Transcription
What's up everyone? All right, so in today's episode, I'm going to break down my trades from the day. Like yesterday, I only traded one stock today. But unlike yesterday, today is a small green day. I peaked at about $5,000 of profit on the day and I gave back more than half of it. I sit right now up $2,506. Green is good. It's a little more than I had a few hours ago, but am I disappointed? I suppose a little bit for two reasons.
Number one, I missed the initial pop on the one stock today that gave us a big move. I got up to make a cup of tea and I, you know, I just I heard the scanner's ding and I just sort of was like, I I doubt it's anything because it was sort of an unusual time of the morning. And then when I came over, I was like, well, gosh darn it, I just missed, you know, the the only clean pop of the day. And now I still traded it on sec the second and third pullback which was fine and the break of VWAP which we're going to go over but you know having missed the initial squeeze that certainly hurt how much I could make on the stock. And then the second thing that disappointed me was that as it started to pull away, I sized up with my biggest position of the day right at the high thinking that we were at that tipping point where we were about to really take off and it stalled out and that's where I gave back half my gains. Now, it is what it is. So, let's go ahead jump on the screen share and start breaking it down.
Okay, so you can see $2,506 and the stock is CHNR. Where does it sit right now? First of all, this is a Chinese stock. It does have news today. Um, at news of an acquisition and the headline, let's see, um, came out at 7:15, which usually I'm looking for news at the top and bottom of the hour, so I wasn't really expecting a headline at 7:15. It can happen. I just wasn't expecting it. And coming into the market this morning, all we had were lower gappers. I think our biggest gap at 7 a.m. was like 27% or 28%. So it was a pretty lackluster scam this morning. So I was taking my time, making some tea, whatever. And uh yeah, so CHNR ends up popping up at 7:15. And when it first popped up, um some traders were like, "It's Chinese. I don't even want to touch it." You know, I remember what happened to WNW, you know, two days ago. I want nothing to do with this. And so I saw some people say, "It's Chinese. Forget about it." So does a little pop up to 380, a pullback, it pushes up to 410, hits a high of 430, does another little pullback, then it punches up to 490, little pullback, it punches up to 530. This area a little tricky, but it breaks 550 and goes up to six. So, I would have loved to have been trading this in this first move. I probably would have had my first entry in here would be my guess. This is probably around when it came would have come to my attention, but we can actually go back and look at the scanners and see when that alert first came. So, the first alert was at $4.34 and it was at 716. So, 434. Let's see. So, yeah. So, that would have been right around here. So, that's where it was popping up. So, this would have been the first pullback that I probably would have been jumping in on. And um yeah, so from 480 up to 530, take some profit, then add back, goes up to 580. So I might have been able to make five grand right in there. You know, I it's hard to say for sure, but I maybe.
So then it dips down, it comes back up, and I took my first trade. Boom. Right there. So this was um as you could see, a break of VWAP, then it curls back up. And on this one, I sort of came right out of the gate swinging 5,000 share position. Boom, boom, boom. Immediately in 15,000 shares, it goes higher. I doubled to 30,000. And I'm like, here we go. And my cost basis was like right up here at around 515. Well, it hit 535, then it drops to five. It comes back up, and I got out break even. In well, in fact, I was read $67 on my first trade with a 34,000 share position. So managed the risk on it, but that was not a good trade. It then dips down, flushes right here, goes lower, breaks down, seems like it's pretty much dead. The MACD, in fact, goes negative on the one minute chart. So on the one minute chart, MACD goes negative. This was right here. And I was like, no, I'm not taking that trade because the MACD here is negative. So didn't take that trade. Good thing it pops up, reverses lower, pulls back. But then right here it curled back up and I got back in at five and added right here at about 520 and right in there made about $2,000. It squeezed up to six and then it pulls back. Not a huge win but not bad. Then it breaks over six and I add back right here for the break of six. It squeezes up to 660 as you can see right there. And let's back this up. We're going to go on to the 10-second chart so we can get it really dialed in.
So, all right. So, we're going to break below VWAP here. So, we break below VWAP. Then, we come back up right here. I'm adding right here. It pops up to 560, pulls back. I do another add down here, and I'm taking profit off the table for a couple thousand. So, not a huge win. It pulls back, then it rips back up here, and I added here for the breakthrough six. It hits a high of 660 right here. Now, uh right here, I added for the break of 550. sorry, 650 and I added 20,000 shares. So, I was like, "Here we go. It's time to scale up. I'm looking for this to squeeze straight to $7 a share and it hits a high of 660 and then it flushes back down here and I'm holding." And I was like, "Oh boy." So, it holds here and I said, "I want to see it hold 603." Why 603? Because that was the previous high here. And if you go back to this level, this pullback look at this high. So it hit 557, pulls back, breaks over, comes back to that level, dips below it for a second, then it rips back up. So I thought if it dips below 603 for a second, but then comes back up, that could be okay. So I held through this pullback. It pops back up here and then it starts to go red and I dumped it. I said, "That's it. I got to get out." And so with that, I went from um up about 5,000 on the day. So I made about three grand on this little move. uh and I gave back uh as you could see quite a bit. So that was a little disappointing. Then it ends up going sideways here. Uh tries to come back up, isn't able to, and this is where we sit right now.
