All right. We just had one of our first IPOs of the year and the price action was impressive. Chinese IPO The stock opens at 10. By the end of the day it hit a low of under $2 a share.

That's an 80% drop in one day. This is not good. All right. So what happened with this stock? Well the company did initial public offering, they sold about 2.5 million shares onto the market, an Insider was selling about 650,000 shares.

So that person Cashing Out CH ching and then the company sold an additional like 1.9 million shares or so to basically just to raise capital for the company. The problem is what we keep seeing happen is these Chinese companies are coming to the public markets in the US where I feel like us Traders and US investors are dumb I'm going to be honest. You know what it is. It's like how an unattractive man in the UK can come to the US and they're attractive because the accent it changes everything right? Okay, it's the same thing that's happening with these Chinese companies that are iping in the US market.

They're not. Most of them are not attractive companies, they're not very good, but us investors are like oh, it's Chinese And you know there's been this hype on Chinese stocks and all of a sudden they get bid up to crazy levels. So this company ipoed at $10 a share. Now the balance sheet.

If you looked at the financials, you'd see they're not good. Now that's true with a lot of small cap companies though and some of them still go higher because people speculate what they'll be worth in a few years. So ultimately I don't read too deeply into you know the balance sheet in the financials because they can be bad, but a company can continous see its stock price go up. But specifically with these Chinese stocks.

One of the things that we have noticed is that a number number of them have ipoed, a number of them have sold off. They they will. They almost all sell off about 80% at some point. The problem is some of them go from $10 to 20, to 40, to 60, to 80 to 100 to 150 all the way to 500 before selling off.

How does a company go to $500 a share? Especially these low float companies? Well, the float is very important here. It's because the float for a lot of these companies is locked up. There are a very small handful of people that control the majority of the shares. and you know I I'm going to speculate here.

But what I speculate is that there's some funny business going on with some of these stocks. Everyone's been talking about it for a long time. So when you have a very small percentage of people that control the float and when they own shares at pennies per share, then if they want to employ a little bit of capital to bid up the stock to buy more, you know it's like they're already in at one penny. Let's just say with a million shares, so that let's say they want, they'll say you know what? Let's buy 200,000 shares at $10 a share.

whatever it is. so they buy a couple hundred, shares if that that 200,000 shares of Market orders that could send a stock like some of these that are very thinly traded with a very very small float that sends it from 20 to 30 to 40. and then next thing you know, you've got more. Traders Jumping on the momentum because there's opportunity and so what we had happen on this stock.

Roma Just as a as the latest example, I Don't know the the structure of who owns, um, the majority of the shares or anything like that. it's it's Al It's always speculative because we we ultimately don't know, um, a lot of the information that would give us more conviction and understanding why this could happen. Um I I will say that there were shares available to short on this, which is not super common for day one of an IPO Usually day one does not have shares available to trade, but this did so. it first opens at 10 and just halts down.

Then it opens and halts up once twice, hits a high of just under 12 and then sells off to eight rallies. Back up a little bit and then hits Vwap and just starts rolling over. comes back up again, halts up, opens lower, rolls over again, and after hours. Well, this hit a low of about a dollar 86.

So this was a really serious selloff. This was not pretty I didn't trade it. Uh, my rule of thumb right now is to you know, get in, get green, get out and not overstay my welcome. So I didn't trade this this I didn't even IPO and well I guess IPO at about 1045.

so it was just after I left yesterday so no trades on it for me. But you know the thing is these Chinese stocks. um, you know there there can be a lot of potential in them. We had, um ZJ yl back on the scans today.

Let me pull it up: ZJ yl Oops Got typo that ZJ yl this is another Chinese IPO somewhat recent. um, and this thing went from you know $25 a share to 500, right? And clearly there was opportunity in that it's just I Guess how do you manage your risk as a retail? Trader What I think is frustrating is the way that the US market is kind of being used just for these companies to cash out and most of them We end up seeing their stock price declines substantially. Following you know these: Peaks HKD last year, uh, was a really big one. Uh, this one hit a high.

What was the high on this one? It was like $2,000 a share. It was insane. So this went to the moon. It's now at four bucks so it's down 99% right? Right in terms of year, over-ear or whatever from that.

Peak Um, and and that's kind of. The problem is we keep seeing these stocks are making big moves. but you know they don't hold up. So as a as a retail Trader as an active Trader You can't get married to any of them.

You can trade them as you'd like. You can get in, get out, get in, get out. but you have to cut your losses very quickly. Do not overstay your welcome on these and be really careful shorting them because with so much with such a small float and with a potentially being controlled by a small group of people that are in heavy, you know these stocks can get pushed around and all of a sudden in one day they can drop 80% or they can go up 80 or 100% It doesn't have to be on news, so trade with the trend.

but be very cautious trading against the trend and be very cautious holding as it's moving against you. Okay, so anyway, so I just wanted to talk. uh, begin this recap by talking about that price action yesterday on um Roma because it was just ridiculous I mean honestly I didn't have any I was kind of like I wonder how it'll do but I didn't expect anything exciting. Day one has not been the day I usually do.

well on IPOs I do a little bit better on the recent IPO breakout. so like a little bit later when it curls back up. so I wasn't really interested in trading it that much on day one anyways. but uh, it still was tough to watch.

