In today's episode, we're going to talk about stock Ticker VFS a small Vietnamese electric vehicle company that is currently operating at a loss and whose founder made 60 billion dollars overnight. That's right, this company ipo'd on the NASDAQ last week and hit a low of about 11 a share. The founder owns 2.3 billion shares and today the stock went up to over 40 dollars a share. an increase for him of over 60 billion dollars overnight.

Well that sure makes my trades seem very small. But I day traded it and knowing the ownership structure actually gave me a little bit more confidence to trade this stock. To the upside as it was squeezing from 18 to 20 to 25 to 30, 35 to 40 all the way up to 46 dollars a share. and we're gonna break it down in today's recap.

All right. So let's get started by looking at the five minute chart of VFS today. So this is our five minute chart for today and this is going to show you some really clean pullback opportunities. This first bull flag right here.

So you have four green candles, Three red candles. What happens when the first candle makes a new high? That right there is a possible entry. That is a really nice resolution which in this case gave us a move all the way up to 24 25 a share. It pulls back again, gives you a couple candles to pull back, and then what does it do next again, squeezes through the high.

So this is a stock that actually responded very nicely to technical analysis. The the cleanest setups were right here, right here and right here. This one, although I traded it was not as clean because it pulled back a bit more. It then kind of gave a surprise pop up, followed by a red candle, followed by a double top where it hits this resistance right up here.

and then it blew through that level and squeezed all the way up into a halt. Then it did a dip and rip on resumption which was right here and squeezed up to about 46 dollars a share just under 40 47. The high was 46.98 Wow, what a move! Now I will say that I like to trade these on the front side of the move I avoid the back side of the move so all of this area here is fair game from this point not interested. Now some people would be interested in trading this to the short side for a fade, maybe hoping for a fade back down towards the volume weight.

average price which is this orange line right here? That's fine, but what a lot of Traders end up doing is they end up missing the beginning of the move or just kind of starting to trade it towards the tail end and then losing on one of these big rejections and then over trading the back side of the move to try to recoup those losses and they end up losing more money, which is just a recipe for frustration. It's not the way to approach this, but let's talk about these first couple of patterns here. Why did these resolve so well? Something that you may have already learned and I've talked about this in other episodes is that both: Flags This is a bull flag. A very clean one.

Bull flags do not always work. Sometimes they work really well and then sometimes they don't work at all. So why was this a stock that they responded so nicely on? Why was this a stock worth trading? Well, this comes back to the fact that this was a recent IPO and it's also an IPO with a relatively small float. So low float.

IPOs are some of the stocks that historically have made the biggest moves. So in my Warrior Pro classes I of course, teach about both. Flags Flat top breakouts ABCD patterns All of the standard chart patterns, but I Also talk about a few of the daily setups that add juice to any intraday setup. and so daily pattern or daily setups.

Daily chart patterns include recent reverse splits, recent specs SPAC mergers, recent IPOs Blue Sky setups and um, this is actually an example of being both a Blue Sky setup and a recent IPO And then we've also had some experience with stocks that are foreign listed or just foreign companies. This is a Vietnamese company. Chinese Companies have been particularly volatile this year, so there's something to that now in this particular example. on VFS we had our IPO day last week August 15th.

So how do I even know about stocks that are IPR Well, number one, you can actually go, you know NASDAQ IPO calendar right here and I keep this up and I have it up I look at it all the time. It reminds me of course also about the football schedule and tells me to check out TD Ameritrade. But most importantly, really, the reason I go to this site is because it tells me about upcoming IPOs So this is the NASDAQ IPO calendar. All right.

So I checked that periodically. But what's even more helpful is the scanners. So on the day of the actual IPO last week, the stock IPOs and initially it, uh, it pops up just like a smidge. You can see right here it IPOs it pops up just a smidge and then it starts to pull back.

All right. it pulls back and then it squeezes back up and on that IPO day this actually had some pretty serious range. However, it was difficult to trade on the IPO day because these candles were so big you had light volume with big spreads. I Think a lot of us were hopeful that going into day two we would have continuation, but going into day two, it ended up just pulling back so we really did not have continuation and we can actually look at the entire uh chart history of this stock from when it first started trading.

So initially you get that squeeze, then it starts to sell off, sell off, sell off. and yesterday was a small Green Day that we actually were talking about it yesterday because I said it might be a good candidate for a first daily candle to make a new high over 19.68 That was yesterday, but what ended up happening yesterday is it didn't make that new high. We had a small green candle but it did not cross the trigger which would have been confirmation 1968. First candle to make a new high.

There's something psychological about that. uh, it's a stock that's going from stair stepping lower red candles to the first candle making a new high. That's the tide beginning to shift and that's when we often see a lot of buyers come in and we saw we sure saw it today I Much more than I expected. So this morning I'd have to scroll all the way back here.

it might take a little while. Um, but early this morning this hit my scanner as it popped up to I think it was 18.50 It was right here on this candle so this was where I first saw it right there. The nice thing about having stock scanners is that they help you find stocks that are moving now. Different people use different methods of finding stocks to trade.

