In today's episode, we're going to do a deep dive into how a stock is able to go up over 3,000% in one day. Here's the Chart Hoo: From less than $2 a share to over $50 a share. Now, whether you are a beginner, an intermediate, or an experienced Trader your goal should be to learn everything you possibly can about how this was able to occur. Because this is a pattern that is repeating itself in the market.

This is not even close to the first time I've seen a stock make a move like this and it won't be the last time. To exemplify the opportunity in this type of move, let me jump onto the Whiteboard. If you had bought a th000 shares at $2 that's a $2,000 investment. And if you had sold ,000 shares at $50 that's $50,000 of profit.

Minus your $2,000 investment, that's a $48,000 profit That is incredible. Now, imagine, if you had taken that trade with 10,000 shares, that's half a million dollar now. I'll concede no one's going to get the bottom to the top of a move that's picture perfect. That's not going to happen, but when you have a huge window of opportunity, even if you don't make the whole thing, if you make just a fraction of it, that's still a lot of profit.

And as active Traders that's what we're looking for. We're looking for volatility, We want to manage risk, and we want to walk away with consistent profits I Made money on hoo and I want to break down not just the trades I took on it, but I Really want to talk in more detail about how this was able to occur so that you're better prepared for the next time something like this begins to set up. I'm also going to give you a little bit of a game plan in this episode for the week ahead because after we have a big move like this, clearly it shows the markets are heating up and that means it's time to sort of adjust the dial and begin to get a little more aggressive and lean in to what may be the beginning of a hot streak in the market. Okay, so if we jump on the chart, we're going to see a stock that has a really incredible chart basically goes straight up and I think it's important to give a little bit of context to this move.

So I'm going to back out of the chart for just one second. You're going to see, uh, why don't we start purely with technicals and then we'll get into uh, some fundamentals because fundamentals are going to be important on this particular stock. So this is a chart as you can see where the stock has clearly been very volatile. In the past, it has made huge moves to the upside as you can see right here and it has retraced those moves as you can see right there there.

it's had a period of going sideways and then another breakout, a huge drop, and then right here on the chart you'll see the technical the s. That means there's a recent reverse split and the ratio of the split was 10:1 So that means it's going to show $100 back here. What? I Know about this stock without even having to look at. The fundamentals is that this was a special acquisition company.

Special acquisition companies always trade at exactly $10 until that company has merged in with the company that it's it's going to become publicly listed. So the way these special acquisition companies, um, work. They've been really popular in the last several years. Essentially, a publicly traded company is formed and investors buy shares of that company at $10 a share and they can buy as many shares as they want.

And then with all of the proceeds from people buying at $10 a share, the management of that company looks to acquire a company and bring it into the public space. So that's what happened when Dwac tried to is trying to merge right now with True Social. So Dwac is a special acquisition company. they're trying to merge with Tru Social Trump Donald Trump's Social Media company and so all of the original people who bought Dwac they didn't know what company it was going to get merged into and so they had a chance at the merger to either redeem their shares at $10 and say no, You know what? I don't want any part of this I'd rather not or they can stay in.

So so what often happens is right after the merger, there are redemptions and the stock usually does decline. And it it certainly did. In this case, it declined quite a bit. But then what also happens is we often see a rally.

And one of the reasons that we see a rally is because usually the total number of shares outstanding is very low. and partly that's because of the number of redemptions. And it's also partly just because of the initial special acquisition company how popular that one happened to be. So in this case the stock drops down and in 2023 in January Um, so you know, about a year ago it made this incredible rise, but it ends up selling off and it actually went down to a low of about 10 cents a share.

Now you may know this, but uh, if you don't to be listed on the New York Stock Exchange uh or the NASDAQ the stock price has to maintain a minimum of $1 a share. $1 a share is the minimum stock price. Now you're like, well, Ross wait a second. I See stocks that are trading at 10 15, 20 cents and they're NASDAQ listed stocks all the time.

