What's up everyone? All right. So in this episode we're gonna do anatomy of the Trade on Admp. We'll go over. The stock went up.

Uh, hit a high of 400. Oh gosh, this this one made a really big move. It was 479 479 today hit a high of 8.28. I didn't expect this.

Uh I was able to trade it I made a bit of money on it, but it was a unexpected so I think it's worth talking about this tray, the anatomy of this trade and we can highlight during this episode kind of what is happening right now in the small cap Market because we're seeing a bit of a shift where we're certainly seeing more opportunities. and I think this is something to pay attention to. So Admp This morning, essentially it was a light volume Gap had a slight Gap I think um, just a slight Gap Pre-market not a big gap and at the open it squeezes up to 1.60 and then all of a sudden pops here from a dollar sixty to a dollar. eighty a dollar, ninety five, it pulls back, it breaks over two, it goes to 210.

and right in here, it pulls away to its first halt at 244.. So essentially going from 1.60 up to 244 very quickly. All right. So the characteristics of this stock: This is a stock that has a relatively low float of 2 million shares.

It is certainly priced under 20, which makes it popular among retail. Traders It is a somewhat recent reverse split. There was a reverse split back here on May 22nd that was 70 to 1. that's a pretty big split.

It also has quite a lot of room. uh, or it did this morning. up to its 200 moving average, the 200 is at ten dollars and seven cents. Now this is a stock that, um, it's a pharmaceutical company which is fine.

um I I Didn't see anything super exciting in the news headlines about it, so I was a little bit surprised that it was popping up as much as it was. but I think what we had here was a case of whatever is moving Traders are going to jump on it and that was uh, you know we've seen that in the past few days we've seen a couple of really huge moves and a number of them have been on stocks that did a recent reverse split. All right. So in the case of Admp, it starts squeezing up right here and essentially it started hitting my scanners as it broke over two dollars.

and when I saw it breaking over two I was like man, this thing is moving quick so I jumped in with a starter at two dollars and 30 cents which was like kind of right in here on this pullback and I was then looking for it to Halt up and it did halted up at 2.44 So this is a little bit of a hard uh setup for a lot of beginner. Traders because you're like man, this thing is just kind of like squeezing up. I I don't really understand the entry here at two dollars and 30 cents. So what I was looking at was the level two.

So I have my level two window up admp and I see that it breaks over two and I see 210 to 18 220. These candles here hits a high 226. it dips down. We know it dips down because you can see the bottom of this candle wick.

so it dips down and then it comes back up and it breaks 26 and that's where I got in right there as it broke over 30.. So I got a little bit of slippage on my entry. It would have been nice if I'd filled right at 26, but I filled it 30. and then it hits a high of 36 and it pulls back for just a second again and then it goes through 36 and goes up to 40 and halts up at 44..

So because this was a stock that was a somewhat recent reverse split with a very low float that was squeezing up I thought that Traders would jump on it because we've seen really good follow-through on these recent reverse split setups like yesterday on SNMP which went from 43 cents all the way up pre-market to over 14 a share. So when you see a setup that's working, you're going to be more inclined to jump on it quickly. Right now, it's recent reverse splits and specs, but in other markets it's IPOs or it's Chinese stocks. or it's Pharmaceuticals So it's it's that kind of shifts.

You know what's hot right now. But right now it's been reverse splits. And so you know this is another reverse split here. and I Think what's worth commenting on here is that during the Bear Market of 2022, so during the last year of being in a Bear Market a lot of these small cap stocks dropped a lot.

And because they were dropping a lot, a lot of them ended up doing secondary offerings to raise money. So we were seeing a lot of offerings. But because their stocks, uh, price got below a dollar, a lot of these small caps did reverse splits. So these reverse splits have resulted in there being a lot of stocks listed on the market with tiny floats.

And when you have a stock that has a really, really low float like we have on Aurc, which isn't a reverse split, but it's just an example of a low float stock. You know this went from ten dollars basically to sixty dollars in two days or SNMP which was a reverse split. In this case, this went from you know, 40 cents to over ten dollars a share up to 14 over 14. I mean this is an incredible move.

In terms of percentage moves, you know this is just it's huge and I think we're going to be seeing more of them because of the number of stocks that have sold off so much and then have had to do reverse splits which has gotten their price above a dollar but has reduced their flow. Now we may see secondary offerings follow some of these moves that would be very common. I Would be surprised if we don't, We won't see it on every single one, but we will certainly see reverse splits and then secondary offerings. That's a cycle, the secondary offering diluting the value of the stock, then the price goes down and then again another reverse split later.

