A 350% Short Squeeze!

What's up everyone? Welcome to day 19 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker. Today's a green day and I took a total of two trades and both of them are winners. So today was a much smoother day than yesterday, which is good. You know, yesterday I was a little disappointed to go big green all the way to red, suffering the biggest loss I've had during this entire challenge. At least I almost positive it was. and then, you know, crawling my way back to being in the green by 200 bucks. But since I had that high water mark yesterday, being up like 2400, being up 200 didn't feel like much of a victory. So, coming in today was focusing on quality over quantity. Was able to break the ice with my first trade. Nice winner. Second trade, smaller winner, but that's okay. Finishing now with over $25,000 in the account that started with $2,000 19 days ago. That's some great progress. Now, we're going to jump on to the screen screen share and I'm going to break it down for you. But as a reminder, as always, all of the profits from these small account challenges gets donated to charity. We've now raised over $364,000. And each time you guys hit the thumbs up, I add an extra dollar to how much we donate. So, we're coming up here again a little shy of um the next $5,000 donation, but donating to children's hospitals around the country. All right. So, today, day 19, we had one obvious stock. It was our leading gainer, NXTC. This had 30 million shares of volume, a 3 million share float, three uh 37,000 times higher volume today than is typical for the stock. And that is all thanks to a news catalyst. The news was a reverse merger with a privately held company. And these are the types of catalysts that can really get a stock moving. when a company does a merger. So let's say let's say Warrior Trading wants to go public and there's a publicly traded company right now that isn't particularly profitable then what Warrior could do and this is what these companies do is they approach them and they say hey I want to go public can we merge and then we do a name change and the surviving entity is Warrior Trading and it's now a publicly traded company. So rather than doing sort of the traditional IPO, um you you you merge in in this in this way. Um it's it's not the most effective for uh raising capital typically, but it is a way to bring a privately held company into the public uh markets. So in any event, NXTC uh squeezing up on this headline that they're merging with this other company, bringing them public, and this was the chart. The problem is all of this happened before the 7 a.m., you know, kind of traditional open to pre-market for most retail traders. So, I did not trade any of that move. Now, as we sat down right at about 7 a.m., look at this candle right here. This is a red candle right there, that rejection. So, I marked out the high of that candle, and I thought, you know, and it was about 850, 8:42 or something like that. And I thought we need a break over that rejection in order for us to get back into a good spot. And so that was the level I was paying attention to 840. And then we had this level here. And then of course we were back to the pre-market highs. So my entry was the break right there as volume started to come in. I was looking for the break through that level. So let me just pull up my chart so you can see it here. And that was a $1,400 winner. Now um I'm going to show you the entry right here. So that was the breakout. Look at that squeeze. So we broke this level right here of840 and we went right up to 950. Micro pullback, a squeeze higher, micro pullback, squeeze higher, micro pullback, squeeze higher all the way up here to a high of over $12 a share. And I made about $19,000 trading this range in my big account as well. So green on both sides there. I was grateful for that. Don't love the topping tail though because it shows that although we squeezed up, sellers pushed it right back down. So that was a little bit of a problem and in fact that marked the high of day for this stock. Now maybe it rallies up later but as of right now that's our high of day. So that was NXT uh NXTs NXTC NXTC $1,400 of profit. One trade, one entry and well maybe it was one entry and two exits. Anyways, uh so that was that. Then uh we had a scanner alert here on UBXG. NXTC was also hitting the scanners. I still had that on watch, but then UBXG um hits the scanners and it's starting to curl up. I see that it um is a Chinese stock. I don't see a headline, but we had this initial pop to 11, this pullback, consolidation, then it pops back up right here, and I bought this little micro pullback. Now, I actually got in right about here. It dips down and then it rips up here. And I was kind of holding on by the seat of my pants. I was like, it's got to hold over the VWAP and it went right to the VWAP and then it bounced off that level. Goes up to 10 right there. 1040 and I'm out with $740.99 of profit. It was a closed call. My account now has 25 a little over $25,000 in it, which means in theory I have $100,000 of buying power in theory. In reality, I don't have buying power on any of these stocks. None of these stocks are offering leverage, which means the most I can buy is my cash balance, which is $25,000. Now, that's because Schwab is a little bit more conservative about extending leverage or borrowed money on small cap stocks. There are other brokers that are a little bit more generous, a little less conservative about letting you borrow to trade these types of high-risk securities. So you could see the the rationale for Schwab. They don't want people to buy $100,000 of a stock. It drops 50%. They're down 50 grand. They only had $25,000 in their account. Now the account's red 25 grand. That's a blowup. That's a disaster. Nobody wants that to happen. So they just figure we just won't let you trade on leverage for these higher risk stocks. Whereas other brokers understand that there's a whole population of traders that want to be really aggressive. Yes, blowups happen, but hopefully not too often. Maybe the broker puts additional risk measures in place so if they see you sort of sort of you know in a position where you're at risk of blowing up they automatically unwind your position for you and you know so they'll take a little bit more risk. In any case whether you're at a broker that's a bit more conservative like I am or you're at one that's um a bit more liberal with um you know letting you use the uh the margin it will it will ultimately actually make a difference in how quickly you can grow that account. So my limitation right now is that I don't have enough cash in the account since I don't have any leverage uh on any of these stocks to so I I don't have enough cash to take big positions. Uh but at the same time that also means I'm growing the account in a safer and probably more sustainable way. So it's taken 25 day or no 20 days to get to $25,000. Um, so I'm up 23,000 in total profit, which means my account has grown um approximately 1,161%. 45 trades, 77% accuracy. Average winner is around $516. All right, so uh, slow and steady wins the race. I don't know if you'd say this is slow, but it is steady progress. It's certainly not, you know, parabolic. I I am making a bit more than I was making in the first couple days, but uh but my average green days have kind of been steadily around, you know, 1,500 2,200. I don't think I've had a day bigger than 2900, maybe 2,800. So, you know, I'm I'm also not overtrading. I'm focusing on quality over quantity. It seems to be working. So, thank you guys as always for tuning in. Reminder for those of you guys that want to watch over my shoulders as I'm trading, there's a twoe trial. The link is pinned at the top of the comments and in the description. It's $20 for that trial, but it gives you access to a selection of my classes where you can learn more about my strategy. It also gives you access to this platform that I use every single day for charting, scanning, and breaking news. That's the Day Trade Dash software. And in the Day Trade Dash software, we also have a simulator. So, oops, it's not there. So, you can practice trading in a safe environment before you ever put real money on the line. So, you're thinking, "Oh, maybe I want to take a trade on this GMM." So, shift one, boom, you're in a 100 shares. Control- Z. Boom. You're out. All right. How much did I lose? A dollar. All right. I guess I can handle that. But if you can't make money in a simulator, you've got no business putting real money on the line. So, please take it slow. And reminder, trading is risky and my results are not typical. I'll see you guys back at it streaming first thing tomorrow morning at 7