$18k in 30 minutes with this Day Trading Strategy

what's up everyone all right so in this episode we're going to go over the anatomy of a trade and the stock we're going to look at is w-e-t-g w-e-t-g today made a 160 percent move it is a recent reverse split and it had a i news so the combination of recent reverse split and AI news was enough to send this thing up 160 percent I finished the morning up over 18 000 just this morning trading wetg so this is a stock that's definitely worth looking at in a little bit more detail so what we're going to do is I'm going to start from the very beginning and kind of walk you through uh when I saw the stock what I initially kind of my gut reaction the second I saw it and what I want to try to do is slow down all of that to help you better understand why I took the trade because what can happen when I'm live trading and some of you guys who are watching while I was live Trading it can happen so quickly all of a sudden out of nowhere a stock starts squeezing up and it's like boom boom boom boom next thing you know I'm up by 10 15 000 and it's like whoa whoa wait where did that come from how did you know there's so many questions so what we're going to do in this episode is we're gonna really dissect this trade we're gonna go over the anatomy of the trade we're going to slow it down we're gonna go back to the very beginning when the news came out all right so let's go to screen share let's take a look at this so this morning at 8 30 and 7 Seconds wetg hits my scanner at 9.89 now when it first hit the scanner the very first thing that I saw number one the scanner that it hit is the up ten percent in less than 10 minutes which which is a scan that tells me a stock is moving quickly so I have an audio alert turned on for this scanner uh in fact it's kind of funny my dog when he hears that scanner he like lifts his ears up because he knows if I'm not in front of my computer I'm going to be running to my computer and he better move out of the way because I'm going to be moving quick so I hear the scanner I'm already sitting here so I pull up wetg I pull up the ticker and I already know the stock so how do I already know the stock well you know we have such a large trading community that people are mentioning stocks all the time and this is a stock that a bunch of Traders were talking about uh towards the end of last week because it was conducting a reverse split so for those that don't know about reverse splits this is something I talk about extensively in our classes there I have a whole setup that's dedicated to um trading reverse split so you go under um products and check out the warrior Pro you can check out my trading classes and you can see the curriculum there but basically um reverse splits are a very common occurrence with small cap companies so these lower price companies they struggle often to keep their stock price over a dollar a share and that's a problem because there's a minimum listing requirement to keep your stock above a dollar so NASDAQ Nic American the American Exchange they will de-list a stock and tell them to go to the OTC market if they can't keep their price above a dollar so short of being a better company that's more profitable the only thing they can do is a reverse split and so companies do this all the time now IPO let's say ten dollars a share they'll IPO 10 million shares and then what ends up happening and they'll just do the Whiteboard here just so you can see the math a little bit better so we get IPO um ten dollars um and it's 10 million shares so this would be a 100 million dollar uh 100 million dollars that this company has raised um through this IPO all right so the stock ends up declining in price it goes all the way down to you know let's just say for easy easy math it goes down to 20 cents a share all right that's a problem it's below one dollar cut off so what the company decides to do is a reverse split so let's say in this case they say well let's do a ten to one reverse split so we currently have a 10 million share float and we're priced at 20 cents the next day the stock resumes after the ten to one split and it's at two dollars a share and the float is uh one million shares so the market cap doesn't change with a reverse split but what does change is the price and the flow so in the case of wet g w e t g they did a 185 to 1 reverse split and they just did it on Friday so you can see here this was a huge reverse split 185 to 1 but that's what they needed to do to get their stock back up not just over a dollar but well over a dollar all right so they do the reverse split now that has an effect on the flow so you see the float here's list is 62 million shares well if you go into the filings and you check the filings you actually will see here um so this was this is a little bit older this was as of November 2022 they had 195 million share float so you go through the filings and you get into a little bit more detail but what you'll realize is that as a result of this reverse split the adjusted float is now actually like a I think it's even less than one million shares so now is a very small float okay so I was already familiar with the stock ticker wet G because they had just done a reverse split people were mentioning it but that didn't give me any reason to trade it on Friday or Monday or Tuesday because it you know it there wasn't any setup on it and then at 8 30 today what happens news so we have our news desk here uh that drops the headline and I can pull it up right here so the news