Big Momentum with $FOXO +774% and $BTCT +350%
Published: 2024-11-12
Status:
Available
|
Analyzed
Published: 2024-11-12
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Trading penny stocks below $1 can offer significant leverage due to the 1/100th of a penny spread, reducing the risk on large share quantities to minimal amounts like $10 for 100,000 shares.
"I have found that I don't usually make as much money trading these low price stocks and one of the reasons is because these lower price stocks when they trade below a dollar a share they trade down to the one100th of a penny so if you looked at the level two of some of these stocks they could trade something like this 81 cents but the one that's just down to to the penny down to the 1/100th of a penny could be uh 8115 and then it could be by the spread 8116 and so what ends up happening when you have such a tight spread of one/ 100th of a penny typically if you bought a stock like this you would say well let's just say you you wanted to buy1 ,000 shares if you bought a 100,000 shares of this stock typically if it was above a dollar your spread is 1 cent which means you're risking a th000 bucks if if it goes up or down even just a penny but right here down to the 1/100th of a penny you're risking only and this is kind of amazing you're actually only risking boom take away those zeros 1 100th of a penny so 1/100th here equals not $100 of risk but just $10 $10 of risk $10 of risk so you can get in this with huge size but not actually be really in theory risking that much"
Pending
A continuation setup in trading involves watching stocks that have made a move of over 100% and are holding near their highs, with the expectation that short sellers will be squeezed, forcing them to cover and driving the price higher.
"I have my scanner over here where I scan specifically for continuation and this is a continuation setup is when you have a stock that has made a really big move like over 100% And is continuing to hold those levels so when a stock makes a really big move and it's continuing to hold up near the high we watch that for pulling away and the thought here is that anyone who is short is going to start to get squeezed out and forced to cover and that's when things can get interesting"
Pending
Despite a green shooting star candlestick (indicating potential reversal), the speaker took a trade on Foxo at $1.10 for a break through the day's high, anticipating a potential halt up.
"this morning the shooting star was a green candle so not as bad as if it were a red candle but certainly it was a problem so I didn't take a trade there it pulls back and then at the open as it squeezes up right here it pulls away and I say you know what I'm going to break the ice on this I'm going to take a trade and I took my first trade right about here at A110 for the break through the highs I was looking for the break through the high of day and I I was hoping this might halt up"
Pending
Stocks under $0.75 closing price halt every 15 cents within 5 minutes of the reference price, which is the average of the last five candles. The reference price updates approximately every 30 seconds.
"stocks that are under 75 cents on the prior day close will halt How often every 15 cents and this isn't every time it goes up 15 cents but every time it goes up 15 cents in um less than 5 minutes from the the reference price so the way the reference price is established on a stock like this is we have um and I'll just grab my green marker here so we the price is moving up um so it moves up a little bit let's say it dips down I'm not going to do full candles you get the idea these are supposed to be candles and it moves up a little bit right here so the reference price for the halt is the average price over the last five candles so 1 2 3 4 5 average price equals sum divided by 5 reference is going to be about here so now for this stock to get halted it has to actually go up plus 15 cents plus 15 cents from the reference price so if the reference price is 88 cents here then it's not going to Halt until it hits a13 right it's got to go all the way up to that level to Halt and needs to do it quickly because if it moves slowly the reference price keeps updating how often every 30 seconds approximately so every 30 seconds the reference price is updating so in order for a stock to Halt up it needs to really pull away very quickly"
Pending
Once Foxo crosses the $1 threshold, the spread widens to one cent, significantly increasing risk for day traders, where a 5-cent drop on 100,000 shares can result in a $5,000 loss.
"I think to be honest at this point it's going to be a difficult stock to try to day trade because now that it's over a dollar a share you're stuck with one cent spread right you you can't trade for the hundredth of a penny or even the tenth of a penny you're doing a full one-cent spread so 100,000 shares all of a sudden it drops 5 cents you're down 5,000 bucks"
Pending
Trading stocks tied to cryptocurrency is generally avoided due to them acting as derivatives influenced by high-frequency trading algorithms that track Bitcoin's price, making their movement less independent compared to options.
"I don't usually like trading these types of derivatives um one of the other problems is that I feel like there are high frequency trading algorithms that are like actively calculating the price of Bitcoin as these are trading and sort of it it's just like there's a there's another level of algo involved it's not exactly the same as trading options but you know when you trade options They Don't Really vary Too Much from the value of the underlying asset in the sense that options don't usually go up a ton when the underlying asset isn't moving they they move to a certain extent in Tandem and that happens with a lot of these stocks are tied in with cryptocurrency"
Pending
A divergence of heavy volume selling with light volume buying on BTCT is seen as a potential trap for traders.
