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Trash Panda Strikes Again +$3,817! | Ross’ Trade Recap

trash panda

What’s up everyone? The trash panda strikes again, $3,817 in an hour of trading. Another green day and a great start to the month of November.

 

That’s exactly what I wanted. Now,. I’ll say it during the recap that I’m expecting November is going to be a strong month because for the last two consecutive years, this would be the third consecutive year, November has been really, really strong. Two years ago we had shipping stocks, DRYS, GLBS, SINO, EC, DCIX, TOPS, SHIP, I mean all of the container shipping stocks went parabolic. It was crazy. A year ago we had blockchain. Everything with cryptocurrency, any stock that came out with a headline that they were going to dabble and get into cryptocurrency markets, boom, stock went up 200, 300%. So what’s it going to be this year? I don’t know. But, I’m hoping that we see something and I’m kind of expecting it.

So, to start the month with a green day is awesome because what I really want to do is build up my profit cushion, so when we start seeing things going crazy, I can afford to take all the risk, I can afford to take 10,000, 15,000, maybe 20,000 shares and let it ride, knowing that worst case scenario, maybe I do get hit with a loss, but best case scenario, I might have a $50,000 a day. That’s within the range of what I would expect. Last year, I had two days where I made $75,000, two back to back days, $75,000 of profit and that was in November. So, that’s kind of what I’m thinking about.

Big month November, December, strong markets going into January. This is the time to dig deep, really focus study hard. If you’re a beginner trader, rewatch tons of these recaps. Even go back to November of last year and watch some of those recaps. Get prepared because this is the hot time of year. All right, so enjoy the recap. Any questions, any comments, leave them below and this raccoon will come back and answer them later today.

All right, everyone. Time for our midday market recap. The raccoon strikes again, up $3,816.19 this morning. So another nice green day. Let’s see, where is it? I’m just looking at this message. Doug was just asking me if I’d sell my raccoon suit and I told him it’s for $6,800 after the last two days of trading. So, he’s welcome to it, but the value is going up with everyday that passes. I had such a great day yesterday. I figured I’d wear it again today and see what we could do. Another $3,000. So am I going to wear it tomorrow? You better believe it. I’m not taking this suit it off. I’m wearing it to the grocery store. So let’s see. Today is the 200th day of the year for me, up $3,816.19 which is awesome. So that’s a really good start to the month of November.

Something I was saying earlier during the midday recap, or during the pre-market analysis was that I have high hopes for the month of November because for the last two consecutive years, November has been really good. Last year we had some big movers thanks to bitcoin and cryptocurrency, just everything going crazy there. The year before we had crazy moves on DRYS and shipping stocks. When I say crazy moves, I mean stocks going from literally $2 to $3 to over $100 per share in two or three days. So, today I made some money, traded a couple of movers. GLBS was the one that I traded and made the most on. This one from $8 to $10. All right. Made $3,800 on it. Think about when they go from $2 to $100 and the potential for profit on that type of move. I mean, it’s really quite something.

So, I’ll put my trading platform up here. This has been now probably like third or fourth week of trading on Sterling. I think I started trading on this, actually it was like right around the beginning of October, so almost the whole month of October I’ve been trading on this platform, getting a feel for it. I know a lot of you guys already use Sterling with either Interactive Brokers or with the CME Group, the firm down offshore that doesn’t enforce the PDT rule. So I had seen a bunch of emails about traders using it, having questions about it, asking if I could create one of my custom layouts and that’s of course what I’m working on. I use this platform to execute trades in my Lightspeed account, so they’re connected. So this is my Lightspeed account that I’m trading in every day and I’m just using this as a different front end platform.

I think the cool thing with this is that if you are using it with CMEG and you’ve got a small account there, you fund an account with 500 bucks, you trade with it till it’s 10,000, 15,000, 20,000, $30,000 and you decide, all right, I want to move that money back to the United States and trade with Interactive Brokers or with Lightspeed, you can switch and continue using the same exact platform that you’ve traded on and that you’ve made all this money on. That’s one of the things that’s really nice with agnostic platforms that you can use them with multiple brokers and so you’re not tied to one broker and you could even have multiple brokers at once if you want to and use the same platform and have it open three times because you have one broker that’s your IRA account and one broker that’s really good for short selling and another one that’s got really cheap commissions for trading to the long side, whatever you want.

