Alright guys, so time for a midday market recap. Today is Day 42 of the Hundred Thousand Dollar Challenge and I'm finishing the day up: Five thousand, Six hundred, Eighty Nine dollars and Seventy Nine cents. For those of you watching on Facebook live I'll show you my PNL their five sixty five thousand, six hundred Eighty Nine dollars and Seventy nine cents three stocks I Traded today two winners and one loser. So overall, you know, not a bad day.

I Actually thought today had the potential maybe to be a ten thousand dollar day which would have been awesome and I've got my sights set on you know, breaking that hundred thousand dollar mark. So tomorrow my account will open right around eighty Six thousand dollars. which means I'm only about fourteen thousand dollars away from hitting my goal. And of course, this is the account that I started on January 1st with $583 Now I was using leverage I was being aggressive and absolutely taking a lot of risk to make these types of gains.

I mean you can't take 500 dollars and turn it into 100 grand without taking risk. but every risk I took was calculated so I would be really aggressive on what I thought were a quality setups. putting basically my entire account including buying power into those trades and doing that you know repeatedly day-in day-out for 42 days has gotten me to where I'm at today. So this is definitely a nice big Green Day I think this is actually the biggest Green Day I've had since.

Let's see February 22nd when I made $8,000 so you know the biggest Green Day in in over a week you know close to two weeks it was. It's been kind of slow I kind of went into a little bit of a slump if you will. where I had a couple of red days where I lost about $4,000 a couple of green days that I made back that 4,000 but was only back to break even and then I had two more days of break. Even so, it's kind of like dipping down back up, kind of flatlining and now starting to open up again a little bit which is which is awesome And I'm hoping that we have some strong momentum this week that carries me up to the hundred thousand dollar mark.

My goal of course is to get there by the end of the month. So I've got well, four weeks essentially in four more weeks to do it. which is $5,000 a week. But here we go: Hit my weekly goal in one day one morning.

So you know this shows you that if we have good setups I can you know I can rack up the profits pretty quickly. but if we have a week of just choppy markets no good quality opportunities, it's going to be really slow going. So you know I just have to remind myself not to force it. You know I'll take what the market is willing to give me and if you know it ends up being slow the way it was the last few days until today, then you know I'll just I'll deal with it.

Alright, so let's look at the trades: I Took today: Cnce, Nov N and SPU Now if we look at our relative volume leaders scanner, let's see where's I'm surprised CN Cn Cnce isn't showing on here. It has ridiculously high relative volume. There must be a reason let's see why it's getting filtered off of this scanner. Yeah, because it's not even on here.

So I don't know. Something's obviously not quite right with this scanner today. But despite that, and Nov n is on here as well with five point six two times relative volume and SPU where's that? that one doesn't happen to be on here. So in any case, we'll go over the trades from today.

So Nov N and s P you were both on my watch list this morning. so SPU I'm just going to go ahead and ban this one guy. hey Mike can you do me a favor and just clean up, chat after him. It's not uncommon when we run a free chat day that we get a couple people that don't want to follow the rules.

So today, as you guys know, was a free chat day. We had over 3000 traders come through our doors today, which is obviously pretty ridiculous. It's a lot of traders and inevitably there's going to be one or two bad apples in the bunch. I mean it's just a matter of the numbers that it's going to be that way so you know.

A little bit annoying, but for the 98% of you that were on good behavior and enjoyed the room, we of course are happy to do these days and we'll continue to do them. So anyways, going back to: I'm just going to put a password on the room here real quick. All right. So going back to Nov N and SPU these two are both on the watch list.

This morning both of them had news so we'll look at SPU first you can see this one here. So SPU was gapping up this morning and let me just pull this back here. Those of you who are watching screen share can see what I'm doing. so SPU gapping up 20% but on very light volume and that was my concern that yes, we had a good gap, but it was obviously light volume.

So I said when the bell rings, I'll watch to see if volume comes into the name and I'm really just I'm not sure if we'll get it, but that's what I'm watching. Well, right on the first 5-minute candle we did get a bit of a spike of volume from 5. Let's see from a low of 565 up to a high of 645. so we kind of squeezed up out of the gates.

