'Pennies: Going In Raw' Podcast Recap: Episode 38.5 Gary Trades Interview

On this week’s Wednesday episode of "Pennies: Going In Raw," hosts Dan Knight and Mitchell Hennessey (aka Hugh Henne) welcome Gary Trades (aka Mystic Mac) to the show. Mac, Knight and Hennessey discussed their different strategies to navigate this choppy market, and what there is to look forward to.

The traders talked about how small caps are seemingly doing better, with a few running more than 100% this week.

“Last Thursday and Friday… Thursday towards the end of the day and then on Friday we had two hundred-percent runners, we were starting to get some confidence back in the small-cap world,” Hennessey said.

One in particular that the PGIR crew mentioned was Microvision Inc MVIS. Last Thursday, Microvision ran more than 100%, opening at $13.14 and hitting highs around $26.44. Hennessey and Knight have discussed in the past that seeing a small-cap stock run 100% is a good sign of the market, but Hennessey expressed some uncertainty about why exactly Microvision was running.

“And then you have a few like MVIS… which you’re like why is this thing up 300% in two weeks of trading?” Hennessey said. “Yes it had news, but is there just that many shorts in there? Is it like a small GameStop squeeze? I like things to make sense, and right now it doesn’t make sense to me.”

For many traders, the small-cap market has been choppy and volatile. Despite this, the Russell 2000 Index, an index that tracks 2000 small-cap companies has actually outperformed the S&P 500 as well as the NASDAQ thus far in 2021.

Gary Trades and the PGIR hosts also talked about how for newer traders, this type of up-and-down market can be frustrating and even push some traders away altogether. Gary compared traders that walk away after a few bad trades, to if Michael Jordan stopped shooting the basketball after a poor game.

“If Michael Jordan takes himself out of the game… he’s not going to go on to be at the status he’s at now,” Gary Trades said. “You have to play smart. Maybe you don’t go for three-pointers right now, maybe you don’t even go in for a slam dunk right now. But a layup… layups still put points on the board.”

Watch Gary Trades' February appearance on Benzinga's "Power Hour":

Benzinga is a sponsor of "Pennies: Going In Raw."