And you're right, and those stocks in those moments are not technically in compliance. So at a at a certain point they will receive a letter of non-compliance and if they are not able to get their stock price back above $1 a share, the company can be delisted. If it's delisted from NASDAQ or NY New York Stock Exchange it'll move down to the over-the-counter Market the OTC market. and that's where the pink sheets are and stocks are in bankruptcy are and it's not really companies don't want that.

So what they tend to do is what's called a reverse split. So the stock in this case was trading at about 10 cents a share and they did a 10 uh to One reverse split. So when they did that, 10 to One reverse split the next day the stock opens. It's this amount times 10.

It opened at $1 a share. sorry $1 a share. The thing about this is that the total number of shares available also decreased by the ratio of the split. The reason this happens is because if you were holding 10,000 shares at 10 cents and you log in the next morning, you're like oh my gosh, it's trading at a dollar a share.

I'm up 10,000 bucks. But then you realize you're only holding a th000 shares. So the price goes up. The shares go down so the amount of value in the position is still 1,000 bucks.

It doesn't. it's unchanged. So the result here in this case is that when we look at the float, the total number of shares available to trade for most special acquisition is special acquisition companies, it's very low and in this case the float. is 950,000 shares.

It's less than a million shares. That's a very very low float. Okay, so this is laying sort of the the stage for just technical context. You've got a low float special acquisition company that did a recent reverse split.

You may also recall that in the past few weeks recent reverse splits have been very hot. We've had several stocks that have made Moves maybe not quite as big as this, but very big that have been. Um, that have been recent reverse splits. Okay, so on Hoo I Think we should probably start talking a little bit about the fundamentals of this company.

So what is this company? What does it do? Why is that important? Uh, maybe. One other note to add first is that the 200 moving average was right here at about $20 as you can see and once it was able to break over the high of certainly I would say this candle. Here, we really did have a lot of room with basically no resistance. and that's because of this incredibly unattractive red candle that occurred right here.

So on this particular day the stock this was was before the reverse split. so it's showing at $100 But remember, before the reverse split, this would have been $10 So on this day the stock dropped from $10 a share all the way to a dollar. Uh, A190 which is terrible. Or a dollar? Uh yeah yeah.

$1.95 This a terrible drop. Now you may be familiar with this because you're thinking, wait a second I Feel like I've seen drops like that? Yeah, there's one that that was that was a really similar one. Um, let's see what about. Oh, this one.

This one feels familiar too. Cctg. And what did these two stocks have in common? they were Chinese So it probably wouldn't surprise you to learn that Hoo is also Chinese and I Have said many times that trading Chinese stocks can be very risky. There's opportunity, but you've got to be careful.

You have to be especially careful because some of these Chinese stocks are being actively used as part of pump and dump schemes and I Don't know if that was the case with this one I Didn't hear anyone say that it was, but it's not impossible. It certainly was the case with um, Cctg the one I just showed you. But in any case, so um, so we look at the news here on this stock. It's a Chinese stock.

Um, let's see. so Microcloud Hologram through its subsidiaries is mainly engaged in holographic technology includes a holographic Solutions Holographic Technology services and um, they're located in China All right, so that's that's big picture of what this company does. Um, you know, without looking at the fundamentals of their balance sheet and you know what their cash flow looks like. What we know is that it's a it's a relatively small Chinese company and on Wednesday they had news which honestly didn't feel super significant.

It was uh, posted at about 5:20 A.m. it says um, you know, microcloud hologram a technology provider today announced that it planned to join the communications industry Association this is feels like such a throwaway headline like it's not, doesn't feel significant in any real meaningful way. Um, so I think a lot of people just didn't have a real strong opinion of it. They were like, well, their opinion was probably that this is a a silly headline.

the stocks probably not going to go up that much and that can be very dangerous, especially when you're dealing with a Chinese stock because we know that these things can do the unexpected. All right. So let's get in here to this area. So the stock begins trading uh, promptly at 5:20 A.m.

when the news comes out. So the news comes out and the stock does in fact pop up from about. Well, the low is $159 It goes all the way up to a high of $2.29 which is a pretty big big move. It ends up dropping back down to 180.

so initially showing this volatility, very light volume. a bit more volume comes in, pulls back. At this point it begins forming what I would say is sort of the first level of potentially ascending support and you could see how. Oops.