is um we trade group launch large-scale language processing models to increase production applications to the field of artificial intelligence keyword buzzword that's a hot word right now right so all of a sudden what happens the stock starts to squeeze up so it goes basically almost immediately from you know nine dollars eight nine dollars up to 12. now I saw it right in here and you know what I honestly thought I was like uh volume is a little light it was only like I don't know 25 000 shares of volume I was like I don't know volume's a little light and the spreads are a little big that combination of light volume with bigger spreads that can be a recipe for disaster that doesn't always play out well for me so I I didn't take a trade I was just like oh let's just watch let's see what happens because look if it's really strong we'll have more opportunities right no reason to chase it patience now for those of you that don't know I just um I just got back today is my first day back in my office I've been trading my traveling trading station for the last 10 days I flew to Colorado with my five-year-old son and we picked up a sprinter camper van and we drove it all the way back if you've ever done a road trip with a five-year-old a 20 plus hour road trip you know how important patience can be so I pride myself in being a patient person most of the time and I am pretty good with my patients when it comes to trading so yesterday for instance I was trading in Lancaster County Pennsylvania with my starlink all set up uh and I didn't see anything that looked good so I didn't end up taking any trades and I was like that's okay you know some days there's just nothing there patience today all of a sudden I see something that looks good I'm willing to strike I'm ready to step up to the plate patience is super important so I said all right I see it squeezing up but I don't have fomo right now the volume is a little light the spreads are kind of big let's just see what it can do okay so it ends up um going a little higher up to 12 and I was like ah shoot that was nice okay so I ended up missing a trade which I considered but talked myself out of from 11 to 12 right there that was called a micro pullback so I didn't take that first trade uh but then it pulls back a little bit more pulls back a little bit more and watch right here okay so it's going to pull back just a little bit more and that's going to curl back up and right here it breaks through 12. that's where I broke the ice with my first trade now lightspeed's not really great with their charts which is why I don't use them for charts we have our own charts here these are the warrior charts these are available for students who are using this platform at Warrior trading but in any case my first trade was right here uh just before it broke through 12. so that was my first trade took profit got back in got out you can see I just trade the whole move up I never know how high a stock is going to go some people would say Ross can't believe you sold you know right here for 900 a profit you should have held that whole position for you know 10 points could have would have showed it you never know how high something is going to go and I'll tell you guys my perspective on trading is a little bit different than some people I trade from a perspective of I'm trying to make money every single day mentally I'm trying to make money to pay bills because that's how I learned how to trade that's what it was like for me when I was getting started I wanted to make 100 200 a day to pay some bills so as soon as I was up 100 200 I take it off the table and then look if another setup forms I'll get back in so even though today I I've been incredibly fortunate to make over 10 million dollars trading and I don't really I could just let it roll I still have that mentality that I need to take a profit off the table and this is something I talk about a lot with the um you know Financial Independence retire early sort of uh philosophy and how you can apply that to trading because really to me trading like one or two hours a day kind of is retirement so if you can get your 100 or 200 a day and then you know you can go enjoy the rest of the day that's pretty much retired and that's like making fifty to a hundred thousand dollars a year in retirement like that's phenomenal most of the people who do the fire movement of you know Financial Independence retire early they try to save up like one million dollars so they can pull out four percent a year right that's forty thousand dollars a year so now they've got like thirty three thousand dollars a month they can use to pay their bills well geez if I have a thirty thousand dollar trading account and I can make 200 a day trading in one to two hours that's the equivalent of having a million dollars and drop drawing four percent out so like I kind of look at it as being a similar way of achieving the same anyway so so that's just to give you some insight there for those that aren't familiar so anyways my first trade is at this Arrow right here for the break of 12. and I jumped into that trade so let me just go back so um I bought 4 000 shares there I bought two thousand at 11.71 and I added another 2 000 at 11.97 and as it broke through 12 I took 3 000 off the table at uh 12 and 13 cents so this is a for me like just a standard kind of base hit get in get green start to build a cushion and then once I've got a cushion built up you know let's see what it can do all right so this is a one minute micro pullback sorry this