Some people just be in, you know on Twitter or YouTube or you know, um, chat rooms, things like that. But in any case, these scanners alerted me that the stock was moving up and so from that point forward I was watching it and I was interested in it. We can look at the chart patterns and and we will do that in just a moment. I'll get the one minute chart up so we can get that dialed in.

but before we do, let's look at the ownership structure on this. So I go over to Bam sec and I pull up the ticker and Vin fast. Auto This is a Vietnamese company. So um, we know that we could scroll down here just a little bit.

Um, you know this. This will tell us some different things about the company. Vin Fast is a growth stage company with history of losses, negative cash flows from operating activities, and negative working capital expects to require significant additional Capital which expects to fund through additional debt, and Equity financing. So you know they're putting these things right out there.

This is this is the thing that companies will do. They have to be transparent. So they put these things out there in their filings. Uh, for investors, Uh, to read.

Now as a day trader, we don't always necessarily read all these filings because my, well gosh, my average trades are only about five minutes long. So given my average hold time is about five minutes, it doesn't really make sense to spend hours and hours reading about. You know all the fundamentals of a company. I can pull up my um, my metrics for you here.

these are not um, up to date with the last, um, the last few trading sessions, but uh, but this is uh, right here. So at a little over 12 million dollars, over 23 000 trades 69 Accuracy average hold time: five minutes, right? So you know this is and this is years and years of trading data. So I given that I have relatively short hold times I don't usually spend a lot of time looking through this, but um, before IPOs and for recent reverse splits I Like to check to see what the number of shares are. So um, if we look at this, the thing that um is true with a lot of these companies is that they have the number of shares that are available to trade.

and then there's the number of shares that are held by insiders, so they don't always. Well, typically they won't if they, if they allowed all of the shares to be available to trade, then someone could do a hostile takeover. You know, they buy up enough shares on the open market to be a 51 owner and now they're doing a takeover. If there's only 10 of all of the equity of the company available on the stock market, you would never be able to do a hostile takeover.

So in the case of this particular stock, what's interesting is that the founder right here. he owns just under 2.3 billion shares. So I did the math real quick. Google helped me out.

Um, 2.3 billion shares times 37 a share. which is the current price is 85 billion dollars. Now when it hit a high of Uh 46.98 he was worth, He owned 108 billion dollars of stock. NOW The reality is, um, this is It's a paper net worth because oh, by the way, those are my trades on BFS So this is a paper net worth because realistically, if he wanted to sell those shares, well, how much volume? There's only today.

Um, like 19 million shares of volume? There's There's certainly not Um 2.3 billion shares of volume. So it's a little bit deceptive because the fact is, even if he wanted to sell all of those shares, he wouldn't be able to. But in any case, on paper, his net worth uh, really went up big time overnight. So so that's something that's that's interesting with this company.

Uh, the fact that you've got essentially all of the shares Consolidated with with one person, and the fact that realistically, they're not going to be able to sell them easily on the open market because they have so so, so many. and the fact that the actual available number of shares to trade is quite low, so you end up having a float that's pretty locked up and that creates float rotation and that can create these really big exaggerated moves. So on. VFS if we go on to the one minute chart, uh I'll say that we've been in a pretty cold market.

so initially I was like I don't know guys, you know I I It was really hard for me to get uh interested in this because I just you pull it up. It's got light volume, you've got big spreads. It initially pops up right here from 18 up to a high of 19. uh well, 1946.

so you know you could have traded it right here. There was a trade on the break of 19 I saw some Traders mention that they took that trade. little scalp trade. it goes a little higher.

it pulls back at the open it did a red to Green went red, goes green and squeezes up again to about 1979. not a crazy move, it pulls back. but then when it broke that level, that was our first move that was really pretty clean. It squeezes up to a high of 21.

goes up to 2150 and in this area we were forming our first five minute pullback. So remember this is a one minute chart. So on the five minute chart you know every five candles uh creates one five minute candle. so you know approximately here and then first candle to make a new high was right here.

This surprised me because on this candle right here we actually went below the volume weighted average price and I thought you know as it held here I was like okay, we're good and then it dropped here and I thought no, we're not good and then it ripped right back up and I I think it might have caught maybe some short sellers. a little off guard there. It just was a funny spot but it caught long Traders off guard too. some long Traders chased it.

uh, over 22 got the squeeze up to 23. this was tough on a one minute pullback because it popped higher, dropped down, and then it went. another micro pullback right here. But then this pullback was even cleaner because this one didn't go below V-wap it was a nice steady Channel down it breaks to the upside.

it goes back up. You get a nice one minute pullback right here and it continued higher. The next pullback was right there and then this final one at 31 was right here before it squeezed up to a high of 34. this at the at that point I thought was the top of the move I was like okay I think that's the top because here we pulled back a bit more than I'd like.

We then came back up and in hindsight, this really was a cup and a handle formation right here. It's not perfect, but they're not always perfect and the fact is, this had enough things going for it that it was worth taking these trades. So for me, all of my trades were relatively quick scalp trades getting in at a half dollar taking profit as it squeeze through the next level. getting back into the next half dollar whole dollar taking profit, it went up to the next level.