So anyway, going to keep trading in this account for the foreseeable future, I’ve gotten used to it. I am putting in a couple of requests with Sterling for a couple little custom development things, of things that would make this a little bit better for me and then I want to turn that into a default layout that you guys would be able to install for yourselves. So anyways, as you can see today, the two stocks I traded, both shipping stocks. Well, you might not know that on the surface, but both of these are shipping stocks, GLBS and PXS. So these are container ships, the ships that move those big freight containers across the ocean.

Now, this is the sector that was so strong two years ago and in the last year, GLBS probably has been the strongest of these stocks. They’ve only done a couple of reverse splits. They did one here. You can see back in October of 2007, no, this was 2016. It made this really big move, just after a reverse split, right? We see that all the time. Huge move, pulls back, sells off. They do attend to one reverse split about two weeks ago, and since then it’s gone from $4 up to 10 bucks and it seems to be holding these levels pretty well. So I wouldn’t be surprised if we continue to see opportunities on this, although it is getting a little outside my price range.

Ricardo, Sterling Trader isn’t a broker so they don’t enforce the PDT rule. This is just a trading platform, kind of like DAS Trader. This company, all they do is software. So they white label their software out to companies like SureTrader, Speed Trader, Interactive Brokers, Lightspeed, CMEG, et cetera. I don’t know all the ones they use or don’t use, but you can look and check and see if your broker is supported. So they will just enforce whatever rules are being enforced by your actual broker. You might be able to get around the PDT rule using this with CMEG, but not if you’re using it with Lightspeed.

Anyways, so would GLBS, on this one, I had seen yesterday that it made a nice move, finally broke over the 200 moving average, which was this purple magenta line on the daily chart. So we broke over that level and got up to eight bucks. So today I was naturally watching it for continuation. The bell rings and kind of light volume and then all of a sudden here on this candle, boom, it pops up to 8.90, all right. So it was on light volume but I was like, “This thing has potential.” I mean, it really does. So I bought the first one-minute pullback right here, getting in at $9. 3,000 shares at 9. Added another 3000 shares at 9.50. Actually, sorry, I got a partial fill at 9. So like 2,000 shares at 9. Added 3,000 at 9.50. Added another 2,000 at 9.88. I held through this pullback right here, it surges back up, boom and I’m selling over $10 right here.

So my average price of entry was 9.40 and I sold at just over $10. I had about 7,000 shares. So seven times seven or seven times six, seven times five, about 50 cents of profit. In total up $3,809. So you could see my sell orders. Again, on this one, I have to scale out of the trade. Selling at 10.04, 95, 10.28. Just putting orders on the ask. Trying to get filled. A lot of these were smaller orders. I got to adjust this again here. All right. There we go. Okay, yeah, you could see these smaller orders getting filled, but eventually was able to get out of the position and lock up the profit. So then that was a pretty good trade overall and then that was my last trade of the day.

My first trade this morning was on PXS. On this one, I jumped in as it was squeezing up right here. I jumped in at, where was this? I got in this at 2.85 right here as it popped up, it pulled back and then it surged up right in that candle. So I’m in at 2.85, I hold for the move to 2.95, only holding 3,000 shares. Was looking for it to break over that level of $3. It didn’t break, it came back down and I got out of it with my 3,000 shares at 85. So I made $7 on that trade, didn’t even cover commissions. That one will be a loser after commissions are factored in, but whatever, it’s not a big loss. So it’s okay.

PXS ended up hitting a high of 3.15 and it’s back at 2.85, my current, my entry price. GLBS is still above my entry price. So both of these are holding up pretty nicely, which is good to see. If I was still holding this right now, I would be up 40 cents on the trade and I’d be watching for a break back over 10 and then move up to 10.50, breaking over high of day and then 11 and who knows. This one might give us a little bit of a move. Another one that was on the scans earlier was MRNS and on this one I’m kind of bummed because I had … I wanted to actually short this stock. So this one, curling up on the daily chart and tapping the 200 moving average. That is a level of resistance. So I put my order on MRNS too short it. I had it at 6.20. So it pops up here to 6.27. It drops back down to 6, it pops back up to 6.25. This is a one-minute micro pull back.

I was expecting a break of the high of day and then as it came back down below that, I was going to short it at 20 and then my target was $6. Well it ended up not breaking 27, it just ended up flushing down to 93 and then selling off all the way down to 5.50. So that was a really good idea. It just didn’t quite give me my entry, which was a little disappointing but it is the way it goes. HPR was another one on the scans. On this one, I was watching it, but it just didn’t end up really continuing its strength. So left that one alone. Scanners didn’t show. It didn’t really give us a whole lot else. SLS, a lower price stock. I was kind of watching it, but I just sort of missed opportunities on it and then didn’t end up wanting to chase it so left it alone.

