2021 has been a pretty incredible year. It’s been my best yet — including a $6 million+ trading day on October 22, 2021. Yes, you read that right… $6 million in one day!! Who would have thought that after the worst pandemic in modern history we could see such numbers? But the thing is, because of the effects of 2020, we’ve seen a significant rise in trading volume in the stock market.
The worst pandemic in a century brought about one of the worst bear markets ever seen. Yet it was sandwiched by two bull markets at both ends of the year.
This year began with
a bull market and ended with a bull market.
In fact, the market recovered pretty quickly after the brief bear market that happened when the pandemic started in full force. The market is resilient, and as a trader, you have to be too. It is due to my resilience and my ability to bounce back that I was able to make $1.15 million during the peak of the pandemic in 2020. And in 2021, this new milestone of $6 million (IN ONE DAY!!!) This is the most amount of money that I’ve ever made trading in a single day. And if you compare it to the $9.3 million I made day trading through verified trades from 2016 to the end of 2021, just this single day of day trading alone is almost 2/3d of what I earned in the first six years of day trading.
But the truth is that leads to overtrading and makes most traders blow their account. Instead, you just need to make a few good trades each month. Or in this case, even a single day. Sounds crazy and even too good to be true. But it happened. The amount I earned in this singular day was definitely great feeling and a milestone I am proud to have achieved, but I never knew it was possible. But what really makes me feel good is that I’m able to teach my students how to reap similar percentages of profits. In fact, I actually did my trades this day live on the Freedom Challenge webinar that I hold for my students and they were able to follow me in and out of the positions that I made that particular day.
an anomaly gain
This particular gain has been an anomaly even for me but clearly it is possible to gain a significant jump no matter what the amount eventually is. It takes time and effort, of course.
I did not reach this point in my career from one day’s work. Most traders are under the impression that they need to place a ton of different trades each and every single day to make money. But the truth is that leads to overtrading and makes most traders blow their account. So… how do I do this? To answer that I must take you back to the basics. As basic as my daily routine. Because that is where the essence of the hustle lies.
My Daily Routine
..And How I Got Into Most of My Trades
My daily routine plays a big role in how successful my trading days are. October was no exception. As always, I woke up between 4:00 am PST to 5:00 am PST. That’s because, every day before I start trading, I allow myself some time to prepare. I make use of this time to borrow shares to potentially short them. I also spend time choosing 2-3 stocks to focus on for the day, considering the market cap, float, and price range to select a mix that keeps my risk management intact. Many times, this selection depends on what was trending or skyrocketing the previous day. What happened on the previous day sometimes can have a significant impact on which stocks I choose today.
I look for what stocks to reserve to borrow to either short or go long.
At this juncture, most traders keep an eye out for a stock to go up and they want to jump in for the ride up. The reality is, a majority of these stocks hit a resistance point and then begin to go down. This is why many traders get stuck, and why over 90% of them fail. Instead of looking for stocks to win, you can focus your time on stocks that are losing to make money. Coming to my daily routine for this October, I did not trade every single day but my routine remained the same. We have to keep up our daily habits in order to find sustainable success. Go through this article where I dive into my daily habits…
Using Pre-Market Scanners To
…Determine My Positions
As a habit, I use pre-market scanners and look for tickers that fit my criteria according to the strategies. These are the ones I teach my students. You can use a system to set up a watchlist for yourself, so you can keep an eye out on the stocks that are most meaningful for yourself and your own personal strategies. After I find stocks that meet my personal criteria and the ones that I teach to my students, I start to borrow when I find these stocks. My objective is to look for stocks I consider are moving in the right direction to set up a good trade, so once the market opens I can purchase these shares before anyone else. On any regular day, I track a decent number of statistics to specify the maximum size I can type into our standard ticker. There’s usually a certain amount of positions that are available for a ticker when I make volume trades.
In general, there’s a rule that the current data query can’t exceed over 5%. It takes time to figure this out. It usually comes with experience and, after a while, becomes second nature.
The objective of this is to reserve your shares early in the market so you don’t have to worry about getting into these positions later. You don’t actually start trading until about 9:30 am EST!
