It only took me a few seconds from when this stock hit my high day momentum scanner this morning until I was pressing the buy button. What we're going to do in this episode is a deep dive on everything that's going through my mind in those first few seconds. That gave me the confidence to step up to the plate today in less than 45 minutes I locked up over $133,000 in profit trading a biotech stock. No, my results are not typical, but here's the thing I have over a decade of experience and that gives me a tremendous amount of educated intuition I want to give you the chance to piggy back off of that intuition? So we're going to do a deep dive here and I'm going to break down for you my process of how I evaluate and know whether or not I should press that buy button.

All right. Now if you have not already gotten yourself a copy of my new book how To Day Trade the plain truth this is a best seller on Amazon and I would love for you to get a copy in this book. something that I did for the first time ever was I outlined 20 guard rails that I follow in my own trading that I think for me, they've kind of been like bumpers that have protected me from having really big losses and have kept me in this sort of sweet spot where I've been able to just keep grinding and grinding and grinding With an account with less than $600 all the way up to over 10 million and still growing, These are the guard rails that just kept me focused on the next. Milestone the next Milestone the next.

Milestone So no matter where you are in your trading, Journey if you can adopt these 20 guard rails I Think it can only help you All right? So make sure you check out that book and let's go ahead and jump in to today's deep dive. All right, so we can jump in and start going over my trades for today. Uh, trade two stocks. Vrme and Ints Very similar setups initially, but they both provided.

uh, very different. Uh, total profits for me on the day? All right. So first trade was on Vrme this morning when I first sat down I had missed an initial move on Sore S. So so we'll at that one.

Uh, just for a second s So uh, SAR had put in a pretty big move. Um, like a week and a half ago. It's a recent special acquisition company, so it's a spa and you know we had this kind of price action where it was trading at $10 and all of a sudden you get the Spack merger news. It squeezes way up here to like $35 almost $40 a share.

and then it retraces that whole move and sells off. So what we had today essentially was a bounce off those lows of six. a nearly 100% bounce as you can see as it went up to $1 a share. That's impressive but I missed it.

So this morning Friday morning uh I was both my kids have been sick. um so it's just they're home from school and you know these things. um get in the way of trading a little bit but family's number one. So I didn't sit down until about 7 45 and when I sat down you know I'm loading up my computer uh you know, kind of getting things uh situated and I see that it's right at this level right about here and I was like all right well you know it had already popped up to here and it was right here at about $10 25.

price is over here and I thought well you know, could it do a first candle to make a new high? kind of made a slightly new high. Then it dropped and then it popped and then it dropped and it popped up again and I was like this has got too much range. you know I can't get in it at 1050. my stop is way down here at like $9 a share that is way too far away.

not going to be able to manage my risk so no trades, it pulls back I was kind of now waiting to see if it would set up. um like maybe a five minute setup and right in this area. I said this looks like an inverted head and shoulders so imagine someone, um you know, just standing on their head. All right.

So there's that's their head, those are their shoulders. uh and this person's got incredible balance on the very very Flathead um and those would be their arms. So an inverted Head and Shoulders pattern should, uh, resolve back to the upside. but in this instance it did not.

I was watching it right here I had the level two up on on it and I saw at about $920 Uh, I was like almost punched it. But here's the thing that held me back. this topping tail right here and this one right here and at $99.50 there was a 12,000 share seller and so with that seller there I just thought, you know I don't know I'm not sure if I can trust it so I almost punched it at 9:30ish cuz I saw some green coming in on the level two on the tape and I thought all right, maybe this is going to be like, you know third time and then it busts through and squeeze up and it did it broke through, broke through. that seller goes up to 957, goes up to 975 and I thought H All right Well okay I missed it, but you know it'll probably retest this level and if it does and holds it, then I'll take the next trade for the leg up and that's fine.

Well, it did not hold it. It flushes back here down to like 840 what or 850 whatever it was. and that was basically the rejection that I was like, all right, this one's probably done and pretty much it's faded. Um, since then.

