All right, so let's see. We're gonna go over the trades from today and this was kind of an interesting day because the Gap scanner this morning and you guys can go back and watch the pre-market watch list if you want. It really wasn't that great. The the couple that we were watching we had CL WT on watch the pre market high was 360 and it was like 365.

But the problem is this is a five cent tick stock. So it trades in five cent increments and so this is different from a stock that simply has a big spread. It will only trade in five cent increments 315 by 320, 325 by 330, etc. And so what? This effectively is done.

If you think about from $3 to $4 on the typical stock, how many places can you put an order? there's there's a hundred places, right? Because you could put them at every single penny. And there's a hundred pennies in a dollar. So you've got orders spread across this large kind of this range. And it's not uncommon to see these stocks that trade and one cent increments move very quickly.

So what the five cent tick pilot program has done is its removed 80% of those different price points and brought them just down to the the 20 price points between $1 and then the next dollar. So from 3, you've got 305, 310, 315, 320, 325, 330, right? So what happens is all of the orders that would typically be spread over the 100 different price points are now lumped in these little kind of like their own. It's almost like thinking of think of ruts on a dirt road. Everything is getting lumped into the ruts and what that does is it.

It ends up that there are lots of buyers and sellers at each one of those kind of ruts at each one of those tiers, and the stocks just don't seem to move as quickly because it takes a lot more buying to overcome the number of sellers that are grouped in each one of those little ruts or trenches or whatever you want to call it. So as a result, I don't usually trade them because if I want to get in this right here at 320, I could buy it 320. and yeah, sure, I'm down fifteen cents on the bid. whatever that's That's not the biggest deal, but the reality is, it's gonna take a lot of buying for it to even just move up.

One tear and so one tear would be to move up to twenty-five and then for it to move up to thirty is going to take even more buying. and so it's almost like they just they trade in a very different way. They trade very slowly. they trade more like a stock like Siri which has a 1 cent spread.

Siri has a 1 cent spread, but there are so many buyers and sellers on both sides that moves very slowly and that was kind of the idea of the pilot program. It was to reduce volatility and to make it easier for for investors to buy large stakes in these types of companies. Right now, if you pull up a stock like KBS f even though this has a hundred possible places, you could put an order between each dollar because it's a traditional 1 cent spread. What you find is that the orders become very thin.

You might have a couple of orders at sixty seven and then 62 and then 60 and then 55. And on the other side you might have an order eighty nine, one at 94, 96, and 601 and so it. If you have someone that comes in and buys 10,000 shares, this could very quickly go straight up to 610. And that just does not seem to happen with the five cent tech stocks.

They just seem to get stuck in these little trenches in these little grooves. and so generally we don't really want to trade them because they haven't been good for date. Rates the same as we wouldn't trade Siri or Bank of America. We don't date trade these ones for the same reason: they move typically pretty slowly now.

Bank of America is a little bit more expensive now, so it has a bit more range, but Siri is definitely a slow one. sprint. This is another one that moves really very slowly. It's so thickly traded.

As day traders, we look for volatility and we just haven't seemed to find it in stocks that are participating in the 5 cent tick pilot program. Now that is certainly part of the goal of the 5 cent a pilot program. It was to reduce volatility. but it was.

It was actually primarily the reason it was created wasn't actually to reduce volatility. That was sort of one of the other possible. Well, they were wondering if it would if it would help reduce volatility and make those stocks easier to trade. But the real reason that it it came around was because of concern that there were fewer IPOs of small caps in the last 10 years since the 1 cent since decimalisation occurred.

right? Because before decimalisation, all stocks traded in fractions and so there in Congress And you know, blah blah. There was concern that since decimalisation occurred, there had been fewer IPOs of small cap stocks. And that means companies that you know potentially could come into the market are getting that opportunity. and they wanted to encourage institutional investors to be able to make money on small cap stocks to the point where they would want to encourage more IPOs And they thought maybe this 5 cent tick pilot program would help that.

that would be good for you know, American businesses and things like that and I Think that the results so far from the few things I've read is that this has not increased institutional trading in these stocks. Yes, the institutional market makers do make more money with a five cent spread, but it hasn't been enough to make any impact where we're seeing more IPOs or anything like that. So ultimately the 5 cent tick pilot program based on what we've seen and what I've read is probably not going to get approved for for actual implementation across the whole market. Who knows I mean maybe maybe it will, but it doesn't look like it well.

