What's up everyone? Alright, so here we are: finishing the morning up: 1880: $1.10 Guess what? Today I'm breaking over half a million dollars in trading profits for 2018. There's a big milestone for me. first time I've ever broken dough for that number Now of course my long-term you know stuff is dipped in the last month, so that's gonna hurt a little bit, but you know, whatever. the day trading account has been growing I'm really happy about that and you know it's just been slow and steady progress the last few days I've been.

you know, 1,500 1,600 1,700 and that's been really, really good. I think I have 16 trading days so far in December 13 of which are Green Three are red bad and you know, kind of coming to a good end here. What's been an incredible year? I've been averaging over the last 235 trading days of this year about $2,100 per day. So today I'm a little below my average, but then of course on Monday I was a little above the average.

it all averages out. So I'll break down all the traits from today and our midday market recap. As usual, any questions, any comments, leave them below I'll come back to and answer them later this afternoon. I'll see you guys first thing tomorrow.

Alright, see you guys in the morning, so we're gonna jump in here with today's midday market recap. Today's a pretty big day because I am crossing over $500,000 in trading profits this year this morning. another one thousand eight hundred eighty one dollars and ten cents on the two stocks I'd traded this morning, so it puts me up over half a million dollars on the year. and now with two days left in the year, I've just got to stay over that level.

You know the reality is when I have a red day. it's usually you know, a three to five thousand dollar red day. so I'm only above the 500k mark by like seven hundred bucks. So I'm or maybe even a little less than that.

So I have to be pretty careful the next couple days. that I just you know, add a little icing to the cake without having you know a step back. I don't want to end the year with a red trade so you know I'll do the best I can. But another really solid morning here.

BT AI and AD IL were the two stocks I traded now. Interestingly, today, we didn't really have a watch list this morning, and that's kind of unusual. almost every other day you know when I sit down? I've got a pretty solid list of stocks as I'm looking at, but this morning, that wasn't the case. So every day the routine is the same.

Now you know it's kind of the nice thing about being a trader that we have a routine every day. I Wake up I sit down in front of my computer between 8:45 9:00 a.m. and the first thing I look at are my Gap scanners and I take a peek at the overall market. So the Dow Jones yesterday was up over a thousand points.

The biggest single day single day gain in the history of the Dow Jones is pretty impressive now. of course that was in the context of the fact that we had ten consecutive read days and we were I suppose due for a bounce and the bounce was actually on light or volume than any of the green days which is maybe an indicator that this is going to be a Bear Flag that ends up selling off. So I'm not gonna get my hopes up that we're out of the here on the overall market. but in any case, yesterday the market was up.

But then this morning as you're looking at this gray area here on my chart, this is showing after hours which is always on very light volume and pre-market trading. So pre market we actually are you know, starting to sell-off and dip down a little bit as you can see here. So and now this morning the market has kind of been a little soft. it's been a little weak selling off just a little bit more so.

I look at that. you know just to sort of have a reference point of what's going on in the bigger market. Not that again, it really makes a huge difference for active day traders like us, but it's it's worth you know, taking a look at and then I look at my Gap scanner. This is a scanner that searches the entire US stock market for stocks that are going to be opening up more than five percent.

That's significant More than five percent exceeds the standard deviation of the market. So today there were a decent number you can see in the entire market. I mean I don't know. like maybe 35 or 40 stocks and pretty much I keep I cast a wide net.

anything above 5 percent above 50 cents I'm willing to look at now. some of these I Can immediately tell you I'm not going to be interested in number one. One that only has two shares of volume is not significant. 26 shares of volume, 200 shares of volume.

These ones are not really significant for me now this one. BTA I We actually did end up trading, but generally if has very light volume, I'm not going to be that interested. The second is the float. I Generally look for stock to the float of under 50 million shares I Really prefer under.

you know, maybe closer to ten million or something like that. All right. So this morning the ones that were you know kind of qualified there. you can see we had a BT AI under ten million as a six million share flow.

this one was eight million share float RG SC but it was a little cheap so right away I can take this one off the list. This one probably off the list. this one off the list w ATT 24 million shares. you know that's that's worth.

kind of keeping an eye on it and then going further down you can see some of these down. The scans are even even higher. Alright, so basically I'm kind of like honing in on the one or two that are the most interesting not interested in stocks under $1 so those ones are off the list and so W 80 T was the first one up. so W ATT right here you can see the pre market kind of consolidation.

just around six dollars and I wasn't I Wasn't sure this was gonna be an easy one to trade. I've traded it before with a 24 million share float. it's a little more thickly traded then we might prefer. The pre market high was 619.

it was started consolidating here. It did have a headline which was good. The price is fine. daily resistance.