We pulled back and that right there that pull back would have been a good 5-minute entry and it was an entry that I missed. by the time I saw it, it was already spiking up here at 650. So I was like alright, well you know what I'll jump in at 6:50 we're going to be breaking over the half-dollar This looks like a decent spot to get in. So I get in at 6:50 we pop up to a high of 688 at which on the daily chart this stock number one is a former run or history of making a big move.

It's above the moving averages which is of course what we look for and it didn't have any nearby resistance. So I was thinking, you know above, $7 starts to look good from 7 12 here up to 8 20. That was sort of a big window on the daily chart right in there. All right.

So as we were popping up here 288, that was the spot I had in my mind we pop, we drop back down to 38. I'm still holding. We go back up to a high of 79 and at that point I said look, if this thing can't get back to the highs and it breaks down I'm just gonna bail out I'm not gonna hold it and we ended up having a lot of sellers in that candle and so I just sold it with 5,000 shares I made an average of 14 cents, but that wasn't the wind that I was looking for. I wanted to take 5,000 double to 10,000 for the break of $7 and potentially get 50 cents or 60 cents with 10,000 shares.

but I only got 14 cents with 5,000 So although it was a winner, it's not what I was looking for. You know, the good news obviously is when trades that don't work out well still end up being winners. So this one, despite having a headline despite being a former runner, it was just a little bit weak. And you know, maybe not incredibly surprising given the fact that the last day we had a big move, was also really shut down here.

the high of 712 and then dropping back down so it's been a little tricky to trade. made some money on it. but not one of the best stocks ever now. Nov a this one I was watching pretty closely because back on February 15th and I'll show you guys who are on Facebook live back on February 15th we had this candle where it squeezed up from a low of 479 all the way up to $8 right there.

and you know what? I missed almost the entire move because I didn't want to get in on a one-minute setup I wanted to wait for a five minute pullback and by the time it was pulling back on a five minute, it was already to extend it. So what I remember about this stock was number one. it's a former runner, number two. It ran quickly without giving me an entry opportunity without pulling back.

and so when I saw it popping up today with a headline I thought yes, this is definitely one that I'm going to want to watch. but you can see here. my concern was the fact that pre-market we had a pre market high of 785 and then we pulled back and I said you know if the bell rings I'll be watching it may be long over $7 That was kind of what I said on my watch list. Well the bell rang and it popped up to 750.

kind of like SPU I waited for the volume to come in. it pops up to 750 and that's when I said okay, it's showing me strength and it's not gonna leave me behind now. I would say on both SPU and Nov n I did not wait for the five-minute pullback I didn't I was impatient I was a little bit impatient and I've started tracking on my trades whether or not I'm waiting for 5-minute pull backs or I'm getting in I'm just like jumping in basically right off the scanner because I definitely do a little bit of both depending on the quality to set up the stock that's hitting the scanner and and you know sort of a number of factors and I'm trying to get a sense of you know where I'm which method is more consistent and you know which one gives me bigger wins, bigger losses, average profit, loss ratio, accuracy, all of that stuff right now it's too early for me to tell, but you know on Friday I had a couple of really solid trades on our NVA based on the 5 minute time frame and those were, you know, super solid $4,000 profit. So you know I know that the 5 minute can be really strong, but in this case on Nov N This thing ran completely without me the last time it went and I missed it.

so I didn't want that to happen again. So I jumped in here with 10,000 shares at 7:50 and I knew as I jumped in that my risk was going to be probably at least $3,000 I was going to be looking at a bigger loss if it didn't work. but the back of my mind target on this was that we would break over the high of this candle here which was 798 that we would break over 7/10 798 and then we've got room all the way up to the red moving average here the 50 moving average which is 1168. Now it's not to say that we would necessarily go that far in one day, but the fact that the stock didn't have resistance until that point I mean that's good.

That's what we look for. You know that's a stock with a lot of potential. What surprised me today is that we didn't get the level of follow-through that I expected. Really, not at all.

