3 Stocks I'm Watching for Tuesday! (Labor Day Sales ENDING SOON) transcript

What's up everyone? All right, in today's episode I'm going to share with you three stocks that I have on watch for Tuesday morning. That's right, there'll be no watch list for Monday morning because the market is closed on Monday for the Labor Day weekend. It's disappointing. It's dis- >> [laughter] >> You know, most people are thrilled to have a long weekend. When you hate your job, you'll love having a long weekend.

But when you love your job, a long weekend is like, "Oh man, what am I going to do on Monday? I'm not going to be able to do the thing that I love doing, which is sitting down and trading." So, for most of you, and certainly for me, I look forward to Monday morning. On Friday, I'm kind of bummed out that, you know, the market's going to be closed on Saturday and Sunday. And so, as I sit here getting ready to build this watch list for you, I am left uh feeling a little bit discouraged that I've got to put up with uh the 3-day weekend.

And I also have about an 18-20 hour drive ahead of me. I'm in Canada. I've been on on the road for the last 2 weeks camping with my two sons, having a a great time, trading every day inside uh this van right here, which is Sprinter van, with a Starlink satellite mounted on the roof, two solar panels, battery bank right near here under the bench. And, you know, even though I've been kind of uh off the grid camping, I still trade for 2 hours each day from 7:00 to 9:00, roughly, because I really enjoy doing it.

For me, every single day that I sit down in front of the computer, I feel like I'm sitting down in front of a puzzle. It's and and I get so much satisfaction on each attempt to solve the puzzle. If I solve the puzzle successfully, I walk away that day with a little bit of profit. And the puzzle is very much based on um you know, pattern recognition and memory. It it's very visual. So, each day I'm looking at stocks that have breaking news, that are moving higher.

I look for specific candlestick chart patterns to take my entry, managing risk, and then hopefully to book some profit. Now, as you might imagine, not every day is a green day, but even on the days that I'm red, I don't usually feel that discouraged. In fact, I I often just feel that, "Wow, there there was opportunity today, and I kind of botched it, but you know what? I get the ball back, and I get to try again tomorrow." And that's because I never allow myself to lose more in one day than I can make back in, you know, a couple of good days, more or less.

I mean, again, there's some exceptions to that, but for the most part, that's the way I approach trading. And I just get excited every single day that I get to sit down here and the market's about to open. So, long weekends are a little bit of a bummer, but here's something that you can do over this long weekend, and then if I were a beginner, I would absolutely be doing. Study some of the big moves from the summer, because that will help prepare you for the next hot cycle.

Does that next hot cycle start on Monday or Tuesday? Well, obviously not Monday, and Tuesday? Probably not, but maybe. And whenever it starts, you want to make sure you're equipped with everything you could have possibly learned from the momentum of the last couple months, so you can trade these next big movers that much more consistently and profitably. This is also true for me. I mean, we had some great momentum over the summer, and I capitalized on it fairly well, but I could have done better.

There's always room for improvement with this attempt at solving the puzzle of being a profitable trader. There's always room for improvement. So, I'm going to go back here to June, and I'm going to jump forward to We'll just go to the end of August. And this is for my Roth IRA, my main trading account. Uh and I'm going to go to detailed, and we'll just take a big picture look at the performance of this last uh 3 months.

So, $1,118,334.64 of profit trading with accuracy of about 65% Average winners, as you can see right here, 7,000. Average losers, 4,600. Now, if we looked at this and we got into a little bit more detail, we're going to look at winners and losers. These are the stocks that you should be looking at the charts for for the last 3 months. EDHL, STI, JWEL, IPST, UTSA. Grab a screenshot if you want to. CUPR, PPC B, GEM, LABT.

These are the stocks that gave us some of the biggest moves. These are the stocks that I lost the most on. These are also worth watching to see where there was room for improvement. Are there reasons I should have avoided these stocks? Now, of course, if you go through my um recaps, you could kind of go to the specific day that I trade each of them and get even more dialed in, which you're welcome to do. Uh but, you know what I would also encourage you guys to do?

