What's up everyone? Alright so here we are a Thursday morning another green day of trading. you know, 600 bucks. It's a market where I'm taking what I can get I only trade it actually for 10 minutes today I got in I got out so 10 minutes 600 bucks two trades. Accuracy is good and right now we're still in that market where things are grinding and so I'm gonna be really cautious I'm actually trading with about a quarter of my full size.

So instead of trading with 1520 thousand shares, only trading the 5,000 shares. so make a little money here a little money there. when the market starts to pick back up, that's what I'm gonna. you know, pull out the big guns, start to trade 10 15,000 shares again and that's what I'm gonna see the big days but the reality is right now if the best I can do is 5 cents here, 10 cents there a profit I can't take 15,000 shares because slippage alone is gonna eat up that little bit of profit.

and then if I sell and take a loss, it's gonna hurt a lot. in order to trade with big size I need to be getting 20 30 40 cents per share of profit and I haven't seen in 20 30 40 cent per share. winner on a low price stock in about a week. So right now still the time for me to be careful.

Be cautious. Grind Small wins here and there. It's about treading water until the market picks back up again. So anyways, that's about it for me.

We're gonna break down all of today's trades in today's midday margarita. So just to quickly recap the trades from today. Really a very simple day. Not a lot of stress, not a lot of pressure.

Went small with the share size. so very. first trade was on Ifon $431 This one was on our Gap scanner. That's what we look for.

It was gapping up 17% right here. 1.6 million share flow. Alright, easy trade. There was news on it.

Bell rings. Jump in for a one minute opening range breakout. 1 minute opening range breakouts. We buy the high right there.

That's where I get in. My stop is at the midpoint. Alright, so that's my entry. That's my stop.

Target is retest to pre market highs. We didn't actually get that high. That would have been $5 but it went up enough to give me four hundred thirty dollars a profit. So I'm happy with that.

DST I Underestimated a little bit. 13 million share float I Wasn't sure if it would make a big move, but it did a really nice red to green move. The bell rings, it dips down and then it surges back up right here. I Wish I'd been able to jump in here, but you know we're just not in a market where I felt comfortable being that aggressive.

What we noticed certainly yesterday on Sei I was that Sei I would would pop up five cents and then drop 10 cents and then it would go sideways, go sideways and then it would pop up another five cents and then drop 10 cents. So it felt like every time I bought the breakout I was getting stopped out or I'd have to hold through the red until it came back up and that's what I started to feel what's happening on Ifon this morning really early on. when I got into I Fon I was noticing that it was popping up and dropping, popping up and dropping so that made me a little bit iffy. de St was doing the same thing.

Got in at the 47, it dropped down for a second and then it surges up. so it's kind of testing my stop and then it goes. Even in this area here, you can see it squeezes up and then it drops down. It squeezes up here and then right away drops back down so it's having a little bit of a hard time hold these levels.

Now one of the things that we talked about this morning was the fact that when you get into a market that is a little bit choppy and a little bit slow, what happens is that inevitably traders start to become more cautious. So even for me, I'm limiting myself to 5,000 shares right now. That's a that's a third of my full size. My full size is my full size is between 15 and 20 thousand shares.

So I'm trading right now with about 25 percent of my full size position and that's the most. I'm willing to go in that right now and I'm just one person. So when you multiply that by a hundred thousand traders, what you have are a hundred thousand traders trading at, you know, one quarter their amount of volume or whatever the ratio might be for that. That means less buyers at these breakout points, right? Even if I'm a buyer at the breakout point, I'm not buying as many shares and that's why the volume here is lower.

Lower volume breakouts mean less of a move. A smaller move. And when you start seeing these small moves, that's when short sellers will often come in and try to hit them in the short side. Because people that do get in if they don't pop up right away, they end up selling.

So they sell. Plus the short sellers sell and now you've got more sellers than buyers. And so what you end up seeing are these stocks like Junior SH Kind of did this that pop up, do not hold their level at all and then come right back down. And we saw it certainly earlier in the month on Jagex.

This stock that you know, it got me really good. It popped up here and then it up, closing the day in the red right. It squeezes up and it doesn't hold those levels at all and comes all the way back down. So really disappointing.

price action there. but that's kind of what we're seeing and that's a telltale sign that you're in a choppy market. So the best way to trade through Choppy markets is to reduce share size. That's what I do that for me.

has always felt like the easiest thing to do reduce my share size that way. if I do get caught in losses, the losses are smaller. I Had a red day last week I lost $14 and 28 cents. That was my worst day of the week last week and my best day was 24 dollars.

So I was trading with small size so that if I did have a loss, it would be small this week. I have a loss of 480 bucks. so that's a little bit bigger this week and my biggest Green Day is only 960. This week has actually been even choppier than last week I Didn't think it was possible, but it's happening so this is I would say right now we're in the third, we're in like the third almost.

Well, let's see one, two, three. Yeah, we're like in the third week of choppy trading. almost fourth week and five weeks ago was when we had I had a really good week I made $25,000 So yeah, the last three four weeks have been a little bit on the slow side and we just have to be patient. That's just the way it is.

The market works in these and flow type of patterns. It picks up and then it slows down. Then it picks back up again and it slows down. And the most important thing is that when it slows down, you're able to adjust your strategy so that you're not experiencing losses during a slow market, but instead just going.

Maybe sideways. Going sideways is totally okay, right? Making a little bit of profit is totally ok. You're treading water. and then when the market does open up again, that's when you're ready to, you know, pedal to the metal and get aggressive.