So, you know, all said and done, $2,000 isn't bad. The only problem is that because I got in and out several times and with bigger positions, I churned more [snorts] shares. So, my fees and commissions today, let's see. I'm going to estimate um I have 66 tickets. So, 66 times I press the buy and sell button. And I trade a total of 279,000 shares. But I did add liquidity on a number of those shares. So, that's good. But the fact is, you know, 300 300,000 shares, if you if I didn't get any rebates from adding liquidity, 300,000 shares times 0.002 002, which the price depends on the route that I'm using, but blended between different routes, it's going to be $400 in fees. So, $400 in fees with only $2,000 in profit. That's a disproportionate percentage of fees. But this is also going to be very typical of a colder market. The average winners are smaller. The fees are what they are. They're about 1 cent from every trade for me. So, you know, if I only make 3 cents, then I'm losing a third of it to commissions. If I only make 4 cents, I'm losing 25% of it. If I only make 2 cents, I'm losing half of it. And of course, if I, you know, lose 2 cents, then I'm red. Plus, I have the fee and commission on top of that, which makes the loss that much bigger.
Why don't I just trade with commission free broker? Well, with commission free broker, I wouldn't have the speed of execution that I need. And in a fastmoving market, that speed is really important. It allows me to get in the second I want to get in and get out as soon as I want to get out. And I have more routes at my disposal which I can use for getting in and getting out of stocks that are a little bit more thinly traded. And so that means I could take bigger positions without suffering as much slippage. So taking 340,000 shares, whatever it was, you know, earlier today, you know, I was able to take that and then slowly unwind it. I can use dark pools. We have access to those over at light speeded. So if you sell in a dark pool, you don't get any slippage if there's a match. Now there might not be a match, but nonetheless, if there is a match, you could sell the full 40,000 shares with no slippage. With Thinker Swim or with Weeble, you don't have dark pools. So you might be able to get a match because of the way they internalize your order flow, but if you don't, your order is going to the main exchange. With these routes, if you don't have a match, your order doesn't do anything. So you don't show the market that, hey, I'm someone who wants to sell 40,000 shares because the market will take advantage of that. The high frequency trading algorithms see that big order come in and they're going to pull the bid. So if you send to a darkpool, then you say, I'm going there's different ways you can set it. You can sometimes set an order to say, I'm going to send it to the darkpool, and if the darkpool doesn't um execute, then send to the lit market. Or you can say send to the darkpool and if the darkpool doesn't execute then just cancel the order. And that's what I do. So I just try to send it. If I can get filled, fantastic. If not, no big deal. But these are the things that are what you end up paying a commission for. The access to these more advanced routes and tools.
Is it necessary when you're trading with smaller size? It's not. And so if you're trading with smaller size, yeah, there's a lot to be said for using a commission free broker. It keeps your cost of trading minimal. Um, you know, it's it's a I mean, it's it's great. It's great for traders who are getting started. It's it's obviously cheaper. You don't have platform fees. You don't have to pay for data. It's just the whole thing is is that much easier. So, I am a fan of commission free brokers up to a certain point. So, at a certain point, you get to a share size like what I'm at, and now commission free is is actually going to hold you back. And so, that's where we got to be a little bit careful. You don't want to get into a situation where um you're using the cheap tool and it's now um it's diminishing your results. So that that's like the whole thing of knowing the right time to use that tool. And I can't think off the top of my head of like a great analogy for it, but um you know, I don't know if you were if you were like thinking about being a carpenter and you're like, I'm going to get a job, you know, o over at um you know, wherever um you know, some carpentry contracting company. um you know, you you got to buy some of your own tools and and maybe you're like, "Well, I'm not going to spend like, you know, thousands of dollars buying all my own tools only to find out that I don't like this line of work." So, you buy tools that are good enough to get you started um and you know, you won't get laughed off the job site, but you know, but aren't like going allin. Same thing with like being a mechanic. You know, it's like you get started with a certain set of tools and then you know, you upgrade from there. um if it warrants it. Same with photography. There there's a couple examples. You know, photography, making videos. I mean, even like, you know, Mr. Beast, he talked about um and and Casey Neistat, he talked about uh initially filming videos on, you know, cheap kind of handheld little cameras and then as he started to make a little money and and it was going well, he took that money and bought better equipment. And so, I think with trading, it's sort of like that. If you're beginning, you know, use Weeble, use Think or Swim as proof of concept. See if this works for you. It's not going to be the difference between success and failure. You know, you either have kind of the talent and the strategy and the skill to do it or you don't. So, can I make money on a commission free broker? Absolutely. But at this point, I'll do better on a direct access broker. So, you know, and then once you start making money, then it's like, okay, maybe it's time to invest in better tools. I think that's just the best way to think of it. So, think of trading as a business. Think of it that way.
All right. So, with that, that's a quick recap here for today. I do have to run out. So, um my day is cut a little bit short, but I wanted to just um give you guys this update of where I sit here on the morning, small green day, and live to trade another day. I'll be back at it first thing tomorrow morning streaming at 7 a.m. for members at Warrior Trading. And I'll remind you, as always, trading is risky. My results aren't typical. So manage your risk, take it slow, and practice this simulator before putting real money on the line.