The Trades I Made
Let us take a look at a few important trades to illustrate how October went. Basically, my most significant trades occurred on October 22. This day was one of a kind…something we have not had in a long time. It was one for the books. And clearly for me the best day of the year. I traded DWAC, PHUN, and DWACW on the same day. A day prior to this I saw them skyrocket and predicted they were going to go down.
Basically, October 21 was a significant day for these 3 stocks which made me interested in them. So… I decided to short them. Here are the details:
DWAC is a stock for a company called Digital World Acquisition Corp., which trades on the Nasdaq.
As you can see in the screenshot above, DWAC turned out to be highly significant as it helped me earn over $3 million. On October 21n this stock was skyrocketing. It caught my attention and I noticed it had a high volume. In fact, it soared yet again (i.e. in December 2021).
On October 21, 2021, the stock of DWAC skyrocketed on extremely heavy trading volume after it broke out in the news that a merger would launch former President Donald Trump’s planned social media platform. DWAC was among the top 10 most popular names on Reddit’s WallStreetBets chatroom, even surpassing meme stock GameStop’s mentions. On that day the stock was up more than 400%!! When a stock moves up and down continuously in short periods of time, it’s a sign of opportunity. This kind of oscillating movement of a stock compels me to make multiple trades.
Huge volume usually results in huge price movement. And that potentially means that there are signs of huge opportunity. But then again, you also have to think about the percentages of how often a pattern and a strategy works before you get involved with it. Most of the strategies I follow regularly and teach my students to follow have a 65% win ratio. This particular strategy yields a much lower percentage, hailing around 50%.
I started by shorting the maximum amount of shares that my brokerage would allow me to buy for this stock at $165 and covered it at $89. Personally, I would never recommend any of my students to buy or short the maximum amount of shares that a brokerage allows them to, because they would be carrying too much risk for a position. On top of that, I would never recommend any of my students to use a margin account, because if a trade goes wrong, then they will lose way too much money.
We calculate percentage gain as follows:
Percentage gain = (Price sold−purchase price)/purchase price ×100
However, the way to calculate percentage gains for short positions is:
(Entry – Cover)/Entry * 100
In this case, the percentage gain that I had for this particular trade was:
(165-89)/165 * 100 = 46%
Therefore we come to the conclusion that the percent gain on this trade is 46%.
Moving on, I then sold some shares of it at $115 and then again at $119 because I anticipated it going up—and covered it at $74.
The percentage gain here is:
(119-74)/119 * 100 = 37.8%
That is, this trade yielded a percentage gain of 37.8%.
Next, I sold some shares at $84, $92, $103, $109, shorted at $105—that I purchased at $74.
Percentage gains for these exits are:
Selling at $84 yielded 13.5%, selling at $92 yielded 24.3%, selling at $103 yielded 39%, selling at $109 yielded 47.2%.
Exiting at 4 different points gave a percentage gain of (13.5 + 24.3 + 39 + 47.2)/4 = 30.9%
I took a conservative exit at $84 to secure my position in case the stock changed directions. At this point, the stock has a 50/50 chance of either going up or down, so you can either earn more money or start to lose money. In this particular instance, the stock continued to go up, I took another conservative exit and moved out some more shares to ensure that I could secure a profit. Once again you have a 50/50 chance of the stock either going up or down. So I held on as the graph continued to move upwards and sold some more shares at $103. Surprisingly, the stock continued to ride upwards, and I completely exited my position at $109.
I couldn’t believe that I hit the top. It’s nearly impossible to exit at the top. That was extremely surprising, even for a seasoned trader to be able to exit at the top. But once I did, I saw that the stock was going downwards. This meant that there was opportunity to earn money shorting the stock as it moved on a downward trend. Because the stock was going down and the stock had continued to move up for so long, I was able to forecast that the stock would continue to go down. Then I shorted the stock at $105… I rode the stock price down until it reached $74 and then I covered the stock to get out of the position.
In this case, the percentage gain that I had for this particular trade was…
(105-74)/105 * 100 = 29.5%
Here are the highlights:
- Trade Dates: October 22, 2021
- Earned: Over $3 million
Shorted stocks at $165, bought them back so covered them at $80, Resold at $120, Repurchased at $74, Sold at $110, Shorted at $106, Covered at $90. This is the sequence of events that lead to a gain of over $3 million.