"notice the Divergence of heavy volume selling light volume buying this might be a trap"
Pending
The speaker executed two profitable trades on SYU, making $1,600 on the first by entering on a pullback and breakout, and further profits on a subsequent dip buy, totaling $2,243.51.
"as it first pops up right here it goes up to a high of um a188 right here it pulls back and as it pulls back I said all right it's we've got our first pullback right here and so I got in as it curled back up here it goes from a188 up to $1.95 up to 3 up to 35 boom I took that trade with 10,000 shares I got in I got out I locked up $1,600 of profit it then pulls back and I bought this dip down here and it pops back up to three I took that profit off the table and that was it those are the only trades I took on syu so I got two trades on SAU I didn't overstay my welcome both are green I'm up $2,243 51 on it"
Pending
A continuation trade on LEDs was initiated at $2, reaching $2.15 before a large sell order at $1.83 caused it to drop. Averaging down at $1.83 and exiting at $2 resulted in a net loss of $572.
"LEDs I took this trade um it didn't have news but it was a continuation setup and what's interesting about this is that all of a sudden it starts to pull away so I got in for the break of two it goes up to 2115 and then suddenly it slams down a big sell order goes through and the limit was a183 so what happened was someone sold probably 30 40,000 shares with a Aver with a limit order of a183 so what happened is it swept the price all the way down to $183 and then the remaining 20,000 shares was on the ask at 183 so what I ended up doing was averaging down on that trade at 183 it popped back up to two and I got out still for a loss of $572"
Pending
BTCT's strong halt up from $0.58 to $7.09, followed by a $25 resumption and then a decrease, suggests short sellers were trapped and forced to cover, indicating strong upward momentum.
"so we halted at 58 so resumption there right there look at that all the way up to 709 so you know what that tells me that tells me that some shorts got trapped on that because let's be real that doesn't really make sense it doesn't make sense but if some shorts got trapped then all of a sudden they're forced to cover so that's a very strong halt up and now holy smokes showing a $25 resumption a $10 1310 979 so resumption is coming back down it's still looking pretty nice 1010"
Pending
The resumption price for BTCT significantly dropped from an initial $8.60 to $7.15 and then $6.59, indicating a major shift in sentiment and potential panic selling from traders who bought in at higher levels like $7.09.
"now we're showing 760 the resumption is clearly coming down 755 so it's it's like it's funny because it's in a sense it's trading right now the price is moving but oh my gosh now 717 715 uhoh see I now I don't like the look of that not one bit that that is a major shift in sentiment from 860 initially 13 then 10 then 11 then 9 then 8 now 818 so what's going to happen on this resumption what do you think's going to happen well my guess and again this educated in tuition but my guess is if we be because of the weakness of coming from so high all the way back down that you're going to have people that just bail on resumption because there are some people that may have added as high as 709"
Pending
BTCT's second halt up, after a lower resumption and a dip-and-rip pattern, is unusual. The stock's ability to squeeze back up after opening lower and nearly halting down is considered a 'get out of jail free card' for momentum traders, but potentially frightening for short sellers.
"so technically right there when it popped over seven that that was a dip and rip that surprises me though it surprises me because usually you don't see a lower resumption and then a squeeze up after the second Halt and that barely halted up it barely halted up because it thinned out right before the halt so now we're back back to showing eight so that was that was a little bit of a bail that was like a get out of jail free card because this thing when they open lower like that typically Panic selling they flush they drop and they halt down so that's unusual it's good to see for momentum Traders but unusual and it's probably frightening for shorts because what I would expect shorts did was put out sell orders up against this level because if this had halted down then it gaps lower and unless it comes back to the high you're in the driver's seat on that short and now you're just going to let it unwind right so now all of a sudden it halted up a second time but how confident do you feel about being long into this halt after what it just did right that affects sentiment because you see it halt up and then it opens lower and almost looks like it's going to Halt down on that panic and then squeezes back up"
Pending
The speaker emphasizes the importance of making trading decisions for crypto-related stocks based on solid logical reasons rather than FOMO, especially when considering a sector shift.
"but I have to be thoughtful about that and not do it you know just in one day because I'm feeling fomo but do it because there's really a good logical reason so anyways that's it for me thanks as always for tuning in you guys and I'll see you back here first thing tomorrow morning for uh my live Brad which starts around 7:00 a.m. for all of our members at Warrior trading"
Pending
FOXO experienced over a billion shares of volume traded daily.