So anyways, right now when I see a stock that's 5 cent a pilot program like CL WT I pretty much just don't trade it I know that it's gonna be more difficult to trade. However, this was one that did make a decent move here from three dollars up to a high of 395 and I was impressed. It pulled back here a little bit, it broke down and then it curled and broke over four dollars and to me I felt like this was gonna be a false breakout and it was gonna probably roll over. so I said that I kind of was watching it short below four dollars stop would have been high a day and that actually would have been a really great trade and I didn't take it which was kind of silly.

I should have taken a stab at it. but as I was looking at it I just I just wasn't sure I wasn't sure it was gonna work out very well. So anyways I did take any long trades on that and I did take anything short on it. but there was that one opportunity there.

Okay, so the one that I traded this morning was UAV s which was kind of interesting because this is not a stock that we were familiar with. However, it was on the Gap scanner this morning gapping up with the pre market high of 750. as you can see right here. so I said Okay guys, this is interesting because you can see here that it's a it's a reverse split.

You can see that right on the East signal chart. This is a reverse split and we know that stocks that have just had reverse splits sometimes make really big moves. We've seen it on KBS F We we saw it a few weeks ago on I think I N and T and T en X and a few others. It's kind of a setup in a way.

the recent reverse split and then the squeeze. a lot of times recent reverse splits. We'll also have some news out that sort of get traders excited and so I was watching this pretty closely over 750. However, when the bell rang the it opened a little on the low side.

it opened actually at 696 and I thought well you know I'm not really sure this is gonna do a lot I'm interested but but I can't really tell. So let's see. let me show you my account here. So this is my Lightspeed account.

Four thousand ninety one dollars sorry four thousand nine hundred forty-one dollars and then I've got my IRA account right here. 1430 dollars. All right. So combined 6378 dollars on the day, which is pretty good.

So on this on this trade, I thoughtyou AVS being the reverse split a recent reverse split had some good potential and so I decided that I would take it in. my IRA I was a little cautious, but I thought, you know what? I think this thing will probably work so I jumped in this in my main account with an order at 7:53 right here. Now in fact, I only filled 1714 shares so I didn't get my entire order filled I only got a partial fill and that's the same thing that happened in my main account I put out in order to buy 2500 shares at 7:41 or well I think the order was 750 and executed at 741 but I only filled a thousand shares I then doubled at 797 $0.50 higher which is risky, but at that point I could tell that the stock was moving quickly I then added more at 850 and I sold at $9 and then I ended up adding more at 885. So I was adding on this pretty aggressively, as high as 885 and selling into the squeeze at 9:35 So let's look at this so right out of the gates it breaks the pre market high which is kind of what I was watching it and I started to see volume coming in at like 25 and I don't know 717, 719, 720, 725 and so I was like okay I'm seeing buying coming in I think it's probably gonna break the pre market high so I'm gonna jump in now it breaks the pre market high and then BOOM that's where it just start to really start to take off.

So it squeezes up here to a high of 977. Again, this is one of those stocks that just squeezed almost three points right out of the gates. The challenge is where do you find a good entry. Fortunately, this had a decent pre market chart where we were able to establish entry at the break of pre market highs.

so 750 was the entry point, the first entry and then adding as it squeezed up. So let's see so we'll go back here. So on my IRA it it's saying that I let's see so I sold right here at I guess I sold 400 shares at 761 or 771 760 I don't even remember pressing the button I was I I don't know I I pressed it by accident or I'm not sure what happened but I ended up selling the whole position at at 8:35 and 825 so definitely a little bit more conservative in that account taking profit a little bit faster. So with 1700 shares the win was $1400 which is I don't know what is that like 70 cents per share or something like that.

You know a pretty decent trade I guess yeah, average is something like that. 70 80 cents per share. Alright so the reason I wanted to take this in the IRA is because I know that the recent reverse split stocks can move quickly and sometimes do give us the home run and the way it's I Had both of them lined up my main account of my IRA and just the look of it the way it was already starting a little bit pre market it just to me looked kind of like that KBS F setup or that I amenties setup and so it's just a matter of seeing the volume and then I also thought well look I'm only taking 2,000 shares so if it goes the wrong way, I'll stop out with a $400 loss. Maybe I'll lose 20 cents.

mm-hm I mean maybe I could lose a little bit more than that, but I'll probably keep the loss pretty tight. so I'll just get in if it breaks over 750. I Think this could very quickly retest the highs up here which is like 1250. That's what I was looking at on the daily that we had room up to 1095 and then 1250 and it was on the Gap scanner so it wasn't like an arbitrary stock that no one was seeing.