I Think one of the things that can be really frustrating as a trader is the fact that the very same setup that works in a strong market does not work in a weak market. And so you're like I'm doing the same thing. Why was I making $5,000 a day doing this two weeks ago and what's changed is not your trading. What's changed is the overall market.

So you have to remember that we're always dealing with that That factor. It's not something that we can control, we just have to react to it. We have to be mindful of the condition of the overall market and adapt our strategy. So in a slow market, reducing share size, not being as aggressive, about doubling for breakouts, and then in a strong market increasing share size, buying it more aggressive places like as hit the scanner and break through a half-dollar I wouldn't do that right now, but in a strong market I definitely would.

even that junior Sh stock they hit the scanners earlier. In a strong market, this thing might have gone right to 11 bucks because it's a recent IPO breakout set up right? So the hive. The recent IPO is 11 and hit the scanners and it just popped up from 8:20 So this is something that Momentum Traders in a strong market would probably have jumped on. but right now we all kind of hesitate a little bit.

We're like, well, let's give it a second when you multiply that by a hundred thousand traders all giving it a second, it ends up now working. we give up, right? So I Know this is one of those things about trading. You have to be willing to adapt to the market that you're in. I Was talking last night with some people about algorithmic trading and they were asking if Algos and high-frequency trading has changed my strategy.

You know, over the last whatever, five years or seven years and when I first started trading, I did trade a lot more of the higher priced stocks I was trading like Apple and Netflix and stuff like that and I was relative. I was doing okay on some of the ascending wedges and descending wedges and flat top breakouts and stuff like that. but eventually I found that those stocks became choppier and choppier and choppier and that they didn't respond as well to traditional chart patterns. And so what you realize is that a lot of those stocks are being held by institutional traders, pension fund managers, hedge fund managers, stuff like that.

and they're running algorithmic trading programs on those stocks and on the shares that they're holding. So they're buying and selling. Buying and selling. And the result is that the chart patterns become almost there.

It's almost like the chart pattern is a reflection of all of these algorithms: Change, change, you know, and shares changing hands. They're no longer really a reflection of retail traders, so retail trader might look at whatever a stock like Facebook and think, oh, you know this is a you know, this is a pattern that I really like. and today's particularly good day because it is up quite a bit. Facebook's been pretty pretty active in the last few weeks, but you know, whatever.

Take a stock that maybe hasn't been as active and what you'll end up noticing is that a lot of the price actions start to become irrational. It pops up and then it drops. and then it pops back up again and it drops. And so they're not as predictable.

And so that's when I started trading more and more the lower priced stocks and focusing on the stocks each day that we're on the highe day moment or on the on the Gap scanner. Because here's the thing, retail traders, we're all looking for the same thing. We're looking for volatility, right? We want volatility. We want an opportunity of to get in a stock that could move 10, 20, 30 %.

And so this morning, you know that's gonna be this small handful of stocks right here within these 10. This is where we're gonna have the most opportunities today. It doesn't mean that you couldn't trade Netflix and potentially make money on it, but the reality is, would the spreads being as they are? of course this is a higher price stock, You're gonna see a lot more false breakouts, the stock pops up, and then some Algo triggers and it, you know, shorts the stock or whatever it is, the stock drops down, you think it's going to be a short somehow go triggers and it buys up shares. and next thing you know it's it's going up and one algo triggers, another one triggers another one.

And that of course is when we had the flash crash right where all of a sudden they were all triggering each other and the market dropped. You know, a thousand points in one day and you know, since then, they've added circuit breaker halts and things like that so they can pause the entire market and give people managing those algorithms a chance. to, you know, press the reset button or do whatever they do so things don't get out of hand. But the market definitely has changed a lot in that way.

Where if a lot of these stocks really are driven, the majority of their volume 60, 70, maybe even 80 percent of their volume is not traders like us. it's it's actually computer programs just exchanging shares. However, each day the stocks are in the top 10 on this list. They're the ones that are most likely to have the highest ratio of retail traders, which means their patterns are going to be more logical.

The typical chart patterns that we trade will be respected in a better way and we'll see cleaner follow-through you know? Etsy Really nice move here today. First pull back, you know, continues higher so this is what we want to focus on now. right now we're still in the shopping market so we have to be a little careful. we're not seeing on the low price stocks.

The best follow through. You know this earnings breakout and that seems pretty nice. but it's a higher price stock and it's certainly not a breakout type of scalping trade. It's a buy it and hold it for 20-30 minutes type of trade.

For me, this is too much risk exposure at this price range. so you know I just I just leave it and let it do its thing. But yeah, really nice to see that opening up in any case. And yeah, so right now I think it's just a matter of being patient and we will see another parabolic stock.

It's a matter of time before we see a stock like I MTE that goes from two dollars to 40 dollars. Last week we had TP IV which was a pretty nice move from $6 to $10 or $11 here. So it you know a nearly 50% move, 100% move on that one. So we are seeing them now and then, but not at the same level as we were in April and May So just got to be patient.

If you can grind on four hundred five hundred dollars a day, you're doing well and when the market does pick back up, gotta be ready to put the pedal to the metal because there will be a lot of opportunities once we get that next hot streak. So right now it's just about discipline, training yourself. Stay focused on trying to capture a little bit of profit and that'll serve you really well when the market does pick back up. Alright, so anyways, that's it for me.

I Hope you guys have a great afternoon and we back at it first thing tomorrow morning. We'll finish up the week Friday hopefully with another Green Day and then go into the weekend feeling good. Alright, that's the game plan. I'll see you guys back here tomorrow morning.

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