 What's up everybody Austin here? Well have another trade recap. I want to go over but before I do I want to say I'm not licensed I'm not registered. I'm not a financial advisor and this is an investment advice and you shouldn't take it as such Even if it sounds like it But yeah over on Valentine's Day had a nice trade on RBZ that I want to go over and I got I got some questions on RBZ because of it's you know because Part of the reason that got me in the trade was it's kind of the same old story with a lot of this The the stuff that I long I long for the the hype factor news plus the low float and I look for you know some kind of interest Normally I determine interest by volume So and I and I look at the volume relative to float, you know the same spiel that we've been going over and this is just another example So I want to go over this really quick that RBZ oh the arrows are gone. I'm doing this over the weekend, but I have my chart up here. I believe. Oh, yeah, there it is It was better. Yeah a little bit bigger. So now this is my trade on it Side by side here Yeah, so I was a buyer here. I decided to get my feet wet in the trade Here and add just very typical looks a lot like my other trades where I get my feet wet in the trade I know I put a starter position on then once I'd like it once it's established something that I really like like a nice base Or a nice floor something to risk off. I'm comfortable putting more shares on same old story with a lot of my trades and I want to go over thought the I want to go over this trade from beginning to end So the first thing that I did was I looked at the first thing I always do is I look at the daily chart on a stock Anything that pops up onto the radar I'm like, what does the daily look like and the daily goes this far on DAS But I think I'll think or something it goes a little bit longer and it's essentially it's heard I'm pretty sure and But what strikes me more is that the fact that its float was 2 million shares Which is really low exactly what I like to trade and the news was really hyped so that combination the news was that Intel like disclosed a stick and you know, I Want to go over this thought process for the trade because this is kind of an a key element to why I'm Like how I justify my lungs on these crappy companies now a Lot of people question you have a yeah, isn't the news old isn't the news like fluffy It's it's bullshit like it's old news and you'll see a lot of this stuff on Twitter Like it's old and you'll see people bashing The stock, you know, I actually kind of like that as a long I like it when people bash stocks on Twitter you know, it makes you know, if you can get it more short-crowded, you know the more the better and So like it doesn't for me it almost doesn't almost doesn't matter if The stock is a turd if the stock, you know, if the if the news is old or fluffy or You know, like it's unimportant whatever, you know, if it's if it's full of crap basically Like if there's dilution in the stock, I almost don't care I don't put a lot of faith in that because price action is king and You know, it doesn't matter if you know Intel disclosing the stake is old news because it's not old news to a lot of The people who are going to be trading it this morning. That's all that matters is price action Who's trading it this morning? You know and if there's a lot of hype for it people think that like Intel is going to buy this like and what's possibly next like You know is is it possible that Intel might you know buy more like or acquire in the future? Like why is Intel like a blue chip company interested in this in this small cat piece of crap? Especially a stock with 2 million shares of float, you know That is that is something that can easily get going and that's all you can ask for is potential Now, you know, does it matter that the that the news sucks? Of course it matters, but it all depends on your time frame like my time frame I I'm looking to sell this in the middle in you know intraday I'm not looking to hold this in my 401k, you know So like all that matters is if I'm gonna buy it and if it can spike like 30 40 50 cents Maybe even a dollar, you know or higher if it really starts if the float really starts to rotate, you know, that's great You know, it's all in my time frame in my time frame. I think this news is Bullish like in my time frame. I think it can go up now. Am I gonna hold this forever? Absolutely not like pretty sure the company's a turd so That's my feeling that like if you if if you want to be a long bias trader in the small cap world and You want to and you want to eliminate if you want to scratch out Companies that have dilution or don't make money or don't make revenue if you only want to trade good small-cap companies You're never gonna make a long trade in your life, you know, you're never gonna place any trades like The reason why all these companies have dilution is Because they don't make money and if they don't have any some sort of dilutive property They're not gonna have a ticker and they can't sell any stock. They don't have any chance so Like trying to say I don't want to longest because there's dilution Like good luck finding some trades I you know, like it's it's a risk that I have you know that I have to own if I want to try to long these small caps like It's if you look at if you look at like historic names that have just flew like Lake You know la ke when it had that Ebola up in the boat when there was a Ebola break mass breakout and you know like Lake said that they were going to like they created this you know this suit that was gonna protect everybody That's big. That's hype, you know, this that's one of the stocks that I learned This strategy from it's a hype news. It was a low flow, you know Anything with hype can get going and it doesn't you know, like Eventually the fundamentals matter, but in the short term like Lake I forget what price Lake went to but I mean it it flew shorts to head to heaven like, you know They died and went to heaven. It's it that it all depends on your time frame, you know Like fundamentals matter in the end, but with small caps and low floats like price action is king, you know in my opinion So, you know like when when this popped up on the Intel news and like I saw that it popped up on like Rarely any volume and then it consolidated here. I was looking, you know, I was like, hmm That was only the first pop and you know, it's it's a It doesn't look like it has a lot of overhead resistance, you know, there's not a lot of volume here I'm looking I think and with the two million share float I think this thing can go like I think Intel is um as a hype enough news that people are going to like are Going to underestimate it or short it or people are waiting to buy, you know I think that there are buyers that are interested that haven't bought it yet And I think, you know, if I thought that I was early. I thought I could beat them to it And so like here's my trade one more time. Yeah, so I put on a starter