Not really anything there and right out of the gates. You know it ends up squeezing right up through six all the way up to six, thirty six dollars, and thirty four cents. So it ended up making a kind of nice move right out of the gates, but it gave it right back and ended up going red versus the open. And then it does a red to green move and squeezes right back up to 640 and as you can see you know kind of kept grinding up so you know that's nice to see that move.

but for me I ended up missing it and I'm not gonna be too disappointed about that, you know. Overall I think it was a little choppy with these doji candles and the red candles mixed in so no trades on that one. next one down BT AI Now this one was kind of funny because it was on the scanners here but pre market it had basically no volume so I wasn't really the serious about it I just sort of was like oh you know, okay here's a stock moving up but you know let's just see what it looks like out of the gate. So I really it wasn't even on my watch list.

the bell rings and it ends up squeezing as you can see right here from 350 right up to 4 bucks it just took right off so that's where I was like okay this thing is moving I'm interested I believe it was on my scanners no well no maybe not quite until it was over for but a couple people called it in the room and so I took a look at it, saw it moving up and it was like okay you know this is something for me to take a peek at so as it starts squeezing up I Took a starter at 79 and added at 95 partial fill at 79. I got a partial fill at 83. These orders did not fill at all and then I sold it 409 and 412 and for 13. So this was like a thousand dollars of profit in this trade.

but the problem was that it was moving so fast I couldn't even really get filled very easily. Most of these orders didn't fill at all, so kind of got a starter and then it ends up squeezing up here to a high of 88. I didn't really chase it up there I Took one more trade on it at 75 and that trade was anticipating the first. Actually, it was as it was curling up right here.

Let me pull this back and kind of show you really where this was at. I Took another trade right here 75 consolidation. It pops up there 290 and then it sells off. but I made another like I don't know 500 bucks on that one I think the first trade was 1100 and the second was about 500.

so in it for out. at 410 it popped up to 439 but dropped back down to 4 to 383 so it didn't hold up very well. Then it ends up ripping back up to 455 for 88. It goes without me.

it pulls back I Didn't really know if it was gonna hold here I Kind of actually had a short bias with a stop at 505 or 510 but had short sale restriction so that means you can't get as a market order. you've got to get in on an uptick which I don't like so I didn't take a short on it. it did end up fading here, curling back up and then I bought right here thinking it might retest $5 but it didn't So in total, you know I made 1,600 bucks on this one. It wasn't a home run, but you know a green trade nonetheless.

so I'm fine with that. So those were the BT AI trades and then I had one trade on a DI L In the middle of that, this one on a DI L was anticipating the first five-minute Campbell make a new high which was right here I jumped in at 39, 42 and 48. Pretty much you know right all at the same time as it started to squeeze up. So on the 5 minute I was watching right here for this break over 46.

It's a little consolidation on the 1 minute 5 minute setup I jump in, it pops up to 56 I sell half of it up there and then I sold the rest as it broke below 45 and the rest was actually a pretty big position of what was it. Sell order 73 hundred shares I sold it 44 so on that one I was holding you know 7,500 shares for a few minutes. I Guess for about let's see um about 5 minutes waiting for this to break out here on this little flag. I Thought it would break and go up to the highs retest 67 which was high a day that did not end up happening and so I ended up stopping out at the bottom of the flag.

but I made two hundred and seven dollars on it and another you know. Green Day 8 1881 dollars is certainly a good day. I Can feel happy and you know good about that, so mark it in the calendar, make it official. Alright, today is Thursday 1881 dollars and 10 cents.

It is the two hundred and thirty fifth day of the year and it is my 1, 2, 3, 4, 1 see 1, 2, 3, 4, 5 fifth consecutive Green Day This month I've had re-read days and two four six, eight, ten, twelve, Thirteen green days. So looks like sixteen days of trading. Thirteen green days, Three red days. I'm okay with that.

I'm up right around 21,000 on the month. This has not been the most exciting month for me, no doubt about it, it's been a little slow. it's you know, in terms of my top months of the year, this one's still at the eighth best month of the year. so you know, not in really, really good shape there.

But it was enough to get me over the half-million dollar mark. I'm now sitting with about a hundred and sixty three thousand dollars between me and the 1 million dollar mark, the 1 million dollar mark. in the account that I started just about two years ago January 1st 2017 I was six hundred bucks just under. So you know.

first goal of 2019 is to cross over the million dollar mark. So one hundred Sixty thousand dollars that could take me as little as two months or as much as three or four months. You know you just or even six months. I mean you just.

you never know. It depends on what kind of market we have next year, but that's the first goal. Cross over that line. that big line in the sand.

