This Stock Just Went Up Over 130%... transcript

What's up, everyone? All right, in today's episode, I'm going to walk you through my trades from the morning. We have a stock right now up over 100%, but it's a penny stock, and this is very common. When the market cools off a little bit for small caps, often the stocks that we see starting to rise up are penny stocks because realistically, if you're an aggressive short seller, does it really make sense to short a stock at 30 or 40 cents a share?

The most you can make is it goes to zero, but if that stock ends up going to 80 90 cents a dollar or squeezing a dollar 50 or $2, your downside's a lot higher than your upside. So, generally, when things are colder, as they are right now, traders end up kind of flocking to the safe haven of penny stocks. But interestingly, when the market is really hot, traders kind of abandon penny stocks and look for opportunities that are a little bit juicier because in fact, it's actually far more common to see a $3 stock go from three to six than to see a 50 cent stock go from 50 cents to a dollar a share.

Both are 100% move, but when a stock is over a dollar, they do tend to move faster in a hotter market. But right now, the market is a little bit cooler, so it's a good time for us to kind of batten down the hatches, reduce share size, and try to take our foot off the gas. I did exactly that today. Now, for those of you guys who've been tuning in every day for these recaps, you'll also notice I'm back in my office. So, I spent 2 weeks on the road in my traveling trading station, so a Sprinter 4x4, Starlink on the roof, and it was a great experience.

This year was the best year in terms of Starlink performance. I was really impressed. Well, 4 years ago, or 5 years ago, when I first started using Starlink, it was intermittent. Even in a totally clear, you know, open sky parking lot or a field or whatever, it was hit or miss. When it worked, it was great, and then sometimes it just didn't work, and I think it was the satellite coverage and stuff like that, but it's been getting better and better, which that speaks to the fact that the market and trading is more accessible today than it has ever been.

Even in remote areas of, you know, the the the country or even the world that previously there was no chance of getting high-speed internet that could keep up with the flow of market data, now with Starlink you can. So, that's pretty cool. All right, now we're going to jump on the screen share and break down the trades from today. Before we do, I'll give you the reminder that our Labor Day sales are ending tonight. So, this will be your last chance to join us using those Labor Day coupon codes that give you a discount on the Warrior Starter or our Warrior Pro memberships.

And those of you guys that join the Warrior Pro membership, you also will get the benefit of a 7-day satisfaction guarantee. So, that gives you 7 days to go through the class and see the classes, use the software, and see whether or not it's a good fit for you. And if it's not, you know, there's no strings attached, you can just jump out of the program, but if it's a good fit for you, then, you know, of course you can continue.

So, we want to give you that peace of mind, especially for those of you guys considering the Warrior Pro membership. Now, um so, I'll pull the links up for that in just a second. I'll I'll actually I'll post the links in the uh members dashboard for uh or sorry, in I'll post links in the comments here on YouTube and in the description, so you can see our Warrior Starter, Warrior Pro, and then the Warrior Pro special bundle that we've put together right here specifically for the Labor Day holiday.

Okay, so those sales end tonight in uh less than 14 hours. Okay. So, this morning, um leading gapper PD SB, this is a stock that we have traded in the past. Um however, the float at this point um is higher. It's now a 51 million share float. And so, you wouldn't typically think a 51 million share float could go up over 100% and yet this stock went up over 130% today. And it is in a large part because although the float is higher, you're not going to have as many short sellers that are interested in shorting a penny stock due to the imbalance between the risk and the reward.

And so, we have this stock that's been grinding higher most of the morning. It's got a degree of ascending support right down in this area. I sort of like to draw these trend lines and sort of breaking it right here and coming back down towards the VWAP. Interestingly, the MACD was positive at the beginning of the move and has been negative even as the price has been moving higher. That's a divergence. It's a bit unusual, but it can happen in the context of a stock that is grinding higher rather than moving quickly higher.

Now, that's the leading gainer, but it's a lower price stock, so I generally sort of filter them out and don't pay much attention to them. But, I have to acknowledge that it's got a lot of volume. So, this is definitely a stock that other traders are focusing on. We have another scan here called the penny top gainers and if you use the penny top gainers, you can see some of these lower price stocks that are up quite a bit.

So, you've got 123 million shares of volume on PDSB. Wow, that's a lot of volume. All right, so then the leading gapper on stocks above 50 cents a share is BNC. Now, this one's got a 38 million share float. It's a US company with no news. Right now, we're getting an inverted head and shoulders pattern right there, the edge of it there. Are we going to get a curl back up and a a retest of like maybe the double top up around 650, 675?

You know, sure you might, but I'm not setting my sights on this one as having a lot of potential, to be honest. I just feel like it's too thickly traded. It's very cheap to borrow. It doesn't really make sense to me. Um, you know, why is it up as much as it is? Why is it holding up as well as it is? I couldn't really say, but it's atypical, and so I'm going to leave that one alone because I don't fully understand it.

The second leading gainer is up only 34%, and that's WYHG. This one's got a 6.96 million share float, and you can see an early move here squeezing up to 636, then dropping hard, then rallying back up, then all the way back down, and now kind of in the middle. And so, we're sort of in this larger wedge formation. So, as it's getting a little bit more momentum here, uh pushing up back towards six, you know, it's it's a lower float than the others, so that probably is going to make traders a bit more interested in it, and it made me more interested in it as well.