"this has been trading with over a billion shares of volume each day it's insane how much volume it trades with"
Pending
On its first day of significant trading, FOXO saw nearly a billion shares traded (939 million), followed by a drastic drop to 31 million shares on the subsequent day.
"on day one it traded a billion just under a billion shares of volume I'm rounding up a little bit it was 939 million the next day it traded only 31 million"
Pending
On its first day, FOXO surged from a low of approximately $0.15 to a high of $1.05, before reversing and falling to $0.36.
"it had this incredible move on day one all the way up to a high of one A1 five from a low of about 15 cents a share goes all the way up to a do five pulls all the way back down to 36 Cents"
Pending
The significant drop in trading volume for FOXO from 939 million shares on day one to 31 million shares on day two is noted as remarkable.
"this stock is is kind of incredible actually because on day one it traded a billion just under a billion shares of volume I'm rounding up a little bit it was 939 million the next day it traded only 31 million how is that even possible to trade that much volume and the next day to trade only 3% of the volume on the previous day"
Pending
The speaker entered a trade on FOXO at $1.10, anticipating a break through the day's high with the hope of a halt up.
"I took my first trade right about here at A110 for the break through the highs I was looking for the break through the high of day and I I was hoping this might halt up"
Pending
A trade on FOXO resulted in an 8-cent profit per share, which, when trading large volumes (50,000-100,000 shares), translates to a significant gain.
"it went up to a118 which was about about 10 8 cents a share for my entry I think I got in about do9 so it went up about 8 cents which isn't a huge um you know an 8 cent winner you're not something to really brag about but in the case of a lower price stock like this where you can easily buy 50,000 or 100,000 shares you know it does add up"
Pending
After pulling back, FOXO made a second attempt to break through its high, reaching just under $1.30.
"it pulls back here it dips down and then look at that second attempt back through the high all the way up now to just under a130"
Pending
The extremely high volume on FOXO indicates intense trading activity, described as a 'tug of war' between buyers and sellers.
"trading on super heavy volume and and look I like high volume but this is this is too high it's so thickly traded it's a tug of war it's a battle between the buyers and the sellers"
Pending
Stocks trading under $0.75 at the previous day's close are subject to trading halts every 15 cents if the move occurs within 5 minutes of the reference price.
"stocks that are under 75 cents on the prior day close will halt How often every 15 cents and this isn't every time it goes up 15 cents but every time it goes up 15 cents in less than 5 minutes from the the reference price"
Pending
The reference price used for determining trading halts is calculated as the average price over the preceding five candles.
"the reference price for the halt is the average price over the last five candles"
Pending
The reference price for trading halts is updated approximately every 30 seconds.
"the reference price keeps updating how often every 30 seconds approximately"
Pending
Despite an 84% increase and hitting a high of $1.30, FOXO was not halting due to insufficient speed of price movement.
"foxo it's now up 84% which is great it just hit a high of a130 but it's not pulling away fast enough to Halt"
Pending
Once FOXO surpassed $1 per share, the bid-ask spread widened to one cent, increasing the risk to $5,000 for a 5-cent drop on 100,000 shares.
"over a dollar a share you're stuck with one cent spread right you you can't trade for the hundredth of a penny or even the tenth of a penny you're doing a full one-cent spread so 100,000 shares all of a sudden it drops 5 cents you're down 5,000 bucks"
Pending
In the price range of $0.90 to $1.00, there are 1,000 possible increments due to the 1/100th of a penny spread.
"when you're down at 90 cents to a dollar because you have a 100 little increments here right because 100th of a penny time 10 cents is a thousand so you actually have 1,000 increments from 90 cents to a dollar"
Pending
BTCT is a stock in the cryptocurrency space, specifically BTC Digital, showing correlation with Bitcoin's price movements.
"it's crypto sympathy well it's a it's a stock or a company that is involved in the cryptocurrency space BTC digital and so it's moving up as Bitcoin is moving up they even have BTC in their ticker so and in the company name"
Pending
The speaker avoids trading crypto-sympathy stocks like BTCT due to their derivative nature and the involvement of high-frequency trading algorithms that track underlying crypto prices.
"I don't usually like trading these types of derivatives um one of the other problems is that I feel like there are high frequency trading algorithms that are like actively calculating the price of Bitcoin as these are trading and sort of it it's just like there's a there's another level of algo involved"
Pending
A divergence between heavy volume selling and light volume buying on BTCT suggests a potential trap for traders.
