Sometimes you have one of those days where it just feels like you're bowling strikes. I mean literally, bowling strikes. What's up, guys? All right. So time for a midday market recap.

We're gonna go over the trades from today and I'm going to talk about through the questions that folks have been asking me on Facebook and YouTube in the comments. But first, let's look at the big picture stats. Big picture is that I'm finishing the day up eight thousand, four hundred and twenty nine dollars I traded for stocks and I'm green on three out of four now. I Also made eight thousand dollars yesterday, which means I'm up sixteen thousand dollars on the week and I'm up over fifty thousand dollars on the month and I'm now approaching sixty three thousand dollars in my small account.

This is the account that I started on January 1st with five hundred and eighty Three dollars. So obviously this is the small account challenge. It's going really well. It's now one hundred thousand dollar challenge and my goal is to get to a hundred grand.

You know, essentially as quickly as I can because I've kind of got that. You know that finish line and I just want to get there. but AB sixty-two percent of the way there. Whatever it is right now, it'll probably take me.

you know, I'd say at least through you know the middle of March you mean I'm $40,000 away. So on the one hand, that's you know, four, five more days like today. But if I have one day a week like as good as today, there's a probably another month. So I'm going to say hopefully buy by the end of March I'll hit the hundred thousand dollar mark at the latest and if I can get there a little sooner then that would be nice as well.

Of course, as soon as I get there, the only thing that's going to happen is I'm going to say well now it's the two hundred thousand dollar challenge you know I'm just I'm just going to continue growing this account. I'm not going to really do anything different, but it'll just be nice to get to that first. you know Big Milestone. Well I suppose the first mile stone was 25,000 because that meant I could open my speed trader account and close the shirt trailer account.

But the second milestone is is going to be a hundred thousand. So one of the questions that I had from a lot of traders is how do I cope with the fact that you know I'm having these huge swings of my PML in Thursday and Friday last week I lost $9,000 yesterday, made back eight thousand today I'm up eight thousand. But even on these days where I make money, you know here's a trade where I lost today twenty six hundred dollars. So some really big swings in the P&L and how am I handling that emotionally well? What I've really worked towards doing is desensitizing myself to experience to having a problem or a negative reaction when I experienced loss and I've I've had some big losses so far this year, you know I lost nine thousand between Thursday and Friday last week I lost thirteen thousand dollars two weeks ago today, but I'm basically practicing experiencing loss and not having an issue with it.

The more it happens, the more you realize it's no big deal. So yeah, I lost 13 grand two weeks ago and it was disappointing. and since then I made about thirty five thousand dollars between the day that day I lost 13 and Wednesday of last week I made $36,000 and then I lost nine thousand. Okay, so little step back.

and now since that nine thousand dollar loss I'm up sixteen thousand between yesterday and today and I'd say the goal would be probably to make another ten or twenty thousand before my next big red day if possible. I mean obviously as I say that I'm going to knock on wood and hope that I don't have a big red day you know, tomorrow or this week, but to have big hot streaks in between the red days is obviously the goal. However, I have noticed that right after a Big Green Day I sometimes have a big red day because I can get a little maybe complacent or a little overconfident if you have a really big green trade and you think wow, everything I trade is working I can take ten thousand shares of the fifteen thousand of that. Next thing you know, you know you lose 40 cents with 15,000 shares and you just took a huge loss.

So does. That's something definitely to be mindful of. But having said that, the second thing that's going on here with these with these big trades is that I've essentially added you know, a decimal point to all of my gains last year. At this time, I might have only been up 824 dollars, you know, down 267 on this trade, up 760 on this one, up 250 on this one, and 130 on this one, you know, but this year we've got another decimal point.

So the reason is because I've scaled up my position sizes. So for those of you who have been, you know, watching me trade for a while, you know that last June was the best month of 2016. I made $34,000 and at the beginning of June I created a set of rules. And those set of rules were based on the fact that May was one of my worst months of the year and I wanted to do things differently I wanted to really turn the corner and improve my trading.