Second goal for 2019 is to trade more in my IRA account. Light speed is just finalizing turning on settlement margin in the IRA accounts. So the way settlement margin will work is even though. And so remember in this account, I've got to us our twenty three thousand Five Hundred Ninety-two dollars.

So that's the balance in this IRA account right now on. January First, I'm going to be able to put in another six thousand dollars which will be my 2019 contribution. So as of January 2nd, I'll have twenty nine thousand, Five hundred dollars in this account and I'll be above the PDT level now. one settlement margin is turned on.

I will be able to day trade with that twenty nine thousand dollars as much as I want. I could take one hundred 50 trades in one day. However, I will only have $29,000 in buying power I don't have margin I don't have leverage but the trades will settle immediately. So I'm gonna be the first account that they set up with settlement margin and they want me to test it and make sure it works.

Hopefully it works and I don't have any mistakes but they have been doing everything on the back end to make sure the trades get accounted correctly and bla bla bla. So I will be the the guinea pig and hopefully I end up having you know a good a good run there. So I want to trade more in the IRA because the reality is the $500,000 of profit this year - I guess fifteen thousand that was in this account. you know? I'm gonna have to pay income tax on that at a 39 percent federal income tax bracket and a like six percent state income tax bracket.

so you know, but taxes are what they are now I've already been paying into it all year long. and for people that are like oh man, you made half a million dollars, but you have to give you know 40% of it back to the government, Man, is it even worth it? Well, it's the same tax you would pay if you were making half a million dollars at a nine-to-five job working 40 hours a week. It's not any more than that, so it's still half a million dollars a year. It's just that It's getting taxed as income.

you know? And and and that's just the way it is. So you know, is it? I Mean you just can't I don't know We? you know, we can't really get that bent out of shape about it. However, you have these tax deferred accounts which are you know, the government sponsored in way of encouraging you to save for your retirement. And so the IRA is great because it's tax-free the gains are totally tax-free So next year if I make half a million dollars and I make it all in the IRA guess what? it will all stay there I don't have to pay tax on it, so that's a big incentive for me.

Now on the other hand, you know I'm gonna take out a hundred and sixty thousand dollars or so from this account here. The current balance is 208 thousand dollars. so I'll probably take out 175,000 and some of that's gonna go towards taxes and some it's gonna go towards. you know, paying bills and everything like that.

Now you know. So it's nice to be able to take money out to pay bills and to buy stuff and things like that. So I'll probably trade in both accounts. but in 2019 I Want my focus to be more on the IRA you know, just to you know, just to build it up there.

All right? So no, well, maybe it is in in Canada but no, you're totally allowed to actively trade in an IRA account in the United States that's why these brokers have accounts set up so you can do it. I mean they wouldn't do it if you weren't allowed to. So yeah, you can actively trade your IRA your 401 K whatever you want. you know.

and if you outperform the market, that's great. If you underperform the market, you know if I lose the money. well you know that's on me. so it goes both ways.

The only thing you can't do is you can't trade on leverage and you cannot short stocks. so there are some limitations there. but other than that, you can. You can trade as much as you want in the IRA So anyways, that's about it for me here today to to trades.

in fact, Ptai I guess was right off the Gap scanner. excuse me but I didn't I really wasn't even looking at a pre market. It didn't have enough volume for me to be that serious about it. So you know I suppose I could have gotten in earlier if I'd really noticed it, but you know that's okay.

I'm happy with the trades I took on it. It wasn't a homerun stock anyways, but you know, another base hit and that's a nice way to. kind of. You know, finish up the year a couple more base hits so we'll try to do it again tomorrow.

Finish up the week with another Green Day and then we'll be back at it on Monday Monday Morning is a half day so be trading probably from my house I Don't know if I'll come down in the office here, but I'll see how I feel I don't know, play by ear. but yep, that'll be half day on Monday and then markets closed on Tuesday for New Year's Eve and then we back at it. Wednesday what is that gonna be? January 3rd no Wednesday January 2nd and yeah, I've already got my calendar ready so I'm excited to start filling this out. You know these calendars are, you know it's it's fun to flip through them and kind of look at what a year it's been.

Some big green days, some big red days some days where I was ready to throw my laptop out the window and other days where I was ready to walk my laptop down the aisle. So ups and downs, but finishing the year in really good shape. So anyway, so we back at it first thing tomorrow morning. Hope you guys have a great afternoon and I'll see you in the morning.

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