is on a 10 second chart right here so it's a 10 second micro pullback right there uh under 12. so I got in right down here and then took profit through this level and the thing Spikes all the way up to 13 I was like whoa wow okay this is showing that it has a willingness and an ability to move now for those that aren't familiar there's a couple different criteria that I look at to consider taking a trade uh the reverse split isn't a criteria for trading uh it's nice to have it but um I look for a couple things number one I look for a stock to be up at least uh 10 now there's no question that this check the box I look for a stock to have relative volume five times or higher so now let's just double check this um when the stock first popped up it might not have quite met that criteria um no it it did it did actually even though the total volume was light as you can see so the total volume was light but it was so the total the relative volume was 2.28 when it first hit so already the relative volume was pretty high and by the time I would have taken that first trade at 12 the relative volume was six okay so in fact check we got the relative volume so I want to see it's up 10 I want to see relative volume is five times or higher I would typically like to see news right and this one had the news and to make it better it had a buzzword buzzword which in this case was ai ai stock so that's terrific that's what you like to see then we like to see I prefer price between 2 and 20. check and then I like to see float of under 10 million I mean I don't mind trading a little higher but you know 20 million under 20 million is fine but in any case this one was 1 million so check so we had 1 million we had price of uh 12 to start it did get a little more expensive towards the end we had the AI news we had the relative volume which started at six and went up from there and we were already up uh 35 or almost 40 percent when I took my first trade okay so these are my sort of five criteria for considering a trade these are my minimums and this is how wet G stacked up against that all right so it meets them uh fairly well it's very very well I would say all right so uh so we first get this move here and I'm gonna stay on the 10 second chart just because even though this is a short time frame it's a very fast time frame it's helpful for you guys so you can visualize micro pullbacks all right so let's see um all right so that was my first trade then it goes back it goes up here and it pulls back and I take another trade uh I bought the dip uh it pulls back to this uh sort of blue line here that I draw drew between uh this candle and that candle all right so I got back in at 12 34. this was a 2 000 shared dip trade and I added 2 000 shares at 12.59 and I was anticipating the Breakthrough 13. we ended up hitting a high on this candle of uh just under 13 and then we broke through 13. so just like that nice trade not bad I added at 13 sorry 12.96 I took profit at 13.21. we hit a high here of 13.30 not bad at all what's the next trade what would you guess the next trade again as it pulls back to this blue ascending support line I'm adding back another 2 000 uh sorry this time I did 1500 shares a little smaller size reducing risk a little bit but I added another 1500 so I got up to 3 000 shares instead of where I would have been at four thousand I felt like it was getting a little extended I wanted to manage my risk so it goes a little higher here up to 13.45. it's a little resistance at the half dollar it drops down at this point I kind of thought all right maybe this is done it dips down here and I did start looking for dips so this was at um 58 858 so let's see I got a dip trade at 1307 which was a nice dip trade right down here about uh with a 10 cent stop 12.97 and it ends up giving us a nice move here surprisingly good but I started with 1500 shares at 1307 I added another 1500 at 13.14 I had another 1500 at 13.49. so 4 500 shares and now I'm taking profit as it goes up through 14. again like you can't really complain about that that's a really nice trade now at this point the blue ascending support line I didn't know how valid it was we broke below it we came back above it oops um yeah there we go uh so I I was I had that line drawn and it did seem like we were kind of up against it here so as we continued into pre-market we get you know 9 A.M so by 9 A.M right at 9am I'm up 7 500 so I've already had just in this range here 7 500 a profit that's not bad all right so it's holding up well it dips down and then look at this move right here a bounce off 14 right there so let's see my next trade was um let me look so my next trade I took a trade at um at 902 I got in 1500 shares at 1443 that was at 902. uh that gave us uh the move up towards 15. uh added at 1504. so a starter 14.50 approximately adding at 15. average is 14.75 on that candle it ends up squeezing up through 1580. that's great then it pulls back and I add again right here through 15 70 15 60 and it curls up again bought this dip now it feels like this blue ascending support line is kind of back in play we get a really nice dip off it here and move up to 17. then a little bit of a bigger pullback to 1580. so this was around 9 9 10 in the morning so around 9 10 we sort of uh I did a dip trade here where I bought a thousand shares at 15 uh 94. I sold it at 1611 and I was like I don't know it double bottoms here I didn't take that double bottom trade it comes down to Triple bottom I tried and did not get filled on this triple bottom