What's up everyone? All right? So here we are: Second day of April 2nd Green Day For me, two big movers in the small cap market, number one Apop up over two hundred percent. Some really awesome trades there and in the second one LK down 75 percent on some pretty crazy news and then a big bounce off those loaves those the two stocks we're gonna talk about during today's recap. As always questions, comments, leave them down below and make sure you hit that subscribe button if you haven't already. All right, enjoy the recap.

What's up everyone? All right? So we're gonna do our midday market recap here and go over the trades from this morning. So a question is how much did I make I don't know yet? All right I haven't haven't seen my P&L So at this point I'm so this is where I'm at right now this month. I started well I had a red day on Monday and on Tuesday and so I decided on Wednesday which was the first day of April that I would reduce my share size. you know I'm kind of having this funny thing, it's very tricky for me, but what I'm finding is that I with bigger share size like anywhere sometimes when I you know 12,000 15,000 shares and the reason I do that is because I'm trying to get a big win and some of the biggest winners I've ever had have been on days where I had pretty big share size.

so I figure Well you know to have a ten thousand fifteen, twenty thirty thousand dollar day I need to be trading with ten to fifteen thousand shares. you know get to three dollars a share and so I start trading with you know kind of bigger and bigger share size. but what happens is as the share size goes up I actually am finding you know profits start to diminish a little bit and in fact to a point where I even sometimes think I make less with big share size than I would make with smaller share size. So this may be let's say is like 6,000 shares and this is trading average trades with 15,000 shares and it it's not so.

So why is that? Why is it not just a straight you know trajectory up as you increase your share size I Think the problem for me is that there's two two issues. Number one as a breakout trader I'm oh I sometimes buy dips but I mostly buy breakouts and II false breakouts. with small share size it's easy to get out like Imma trade like this right here. This is a false breakout and with 2,000 shares 4,000 shares you can jump in.

At 4 it goes up to 420 4 it comes back down. You can pop right back out no problem. but with 10,000 15,000 shares you can't jump in and out like that. In fact, I would say each time I take 12 thousand shares I probably am losing anywhere from four to ten or more sense in slippage you know I if I press the Buy button and that wouldn't be true for this stock LK But first stock like Apop if I press the Buy button right now for twelve thousand shares I wouldn't fill it all at 88 and 89 I probably fill it three four cents up and then when I go to get out and fill it three four cents down because these stocks are a little more thinly traded and so a set up that with two thousand, four thousand or maybe six thousand shares might be a winner.

That same trade with 10,000 or 12,000 or 15,000 shares for me could be a loser. and so I think that's where I you know start to see that that a little bit of decline in profitability and even last year I made the point last year to trade with bigger share size because the year before 2018 I made five hundred thousand dollars. So I was like okay, five hundred thousand dollars with average share size of I think it was eight thousand shares or something like that. So I thought okay so for 2019 I'm gonna increase that up to 10,000 to 12,000 shares and my expectation is that this is gonna increase up to 650 maybe seven hundred and it actually went down to 370.

You know? So I made a little bit less money and maybe that was just because last year was a little choppy, you know, but that was a full year of trading with larger share size and this year today I've continued to trade with bigger share size because I've you know I have that feeling of I'm to make money and trading with small share sites is counterproductive to trying to make money and so I'm gonna do this as a test for the month of April to trade with smaller share size I did it yesterday and limited myself to six thousand shares specifically because I said I can't have another red day So with a six thousand share limit on my first trade yesterday, I was planning on trading with 2,000 shares two thousand to four thousand shares I was like I'll start with small size and then you know if I have a loss on my first trade I can probably recover it and you know whatever if I go in on my first trade was sick with twelve thousand shares or even six thousand in this case and I lose thirty cents and all of a sudden I'm digging myself a hole. So anyways I just set this restriction yesterday. so this is two days trading with six thousand share max size and I you know it's not gonna be a home run day. My first trade on Apop I knew it was extended and I only took it with four thousand shares at forty five and I sold it at like fifty five and sixty seven before it went into a halt I then got back in for the break of three but sold that quickly.

The only thing I would say is that my accuracy today has been really solid because with small share size, it's been easy to get back out if I've had a loser. So wherein I finished today? You know what? That's not bad at all. Three thousand, Six Hundred Forty Five dollars. Not bad.

That's a solid morning and of course you could extrapolate that well. geez. Ross if you trade with twelve thousand shares, you would have been up seven thousand two hundred dollars. you would have doubled it.

But I don't think that that is a fair. I No longer think that that's a realistic or fair assumption because of the slippage getting in and out. So you know today wasn't a home run. and well, I you know, with six thousand share max size, that's almost fifty cents a share.

