This Stock Went Up +479% In 1 Day!

what's up everyone all right so in this episode we're gonna do anatomy of the trade on admp we'll go over the stock went up uh hit a high of 400 oh gosh this this one made a really big move it was 479 479 today hit a high of 8.28. I didn't expect this uh I was able to trade it I made a bit of money on it but it was a unexpected so I think it's worth talking about this tray the anatomy of this trade and we can highlight during this episode kind of what is happening right now in the small cap Market because we're seeing a bit of a shift where we're certainly seeing more opportunities and I think this is something to pay attention to so admp this morning essentially it was a light volume Gap had a slight Gap I think um just a slight Gap pre-market not a big gap and at the open it squeezes up to 1.60 and then all of a sudden pops here from a dollar sixty to a dollar eighty a dollar ninety five it pulls back it breaks over two it goes to 210. and right in here it pulls away to its first halt at 244. so essentially going from 1.60 up to 244 very quickly all right so the characteristics of this stock this is a stock that has a relatively low float of 2 million shares it is certainly priced under 20 which makes it popular among retail Traders it is a somewhat recent reverse split there was a reverse split back here on May 22nd that was 70 to 1. that's a pretty big split it also has quite a lot of room uh or it did this morning up to its 200 moving average the 200 is at ten dollars and seven cents now this is a stock that um it's a pharmaceutical company which is fine um I I didn't see anything super exciting in the news headlines about it so I was a little bit surprised that it was popping up as much as it was but I think what we had here was a case of whatever is moving Traders are going to jump on it and that was uh you know we've seen that in the past few days we've seen a couple of really huge moves and a number of them have been on stocks that did a recent reverse split all right so in the case of admp it starts squeezing up right here and essentially it started hitting my scanners as it broke over two dollars and when I saw it breaking over two I was like man this thing is moving quick so I jumped in with a starter at two dollars and 30 cents which was like kind of right in here on this pullback and I was then looking for it to Halt up and it did halted up at 2.44 so this is a little bit of a hard uh setup for a lot of beginner Traders because you're like man this thing is just kind of like squeezing up I I don't really understand the entry here at two dollars and 30 cents so what I was looking at was the level two so I have my level two window up admp and I see that it breaks over two and I see 210 to 18 220 these candles here hits a high 226. it dips down we know it dips down because you can see the bottom of this candle wick so it dips down and then it comes back up and it breaks 26 and that's where I got in right there as it broke over 30. so I got a little bit of slippage on my entry it would have been nice if I'd filled right at 26 but I filled it 30. and then it hits a high of 36 and it pulls back for just a second again and then it goes through 36 and goes up to 40 and halts up at 44. so because this was a stock that was a somewhat recent reverse split with a very low float that was squeezing up I thought that Traders would jump on it because we've seen really good follow-through on these recent reverse split setups like yesterday on SNMP which went from 43 cents all the way up pre-market to over 14 a share so when you see a setup that's working you're going to be more inclined to jump on it quickly right now it's recent reverse splits and specs but in other markets it's IPOs or it's Chinese stocks or it's Pharmaceuticals so it's it's that kind of shifts you know what's hot right now but right now it's been reverse splits and so you know this is another reverse split here and I think what's worth commenting on here is that during the bear Market of 2022 so during the last year of being in a bear Market a lot of these small cap stocks dropped a lot and because they were dropping a lot a lot of them ended up doing secondary offerings to raise money so we were seeing a lot of offerings but because their stocks uh price got below a dollar a lot of these small caps did reverse splits so these reverse splits have resulted in there being a lot of stocks listed on the market with tiny floats and when you have a stock that has a really really low float like we have on aurc which isn't a reverse split but it's just an example of a low float stock you know this went from ten dollars basically to sixty dollars in two days or SNMP which was a reverse split in this case this went from you know 40 cents to over ten dollars a share up to 14 over 14. I mean this is an incredible move in terms of percentage moves you know this is just it's huge and I think we're going to be seeing more of them because of the number of stocks that have sold off so much and then have had to do reverse splits which has gotten their price above a dollar but has reduced their flow now we may see secondary offerings follow some of these moves that would be very common I would be surprised if we don't we won't see it on every single one but we will certainly see reverse splits and then secondary offerings that's a cycle the secondary offering diluting the value of the stock then the price goes down and then again another reverse split later this was the type of move that in 2016 I believe it was led to the short squeeze on d-r-y-s drys went from like five six dollars