I mean yes, we went from 750 up to $8 and we pulled back here. Let's see, we went up to a high of 819. We pulled back down I sold through the break of $8 and then continue to hold 2,000 shares. We popped back up to 815.

We pulled back I sold 2,000 shares and then I kept 500 within with a stop at breakeven thinking that, all right? I'll let this consolidate and then I'll wait for the opportunity to add on the 5-minute setup and I'll keep this core position because that will keep me focused, you know, on the trade. And so I kept those 500 shares until I got stopped out at 7:44 So you know it was a good-looking setup. It had potential, but it didn't get the follow through. Neither did SPU The one that I wasn't expecting to be so strong was T GTX this one I didn't anticipate being so strong because it's a five cent tick pilot program stock.

It was gapping up 80% but I thought, well, 80% gap 49 million share flow it's 10 dot almost $10 now million shares, a pre market volume I don't think it's going to be clean and so what really surprised me was how this one surged out of the gates. but really not that different in terms of its pattern from SPU or Nov n both of them very strong out of the gates and then rolling over. So this shows you the opportune to capitalize on this pattern. a pattern that we see really day in and day out.

Usually it's a pattern that we'll see in the top-ten gapper. so you know the top 10 gapping stocks. These are the ones to watch, narrow them down and which ones look like they have the most potential on the daily chart. No nearby resistance and I just thought this one didn't have potential because of the five cent tick, because the price, and because the float and in this case I was wrong.

There was short term opportunity here for the first four or five minutes, but obviously you know it rolled over out of the gates. Now the second one that I underestimated was CN sorry Cnce Cnce. so this one you know. Also not a bad pre market flag I mean it really wasn't it was a that was a very strong pre market flag I would say.

But my concern on this one was, well. the price is pretty high. you know it looks good, but I'm just I'm not sure usually I try to focus on under $10 you know, over $10 I'm not gonna be able to take ten that well. I could take 10,000 shares, but it would be a lot of risk and the spreads are usually 20 cents maybe maybe even 30 cents.

Which means if I took 10,000 shares I'd probably be risking 50 to 60 cents per share. I'm not willing to risk you know, five to six thousand dollars. But what ended up happening is the bell rang and the squeezed first it squeezed up to retest the pre market high right here which was 1366. So we came up to that level.

We broke through 1366, 1379 and then we dropped back down. We popped back up to 14 and then from 14 we dropped all the way down to 1328. So this shows you this is kind of the challenge of trading these stocks right out of the gates. Now if you look at the 5-minute chart, you'd be like this was smooth sailing from 13 to 18.

but then when you look at the one-minute you realize that you know it hit hit new highs, Then it hit new lows. Then it came back to the new highs. So it was actually choppy until it consolidated here for a few minutes around 1425 and then it started been up a little bit more and these one-minute pull backs you know ended up being fairly good that the sort of first one at 1425, the second one at 15, and the third one at 17. But you know by the time I was seeing the third one at 17, I felt like it was too extended on the one-minute to buy a one-minute pullback to extend it on the five-minute - bye.

There was no five-minute setup and so I said well I'll just have to wait. So what I decided to do on this was wait for what I thought would be that ABCD setup where we get a pullback b A.pop see a second pullback and then D a break over that level and so that's why I got into this one right? Let's see I got into it at let's see what was the time to do. It was 11:50 right on this candle here and I was thinking that it would break over the high of 1784 and we would go back to 18 and then over 18 would go back to high a day. 1850 make new highs 19, maybe maybe higher.

And obviously that's not what happened, you know we. We popped up and then we faded. Fortunately on this one though, even with a thousand shares, I was able to manage my risk and I only lost nine dollars. So three trades today, two winners, one loser, and the biggest loss nine dollars.