So you know to pull that out of the market is not bad. Apop had some big moves so this was this was the stock that was on our watch list pre market. So those of you guys who are kind of at the beginning of your learning curve every morning I run this scan and this is my my pre market scan and watchlist. So I've configured this to help me find stocks that are worth trading and Apop was at the top of the scam.

So what does that mean? It means that Apop yesterday was trading at about a dollar 40 with basically no volume. It's not something that we would have been looking at or particularly interested in. June says she wants to say hi to everyone girl, you're officially a celebrity. You say hi, say hello.

Alright, well so Apop yesterday was trading in a dollar of 38 cents a dollar 40 cents. It's cheap stock and all of a sudden this morning it's started squeezing up. It's squeezed up from a dollar 53 up to two, pulled back and then by by the sort of pre market highs it was at 250. So 250 right? there was the pre market high and I pulled up the stock and I was like okay, we've got a headline here, you know, receives a new patent allowance in China All right.

interesting. Am I familiar with the stock? And the answer is yes. I've traded it many times over the years. It's a stock that has a history of making big moves.

You can see these big volume days here and here you know this is a day where the stock just absolutely exploded again here. But then it started to pop up and fade. Pop up and fade. pop up and fade.

So we kind of for a while I lost interest in it. What? lower and lower you know again these days we would pop up in Faye Not really. hold up super well. Did a reverse split back here.

We had a nice bounce off the reverse split a day where it squeezed up to seven but then rolled over, came back down. and then these last couple times it's popped up this time here and then of course today. So initially I was actually hesitant on it I thought that you know and Tracy you're right. Thirty five hundred a day.

Two hundred forty day trading days. That would be about eight hundred and forty thousand dollars if I was averaging that. So you're absolutely right. You know, thirty five hundred, thirty six hundred a day is not bad anyway.

So Apop I was a little skeptical on at first and that's why on my very first trade I jumped in it with whatever it was. four thousand shares for the first one minute Campbell to make a new high break forty five and as soon as I was up ten cents I sold half I took two hundred dollars off the table, put some money in my pocket. it squeezed up to 65 67 I sold the rest. It felt like it was kind of topping out there and it actually it did pull back for a moment and then surged up to 83 and I was like don't chase it, just wait, wait for the next entry.

it opens from the next halt at about 295 and I bought for the break of the whole dollar which is three, it squeezed up to 330 pullback pullback I then bought. Let's see my next trade was right up in this area for the break through the highs. A quick trade, we hit the 200 moving average. a little resistance there broke through it pullback and then we had this pullback set up right here.

First Camel to make a new high. another nice trade first can only make a new high, another so so trade false breakout but this one for me I believe actually was about a 10 cent loss. So I think was my first loss but it wasn't It didn't kill me, it was only with 4,000 shares I didn't get much slippage so it was not too bad. Got back in for the break over 80 actually I Got back in right here for the break over 70.

got a quick pop up to 85. came back down small winner. nothing to be super excited about. Then it's squeezed up here I bought the break of four 20 it hit a high of 440.

then bought this pullback here for the break over 430 and sold on a squeezed up to 450 460. So a couple of nice trades there. It's now pulled back a little bit and at this point I'm saying you know I'm I'm throwing in the towel on it because I've had a good day and a certain point you have to walk away but high-volume on the breakouts right now. Honestly, it wouldn't surprise me if this does go up higher because it's holding the View app.

it's holding the moving averages. It looks good and now I want to comment a little bit on LK LK is right here down 73% and this was a tough one for me today because on the one hand I looked at this and I was like well man, this this looks like it's obviously looks like a lot. you know I'm not gonna short it, it looks like a long. it's a so sold off this looks like a nice bound setup.

First one minute Campbell to make a new high right here at 5 What happened is squeezed up to 560. Got halted, it opened higher, squeezed up to 6. halted again, open higher, squeezed up to 8. Unbelievable.

That's 100% right there. Absolutely incredible. Why didn't I trade it? I Didn't trade it because the headline let me just open this one And the headline is that Lk Luck and Coffee announces formation of independent special committee and provides certain information related to an ongoing internal investigation. And so the internal investigation said that beginning in the second quarter of 2009, the chief operating officer and a director of the company and several employees reported to him had engaged in certain misconduct including fabricating certain transactions.

So this goes on to say, internal investigations include that the aggregate sales amount associated with fabricated transactions around 2.2 billion. Certain costs and expenses were also substantially inflated by fab Katty transactions. So this is a pretty serious headway. and and this isn't You know this is coming from the company.