Um, I got to turn off my drawing tool so you could see how if we draw this. um let's see, connect the low of this candle right there. You can see how this sort of starts to um, show support. it comes up to 240, it sells off, it comes back up, it sells off.

and when we had here at about 240 250 initially was um what I was looking at as a flat top and I saw it and I thought to myself when I was looking at it 77. Whatever. this was right this time that you know this is a lower price stock and this price range usually isn't where I find a lot of success. It's not usually where I get big Winners it.

It's just just it. You know they just well how big is the breakout? It breaks 236 and it goes up to a high of 252. It's 15 cents a share. you know, even with 10,000 shares it's only, 1500 bucks.

It's just that by itself, right? There is not a very big move now. Obviously we know in hindsight how much it did continue to move, but this as a trade. If you got in here, it pops up and then sells off, goes back down. H It's nothing really that exciting.

Okay, so as we get closer to the open 8:30 we have this really big surge right here. which once again I didn't expect. All of a sudden it just pulls away on this candle and it goes from 260 280 to 3 all the way to 320. I Thought Wow, that was a pretty impressive move, but again, it retraced that move so the stock was already showing a little bit of choppiness.

you know that would pop up, but then pull back and I noticed that the level two was becoming thickly traded, especially after 8:30 and going into 9. So it ends up rallying back up from 3 to 350 and squeezing up to a high of nearly $4 a share. It drops back down here. And then we begin this period of sort of consolidation, which I can draw another little trend line right here.

So now we've got a little bit of descending resistance here against four and see at the open how we pop up and then flush. We sell off down to about 340 and then it rips up to 420 and then it drops to 340. again. At this point it kind of seemed dead and short sellers were beginning to take positions with stops at the highs.

They're like this thing is over, it's done, and that's when people were first caught by surprise. All of a sudden it squeezes up here and it halts up at 440. Now this is a classic red to Green move. It was pretty strong.

It ends up pushing higher to five, pulling back, going to 540, and then pulling back a little bit more. Now we have about a double top up at 540 right here. 550 540 it pulls back a little bit more. We can see that we're beginning to again form another degree of um, what I would say is ascending support.

So we've got some support in this level. and then it pushes through 540 and surges all the way up to 7. And this right here just in this area. This is some clean price action.

You know that's a nice breakout over 540 550. This is a really nice one minute micro pullback that goes up to a high of just under eight. A little choppy up here, kind of a flush. a pop.

A flush getting extended That makes sense. So typically what I do is I'll sort of Mark out. All right, Well, that's our high 819 and now all of a sudden whoa 819 breaks. it pushes up to nine and this thing is got some serious momentum.

and some of the early short sellers are really getting squeezed out because in this market for a long time for the last year, short sellers have had the habit of adding and adding and adding. Because yes, it gets a little extended, but then it comes back in. but this one is not coming back in. It is not letting those short sellers off the hook and in fact it even gives them sort of a moment of feeling like maybe they're in control.

It's starting to pull back. It seems like It's kind of done a jack knife candle right there, which for a lot of people is like sort of a kill. You know that's the end. The the move's done Done.

It kills the chart because you have this pop and then this nasty rejection and it's on higher red volume. but in this case it's able to Valley back up. It does another one of these candles up at 10 and then it pushes up again does an even bigger one at 1050. So shorts in these candles are trying to hold it back.

That's what I see here is that it pops up and shorts are slamming it. It pops up and shorts are slamming. It pops up and shorts are slamming it. This is them trying to exert control, but as you'll see, it ends up squeezing up a little bit higher.