So I created two rules. The first rule is that I would only trade a quality set ups which is you know, easier said than done. And then rule number two was that on any trade I took I would take two times my average share size. So instead of buying 2,500 shares, I would be buying 5,000 shares at a minimum.

And the thing is, when I was buying 5,000 shares I started to feel a little bit more nervous because I knew if the trade didn't go the right way, the loss would inevitably be bigger. You know I'd be looking at losses in the range of 700 a thousand or maybe even $1,500 on a regular basis. So because the losses were bigger because the risk was higher, I became even more selective and as a result I really only traded a quality set ups because anything less than a quality would make me too nervous. Alright, so now I've basically done that same thing here in January you know, and we'll obviously we're in February now, but starting in January for 2017 I said okay, you're going to do the small account challenge and you're going to put the pedal to the metal.

You're going to be aggressive, you're going to use your margin, and you're going to try to grow this account as quickly as you can. First milestones: 25,000 second one's a hundred grand and I was prepared that it may take me a year. But I think even when I said that I was being kind of overly conservative because I news it as soon as I got above twenty five thousand, I would just basically be able to go back to the way I was trading in 2016, making twenty thirty thousand a month. So once I hit the 25 thousand spot, it would probably only be another three months before I hit a hundred grand.

The question was how long would it take me to hit twenty five thousand? And as it turns out, I was able to do that very very quickly. I was able to do that by February 1st and I think that was on. Let's see, it was 5, 10, 15, 20, 25 I think I'm day 26 or day 27 it was day 27 that I that I had 25,000 and here we are today on day 30 and I'm at 62,000 it's under 63,000 So you can see that as soon as I broke over that level, the gains started to become exponential because my buying power was higher and I was able to really start to be more aggressive. So last year at the end of the year I reviewed all of my trading statistics and I recognized that I had a really good year, made two hundred, twenty two thousand dollars, and my average profit loss ratio is about one point five to one.

Meaning on winners I would make 150 and on a loser on average I would lose a hundred. that wasn't the actual dollar amount, but just for the sake of easy and easy numbers that that was my average profit loss ratio and my accuracy was right around 65 or maybe 66 percent success. So I had to ask myself. You know once I you know kind of made some progress in this small account challenge.

What would be what would I have to do to increase my profits for 2017? You know what if I want to have a goal of instead of two hundred, twenty thousand, three hundred thousand, or 350, or 400 thousand, or even five hundred thousand dollars. And looking at my metrics, the answer was that I would have to increase my share size I would have to be more aggressive on my trades. Well, number one, either be more aggressive on my trades or simply trade more. But I have found that I trade the very best between 9:30 and 11:30 So although I could start trading in the afternoons, I didn't feel that that was necessarily going to be the solution.

I felt the solution would be trading with larger size, being more aggressive, and also moving in the direction of longer hold times where when I see a stock that has a really good set up on the 5-minute chart I get in. Maybe I take 10,000 shares instead of 5,000 but I get in I hold my position and maybe this year I'll actually be holding for like a 1-point or even a 2-point move on one of these parabolic stocks. And with 10,000 shares, it's going to be you know, a 1520 thousand dollar winner. So by employing that strategy, I've been able to have some of my best days ever.

Last week, actually not last week. The week before I had a $22,000 winning day. So you know that was absolutely incredible. and it was 100% the result of taking large share size.

But you know then having a day where I lose 5,000 or 10,000 is also the results that big share size. So for comparison, last year at this time I was trading with around 1,500 shares on average. So obviously some of my trades were you know, bigger share size. Some of them were smaller, but the average was about 1,500 shares.

So now let's compare that with so far in January my average share size in January Six thousand shares. So obviously that's the average. Some positions are only a thousand, others are 15 or 20,000 I don't think I've taken a position larger than 20,000 I don't see one here. There might be one, but for the most part that's been my cap.

That's kind of my share size limit of 20,000 shares. So with you know, by increasing my position size times four am I seeing four times as much profit. So let's just look in: January of last year I made $10,000 and January of this year I made $40,000 and in February last year I made only $5,000 and February of this year I'm up right now fifty-three thousand dollars. So this tells me that yes, I am making more money because of scaling because of taking larger positions.

