Transcription
What's up everyone? All right, well we had another big short squeeze this morning. This is great to see.
We had a huge move on Wednesday with Bird BD. Easy to borrow stock. Broke the 200 moving average. Squeezed up 800%. Yesterday we had a couple big moves. I wasn't able to trade them quite as well, so I didn't do as well, but we did still have some opportunities. And then today, you know, another big move.
Plus, we had the news of the pattern day trader rule this week. The news that it's going to go away in about 45 days. That's huge. So, I'll put a link at the end of this episode to the separate video that I recorded about what this end to the PDT rule is going to mean for us because things are going to change. And my guess right now is that we've got about 45 days to get ready for it.
So, this is a time to study up and prepare because once that PDT rule goes away, obviously the barrier to entry is dropping by like 90% in order to start trading down to just a $2,000 minimum for a margin account. And that means we're going to see a lot more volume in the market. More volume, more participation in small cap, low price stocks. Things could get pretty wild.
So, today we're going to go over my trades. As I sit right now, as you may know, I suffered a loss on the beginning the the the first actually second trading day of April this this month. I lost $57,000. Terrible. Disappointing. I come in the next Monday, I lose another $20,000. So I'm down like $77,000 almost $80,000 rounding up in two days. Yikes.
Well, considering I made $150,000 or $160,000 in March, I feel like pretty much gave back half of that profit in two days. That's not great. Certainly not sustainable. So, I had to check myself into trader rehab. That means the guard rails came on. I had to tighten up. I had to reduce my share size, tighten up my max loss. And today's probably, well, it's been two weeks, so it's like day 10 trading days since that big loss. And I've been doing well.
The first week of trader rehab I didn't make a lot. I don't remember exactly. Maybe it was like $10 or $12,000, something like that. It was a little bit more, but not not a lot. And this week was slow until all of a sudden I had a big green day on Wednesday and another big green day today. Okay, so now I'm really starting to cruise. I'm moving in the right direction. And today it was thanks to EFOI.
So, you know, I think part of me could feel a little frustrated on this stock. Um, because I had some really great entries on it. Uh, you know, so this is what I did. Big picture. Stock comes out with breaking news at 9:00 a.m. It goes from $2.50 all the way up to $5.50 and it drops back down. All right. So, we don't know. Is this thing going to do a round trip? Is it going to go red on the day? We've seen that happen. It is easy to borrow, right? So, I wasn't sure, you know, what we were going to get on it.
I pull up the level two. I saw that big E for easy to borrow. And you know, I wasn't sure. I had already taken one trade on PBM for $1,300 of profit. We'll just look at that really quickly. Um, that was a trade that I took right here at about 7 a.m. Got in here and was looking for the break through $11.50. Was trying to anticipate that goes to like $11.55 and then drops. Got in and out with some small profit. So that was at 7 a.m. 7:05. And then I didn't take any trades. 7:30, 8, 8:39. And I kind of thought, well, I'm probably done for the day. It's going to be like a $1,300 green day. And yesterday was only like a $1,400 green day. So, it's kind of a bummer, but what are you going to do?
And then 9:00 a.m., boom, this thing squeezes up over 100%. And in an instant, guess what? It's our leading gainer in the entire market. All right, so that's that gets pretty exciting. Now, it had that first pop right here. Then it pulls back and then it starts kind of pushing a little higher. And I took my first trade on it right here. And I was looking for the squeeze through four. And I sized up pretty heavy. I was in this I had my starter and then I had a profit and I added at $4.50 because I thought this thing was going to curl right straight away up to this high, but it kind of stalled out. So I got out with a small profit in this area. It dips down, dips down, comes back up. I get back in. I get out. Pulls back. I get back in. I get out right in here. It pulls back. And right here when it dropped down, I was like, uh, I don't know. I'm not liking this price action here. Drops down again. Again, I said, I think I'm just going to take it. And I did not trade this move here from $5.50 all the way up to $9.50.
Well, what I can say about this is that of course these moves after the bell rings, the market does change a little bit. We have stop orders, we have market orders, and we have halt levels. And that often amplifies these swings. I mean, look at some of these. This is $6 down to five. That's a dollar a share. Then it goes back up. Then here it goes up to $8.40, drops down, then pops back up to $9.40, drops back down here to below $8, then back up to $9. I mean, these are one-point swings. It's very hard to manage risk when you have swings that are that big. Now, we did have a couple of little sort of false breakouts back here, a little bit right there, but comparatively, these are much more manageable.