a share up to over a hundred and fifteen dollars a share which at the time was just insane it was like unheard of and that was because it had done a series of reverse splits and every time it did people shorted it and just it kept going lower and lower and lower so in a way by doing a reverse split it kept going back to like eight bucks and then people would short it back to 50 cents and go back to eight people short it back to 50 cents it kept happening again and again again because of the reverse split and secondary offering cycle and then it had one where it went to eight and then all of a sudden it goes to 12. it's up fifty percent of the day and now some of these people that are shorting it are getting forced to cover but the float is so tiny they're trying to buy but there aren't really very many Sellers and it goes to 16 and then it goes up to 20 to 25 to 30 35 40 45.50 and now it's just parabolic straight up so we've seen a bit of that in the last couple of weeks on recent reverse splits so these are stocks that have been beaten up for a while the bear Market didn't treat them well the company had to do a reverse split to get their price back above a dollar and the result is a very small float and when Traders start short sellers start to get squeezed out you could see some pretty dramatic moves so back to admp so on admp this morning uh it halts up on that first Halt and you know initially it was showing a 260 resumption and then it was like 265. and then it was 270 275 280. 290 3. 310 ended up resuming at three dollars and 13 cents which was a really strong resumption it dips and as it curls back up I bought the dip and now it goes into a second halt up at 376. it resumes higher it opens here at 4 30. it dips down I add it again on this curl as it comes back up but I'm adding smaller size like 1500 shares a thousand shares because buying something this extended when it was just at two dollars is very risky so you know I took some profit off the table and then I added back with smaller size and we ended up getting a high a day of 8.28 I'm not sure what my best exit was um let's see I see I filled 70 shares seven zero at 8.25 and I filled 35 shares at 791. so those were my two best exits small size it holds down ends up pulling back a bit it does try to curl right here to six and then flushes back down to under five so I don't want to overstay my welcome on these I got green today which is great this was one of these stocks where you got one two three almost three three halts up which is really good yesterday on SNMP I don't even know how many halts up you got this was crazy if we look at the intraday chart on it so again you know it starts to kind of it's they have the reverse split it starts to kind of move up and this one is a little bit confusing because this must the reverse split is um 30 to one this thing must have been like so cheap before the split anyways um so it holds up at two and then it opens and halts up and instantly at 243 opens and hauls up instantly 285 opens hauls up instantly at 343. this did let's see um this was how many halts was this so that was one two three four five six seven eight halts in a row going up that doesn't happen often but you know obviously there were some people that tried to short it somewhere in here early on and they got forced out and because it was halting so quickly they were probably struggling to cover their shares at market price the thing is it's you know when you've got these consolidation areas it's not necessarily hard to accumulate a position you've got consolidation you've got buyers on the bid sellers on the ask but then once it starts to pull away all of a sudden they can thin out really quickly and you know trying to cover thirty thousand shares when it's going up these candles each one had 17 000 shares of volume 20 000 shares of volume 23 000 shares of volume right so if you were accumulated a thirty thousand share short position on this at around a dollar fifty in this area well you know by the time it went to 250 you were down 30 grand 350 was 60 Grand I mean the the loss just added up you probably would have been down over well over a hundred thousand dollars if you just had to get forced out so yeah it's kind of crazy how fast that that could that can happen that can add up and then after hours it rips all the way up to 14 a share you could have been down over 300 Grand that's wild so of course that's the risk of Short Selling um but the good thing for long biased Traders is that every time you know people load up to the short side and you have these types of stocks you can get some explosive moves and those are opportunities for us to trade to the long side which I think is um less risky than trading to the short side so SNMP yesterday today we had ad MP what do we have tomorrow it seems like this is the cycle right now of reverse splits stocks that are recent reverse splits now that you know if you see a reverse split I saw one today taop I think it is um where was the split on this No Maybe not maybe it wasn't this one um you know there's going to be there's going to be some that obviously don't work out as well oce no this just had actual like regular news uh but again keep an eye on the reverse splits they're not all gonna go but you will certainly have some that do and when they start to take off I think that's the time to step up to the plate so I try to be cautious like something like this okay it's a reverse split so what do I do do I buy it here do I buy it right now well it's not doing anything right now it's not doing anything so I gotta wait for it to start to pull away so how am