This was the type of move that in 2016 I Believe it was led to the short squeeze on D-r-y-s Drys went from like five six dollars a share up to over a hundred and fifteen dollars a share which at the time was just insane. It was like unheard of and that was because it had done a series of reverse splits and every time it did people shorted it and just it kept going lower and lower and lower. So in a way by doing a reverse split it kept going back to like eight bucks and then people would short it back to 50 cents and go back to eight people, short it back to 50 cents. It kept happening again and again again because of the reverse split and secondary offering cycle.

and then it had one where it went to eight and then all of a sudden it goes to 12. it's up fifty percent of the day and now some of these people that are shorting it are getting forced to cover. But the float is so tiny they're trying to buy, but there aren't really very many Sellers and it goes to 16 and then it goes up to 20 to 25 to 30 35, 40, 45.50 and now it's just parabolic straight up. So we've seen a bit of that in the last couple of weeks on recent reverse splits.

So these are stocks that have been beaten up for a while. The Bear Market didn't treat them well. The company had to do a reverse split to get their price back above a dollar and the result is a very small float. And when Traders start short sellers start to get squeezed out.

You could see some pretty dramatic moves. So back to Admp. So on Admp this morning. Uh, it halts up on that first Halt And you know, initially it was showing a 260 resumption and then it was like 265.

and then it was 270, 275, 280. 290 3. 310 ended up resuming at three dollars and 13 cents which was a really strong resumption. It dips and as it curls back up.

I Bought the dip and now it goes into a second halt up at 376. it resumes higher. It opens here at 4 30. it dips down I Add it again on this curl as it comes back up.

but I'm adding smaller size like 1500 shares a thousand shares because buying something this extended when it was just at two dollars is very risky. so you know I took some profit off the table and then I added back with smaller size and we ended up getting a high a day of 8.28 I'm not sure what my best exit was. Um, let's see I see I filled 70 shares, seven zero at 8.25 and I filled 35 shares at 791.. so those were my two best exits.

Small size, it holds down, ends up pulling back a bit. It does try to curl right here to six and then flushes back down to under five. So I don't want to overstay my welcome on these. I Got green today which is great.

This was one of these stocks where you got one, two, three, almost three, three halts up which is really good yesterday on SNMP I don't even know how many halts up you got. This was crazy if we look at the intraday chart on it so again you know it starts to kind of it's they have the reverse split. It starts to kind of move up and this one is a little bit confusing because this must. the reverse split is um 30 to one.

This thing must have been like so cheap before the split anyways. um so it holds up at two and then it opens and halts up. And instantly at 243 opens and hauls up instantly. 285 opens hauls up instantly at 343..

this did. let's see. Um, this was how many halts was this? So that was One, two, three, four, five, six, seven, eight halts in a row going up. That doesn't happen often, but you know, Obviously, there were some people that tried to short it somewhere in here early on and they got forced out.

And because it was halting so quickly, they were probably struggling to cover their shares at market price. The thing is, it's you know when you've got these consolidation areas, it's not necessarily hard to accumulate a position. You've got consolidation. You've got buyers on the bid, sellers on the ask, but then once it starts to pull away all of a sudden, they can thin out really quickly.

And you know, trying to cover thirty thousand shares when it's going up these candles each one had 17 000 shares of volume 20, 000 shares of volume 23, 000 shares of volume, right? So if you were accumulated a thirty thousand share short position on this at around a dollar fifty in this area, well, you know by the time it went to 250, you were down 30 grand, 350 was 60. Grand I Mean the the loss just added up, you probably would have been down over well over a hundred thousand dollars if you just had to get forced out. So yeah, it's kind of crazy how fast that that could that can happen. that can add up and then after hours it rips all the way up to 14 a share.

You could have been down over 300. Grand That's wild. so of course that's the risk of Short Selling Um, but the good thing for long biased Traders is that every time you know people load up to the short side and you have these types of stocks, you can get some explosive moves and those are opportunities for us to trade to the long side. which I think is, um, less risky than trading to the short side.

So SNMP yesterday today we had ad MP what do we have tomorrow? It seems like this is the cycle right now of reverse splits stocks that are recent reverse splits. Now that you know, if you see a reverse split I saw one today taop I think it is, um where was the split on this No Maybe not maybe it wasn't this one. Um, you know there's going to be, there's going to be some that obviously don't work out as well. oce no, this just had actual like regular news.

Uh, but again, keep an eye on the reverse splits. They're not all gonna go, but you will certainly have some that do. And when they start to take off I think that's the time to step up to the plate. So I try to be cautious like something Like this.

Okay, it's a reverse split. So what do I do do I buy it here. do I buy it right now? Well, it's not doing anything right now. it's not doing anything.

