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Finishing The Week +$22,150.96 Happy New Year!

happy new year

Finishing The Week +$22,150.96 Happy New Year!

 

Hey, everyone. We are finishing up the week here, and this was a crazy day. It did not go the way I planned at all. The good news is I’m finishing the day up over $9,000. The bad news is it was really choppy. We’re going to get into it in the midday market recap, but I just want to talk a little bit about the ups and downs I went through today, but first, let me just grab a quick drink. It taste so good when it hits your lips.

What happened today? Well, I started the day with a really small trade, a small winner, like six, seven hundred bucks, and I thought, this might be a little bit of a slower day. What’s interesting yesterday is I missed a huge move in the afternoon on CNET, C-N-E-T. Went from $4 to like $11 a share, and I missed the whole thing. Now, obviously, I don’t trade in the afternoons, and I’ve proven you can be a very successful trader trading just two hours a day, even trading just an hour a day. I just don’t trade the afternoons as a rule of thumb. It’s when I work with students and I do other things, but I couldn’t help but feel a little FOMO because I missed this big move.

This morning, I was watching CNET for possible continuation, and I was noticing that were several other Chinese sector stocks that were moving up pre-market, and so I thought, this might be a day where we see some really good opportunities. I ended up jumping into a couple of the stocks that were moving really quickly, and by 9:40, by 9:40, I was up almost $6,000.

Then I saw another stock hit the scanner, I jumped into it. I got in. I was up another $2,000, so I was up about 8,000, $9,000 on the day, and this stock squeezed from like 2.70 all the way up to $4 a share. I added at $4 because I was like, this thing is just, it’s exploding. I sold, and then I added back. I got in even higher, and then it dropped all the way back down to 3, and I lost all of what I made. I lost the $2,000 I made, plus another 6,000, and all of a sudden, like that, I went from being up $9,000 on the day to being up only 650.

Phew. My day is starting over, and I had to be really mindful of, okay, obviously, I want to get myself back into the green. Well, I’m in the green, but I want to get myself back over my daily goal of a thousand, and I’d really like to get myself back up well into four figures, three, four, five thousand. That might not happen. I might not be able to do it. I was fortunate that we ended up having some really good opportunities.

DELT, a huge move, a couple others, and I rebuilt. I was able to get myself all the way back up to 5,000, 6,000, 7,000, 8,000, $9,000, but in all of that trading, the commissions added up. With all that trading, the commissions added up, so I’ll tell you, well, I’ll save it for the midday recap. What do you think my total commissions are for the day? It’s a pretty big number. Let’s jump in and go over today’s midday market recap.

All right, everybody. Time for our midday market recap. We’re going to go over the trades from today. A crazy day. Not the day I was expecting when I came up to my office this morning, but all is well that ends up. Finishing with, let’s see, let me scroll this up for you, $9,741.84. Green is good. $23,000 profit in the last four days, so daily average, $5,549.12. $5,000 a day times 252 trading days, that would be a million dollars, but I don’t expect to maintain that average.

What I would like to do is increase my average that I had last year here in ’18. Last year, my average was $1,664 per day over the course of 236 days, and that equals to a total of 392,000, actually, no. Sorry. I’m going to have to update this because this is showing my profits here from this year, but it must’ve been 350,000 or something like that.

If I can get my average up to maybe closer to 2,500 a day average, let’s see, what would that look like? Let’s get out the old calculator. 2,500 times, well, 235. That’d be 587,000. I mean, I could live with that. That’d be pretty good. That would be about a 50% increase versus my current average over the last year, but I think that that’s not impossible. It just comes down to seeing if we have good momentum. I mean, that’s really the question. Are we going to have really good momentum or are we going to have great opportunities, or is this going to be a year where we have a really slow summer, and we’ve just gotta deal with the grind because that’s what we had last summer. We had six months of having to just grind on small numbers. That really slows things down.

Certainly, my hope would be that I can be averaging closer to 2,000, 2,500 a day, but on the one hand, I’ll say sure, I could do it with days like today, On the other hand, I’m saying I can’t do it if I keep trading like I did today because I started the day with a couple of good trades. I was up $9,000 on the day, and then I lost 8,000. I went all the way down to being up only 640 bucks, thanks to CCCL, and it’s not thanks to CCCL, it’s thanks to me. It’s thanks to me being too aggressive. I gave back my entire morning and had to start over.

Let’s see. Where was that trade? My very first trade, CCIH this morning. China stocks, trading the sympathy, riding the momentum. You can see these had some good squeezes right out of the gates. Break of pre-market highs from $3 all the way up to a high of 4.75. On CCIH, I’ve got 5,551 of profit. Not bad, right?

Let’s back this up, look at the chart. You can see right out of the gates, just squeezing up. I jumped in this first at 3.30, and then I got out, and then I got back in at 3.90, 3.89, and I was selling at 3.56, sorry, 4.56, 4.57, getting back in at 4.30, selling at 4.50. I mean, I was just riding this momentum. It was awesome. Built up my cushion. I was up $5,000 right out of the gates on CCIH. I had a small trade on CNIT. I only made 246 bucks. Really, basically, at that point, I was in good shape. Take a trade on CREG. I jumped in at 3.45. This is another China stock. Today, it was all China stocks, which is kind of funny.