Maybe the market is a little bit better this January and February than it was last year? That's certainly a possibility as well, But you know the end result is that being more aggressive at least so far in the first six weeks of the year, has produced bigger wins. You know what? This all comes back to your metrics. So if you have positive metrics meaning you've got a good profit loss ratio where you make more on your winners than you lose, and you have a good percentage of success, your accuracy is good, then you will be a profitable trader. So it's your choice Now, whether you want to implement those metrics on a strategy where you take a hundred shares per trade, or where you take a thousand shares per trade where you take 10,000 shares per trade, or whether you take a hundred thousand shares per trade, right? If the metrics are sound, then the number of shares you take is just going to give you.

Basically the calculation for how much money you make. The metrics will be the same regardless of your position size. Now, the actual reality is that this strategy, although it's scalable from you know 1,500 shares on average to 6,000 shares on average I'm not sure that it's scalable to you know, 12,000 shares on average or you know 20,000 or 60,000 I mean that there will be a point where I simply cannot buy. You know a hundred thousand shares of these stocks.

If my goal was to buy a hundred thousand shares of every trade I was going to take, I would have to even further tighten my quality filter and I would have to increase my volume and liquidity filter to only trade stocks that had probably in excess of ten million shares. The volume on that day it may even be more, but you know a trade today. For instance, VA is this has 23 million shares of volume and if I had wanted to take a hundred thousand shares, I would probably have to get in ten thousand shares at the time pressing the order ten times. Most likely that would have been the safest way to get in and I would have had to.

you know, spread out those orders over the course of you know, 15 minutes or something like that. So that would be buying accumulating during consolidation. So a period on the chart you know, like this where we're seeing consolidation is a period where traders would be pockets would be thinking about accumulating and buying. and then when you get that breakout, this is the area where they would start putting out orders to sell.

Ten thousand here. Ten here, ten here, ten here to here and scale out slowly because again, you can't get in all at once. You probably can't get out all at once. So yes, if you wanted to take that level of you know those types of position sizes, you would have to make some adjustments to your strategy.

And I've even had to make some adjustments to my strategy because taking 20,000 shares is not the same as taking 2,000 even with 20,000 shares. I get in in increments of you know, usually 5,000 shares or 2500. So I buy a little here I buy a little there a little there. until I built up this core position because just pressing the buy button for 20,000 shares.

there's not always a seller that can match that order so you can't always get filled. you know, at the price that you want so you kind of have to do that process of accumulating. and maybe that's good training for taking larger size down the road. But the other side of that is that if you're taking a hundred thousand share positions, your risk is substantial, right? If this trade goes against you and you lose a point, you're going to lose a hundred grand.

And my biggest loss so far this year is seventy five cents per share. So with a hundred thousand shares, that would've been seventy five thousand dollar loss, right? that would be pretty crazy now. I Think on that trade I had ten thousand shares in lost seventy five hundred which was bad enough. So this is just to say that you know I may be in a comfort zone right now where I have desensitized myself so losing five thousand or even ten thousand is not a big deal.

but I'm definitely not in the place where I could lose twenty or thirty or forty thousand and not be really upset about it. So this is, you know, kind of the emotional development that every trader has to go through. When I was a, you know, a little bit of a newer trader, losing 700 or losing a thousand was devastating. and making a thousand or 2,000 was incredible.

So at this point, losing seven hundred is nothing. losing a thousand is nothing, and making two thousand it doesn't do anything for me. I Don't get stressed out I don't It's just part of the regular day of being a trader and I'm sure there are traders out there I Know there are for a fact that can lose 10,000 or 20,000 or even fifty thousand dollars in a day and it's not a big deal and on a good day they'll make six figures. There are traders that are at that level and that's not me right now.

But I Feel good about where I am today and that's the important thing. I Think that everybody is able to to say that you feel good about where you are today and maybe you have a goal that in six months I want to be a little further along in my development and that's okay. so what? You know? what's what you have to do to get from A to B You know? you have to be more comfortable with experiencing loss. You have to test your boundaries a little bit more, test the outside of your comfort zone and you know you will have some days where you're kind of feeling a little bit bummed out.