So I did see some some Traders um some members in the room who you know got some nice trades on this because you were sitting down early so that's awesome. Congratulations Uh, but uh, nothing for me on that one. Okay, so sometimes that happens, you sit down, there's already been some good moves, but that stock is now fading. There's nothing else to trade on it.

So then what do you do? Well, you start watching the scanners and so I'm watching my scanners right here and uh, so this is my top Gainer scanner which is just showing me a list of the stocks that are sorted from Biggest Gainer to smallest Gainer and then right here. we've got um, our um, our alert scanner. So this is giving me the alerts of as stocks are making new highs sort of like right now as we speak and I was watching this scanner and if we scroll down here, scroll down, scroll down, scroll down. um we would see that Vrme hit the scanner.

What time was that? Um, go back a little further. it was early, it was maybe around 8 or maybe 8:30 Let's see we got to go back a little ways here. so this was these are all the stocks. Have been hitting the scanner today so let's see.

Um, all right. So we have Ints I've got a lot of tabs open on my browser now. my monitor is kind of like freaking out here. Hang on one second.

So all right. So Vrme um, what ends up happening on this one was it pops up and it does not hold its level very well at all. So let me show you I'll just pull up the charts. my um, computer's kind of running slow right now.

so Vrme this was right in here. What time was this? This was 8 A.. All right. So this stock goes from A15 all the way up to 248 which was pretty incredible.

This is what I call an algo Spike an algo spike is when a stock basically goes straight up and these can go I mean 240 could go to 3 325, 350, 4, 450, 5, 6, 7, 8, 9, 10 I mean when they start going, they can go quickly. So what's happening here is algorithms are responding as orders are coming in and all of a sudden you're getting this uh, parabolic price action. so it's a bit. um, it's It's a lot to sort of explain it.

Uh, so I'll just summarize it with that. uh I teach that extensively in our classes. So anyways, we get this squeeze here here. and I press the buy button at $177 right about here I press the buy button at $177 Um, this is the one minute chart.

but if you looked at the 10c chart um, you would notice let's see where's my 10-second chart. You would notice that this did a micro pullback. Where is it? Uh, right at about A177. So let's get this zoomed in here.

Okay, so right at A177 where that yellow arrow is was where we got a micro pullback. Just for a moment, you can see it hit a high here of about 81. It pulls back and as it came back up, that's where I punched my order. So the problem is I only filled seven shares at$ 1.77 but I pressed the buy button a couple of times and now I'm filling in this candle as it's going up and I'm filling at $1.95 at $2 and at 210 it ends up hitting a high of 248 and I held because I was thinking all right here we go this: if it breaks over 250, I'm going to add again and look for a squeeze up to three and I'm going to probably keep adding every 25 to 50 cents on this because it's moving quickly and we'll see what we get.

It ends up reversing here and I stopped out I Sold it. not with a live stop order but I bailed out. Uh, sold on the bid and made $5 on that trade. So $105 basically a break even trade and it you know it rejected.

it came all the way back down. So I think what happened on this was we initially got that Spike um but it didn't hold. Um, there was some news here. Share repurchase program I mean it sounded interesting but obviously it just didn't hold up.

So anyways, so that was Vrme. that was my first trade of the day. Then I'm sitting here watching scans and Ints hits my scans. at about $7 a share, it's currently at $10 It's up 165% So this one is our leading gapper today.

Uh, on this one, look at the 10-second chart as well. Let's see. All right. So on this one right here.

this one popped up and it hits my scanner at $7 about $7 a share. So by that time it was already moving higher. as you can see. Uh, it hit a high of eight.

it goes up to nine. Uh, right in here. Let's see we have the high of8 840 and N I bought uh right in here. 4,000 shares I was like I'm going to take a starter well 2,000 shares and I add another 2,000 shares.

It ends up hitting a high of $11 a share right through here. This is an ABCD pattern I added for the break of 11 and it goes up to 12 to 13. and I was taking profit into this move right here and I locked up $13,500 of profit on that squeeze right there. So this was trading a stock straight off the high day scans and we got that algo.

