Okay guys, so welcome. This is behind the Trades Episode Four and today's topic: Three Lessons I Learned from making sixty thousand dollars in one month that was sixty thousand dollars in my small trading account, which was, you know, absolutely ridiculous. This was part of my journey from taking five hundred and eighty three dollars and turning that into a hundred thousand dollars and so in one month to make sixty grand really and kind of at the very beginning of that journey was absolutely incredible. So today we're going to talk about some of the stats from that month and a few of the lessons I learned.

Having really what was the the very best month that I've ever had on record, it was fantastic. but we're also going to review my Lee CLE stats. Okay, so we're going to talk about the best and worst trades this week where I finished this week and then of course at the very end, we'll have a QA Ask the Warrior so you can ask me questions, tell me about some of the things that you did this week, whether they were great trades or bad trades. Whatever the case may be, we can have a nice nice little Q&A session at the end.

All right. So let's jump in here with my weekly stats. So as you guys know, I Started January 1st with 583 dollars and 15 cents I Started this week. This is the the first week of March 2017.

I Started with seventy two thousand, eight hundred and twenty six dollars. My total weekly games just over seventy six hundred dollars. which means I'm finishing the week over eighty thousand dollars, 80,000 for hundred and sixty dollars which is awesome. I'm breaking over the 80% mark on my way to a hundred thousand dollars and you know that really puts me exactly where I want to be because if I can make well, if I can make five thousand dollars for the next four weeks right from March 6 through the 31st, that will give me twenty thousand dollars and I'll be at a hundred thousand dollars by the end of the month.

That's my goal. Now if I can do it sooner, well, then that would just be off. I would love to do it sooner, but if it does take me the full month and that's fine, that would still have me taking the $583 starting balance and turning it into $100,000 in three months. So my accuracy this week sixty one percent.

And the interesting thing here is that I have seen a little bit of a dip in accuracy and we're going to be talking about my my worst trade of the week which was actually when we go over it was it was more than just one trade. It was actually five consecutive losing trades back to back to back to back to back. which is of course disappointing and maybe even a little embarrassing. But and that definitely drew down my accuracy this week.

So down to is 61 percent average Winners: fourteen cents per share average losers Nine cents per share So this is the good news: I Got a one point five, five to one profit loss ratio and if a trade or one of our students came to me and said Ross these are my stats you know 14-7 winners, 9/10 Losers sixty-one percent accuracy I would look at that and I would say this is really good. Those are metrics that are sustainable. You can make money with those metrics, but if you want to make more money, you need to do one of two things: one make the loss of smaller or to try to get the winners to be a little bit bigger because that you really want to get closer to two to one. That would be the first thing you could focus on.

The second thing you could focus on would be improving accuracy to get it closer to 70% But honestly 70% is is very, very accurate and most traders don't get there. In fact, most of our students they start around 30% and our goal is to get them to 50% and 60% anywhere between 58 and 68 percent. You know those are the statistics of profitable traders. you know? for me, 61 percent is maybe a little low, but even at my best I'm probably only around 68 or 70 percent now.

I Will go over all the trades for the month of February of course just a moment and I'd have to pull up my stats to see be where I am year-to-date which I will check because I am curious now that I mention this to see my accuracy. since January First I think 61% this week is is a little bit of a dip in my accuracy. so let's see. so I'll put this in for January 1st 2017 through March 2nd because I don't have today's trades uploaded yet.

Alright and we'll filter that and let's check the detailed analysis. Ok, so since January 1st my accuracy is 75%. So yes, this week is a little bit of a dip. A 75% is actually a little bit better than than I expected.

so that's that's good and that's something that you could definitely strive for. but I wouldn't You can be profitable at 65 percent. 75 percent is maybe kind of like near the top. Getting to 80 85 is almost unobtainable.

Ok, so the important thing is that and we talk about this a lot. I am making money, but I make a lot of mistakes, right? You don't have to be right A hundred percent of the time being a successful trader is not about winning every single trade you take. For me, it's about taking ten trades and winning six of them. So losses are going to happen every single day.