So today, uh is a red day for me. I'm down $1,200 $1,299 and you know I gave today a rating of a two. Early on it just was not happening. It was really, really choppy.

My first trade of the day was on Nvn and I lost 500 bucks on it. That was a pre-market at about 7 a.m. so at 7 A.m. Nvn pops up.

Um, it was the leading gapper at the time. It had a pre-market high of a little over $4 uh and so I was like okay, like you know this is uh, this is interesting you. we've got this nice pre-market High Here we pull back, we were consolidating right above Vwap and so I actually got in at about uh 350. so like right in here I got in, it was inside one of these 1 minute candles for the dip and I was looking for the curl through 365 and then 7585 $4 Etc Anyways, didn't work, lost 500 bucks on it.

Um, you know, not the end of the world, just whatever started the day in the red. $400 I wouldn't consider that trade a mistake I wouldn't consider it necessarily a bad trade I kept my risk tight. It's just a trade that didn't work out. Why didn't it work out that? I'm not really sure.

Uh, the float was pretty low. the stock is a somewhat recent IPO you know I thought that this had a bit more uh potential in it I I really did? I was sort of I was sort of surprised that it uh, stalled out the way it did, but it became very thickly traded pretty fast so sellers were quick to sell and short and there weren't enough buyers feeling confident to trade it so it didn't I guess go higher I don't know maybe there was some Insider selling I'm not sure. So then CM Andd comes up on the scans and that becomes the leading gapper. So when it became the leading gapper I switched my focus to CM Andd and on my first trade I made $500 on it.

Uh, let's see, my first trade was right here. Getting in, it popped up, pulled back and as it came back through the high I Took my first trade right here at around 260 or 250 Got A Squeeze up to 310 only made 500 on it. smaller share size. um ends up pulling back, false breakout, a little bit of chop kind of go sideways and then I didn't get back in through this area.

sort of grinding I was like I don't know I don't really like this. It became thickly traded as well, but at this flat top. I took this trade so I got in right here and that's where I made uh the 1500 the additional 1500. that put me up about 2,000 on the day on it, so up just under 2,000 on the day on this one.

Uh and then I took this trade on bets and I went from up 2,000 or up 1,500 on the day to down about 1,500 on the day. So bets, you know this one. People have been talking about this because it was a penny stock. super super cheap and then they just a did a 1,00 to One reverse split which is insane it was.

It's really kind of crazy. So they did this huge split and it pops here from Seven all the way up to 9. As you can see so as it's popping up I'm like whoa obviously huge move. This is impressive.

um you know I'm going to I'm going to jump in so I jumped in at $850 at the half dollar with a thousand shares not even big size. it goes to nine and then it flushes down here to like 8. you know 13 I was like whoa I averaged down on it I had another 000. it s goes sideways here for a second and I'm like okay, what are we going to do? are we going to curl back up Nope we Dro back down right here and I had to sell I lost 2,000 bucks on that I tried to get back in right here coming back up over eight and I lost on it again and I actually had three trades on it.

um in my big account I think I might have had a trade here as well. All three were losers so I lost 2,000 or so on the first and then like 150 and 150 small losses on the second two trades. but at that point I was like all right, three red trades on this stock. Man, it is not happening for me I'm going to just call it done on that stock so that was the right move.

Um, but anyways, I CH I did Chase it I got in at a half dollar at the same time. These are the types of stocks that can make big moves. so I mean I'm I don't know, it's tough I should have probably waited for a more defined pullback. Uh, but it was had just made this big big leap and sometimes when that happens, that's when we stocks go from.

you know, 7 to 8, to 10 to 12 to 14. It's like parabolic and the the best way to trade those for me has been getting in around half dollars and whole dollars. So anyways, I do not want to get married to the stock I cut the loss I move on. so whatever.

down 2,000 bucks. it's no big deal so that put me down uh 800 on the day and then on my final trade I took a trade on UK it was hitting the scanner coming back up right here I took the trade for the break through the high uh I was green on it but then it flushes back down and I sold for $500 loss. high volume on two red candles on that one. not good.

