Hey everyone, good morning. All right. So uh, we're gonna go over Gct. This is a stock that ipo'd two days ago on Thursday and uh, it ended up yesterday having a low of about 1761 and a high of 60 dollars a share which is like 300 percent.

but uh, from the open it was gapping up about 68 and it closed the day at 205 gain. Um, it was a wild stock and it was not easy to trade and so usually when I have a stock like this where I I don't trade it as well as I would have liked to have. I sit down either later that same day or maybe the next day like I am here today and I go over this the chart and and just try to dial in what I did right on it, uh, what I did wrong on it and what I would maybe do, uh, differently or what I could have done differently to have traded it better. So the idea of this episode is we're going to replay the price action from yesterday.

sort of going back on the early side and kind of re-evaluate uh, entries and exits and what would have been good places to get in and which of those trades would have been winners and which of them would have been losers. Uh, someone mentioned, uh, yesterday on my recap that you know someone was like Ross I can't believe you didn't crush this stock and someone replied, you know he's a breakout trader and this isn't the type that technical breakout traders do well on the traders who do well on. this are going to be the ones that buy and hold. Just set it and forget it because you end up getting these really big moves.

But the breakouts are choppy and there's a lot of truth to that. This is the same issue with stocks like Gamestop, you know, Bed Bath and Beyond. Some of these stocks that end up making really big moves or some of the ones that are meme stocks are not really clean for day trading, especially if you're a breakout trader. But if you're a buy and hold trader, well when you get you know a two, three, four hundred percent move.

Obviously you get rewarded for that. So you know, Yesterday was, um, the worst day that I've had in, uh, a couple of months of trading. I finished up, uh, only 1064. um, making it my 20 6 consecutive green day.

But it was the worst day that I've had in quite a while. If we look at the P L, you could see that I went green and then in one trade flipped from green to deep red 6 000 and then I had to dig my way out of the hole. And you know I was kind of thinking about this. uh last night as I was digging my way out of the hole.

how uh I kind of, um you know I. I sort of. It was like a really I was thinking of like this being like a really rough flight. This was some serious turbulence here and I was able to land it smoothly but only just barely.

So I did have a smooth landing. I finished in the green but this was a rocky day. Uh, so you know I was not and the one that I flipped um and went red on was in fact um, Gct. So I'm one of the guys that's going to be read on this stock that's up that much.

Um, this has been my best month of the year right here. So here in August. So uh, I think that you know being consistent right now is um is definitely paying off. But yesterday just didn't happen to be a good day for me.

It was a pretty difficult day so I want to dive into Gct and try to figure out what could I have done better. So I think one thing that's helpful on this. Oh and by the way, since I was just showing you my my P L, I'll just remind you guys as always that my results are not typical and that trading is in fact risky and most beginner traders lose money. So I don't want you to assume when you see my success that you'll be able to do something similar.

but I do hope that you see that and you recognize that this is real money. I do. I always keep my audit statement right here next to my desk. Um, so this is an audit of my broker statements right here from 2017 through 2021, averaging 159 000 a month, 9.5 million in uh, net profit at the end of December 2021.

I'm now over 10 million in that profit, so I share that with you. Not because I want you to think that my results are typical that you'll do something similar, but because I want you to know the person that you're learning from is qualified to talk on this topic because there's a lot of people out there that talk a big game. but they don't even make money trading. They're just armchair quarterbacks, right? So you know, who would you rather learn from someone who's just the armchair quarterback or someone who's actually got some skin in the game? You can decide.

Okay, so uh, all right, so gct All right. So this is a Chinese ipo. Uh, and to sort of give you some context, earlier this month we had a uh, Chinese ipo Hkd and this did something I. I mean, I've I've never seen something like this before.

This ipo'd and ended up going all the way to a high of 2555. And 30 cents over the course of like four days. I mean, this was this was really insane. I've I've never seen that big of a move.

So naturally when Meg L. ipod also a Chinese ipo, uh, traders were pretty excited. It did get hyped up and it squeezed up to 250 a share. but then it got wrecked.

It came all the way back down to 10 bucks. Eight bucks. you got a nice bounce here from eight back up to 25.. that was like a 300 bounce off the low.