here Um, and you know, like sometimes these trades are anticipatory Especially in pre-market like things can really fly fast in pre-market. So, you know, like I like to You know get my feet wet in the trade So I put some on here and in a dip and you know, honestly every a lot of people ask me like Why don't you add on dips? Isn't that better risk to reward and the answer is yes It's better risk to reward. But you know, I you know with a crappy company like this and I'm not it I rarely ever add on dips I only like to add on dips if I'm truly convicted in my idea like if I'm really convicted in the idea then in my You know, and that's my thesis that I mean like it's a really confident trade for me Then yeah, all dips like, you know better price like lower the better for a long like I just you know I want like lower the better because I'm really confident it's gonna go You know with RBZ, you know, like I as a you know, short seller for most my trading career Automatically, I know that I know this news is crap, but it's still excitable So like because it I know it is crap. I don't I'm not really like that convicted in the idea So I'm not gonna I don't want to add on a dip here and and then it you know Let's basically have a bigger position when I end up selling like if it decided to fade off here I was totally cool with just ditching this starter But you know like once we once I consolidate a little bit more and play with the wall and put in a nice higher low here I was like, you know, I can add I can buy here at the break of this channel and I did and Definitely sold some because I'm not convicted in the idea You'll notice that a lot like if if I'm not convicted in an idea I'm typically a fast seller, you know, and then we get here to the open and I gave it a chance You know, I gave this a chance to go Like on this I got really excited on this push it had high volume. I was really excited on that push there And the second like it's stuffed on high volume. I was like, okay, if 500,000 shares couldn't do it I I kind of want to sell so I did sell The other third and I just had like a third maybe even less That I'm just waiting for like yeah, this stuff really scared me and I'm just waiting for you know Maybe it's gonna have a home run potential. I consider a two million share float with Intel news it's got that home run potential and I eventually ended up selling down here when it broke this 220 level when it broke that 220 level I was done and You know, I was willing to get back in if it wanted to perk again But you know, I wasn't gonna be a chaser here So like if this had come back and curled I might have been a buyer over to 45 again with the risk here on 225 but you know as it turns out failed so No other trades But yeah, like I just wanted to go over that, you know, like yes the news a lot of the times is Absolute crap that doesn't mean it can't go higher like I learned that the hard way on shorts Like that is what causes squeezes is people thinking that the news isn't worthy and you know, like price action is king now so like I want to say I don't put a lot of faith in like a Company has dilution. I can't long it but like I want to show that I know this is on RBZ But there's another quick example that I want to go over Maybe to help illustrate this point here Let's see here Yeah, here it is. Yeah, it was my PULM trade So this is this was even a days ago, but I it was I posted in chat But I didn't do a recap about it. This was on the 7th last week But yeah, like so I did care about dilution PULM. I believe the news was I care about dilution if it sounds suspicious So PULM about a week ago put out a PR that they were canceling their shelf right and and then like so PULM did a verse split for one red flag number one like Then they said we're canceling our shelf So they make the float really small and then put out a PR that's actually like, you know supposedly really bullish right if we're not going to be selling stock anymore, but well One thing I noticed is that on PULM Pew up, let me pull it up here on PULM. This is Edgar here with PULM they put out this PR on the 7th or Registration withdrawal request, you know, and what is it right here? No Where was it? Oh right here and You look at the file number like I'm not an expert when it comes to fundamental filings But I know the basics and so this is like they're withdrawing the registration their s1 But if you look and what I did was what I what I looked was I Notice that they had that was for the s1, but there was no other Prospectuses in that in that file number and then so I noticed that these two at the markets These two at the markets had different file numbers, you know, that's you don't see the withdrawal request the withdrawal request was only for The shelf and so these were you know, I was guessing different like I can be wrong here I'm not the the biggest fundamental guy, but that was my thesis behind that trade Like that's kind of when I care about dilution is it when it when it plays into the story. So like PULM PULM Yeah, the story just added up to where I did take dilution into account, you know It did this reverse split and Then like a couple days later like it rounded and I was interested in it on this day But I didn't trade it and then on this day is the day that I bought it the day a couple days after the reverse split Hey, here comes a PR canceling Cancelling their s1 and and then I and then I did a little a little look and I'm like hmm But it seems like there's two others. It seems like there's two other forms of dilution That they can still hit so it's almost like we're canceling dilution everybody by but we're gonna sell you with our Dilution so that was kind of my thesis behind that trade and that's an example of like how I do use dilution You know, like I figured that they wanted to pump it up to sell and that's why I immediately sold on that perk You know, I sold immediately because my thought process was it's going to tank and This kind of gets into another Topic that I'm gonna talk about in another video but it when it when it comes to bias flipping and And I want to go over the kind of struggles that I'm going over with bias flipping But that's for another video like if you know if I thought this was gonna be it, you know A long and a short why didn't I showed it after I sold? Well, I'll go over that in another video Because that's a whole nother ball of worms But anyway, that's when I do take dilution into account is When I feel it plays into the story, but for a lot of my longs like RBZ I'm just looking to ride the hype train and and get out, you know before the hype runs out You know in the simple, you know get in before the chasers and sell into the chasers basically So that was my trade on RBZ one more time. I put it up here I don't have the whole chart like I had to leave on Valentine's Day, but um, you know, that was that and I hope you Got something out of the video Any questions, please feel free to ask Have a great weekend everybody. Take it easy. Aloha