I going to know it's pulling away well that's what the scanners are for these scanners right here these were years in the making developing these scanners to look for opportunities to find them in real time so when a stock like admp starts to move I can see it and participate in that move that's the whole idea so we need these scanners these are so valuable in my trading I mean I I wouldn't I wouldn't be where I am if it weren't for using these scanners I mean seriously these things are just so helpful so admp um let's see it hit for the first time down here at like 187 and you know a 172 looks like was the first alert at 172. so you know I I didn't trade it when it first hit the scanner uh I saw it and I was like ah it's a little cheap I don't know I'm not sure about that it's a little cheap I I don't I don't think so and it wasn't like it was a reverse split yesterday so I didn't think that was really quite enough um so I was like nah I don't know I don't think it's I don't think it's worth it but look at this rejection see this again this is why you guys don't want to overstay your welcome learning to get green and get out that is such a skill learning to be okay with leaving money on the table you're gonna do one of two things every single day you're either gonna leave money on the table or you're going to give back profit it's up to you so I kind of have a rule of thumb that I trade as long as I can but if I give back ten percent off the top that's usually when I'm like okay time to slow down if I give back 20 I get very cautious and if I give back half I'm done so today just for instance I was up uh forty nine hundred dollars uh pre-market I think it was forty nine hundred four thousand nine hundred dollars pre-market and then I gave back 1500 on brsh I was up 400 on it and then lost you know 1100 1500 so I'm down 1100. so I was up at that point only thirty five hundred and I remember saying I have to be very careful here I don't want to give back too much more I knew that 2500 was my halfway point so I had like you know 900 left to risk and with that was approximately when I took um let's see now I can't remember actually exactly when I took the loss and when I started the trade on admp but in any case you know it was somewhere around there and then admp trades were what got me back up through four thousand forty five hundred five thousand and so on but I try to stick it out as long as I can I'm willing to give back a little profit because I feel like you're not fully maximizing until you've given a little back so that for me is sort of my way of knowing that I did the best I could on the day so I trade until I give back like 10 and then that's how I know I'm kind of like that's good again there's some days where I just walk away at my Hyatt day because you know I have to go or I just feel like whoa you know that was a close call and I just don't want to take any more trades or I start to feel emotionally fueled whatever the case is but for the most part I try to stick around until I give back a little bit so that's that's my solution uh but one of the things that I was thinking about in admp you know I was like man I had a really good entry down there at two dollars and thirty cents uh so when I was adding up here at 350 for the break of the half dollar right I was like I can't add 9 000 shares up here because then if I lose on it I'm going to be the guy who initially had a great cost basis but added way too much size and then went red so I sort of have to manage my share size and that's one of the biggest challenges with continuing to trade because if you took this trade here and you bought 10 000 shares of it then all of a sudden you could you could lose five grand or six grand easily so making sure as you continue trading in the day that you're managing your risk so you don't have an instance where in one trade you give back your whole morning and that's obviously easier said than done and the only way to prevent that 100 is to just stop trading completely but you can prevent that to a very large degree by becoming more mindful in your position sizing and more thoughtful about how you trade as you get further into the day so for me reducing share size and so on and so forth now again I I'll say there's always times that I've made exceptions to that in a really really hot Market you know where I've done so so well that I keep increasing size because I just things are just on fire it's really hot and you know that attitude would have paid well today and yesterday but it the market it's been hot but not consistently hot enough for me to have that level of confidence yet so I'm still being a little bit conservative and you know my job in my opinion is to be consistent so it's not to have you know the biggest Green Day necessarily followed by a big red day it's to try to be consistently green and that's over long long periods of time years and years a decade you know long periods of time so this is a marathon not a Sprint but you know part of the marathon no doubt is is learning when are the times within this race so to speak to try to you know make up some ground and really lean in and put the pedal to the metal and when is the time to pace yourself settle in and you know be willing to just jog through the rain for a while so to speak so anyways I hope this has been helpful anatomy of a trade on admp up at a peak 479 today reminders always trading is risky my results aren't typical and there's no guarantee you'll find success whether you're trading your own you'll learn from me so manage your risk take it slow and don't try to blindly follow me or anyone else