I was risking about $200 on that trade I was risking about 20 cents and the profit target originally was 18 to 1850, but my plan was that I would add a thousand shares around 18, maybe even 2,000 get myself up to three or maybe four thousand shares once I had a full position and tried to ride that for 50 cents or maybe a point. So to risk 200 for the potential to make a thousand two thousand if it worked well is totally worth it. Now just because I'm risking two hundred doesn't mean I need to take that full loss if I get in and the stock is telling me it's choppy or it's not following through. I'll just get right back out and that's the breakout or bailout mentality.

I Get in if it doesn't give me what I'm looking for I just get out of the way so losses will always be small. Now for the most part, you can do that on any trade. The times where that can be tricky is when you have a big spread. So a stock like an O VN where you've got a 20 cent spread it? well.

I'm not sure if it was as big as 20 cents, but when you know that you're going to have a bigger spread and you're going to have more slippage, it can be a little bit trickier to just get out quickly And you know. So that goes back to knowing that if you trade the best quality setups, those are the ones that are going to have the best resolution. Those are the ones where even if it doesn't work exactly the way you wanted it to, you can still usually get out. you know, right around break-even or close to that.

All right. So so that pretty much wraps it up for today. I Was looking at reversal trades after I hit my my goal. Well my goal is really $1,000 a day.

So you know once I was up 5000 I just sort of switched gears to looking for reversals. We had this nice reversal on GM General Motors which you know usually isn't a stock that I would day trade but right here it was very extended to the downside and you can see that bottoming tail doji with an entry right here at thirty seven thirty and a move up to 37 53. So you know 20 cents profit versus 10 cents top I mean that's your two-to-one profit loss ratio. It's not a bad trade, takes a little bit more money.

the potential is a little bit more limited, but you can, you know scalp these types of setups off the bottom just using these reversal scanners. so you look for the reversal first candle to make a new high. Whether you're using the one-minute or the five-minute or you know, maybe combining both of them, you know that's a good opportunity to pick up some small gains you can see here on cost. After this long down stretch here, over 6660 popped right up to 6704.

So you know a nice 40 cent pop versus 10 cent stop four to one profit loss ratio. You know that works pretty well. All right. So in any case, that's where we're finishing today month Monday March 6th So a nice nice green day just under fifty seven hundred dollars and I'll open tomorrow on day 43 with eighty six thousand dollars.

So closing in on that hundred thousand dollar goal, you know and I'll be excited. You know when I hit that mark I Expect it'll be as early as this week if I have some really good trading, but probably next week or the week after at the latest. I Don't think it's going to take me all the way to the end of the month, but you never know I mean it made things may slow down a little bit and if it if they do then you know I'll just I'll just adjust. You know, try to taper my risk back a little bit until we get some cleaner trading.

But today we had some good opportunities so hopefully that's a sign of good things to come this week. All right guys. So any questions for those of you watching on Facebook or YouTube you can put quote. you can put those questions down in the comments section and I'll come back around and answer them.

Those of you who are in chat I'll answer questions now and also a reminder guys. We have been nominated for the 2017 Ben Zynga FinTech Awards We were nominated for the 2016, were nominated again for the 2017 Awards and you can see right here over on Ben Zynga So we would love to have you guys cast your vote and I'll give you the link here where you can put in your vote. We'll be going to those Awards in New York and we're hoping to to do well this year. All right.

So if you guys enjoy these recaps, enjoy being part of the community. We'd love to have you vote and help us get our name on the board over there. Okay, those of you watching on Facebook I can give you the link here and those of you on YouTube I'll post the link down in the comments. All right.

So let's see to David to answer your question. No, the bid and the ask don't determine new highs unless a print goes through JQ answer your question a hundred percent there. Yeah, the print needs to go through and that's the same with a stop order. So like I had a stop at on Nov n at 750 but it dropped down to 744 on the bid.

Now there was 74 744 on the bid, but there wasn't a print so I had to wait for someone to actually press the sell button at 7:44 to trigger my stop order and then the order went through at 44 and I think at 42 So you know, maybe a little annoying there just with stop orders that they're also going to wait for the stop or the the price to trigger. So Jacques if the five cent tick becomes I'm not gonna post this and here's the link for voting on: Facebook All right let's see voting for Ben Zynga and Tech Awards So if the five cent tick becomes you know it gets accepted. Now it they'll be in early 2018. in the spring they'll be a report on the high on the findings you know, good or bad and then I suppose in the fall about a year from October is when they would potentially move forward with either just ending the program or going live with it.