So here was my concern. My concern was that Nasdaq or the exchange would halt trading in this hall. trading of shares of this company pending investigation and it's not something that we haven't We've seen that before and when these stocks get halted pending SEC investigation or Nasdaq investigation, they can be halted for months. Literally months.

And so if you take a trade, you know you buy five four thousand shares of this for up to four times. For that four times five, you're putting twenty thousand dollars in it and then you're halted for months. Now that money is tied up, you can't sell the position that buying power is tied up and you're you're stuck. If you have that trade on margin, you're paying margin interest during that period of time.

And of course, it's a beginner trader. I Felt that the risk was too high to take a trade on this to potentially have any of you guys take trades on this and then get caught in a four five, six month long haul. I Knowing that that risk was there. had I taken a trade and that happened, not only would have been, would it have been terrible for me with my account, it could have been potentially career-ending for some of you guys with a small account so you know it's it's tough thing because as it turns out, this one ended up going up a hundred percent and I've started to feel a little frustrated and started to feel FOMO And you know it's in hindsight.

maybe I was being too conservative on it. If it doesn't halt today and it keeps trading all day and I'm I was just wrong, then it does mean that I left. You know I left this opportunity kind of on the table, but again, it's about a risk/reward analysis and so in this case, my feeling was that the downside risk for my own account with 4000 or 6000 shares, it would be potentially that I could lose almost all of it. That's a lot of downside risk.

That's certainly a lot more downside risk than something like Apop which is I could lose money, but I'll sell it and then you know move on to something else. So the downside risk felt high. The upside: profit potential I thought might be pretty good, but can you live with the downside risk? and I just I don't I wouldn't want to put something in front of you guys that I mean of course I was very clear about the risk involved with it I know some of you guys did end up trading it, but I wanted to make sure you guys fully understood that risk. and so you know we know day trading is risky.

but I just on this one. I just felt that I just didn't want to take that risk. So maybe maybe I was a little too conservative of me I don't know. but in any case I chose not to trade it.

Those of you who did trade it, you certainly were able to trade it with my full disclosure of my opinions on it and the reasons that I was gonna trade it so you hopefully we're well aware of the risk and if you took took it or trade it in a simulator revit cases then you know that's good and again by the time it was up here it was like well even if I wanted to, it's way to extend If I can't get it up here this is outrageous. So the only entry was down here out of the gates and at that point I was focusing on Apop. So you know what? I'm up 3400 on Apop and I think my downside risk was much much more limited in it and so I think that this was the right one to focus on today, knowing of course that it's hard to focus on multiple stocks at the same time. In any case, be MRA was also in our Gap scanner right down here I did take a trade on it out of the gates for a break over nine.

I was anticipating the break of the whole dollar would lead to a break over this pivot pre-market of 919. so I got it at 9. it popped up to 9 15 or something like that. it didn't break and so I stopped out and again with small share size I was able to actually make a little bit of money where it's that same trade with bigger share size would have been a loser.

So for those of you guys who are at the beginning of your learning curve and you're trying to make $100 $200 a day, it's a lot easier to make that with a thousand shares than to try to do that with 10,000 shares. Even though you might think 10,000 shares $100 is only one penny, but the cost of taking that big share size is you know is the 5 cents of slippage which could be like 500 bucks. So right now trading was slightly smaller size is yielding pretty good results. You know yesterday I made a thousand bucks today I'm up 3,400 so that's 4,500 in two days Mike Ecn fees and commissions will be a lot lower because I'm not trading as many shares, so that's a really nice benefit as well.

And you know we'll see how I finish up the week tomorrow on Friday But you know, just trying to get things off to a good start here for April Consistency Focusing on lower risk setups and trying to keep that mindset of leading by example and trying to be the best teacher which is another reason today that I said I'm not gonna trade the SP 500 SP y SP x l SP XS Even though we had unemployment numbers out up to 6 million and I thought the market would drop it, just say you know what? I'm not gonna mess around with that I'm gonna focus on the stuff that will give me hopefully the highest probability of success with the least amount of risk. and and I think that that that paid off well today. All right, so that's about it for me. I don't think I have anything else to go over so that's my recap.

I'll be back at it tomorrow Friday Those you guys who are going through the classes and you know, get in there this afternoon. you're welcome to stream the classes and we'll have a mentor session at 3 p.m. Tomorrow we'll have thermo Friday at 3 p.m. with me and Ted which will be really nice.

I'm looking forward to that and yeah, that's about it. Ok, that's it for me. See you guys tomorrow bye everyone! Hey have you seen my most popular video on YouTube It's got over 5 million views. You can check it out right here and check out one of my other videos on YouTube right here I Hope you guys enjoy it as always.

if you have questions, leave them down below in the comment section. I Personally respond to every comment that's posted.