You have a big loss and then you realize the next day when you make it all back that you know what. It's actually not that big of a deal. happens a couple times and now suddenly you've conditioned yourself to be ok with with that loss. Whatever, it might have been.

Ok. So that was kind of a long intro to our midday market. recap. Now to go over the trades that I took today.

Obviously it all starts with the Gap scanner and the Gap scanner today wasn't giving me a lot of really good looking setup. So I'll go back on this to historical date: I'll do 9 a.m. this morning and you'll see exactly what I saw this morning. So we had a CY NO higher price stock 65.

We had our log. this is a cheap stock of the dollar 25 Now we had Cbio at 11:55 and this one I actually had on close watch because it's a recent reverse split. So recent reverse split. and what we saw was some of these other recent reverse splits have been some parabolic moves.

That's obviously not what happened on this one. This one opened at 11:50 and it promptly dropped. You know, 40 percent? I mean just really brutal. But then yesterday or the day before we saw this KB SS Also a recent reverse split and it gapped up the next day and went all the way to a high of 18 dollars.

So I'm not sure what the rhyme or reason is why this one works so well. Both of them have now faded and so certainly good for shorts. But this would show you that if you're too early on your short position, you get squeezed 4, 5, 6, or even 8 points as these sometimes are incredibly strong. So when these stocks do reverse splits, you know if it's let's say it's 10 to 1 reverse split.

The stock was trading at 30 cents a share. so if you have a thousand shares, they're now going to give you a hundred shares and the stock will be trading at three dollars. So they convert all the shares. It's a reverse split and the stock price goes up.

This is usually to maintain compliance with the exchange where they have to keep their stock price above $1 but what often happens is that we get the reverse split. The stock is now priced at 3 dollars or seven dollars or whatever it is and traders start to sort of jump on it. They see this new stock that's now suddenly in our wheelhouse of being affordable starts to squeeze up. and you know? I'm not sure.

Um, it. seems that these stocks can make these really big moves right after a reverse split, and that there's almost like sometimes no resistance that they just start really squeezing. They move up. you know, four hundred, five hundred, six hundred percent.

and then suddenly we have a you know, secondary offering that comes out that's priced. You know, somewhere in the middle of that big move, you know, six dollars or something like that. And we've seen this several times on stocks that do reverse splits. So you know I don't know if there's someone that has really deep pockets that is kind of propping up the stock in anticipation that this will get a reverse split? they'll get a squeeze, then will be a secondary offering, you know? I don't really know how it all works, but it's the pattern that we've noticed and so it's something that I'm definitely keeping my eye on when I see a stock that's had a reverse split.

I'm thinking about the potential that this could could get a squeeze, but obviously Cbio. It didn't happen today so that was on the list, but no trades on it. Next one down, Sino this was on the list. but the issue with this one.

You know it was consolidating pre market but I said I said guys. look I have a feeling the Bell is going to ring. it's going to pop up to the half dollar and I think it might break over the half dollar of 550 which would typically be my entry. but I think it's going to be a fake out because this look it already had all overnight to break out and it didn't and traders were watching it.

So I think it's probably going to pop up and then it's going to roll over Hard market opens and does exactly that. I didn't have shares that can short it so I was just watching from the sidelines. so no trades on that, no follow-through but as a result all of the sympathy stocks in the same sector, the shipping sector they all faded as well. So we had DCI X no trades on this when we had GL BS no trades on this one.

There are a couple others no trades on them as well. Alright so sino off the watchlist. Then we had Re Lv R E Lv I said is one that I like because it's consolidating under seven and yesterday it had a pretty big day. from 450 up to 583 consolidating under seven.

it looks good to me to get in over seven. The bell rings and I've got my order ready to buy this thing at 685 thousand shares. I press into 680 as it's popping up through seven and guess what? The order was rejected. It was rejected and said the security was not tradable.