So, you know, yeah, I am disappointed that I didn't capitalize on this, but I was sitting here. I was looking at it and I said to myself, you know what? You're you've got $21,000 of profit right now. Don't give that back. You can't afford to give that back, right? You know, I mean, you guys know the week I've been having. I mean, not only am I dealing with being in a draw down, which is as always disappointing, but my dog passed away and it's really devastating for me. I we've been she's been my little buddy here in my office for the past 13 years. Every day, every day she's in my office. And so, you know, I'm I'm not feeling great. I'm I'm really broken up about it. And so the last thing I need to do is go and take a huge loss or go give back all my profit on a Friday and go red on the day. I just don't need it. I don't need it. Not right now.
So, you know, I I had to rain things in. I mean, I already had to rein things in, of course, because I had this big loss back in you know, the first couple days of the month. And so I've already been sort of in a trader rehab, which I I have started to let myself kind of stretch out of a little bit with the big green day that I had on Wednesday and then again today. But you know, for the most part, I'm still keeping things, you know, pretty pretty well in check. And so, yeah, I I left some money on the table, but I'm walking away with profit in my pocket. $21,000, right? So, plus the $18 from Wednesday and a little bit from Thursday and a little bit from Tuesday. It's a $40 plus,000 week. This is this is very good.
So, um, now I've now I'm I'm past the halfway point on the recovery from the loss. You know, I've made back now more than half the loss, which is good. And generally what I say is once I've made back half the loss, I can I can take the wheels or the the training wheels off, so to speak, of trader rehab. And I'm not going to do that exactly, though. I I am gonna kind of take things off a little bit, but I'm I I think it's important that I still keep myself a little bit more reigned in. Um, because I do still have, you know, a little bit more to go to recover the rest of this loss. Probably another day or two, another couple solid days. And I just don't want to have another big draw down right now.
And you know, we're now all of a sudden, gosh, it's halfway through April. And so, it's kind of switching gears to just trying to finish the month. And um, maybe green if I can, if you know, if at least not as deep red as I am right now. So, yeah, I I think that, you know, the fact is EFOI, the catalyst, ties in with AI. That was the theme that worked really well. Um, by the way, the overall market all-time highs. I mean, I'm telling you guys, this is the volatility that we've been seeing in the overall market these last few years. Um, I mean, the market has no problem dropping like 20 30%. And then ripping back up and then dropping another, you know, 10% and now all the way back to new highs. These are big swings. Uh, but yeah, markets at all-time highs. um the price of oil coming down the um you know, everyone's been paying really attention what's going on in the Middle East with the flow of oil and everything else. So there's some good news out on that and um the market reacted well. So oil's down a bit. Uh, S&P's up and we're still seeing some great momentum in AI names with or stocks with AI catalyst. And funny enough, even on stocks are easy to borrow, which you wouldn't really expect, but um yeah, so I think today, if you're someone like me who left some money on the table, don't beat yourself up. You're green. And it's important to protect your um I suppose we could say your kind of um mental state of mind a little bit. Um to try to finish the week strong, to go in the weekend feeling good, to come back Monday morning, break the ice early on Monday, get a cushion, and then size up. So, it's kind of like sizing up into the week and then kind of cooling off coming to the weekend. And so, uh, and if you're someone who traded this and you're red today, go back and study your entries and look at the times a day where we had the biggest moves and the times a day where maybe it might have been more manageable for you. Even though we didn't have the biggest move earlier, um, for me, it was a little bit more manageable because the the price action felt, um, you know, a little bit more predictable, this move here, it's just, you know, it's it's nice. It's really good to see. I hope we I hope we continue to see these. But um the combination of halt level, stop orders, and it it just starts to become a little bit um bigger swings, bigger whips, and those can be painful if you size up and then you get caught and it's going the wrong direction.
So, I'm going to wrap it up here. $21,193.77. That is a solid way to finish the week. And I'll be back at it bright and early on Monday morning. Enjoy your weekend. Reminder, as always, trading is risky. My results aren't typical. So, manage your risk, take it slow, and I'll see you guys on Monday.