And I hope you guys have checked out my recent video from my trip to Jackson Hole Wyoming where I went and filmed skiing with Ross and I was talking about the fact that you will fall when you go skiing if you're pushing it and you're not having fun. if you're not pushing it right, you got to push the edge and really have a good time out there. and I fell probably half a dozen times. Did I get hurt? No, you know I fell in controlled ways I knew my limits but I was testing the edge of the limits.

so you know I took a couple Falls but that was no big deal. I had a great time. That's the same thing with trading. Yes, you're going to have some losses.

That's not a problem. You don't beat yourself up for having a loss. You learn from the loss. It helps you become a better trader.

Sometimes you have to implement new rules and make some adjustments to prevent you know repeat the same mistake. But generally speaking, having a losses is not a problem. It's not something that should get you bent out of shape or get you frustrated. It's just part of you.

Know this, this job so you know finishing the week was 61% maybe a little lower than I'd like, but you know the big picture is that's fine and I'll just next week strive towards in trying to improve that a little bit. And when we talk about the worst trade of the week, you know you'll see how five back-to-back losers certainly don't help you with your with your students statistics and your accuracy. Okay, so the best trades of the week? Well that would be my trade today on RN VA This really was the best trade of the week. Not only was my biggest, my biggest dollar amount winner of the week making thirty eight hundred dollars, it was also the cleanest setup.

A super-clean ABCD pattern that we talk about a lot in the classes. So we had this: the squeeze up here on the one-minute chart. the pull back to point A, the pop up to point B the pull back to point C and now your entry is a break. A point B with a stop at C It's that simple.

Enter here. Stop is here. Target is high. Add a first target and then looking for a break through high a day now.

I Really like this setup because you can very easily visualize your max loss and your profit target. And a trade is not a trade until you know what your losses and you know what your profit target is. Until then, you're just basically gambling. You need to have those two.

You know points in order to really get a sense of whether this trade is even worth taking. If your profit target is a hundred bucks and you're risking five hundred, it's not worth taking. But so many beginner traders jump into positions not knowing profit targets, not knowing max loss and then of course they wonder. You know why they're losing money? Ninety percent of traders out there will fail.

so you really have to think about what they're doing wrong and what you're going to do differently so you don't become part of you know that's statistic. And for me, as you guys know, it took me, you know, years, well, certainly years to get to where I am today, But years even to get to the point where I was having any degree of consistency and and of course, you know confidence and those two go hand in hand. So this trade here I took a total of four trades on the stock I had to actually I had one really good winner probably $2,600 I had a $500 winner, a $400 winner, and like a $200 winner. So you know it was just generally a nice easy stock to trade.

From my initial entry, right here, at 280, it went up 15% So I feel good about that. And if I could trade setups like that every single day, well, I guess I'd be making thirty eight hundred dollars a day. The unfortunate thing this week is that good setups were just kind of hard to find and I may have gotten into forcing setups a little bit. forcing trades here, you go on.

HT GM I'm the guy who meant to lose money on a stock that went from a dollar thirty to three dollars per share. I took five trades and lost each time. Five back-to-back losses and you know at the end of it I I Was starting to think about throwing my computer out the window because I was like this is getting ridiculous I I Don't even know what to think at this point. You know every single time I go into this trade, it goes the wrong direction.

How am I not seeing this set up morally I mean where is the disconnect? I'm not usually I don't usually have that problem. In fact, five consecutive losers is the longest red streak actually and it may have only been four, but in any case, it's the longest consecutive red streak that I've that I've had this year. I Don't usually have that many back-to-back losses. namely because at a certain point I just give up I'm like, okay, I'm I, You know I call quits, the setups not working I'm not seeing it clearly but for some reason on this one I just really wanted to make it work and so you can see these blue circles.

Here were some of the fake outs that we soft right first Campbell to make a new high. nice setup and then we go right back down to the low and then we break out so choppy there and then first cantle to make a new high we squeeze up and then we come all the way back down Again we start to get a break out and then a hard rejection. This is just a stock for whatever reason, you know, for whatever reason, it was just really heavy. Now that brings up an interesting point, which is that this week we just really didn't have the same degree of follow-through and momentum that we've had I suppose since January 1st so you know what's up with that? Well, I Think one of the things here is the fact that you know when we have a market that's really strong and we've got a lot of momentum, you have to recognize that the market is driven by collective mentality.