Spike But on this one it worked and I think what was different about this one was the catalyst. So the Catalyst This is a pharmaceutical company and their news was, uh, presents positive POS You know data in patients with early stage of breast cancer. This is the type of headline that has given us big moves this year. Biotech stocks.

Now the thing is, when a stock hits the scans all of a sudden, it hits the scans at $7 What's my kind of workflow? All right? I Click the scan I click the stock ticker, it pulls up the chart, then it pulls up the news. Then I'm going down to my level two window I'm typing it in a second time. Ints: Enter now I'm looking at the level two and from that point I'm glancing up at the chart the one minute and the 10c. I'm looking for micro pullbacks I'm watching the level two I'm watching specifically around half dollars and whole dollars.

So the type of price action that I really like here is when we have the move up like this. the micro pull back here and then that break higher and I love it when that corresponds to a whole dollar like nine or 10 or 11 doesn't matter or or a half dollar because once the stock breaks over that level, while it could dip down and retest it psychologically, this is a strong holding point, then for the next leg up. so then if it goes up. uh, let's say this is $10 a share, then often what I'll do is I'll add again at 10.

and now my new stop is as long as it holds this psychological support I'm going to keep holding and then if it goes up to 11, I can add again as long as it holds 11. And next thing you know I start with you know, 2,000 shares down here and another 2,000 another 2,000 and I've got 6,000 shares at. you know, let's say $10 a share and then it goes up to 12 to 13 to 14. And that's when things get, you know.

pretty exciting. That's when I end up having my biggest winners. So there's obviously a difference between that strategy of buying and adding and adding and sort of the beginner base hit strategy of get in, get green, and get out. One of the things that I've noticed this year is that we have these windows of opportunity when stocks are making these really big moves.

and that's the time when I need to be the most aggressive when we're in that window and then once that window closes I got to take my foot off the gas I got to slow down. So in the case of Ints, uh, my last trade was at 8:45 about 8:45 A.m. So I traded this I I traded today for 45 minutes basically and locked up $13,600 of profit when I did do some dip trades on Ints as it was pulling back in this area in this area support at the ascending support line. but then I sort of visualized this as another Head and Shoulders pattern and I was thinking it was going to be coming back down and that is what ended up happening.

In fact, it kind of was riding this descending resistance line as it came back down right it, it wasn't really able to get above it. and then when it finally did get above it here I was like well, now we're below Vwap and I don't know if I really want to trade it and honestly, the level two on it see how stacked those orders are. it's gotten kind of funny. Um, it's really it.

I don't know. You know these big stacks of buy and sell orders it seems now like it's a tug-of-war and I wouldn't really be interested in trading it again unless it can break out of its range. which ultimately means well. you know to me, the Tipping Point would probably be over like 1250 for a retest of 13415 new high and then to move up higher so I Want I Really don't love trading stocks that are range bound like this I Want to be trading stocks that are in a strong ascending Channel where they're moving up.

Pull back, move higher, Pull back, move higher. That's for me. Where I do the best and this just isn't there right now. And this is an area where a lot of Traders can get chopped up.

Look at this candle right in here. For instance, see that candle. Let's zoom in on it so that candle? Look at this thing I Mean you know that's no joke. This pops up from 10, goes up to 11, then drops all the way down to under 950.

You know that's a candle that we call it a jack knife and it hurts it. It It's I mean whether you're long or short, that's hard to manage risk on. and we've seen a lot of candles like that, and we're more likely to see them when a stock is in consolidation. It's range bound, which means moving averages are basically flat.

It's going sideways, so I'm trying to be a little bit more um, mindful to avoid trading when something's sideways and focus on when it's moving quickly. But the problem is, when you're really zoomed in here, this doesn't feel like it's moving sideways. You're like, oh, look at all this range so you got to zoom out. You got to step back a little bit, zoom out and say, big picture What's going on with this? Is it making new highs? Well, no, it's not going to make new highs unless it gets over that level.