So we did catch that bounce. and in fact on the bounce day that was the highest volume day. But uh, so then when we had Gct coming up for an ipo being that it was Chinese and given what we've had on these last two, I I knew it was worth watching. But uh, yes or on Thursday when it actually ipo'd and they sold about 2.4 million shares at about 12 a share.

So that was the ipo price. but when it opened for trading, it opened at 1920.. So it opened up. you know, like not quite 50, but like 30 30 off the ipo price.

which is, um actually I mean that's much lower than Meg L and Hkd, but it is still higher. But on Thursday, uh, it just sold off. I mean it popped up and then it just started to go and then just sold off hard. and you ended up getting this sort of wedge formation here.

but this is below volume weighted average price. The orange dotted line here. This is a risky place to be a buyer, but it did end up going from 14 to 18.. then a big red candle, it drops back down.

it pops back up, it pulls back, and so it closed the day. Uh, red versus the open price of the ipo. but not at the low right. So a little bit of a bottoming tail candle and then pre-mark after hours.

it climbs a little bit higher. This is after hours on Thursday, and so it closes after hours. Uh, let's see. so we're gonna go to the end of after hours, which was right here.

Oops, Sorry. so this was the last candle and after hours right there, so you know it did close. Uh, coming back up, right? So we would generally mark out the high 21 22. Okay, and maybe we would mark out this area here because this looks like a double top around 1945 there, right? So now let's get on to the one minute chart because really, as an active day trader, we're focusing on the one minute.

Okay, so you guys probably know that I I don't trade. uh, generally speaking at 4 A.m But pre-market does open at 4 A.m And when pre-market opened, it immediately squeezed through 19.45 cents and it squeezed up to a high of about 21.44 So if we looked at our level from the previous day, that was just just over the double top, right? The double top was, or, well, a perfect double top would have been 2122 the high of this candle. But it did come up just a little bit higher than that. All right.

So it broke a little higher. So we kind of have a double top right around this area. which is, uh, not too bad by the way. Uh, those tuning in? Uh, to this live.

Thank you guys for tuning in. I hope you hit the thumbs up. Really do appreciate it. You guys make, um, you know a huge difference helping this channel grow.

So thanks for that. All right? So uh, and we've got Macd uh, moving average convergence divergence indicator here on the bottom volume bars. Okay, so that's 4 Am. All right.

So then as you come up to 4, 30 and 5 a.m we pull back. We're coming back down towards the lows of the after hours session from the previous day. So kind of in here. The volume? Super super light, no doubt.

Um, so what levels are we watching? Well, we might still have the 1945 level from the previous day. That kind of double top area, right? That was sort of in here. We got above it for a second, but now we're you know, kind of back below it. sort of right at this level.

Um, let's see and let me make this a little bit bigger. So we this pops up here to 1990 and then it pulls back and then right here it comes back up again to 2050.. So you're seeing some strength here but the volume is is pretty light but you are seeing some strength This right here is a one minute micro pullback so I would say that's a possible entry for the break of 2050 with a stop. 50 cent stop around 20.

target would be a retest of 21.22 So you do end up getting that break and it breaks that level with some real some really nice volume. highest volume of the day. Hey Larissa good morning and then it pulls back a little bit. Now we're getting a second pullback.

New stop is the low of this candle here which is 2163 so you could take a starter on the pullback. or you could add around 2050. first one minute kill and make a new high. Our Macd is pulling away.

That's fine. There you go to move. And holy moly this really opens up to 23 to 24. it tops at 25.

Naturally you'd be taking profit into this move. Now you've got a topping a shooting star candle. So shooting star is a reversal indicator. So this is tricky because you've got a shooting star candle right here.

but it's holding up. So do you trust buying it over 25 when you have a doji up there? Maybe with small size, but realistically it's a pretty high risk trade. It comes up in a double tops at 25 it can't break it and then on the second attempt it does break it up to 26 dollar a share. This is a hanging man doji so he's got that little head right up there and then it blasts up here.

Volume is still pretty good. So to me this trade right here is a good one in 1950 and this trade right here is a good one. Um, and what I like about this these first two if we go back is this is light volume, so that's a little risky. But the second pullback, that's a pretty clean one.