It's group groups, really, the group mentality of all traders of all investors coming together to either form long biases or short biases on stocks, you know, and indices and commodities. So this week was a week where we sort of saw a shift. Up until now, we've seen incredibly strong momentum where we've seen 20, 30, 40, 50, even a hundred percent movers on almost a daily basis. And so when you get into that type of cycle, it's almost like a feeding frenzy.

You know, traders as soon as they see something starting to move, they jump on to it, thinking, you know that's kind of like the greed and you know setting in, thinking, okay, look I just saw 5 stocks run 50% this one's up 25% I'm jumping in it now and I'm going to ride the momentum. You you multiply that mentality over thousands. Hundreds of thousands, maybe millions of traders and investors and you start to see these really exaggerated moves, these big squeezes to the upside. But at a certain point you know short sellers begin to recognize this pattern as well.

That you know the long biased traders are jump in. These stocks become irrationally strong and then they roll over at the very top and they come back down sometimes just as quickly so that for short sellers provides an opportunity. And I think both long bias and short biased traders have probably loved the first. You know two, two and a half two months of 2017 Because of the amount of volatility, we've had great opportunities on both sides, whichever your preference or bias may be, you know.

But the fact is, when you get the point where short sellers start piling in earlier and earlier, it's kind of like it's almost like the opposite because when you have got the long biased traders, we get in earlier and earlier and earlier and creatives in these moves. But then short biased traders start shorting earlier in early and earlier because they're anticipating that reversal. and so now you have more and more people coming and kind of putting a cap on this momentum. So this is in a way the market self-correcting you know, kind of coming back into balance.

But guess what? You know we're going to get to a point where we have a stock that pops up and traders start to short it. But what they're not going to realize is that this stock actually has a really good catalyst. Or maybe has, you know, a, you know, a big hedge fund trying to take a huge stake of it on the open market. and maybe they'll announce later in the week that they've taken a 15% stake in the company I Mean you, you never know what causes these, but but something will cause the stock to start to pull back and then to rally.

And now these short sellers who shorted early are going to be covering as the stock starts to squeeze back up. Long biased traders sensing momentum are going to jump in. and now you start to get this, these big waves and these big extension starting again and eventually they will slow back down. And right now we're kind of in this little bit of a lull in between these waves in between these cycles.

Certainly, Dr. Ys G Lbs the shipper stocks created. I perhaps the momentum that's carried us even into January, then it started in November. So we may be coming to the end of what has been the longer hot cycle and things might be slower for a couple of weeks while we wait for that next stock.

That kind of, you know, really sparks the interest of traders. It just goes from you know, zero to a hundred or whatever it is. You know that just goes crazy. So here's the thing.

while we're in between these cycles. You know, when we're in that low, you have to be able to be mindful of this. You know, this place in the market. This is not the place to be incredibly aggressive.

You know that this is a place where we're going to see more stocks like HT GM that are just really choppy and that are not clean so you know? Definitely, that's what I was sensing on I guess that was Monday when I traded that and then going into Tuesday wasn't much better. Thursday Friday Thursday Friday Finally, today we got this nice opportunity on our NBA and I think our NBA has some potential to carry over into next week. Potentially, we'll see. We'll definitely keep it on watch, but in any case, next week, in order for me to continue to have some really solid trades, I need to stay focused on two things.

Number one: I need to be focused on trading pullback entries only. So buying the pull backs you know which this is a pullback. This just didn't work. But but buying the pullback entries with a stop at the low and not chasing stocks into the highs, you know, and and also remembering kind of three-strikes-you're-out rule I Try a stock three times and I lose three times.

Just Colic quits. You don't need to go back in for the fourth, fifth, sixth, seventh Loser: I mean just a certain point throwing the towel. The good news on on HT GM is that I only lost seven hundred, seventy nine dollars. So I didn't give back thousands because I was keeping relatively tight stops, but it just wasn't seeing follow-through All right.