It was right on the scans so that kind of made me feel a little bit more confident about it. And again, yeah, there was a little bit more risk on this, but mitigated by smaller size. and I can't take 10,000 shares of this price anyways. right now, but I was trading a little bit more conservatively just because of the price and the size.

So with my main account, I'm basically adding into the squeeze because I'm thinking we've had stocks like this CH FS remember that one CHF s where I got into a stock and it was like seven dollars and it squeezed all the way up to fourteen Fifteen dollars through circuit breaker halts. That ended up being a $33,000 winner. I mean it was massive. It was the biggest win last year and it was on this recent type of reverse split setup.

so that's kind of where I think I was like the potential is that this could be a home run. The downside risk may be 50 cents at most dad back down to $7 the love of this candle but with the volume that was coming in, the buyers that I saw it kind of made me think that it was gonna open up a little bit. So anyways, it starts to squeeze up a little bit. I jump in I add 797 I add again at 850 I Sold.

start to sell but again see even at 850 was a partial fill only 600 shares I was having a hard time getting filled for whatever reason it was just moving so quickly I then sold some at $9 it dips down for a second and then I thought, well you know what I'm gonna add over nine I add but I only fill a hundred shares. So actually almost every single one of my orders except for this one were partial fills and then I was able to sell full position or full the full size of that order at 9:34 and then selling more at 9:10 899 and then stopping out the rest at 8:25 So as you can see, this didn't hold up very well because right here on this one-minute micro pullback, it failed and this is the same thing that we saw with CW LT So you have to be aware of these 1-minute micro pull backs that fail. Let's see, let's look at CL WT right? So the stock is consolidating, consolidating, and then that's the moment of truth. We don't want to see it break below below that previous candle.

So what we usually like to see is a little bit of consolidation in this type of range from eight. What is this, 850 between 850 and the high here of 947 consolidation consolidation and then I would be adding over 950 for the first one minute pullback and to move back up. That's what I was looking for I had my order for 1,500 shares ready to go, ready to add at 950 and I thought then it would break. hit 977 $10 1050 up towards 1095 on the daily chart.

So that was the moment of truth. and when that failed I stopped out and it dropped quickly which is exactly what happened with CL WT So if you learn to anticipate those moves, you can get out sooner. So I sold it 825 Pretty much as soon as it broke that level of 850, I sold and had 25 cents of slippage. Whatever, not that big of a deal.

it dropped down to 714. So I'm glad that I stopped out as quickly as I did. For a beginner trader, this is I mean we talked about these in the class all the time. we we show Dunn's of examples of false breakouts because you have to be prepared for them.

They will happen and you want to make sure you're selling. you're the first one to the door, not the last one to the door. So that means you know if this breaks below 390, that's not good, right? That's the spot to get out of the way. So you know both of these stocks were kind of interesting today.

CL WT I missed a couple of opportunities on it, both long and short being 5 cent tick. I wasn't super confident on it, but it did well on you AVS on the recent reverse split setup. so you know Green is good 6378 dollars and 64 cents and so let's see that puts me up right now. I guess around 5500 on the week because I had that red day on Monday I was down 3100 on Monday yesterday I made back 2300, you know? so still red I'm still will green on the week, but still red also because Friday I lost 11,000 So including the 11,000 on Friday I'm still down about 5500 from my all-time highs on the year.

Having said that, I'm sitting right now at let's see about 42,000 dollars of profit on the month, which is not bad. $42,000 for the month of March is good. We've got one day left, that's tomorrow. We'll finish up the month, have the day off on Friday and we'll start April Hopefully feeling good and continuing to carry this momentum.

All right. So that's about it for me. and I hope you guys have a great afternoon. I'm gonna head over and sit down with our inner circle students.

We're gonna have our mentor sessions this afternoon and we'll be yeah doing our thing. So anyways, I hope you guys have a great afternoon and I'll see you first thing tomorrow morning. All right, see you guys in the morning! Oh hey, I didn't see you there while I was just working on the dream board for my next home run trade. Hopefully it comes soon.

Until then, make sure you subscribe to get email alerts anytime I Go live or upload new videos. Until then! happy surfing!.