So I gotta wait for it to start to pull away. So how am I going to know it's pulling away? Well, that's what the scanners are for. These scanners right here. These were years in the making developing these scanners to look for opportunities to find them in real time.

So when a stock like Admp starts to move, I can see it and participate in that move. That's the whole idea. So we need these scanners. These are so valuable in my trading.

I mean I I wouldn't I wouldn't be where I am if it weren't for using these scanners. I mean seriously, these things are just so helpful. So admp um let's see it hit for the first time down here at like 187 and you know a 172 looks like was the first alert at 172. so you know I I didn't trade it when it first hit the scanner.

Uh I saw it and I was like ah, it's a little cheap I don't know I'm not sure about that. it's a little cheap I I don't I don't think so and it wasn't like it was a reverse split yesterday. so I didn't think that was really quite enough. Um so I was like nah I don't know I don't think it's I don't think it's worth it.

but look at this rejection. see this again. This is why you guys don't want to overstay your welcome. Learning to get green and get out.

That is such a skill. Learning to be okay with leaving money on the table. You're gonna do one of two things every single day. You're either gonna leave money on the table or you're going to give back profit.

It's up to you. So I kind of have a rule of thumb that I trade as long as I can. but if I give back ten percent off the top, that's usually when I'm like, okay, time to slow down. If I give back 20 I get very cautious and if I give back half I'm done.

So today, just for instance, I was up. uh forty nine hundred dollars. uh pre-market I think it was forty nine hundred four thousand nine hundred dollars pre-market and then I gave back 1500 on Brsh I was up 400 on it and then lost. You know, 1100 1500.

So I'm down 1100. So I was up at that point only thirty five hundred and I remember saying I have to be very careful here I don't want to give back too much more I knew that 2500 was my halfway point. So I had like you know, 900 left to risk and with that was approximately when I took. Um, let's see now I can't remember actually exactly when I took the loss and when I started the trade on Admp.

But in any case, you know it was somewhere around there. And then Admp trades were what got me back up through four thousand, forty, five hundred, five thousand, and so on. But I try to stick it out as long as I can. I'm willing to give back a little profit because I feel like you're not fully maximizing until you've given a little back.

So that for me is sort of my way of knowing that I did the best I could on the day. So I trade until I give back like 10 and then that's how I know I'm kind of like that's good again. There's some days where I just walk away at my Hyatt day because you know I have to go or I just feel like whoa. you know that was a close call and I just don't want to take any more trades or I start to feel emotionally fueled whatever the case is.

But for the most part I try to stick around until I give back a little bit so that's that's my solution. Uh, but one of the things that I was thinking about in Admp, you know I was like man. I had a really good entry down there at two dollars and thirty cents. Uh, so when I was adding up here at 350 for the break of the half dollar, right? I was like I can't add 9 000 shares up here because then if I lose on it I'm going to be the guy who initially had a great cost basis but added way too much size and then went red.

So I sort of have to manage my share size and that's one of the biggest challenges with continuing to trade because if you took this trade here and you bought 10 000 shares of it then all of a sudden you could you could lose five grand or six grand easily. So making sure as you continue trading in the day that you're managing your risk so you don't have an instance where in one trade you give back your whole morning and that's obviously easier said than done. and the only way to prevent that 100 is to just stop trading completely. But you can prevent that to a very large degree by becoming more mindful in your position, sizing and more thoughtful about how you trade as you get further into the day.

So for me, reducing share size and so on and so forth. Now again, I I'll say there's always times that I've made exceptions to that in a really really hot Market you know where I've done so so well that I keep increasing size because I just things are just on fire. It's really hot and you know that attitude Would have paid well today and yesterday, but it the market it's been hot, but not consistently hot enough for me to have that level of confidence yet. So I'm still being a little bit conservative and you know my job in my opinion is to be consistent.

So it's not to have you know the biggest Green Day Necessarily followed by a big red day. It's to try to be consistently green. and that's over long, long periods of time. Years and years.

A decade. You know, long periods of time. So this is a marathon, not a Sprint But you know part of the marathon no doubt is is learning. When are the times within this race? So to speak to try to you know, make up some ground and really lean in and put the pedal to the metal.

And when is the time to pace yourself? Settle in and you know, be willing to just jog through the rain for a while, so to speak. So anyways, I Hope this has been helpful. Anatomy of a trade on Admp up at a peak 479 today. Reminders Always trading is risky.

My results aren't typical and there's no guarantee you'll find success. Whether you're trading your own, you'll learn from me. So manage your risk, take it slow and don't try to blindly follow me or anyone else.