Way, who's. This oh says, margin call what's up guys, it's been a very busy week in terms of the small caps we have these stocks like astc, cbli, whey and also a couple other low float names. That's running up so there's definitely a lot of plays on long side and short side and we'll be discussing that today, as well as all the low float squeezes and the traps that we've been seeing. So let's talk about the main play on tuesday, which are cbli.

So this is a stock that was very hot back in march and april during the the covet spike in the beginning of the pandemic. Um at the time they were, you know, trying to make some vaccine etc, and the same kind of they've been hearing a lot with these uh small cap pump news and that's why now, overall, i was more short biased on the stock, but knowing that this stock Has been spiked in the past before it's a low float runner, also the algos that we've been seeing before you have to be prepared that you know if a level starts holding which was around the 380s 390s level. You can see you know after the spike, at the open. We consolidated around this level, some volume coming and that's when they do the squeeze um squeeze from out of nowhere right.

It's a low float stock. This can really squeeze and it's the same kind of algos that we've been seeing and if you are short you must well you don't have to. But i did you have to trim your size and stop out, which is what i did. I took a decent size loss in the beginning, but it's following my plan and also you know: we've had this kind of price action happening the last couple of weeks, so you know i'm prepared for this always follow your stops, stop out um and reassess it's only Because i follow my stop and take that fat, two thousand three thousand dollars loss that i can reassess and re-short around the five dollars level right here.

This is how it works in trading. You have to be able to stop out and take the small loser first and reassess whether it's actually going to consolidate to go up higher or allow just one of those manipulation. On the algo side that we've been seeing a lot, you can either be extremely patient. Um and wait for this kind of squeeze to happen and then go in short or sell your lungs, but then basically you're anticipating it's going to happen, but this l goes doesn't show up in every single low float stock.

So if i had waited uh for this kind of move, i might miss some um, which is okay for some people, but for me um, this is the kind of setup i want to take advantage of, even if it means i have to lose a couple grand In the front side, that's okay! I follow my stops, no worries, so second stock from tuesday was jks, and this is the first time i ever made money on this stock because in the past i keep on taking these small paper cuts on the short side, because the daily is very extended. But it's been extended since 50 dollars, so it's not like i'm gon na keep on shorting on the way up all the way to ninety dollars. Pre-Market today on wednesday, but yesterday uh i made money on the long side. Um you see the consolidation.

I went in long trimmed some position on this breakdown, but after that broke that breakdown um got, you know, bought back up really quickly. I identified that with the price action sewed into the push and sold some more re-added back some um just for the final squeeze - and you know i didn't make it all the way to the top at 85, but i sold most of it at had a small Trailing position which didn't work out that well and it got stopped out break even on jks. So that was a long side yesterday and today was the day it dumped and i tried to long wet today, small size on the dips didn't work and of course today is the day i don't short and it sells off back to seventy dollars. You can't win them all guys now, it's wednesday and this stock wei wei is my favorite stock to trade, not because i made a lot of money on it.

In fact, i only made very small amounts of money on it, but it's my favorite because wait. Can i order a large pizza with two pepsis? Please wait. My wooden challenge margin call. So basically, this stock was actually halted after hours with a t1 hold, so news pending.

So you know, that's, that's! That's a different from um. The volatility hold news pending means that the company is going to need release some news updates, et cetera, and they had to hold the stock and they holded it and the stock at the open. Today, you know actually opened around pre-market and, of course it just tanked right. The news wasn't anything significant.

In fact, i think it was just the company saying that. Oh we don't know why the stock went up 400. Yesterday, whoops, you know this is like small cap manipulation to its finest. So you know basically trapped tons of shorts after hours yesterday and squeezed everyone out and today you know it just dropped like a rock.

You can see unhold it at 6, 11 and then tanked. All the way down to around four dollars i didn't chase, i waited for it to bounce. To previously closed, i had very very small position shorts because the locates were about 20 cents, so that's very expensive, so i didn't have a huge size um. So i shorted the previous day clothes added into it, and then we got a nice fade towards four dollars.

Um and i was out around three dollars: atrium faded even lower, but i didn't get involved with the re-shorts again until around afternoon when inspired to 350s. I just had the tiny scalp to 310s. I just like this stock because the ticker symbol sounds really funny, so the other hot stock today was astc. So this is a stock that i've traded many times in the past before they love to do these kind of pretty much a trap.

Dump on the lungs trap, more short and squeeze everyone out. So astc wasn't exactly the sort of low float algo squeeze that we saw on cbli. The price action was a lot different, everyone um very crowded on a long side, essentially after five dollars held and all the way to six dollars. So you know this is actually a long trap um.

So at the open you know we dipped a little bit. You know i was anticipating that the stock could squeeze. So this is different from cbli and the other few times i got squeezed this one. I actually.

I expected them to squeeze because this stock, like i talked about i've, traded it a few more times before in the past. They always like to spike at the open and do a secondary spike and then just dump on the lungs. So that's exactly what happened. I was more short, biased.

Obviously, but if you were long you know you can definitely long the same kind of dips that we talked about. You know 450s pre-micro lows held um. You can see spike at the open dip to that level held again. That's why i covered a partial size of my shorts um and then you can see after this dips 450s held and then we squeeze all the way to six dollars.