So now with the the overview of today's are the trades from this week behind us. let's talk a little bit about the three lessons that I learned from making $60,000 in one month and again This that was the biggest month that I've ever had. January was the biggest month that I'd ever had I made forty-one thousand dollars a 42,000 but I was up fifty-five thousand dollars and on the last day of the month I lost 13 grand. How frustrating, right? So I already had it in my mind that I had broken fifty thousand on the month and how awesome that was.

So finishing the month forty-two thousand actually didn't feel like a victory. and I think it made me even more aggressive coming into the month of the month of February finishing the month of January than coming into the month of February. So the three lessons number one: when the markets are strong, you have to be aggressive. Number two: Learn to tolerate the big losses and bigger losses.

Number three: Wait for the pullback entry. All right. So those are the three lessons that I learned and I'm going to talk specifically about each one of those lessons. but let's first break down my statistics for the month of February Okay, so I will be of course uploading my statement for the month that will come in.

Usually it's four to five days after the new month starts, so I should have that statement as early as next week. I Checked today and it's not uploaded yet, but that's fine. I'll upload that to the website. In any case, I've got my trade review stats and those are posted on the website, so this is these are what my metrics look like here for the month of February I had five read days and I took off two days.

Well, one day was Presidents Day weekend this was on that Monday it was bank holiday markets were closed and then this Friday I was flying to Jackson Hole So I took the day off. All right. So you notice a trend where I do pretty well at the beginning of the week and then the end of the week. not so well.

And and on this, Wednesday I didn't do so well. All right. So here are the stats. all right and you can see this is kind of bad equity curve, you know, starting moving up, the little bit of pull back up, pull back up, pull back.

So the tough thing for me was that on the 9th was some ninth. Yeah, I think it was the 9th and the 10th. I lost in those two days. Over $10,000 or right around $9,000 That was a pretty big you know losing streak for me to have I haven't had, you know I don't usually have back-to-back red days I had two of them in February and those two days, you know, obviously were pretty big drawdown and I was feeling nervous because I was thinking, look, it's just not acceptable for me to lose $10,000 in two days.

You know if this keeps happening, it's going to be a problem, you know I can't have red days that are this red And so I was definitely feeling a little bit concerned and I was also feeling frustrated because I had gotten myself such a nice cushion on the month of February especially at the very beginning of the month. And then here, it felt like I was taking you know a pretty big step back. and that's definitely you know, not what I was what I was wanting to do. So I was a little bit disappointed there.

But then I rebelled it on Monday and Tuesday with two back-to-back $8,000 days. So I lost I think four thousand here, five thousand here and then I made eight thousand here and eight thousand here. Then I had a red day and lost maybe sixteen hundred bucks or something like that. seven hundred bucks and then bounced right back to another Green Day another Green Day So on this.

this is the week where I made $20,000 and obviously that was a you know that was a great week and the week before that you know had been pretty good and the first few days of February were absolutely ridiculous. but you can see how my gains did sort of decline as we got towards the end of the month and that was for two reasons. Number one, at this point I was still feeling pretty aggressive, but then on this day here I went back into the red fairly deep and as I started to come back out you know I was kind of like okay, let's just finish the month strong and try not to try not to do a repeat of what you did at the end of you know basically just annoys you to the end of January which is giving back $13,000 in one day and going from up 55 on the month up. you know, only 42.

So I said let's just try to keep this in control, taper back a little bit. that's what I did and and so I kind of started to rebound a little bit but I wasn't being quite as aggressive at the same time. This is sort of the beginning of what I felt has been this kind of lull in the market where you know I had this little pullback and I've kind of been you know, double topping at this these areas for a while. All right now you can see you know my daily volume has been, you know, fairly high on on the days when trading has been going well.

Definitely trading larger-sized and that's resulted in these bigger winners. All right. So these are the statistics here: Total gain for the month of February Sixty thousand, Eight Hundred Fifty Six dollars, and 18 cents Now, the trader view stats do not include a couple things: Number one, they don't include platform fees. Number two, they don't include wire and fees.

Number three, they don't include TAFEs fees. So these statistics will always be a little bit higher than my actual broker statement because of those those three things that are not included. But this is these are of course, the results of those. all the trades that I took in February and the gains.