I called speech Raider and I said what's up It says it's not tradable can you guys check it He checked it he said yup, sorry, that's an error I fixed it you guys it's going to be I've got to update the system but it'll be tradable in just a moment and that this what happened. But of course in this candle it pops up to 791. So imagine that 5,000 shares start a position from 680. Maybe I would have doubled it 7 It had 10,000 shares.

that could have been a five six $7000 winner right in the first minute. but I missed it and this is. This also goes to show that these setups will run with or without me. Whether if I'm not part of it, it's going to go.

You know if I'm away for the day or I'm just not trading for the day, these will still break out without me, they'll just continue to run and I'll miss the opportunity. This is an opportunity. So we get the pullback here. little pullback and let's see: I'll show you where where I finally decide to get in so we get the high we get to move up to a high of 850 Now as soon as he turned as soon as the guys that speed trader got this turned on I was looking to jump in I got in at let's see right here for the break of the half dollar 750, 741, 750 and then I added at $7.99 and $8.00 we spiked up to a high of let's see 831, pulled back for a moment, and popped up to a high of 850.

Now, unfortunately, despite the fact that it went up as high as 850, I wasn't able to salad 850 I sold at 811 and 803 and 793 I was looking for a big remove and obviously if I had gotten a good entry at 680 I would have been. you know I would have done a lot better. but I got in a little high, took the profit as it came back down. Wanted a bigger win.

But in any case, I've got it. You know, decent trade on the name with what was a twenty five hundred bucks. So twenty five hundred bucks. Not bad.

Again, let's emesis. You know, twenty five hundred bucks at this point is almost like two hundred fifty. Like it's a good trade. It's good, it's not great.

It could have been better, especially for you know the fact that this move from a low of 661 to a high of 850. We ended up consolidating here and popping up through 883 and then we rolled over up here on this red candle. So you know a couple good opportunities here, you know I Wish that it had been a little cleaner and it was able to hold those levels as you can see here on the daily chart. it ended up rolling over right now today is looking like a doji candle so it wasn't able to really hold those levels.

A little annoying There next trades the A is I guided to this one and 12,500 shares I jumped right in at three. Let's see it was three Forty Three Forty five. looking for the break of the half dollar and interestingly you know this pops up to a high of 370 and then pulled all the way back down to three Thirty one. It was not the cleanest right away and although I made money on it $1300 it just didn't feel super safe.

And then next thing you know it pops right up and goes back to Hides and then all the way up to 444. The interesting thing on this is that during this consolidation I was looking for a little bit of a bigger pullback. I was hoping to see two red candles but we only had one red candle. Two red candles would have been a little bit of a better pullback and I think a little bit of a safer entry, but we didn't get it.

Now up here we start to get consolidation and I'm looking for a pullback entry but we get it and we drop down to the nine moving. Average consolidate drop down to the 20 consolidate and then in this period we started to ramp back up. Once we got above the nine, right here we pull back consolidate and then this is where the volume came in as we squeezed up from 375 up to you know, five dollars I mean that's a big window. A dollar twenty-five this is would have easily been able to take you know 25,000 shares through this move.

There were 700,000 shares of volume on that 5-minute candle. so you could have taken 25,000 shares and potentially made $25,000 maybe more. I Missed this trade that we were coming into the lunch hour and I really didn't expect it to bounce off the 20 moving average so nicely. I'm was impressed.

You know this one will actually be one to watch tomorrow for continuation because if this closes around this level, there's a good chance that we'll gap up overnight and we'll end up opening around 480 490. And if we break yesterday's high, well, today's high, we break today's high. Tomorrow we could have second day follow through continuation up to you know, 657 dollars. So it's back in my mind potential so well.

we'll definitely keep this one watch tomorrow. I'm not sure if it'll if it'll follow through or not. All right. So then let's see the next one.

AHP I This one's on the hide a scanner. it starts to spike up I Jump into this one ten thousand shares. I Get in. Now This was actually very annoying I Bought a thousand shares at 250 I Wanted ten thousand I only filled a thousand and this is one of those times where I said you know what, This thing is so strong we're in a strong market VA is was just running I think traders are probably going to jump on this.

This looks like the next stock to start opening. up. The daily chart looks good I jump in I figure I'll just chase it I don't know why. That seems like a logical decision.