"notice the Divergence of heavy volume selling light volume buying this might be a trap"
Pending
The speaker made two profitable trades on SAU, locking in $1,600 from the first trade after it rallied from $1.88 to $1.95-$1.35, and then profited from a subsequent dip and rally.
"syu pops up and I said you know what I'm going to let it pop up and I'm going to see if it can hold this level so as it first pops up right here it goes up to a high of um a188 right here it pulls back and as it pulls back I said all right it's we've got our first pullback right here and so I got in as it curled back up here it goes from a188 up to $1.95 up to 3 up to 35 boom I took that trade with 10,000 shares I got in I got out I locked up $1,600 of profit"
Pending
The speaker completed two successful trades on SAU, resulting in a total profit of $2,243.51.
"I got two trades on SAU I didn't overstay my welcome both are green I'm up $2,243 51 on it"
Pending
A trade was initiated on LEDs based on a continuation setup, despite the absence of any specific news.
"LEDs I took this trade um it didn't have news but it was a continuation setup"
Pending
On LEDs, after entering at $2.00 and reaching $2.15, a large sell order caused the price to drop sharply to $1.83.
"I got in for the break of two it goes up to 2115 and then suddenly it slams down a big sell order goes through and the limit was a183"
Pending
The speaker averaged down on LEDs at $1.83 after the initial drop, and exited the trade for a total loss of $572.
"what I ended up doing was averaging down on that trade at 183 it popped back up to two and I got out still for a loss of $572"
Pending
The speaker acknowledges that the trading day is not particularly strong and accepts a small profit instead of aiming for their usual $5,000 goal.
"I said look today's clearly not a hot day I'm not doubling tripling you know quadrupling my goal I'm not even hitting my goal which is $5,000 but a small green day is all right"
Pending
BTCT showed a resumption price of $5.87, indicating a potential for a nearly $0.50 gap up on the open.
"btct currently showing a resumption price of um 587 which is pretty nice that that I mean look that's a nice Gap up if it actually opens at that level that's a nearly a 50 Cent Gap"
Pending
SAU was showing a halt down at $1.88 and a halt up at $2.82.
"SAU currently showing halt down at 188 halt up at 282"
Pending
BTCT halted at $5.80 and resumed trading, surging all the way up to $7.09.
"we halted at 58 so resumption there right there look at that all the way up to 709"
Pending
After an initial surge, BTCT's resumption price showed volatility, with readings of $25, $10, $13.10, $9.79, and $10.10.
"showing a $25 resumption a $10 1310 979 so resumption is coming back down it's still looking pretty nice 1010"
Pending
BTCT experienced a significant move, up 180%, with a strong red-to-green reversal and a double halt up following heavy selling and then light volume.
"this is now up 180% and we got a really powerful red to Green move and look at all the heavy selling and then suddenly on light volume it goes into a double halt up"
Pending
Bitcoin experienced a slight decrease of 1.7% on the day.
"BTC price um so you know we're down like 1.7% today um you know so it's it's down a little bit"
Pending
The significant upward move in BTCT, despite Bitcoin's slight downturn and lack of news, is speculated to be caused by short-sellers being caught and forced to cover large positions, potentially triggered by a large trader covering at the VWAP.
"so what happened probably some shorts got heavy on this thinking well BTC is coming down and does this even have news no and then for all we know it could be you know a one big Trader as this broke through vwap said you know what I I got to get out and covered you know a 200,000 share order and it goes right into a halt"
Pending
BTCT halted at $7.09 and resumed trading, reaching $7.09.
"we halted at 709 so resumption there right there look at that all the way up to 709"
Pending
BTCT's resumption price initially showed $8.60, then $8.50, indicating a downward trend from the halt price of $7.09.
"now we're showing a 860 resumption right now 709 halt now 850 resumption price is coming down a little bit"
Pending
BTCT's resumption price dropped to $7.80, suggesting a 5-minute halt, whereas a previous 10:18 halt indicated a 10:23 resumption.
"now we're showing a 780 resumption right now it would only be a 5 minute long haul because it's not a very big gap right so now 816 810 you know we'll see where it resumes but currently the resumption time if it was a 1018 halt resumption should be 1023"
Pending
After resuming, BTCT's first one-minute candle attempted to make a new high but subsequently pulled back.
"we got the resumption here um was watching first one minute candle to make a new High and um yeah it's it's pulled back"
Pending
The speaker's trading strategy typically involves entering on the first halt of a quality stock, and potentially a dip-and-rip into a second halt, but they avoid BTCT due to its sector, deeming it not a quality trade.