And that's actually kept me out of a lot of Trades this year. Uh, and even just in the in the past few weeks because we've had a number of stocks where we had a nice big move pre-market whether I traded it or I missed it, you know is is aside from the point. But we had nice big move pre-market and then we go into this kind of consolidation chop and things only get exciting when it breaks out of that level. Uh, Mlgo was a good example of that.

Earlier in the week, this one was um, you know and this one's this. This stock is a whole another story. but in any case, um, you know once you're making new highs and you're stair stepping up, you know that's when things get interesting and that's when you start seeing these bigger moves like this. So you know a lot of trading to me is sitting and being patient and waiting for those opportunities and also being willing to take stabs on things that are moving like Vrme.

and if it's not working, get out quickly, get out of the way. So you know one of the things that I've gotten pretty good at is just cutting those losses and sometimes they're big, you know I I have for sure my share fair share of losses I had a $5,000 loss on Tuesday Um, the week before I had three basically Max loss days in a row: 5,000 4,000, 6,000 but I C my losses you know I mean pretty well. So if you look at my losses this whole year, they're all you know about that size. That's kind of how deep my red days go.

I cut it and then I move on and and I know when to walk away. I've gotten better at that. Um, and of course you know I get some nice green days here and there that uh, that are good and those certainly make up for. Um, this is kind of the idea.

cap your red days, don't cap your green days and then you have Equity curves that go up as long as your accuracy is greater than 50% right? in terms of red to Green So I have to cut my losses on red days and I mentally have a Max loss of five grand. So if I'm down more than five, I I' and I'm not sometimes I fall victim to chasing something and going a little further. But generally if I'm down more than five I tell myself just to walk away. Don't let one day you know it's just one day.

Don't let it ruin weeks of progress. it's just not worth it. And then next thing you know you know yeah, was I bummed out in this $5,500 red day on Tuesday I was you know but I made back 4600 then on on Wednesday Uh, yesterday was 2,300 and you know now today is 13,000 And just like that, this red day is water under the bridge. Now here's the thing.

in the moment: when you're in the heat of this red day, it doesn't It feels like oh my. You feel desperation. You want to get it back. You feel frustrated, annoyed with yourself, disappointed.

It's easy to feel those things. But remember in this market in trading Easy Come Easy Go Just think about how fast you lost it and how quickly you can make it back. and maybe you're not going to make it back today. but maybe it'll be tomorrow next week.

You know, whatever. and as soon as you make it back, you're I can tell you I cannot even remember this red day I Can't remember either of these these red days I have no idea what I traded on those days. They mean nothing to me Now these red days I Remember because I had a few days in a row and this one I Remember because it was just the other day. But the the wisdom that I'm trying to share with you is how quickly this can be water under the bridge.

and so if you can forget about it and it's like completely out of your memory two weeks from now then, like literally. what is the point of spending any more time worrying about that right now today? Don't even worry about it. You'll make that. You'll make back that loss eventually.

Just don't even worry about it. Put it behind you. Move on. Move forward now.

Obviously, if you have four or five red days in a row, you know if you're getting your account down under, you know PDT minimum or something like that, you've got to make some adjustments for sure. And that's when we talk about checking into Trader Rehab and that's what I did in this area here after those consecutive red dates because I was like I'm giving back too much I need to start rallying back up. And so the rule of thumb that I use when I have uh when I have a big one big red day if I have one big red day, look, life happens. You know this is trading.

Trading is risky. So one big red day I don't really think a lot of it I can come back the next day ready to trade and it's fine. If I have two big red days then I'm like, okay, two back-to-back Max loss days that's not great I need to be a little bit careful coming the third day I happens for a third day. That's when I start saying okay, something is happening right now where whatever I think a stock is going to do, it does the opposite.

So right now, for whatever reason, my accuracy is low. I'm not firing, you know I'm just like something's not quite right. So the moment that I'm looking for that next trade I have to remind myself that everything that I think is going to happen has not been happening these last couple weeks. So what I need to do is I need to focus on, uh, just trying to hit some base hits.