It went up to a halt at Um 41 52. when it opened, it dipped down I bought on that resumption right down here. It squeezed up there almost immediately to 47 which was nice, but I took that position with small size. so not a big winner and that marked the top.

These two candles right here. the Big Green candle followed by the big red candle that is a it looks a little bit like a middle finger right? so you know it's kind of the that's the indicator and it's it's right there. It's very clear and that in fact was the high a day. um, going into basically 12 noon.

So you know in hindsight I felt a little um I felt a little frustrated in some ways that I didn't size up on this in a bigger way. I was trading with small size the whole time, but the reason was the liquidity was not great early on. Even right now if we look at the spreads, they're 20 cents 15 cents 30 cents. the spread being the difference between the bid price and the ask price that's a 50 Cent spread right there.

And the thing is, the spreads weren't any better this morning. they were 50 Cent 70 Cent spread I think when it first hit 18, it was like I don't know. Maybe it was 1880 on the ask and like 1812 on the bid. You know? So it was like a 70 Cent spread and that that's a tough spot to step in with like a 5 000 share order.

You know all of a sudden your unrealized negative: 80 cents a share. Now 500 share order is fine, but that's what I ended up doing smaller orders so you know, kind of just chipped away with some small trades on it. I Also had to trade with 250 shares where I lost two points. So I lost 500 bucks with 250 shares and I was like man, you know that that does Wipe Out A couple of those small little base hits and that is one of the downsides of being a breakout momentum.

Trader Buy high, Sell higher, Buy high, sell higher. The problem is that you'll have lots of small winners and then you you end up catching this one loss and it kind of wipes you out. So I've been pretty conservative these last two weeks or so. I've been feeling like the market was a little colder.

we did have VFS last Tuesday We also had another IPO last Tuesday but otherwise last week was really cold Now Tuesday was my best day of the week I think I finished up 6 000 last Tuesday uh but today I wasn't able to produce that level of profit because I didn't feel comfortable with the share size and then by the time it proved itself I was like I I can't take big share size up here. it's too extended. So right now my own trading is a little bit on the defense I'm not feeling really aggressive I'm not pushing it really hard I'm being a bit conservative, but what's really important for me and myself as a Trader is consistency trying to be consistent and you know, have minimizing loss and minimizing my risk. So that comes at a cost of losing some of the upside potential.

But I always say I'm okay with losing upside potential if I'm minimizing downside risk because if I had punched this for you know, 5 000 shares or something like that or even scaled into 5 000 shares, there were a number of of moments where I saw it go up and you'd even see it right here where it goes up and down 50 75 cents a share on very very light volume. So one of the and this is a blessing and a curse. On the one hand, it's good because when these stocks really start to squeeze, short sellers who might have accumulated big positions at a lower price are now going to struggle to cover when the prices are higher. and if they get forced to cover by their broker, they could incur a lot of slippage.

And that could actually create a true short squeeze where it's just rapid short covering, which creates almost parabolic, straight up price action. We had something like that on a Vtgn not that long ago, so at the end of this episode, I'll put a link to the VTA Vtgn video. This is a stock that went, uh, pre-market from two dollars to sixty dollars a share. It was insane.

And there's no question that there were some short sellers that got liquidated. Um, on that squeeze I Mean it was. It was pretty bananas, you know. But in any case, um, you never know when that might happen.

So on, uh, yeah, on. VFS I I Just unfortunately wasn't able to get confident punching those big orders. I was too concerned about slippage and I was trying to minimize my downside. So you know this is just part of the deal with trading through what's mostly right now.

A Colder Market One of the things that's tough with when it's cold is that you get these moments where there's something moving, but you're like a little gun shy and you don't fully maximize on it anyways. Green is good. Uh, my two thousand dollars pales in comparison to the 60 billion that the founder um made overnight, at least in paper value. Uh, I don't know if he's gonna find somebody that would be willing to, uh, loan him money and take his shares on collateral, but that might be his best chance of getting um, a little bit of money because the fact is, it would be hard to sell those shares on the open market and it would probably be hard to sell those shares to a sophisticated investor who would not value this company.

Uh, you know, as highly as the market is currently valuing it. So we do have a little bit of a um Divergence between probably the true value of the company and the current trading price, but these are opportunities that Traders like myself can capitalize on. So I hope you found this episode interesting as always I hope you subscribe the channel I Hope you hit the thumbs up. Share the episode with a couple of your friends and make sure you check out the next episode that I'll put a link to at the end on Vtgn and if you want to see an episode where I was really crushing it, you can watch me make 185 000 in three hours trading.

GameStop That was a pretty crazy day. I Guess this is a good moment to remind you that my results are not typical I've been trading for a long time so I encourage you to manage your risk in practice in the simulator before you put real money on the line and take it slow. I'll see you guys back here for the next episode first thing tomorrow morning. You have helped make this one of the most popular.

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