The strategy I used for this particular series of events is something called Dip Buying (more commonly known as Buy The Dips). Buy The Dip is used when buying a stock after it has dropped in price (i.e. there has been a dip). It’s believed the stock in this case will bounce back very quickly and increase in value. So this dip is short-term and this is when you buy—hoping to profit when it bounces back.
As stated earlier, this particular strategy has about a 50% win ratio. When you’re evaluating strategies, if you’re following ones that are under 65% and do not yield a return of around 25–35%, you’re in for some high risk traders. This trade in particular is certainly a high risk trade, because even with vast years of experience while trading, we don’t know which way it is going to go.
This is why Buy The Dip seemed to be the right strategy to use here. When a stock goes down, it can continue to go down further or bounce back. But based on our observations of the market and experiences in the past, we can say that usually, a stock, and the market, do bounce back. Again, the skill behind identifying this comes with experience. When the stock is going back up, it will only go up to a certain level and this we can determine from its level on the previous day. It will hover around the same number today. This isn’t a strategy to be used by beginners and novices in the stock market. This is an advanced method for veteran day traders and the risk and reward of dip-buying need to be constantly evaluated when you use it. So this day was certainly an anomaly.
As an experienced trader, you can take advantage of both sides of the movement of a stock (i.e. both when it is going up and going down). With DWAC—and the other two major stocks—I was able to make multiple trades, each of them yielding some profits which added up to $6 million+.
This is certainly an advanced way to do trading and something I became confident of doing owing to my years of experience. As a beginner, you should follow the strategies your mentor recommends or something you have already tried and succeeded in. And where do you find these strategies, I bet you’re asking… Well, you cannot find such strategies online or in books. They’re created by experienced traders and the strategies that I recommend, I share with my students. After years of trial and error, I’ve figured out these strategies so I made them a part of my course, The Freedom Challenge, so I can share them with dedicated and passionate traders.
DWACW moves slower than DWAC, so it’s slightly easier to predict in terms of shorting because you have those extra couple of seconds to react.
DWACW is a sympathy stock of DWAC, something that occurs when the stock of a company is impacted by news delivered by another company. To illustrate… if the stock of one company shows strong results, and the competitor too shows strong results, it can be said to be a sympathy play.
This happens often in the case of stocks within the same industry. Again, this was noticed to be skyrocketing on October 21, so I followed the same steps I did for DWAC—as these two follow each other. Just like DWAC, this stock kept moving downwards and upwards and so I was able to take advantage of its volatility. I did the same thing with this particular stock, meaning I shorted the maximum amount of shares that my brokerage would allow me to.
The short entry for this particular position was $55 and I covered, or exited the position at $39.
Going by the earlier formula…
(55-39)/55 * 100 = 29%
The percentage gain on the trade done for DWACW was 29%.
Phunware is another stock that dramatically rose on October 22.
ts market cap (which was valued at $116 million at market close the day before) soared to $1.5 billion at one point—when shares peaked at $19.39 per share. They then fell to around $10. For this stock, I shorted the maximum amount of shares that my brokerage would allow me to at $13 and then covered, or exited my position at $8.
The stock ticker PHUN turned out to be the smallest of the 3 trades of the day for me. But returns were still significant. I made almost $400,000 with it.
Going by the earlier formula…
(13-8)/13 * 100 = 38%
That’s not a bad return for a single trade. But when you put it in comparison to the other two stock positions I had that day, it leads to massive returns for a singular day!
I have to say, as a beginner, seeing a day like this might make you feel impatient. But I did not reach this point quickly.
years of experience
So be patient! You need patience in this game!! A few months ago, I couldn’t have expected a $6 million day.
In fact, I used to think the maximum I could make in one year was $15 million. Well, my outlook has changed now. The pandemic has shaken the market and changed the rules. There are more opportunities now than ever. But you need to know what to look for and what to do when you find them. This is set to continue as we enter 2022. This means the time to make a mark in trading is NOW. If you’re willing to put in the hard work, here’s what you need to do…