CREG, squeezing up. I jumped in it. Ended up making a little bit of money on that, 1,700 bucks, solid, and then here comes CCCL. I see it hit the scans, and I’m like, I know the name, I know the routine. CREG, CCIH, CCCL, it’s another China stock. I’m jumping in. I jumped in at 3.30. It had already popped up quite a bit, and I thought, this could get halted on a circuit breaker, but I’m going to jump in here at 3.30. I’m on at 3.30, adding at 3.43, squeezes up, whoops, squeezes up to 3.70. I sold half, and then I added back at 4 because I was kind of like, why not? Look at this thing. It’s just going parabolic. It hit a high of 4.28. I thought it was going to get halted, maybe resume at $5 or something like that. It ended up turning around and coming all the way back down to 2.69. I stopped out at 2.86.

The problem was, I had 10,000 shares at an average of 3.68. That hurt. That was a big loss, and it’s one of these things where you get into the heat of the moment, and you’re seeing the opportunity, you’re seeing the green, and you’re just pushing it, and look at how quickly things can turn around. This just, it turned around real fast, and I stopped out on this candle here.

It pulled back. I gave it a second to curl back out, and then I had to stop out. That was disappointing, and I just felt like I pushed it too hard, I was being too aggressive. I was worried about this type of thing happening because we saw it yesterday a little bit on GBR. You can see here on this pop, we saw it on CONE, we saw it on, let’s see. You can see right here, right there. We saw it on CPAH, so I knew it was a possibility, and I just, I pushed my luck, and I got slammed back down. At that point, here at 9:45, I basically had to start over, so I started over. Got into another trade on CREG. Rode this momentum to a high of 4. On this one, I had 10,000 shares. Was looking for a nice big break. Didn’t really get it, stopped out.

Then we have DELT. Squeezes up. Gets halted on circuit breaker. Here’s the thing, what happened with DELT is really what I thought would happen with CCCL, but I was wrong. Anyways, made it back, I guess, on DELT, $6,500. This one popped up. It hit a high of 2.60. I was in at 2.40, selling at 2.59, getting back in at 2.58, selling up at 3.07, 3, oh, no. This was a small trade here on CNTF. Jumped into it off the scanner, lost 700 bucks. Still focusing mostly on DELT, actively trading it, getting in, getting out. I was able to make it back.

Quick little trade on YECO. Hit the scanners. Quick little trade on HTGM, also hit the scanners. I was able to be aggressive and get myself back into the green today, but it really wasn’t easy. A lot of fake-outs. YECO fake-out, HTGM. Look at this. All the way up to here, and then all the way back down. Just kind of a tricky day. If you got on the wrong side of trades today, it was not fun. CCCR, Joseph is saying at the open, yeah, I saw that one as well. Anther China stock. Nice squeeze there.

You know what? We’re in a market where we’re see opportunities, but we also have to be careful about FOMO, the fear of missing out, chasing these stocks too high, trying to swing for the fences. It’s … I think that I’m trying to get myself on the leaderboard and in good shape for the year as quick as I can, and the reason is because, for me, this time of the year is kind of uncomfortable because the first week is like, you’re starting from zero. You’re starting over. I mean, you’re literally starting over for the year, and so there’s that feeling of, I need to get myself into the green as quick as I can, I need to get myself so I’ve at least have some comfort on the year, and so this is an uncomfortable feeling. What’s the best way that we can alleviate uncomfortable feelings?

Well, in this case, it’s to make as much money as quick as I can. That’s going to make me even more aggressive at times at the beginning of the year and at the beginning of the month because I want to build up my cushion as fast as I can, but just like Dennis says, base hits. You have to focus on base hits because we’re in a market right now where you can get away with being a little aggressive, but we will find the time where the market slows down, and we cannot be aggressive. If we’re aggressive, we’re just going to be giving up money, giving back profits left and right.

You’ll have to wait for the pull-backs, you’ll have to be patient, and that time will come, but right now, we are in a little bit of market that allows us to get away with breaking some of the rules and being too aggressive. When you have stocks like CNET yesterday that from $4 to $11, I mean, you can get away with chasing stuff because, look, anywhere you chase this, you made money, anywhere in this area, and that can be a little bit of a blessing and a curse that, yes, it’s nice that you make money and you can be aggressive, but the curse is that you start to learn and reinforce bad habits, being a little too aggressive.

I guess the important thing is knowing when to throttle up that risk, put the pedal to the metal and be aggressive, and when to taper it back. That’s the thing that even I struggle with at times. We’ll continue to push it a little too hard, and usually, my rule of thumb is I push it until I start to get a little burn. I get as close to the fire as I can, and then when I start to really feel the heat, I step back.