In fact, it's the only stock I traded this morning. So, on WYHG, it squeezed up uh this morning right through this area. We got this Oh, sorry, this is Oh, right here. It was right back here. And we got this nice squeeze up. So, we pushed up to 540, we broke through the volume weight average price at 560, micro pullback, goes up to 577, micro pullback, and I got in right here, and we got this push up to $6, but notice how it was a very brief topping tail.

It hit six just for a moment, and then it was right back down at basically the same price. So, I got in here, I ended up getting out right here. I didn't go red on the position, but I got in and got out, and I made a profit of $120.71, and that's it. So, today obviously not a home run. It's barely even a base hit. My cold market daily goal is $5,000 a day. Hot market daily goal is $20,000 a day. So, I'm far shy of my hot market goal.

I'm I'm shy of my cold market goal. However, this is what I'll say. When the market's cold, it's important to be able to take base hits, and if it doesn't work, get out very quickly, and I did that. And this could have ended up being a $1,500, you know, $2,500 winner. In fact, with 13,000 shares, I was up for a moment, you know, about $2,600 when it broke six, but it was so quick and came right back down, it didn't hold.

And so, I got out and it was just could have been a small pro- loss, it ended up being a small profit. And I would say today more or less is a break-even day. When we look at my metrics, this is a day that's like not even going to really show on my um sort of the the P&L in terms of the equity curve because it's just such a small green day, it it's not particularly meaningful. Um but that's okay. You know, some days are like that and the important thing for me is that I continue to show up every day because what I don't know is what day we're going to have a stock that ends up surprising us and giving us a really nice move.

So, if I look at my P&L here for the last, you know, 30 days or whatever, um this day back there was $975. You know, so days that are this small barely even register as a blip, they're just very, very small green days. Um but the thing is when the market's cold, usually obviously shorts are more aggressive and longs are more conservative, but there's a lot of long bias traders that are sitting on the sidelines and actively watching and waiting who have the restraint and self-control to sit and be patient.

And so, when something starts to pull away, they're going to see it. And then that's when they're stepping up to the plate. And so, very quickly, things can go from cold to, you know, swing and you've got a stock up, you know, 100, 200%. Shorts are getting squeezed and we're off to the races. Now, I'm not saying that's going to happen today, it might not happen uh this week, but it will happen eventually. And when it does, that's when I want to make sure I'm ready.

So, for me, showing up every single day means that, you know, I'm present and I'm able to keep sort of watching the market and being informed on what's moving, what kind of price action we're seeing, and when something does start to work, I'm I'm here to capitalize on that opportunity. That's the name of the game. So, the most important thing is that when the market is cool, you have the presence of mind to take your foot off the gas, so you're not being super aggressive while it's cold, and that's an area where I historically struggle.

I still get too aggressive even if it as it's cooling down, and I end up incurring unnecessary losses, and that's exactly what happened last week, as many of you guys saw. And in my small account, I ended up, um, you know, having a setback. My small account's now at $91,000, and I didn't take any trades in it today because the market really doesn't feel suitable for, um, for trading in it. But, you know what? I started this small account challenge with $2,000 in June.

So, over the course of the summer, I made, you know, nearly, you know, $90,000, $89,000, right? And cuz of the the $2,000 starting balance. So, a great summer, and now, you know, you just have to accept that if the market's cooler, you got to sit on the sidelines for a little bit. That's very hard for people to accept. You make $90,000 in 3 months, you're making, you know, 1,500, a thou- 2,000, 2,000, whatever it is, $2,000 a day roughly.

What is it? 60 trading days, so not quite 2,000 a day over the course of 20 trading days a month and 3 months. But, you know, you kind of get the idea. So, you know, you think, "Oh, well, I want to keep averaging, you know, 1,500 a day or whatever." And then when the market cools off and you're having no trade days, you start to feel like, "What's going on?" And that's a scary feeling, and then all of a sudden the market heats back up, and you're back to having these big green days.

So, I have found that while I might average, you know, 15,000 or 20,000 dollars a day over the course of the year, I will have a month where I'm averaging more like 30,000 a day and another month where I'm averaging 10,000 a day. And then they blend and and average out by the end of the year. And so right now, yeah, I'm in the the sort of low period where I'm having a just kind of get by on base hits and we didn't even really get many of those today, but it's also the first day back after a holiday weekend.

So, you know, I'm going to give the market a chance to warm up and when we have something that actually looks really good and starts to pull away, I'm happy to step up to the plate. So, as always, you guys will see me in the chat room every morning starting at 7:00 a.m. running my live broadcast. And if you haven't already checked out our Labor Day sales, the link will be pinned to the top of the comments and in the description, so you can come on over and check it out.

I'll remind you, as always, that trading is risky. My results are not typical and there is no guarantee you'll find success whether you trade with me or you learn on your own. So, please take it slow and always practice in a simulator before putting real money on the line. With that, I'll see you guys back at it bright and early tomorrow morning.