You do have doji's but it's not a shooting star, it's It's not as bad and you've got a little bit of consolidation there and the stop is relatively tight. and then you get a nice move. Um, and then this one I feel is a bit risky because you've got the double top the two dojis. but then it does break.

That would probably have to be just a quick scalp in it. 25 out at like 25.50 and then maybe here. I don't know that You see. The thing now is you've got your first, your second pullback, now you're on your third.

This is the fourth pullback on the one minute chart, and now you're up in the fifth. So this one. um, at this point you're just too extended on the one minute and the five minute naturally is going to be quite extended. It's not safe to trade up here.

Probably Okay, so then we pull back here. Um, now it's 8 A.m Uh, approaching 8 A.m Uh, so that's 8 A.m Right there on that candle. We come down to the volume, weight, average price, and I recall that this is where I took my first trade. I bought this at about 23.

I think it was 2320. What was it? Yeah, it was maybe 23 30. it looked to me like there was a um, there was a hidden buyer so I saw this was reading the tape. so I saw a lot of sell orders going through.

but there was a buyer accumulating at 23.20 and it wasn't breaking. Even though it was only like 100 shares, it wasn't breaking. Now the Macd has crossed over here naturally because we're in a sharper pullback. so this is a risky place to take the first trade.

But I did jump in down here at about 23 30 and we did. As you can see pop up to about 24 16 so made a little bit on it. uh hit a high of 24.20 and then I was like okay, this isn't bouncing enough made. I made 500 on that trade but it really didn't bounce enough.

Macd was crossed over. it was below its 20 moving average it was at the view app. it should have bounced to 10 pounds. So small winner it pulls back more.

Uh then it starts to uh, sort of base out here. Now this yellow line 2122 I have that on my chart. remember because that was the high of the previous day and it was sort of a double top from pre-market So I did see a couple traders who said I'm buying this off of 2122. and I thought yeah, that's a it's a good trade.

It makes sense, but it is an entry below V Wap. This thing is really come almost all the way back down. I don't know if that's going to work, but it did end up working. It did.

And once it got back above the V-wap here. Now we're watching this area for a re-test of V-app We got the retest right there and now we're starting to watch First one minute candle to make a new high over about 24.. So first one minute candle to make a new high. Not very impressive there.

They made a new high but only by like 12 cents and I took that trade but it didn't break through the high up here of 24.74 That's kind of weird. It drops back down again here to 23.72 it pops back up again and this is this kind of price. Action is tricky because if it was really strong, it should have gone right here. The first one minute candle on the break back over the V wep, it should have gone right away.

I'm really surprised that it didn't right there. So this was a little choppy. so I churned some shares here getting in and then getting back out. and then it breaks this level here 2474 which was the high and I was like okay, I'm in, bought 2 000 shares and we squeeze up to 26.

micro pull back at 26, it goes 26.59 Okay, so I got green on that. I was up now 3 000 made 2 500 on that trade. Um, but then son of a gun it starts to pull back again. it's overview app.

It's holding the 20 but it's not going parabolic. So now I'm watching again and I'm thinking all right. Well, the level that that gave us the breakout here was when we finally broke 24.74 So now let's watch 26.59 if we break 2659 where we headed back to the pre-market high up here 2870. Okay, so our Macd is.

uh, it's a little confusing here because we had this nice, uh, mountain range that we pulled back way way down we went. Negative, we're climbing back up, but the moving averages aren't pulling away so we're not showing like a big mountain range here. We're just kind of sort of flat back down to volume, weight, average price. You could have taken another dip here, but this is just it's not really opening up in a big way.

Okay, now it pops back up to 26. so that's that's a nice bounce off V-wap It pulls back and now we're starting to kind of form. maybe like an Abcd pattern right here. So I would say this here is probably a spot where I would have been a buyer right there.

but look at that. it goes up 26 7. It's 26 38, but it can't break that 59 level. It pulls back again and then right there.

I got back in now and I lost on that trade. That was the trade that sent me into the red. I sized up there. um, because I thought breaking back over 25 50 was gonna send it back to 26 and it was kind of doing what it did here like a false start, false start and then it's going to go.