Got in at 72, popped up to 280 and then it came all the way back down I stopped out in the 40s so I lost a solid $2,600 on this and you know you could ask. why did I hold it this long you know I held it through this pullback here. First candle to make a new Hyo's right here. We came back up to break-even and I was like okay, breakeven is good.

maybe this will go back to high a day and then in this candle it dropped all the way down to 48 and so that's a nice old I mean you know what can you do I mean it's just actually I think I sold on this candle but in any case I thought it would it would run. Looks like I had the potential, but traders just weren't interested in. for whatever reason it's not. Maybe a former runner Now the very popular stock doesn't have a cold following and that was probably the issue.

So after that trade, I was up only like $900 on the day and then Apop started popping up. This is a former runner, very much like my OS I'll pull up the my OS chart real quick. A former runner stock with a history of making big moves. you can see here this my OS So as this started, Apop started to pop up.

I said this is one that I need to get into as quickly as possible because it has a history of making big moves, right? It's got a history of making big moves. It has a great daily chart. The nearest resistance is 677 and if we can break over that level, we've got room to 878. So I said this is it I'm going to jump in I jumped in even though it was already up from a low of 530.

Me getting in with a 586 average was pretty high for sure. but at the same time back of my mind potential was that this doesn't have resistance until 677. It ends up getting halted at 602. spikes up.

it gets halted. it resumes higher. It opens at 619. I added another 2500 shares.

it spikes up to a high of 675 and that was the moment of truth. Will this be able to break that level over 675 into seven? And now he's got room to 878 now. Unfortunately, it couldn't do it. it ended up pulling back.

But you know, even right now we're still up at six Thirty four. Even if I was still holding my current position from 586 I would still be in the proud because this is a daily breakout. This is the first Campbell to make a new high after this consolidation resistance. With 677 above that level, it's got room to 878.

There's a good chance that this will open tomorrow again like Za is if this opens around 640 650. I'll be watching it tomorrow for a break of today's high, a break over 677 and the next logical resistance point is 8 78. So you know whether that happens tomorrow or you know it doesn't happen for a couple weeks, maybe we consolidate, we pull back again. Either way, this 677 spot will be something to definitely keep an eye on.

And in any case, this went from my 586 average all the way up to 675. We pull back, we make move, made a second attempt up to 666 and then we came back down and on this candle. I Stopped out of my final position, but with those trades, there took two trades on the name seven thousand, Six hundred and Nine dollars. So a great opportunity.

A stock that's a former runner has a cult following. Traders note that this is one that can move and when I saw it starting to spike up, my thought process was I don't want to miss this opportunity and I think that's what a lot of traders are thinking when they see these stock spiking up like Apop like gee lbs like my OS last year or in the last few years, we've had other stocks that have had that similar type of cult following like DG ly or a lake or what's another one Hm NY Led s You know there's been a handful of those stocks that anytime they hit the scanner they seem to get these exaggerated moves. Traders just jump on it. Well, why do they do that? It's because you know the last time that stock made a big move or the last time that stock hit the scanners it made a big move and if it, you know it's going to happen again today.

I Don't want to miss it I'm going to get in. I'm going to try to capitalize on it. last time it made a big move. Well, today I'm going to get in and I'm going to take a bigger position to make more money on it.

You multiply that across. You know all of the day traders out there and that's you start to see these really exaggerated moves on some of these stocks. So anyway, some good opportunities there, and in total, five trades today and four. Let's see five trades.

and actually today, only three winners, Three winners, and four losers. So accuracy, you know, not as good as as I'd like it to be. Accuracy is still a little on the low side this week, but the profit loss ratio is decent, the share size has been pretty big, and that's allowed me to generate some good games. So here we are: Tuesday up 16,000 on the week.

That positions me really well for Wednesday, Thursday and Friday. Hopefully we can finish this week strong and you know make another dent towards the hundred thousand dollar milestone. Alright guys, so any questions feel free to put them down in the comments on Facebook and YouTube and I'll see you guys all first thing tomorrow morning. All right! Thanks guys! Let's be honest, if you made it this far, you must have really enjoyed that video.

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