It pushes up to 11 and it it's just not giving up. It's not dying, it's still holding. So now you have a problem. it's moving a little higher.

a little higher. We now have a high here of about $112 and to be honest as a momentum Trader to the long side: I Don't find this price action to be easy to trade. None of this for me is what I like to trade and I actually stopped trading it I I traded in the morning and I didn't trade or participate in this action I Don't like these candlesticks. Don't like trading this stuff because this is where you get chopped out when shorts are trying to bully a stock like this.

I just I leave it alone I I'm not interested in it so I made my money on it earlier and I left now. Uh, so I didn't participate in the move in the afternoon here and I didn't catch the move after hours. It's fairly rare that I would be trading after hours at this point. Um, anyway.

so but nonetheless, I can break down the chart for you so it goes up to Uh 1220 high and then all of a sudden what happens? What time is it? It's about 3:50 and this thing explodes and I can tell you exactly what happened right here. I can tell you exactly why that happened. Okay, so as we are getting close to the closing bell, what do Traders have to do? They have to rein in the amount of Leverage and margin that they're using overnight. When you're trading, you can only use two to one.

Leverage All right, so only two to one leverage. overnight. during the day, you can use 4 to one leverage. So what that means is that really at this? I mean you can use this leverage in the morning, but when you start getting near the close and so usually they'll say by 3:30 and certainly by you know, 350, you need to be unwinding your position.

Somebody was waiting to the very very last minute hoping they would not have to unwind their short position, hoping that the stock would start to roll over. but it didn't. It started to squeeze and they had no choice but to cover and at the close the volume was declining. We look at the volume earlier in the day.

If we look at this on, uh, a F minute chart, this is going to be very telling. You See, on the F minute chart, look at the decline in volume. So this is what the short sellers will do and this is a this is a rookie mistake and it I'm sure people, they're people who lost millions of dollars on this. I've seen it happen many times before.

so they accumulate the short position when it's at a lower price, and when it's trading on really, really high volume and as it's going higher, they're adding and adding and adding and adding, waiting for the stock to roll over. And I Understand that Hoo is a stock that on the daily chart does have a history of these dramatic drops. It's done it before. It's a Chinese stock.

I'm sure there's people that had really strong bias on it. They're like they looked at the balance. They're like it doesn't make sense that the stock is up this much. the news isn't even that good.

why is it up 500% etc etc. And you know that may all be true in the long run. but in the short run, Well, the market can be irrational and so volume declined and then now all of a sudden they need to cover their position and there's not the liquidity to do it. And so when they start buying 100, 200, 300, 400, 500,000 shares, they are sending the stock to the Moon.

That's essentially What's happen happening. This happened. Uh, I've seen it happen many times, but there was a time it happened and it got disclosed later that uh, the trader at the firm had accumulated an 800,000 share short position. that's a lot of zeros, 800,000 shares to the short side and the broker had to cover the position because the trader had a margin call.

So a margin call is when you have exceeded your total buying power and you're now going net negative. Your account is blown up, it's gone, and now the broker is just doing damage control. They're trying to mitigate how much they're going to be potentially losing while they try to get the money back from you, which may not ever happen if you're totally bankrupt and broke. So then that might have happened to someone on this move.

So at the close, all of a sudden, this person, and and most likely during this whole phase of this ramp up, this person is in a state of tilt. They are emotionally compromised. They are justifying why this stock is garbage. they're probably posting on Twitter This stock is garbage.

This stock is trash. This stock is belongs at a dollar a share. All they saying all these things. All these things.

but the stock keeps going higher and higher and higher. and their blood pressure is getting higher and higher. They getting more and more frustrated, more and more angry. and they might even be adding to positions.

And that's I I'm I'm telling you when you see these Jack knife candles. These jack knife candles. These knives right here. These are created when the stock starts to squeeze up and then somebody dumps like 50,000 shares as a market order or 100,000 shares.

This had a lot of volume, so it might have even been 200,000 shares. And when you do a 200,000 share, 300,000 share market sell order, it's going to flush the stock. and you know if you do that at just the right time, that could become the high of day. and then the stock just begins to unwind from there.