and then right here I said okay you know what the uh 1650 level I'm concerned that we're gonna see a rejection off that level why because right now we're zoomed in on the 10 second chart but we've got to pull back and look at the five minute chart for a second so the five minute chart was showing us at that time that we were really extended all right so we were extended we were well off of our moving averages so I was like I don't know I I'm a little concerned about a rejection here all right so Watch What Happens so it starts to pop up and it flushes down all right so it comes up to right here and it flushes down it hits a low down there and I let's see so this was at uh 9 17. so let me just zoom forward so I ended up um buying at 16.84 as it curls back up here and I was looking to ride the momentum through high of day I bought a thousand shares one thousand not a big position but you know I was like let's let's see what this thing wants to do add another thousand shares at 16.90 it breaks through 17 and goes to 17.50 and just like that that's 50 cents a share I added it 1758 and 1766 now I'm looking for the move up to 18. and look at how this pulls away right here so this was the beginning of a really a parabolic move it started to really open up now the only problem for me and although I did make ten thousand dollars on this leg of the move I felt that I had to reduce my risk a bit because the price was getting higher the spreads were getting bigger and I was concerned about having that final trade you know you buy high sell higher buy high sell higher and then you have that final trade that burns you and if you keep adding more and more size it can be it can be bad so on this trade right here this was this was I suppose the most disappointing trade of the day in a way because on this trade I added for the Breakthrough 2050. and on this candle it spikes up over a dollar a share and I tried to take some profit but I didn't get filled I filled maybe I don't know 500 shares of the 4 000 plus that I was holding I might have even had five thousand so I had a nice position and I ended up stopping out flat right here so then it drops down it comes back up again and look it does it even more dramatically so this time I got back in right here for the retest and I was able to lock up some profit but I was still holding 800 shares into that drop and I lost a thousand dollars on that flush right there and at this point I was kind of like I don't know guys this is starting to get a little risky so my last trade on it uh was a dip trade on the resumption of the halt I added at um let's see it was 19 and 1875 and then I took profit at about 1915 and I was like you know what I think I'm I think I'm good on this so you know the thing is this had this really nasty flush here and it had this kind of rejection here and it halted up at the open but I didn't want to trade it because it was concerned about volatility of the open and then we got the open higher and halt down the bounce wasn't very big it holds up again then it halts down right so now it's just starting to get a little too choppy and I just say you know what I think it's fair to say that we had on this one the front side of the move which began uh early at 8 30 and which I traded from about 8 45 up until this level but this whip in these two candles and then this halt down that really marked the top and that was the everything here was the front of the move and everything here so far has been the back of the move so it's still holding up uh relatively well it's up 76 percent that's not bad I'm sure there's people that have traded it much longer into the day than than I did and some may have made more and some may have given back profit but one of the things that's important that I always think about is making sure I'm walking away walking away sooner quitting sooner before you have a close call before you potentially give back half your profit because on a trade like this where you have halts down and gapping lower or where you have those kind of whips they're like two or three dollars a share you know with four or five thousand shares it wouldn't take much to lose eight or ten thousand so I feel like I certainly could have made a lot more on this had I traded it a little bit differently a little bit better but at the same time green is good I'm grateful for the gains that I got I always try to study these charts and ask myself how I can do better next time so if I see it almost the same pattern tomorrow how can I trade it a little bit better and if you're trying to always strive to be better I think that you're you're doing the right thing so this has been the anatomy of a trade on wetg eighteen thousand five hundred thirty eight dollars and nine cents really solid action like not totally perfect a little issue with some spreads I had some issues with some of my orders not filling but all in all we got some good action got green I certainly got green I saw a number of people saying that they had done really well on it which is great to see and hopefully this is a helpful lesson for you that you can take and apply in your trading to help you trade the next one a little bit better so thank you guys as always for tuning in I'll remind you as always of my disclaimer that trading is risky my results are not typical there's no guarantee you'll find success whether you trade on your own you'll learn from me so take it slow practice in a simulator before you put real money on the line and I'll see you for the next episode real soon