So what I end up doing is um, you know I've had this nice stair step up, whatever and then I have one big red day, two big red days, three big red days. So now I'm like, all right, damage control, we got to stop the bleeding and start rebuilding this account. So this is where I set a Max share size Max share size right in here and um I limit myself to like A+ quality setups that I have like 99% conviction they're going to work. So I trade a lot less and then what usually ends up happening is I'll have you know a small green day or if I have another red day, it's a small red day.

But you know eventually I start recouping and once I've made back about 50% of this loss, that's when I take the share size restriction off and I can be more aggressive I keep focusing on high quality and then once I get back to New highs and I'm just like back in the zone then you know I still focus on the best quality. But if I want to take a B setup or whatever you know now I'm back in the place where I'm feeling like focused and I'm doing well. so so you know if you're in to draw down, this is kind of the way I would approach it in terms of uh, recovery and I you know I was just in a draw down um well I had a one one red day on Tuesday and I'm recovered from that. but I had that um red day streak two weeks ago that uh took about a week to recover from.

So anyways, um today I was able to uh step up to the plate I I I think that there's more potential in Ints as as long as it holds up and and also so one of the things that I might have not mentioned was. One of the first things I noticed was that it was a blue sky setup on The Daily all-time high was 675. So when you have a stock gapping into blue sky, uh, I am almost always going to be more aggressive on that setup. that's something I really like to see.

um once I realized it was a biotech stock which wasn't you know I didn't know the ticker when it first hit, but once I recognized that I was like okay, this is the sector that we want Like this has pretty much you know if I go through my checklist um, you know, price between 2 and 20? check uh and and and within this range it's It's kind of a favorable spot of five to 10 which is where I tend to do the best. Um, the volume relative volume was high, Relative volume was very high, total volume was low, but that's because it had news and I was probably one of the first people to see the news because I'm scanning for the news. So News: check relative volume is high. Relative volume on this today is 2,613 times normal volume.

That is Huge. It's because there's news. Yesterday it had no volume. Today it's got over 20 million shares.

It's because it's got news. Um, and then the float. On this, we've got a float of uh, what is it 13 Uh, about eight million shares, 8 million share float. But it's also a somewhat recent IPO So it's got these kind of like, you know what you multiple X Factors: um Blue Sky recent IPO Oops recent IPO Biotech, right? So like juice Factor Juice Factor So now those all sort of amplify the potential.

It doesn't mean it's going to realize that potential, but it amplifies it. And this I would say is the educated intuition that I have at this point in my career and this is what you know, you guys of course tuning in every day. Uh, Warrior members get to benefit from. You get to piggyback off that intuition that I spent you know, more than a decade accumulating.

So all of that I was able to sort of, you know, uh, understand to the point of having the conviction to take the trades. uh, within within seconds? almost? um. and then as the stock was going up, then it was like real time, actively trading it, capitalizing as it was squeezing higher. and you know, I'm in the zone.

So yeah, I would love to see this continue to hold Vwap and I'd love to come back and see it goes higher and curls. I'm not going to probably participate in that part of the move. it's Friday I'm finishing the week here in good shape. Um, but you know that's what.

that's what I would look for for continuation would be for it to get through the highs and then start to, uh, pick up some steam. So anyways, I think for me, the easiest uh window has closed now that it's um, past 10: a.m. All right. So uh, that was a breakdown on this um, trade and I'm going to upload this recap to YouTube So those of you guys that are on YouTube watching it I hope you hit the thumbs up and I hope you subscribe to the channel.

It makes a huge difference. Some of you guys have been asking for Recaps and we have had in the last few weeks a lot of volatility and so there's definitely the opportunity for me to do more Recaps if you enjoy them. but um I wasn't sure that they were even people even really cared about them. So anyways, if you guys want Recaps then let me know in the comments and uh, let me know by hitting the thumbs up and subscribing and I'll see you guys back here on Monday and uh, maybe if we, uh, get enough thumbs up and subscribers on this video I'll do another recap on Monday we'll see All right So that's it for me.

Uh, thank you guys for tuning in and I'll be back at it Monday Morning.