hey traders welcome back to another daily profit and loss recap on Friday May 12th I was able to
lock in a 1871 dollar profit with just one single stock in this video I'm going to talk about my
thought process behind the trades and explain to you why I bought and sold at the prices that I did
okay so without further Ado the one stock that I traded on Friday was spry spry was a big gap up
in pre-market again if you've been watching these videos you know that this is how I take most of my
trades I find stocks that are gapping up and then I look for that momentum to continue in Market
hours so in that sense spry was no different I posted over in the market Master group during
pre-market spry was one of my top watches for a gap and go this morning after two big sell-off
days and a short sale restriction today so I was looking for an opening range breakout to scout
that trade taking a look at the daily chart at the time we could see this is what I meant by a big
recent sell-off it was trading at over six dollars per share and then a couple days later it's all
the way down to a low of 3.99. so after that big sell-off and now that the stock was gapping up
there was simply a good chance that people that were short selling down here were going to get
caught in a little bit of a short squeeze on top of that being that it was short sale restricted
that just essentially means that short sellers are unable to drive the price down by selling at the
market so when they short sell they have to place an order above the current price in order for that
position to be executed and all of that kind of ties into a regular short squeeze and that's kind
of the thought process behind why I was looking at spry for a gap and go on Friday morning in the
first place now as far as the trades themselves go we had opening range breakout levels posted
of course on Friday like we do every morning and for spry the opening range breakout level
was 7.32 however before we even got that opening range Breakout level I posted that all of the dips
into the 6.50s have been bought up very quickly so far with spry and what I meant by that was
simply what we see here on this one minute chart all of these little dips down into the 6.50s come
straight back up and on top of that we see that there is a little bit of a double bottom forming
here in the 650s as well so I posted that and I got into a small position at the time basically
just expecting that this opening range breakout was going to happen so if we take a look at the
chart here we can see of course here following that move from the 650s we end up getting our
opening range breakout pushes back above vwap and it kind of just goes straight up from the
6.50s all the way up to a high of 9.65. now like I mentioned in a few of these videos before if
you're looking for the area to lock in profits on your trades this isn't going to work perfectly 100
of the time but it can give you a great idea of where a stock is likely going to reverse if you
take a look to the left of your chart and you look for past key levels of support or pass key levels
of resistance and what we see here if we go to the one minute chart just to give a clearer picture
we could see in pre-market the Eight dollar level on multiple different occasions was acting as a
level of resistance we just go ahead and draw this line here we could see one two three four and then
after it pulls back below again five separate times where the Eight dollar level was acting
as a bit of resistance on top of that the next key level I would say would probably be this high up
here which happens to be exactly at nine dollars so eight and nine dollars are potential levels
of resistance there's a good chance the stock is going to pull back from those levels and that is
the thought process that I had and that's why I started to lock in profits into these key levels
so my average was just under seven dollars and twenty cents per share I believe on my first
trade I should mention by the way that I took two separate trades in spry my first trade was with 2
000 shares and that's when I had a 7.20 average about and I sold a thousand of those shares up
into this Eight dollar resistance area and then I sold the other thousand up as it got closer to
the nine dollar resistance area so as always I left a little bit of profit on the table
here with this trade but that's always going to be the case you could never expect to buy
the exact bottom and sell it the exact top so I'm not disappointed with that and actually on that
trade itself I was able to make over two thousand dollars in profits so my second trade is where I
actually gave a little bit of those profits back as we can see here in the market Master group we
had some Traders locking in profits there was a really nice breakout obviously up into the nine
dollar area big shout out to Pilot Gary in the trading chat I know that this is I believe his
first week here in the group and he was able to make some money on this trade um he actually kind
of lucked out and sold at the exact top up there at 9.65 so that doesn't happen too often but it's
really cool to see and I'm glad to see our team of Traders making some money on these trades as
well but I mentioned somewhere in here that I was looking for potentially to get into a second trade
on a dip buy or on a pullback and I didn't really notify the chat that I was getting into this other
trade because I was much less confident in this one and because of that that's why I also took a 1
000 share position this second time around versus the original position that was 2
000 shares and that's really important if you're getting into a second trade that's not really a
setup that you trade as commonly and you already have some profits locked in that you don't want to
give back completely take a smaller position and maybe try to make a little little bit more on top
of that original trade but don't get greedy and think that you already have this big cushion of
profits that you can use because that's how you end up giving back all of your profits from the
previous trade with that being said I got into a smaller position here as it was consolidating
and trading sideways above the vwap my average there was in the 830s and basically this was
a pretty quick trade I didn't take a big loss on it obviously but I started to notice all of these
long upper Wicks coming in anytime it spiked up into the 850 area and I was just getting less and
less confident in this trade the longer that I Consolidated and the longer that it failed
to start bouncing back up that to me just told me that there is not really a lot of Demand on this
pullback and I was expecting it to start breaking down from there so I sold in the low eights I took
a couple hundred dollars in losses on that trade and sure enough it started to break below vwap
and for the most part kind of just traded sideways under eight dollars per share for
the rest of the afternoon there was another solid trade opportunity on Friday afternoon
from the trade plans that I just want to go over very quickly the trade plans for Pola on this
day were that there was no follow-through from Thursday morning's Gap up and there was a lot
of overhead Supply in the 160 to 170 range that I'll be using for a short opportunity on Friday
so essentially I was just looking for a short opportunity into this high volume area from the
volume profile to me when a stock recovers back into these areas there's a pretty low
risk of them breaking through and ramping up to new highs unless a ton of new volume comes into
these stocks so when you get those bounces back up into those levels it's a great opportunity a
lot of times to short sell to profit from them coming back down from those levels so that's
what I was looking for with Pola unfortunately I was not uh you know I wasn't paying too much
attention to it at the time that it did get up into that area so I did miss out on that short
opportunity but as we could see it peaked exactly in the 1.60s as expected and it pulled all the way
back into the 1.30s but anyway that was Friday's trading for me and that's a wrap on the first week
of me doing these daily profit and loss Recaps as you can see so far I've had five profitable days
doing these Recaps as much as I'd like to keep that momentum up I do want to say that there are
obviously a ton of lessons that can be learned from losses so just make sure to stay tuned keep
watching these videos obviously there are going to be times in the future where I have red days even
red weeks overall and I'll make sure to post videos on those days as well because there's
going to be a ton to learn from those losses but anyway if you enjoyed this video and you want to
hear about the socks that I'm trading real time and join us in our trading chat as well as get
access to our detailed trade plans watch our live custom scanner streams and get one on support to
help you become a better Trader make sure to join us in the market Master group you can get started
and try it out for 100 free and there's going to be a link Down Below in the description to
do so but anyway thank you again for watching I hope you enjoyed and good luck with your Trading
thank you