And so there they are with their 200,000 shares short and they're able to cover down here. down here. down here for a profit and that works and works and works until it doesn't And that's the problem with that strategy is that people go bankrupt with it. They will trade it until they lose all their money in one just Black Swan Event like this.

Okay so all of a sudden it's it's 350. We're coming into the close and this person is forced to cover. and the the B they you know and whether it was them individually covering or more like Al the market the the the clearing firm, their broker was stepping in for them and taking control of the account. They're like we've got to do damage control.

So it goes from $11 to $19 a share. You know, with $100,000 shares, that's a $900,000 loss. You're talking about a million dollars in the red just on that move. So this adds up really fast when you're talking about hundreds of thousands of shares.

There's no question that someone lost millions of dollars on this. So it ends up hitting a high of 20. It pulls back and then it goes again up through 20 and it pushes up to a high of 28. It pulls back again and then it pushes higher to 30.

It ends up pulling back one more time and actually you know, kind of dropping and I I Sort of thought. okay, maybe that's the peak of 30 and then it goes one more time all the way up here to 50. So you know this might have been one uh, seller who was getting out, one short seller who was getting out. or maybe they had to do it in batches.

you know I don't know it. this whole thing might have been caused by one Trader but it could have been one short seller getting out and then Longs saw sort of the opportunity and jumped on this move and some more. you know profit was made for Longs and and losses for short Sellers and then it kind of continued higher. So some of this I think probably this, no doubt was a Trader who blew up their short account I Couldn't say with as much certainty on this because in the case of other stocks, when it's one Trader who's just getting destroyed, it keeps going up until that Trader is completely out of the position and then it usually comes right back down.

It doesn't usually do this slow this like this huge push. it doesn't usually pull back and then go again. So I think this was probably that person getting blown out of the trade before the close and then it pulls back and then Traders just jumped in it because they're like wow, this thing's crazy and then at this time of day with lighter volume, you've just got this really this ability Perfect Storm for a stock to do something crazy. So it ends up peing at about $51 a share and then by the next morning it had softened and pulled back quite a lot.

it was back down to 22. you know, kind of. This was sort of that. Obviously this was the peak right up there and and then it had, uh, pulled back a lot from that level.

So and the next day it's pulling back even more. By this point that that Trader that their account's already gone, they're out and you know it's It sucks in a way because uh probably in a couple weeks it'll be lower than this price. but that's not the way it works. Unless you have the money to hold through the top of a move, you're going to get taken out of the position and that's what happened.

So uh, but you can see by the way some of these ascending support lines drawn from the first day come into play here and here, showing you how this level of technical analysis can really be valuable. Um, you know, looking forward. Okay so this was Hoo. This was a absolutely crazy move and then the next day we had have Hkit Now Hkit this one I was not as excited about.

um it did make a pretty impressive move. 800% from a dollar all the way up to $8 a share. You really can't complain about that. It's a solid move.

uh but before the market even opened at 9:30 a.m. we already had a couple of these knife candles and it was coming back in. So We had this one right here where the shorts were trying to bully it and I think the reason here was that the the main stock was hoo and now if hoo was continuing higher and was at $75 or $100 a share and and that would have put you know could have happened. but it didn't then this probably would have been at you know 15 or 20.

but because the main stock that this was sort of catching sympathy from was selling off um this one didn't go as high as it could have then s pops up and this one goes up 800% So we have a crazy move on this one. So this this one's insane. This one goes basically straight up from a do just over a dollar a share to 10 bucks huge amounts of opportunity. This is impressive, makes this huge move but it ends up coming back down quite a bit.

So nonetheless traded on the move up did well on it, didn't overstay my welcome uh too much. traded a little bit as it was coming back down. was looking for bounces but eventually was like okay I guess it's just weak uh and that one back and then on Friday We had uh inbs so you know just again it's like we are seeing these backtack moves. My guess is that there are some short sellers who blew up their entire accounts and are probably going to lose their you know, lose, lose their house and everything.

because when you have a margin a margin call if you were invested using leverage, not only is your account gone but the money that you were trading on Leverage which was borrowed from the broker. you're now in debt that amount of money and you got to pay it back to the broker. So my guess is that that that move on Hoo and then the subsequent moves on some of these other stocks have cleared out a number of short sellers. Then they're not in the market anymore.