"it's a third halt up my rule of thumb generally is I like to be in for the first Halt and I don't mind doing a dip and a rip into the second halt so long as the stock meets my profile of being a quality and this one unfortunately does not"
Pending
The primary reason for avoiding BTCT as a trade is its sector affiliation as a Bitcoin sympathy stock, despite favorable price and float characteristics.
"the sector the price is fine the float is fine everything else is fine about it it's the sector that's the problem it's a Bitcoin sympathy stock"
Pending
Stocks trading below $1 can have spreads as small as 1/100th of a penny, allowing for large position sizes with minimal risk per share on the spread.
"if you looked at the level two of some of these stocks they could trade something like this 81 cents but the one that's just down to to the penny down to the 1/100th of a penny could be uh 8115 and then it could be by the spread 8116"
Pending
FOXO, despite its low price, high float, and high volume, was traded due to a continuation setup after a significant prior move (over 100%), with the expectation of a short squeeze.
"so the result is that it's been very crowded and it's like there's so many buyers and sellers jamming together just to try to capture you know a tenth of a penny maybe a couple tenth of a penny and make a couple hundred dollars on 100,000 shares now the most of the traders that are going to try to do that will be trading with a commission free broker where you can trade as many shares as you want without incurring any uh fees and Comm commissions so this is the chart right here on foxo right now it is hitting a new high a day it is currently up 72% I'm green on it and I'll walk you through why I decided to break the ice and trade it so let's start by looking high level at the daily chart because this is a stock that again doesn't really meet the profile of the type of stocks I've been the most excited to trade recently the price is lower the float is a little higher and it's certainly very thickly traded but this is why I broke the ice on it so it has no news which is obviously not preferred but that is the reality this is a continuation setup so I have my scanner over here where I scan specifically for continuation and this is a continuation setup is when you have a stock that has made a really big move like over 100% And is continuing to hold those levels so when a stock makes a really big move and it's continuing to hold up near the high we watch that for pulling away and the thought here is that anyone who is short is going to start to get squeezed out and forced to cover and that's when things can get interesting"
Pending
The trader executed two profitable trades on SAU, resulting in a gain of $2,243.51.
"so syu pops up and I said you know what I'm going to let it pop up and I'm going to see if it can hold this level so as it first pops up right here it goes up to a high of um a188 right here it pulls back and as it pulls back I said all right it's we've got our first pullback right here and so I got in as it curled back up here it goes from a188 up to $1.95 up to 3 up to 35 boom I took that trade with 10,000 shares I got in I got out I locked up $1,600 of profit it then pulls back and I bought this dip down here and it pops back up to three I took that profit off the table and that was it those are the only trades I took on syu so I got two trades on SAU I didn't overstay my welcome both are green I'm up $2,243 51 on it by the way there's my p&l for the day"
Pending
A trade on LEDs, initiated as a continuation setup, resulted in a loss of $572 after averaging down, as a large sell order caused a significant price drop without a clear catalyst, suggesting potential unloading of a prior position.
"then I took a trade on LEDs LEDs I took this trade um it didn't have news but it was a continuation setup and what's interesting about this is that all of a sudden it starts to pull away so I got in for the break of two it goes up to 2115 and then suddenly it slams down a big sell order goes through and the limit was a183 so what happened was someone sold probably 30 40,000 shares with a Aver with a limit order of a183 so what happened is it swept the price all the way down to $183 and then the remaining 20,000 shares was on the ask at 183 so what I ended up doing was averaging down on that trade at 183 it popped back up to two and I got out still for a loss of $572 not a great trade I don't like averaging down but in this case there wasn't a catalyst that resulted in the 30 Cent drop so I thought it was sort of likely someone who was holding probably from yesterday unloading their position and unless they had more shares to sell it would probably pop back up once they had sold and that is what happened"
Pending
BTCT experienced strong halts up, with an initial resumption price of $5.87 and a later surge to $7.09, suggesting short covering. The trader avoided trading it due to its crypto-sympathy nature but noted the value of specialized trading simulators that display halt and resumption prices.