That's where you know, if you were long, you want to sell into the breakout and if you were short, that would be the perfect entry. So that's where i entered majority of my shorts got. Some smoke covers added back to my size and we got a very nice dump, all the way to 440s, and then you know i re-added some and then we just got. You know some very nice follow-through to the downside towards three dollars and you know, of course i didn't get to hold it throughout the day and then it just dumps and doing an atm offering from 320s all the way down to 230s.

So this is a kind of small cap manipulation. We've been seeing a lot. It's happened in the stock in the past before especially with the stock. So just be careful if you're a long one make sure you're loaning the front side, you're, not trying to pick bottoms and trying to force your trades on alongside the short side.

If you were trying to you know buy, i don't know like 320s and they offer the offering coming around one o'clock. Look at this rock pole, three dollars all the way down to you know two twenties. Sometimes the best play is just to avoid. If you're trying to long these kind of small cap stocks, so my biggest loser today was on pinterest and i was very frustrated with the stock at this time over, especially over here over the years as you mature as a trader you'll find certain emotional triggers that Will you know make you feel emotional in trading and it's gon na be different for everyone.

I don't get frustrated over small losses anymore, just because i know that you know i'm totally fine taking paper cuts like we talked about in the past few recap: videos. What triggers me is that if i'm positioned for a big trade like on pinterest, i know the stock was gon na reverse. You know this paper cut loss was totally fine in the beginning. That's not the issue here.

The issue is, if i'm positioned for a big squeeze, you know like the price action is telling me that we're going to get a major breakout um, which right here i loaned it here around 49 40s added some more sold some here, but this long i was Very proud about, i saw 50 dollars withholding. We can potentially see a breakout to 50, 40s and 50 50s. So that's what i added to full size. So i was really well positioned, for you know, at least you know another 50 cents move or above and keep in mind.

I've been long since you know 49 50s. My trigger is when i'm positioned for a big trade, and it does work in my favor and then it just suddenly turns, because this is a stock market. This this kind of stuff happens, and it turned so fast that it spiked to 4 50 43 and immediately rejected. So i didn't get to sell and you can see it's not even about the loss right because you know if you look at, i didn't lose that much even after this ad you know and i stopped out around 49 90s.

I was only down about 10 cents. 20 cents, it's not a big deal, it's not about the dollar amount loss. It's mostly about that. You know i was.

I was right and i was ready to make money on this breakout. I was right. I was positioned right. I had my stop set.

I think it's the fact that i would have made money, but you know i was so close to making money and then i got rug pulled. I think that was it. You know this is the trigger right. It's no longer about the small losses.

It's about the fact that i was right and then the market just slapped me in the face. So after this, i basically you know, stay for 10, more minutes. Um talked to a couple members in my chat room and i left to take a break, because i just need that emotional refresh to take a break. You know either to take a nap or just walk away from my trading computer, because had i stayed um to continue trading, maybe continue fighting the same stock.

I this is usually when i start losing a lot more money losing 500. It's okay, like it's not a big deal, but it's just that. I think it's also the ego. You know we all have in day trading and i definitely have that too.

So, i'm just you have to be very aware of what triggers you. It could be. You know maybe for you it could be because there's no locate or you know you got dumped down or you know you keep on taking small losers and averaging down et cetera you you can't you have to realize that the market's always right, you know you, you Are not right, i'm not right. It's the market.

That's always right, and the only thing you can really control is your own emotions and your risk management. I know it's very petty that i'm crying over this 50 cents when i've lost two dollars, three dollars or more but uh. You know this is just the small things that trigger me. Now i mean there's a reason that i have to live alone by myself right.

I wouldn't want anyone else to have to suffer living with me. One last trade. This trade in hindsight is going to sound, very boring now um tgc, so this one totally had that crazy, um squeeze elgo um playing out, and that's why you know i actually covered early right. If you, you can either take advantage of the algo or you wait for the elbow to show up squeeze jump on everyone else and you go in shorts, the back side, um, so there's definitely two ways to play this.

I was shorts already on with small size. I covered everything here identifying that they're holding their lows around 260s i covered and the stock just squeezed, and i was not involved. This is not like cbli or the other stocks. I was not involved.

I wait to show for it to show me that if it's actually gon na hold um the 390s or four dollars to go up higher or if it drops and rejected seven seven dollars, sorry four dollars hard, then that's why i want to go in and short, The bounces, so that's what happened. I waited for the drop um. Actually i think i hold it and then shorter. The bounce is after the unhold had a average about 290s and then we got a very nice selloff to 260s and 230s.

So the questions are both on shorts. With these hard to borrow stocks, you have to use premium brokers like cobra trading, which is the one i use. I also have an account for center point that also works as well they're a little bit more expensive, but you know it's good to have both. If you can you now brokers like interactive brokers, they would only have the large cap stocks to short, which is fine.

If you only play the large cap stocks, but these small cap low floats, they wouldn't have it. The other option is trade 0, which i have in account with, but they are ridiculously expensive, more expensive than cobra and the center point. So i only use as a backup i don't use that on a regular basis. Okay, if you have even more questions, feel free to leave them in the comment section below.

Thank you guys for watching. As always and i'll see you guys next time, hey guys thanks for watching, i hope you enjoyed the video and the bad jokes if you want to see more day trading content make sure to subscribe and follow me on twitter and instagram for more, if you'd like To trade with me daily and get my free weekend, watch list and trading journal make sure to check out the links below for more resources. Stay, green, stay, positive and i'll. See you guys next time,.