Transcription
What's up, everyone? All right, so in today's episode, I'm going to break down my trades from the morning. I ended up trading two different stocks, but the stock that I did the best on was the same stock that was on my watch list that I uploaded on Sunday. UPC was the ticker, a Chinese biotech stock that put out news of a strategic acquisition at 4:11 p.m. on Friday. A time that typically news would get ignored. People wouldn't even see it. But, there's enough traders in the market that there were some traders that did see it. And so, the stock squeezes up 168%. If we jump on the screen share, we can see um this price action, and you can see my P&L for the day, which is up $28,107.72.
So, UPC, as we were looking at it yesterday, uh as I went over my watch list, had rallied up on Friday all the way to a high, and we're going to mark out that level, of about $12.22, 12:22. Yeah, I think about that. It ends up dipping down and closing after hours back down around eight. But, I expected it would pop up again at 4:00 a.m., and that's exactly what happened. 4:00 a.m., it goes from $8 to 11. So, congratulations for those of you guys that traded that and made a little money on that pop. That was predictable. It ends up pulling back, and then this was also predictable that when we got closer to the 7:00 a.m. kind of window when most retail traders come online, that this was in the hands of the bears. Below So, the volume weighted average price is a point of control. Above VWAP is bullish, below VWAP is bearish. So, down in this area, I was actually looking at it, and I was wondering whether or not it was something I should consider for a trade down here for a curl back up to VWAP, and you can sort of see that green candle peeking in there. And the reason I thought this was because it's clearly stopped going down right here when it did a double bottom. And then, as it broke over the high of this level right here, which was about 820, I thought that was the first step back up. So, I was watching the price right there at 820, but I thought, you know, I was red on Friday. I don't think I could take the risk of taking a trade below VWAP. This is just This is This is pretty risky here. So, as it ends up curling back up, it goes up to 820. It hits a high of 924. Then it pulls back, and I don't trade it right through here. Then right here, it bases out, and it curls up again, and I traded this candle right here as we went from about $9 a share to a high of 1550. You know, I traded it pretty well. I got some nice profit in the small account. I got some profit in my big account. So, I'm green across the board in this one. And if we look at the chart, you can see this rally up, micro pullback, second micro pullback, and then this squeeze as we broke through 12. Remember, when we broke through 12, we were breaking through our high from after hours on Friday. So, above that level for this move, we really didn't have any nearby resistance. And that's where clearly shorts got squeezed, and we just ripped to 1350 to 14 1450 to 15 to 1550, and then a dramatic drop back down here all the way to 1250. A little bounce off the low, but very short-lived, and then it starts unwinding a bit more. Now, it did curl back up as you could see here. And I did trade this breakout here, and I traded this breakout right up here. And I also took a trade right here. And right there, I gave back about $11,000 off the top. That was a little disappointing. So, I peaked today at 39,000 on the day, and then, you know, I'm I'm sitting right now at 28,000, which is good. But if you've been tuning in to the recaps from the last couple days, you'll know that Well, I had a little bit of a drawdown thanks to being red um, on Tuesday minus 36,000 here. And then I was red again on Friday minus 22,000. So, you know, kind of stair stepping down. You could almost say it looks like a dare I say head and shoulders pattern. Um, but rather than follow the logic of that pattern, which is where uh, traders are controlling the price by expecting this will be resistance and then dropping down. I'm in control of the price here because this is my chart. So, what I'm looking for, well, now I've got the rally back up already, is that I just have to tighten up my risk, not allow myself to keep having big red days, and then boom, I'm back on a forward um, kind of ramp moving up. So, you know, look, it is what it is. Um, these losses in last couple weeks, um, the green days have been a little bit smaller. So, this was a $15,000 green day. Today is the biggest green day I've had since um, June 17th. Right? I mean, you these green days just weren't that big and then I kept catching these bigger red days. So, the fact that I was up 39,000 today was awesome. You know, I could have stopped when I was up 25, I didn't. Could have stopped when I was up 35, I didn't. Could have stopped when I was up 39, I didn't. You know, I traded all the way until I gave back, you know, that last chunk. And I might have kept winning and been up 75, 80, 90,000 dollars before that last loss occurred. It just this is where it happened. And so, that was my cue to walk away. So, if we look at um, detailed and the win loss expectation, you could see here the drawdown that I'm in, which was minus 44,000 coming into today. So, I chipped, you know, almost 30 grand off of that loss. So, I'm still going to be down about 16 grand here um, in this area coming into um, tomorrow. So, if I can have another little green day tomorrow, then that gets me back up towards uh, I the month back at my highs. And if I don't, it also doesn't really matter, but that just kind of gives you perspective of where I'm at. So, the reason I didn't trade this below VWAP was cuz I just didn't feel I could take the risk even though that would have been a really nice trade and it worked out really well.