If that happens, it will change the market. I mean it will. for sure it'll change the market for small caps and I think that traders will end up changing their focus to areas that are more volatile because the small cap market the ones that are currently affected by the five cent tick pilot program are not as volatile right now and they're just not as interesting for most traders with a couple of exceptions. So I think that yeah, it'll change the market and traders are have to be adaptive people.

I Mean we adapt on a daily basis to the markets and it'll be no different with you. If that type of program was implemented across the whole market, it'd be interesting to see if that is implemented on OTC stocks because if it is not, those will probably become very popular. If it is, then the switch will probably be to stocks with a one cent tick, one cent spread that are just a little bit more expensive and those will become the new stock that all of the trader jump onto. And so you have to realize that the market is very much a result of collective trading mentality.

Hundreds of thousands of traders all around the world forming long or short biases on these stocks. so you know every trader is going to go to where the action is and the action may change places. But I don't think it's going to have you know too much of an impact other than just having to re-evaluate where there's action each day. Let's see: OTC Executions I haven't traded in OTC stock in years, so I don't know what the executions are like right now I'm really I'm really not sure if they're you know if they're better than they used to be or if they're just as bad.

typically they're not as good. So Fonzie after a pullback and what I'm looking for really is the first candle to make a new high. And I know that sounds pretty simple, but but that's really, you know what it is. So on a stock like our NVA you know we'll go back to this one from from Friday This one was a little bit of a sharper pullback at first, so it wasn't We got this kind of ABC setup because it pulled back so much and actually got to be on the one-minute.

We got it on the 5-minute as well. so you know typically well. let's saved right here. You have a stock that just moved up quickly.

it pulls back, you get two red candles first calum make the new high is the entry point and that's where I got in right there for the break over three dollars. so you know that's the spot that traders will look at after you get a second and a third pullback that don't work as well. You know traders kind of move on and look at the next stock and Cnce. This one didn't really give us a clean pullback.

by the time we got it, it was already super extended so it didn't end up working. But generally I like to see a pullback above the moving average holding the moving average as support and then you know you're consolidating there or the first camel to make a new high and going right back to high a day. You know slippage is something that I think we all deal with to a certain extent on, especially on stocks that are really fast moving like Owens or Cnce and even SPU and Onv n are going to have more slippage. A couple things you can do: number one: I try to sell on the ask whenever I can.

So I'm selling to a buyer that's gonna reduce slippage because I'm getting out at the best price when I get in. I do face slippage because I'm buying on the ask and sometimes the slippage is bad. I mean sometimes I get 25 cents of slippage on my orders. but by using a limit order I'm limiting how much I can allow.

and sometimes the problem is that if I keep pressing ctrl or shift 1 to buy a thousand shares or 2500, it's going to keep putting the order 5 cents above the current price. So I'll keep getting slippage as the stock moves up. and I have to be a little careful about that hotkey because it's definitely gotten me into some trades at really high prices, which is for sure. You know, not a good thing, but you know at the same time you know that's just sort of part of the deal with trading.

So you will get slippage on some trades, but you do the best you can to keep tight stops and and that sort of thing. Let's see, did you -: I Don't buy pre-market No, no. pre market trades almost never. I mean a couple times, maybe in the last year, but very, very rarely.

and Scott I don't use a market order when I bail out I use a limit order and I sell on the bid. So right at the bid price I Don't trade pre market because number one, there was usually not enough liquidity. I've just always not felt as good trading pre market. I would just rather wait for the bell to ring.

it's more volume. Alright guys, so I think that'll just about do it for today and we will jump back in first thing tomorrow morning for day 43 and hopefully we've got some some good stocks on the Gap scanner that we can look at in the morning. Alright guys I'll see you first thing tomorrow. Let's be honest, if you made it this far, you must have really enjoyed that video.

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