I ALMOST Had The Biggest Green Day So Far... transcript

What's up, everyone? Welcome to day 15 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today was the biggest green day so far in the challenge, but I let it slip through the cracks and it fell apart. Not terribly, but my first trade was the biggest green trade I've had so far during the last 15 days. And then the second trade was a loser. The problem here is that we're going into the long weekend and I thought this one stock movement was going to be the most obvious stock in the market, but it there just wasn't enough momentum behind it.

And so, although we got an initial squeeze, it didn't hold up. It fell apart. And it is what it is. I'll break it down in the recap. The pattern that I traded was the cup and handle pattern. So, that's where we have a an initial squeeze up right here, which was on breaking news, then a pullback, a rally back up that forms a double top, consolidation, and then right there we get the breakout, and that's where I got my trade.

So, we're going to talk about that in a second. But before we do, I've got something to say. I've been noticing a lot of you guys aren't hitting the thumbs up on the episodes in this series, and I think I've reminded you many times that every time you hit the thumbs up, I add an extra dollar to how much we're donating. It comes out of my own pocket. So, it confuses me a little bit. Now, what am I donating to? Maybe it's that you guys don't care about what I'm donating to.

It's a cause that's near and dear to my heart, but it doesn't matter to you. Children's hospitals? Really? Come on, guys. This isn't hard. Now, one of you in the comments below yesterday said you'd really appreciate it if I donate to the Washington Seattle Children's Hospital, and I did. Now, the only thing that concerned me about that request was that he said, "You know, you're doing this a little alphabetically, and Washington's going to be the last one you donate to." >> [snorts] >> Yikes.

Well, he really showed his cards that he knows nothing about geography. Washington, West Virginia, Wisconsin, Wyoming. Washington's not the last, it's Wyoming. So, if someone from Wyoming wants a donation, well, for that I would give that. West Virginia, Wisconsin, you'll get it when you get it. Washington, well, now I feel kind of sorry for you cuz I think you embarrassed yourself a little bit. So, I went ahead and gave you the donation.

So, $5,000 to the Seattle Children's Hospital that got donated just this morning right here. And that's because we have now raised over $350,000 for charity as part of these challenges. So, thank you guys really for the thumbs up and being part of this challenge cuz it's been exciting. We are now at I think it's 28 or 29 hospitals that we've raised money for. The goal is 50 state children's hospital, a hospital in every state in the United States.

So, we're now at $362,000 donated. So, I'm a little bit ahead of what we've raised. That's fine. Okay, so day 15, there was nothing obvious when I sat down and looked at the scanners this morning. We had the stock USDE. It was popping up on the scanners up 92% 18 million shares of volume 61 million share float. The float's a little higher on that. I pulled up the the ticker. I looked at it and the first thing I noticed was the daily chart.

You see that daily chart? Four or five red candles in a row. So, it's a recent IPO or it could be a SPAC merger or an uplist from a different exchange, that's possible. And so, we have this all-time high of eight, which does present the potential for a blue sky setup, but with a float seeming a little higher and in any case the price clearly coming down, there was no trade on this. So, move after hours, a pop at 4:00 a.m. and then a strong sell-off and that's that's where we're at.

So, that was USDE. We had CWD, which currently has over 200 million shares of volume. It's a little cheaper, kind of a grinder, not really very many big breakouts, so nothing there for me to trade. PPC, another cheaper one, popped up, reversed, popped up, reversed. No trades on it, it's a little too cheap. Real estate investment trust, Wheeler. Um this is a stock that has done many secondary offerings, many reverse splits.

It just keeps going lower, so I kind of have written that one off as not being something I'd be willing to trade. So, we really didn't have anything that looked particularly interesting, and we certainly didn't have anything that was obvious, until CLRO hit the running up scan. It hits the running up scan, the relative volume is very high, and it has news that we can see right here. So, it's a um it's announcement of entering into a merger agreement, and merger agreements can work.

They don't always, but in this case, the stock was clearly moving. There was nothing else that looked more interesting, and so as it first popped up right here, I I just waited. It pulls back, then it rallies back up, and this gives us the double top. Then it dips down and curls right here, and this is where I jumped in, and I jumped in a little early to anticipate the breakthrough 461, which was the double top. If I had waited to get in at 461, the problem with that is these were both topping tails, and so if this had been a topping tail and then rejected, I made it the high.

So, I got in as volume started to pick up right down here, anticipating the breakthrough 461. It goes to 475, 485 to 5, all the way up to 520, all the way up to 540. Boom, I'm in and I'm out. But then I add back. And it flushes back down right here, and so I ended up giving back some of my profit on it, but nonetheless, sitting at $2,943.22. Which makes it my second biggest green day of the challenge. I took a total of two trades.

One winner, one loser. I'm now at 37 trades and accuracy is 78%. Let me add the percent sign there. All right, so 78% accuracy, average winners are just under $500. The ending balance in the account is now a little over 20,000 bucks. I started with $2,000, so 18,000 divided by 2,000, I'm now at 919% return on this account since day one. I feel good about the progress I'm making and I appreciate you guys being part of this challenge, tuning into these episodes, the comments that you've been leaving, and of course for hitting the thumbs up to raise money for charity.

So, this is really good. I'm I'm happy to see uh the growth here. Now, prior to the the change in the pattern day trader rule, the pattern day trader rule in fact going away, I would have traded this account up to $25,000 because a $25,000 would have made me eligible to have an official day trading account. But, I have an official day trading account. I had it at 2,000 bucks because the rules changed. So, now there's no real number that I need to get to.

It's just, well, you know, let's keep growing the account. Let's see where it takes me. So, at this point I'm just continuing to grow it, continuing to gain momentum. And as you can see, now I'm at a point where I can be taking larger and larger positions cuz I've got $20,000 So, now we have a $5 stock that comes up, I can punch it for 4,000 shares. It goes up a dollar a share, boom, $4,000 winner. Goes up $2 a share, well, that'd be a pretty big winner.

I mean, $2 a share, that'd be $8,000. I don't think that's going to happen. But, now I can start to make a little bit more money. You know, early in the challenge I'm getting bigger, maybe percentage return because the account's small, but the total dollar amount is is of negligible. That's going to shift where the dollar amount gets bigger, but the percentage return gets smaller on a day-to-day basis cuz, you know, I just won't be able to average $2,000 a day on a $20,000 account every single day.

Some days I will, but many days I won't. So, this is kind of where we're at getting settled in, continue to grow the account, and um and as always keeping an eye on your feedback for what you'd like to see me do next, where you want to see me grow the account to, and um what brokers I should use when this challenge ends. So, thank you guys for all your suggestions and comments. I hope you have a great weekend. Reminder, right now our 4th of July sales are underway here at Warrior Trading.

If you haven't already checked them out, come on over to our website. We've got the Warrior Starter, the Warrior Pro membership, and the Warrior Pro membership includes a 7-day satisfaction guarantee, which means if you don't like it, you can ask for a refund, and we give you a full refund. It's no big deal. It's no harm, no foul. There's no hoops to jump through. It's just you say you don't like it within the 7 days, we give you a full refund.

It's that simple. So, it gives you a chance to get into the chat room, get into the classes, use the software, and see whether or not it's a good fit for you. So, I hope you guys check it out, and I will be back at it bright and early on Monday morning. But reminder, as always, trading is risky. My results aren't typical, and there's 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.