So a total of 70 trades with 68% success. So January was better in terms of my accuracy because I was at the very beginning of the challenge. I was being much more. I Think diligent about taking the best quality setups and in February I think I kind of fell into my groove and was like look, I don't need to win every trade I just need to be aggressive on good quality setups and I definitely had some trades where I went from being up you know, several thousand to being just break even.

Alright, so single largest gain: $10,200 Largest Loss: Five thousand, Three hundred Fifty Seven dollars Okay, average winning trade eighteen hundred bucks average losing trade $1300 which is not bad in terms I mean these are big numbers, but in terms of profit loss ratio, you know that's not bad. That puts me, you know, a little less than one point five to one which is, you know, kind of what? I Expect average hold time on the winning trades eleven minutes average hold time on the losing trades thirteen minutes and my max consecutive losses is showing it for. And you know so I must have been four trades on HT GM instead of five although I thought it was four. but I think actually what it might have been is that I took a trade in between those two on and and that that on LP it was LJ PC and so that broke the streak.

But in any case, I still had five losses or on HT GM I'm pretty sure it was five. So total commissions for the month of February $1,300 total Ecn fees just under 4,000 now February Stats are divided between two accounts: I traded for the first six days in my Sure Trader account and then I traded for the rest of the month from the seventh on in my in my Speed Trader account. So you'll see the way I've decided to break this down on the website for my 2016 or my 2017 earnings statements is I'm just putting the entire Sure Trader challenge into one place. So basically and let me just pull this up so you guys can see this.

let's see so you can see here: January 1st through February 6 was the Shirt Trader Challenge 24 days $583 to 42,000 and then those are my Broker statements and then February 7th to February 28th Starting Balance: Forty One thousand, Eight Hundred Ninety-eight dollars Ending Balance: Seventy Six thousand and this is the this is the amount that I made just in my Speed Trader account in February So I'll be uploading that statement as soon as I Get it all right. So let's see now as you can see with these trades, you know my accuracy was pretty solid and for the most part that's attributed to the fact that I was trading the good quality set up I was trading the bull flags, the flattop breakouts, the ABC setups and I was predominantly trading to the long side. So this right here is my Trader View account that you guys can see on for those of you who are watching in a chat room or on YouTube So let's see I Want to go through these stats a little bit more with you. The winner, The win.

This is interesting. They have this tab called win versus Lost Days. So the winning days here for the entire month total eighty thousand dollars and the losing days which were five losing days were fourteen thousand dollars in losses. Alright, so that's kind of the way it breaks it down and then you can see your average success based on whether you're having a winning day or a losing day.

So on my winning days I had 80% accuracy which is fantastic. But but then of course the other side of the coin. on the losing days my accuracy was only 36% and I think this really speaks to the fact that I'm either hot or I'm not. You know I'm either having a really good day and I'm hitting.

You know my daily goal and it's just great or the markets not on my side and this is also I Guess this is good to see that that that is why I have losing days. It's because my accuracy is just really poor on those days. It's not a profit loss ratio issue. Specifically, it's really just the fact that my accuracy is bad and the winning trades the whole time is much shorter.

Probably because the the winners are like very small. what games I Get in that doesn't work and I get out. The average losing trades on both sides are about 14 minutes. All right now we can see.

Let's see if we look at go back to detail for a second. So let's look at as we know: Performance by day of the week Fridays were my worst day of the week for the entire month and I lost a total of 36 hundred dollars on Fridays Wednesday's were my best day of the month. All my positions were intraday and performance by intraday duration. The majority of my gains were on trades that I held.

This says 20 minutes to 39 minutes. So you know I guess because there were some trades as I got into, you know that I held a small position a little bit longer. Those ones ended up working pretty well. I do remember a couple of trades that were losers that I held for a while and then finally ate the loss and it looks like maybe I have one trade that I held even longer than that.

although I don't remember holding a trade that long. So I'm not sure what's up with that one, but maybe was a small position or something. So then we can also look at and this is a really this is an awesome platform. You can import all your trades direct from your broker into trader view and then you can see all these metrics and it really is.