Because this is the Labor Day weekend, it also means that our annual Labor Day sale is ending on Tuesday. So, this Tuesday the Labor Day sale will end, and that means it's your last opportunity to take advantage of our special discounts on the Warrior Starter and Warrior Pro memberships. So, if you've been tuning in on YouTube for a long time, if you've done our 2-week trial at one point, and you liked what you saw but it wasn't the right time, maybe now will be a good chance for you to take the leap and become a member.

When you become a Warrior Pro member using the Labor Day sales, you'll also get a 7-day satisfaction guarantee right here, which means you have 7 full days to be in the program and see whether or not it's a good fit for you. And if it's not, for any reason, you can opt out and you get a full refund. And there's no strings attached, there's no hoops that you have to jump through. We make it really simple because if it's not a good fit for you, we don't want you to be, you know, stuck with something you're not happy with.

So, I hope you guys check that out. Um and then you could spend, you know, this weekend actually going through some some of the course content, the curriculum, and getting yourself really prepared for Tuesday morning. Now, I've got this 18-20 hour drive ahead of me, and you know, I kind of wish that I had um like a really deep dive that I could you know, something I could really sink my teeth into. Um I I I kind of don't.

Um I don't have a new thing that I'm learning right now that um I have you know, 20 hours of content or or more that I could um spend the time listening to. I suppose I could just do a live stream for 20 hours and do 20 hours of Q&A. That would uh eat up >> [laughter] >> the drive a little bit. Uh but I don't think I'm going to do that either cuz that that sounds like just making a a very long drive a little bit more tedious.

And of course, you really shouldn't be It's probably like staring at your phone while you're driving. So, for me the drive will be uh listening to my boys periodically bickering in the back of the van. Um And uh me uh fielding the question of when are we going to get there? When are we going to get there? Uh but for you, hopefully you can make good use of this long weekend. All right. So, um So, as we know, towards the end of August, uh although I had a a really good finish uh or a really good um summer, things did cool off as you can see here.

What are we doing? What's this? Um Win loss expectation. Something's not syncing up correctly here. I'm going to refresh this and see if I can get it to work correctly. Uh what am I zoomed in on a specific symbol? All right. So, we're just going to go uh we'll do uh year-to-date and then I'll just change this to June. Let's see. So, what I want to do here is just look at uh the performance for the last 3 months or so.

Uh and you can see here that I had this really nice move up a little bit sideways, a really nice move up, and a couple steeper drawdowns. Uh and we're kind of flattening a little bit right here near the top. So, before I break down these three stocks I'm watching, I want to share with you um something that I really struggle with in my trading. Um this would be the time I would usually switch to a full screen camera so you could really um cuz this I'm not going to be on the charts here.

I just want to explain to you this thing, but my setup here in the traveling trading station doesn't really work well for that. So um well, I suppose I probably could, but um in any case, I I I won't trouble you with that. It won't It won't look as good anyways. So here's here's something I've always struggled with as a trader. Taking my foot off the gas when the market cools off. It is absolutely my Achilles' heel. That I I just I go too hard even when it's slowing down and I start giving back profit and and suffering big losses.

It's always been a problem for me. Now some traders have a little bit of a different problem that they have a hard time um sizing up. They have a hard time kind of putting the pedal to the metal. That's never been hard for me. I put the pedal to the metal and I have a hard time easing off the throttle. And so often what that looks like is as the market starts to cool off, there's kind of these warning signs. You know, I'll have a really big loss cuz I take a big position, I get stubborn.

We saw that happen a couple times in August, right? We've already seen these warning shots um you know, crossed the bow here. So August, boom, $73,000 red day. But then I made it right back the next day. So it was like, all right, well, maybe that was just a bad day. Then a $64,000 red day. Well, I made it all back two days later, you know. And then couple no trade days, focusing on the small account, whatever. Uh green day, couple red days, you know, solid green day.

And and these red days were a bit more moderate right there. And then we go into September and a couple more red days. And but now the green days are getting smaller. And what I'm kind of setting myself up for here is that if we don't if we start if we continue to see the level of false breakouts that we've been seeing, um I'm not going to be able to have small green days and the red days are going to get bigger to the red side.