Now, another stock that was on the scanner this morning was Decoy. This stock put out news on Friday and the the time on this one's fascinating. They put out news right after trading is done at 8:11 on Friday, a $21 million private placement. Now, typically a private placement is bullish. We like a private placement. But unfortunately, the company maybe wasn't sure everyone would like it and one of the reasons is that essentially it is a form of dilution. They're selling more shares to an institutional investor and so it increases the float by quite a lot. So, the float on this one, Decoy, was only 500,000 shares, but through this private placement, they're selling something like three or four million shares to this institutional investor, you know, who will be able to sell them on the open market. So, whether they sold any today or not, I have no idea, but they will be able to sell them and at a certain point they probably will. And so, that's going to create additional selling pressure, which won't help the price action. So, you know, it ends up popping up at 4:00 a.m. as traders jump on it, but then it kind of unwinds and and rolls over a bit. It's still holding up relatively well at 100%, but not as well as it could have been. Now, earlier this morning we had NNBR on the scanners. We had a couple other tickers that popped up, Clear Minds, CMND. These are known to fail, MNST. So, we just had a bunch of stocks that popped up, MNTS I meant, but didn't end up holding. And so, I didn't take my first trade this morning until that break of VWAP, which was at gosh, like, you know, 8:00 whatever, 8:50, 8:45, 8:50 in the morning. So, I almost thought today was going to be a no trade day, but managed to get a couple trades in the green here and so I'm happy with where I sit. I'm not going to take any more trades today. Now, if you also tuned into the small account challenge, you'll see the small account is up nicely today as well.
For those of you guys that don't already know, we've got our 4th of July sale underway here at Warrior Trading and for people that become Warrior Pro members during the 4th of July sale, you'll get a full year of access to my live audio video broadcast, the chat room and you'll get 90 days of access to this software right here, which is Day Trade Dash and you'll get 90 days of access to our trading simulator right here, where you can practice jumping in, jumping out. You can practice trading the stocks that I'm trading, so you're doing it in a safe environment. We don't want you practicing with real money until you've proven you can make money. Look how quickly buying on the ask and selling on the bid, I'm losing between the spread, losing hundreds of dollars. Well, thank goodness it's a simulator because it you know, it doesn't matter, but this is the place to practice. So, we want you to practice trading in a safe environment, so you won't get yourself into a pickle. All right, so let's see. Anyways, and and though and and you always want to make sure when you become a member, when you join, that you go into the education portal here. This is where you can view the classes. And this is where you'll learn the ins and outs of the strategy that I'm trading every single day. So, make sure you guys check that out and if you haven't already given a test drive, we've got a two-week trial, so you can spend a few days really testing it out before the 4th of July sales end and then you'll see whether or not this is a community you actually want to be part of. So, I'll put links for the 4th of July sale and the two-week trial down in the first comment and in the description. I'll see you guys back at it first thing tomorrow morning. I will be streaming at 7:00 a.m. All right, so I'll see you then. I'll remind you as always that trading is risky. My results aren't typical, so please manage your risk, take it slow and always practice in the simulator before putting real money online.