You gain a lot of insight into your trade metrics. You know what's working and what's not working. Let's look at let's assume would be instrument here. So the stocks that were my top 20 biggest winners my top 20 biggest losers are Es N and Q Bak.

Those are my biggest losers. Interestingly here, performance by instrument volume. You know, law traders think that I'm trading lower volume stocks, but in fact the majority of my profits were on stocks. I had more than a million shares of volume I had some profit 7800 from stocks with 250,000 shares to 500,000 on the day.

But the majority of these profits were on stocks that had higher volume, although not not much on stocks with more than 25 million. All right, And a Performance by Instruments relative volume. Again showing you that almost all of my trades are way way way high relative volume. Because that's what we're looking for.

Stocks with high relative volume. They've got a catalyst. They've got a reason to move. whether it's a technical breakout, fundamental news, whatever.

So those are really important points to take note of that. That really is where I see the biggest gains. Okay, so let's see and then let's see. All right.

so I think that pretty much breaks down. Oh, let's look at market behavior. This will be an interesting one too. So market behavior did you do trade distribution by spy movement? So for the most part I Guess we didn't have any days.

but you can see performance by by spied a type outside range, inside range and then trend up I'm not sure exactly what the trend up means, but I have found that statistically I don't do as well when the market is really, really strong. For whatever reason I do better when the market is. you know either either sideways or down slightly I do better than when the market is up a lot. Alright, so that's a breakdown of my statistics for the month of February and I Know some of you guys really like to see those those metrics and stuff like that so they may be more in-depth than some of you you know care for.

but I think for those of you that do like those metrics, it's appreciated. So anyways, that's those are the metrics now. Lesson number one of these three lessons I Learned When the markets are strong, be aggressive. All right, here's the deal.

he tries to setup you be aggressive and you maximize on the opportunities by being aggressive During the hot markets, you can afford to sit on the sidelines during cold markets because you built up such a cushion and that's exactly what I've been able to do this week is. feel like look: I made sixty eight thousand dollars last month. sixty thousand of my small account Eight thousand. One of my other counts finished the month 68 grand.

I mean I don't need to be aggressive this week if the markets not on my side now I went up to Las Vegas in December and you guys saw the video I made of me driving some sports cars around the racetrack and one of the things that I was doing in that car that never really done in a car before is I just had the pedal all the way to the to the to the floor and you know it was like okay, this is how you're supposed to drive this car. the pedal goes all the way down and you steer and I was you know, a hundred percent pushing as hard as I possibly. Could you know around the corners the wheels were squealing when I have come into a corner I would slam on the brakes almost as hard as I Could you know? Obviously you want to be able to, you know, feather and be kind of gentle, but you're really pushing as hard as you possibly can to get that extra you know, tenth of a second or second or whatever it might be to your lap time and I think I've kind of applied that to my trading to be aggressive to really push the edge of my limits and you know what? It resulted in the best month I've ever had. Now during that month did I have some red days? Yes I Did I had days that were really, you know, not not very fun where I lost $5,000 but on my green days I crushed it and you know that's the thing.

This is obviously not like driving a car where I'm risking crashing into a wall and you know, getting seriously injured. you know I've got a much better sense of my max loss on trade four or five thousand dollars. Yes, that's bad, but I can handle it and if that's the risk, to potentially have a day where I make 8,000 to 12,000 it's worth it. So that was one of the big things that I learned because I think you know I've been trading for a long time and there's been a lot of strong markets where if I applied the mentality that I had this month to those markets, I would have made a lot of money, but I wasn't at that time being as aggressive I didn't have at that time as much confidence to take these types of large positions.

So this is something that does come with experience for sure, you know. But it's just to say that if you have the presence of mind to recognize that we are in a very strong market and that this is a good time for you to try as best as you can to make the most of it. I think that will help your trading and then at the other side to that is to recognize we're in a cold market right now. You know is for some of you Like This was your first week joining the Warrior Trading Chatroom and you're like wow.

Trading is so slow, there's like nothing going on, you know? and so this may be. You may try to be aggressive even though it's not the right time and you just have to recognize it there. The time will come when you can really step up to the plate and swing for the fences and there are other times where you just kind of have to step back and you know ease off the throttle a little bit. Alright, so number one lesson is: when the markets are strong, be aggressive.