In hindsight, this trade didn't have confirmation. It was an anticip. I was anticipating a breakout and I did that with too large of a position. So a false breakout there bounces back up to 26, drops down.

again. this is not breaking 26.59 so at this point this is just really choppy. Okay, so here's the spot where I would add back: 26.59 It's a breakout trade. It's buying at the highs, but buying off of the dips off of support While that could work.

it's also been pulling back quite a bit, so add back for the break at 26.50 There we go. It squeezed up to 27. At the open, it double tops right up to 28.70 And I did take that trade. So I made back about half my loss on that trade.

And then look at this flush. it reverses off of a high of 28.93 It comes all the way down to 2550, down to 25.50 and then holy smokes it rips into a halt. Up and on this one. I didn't buy it off the V web, but I bought it as it broke 28 to anticipate the retest of the high of day.

So if we looked at this a little differently, where do we have support levels? So this is kind of interesting. If you drew this trend line here, you can see on that it actually broke this ascending support there. but then it got back above it. then it's below it, and then it gets back above it.

It's almost as if this line is irrelevant. It doesn't seem to be respecting it, so that line's not really valid. This line here, that seems maybe more valid, but it, you know you still broke it right here. Okay, so then we're into a halt.

It's halted for five minutes, it resumes. it dips for a moment, it breaks through 30 31 and goes up to 32.73 So for super aggressive traders, this could have worked for a quick scalp trade. Dip and rip on halt, resumption, dip and rip on hot. Resumption is, um, a strategy that I will trade and I did trade on that one.

So first halt resumption, second goes into second halt. Resumption goes into a third hall at 38. Resumes hits a high of 40 just about 419842. then halts down at 36.90 Resumes halts down a second time, halts down right there, so resumes pops up.

I bought the dip first one minute candle to make a new high. It doesn't hold, Stopped out with maybe 100 winner. It was basically a break even. Trade halts down on resumption.

It pops and halts up gaps, higher dips and rips up to 32 pulls back. This is a really tricky area to be trading because you have this huge move and then retracement of the whole move bounces back up. Huge range. I I don't see myself being able to trade that comfortably.

You've got little topping tails here. Then it breaks 34. it goes up to 35 and 36 into a halt. It opens a little higher, dips, then pops up.

This one minute candle has almost a five point range. That's a huge range. Just in a one minute candle pulls back to 34, rips back to 38 but notice topping, tail, topping tail. So these candles keep having these topping tails.

they're not holding so that's really tricky for breakout traders. You buy for a breakout and it just rejects. Then you halt up, it breaks away and I guess enough traders buy it and enough shorts cover that it does go into a halt at 41 at 40 71. it opens and squeezes up to 45.47 Huge Doji This has a eight point range in one candle, one minute massive, then consolidation.

This technically is a one minute pullback, but off of three doji's it breaks up to another hall level. See, that's a tricky one because I don't think I would have felt super comfortable buying right there. After three Dojis, it is a one minute pullback, but I don't think I would have been super comfortable there. I don't think I would have been super comfortable here.

This is risky. You know, this kind of entry with the two topping tails there? It's kind of similar to what we looked at back here at around 25, right? Those two topping tails and then it broke. Sometimes I'll call those like devil horns because it's like these two sort of topping tails and that can be a very risky place to be a buyer. Oops, Sorry.

So all right. So we gotta go back on this ways. All right. So it ends up halting up right then.

You could have done a dip and rip for the break of 50. Uh, volume here is pretty good. I don't know what the spreads were like at that time, but it goes up to a high of 58.37 then sells off hard back to 50. Dips to 48, pops, back up to 56.

dips again to 48, pops back up to 53 and then halts down. Opens lower rallies and halts up Opens higher Consolidation. Choppy halts down. Now, we have a pretty clear descending resistance line on this around here.

Maybe a bit more like that. It breaks over it. it retests it. This is a possible long here for the break of 48.

even though you've got two dojis here, you are retesting and getting above this descending resistance some people might have even bought here at 45. False breakout goes up to 49 and then is read back to 46. Retesting this yellow line selling off more. You see how this yellow line previous and now now we can kind of see how it's trading.

We can remove this one. This is the one that's more valid I would actually, um, grab a screenshot of this here just because this is a good example of um, descending support turning into or descending resistance turning into support. Let's see. Okay, I'm just gonna save that that for the classes.