And so I've noticed in the market that there's this sort of blessing and curse that when the market is hot a lot a lot of traders are attracted to trading in the hot market. They're like, "Oh my gosh, there's so much moving. I want to be you know I want to be in this market. Da da da da da." And so when the market's hot, you see these traders um come in. And so during hot markets, volume increases in the market. More trading volume, right?

Because more traders are there. And what that means is that there's more liquidity. So when the market's hot, you could trade with bigger share size. So when the market's hot, you make even more money. This is the blessing. And then when the market cools off, traders are like they're peace out. They're like, "I'm done. I'm out of here. I'm taking a break." And so all of a sudden the volume declines. And that means you have to decline and reduce your share size because if you keep trading with big share size, you're going to start getting more and more slippage cuz there's less liquidity.

Which means your winners, if you keep trading with big size, will be smaller, but your losers will be bigger, which creates a negative profit loss ratio and statistically makes it more likely that you will lose money. And so when things are cold, they get doubly cold. Not only are there fewer opportunities, but you have to trade those opportunities with smaller size. And I don't like to do that. I get stubborn and I continue to trade with big size and it'll work and then, you know, I'll end up getting completely smoked on a trade or a couple trades.

And then I dig myself a deep hole and then once I'm in the drawdown, once I'm in the bottom of that the trench of that hole, then I'm like, "Well, jeez, I've had two, three, four red days in a row. I can't keep doing this. I need to put my foot on the brake or take my foot off the gas. And now I need to size down. Well, now the damage has been done, right? Now I've already given back, you know, 15, 20% and so I'm in a place where I'm more emotional.

I don't want to take my foot off the gas here. I wish I'd taken my foot off the gas like way up here, but I didn't. Now I'm in a drawdown and now I feel like the only way to make back that loss in a reasonable amount of time is to maintain bigger share size. Unfortunately, maintaining bigger share size is what got me into this situation and it's what's going to send me back down another step or another step until finally I've in a fit of, you know, emotion given back everything I made during a hot streak and I've seen traders do that and I've done it myself.

And so even though sizing down isn't what I want to do, it is what the market calls for and it is the hardest thing for me to take my foot off the gas. And again, this is a a problem that I struggle with. I don't know if it's the same for you. If it is, you know, share with me and let's see how many people also struggle with this. Some struggle with being aggressive and they feel like they just never capitalize enough when it's hot and others struggle with, um, you know, calming them, slowing themselves down when things get cold.

I struggle with slowing down when it gets cold. Although I suppose I could say that I also look back at the hot period and think to myself I should have been even more aggressive than I was, especially in light of how cold things are now. I wish I'd been more aggressive to be able to, you know, add more profit. So I think we're all somewhere on that spectrum, you know, between being very aggressive in our disposition with trading or very conservative.

And I tend to be on the more aggressive side, which generally speaking has benefited me really well, but, you know, I have gotten into these periods where I end up having, you know, bigger drawdowns. So, if we do like a year-to-date on my P&L, you'll see that, um, this year overall, we got to go over to detailed and then win loss expectation. Right now, I'm sitting at 2.1 million, 66% accuracy, $5,000 winners, $3,000 losers.

That's year-to-date. So, this is my P&L year-to-date. And you know, look, I'm not going exactly steady. I had some periods of underperforming, some periods of overperforming, a little bit under, you know, that that's just sort of the way it is. Let's look at last year-to-date. Last year year-to-date. So, no, just sorry, last year. So, last year um was a bit more like this, underperforming and then a really hot period, and then kind of slow, really hot, and then we kind of slow down.

And I think this was when I took a $173, like a $200,000 loss right in there. And you know, that was a bummer, and it took a little bit to recoup that, and that happens to me. I mean, I take, you know, six-figure losses, and I, you know, look, I take it on the chin, and I reset, and I'm back at it, you know, the next day, but I try to remind myself that if I keep going that hard, those losses are just going to multiply.

So, I say all that because I I want you to know, wherever you are at in your career, that even someone like myself who's been doing this for a long time has areas where they might struggle, and I certainly do, areas in need of improvement. And I think that that um it is helpful to know, so you realize that you're not alone, and that being successful doesn't mean you suddenly get rid of all of these flaws, or all of these, you know, traits that you have that might lead to loss at times.