"you know you've got btct curling today um you know could this go higher it could btct currently showing a resumption price of um 587 which is pretty nice that that I mean look that's a nice Gap up if it actually opens at that level that's a nearly a 50 Cent Gap so can't really complain about that too much by the way I can see resumption prices here uh on on light speed the software that I use a lot of free Brokers won't show you resumption prices and they won't show you halt prices so SAU currently showing halt down at 188 halt up at 282 so we do show um halt resumption levels and we do show um the the halt levels and the resumption prices in our trading simulator so I saw someone uh Post in the comments they said Ross I I was a member for a while and I used to use a trading simulator um I wish you guys would offer for just the simulator and I said we do you go to Warrior trading.com paper trading under Tools under realtime simulator here and you could sign up for the simulator it's 100 bucks a month so essentially this covers your Market data this is not something that we make a ton of money on the simulators it's actually kind of a pain because it's a lot of customer support a lot of tech support stuff like that but we do offer it because it's an important tool and we know you guys value it so it is included for free uh for a lot of our Warrior Pro members while they're doing um while they're uh well you know have their active membership but for those of you guys that perhaps just want a simulator you could do this now I know some of you say you could use the Thinker swim simulator for free you could but it doesn't work pre-market well you could use this other simulator for free maybe you could but does it show you halt resumption prices and halt levels and it probably doesn't so if you want that data you got to pay for the data we have to pay for it that's how we get it so you know if you want it that's that's how it is um and the broker that I use light speed trading you can't set up a simulator here unless you have a funded account um and I think they only get let you use it for like I don't know it's a short period of time maybe it's 2 weeks or something so anyways now let's watch this btct resumption just out of curiosity so we halted at 58 so resumption there right there look at that all the way up to 709 so you know what that tells me that tells me that some shorts got trapped on that because let's be real that doesn't really make sense it doesn't make sense but if some shorts got trapped then all of a sudden they're forced to cover so that's a very strong halt up and now holy smokes showing a $25 resumption a $10 1310 979 so resumption is coming back down it's still looking pretty nice 1010 so of course now I have a little fomo that I didn't you know trade it I stuck with my guns which was the right move until all of a sudden you get punished for having that discipline and you watch something squeeze up you know 180% without you but that's trading and here's the thing the worst thing that could do right now is break the ice with my first entry up here buy right here and it instantly slams you and it'll halt down and I'm only up 2,300 2500 on the day so I do a a little dip on that even with 2500 shares it instantly halts down and I'm then it resumes at 550 and I lose you know five grand and I go red on the day at 10:30 in the morning and now I'm running out of time to recover the loss and I feel that's where you feel really stupid"
Pending
BTCT experienced multiple halts upwards, possibly due to shorts getting trapped. The cost to borrow shares was low, facilitating short squeezes. During halts, an 'auction' occurs where orders are queued, creating an imbalance. A 10-minute halt suggests a significant imbalance or a tactic by shorts to delay momentum. The resumption price can fluctuate, indicating shifts in sentiment and order adjustments.
"so what happened probably some shorts got heavy on this thinking well BTC is coming down and does this even have news no and then for all we know it could be you know a one big Trader as this broke through vwap said you know what I I got to get out and covered you know a 200,000 share order and it goes right into a halt and a couple more people stop out and it's halted up you know it can just be like the straw that breaks the camel's back and suddenly it's halted up and now all of a sudden there's fear for shorts and the sentiment changes now the volume here is also actually kind of interesting um because you've got higher which C which time frame was that oh that was the 10 second okay so let me look at the one minute here so on the one minute see here's yeah this is kind of interesting um so this is pretty high volume into that halt up that was the highest volume of the day the 5- minute candle uh had higher volume but this didn't trade as long on the 5-minute chart that's kind of the problem because these were full 5minute candles whereas these candles um trading trading stopped because it it was paused for the halt so right now you're showing a resumption of well if you're on a commission free broker you have no idea you don't even know where to put your orders that's why it's so important to see the resumption price 860 we're showing an 860 resumption right now 709 halt now 850 resumption price is coming down a little bit likely there's some traders who are like okay it just halted twice in a row going up I'm going to if I'm still short I'm going to add to the position so so let's see what the the cost of shares is searching searching so it's not expensive to borrow which also probably fuels a little bit of a short squeeze because shorts didn't have to pay much money to borrow so it's two cents a share to borrow so 10,000 shares will cost 200 bucks all right so borrow 10,000 shares and then what some people would do is while this is halted they would put start putting out their sale orders they'd say well you know whether you're long or short doesn't matter but you would say all right I want to I want to I don't know maybe someone would say I'm going to buy this at 8850 I'll put a limit order to buy at 850 because I need to get out I'm short and I need to cover this thing right away or someone else will say I'm going to put a sell order at 