So anyways, I’ll finish today up just under $4,000. It’s a great start to the new month. I’m hoping November continues to be strong. Of course we’re going to have some holidays this month. Market’s closed on Thanksgiving. Typically it’s a half day, the day after Thanksgiving. I don’t usually trade the day after Thanksgiving. So most likely, I’ll just take those two days off completely. So two fewer days this month, but we should be okay. I mean, we still have obviously tomorrow and then three full weeks of trading and then just one short week at Thanksgiving time. So I think that we’ll be in good shape here. Hopefully we continue to see some good opportunities, some good momentum and everything else.

Grace, no I’m not doing a 100K challenge that we did last year in November and December. Last year we did a $100,000 challenge with me and 10 other students and combine, the goal was that combined we make $100,000 and we ended up making about $250,000, which was nice. It was a good month for the 10 of us. But yeah, so there’s GLBS predictably breaking out there. That’s a nice move. So the high is now 11.14. No circuit breaker halts on it, but nice to see that continued momentum. The spreads are bigger on it for sure. Right there you see a 14-cent spread between the bid and the ask. So if you got in right now at 20, you’re instantly down 10 cents. It flashes to 21 and then it will be 30 and then 11. I mean, that just flash 20 cents on the bid.

You see this red line right here, that’s where this would get halted on a circuit breaker if it keeps going as quickly as it is, a cool feature on Sterling. So again, I’m going to be fortunate that I’m green today and not overstay my welcome. The time I make the most money is the first hour of the day. So yeah, it’s nice to see that breakout from 10 up to 11:20 but I’m not sure that there was any way to really know it would happen then and not 20 minutes from now. I don’t really see this exact pattern. I was expecting that we would probably break out at some point today, but that it happened here, I don’t know how to really anticipate that. The high is now 11.40. This will be a fresh one-minute pullback after a five-minute breakout. Some traders would be buyers over 11.40, some short sellers might throw in the towel, but again, I’ll just be glad that I did well on it.

My entry of 9.40, now up original entry, almost $2 per share. So there’s 45 on the ask. There’s 50, that little pull back getting bought up, but 35 on the bid. So it’s still 15-cent spread, 30, on 29, 30, 31, 60. So now you’ve got almost a 30-cent spread. So on this type of stock what I’d be doing is trying to sell on the ask. I put an order at 57. It’s not filling, I’d put a new order at 51. Maybe the order of 57 is still there. Maybe I cancel both of them, now I’m putting an order at 44, 43 now 27. Now, so you just keep putting out orders trying to sell the ask. Of course you can sell the bid, you can hit the bid at any time, but you’ll probably get slippage because you’re selling to the bid, to the market and you won’t get as good of a fill.

So now it has a high day 57. So, we kind of watched that level, 57. But again, I’m not gonna trade. I’m going to hold my hands. I like seeing this type of momentum. I’m hoping that we do see a stock that goes really just bananas, that goes crazy. The name is LULD. You’ll see it as a market maker, it appears as a market maker, but it’s LULD for a circuit breaker halt. So anyways, yeah, see what GLBS does today. Even if it does end up going 15, $20, by that time the spreads are going to get even bigger, 30, 40, 50-cent spreads, might even get 80-cent spreads. I mean, it’s not unthinkable to see that on a stock at that price range with this low float.

The other thing with this is that we really don’t have a catalyst, regained Nasdaq compliance, which is great, but that’s not really a catalyst. So we’re kind of getting to a point since the reverse split where it’s like, “All right, what is driving the stock higher?” I don’t know that it really has risk of circuit breaker halt pending news or T12 yet, but if we end up seeing a move up to 15, 20 or $25, then if we just go parabolic, that starts to become a risk. But anyways, so that’s it for me. I’ve got a meeting coming up here at 11 AM so I’m going to jump over to that and I wish you guys luck for those that keep trading it. But, also a reminder to not give back your morning profits. So, scaling back on your share size going into the afternoon is usually a good idea. All right, so I’ll see you guys first thing tomorrow morning around 9, 9:15. We’ll hopefully have another day of green trading and the raccoon wIll strike. All right. See you guys tomorrow.

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