It really, being successful just means that more often than not, you are able to walk away before it gets too bad, and you're able to rebuild um, you know, with some degree of composure. And again, all of that is on a spectrum. So, now as we look towards the week ahead given how slow it was last week, and you know, we just go back to the calendar, last week was really slow. So, we're in this, you know, really slow period right now, which is a little discouraging.

So, what should we expect for Tuesday morning? Well, I think we should expect that things will continue to be slow for the time being. We don't know when there'll be another stock that makes an incredible move 500 to 1,000% and that that sparks the next wave of momentum. That could happen anytime, but it also might not happen, you know, for a little while. So, what we can do is we can focus on hitting base hits with smaller share size, just getting in getting out and taking those 15-20 cent winners.

In fact, that's how I've built my career. Certainly, I make a lot more when the market's hot, but steadily hitting base hits is what I've done consistently for so many years. And so, my plan for for Tuesday is that the first thing I I'll do when I wake up is I'll be looking at this scanner right here, which is my top gainer scanner. This will show me the leading gainers in the morning on Tuesday morning. Now, I'm already checking my after-hours top gainer scanner from Friday, and I'm using this to inform me of what was moving in the after-hours session on Friday, so I can get a sense of what should be on my watch list for Monday morning.

The first stock is ISPC. ISPC right here um ended up making a move in the after-hours session. 6.5 million shares of volume on a 2 million share float. It's a US company. It is um in the healthcare space. And as you can see here, this one went for about a $1.55 up to $2 and closed at the after-hours high, which is a very bullish position for a close. Now, if we back out the chart just a little bit, you'll see that the stock for the last couple of days has traded on very, very light volume.

There's been almost no volume on it. You check the daily chart and you see that it has had a history of some red days back here. They did a reverse split, it popped up, and it's pretty much sold off, but now we're in a place where we've kind of based out a little bit here, and this is where we look at this recent area of support around a dollar 40. So, a dollar 40 is the low, that's your support. So, if you were in around $2, you're you're, you know, 60 cents off support, which percentage-wise is a decent percent, but it's still fairly close to the all-time lows here.

And the 200 moving average is up around 1350, and so if this starts to curl, we've got room for it to move back higher. So, I start to draw out a couple levels on the daily chart. One of the first ones I notice is around 296 right there, based on the resistance from this area and this area. If we get over 296, then we've got another little window here from 338, and that gives us room up towards 449. If we got above that level, then to the left and up, we start to have smaller candles in this area that get us up towards five and a little bit higher.

So, I wouldn't expect necessarily that we get a move all to all of this, but these are the gaps and windows that I look at on the daily chart to help me understand where we might run into resistance. So, ISPC is the first one on the list. It's very possible that it moves at 4:00 a.m. early early on uh Tuesday morning, and that by 7:00, 6:37 a.m., it's already got a lot of volume and there's not any opportunities, but it's the first stock that I would keep an eye on.

The second stock that I would watch is actually I M R N from Friday. I M R N made this 60% move, pulled back a little, and then held right here pretty much all day long. So, anyone who was shorting it hoping this would just unwind did not get that resolution, which means we are starting to get potentially a head and shoulders formation, which would be a base hit trade from like 180 back up to $2. You might get a little bit more than that, but I wouldn't set my sights on anything too much more.

It's not like a home run setup, but a little base hit there. Just the fact that it didn't die off and and roll over by itself is fairly bullish. So, this again healthcare company. This one's Australian. No issue with that. No, it's not like the Chinese, Malaysian, or Singapore companies. And then the third stock on my watchlist is SLE. SLE is a lighter volume stock that started to pop up just a little bit in after hours trading about 25-30% and if you look at this, it's a stock that has popped up a couple other times and sold off and now I'm wondering if we got to curl back up towards this previous resistance level, which was up around 737.

If we could break through that level, then we've got more room back up towards the 200 moving average up here, although there are some resistance points from on the chart from back in these areas. So, a couple areas to be aware of, but we really need to get over 737 to clear the high volume of these 240-50 million share days. So, if we can get above those levels, this starts to get a lot more interesting. So, I would keep it on watch just for that possibility.