850 because maybe that's you know they look at Daily resistance or something something right so now what's happening while it's halted is there's kind of a live auction where people are placing orders and and the market is paused so nobody can execute those orders but those orders are all going into a queue and now the market is showing you what the current imbalance is Now it could be resuming flat it halted at 709 it could resume at 709 but it's not there are more people that are trying to buy this even at these higher prices even after the second halt then are trying to sell it so the imbalance is to the buy side and it's up nearly a dollar over a dollar a share so we halted at 10 um the last print was at 10:08 and 17 seconds so if this was going to be a 5 minute halt it would have already resumed so it didn't resume at 5 minutes which means it's a 10-minute long halt sometimes what we see are shorts put out big big buy orders to create a huge resumption to try to create a longer halt to slow down momentum and to give them time to borrow more shares and to reposition so as the and then once it becomes a 10-minute long halt they'll pull those orders and the price starts to come back down so now we're seeing it's at 808 right so the price is kind of working its way back down um 806 802 $8 and as you see it coming back down there's a little bit of a shift in sentiment right you might be thinking oh shoot I wanted to short this off of 850 now I don't know if it's going to go to 850 I'll cancel that sale order I'll put my new one at 825 and someone else who's maybe trying to sell for profit is thinking oh I was going to sell it 820 but now maybe I'll sell it well8 maybe should put my order at$ 790 just to be safe and so in real time people are canceling orders they're moving their orders and they're adjusting to what the market is telling them but this shows you how if you're trading with a commission free broker and you don't have this data you're trading with your eyes closed in a sense at least when it comes to stocks are halted this data is giving me information and it's helping me decide where to place my orders where it's going to open analyze like now I know know to look around $8 on the daily chart"
Pending
The trader predicts that BTCT will drop on resumption due to the weakness from its earlier highs and potential panic selling from those who bought in at higher levels.
"so what's going to happen on this resumption what do you think's going to happen well my guess and again this educated in tuition but my guess is if we be because of the weakness of coming from so high all the way back down that you're going to have people that just bail on resumption because there are some people that may have added as high as 709 so if they're in this at 709 they were feeling pretty euphoric for a minute there they're like oh my gosh 860 resumption this is amazing a dollar a share instant winner and now they're like oh my god what have I done uhoh uh uh oh gap down resumption now it's now it's showing a lower resumption 690 687 684 Panic it's going to drop that's what I'm expecting is going to drop 675"
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The unusual behavior of BTCT halting up after a lower resumption, instead of halting down as typically expected, is surprising and offers a 'get out of jail free card' for traders. This pattern also affects sentiment for both longs and shorts.
"so technically right there when it popped over seven that that was a dip and rip that surprises me though it surprises me because usually you don't see a lower resumption and then a squeeze up after the second Halt and that barely halted up it barely halted up because it thinned out right before the halt so now we're back back to showing eight so that was that was a little bit of a bail that was like a get out of jail free card because this thing when they open lower like that typically Panic selling they flush they drop and they halt down so that's unusual it's good to see for momentum Traders but unusual and it's probably frightening for shorts because what I would expect shorts did was put out sell orders up against this level because if this had halted down then it gaps lower and unless it comes back to the high you're in the driver's seat on that short and now you're just going to let it unwind right so now all of a sudden it halted up a second time but how confident do you feel about being long into this halt after what it just did right that affects sentiment because you see it halt up and then it opens lower and almost looks like it's going to Halt down on that panic and then squeezes back up"
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Trading stocks below $1 share has a very tight spread, allowing for large position sizes with minimal theoretical risk due to the spread's limited cost (1/100th of a penny).
"I have found that I don't usually make as much money trading these low price stocks and one of the reasons is because these lower price stocks when they trade below a dollar a share they trade down to the one1 100th of a penny so if you looked at the level two of some of these stocks they could trade something like this 81 cents but the one that's just down to to the penny down to the 1/100th of a penny could be uh 8115 and then it could be by the spread 8116 and so what ends up happening when you have such a tight spread of one/ 100th of a penny typically if you bought a stock like this you would say well let's just say you you wanted to buy1 ,000 shares if you bought a 100,000 shares of this stock typically if it was above a dollar your spread is 1 cent which means you're risking a thousand bucks if if it goes up or down even just a penny but right here down to the 1/ 100th of a penny you're risking only and this is kind of amazing you're actually only risking boom take away those zeros 1 100th of a penny so 1/100th here equals not $100 of risk but just $10 $10 of risk $10 of risk so you can get in this with huge size but not actually be really in theory risking that much"
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A shooting star candle pattern, especially a red one, signals a potential reversal, indicating weakness when a stock rallies and then sellers push it back down.
