I'll knock down my kid's Legos that he's building I'll trip over the dog doesn't matter because I got to get here in front of the computer because at that point now I need to to act a stock has hit my scanner and clearly is worth looking at okay so bdrx first hit my scanner at uh about $1 a share this morning and when it hit my scanner it was already up you know 50% on the day like it it was squeezing up instantly and so I said all right well what's the headline on it so step two I've got to identify the Catalyst right so we got to figure out what's the Catalyst that's driving this stock higher check the news so what I saw on bdrx was that we had a headline um down here uh on a a licensing deal that was the the headline that really got it going okay so we had news and that's all I needed to see I didn't need to understand the context of this headline the market was filling that in for me by simply the fact that the stock was already up 50% right so that's all I needed to know the headline I don't even bother reading it all I need to know is that the stock is moving up therefore it's worth watching okay so step three is to look for an entry on the chart now some of you might look at this chart and think this is this is ugly this is terrible but just like a raccoon looks at a dumpster and sees opportunity I look at a chart like this and I'm thinking this is this is something I can actually work with so what you see is the price has declined um you know pretty pretty in intensely over the years we've got this big drop back back down and then it kind of settles out down here so this is what I call a turnaround story you have this big selloff and this is a stock that has a potential to reverse off the low so I don't mind a beaten up chart like this I I really am totally okay with it in fact the fact that um it's got these reverse splits right here and right here this again just sort of signifies to me that the stock dropped down they had to do a reverse split to get the price back up and it's continued to be really low okay so no issue with the chart so then the next step is to look for my entry right and I'm doing this primarily on the one minute chart now the problem with this stock was that as it was squeezing up um it really didn't want to pull back it pushed higher right here and it hit a high of about A123 and then it dropped to A1 four so it dropped 20 cents 19 cents which is a significant amount it's 20% on a stock that's cheap and then it bounced back up to a $130 and then it dipped back down here again so it was really jumping and bouncing around and I was like man I don't know and you know what's interesting is as soon as these candles started to pop up you know who we saw big sellers 15 20,000 share sellers instantly came out on the level two so someone was ready to sell for me when I see someone's ready to sell that quickly it's a caution flag I'm thinking this is not good either someone knew the news was coming or I don't know I mean that's really what I generally conclude but uh in any case someone was quick to sell so it it it g there so there's a couple of spots where I could have taken a trade and I ended up um hesitating the first was at 120 and I thought no I can't trust it because it just dropped to 104 the second was at about 135 and it did pop up to 140 and then the next spot was right here for the break over 140 I was watching it and I was like this could work but I'm not sure and I didn't take it it ends up popping in 150 and then we had the first red candle form so when this first red candle formed I initially was sort of like thinking you know you see this red candle right here I'm thinking um we've had one two three four five green candles in a row the volume is is really strong we've got nice buying volume I sort of thought this might be a bear trap where you have the first red candle there and then boom it surges higher and that is what happened but it immediately reversed back down it did not hold this level so since it wasn't able to hold this level um you know I kind of changed my my Outlook on it a little bit oops sorry um oh sorry so I changed my outlook on it and I sort of thought you know I I I'm gonna I'm G to kind of um pivot here on this and instead of looking for the continuation I'm just going to sit on the sidelines and I'm going to wait so I sat on the sidelines I waited it ends up curling back up right here to 170 it dips down it comes back up again and I'll show you where I took my one single trade I only took one trade on this and where I bought was right down here golly this has gotten a little bit of a big drawing tool that's okay I'll I'll fix in a second so it was right here and it was as um the macd was curling over so I was looking for that macd to curl and when I saw it curling I was like okay this is the time for me to jump so I jumped in right here as the macd was curling right here at about 162 was where I took my starter I added at 165 I was looking for that quick squeeze through 170 you'll see right here it tapped like 171 and then it flushed back down so I ended up selling right up here now I did have to break uh one of my rules here to take this trade which I'll share with you in a second um unfortunately at the open we got this nasty rejection girl what are you complaining about you got nothing to complain about girl can you hit the road sorry she's she's a little vocal right now I got to check to see if there's anyone here anyways uh before I let her out because she is a watchdog okay so um so anyways we pop up here we reject at the open um so I didn't take any additional trades on it I only took one single trade and uh so this is the rule that I had to break I knew on this stock that with my cap of 5,000 shares wasn't going to get much because this is a cheap stock and it's not moving that much we talked about this um on a trade maybe was last week or the week before I said how you know it's kind of funny because I'm capping myself at 5,000 shares but maybe two weeks ago on Friday so exactly two weeks ago we had a stock that I was trading cap of 5,000 shares but it was like $25 or $27 a share and I ended up losing four grand on it because well I mean it was expensive so 5,000 shares times $20 a share you're talking about $100,000 in the position right so it was a big position relative to the price and then on the flip side when you have a stock like this 5,000 shares is only $7,000 it's really not a lot of capital and I didn't think that realistically