I'm not sure it's going to work, but that's what I would look for. Now, the stock that I traded on Friday was A CAN and this stock ended up having this after hours move, pre-market continuation, and then ended up rolling over as the day went on and finished down 7%, which was pretty dismal. So, I do have relatively low expectations for the market right now, but I mean continue to show up every single day, focus on trying to lock up a few base hits, especially for my small account, which did take a little bit of a beating on day 43.

I need to work on getting that account back up towards 100 grand. So, that's going to take some focus and for my main account, I just feel like you know, I I don't September right now has been off to such a slow start. On the one hand, I could continue to chip away with 5, 10, 15, 20,000 dollar days, and that could turn this into a you know, 200,000 dollar a month. On the other hand, I kind of want to just focus on the small account a little bit and wait for opportunities to improve so I could just get one you know, six-figure trade or two or three six-figure trades in the big account.

And rather than doing lots and lots of little trades, just do that in the small account and in the big account, just step in when things are really starting to move. The risk with that approach is that we may not have one of those big moves. I'll give you an example. I was rather humiliated on this camping trip when I lost quite quite badly in Monopoly to my two sons. Monopoly is a game that divides families as you probably well know.

Um The the There was multiple times where game board pieces were thrown. It's a very emotional game. I did the strategy of saying I'm going to save my money to buy the highest value properties. So, I'm going to kind of cherry pick. I'm going to land on properties, I'm not buying them. I'm going to wait. I'm going to wait. I want to buy an own Boardwalk, right? Park Place. I'm going around the Pennsylvania Avenue. That's where I'm going to pick up.

Well, you know, low and behold, I never landed on any of those Park Place um you know, I didn't land on any of those properties. They got bought out by the other players in the in the game. And next thing I know, I'm sitting there and I own like I own two properties. I've got a ton of cash. And everyone else has monopolies and I slowly get bled out until I'm done. And so, that was an example of cherry-picking rather than just taking what comes.

You take what comes and that clearly is a better strategy in Monopoly. Is it a better strategy in the market? Well, both have a degree of uncertainty that you don't know when you in in Monopoly, you don't know if you're going to land on those great pieces or if you do, you know, by the time you get there how, you know, what the situation's going to be if someone else has already bought it. With trading, we don't know how long it's going to be cold.

So, if you say, "Oh, I'm just not going to trade at all while it's cold. I'm just going to wait for the hot market to come back." You might end up being on the sidelines for a couple days. You might end up being there for a couple weeks. You could even end up being there for a couple months. And a couple months of base hit trading for me is hundreds of thousands of dollars of lost profit. So, to kind of, you know, put up my nose and say, "No, I'm not going to do base hit trades." I don't I've I've never thought that that is actually a good idea.

I think it's always better just to keep trading every day, take the base hits, have the self-control and the restraint not to go heavy on anything, and when things heat back up, then you're in a great position to just scale up. Uh because I'm doing, you know, the small account challenge and everything, colder markets do kind of lend themselves just to focusing on the base hits there and letting the big accounts sit on the shelf for a little bit.

So, I I think there is a little bit of a rationale for it, but I generally would say it's better to uh just show up every day and not try to cherry-pick and wait for things to pick up because, you know, that just seems like it's a good idea, but it doesn't seem like it really actually works out that well in practice. And it's also possible that the day you think it's going to work, you size up, and then that ends up being a big flop, and now you're sitting in a drawdown anyways, uh and it could be a pretty big one.

So, there's some food for thought uh for you guys. But, I really encourage you, if you haven't already, check out our Warrior Starter and Warrior Pro memberships. Take advantage of these Labor Day sales while they last. They will be ending on Tuesday. And I look forward to seeing you guys back at it bright and early on Tuesday morning. I'll be streaming at 7:00 a.m. Eastern Standard Time. So, thank you guys. And a reminder as always that trading is risky.

My results are not typical, and there's no guarantee you'll find success whether you trade with me or you learn on your own. So, please manage your risk and always practice in a simulator before putting real money on the line.