"so what we know about those candles is when you have a stock that's you know rallying up pushing in higher here and then all of a sudden has this candle what does this communicate weakness this communicates weakness because although it squeezed up the sellers pulled it back down so a shooting star is a indicator of a possible reversal now if that shooting star is red it's even worse because what it means is that we opened we pulled we squeezed up and then we actually closed lower and the reversal has already begun and it usually continues with a second red candle pullback so so fortunately in this case on foxo this morning the shooting star was a green candle so not as bad as if it were a red candle but certainly it was a problem so I didn't take a trade there"
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Stocks under $0.75 can halt every 15 cents within 5 minutes of the reference price, which is the average of the last five candles. The reference price updates approximately every 30 seconds.
"we know that stocks that are under 75 cents on the prior day close will halt How often every 15 cents and this isn't every time it goes up 15 cents but every time it goes up 15 cents in um less than 5 minutes from the the reference price so the way the reference price is established on a stock like this is we have um and I'll just grab my green marker here so we the price is moving up um so it moves up a little bit let's say it dips down I'm not going to do full candles you get the idea these are supposed to be candles and it moves up a little bit right here so the reference price for the halt is the average price over the last five candles so 1 2 3 4 5 average price equals sum divided by 5 reference is going to be about here so now for this stock to get halted it has to actually go up plus 15 cents plus 15 cents from the reference price so if the reference price is 88 cents here then it's not going to Halt until it hits a13 right it's got to go all the way up to that level to Halt and needs to do it quickly because if it moves slowly the reference price keeps updating how often every 30 seconds approximately so every 30 seconds the reference price is updating so in order for a stock to Halt up it needs to really pull away very quickly"
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In lower price ranges (e.g., $0.90 to $1.00), orders are dispersed across many small increments (1/100th of a penny), leading to a different visual order book appearance compared to higher price ranges ($1.00 to $1.10) where orders are spread across fewer, larger one-cent increments.
"so when you have um so we'll do a little graph here from 90 cents to a dollar and then from a dollar to A110 so from a dollar A110 you've got one two 3 4 5 6 7 8 9 10 little troughs or increments where orders will will get dispersed so if you have a million shares of buying between 90 cents and a dollar and a million shares of of of orders between a dollar and a doll10 those orders between a dollar and a doll10 are going to have to get filtered into these 1 one-cent increments so it'll be basically 100,000 shares at every increment whereas when you're down at 90 cents to a dollar because you have a 100 little increments here right because 100th of a penny time 10 cents is a thousand so you actually have 1,000 increments from 90 cents to a dollar and so the million shares it gets dispersed across all these little potential uh levels"
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Stocks tied to cryptocurrency performance (sympathy stocks) are considered derivatives whose price movements are linked to the underlying crypto, making them difficult to trade without also monitoring the crypto's performance, and they are influenced by high-frequency trading algorithms.
"they are a little bit of a derivative which means their performance becomes tied to the performance of Bitcoin and unless you're going to keep a chart of Bitcoin up while you're trading them um it it it can be fairly difficult to find success so I don't usually like trading these types of derivatives um one of the other problems is that I feel like there are high frequency trading algorithms that are like actively calculating the price of Bitcoin as these are trading and sort of it it's just like there's a there's another level of algo involved it's not exactly the same as trading options but you know when you trade options They Don't Really vary Too Much from the value of the underlying asset in the sense that options don't usually go up a ton when the underlying asset isn't moving they they move to a certain extent in Tandem and that happens with a lot of these stocks are tied in with cryptocurrency"
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Cannabis stocks have experienced a decline following Donald Trump's election win.
"agfy is in the Cannabis business which has been um cannabis stocks across the board have been down since Trump um got won won the election"
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The trader's rule of thumb is to enter trades during the first halt and consider the second halt if the stock meets their quality profile. Trades after the second halt are only considered with a profit cushion and high confidence, and BTCT is not considered a quality trade due to its sector.
"my rule of thumb generally is I like to be in for the first Halt and I don't mind doing a dip and a rip into the second halt so long as the stock meets my profile of being a quality and this one unfortunately does not partly because of the sector well most really entirely because of the sector the price is fine the float is fine everything else is fine about it it's the sector that's the problem it's a Bitcoin sympathy stock which again look it's great to see the movement and the momentum but I just know that typically I don't make money on these and I've got to stick with my rules so first halt I usually like it second halt usually like it and then trading SO trading after the first Halt and then doing the dip and rip going into a second halt after the second halt I usually only take this trade if I have a profit cushion from the first two and I'm feeling really confident"
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