Today, it just, it came up on me fast. I was having a great day, and then all of a sudden, it was like … boom. There’s a blast, and I’m, just lost $8,000 of profit. It’s disappointing that it came up on me that fast. I wasn’t expecting CCCL to squeeze up as much as it did, and I wasn’t expecting it to drop as much as it did. It just, it sort of surprised me on both sides. When I was in it at 68, all of a sudden, the bid dropped down to like 30. The bid was like 30 by 60, and that’s when I was like, uh, oh. This might get nasty, and it did.

It could’ve gone back up, but it didn’t, and it went the other way. That’s usually the time where I start to step back. The trades after it, on CREG, I felt okay on that one because it was showing some really good strength, it was also a China stock, so my entry on that in the 60s I thought was a decent entry for a pull-back trade. It ended up doing a one-minute pull-back here. From 68 to 79 was good. You see, I didn’t start with 10,000 shares. I started a little smaller on the size, and I was like, I’ll just keep adding 2,500 shares every 10 to 20 cents, and I’ll get myself up to 10,000 with a good cost basis, but it ended up not continuing.

I tried doing the same thing on DELT, my very last trade of the day. I got in DELT at, you could see here, 3.14. It’s a pretty good entry. I was right in this area. I’m in at 3.14. I add at 3.20. I add more at 3.50, and I was going to add more at 3.75 and more at $4. I was prepared to get myself up to 15,000 shares on this because I knew by the time I had 15,000, I’d already be up like 50 cents a share. I’d already be up 7,500 bucks, and then if it squeeze over 4 into another circuit breaker haul and opens at 4.75 or 5, it’s going to be a $15,000 winner, and it was on the house at the point because I was already up nine grand.

By the time I’m adding up here, what I risked was the profit from those early shares at 3.14. I ended up being up another like 2,000 bucks on these 5,000 shares from 4.19. I didn’t sell them because I was trying to roll that into a bigger winner. Again, that’s kind of the base hit versus swinging for the fences, but I suppose on the day when you’ve got this many big green names on the positions board, it’s a good indicator that it might be the type of day that’s worth being a little more aggressive and taking a little bit of a bigger stab.

With the halts, that’s a good question, CNET, not getting halted yesterday, honestly, I don’t really know. It’s sort of a mystery, why didn’t this get halted, why didn’t CCCL get halted? It squeezed from 2.50 all the way up to 4.28. I mean, that’s like 100% squeeze, and it didn’t get halted. That’s a little strange. I don’t know. It might’ve been something to do with the spreads being bigger, but the spreads were normal on CNET, so it’s just kind of a mystery.

DELT, it popped up here. I was watching it. It got halted right away at a $1.57. I don’t know. You try to understand the rules, and then the rules change or they’re different for different stocks, and so we’re left scratching our head sometimes.

In any case, that approach of adding every 10 to 15 cents can work on stocks like DELT that go parabolic, like CNET, but then you just have to make sure you set your stop at break-even. On DELT, my new average was 3.25, and so I stopped out 3.31 and 3.21, which meant I actually made only 1 cent per share, but I was able to stop out at break-even, so that was a 10,000-share position that had a break-even stop on. Stops break even, hey, if this thing goes, 50 cents or a dollar per share, that’s $5-10,000 of profit, and if it stops me out at break-even, so be it. I’m still walking away with almost $10,000 today.

Now, the big question, what are my commissions today? Over $700. Isn’t that crazy? $700. I’ve got a hundred trades here. The hundred trades, that’s not that bad. 96 trades time 2.50 per trade. That’s 250 bucks. 96 times 2.50, 240 bucks. Then I’ve got 166,000 shares where I removed liquidity and 80,000 where I added liquidity. When you add liquidity, you get an ECN rebate. When you remove liquidity, you get charged for it. Probably, I guess I’m average around 100,000 shares of liquidity times .0015, 150 bucks. It’s going to be higher than that. I mean, I just know it’ll be higher than that. It’s probably going to be, because you don’t get as much ECN rebate as you do pay when you pull liquidity. You get about half back, so probably my net is like 140,000 shares and 300 bucks of ECN fees.

It’s … That’s the downside of being as aggressive as I was, but obviously, I can afford it today. Hopefully, tomorrow or Monday will be a little bit smoother, and I can just get in, get a couple of good trades, and get out. Total number of trades today is, I’m looking at 13, but I was green on 11 out of the 13. Accuracy’s 84%, so that’s not bad. Green is good. It’s a good way to go into the weekend.

All right, guys. Anyways, solid day of trading. Solid week. Good start to the year. We’ve got $22,000 of profit. That’s what I’m sitting on right now, and just going to keep building it up, see what we can do for the month of January, but right now, it’s feeling like this could be a really good month. Let’s try to capitalize on the momentum knowing that it will have to tide us over until the inevitable slow period that will come at some point.

All right, guys. I hope everyone has an awesome weekend, and I will see you all first thing Monday morning back here for our pre-market analysis at 9:00 a.m. All right, I’ll see you guys then.

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