Uh, thanks. By the way, for those that hit the thumbs up. really do appreciate it. You guys make a huge difference helping this channel grow.

Okay, so then it on the one minute through here through noon lunch to 1 P.m This is just. I mean, you've got range from 40 up to 46, but this is choppier. Your volume is much lighter than earlier in the day. spreads from no doubt bigger.

I would say an important pivot is probably around 49.50 This is good that it's basing out here off of this low of 40. Okay, so is there any way you could have predicted that break there? Not from not from this spot here? No, as it broke 46.50 you could have taken that trade for the retest of 48. It snaps through 50, hits 52, but then drops back to 44. any point drop so it's not holding.

the half dollar comes back up again. Now we're starting to get into ascending. Um, we've got this ascending line here kind of in this area, maybe something like that. And we can look at the high back up here around 52, the high here of 51..

if we could break 52, I would have expected more than that. That's only 53.35 And you know the way the spreads are on this that although it was up 80 cents, I don't know if you could have sold. And then look at this. So this is where we get what I call the pulling away.

So sometimes, um, I don't know. it's like you kind of have this teetering where it's kind of grinding higher, pulls back, but it just it's not dropping. and then all of a sudden it starts to pull away. It starts to move faster.

Maybe some shorts start covering some long, start saying okay here we go, it's game time and next thing you know it's starting to squeeze. So let's get back into this. So um, so your Macd you know is moving moving up. That's fine.

So it breaks 55 and then one candle goes to 60 on 222 000 shares of volume. So that could be short selling. Uh, covering short sales, Short sellers covering it could be longs jumping in. Pull back here all the way back down the bottom of that candle to 53.

So that's not a sustained move, you know? And that was only a one minute candle. It just that's it's. not a five minute kill, it's a one minute candle. It just wasn't up there for very long.

Then it comes back up to 60. Now you're double topping, but then drops back down to 54. man this is this thing is like it just teases like it. it looks like it's gonna go and then it just like doesn't.

I mean it's it has obviously moved higher but man. so then back down and then look at that flush into a halt down. so that's going into the clothes or close to it. Nice bounce I guess.

But back up here. But how how do you trust this? How do you trust this when it's just shown it doesn't like to hold halts down, Going into the close opens a little higher and then this is all late after hours. And that's where we closed. 46 After hours? 46.50 So you know, for breakout traders.

Yeah, obviously. for a trader that just presses the buy button and just holds it for, you know, half an hour, there were a lot of places where 30 minutes later you would have had profit. But for traders using leverage being aggressive trying to take this quick break out, um, that's where the struggle is is definitely going to be there. So some interesting price action on it.

If we look at um, Meg L for comparison, you know Meg L. was so light on volume on the initial move, it wasn't super easy. The dead cat bounce was actually the cleanest day Hkd. That one was super light volume so like you know, they kind of.

They were kind of both better for traders that did more of a yolo just to hold and you know let it go to the moon then actually try to like actively day trade it. So that was Megal Dnaa this one. Uh, you had a nice move here on this. So this was after hours yesterday.

so this is a business combination so it would have been a special acquisition company. Merged raised 163 million. So um, leading digital medicine company? I'm not familiar with them, but um, that obviously was received very well. floats probably a little higher.

We'll watch it on Monday, we'll see. So anyways, um yeah, I just kind of wanted to break down that Gct, the action on Gct and look at it in a little bit more detail. So you know as I look at it, I think there were a couple of spots where if I had traded it longer, I probably could have gotten a couple more quick scalp trades on it. But I'm not just a buy and hold set it and forget it trader.

so I. I don't know that I would have really crushed it on this. We had some short-lived moves, but they were between halt so it was really. I mean, if you really think about it, you probably through the course of the day like this is like going to be like, you know, one, two, three four five, six, seven, eight nine.

I mean you probably had 10 minutes or maybe a little bit more of some really clean action. And then in between all of that was a lot of choppiness and a lot of false. um, a lot of false breakouts. So um, I don't know.

I'm not really sure. um. Pgy, you traded that one on Friday? You even see that one? Um, hmm. yeah, I don't know.