They're going to be gone for a while until they can fund an account again and consider trying it again. So now you've got fewer short sellers in the market and the ones who are still here. They have, uh, a new respect for how crazy some of these stocks can be. Especially when you have a low float.

and certainly when it's a Chinese stock because these ones can be pretty wild. You know, eventually will we see another candle on Hoo that's giant red And it goes. You know, straight down to $2 It's very possible that we will. but again, in the meantime we got to trade the technicals and this is a problem the laot Traders have is they get too much of a fundamental bias.

They start saying these stocks have no reason to be at these prices and that's fine to say that. and I don't disagree with you that this doesn't match the valuation of the company. but you could also argue the same thing about Tesla You could argue the same thing about Nvidia if you want to. You could argue it about a lot of companies, but they can remain disconnected of Price to Book value or true value for a long time.

Either to the upside or the downside and so capitalize on the volatility. capitalize on the technicals of the chart. and don't get yourself you know too deep into a thinking Loop about how it couldn't shouldn't you know ever be at this price? Meanwhile, it's going higher and you're missing the whole thing. So that's just my opinion.

I'm going to trade the price action and as I said, I didn't trade into the close Um, that's not. that's not my schedule. um and now and look if if we were seeing this happening every day, I would I would change my schedule for sure, but this was an anomaly. It was a Black Swan kind of event.

the ones that I did well on uh this week I did well on S that was a move that was in the morning I did well on Inbs. you know that was a good one that was also sort of. During the typical time news comes out and we get the the move. the and you know shorts probably do better in this range too.

but when you have those ones like hoo that they're trying to knock it down, they're trying to kill it and it just won't die. That's when these all day Grinders can start to take off so that is definitely something to keep an eye out for. If we start seeing it more frequently then that may be caused to. you know, adjust the schedule a little bit and start considering.

uh, trading a little bit later into the day. Tenx was another one this week. um, you know, which put in a pretty strong move. This was earlier in the week before hoo, but it went from $10 up to $24 a share.

You know that was a $10,000 Green Day For me, this was a super solid move. It was fantastic, but did it reverse It reversed and it came back down nonetheless. I'm capitalizing on the volatility I'm actively trading it and on Holo you know I traded it early and I didn't really think at the time I I didn't you know I didn't I just was like No it's it's a grinder. it's thickly traded.

These ones can be tricky unless they pull away and they don't always pull away. sometimes they just sort of roll over that people give up. And so the question for me is opportunity cost Which in this case there was a large cost. But generally speaking, what I know about myself is that the longer I stay in the market I have diminishing returns and in addition to diminishing returns, you know these are hours in the market and this is profitability.

You know at a certain point I can actually go like net negative red. So the question is, when do you walk away? You know in your sort of profit, do you walk away here? Well, you could have made so much more so I usually try to walk away about here. it's after I've given back a little bit and if after I give back a little bit a stock ends up going bananas then I'm like, well, you know. Okay, I missed it but you know what? I'm still the guy who's walking away green and I pushed as hard as I could until I started to give a little bit back and that to me felt like the right time to walk away.

Something that I would encourage you guys to think about is um and I've I've said this several times. so I was just the book called quit By Annie Duke and in this book she writes about the tendency, uh, she's a a professional poker player, so not directly about stocks, but you could definitely apply it. She talks about the tendency to, uh, consider your decision good or bad solely based on the outcome. So I could say my decision to walk away was bad because the stock went up, but um, you know, or my decision to walk away was, you know? Well, so let's just stick with that.