Interestingly, we did have some momentum on, um, sort of higher float stocks 106 million share float on this one, grinding quite a bit higher Some solid price action, but I was like ah I don't know, you know it's easy to borrow, it's on short sale restriction I don't know, you know I'm already read on the day I don't I don't know if I should go outside my wheelhouse and trade this same story on Sats. uh SATs higher price, a slightly higher float, easy to borrow. it goes from 12 to 18. a nice move but I was like uh I don't know, you know I don't have a cushion to kind of take a risk on this price stock so you know this is my first red day for 2024 and you know I was kind of hoping sometime between so I was down 800 going into the open and I was like okay I'm going to here uh and I was thinking well, maybe at some point at least I think it was by by 9:30 and then you know I was like all right Well let's just see you know I I was read uh, 200 yesterday at the open and then I finished the day up a TH or whatever So I was like let's just see what happens.

maybe there'll be some opportunities. Got that one trade on UK lost another 400 so now I'm down 1,200 I'm like uh, okay, I'm kind of moving in the wrong direction I hit a high of 1500 green now I'm 1,200 red, where should I stop You know I I'm not at my Max loss so I certainly could keep trading but should I keep trading? So I raided today is a two. Early on I was like yes, we have some low float stocks that are moving cmnd NV ni or whatever it was so yeah, but they're not great. they're kind of grinding I'm not really up that much I'm not feeling it.

so today feels like a two again. it's kind of a slow day. Bets came up. yes it made a big move if you were in early and some people were, there was some great opportunity but very small window and then it kind of faded so that didn't re you know that? sort of reaffirmed that we were only at a two and so is today the day that I should try to dig deep and trade until like 4M No, it's not.

You know, it's really not so. I'm down 12200. You know on a day when it's hot I'll make that in half a second on a good trade. You know what I mean like I Really have to just say this I just have to put this aside and not get fixated on trying to make today a Green Day What I have to do is be okay with the fact that today is coming up short live with it, accept it fully that that's part of the system and come back.

continuing to follow the same rules tomorrow, and look tomorrow. we could have a stock that's top gapper that goes up 3 four 500% and I could make 15 grand and then yeah, like the 12200 who who cares? it's totally water under the bridge. But if I keep today and I go down 2500, 3500, 4500, 5500, 7500, 8,000 10,000 then it's like wow I dug myself a really deep hole on a day that at best how much opportunity did it really offer? You know what I mean like I want to push it on days where if I push it I could have a record-breaking day I don't see anything right now that could give me that kind of day Now record-breaking Maybe not in the whole whole career, but you know, maybe just for for the last like few months or something. and I just don't see anything today.

That gives me that So you know? Yes, I could try to focus on base hits, but you know UK was only supposed to be a base hit and I still lost 500 on it. And you know those second two trades on bets were only looking for base hits and I lost. You know, a couple hundred on those too. So it's easy to say oh, it's not that hard to make 1,200 bucks, but you know it is and I could incur a number of losses trying to do it.

So this is the fork in the road where I'm going to say, you know what? I'm going to walk away today. I'm going to just live with being red, not get B out of shape over it. It's I'm still green on the week. It's not a big deal, green on the month.

Of course it's like, let's just keep the loss really small. and hey, it's the first loss of 2024. Lose gracefully on it and come back tomorrow. And since I didn't spiral, I'm not going to be emotionally fueled because that's one of my big goals for this year is to not have those days where I spiral and you know any day you go from green to Red it starts to unravel.

Now it happened really quick today on one trade and then I took basically three more and went from- 800 to- 1200. So now I'm kind of capitulating. So all right, let's stop right here before I double the loss to NE -600 or you know, quadruple it to 3200. It's just not the day to push that hard.

So my uh solution for this is, uh, just simply to shut down my platform. So I'm going to close this down down 1200 red. look Also, you can see I'm red on four out of the five stocks I traded I Forgot to mention laes um this one I got in off the scanner at like $2 and it was another rejection. So yeah, just kind of like rejection after rejection after rejection.

You know, yes, our stocks hitting scans right now. sure, but they're on very light volume. you can't trade that am H You know it's just not really moving that much. it's very choppy and even on S something I Noticed on this were some pegged sell orders, some pegged um sellers.

So the way that works is um, oops, sorry wrong camera. Uh so the order is at the ask and uh, it stays at the ask. So if someone drops the ask down, the order moves automatically and so what happens is it was like a 60,000 share sell order and all of a sudden it's like it's just it sits on the ask and it just moves. Every time the ask moves down, it's automatically moving so it feels like someone's like pushing it down.

With that big order, they're just pressing it right down. So seeing those kind of orders I was just like, no, you know what? I'm out of here I'm I'm not I'm not going to touch that. All right. So that's my, um, that's going to be leading with some discipline today.

Closing it down and I don't want to look at charts or stocks or think about, uh, the market for the rest of the day. So I'll be back at it tomorrow. Clean, fresh, ready to have you know a good day. Hopefully trading the market that's right in front of me.

So today I was trading in a market that was like a two and yeah, I went red. But look, if you call it as a two at the beginning of the day, don't make that the biggest red day of the year. If you're going to have a big red day, have it on a day where if things worked, you had the potential to have one of the biggest green days of the year. That's the day to take that level of risk.

All right. Reminder: As always, trading is risky. My results aren't typical and there's no guarantee you'll find success whether you trade with me or you learn on your own. So take it slow, manage your rest by practicing in a simulator before you put real money on the line.

and don't try to blindly follow me or anyone else. Okay, I'll see you for my uh recap tomorrow.