I was going to get uh 20 to 30 Cent Winners on this so I said I think even though I haven't broken the ice yet and I'm not up over a th000 I think for this I need to increase my share size in order to make the most that I can in this very narrow range so what I did was um I increased my cap uh I I just took it off I have a 5,000 share cap on the account um and 5K and I just took it off I lifted it entirely and as it curled up right here I used 5,000 share blocks and I bought uh I pressed it three times so I had 15,000 shares as it squeezes up I added another 15,000 shares for the break of 70 which gave me 30,000 and I was looking for the squeeze through 170 um three the pre-market high and I was hoping back on mine Target that we would go through 175 and 180 and I could scale out as soon as we came up to those levels uh what ended up happening was we rejected and I ended up selling at 168 for basically 3 cents of profit on average now three cents of profit is not a lot typically uh except uh in this case when you have a position of 30,000 shares in which case you've got $889 of profit so that was my profit on um bdrx it's nothing that exciting if I'm going to be honest um you know I got one trade on it I was looking for that vwap curl or the macd curl I was hoping this would squeeze back through the highs but it wasn't able to and then at the open we had a lot of selling but by that time I was already out of the position and today being Friday being the end of the week and being uh what has been a slow week my expectations for today were set pretty low so if we take a look at my week um in total or we look at the calendar here for the month of April um obviously have not imported today's trades yet uh but we'll only be up about $66,000 this week so this has been my worst week of the month right here here uh but I really have no right to complain because it's still a green week best week of the month was actually the first week got off to a nice start uh and again actually the first week I didn't break my $5,000 daily goal on any day just three solid days in a row right there you know put me kind of in the driver's seat and then a couple small green days second week of the month small day on Monday above the daily goal on Tuesday above the daily goal on Wednesday slow on Thursday red on Friday this was actually the day I went down 4,000 and recovered to being down only 656 so that was a good recovery but my wor this was my worst day of the whole month um small green day Monday here when I was in New York City another Green Day Tuesday in New York City another Green Day Wednesday in New York City this is the day I was up 10,000 gave back too much off the top Thursday small green Friday no trades sat down didn't see anything I liked $9,000 last week this week Monday was the best day $ 3500 Tuesday small red day that was the worst it got I didn't go lower and recover it was just minus 1500 recoup most of that on Wednesday small green day on Thursday and it'll be a small green day here on Friday so sitting I guess today um as we sit with uh technically one two red days but this is a small red day after fees and commissions um almost positive so about three red days this month um and yeah ending here just kind of slow as we come to the end of the month um you know but but look I mean there's nothing I can really do about that this is something I mentioned earlier today if the Market's cold well what what can I do right I mean if it's cold it's cold what I am in control of is how I participate in this type of Market do I want to be really aggressive do I want to trade all day long do I want to push really hard and just step up to the plate no that's not the right approach in this market in this market I got to play defense I've got to kind of hunger down down I've got to lay low I've got to kind of wait in the tall grasses but when I see an opportunity pow I got to strike get in quick get in get my profit get out and when we start to see all of a sudden I'm getting these like you know 2,000 3,000 $4,000 types of winners then I'm going to start to size up so when the market is giving me that feedback I'm going to lean in at that point I'll be aggressive but for right now it's time to just keep my head down keep it moderate and just try to stay consistent because overall I think what you could say about this month right here with uh $42,000 of profit so far is that I've been very consistent this has been a really consistent month so if we look at the year in total um it's not the most profitable month of the year uh let's see January was uh 36,000 so it's better than January uh February was 131,000 that was a great month and March was slow uh 20,000 I had two red weeks in March so I guess it's the second best month of the year uh as we sit right now February was the high water mark which I hope to be able to um break at some point this year but uh in any case you know this is kind of where we're at January decent February fantastic March tough uh April better but you know March could have been better if I hadn't um gotten so darn aggressive on these two days right here this cost me $30,000 in two days I was up 31 ,000 on the month so if you had taken out those two days it would have been $50,000 month and it would have been my second best month of the year I got too aggressive on those days and I push it a little too hard on this day this is a successful red day so if you watch the episode that I uploaded um I think it was last weekend I talked about the importance of successful red days if you cannot learn how to have successful red days you won't make it long term's a Trader so make sure you check out that episode another episode I upload recently is how to trade dips I think you'll really enjoy that I've also got um my Audi book that I uploaded and I want to thank you guys by the way who purchased a copy the a of the book whether you purchase a physical copy or you purchase the audio book you can buy the audiobook for $10 and I'd love for you to do that but you can you can listen to it here on YouTube uh the only thing is when you get it on Audible or um apple or whatever obviously there's no ads so that's a little bit of a better listening experience but if you want to listen here on YouTube by all means we appre I I appreciate it I really do so please um you're welcome to and I'll remind you guys um as I had mentioned earlier in the week uh we've got our 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