My decision to walk away was bad because the stock went up and and the problem with doing that is you will get inconsistent results. Even when you're disciplined about following your rules, sometimes you're going to break your rules, You're going to trade all day, and you'll end up making money on something like this. You know and and you broke all your rules. You really shouldn't have kept trading.

and then when you make the money on it, you're thinking oh, you give yourself a Pat in the back I did a good job, but you didn't make a good decision. You made a bad decision, but you got lucky and you had a good outcome. Well, that's there's a degree of luck in the market. On the other hand, uh, you make what you think is the right decision to walk away and then something makes a huge move and then you're like, oh, I made the wrong decision and that's not the correct way to look at it.

So what you want to do is you want to try to isolate your decision that you made in that moment and ask yourself based on everything I knew in that moment about the way the stock was trading, my own P&l on the day, my own kind of mental heads space on the day and everything else did. I make the right call regardless of the outcome because you didn't know what the outcome would be When you made the decision right You, you had no way of knowing so it is totally useless to beat yourself up with. You know that hindsight bias of oh, if I had stayed, I would have made $10 million because that is also biased. You always will say if I had stayed I would have made money.

You're never going to say oh, if I had stayed I would have lost my whole account. but you could have done that as well. You could have been the person who impulsiv impulsively just slammed the order right here at 19 with your whole account and then it drops to $15 a share and you stop out. Now I know four points probably shouldn't blow up an account, but let's just say it did and then a second later it's up at 28.

Doesn't matter, your account's gone or you got in at 30. think it was going to go higher and then you're stopping out at 19 for a 10-point loss. You know that could be $100,000 loss depending on how much size you trade. So I just want to remind you and give you sort of that dose of wisdom that, um, don't beat yourself up if you miss this I missed it too and I'm not beating myself up over it at all.

and I just want to walk you through why that is. it's because I understand my decision to walk away. you know right here or whatever it was was based on everything I knew in that moment about where I was on the day and it was the right call. However, when I see moves like this I do want to adjust accordingly and that's why for the last couple days since this move, I have been more aggressive and that's why I'll continue to be more aggressive in the coming days because clearly the market is showing that it's heating up at at least a little bit.

This past week was probably the hottest week we've had in a couple of months since maybe 6. eight weeks, maybe longer. So that's great. and I'm going to try to lean in and be aggressive the second I start to see chop and something's not looking good I'm going to step back and slow down I always monitor.

you know my P&l My P&l for me is a pretty good reflection of obviously how I'm doing. So on a day where my P&l I might maybe up only2 or $3,000 I might be thinking okay, I'm making money here but I'm not like really in the zone. that's the type of day for me that I know I should just take that $23,000 off the table because when I'm not in the zone and I try to really fight it I usually just give back that profit and go flat or go red. You do that.

You know, 20 times 30 times in a year you're giving back 100,000 bucks. maybe more. So at the end of the year, it makes the difference if you can be disciplined. So know when to walk away and don't beat yourself up if you walk away and then something goes without you.

But take what you've learned from that pattern and apply it to the coming days. So when we see a stock that's starting to open up, or we see those kill candles where you know you're seeing someone obviously trying to bully the stock, but it's just not dying, Pay attention to that because that's when something something's happening and there's someone behind the scenes who's either buying it up or propping it up or whatever. We don't know what it is, but the stock is not dying and that's worth keeping an eye on, especially for those all day. Grinders But even still, we see it.

Uh, at times pre-market We've seen pre-market moves where stocks I've seen stocks go from $70 a share to $170 a share. $100 a share in, you know, 20 minutes. So you don't want to underestimate how incredibly volatile the market can be when it's hot and that volatility equals opportunity. but you got to be able to manage your risk so remind you.

As always, my results aren't typical. so manage your risk. Take it slow if you enjoyed this episode. I Hope you hit the thumbs up I Hope you subscribe to the channel and check out another episode that'll be posted right here that YouTube thinks you're going to love.

I've been in the middle of a small account challenge this week I Was trading uh, some penny stocks as part of that challenge. That was a lot of fun. That episode will be coming next week, so make sure you check out this episode and I'll see you for my recap on Monday afternoon. All right, See you then enjoy the rest of the weekend.