Um, but yeah. interesting. So anyways, um yeah, I think there's a couple of trades that I could have. I think this trade you know that I lost on was bad timing.

um, but I didn't have confirmation on it so that there was a bit more risk on that particular entry. took too much size. Given we were in this kind of sideways chop, probably would have been better just to wait until we broke through this level. You know, sometimes when you step back and look at this like bigger picture, it can be a little easier to say that.

Um, which is you know perception is important and if you're viewing the charts, super super zoomed in. Uh, sometimes you know you sort of get this tunnel vision in a way where you're like, okay, this is what we're working with and you can lose a little sight of the big picture. you know I stopped out like right on support um which would have been clearer if I had kind of been zoomed out a little bit further. but in any case, um, yeah, that's that's gct for you.

So some interesting, some interesting action. um and I thought I would just go over it for those that maybe didn't I don't know. Didn't trade it as well as they would have liked to have yesterday me included and kind of come to some conclusion about how we could have done better. Um, it's tough because I mean yeah, you've got a couple nice breakouts there.

The breakthrough, the high that was okay, but then reversed comes back through the high rips pretty nicely. You know comes back up here through the high. You know each time it broke highs you got clean moves like a clean extension off of that level. that was a breakup high.

So like if we just looked at, let's just remove all the drawing tools. you know if you're a breakout trader. So initially you had a high of 21 22. right? we broke that high and you got a nice move right there.

Moves up to this new high here which was 28. Okay, so the area down in the chop was a little tricky. Uh, we did have a break over this resistance right here of 2659 that gave us a move up to 28 at the open, so that was a little opportunity, so that was right there. Then you had the break of 28 which was right here.

and then you squeezed all the way up here to a high of 41 42. Then when you broke that level, you got another nice move up to about 58. and then your new high was up here at 58, which it did eventually come back to that level, but um, by the time it did, that's the only one that didn't end up giving you a nice breakout. but you got nice breakouts on one, two, three, or four of the other pretty significant high of day or critical level spots, so those could have been okay buying dips you didn't have.

you know, it was choppy on a lot of those and went into these long periods of consolidation, so those weren't always on this one the cleanest. So you know the fact is, some are going to be uh, cleaner and some are going to feel easier to trade and some are going to be more difficult and there's a whole variety of factors that contribute to that. But if you find one feels difficult, you know sometimes the right move is just a step off of it and you know that's what I ended up doing. And I you know I kind of focused on some other stocks and I was able to get myself from Red 6000 back to in the green.

So I traded uh, gct a bit more conservatively as it was moving higher. I was holding a position all the way to the top of this first spike here of 41 898, but I just traded it with small size because I had already found that the stock was not really trading in a way that I found was easy for me to read. I was getting chopped up in it. so you know I went back at the places I thought it would go, but with smaller size.

I happen to be right on a couple of those trades, but smaller share size meant smaller gains. So this is what I encourage you to do when you have a stock that you didn't trade as well as you might have liked to have to go back to look it over and then you know, take that and apply it to your next trading day. Try to keep doing better and that's that's the name of the game. That's the goal.

Just try to keep improving, focus on consistency, focus on taking better quality setups. I had a couple that I took on Friday that weren't as high quality as they maybe should have been. that contributed to some unnecessary losses. So overall, market right now is pulling back a little bit.

Um, off of this descending resistance line on the S P. So we may have another pullback on Monday Tuesday early next week. After, you know, I don't know, like five consecutive green weeks in the market. So you know the market's been rallying here.

Even though it's a, um, we're you know, it's a Bear Market rally. The rally is still an opportunity where the tide is kind of rolling up and we get some nice opportunities. And um, we certainly did. So hopefully we see those continue, uh, into next week.

All right? So um, I think that's about it. Thanks guys for tuning in. I'll put a link um, right here to my Bear Market Strategy episode which I hope you guys have checked out. Uh, if you haven't already checked it out, please check it out.

Hit the thumbs up. makes a huge difference for the channel and I'll put a link to another video right here and I'll see you guys back at it Monday morning. I'll do actually a video game plan uh, tomorrow so I'll see you then. Reminders: always.

Trading is risky. My results are not typical so make sure you take it slow. All right. See you back here on tomorrow for a weekly game plan.

You.