Lesson number two: Learn to tolerate the big losses. So this month, I had five losing days that totaled over $15,000 in losses. and this year I've made over $200,000 in winning trades and I've lost a hundred thousand in losing trades. Now the net is that I'm still up.

I Think of a year right now I'm up around a hundred and fourteen thousand dollars. So it's been a good year, but there have been some big losses, so you have to learn how to tolerate those big losses without it affecting the way you trade. This is one of the biggest challenges. the traders habits.

It's a babble with your own emotions. We talked about this in a lot of classes in the Warrior pro course. we talked about it in the chat room battling your emotions. You know, learning to become comfortable with experiencing loss and really was experiencing discomfort.

because having a loss is never something that you. You know it's not something that you want to have happen. It's not something that you enjoy, but you have to learn to be able to kind of sit with it and experience that discomfort. so you know it's like maybe you know, laying down on a bed of nails or something and you just kind of have to find a place where you can go where you can allow that discomfort to be there without acting on it.

And you know meditation is one of those things. Exercise is one of those things. exercises, not as something not I Mean, maybe some people like to do it, but I don't like to go to the gym I don't like to exercise. so to do those things is forcing me to be uncomfortable.

Essentially, it's what it's doing. The good news is that by forcing yourself to handle the emotion of discomfort with practice, you get better at it. And then when you're in a trade that's going the wrong way and the thing you really want to do is just hold it and hope that it'll bounce back. Instead you do the uncomfortable thing, which is just cut the loss or you're in a winning trade and you feel a little uncomfortable because you just want to.

You know, take the money off the table, but you work through that feeling of discomfort to hold the trade until you get an exit indicator and then that's how you end up having the bigger winners. So many traders fall into this habit of small winners and big losses and that's really driven by emotional emotional training. And I say that because I've been there. You know this is one of the reasons that you know I enjoy working with students so much and talking about these things because I made every single mistake there was to make before I found any success at all.

I'm not someone who came into the market and made you know quarter-million dollars in my first three months, you know I didn't have any success I I saw people out there making money and I was striving to achieve it. but I just I couldn't get it and one of the big struggles for me I mean I had the basic struggles because I didn't go through a class so I had to teach myself the right type of stocks to trade, how to manage risk. You know how to find setups. all of that stuff, you can learn them.

So I just learned that the hard way. But the things that I really struggled with were the emotions and learning how to control those feelings when I was having a bad day. Alright, so learning tolerate the big losses because once you can tolerate them, then you're in a position where you can scale up. If you want to have a month where you make 40,000 50,000 or 60,000 dollars, you need to be able to handle a day where you lose five grand and not go out and get you know, really upset or frustrated or whatever you just it's another day.

It's no big deal, you'll bounce back tomorrow. So wherever you are you know a big loss for you. Today might only be $100 or 150 and that brings out those same emotions that maybe a ten thousand dollar loss would bring out of me. We all are all at different places in this learning curve and that's it's okay to be where you are, just make sure you're mindful of the fact that testing the edge of your limits is the way that you're going to grow.

All right. Lesson number three is to wait for a pullback and this is. this is a big one because some of the largest losses that I had last month were from chasing setups and I felt I guess victim to that same kind of mentality I was talking about before where you know long biased traders. We see these stocks running and so we think, oh, you know, I'll just jump into this one and because that one ran I'm going to jump into this one and it's probably going to run.

And you start to think that when you're on a hot streak that you know anything you touch turns into a winner. The market will remind you very quickly that that is not the case, right? The mark will remind you that no, I'm stronger than you and this stock you got into high, it's dropping down 30 cents and you're going to lose. You know, five grand on this trade. So waiting for the pullback? you know this is something that's important for me, but it's also important.

Maybe especially important for each of you because You know you're an environment where you're seeing someone else take trades you know and I take these trades because this is an opportunity for me to teach you everything we talked about in the classes to teach you in real. but there's that instinct that some of you will have to try to follow me to try to chase the stock that I got into and you add a better price because I got in at the right price and you really have to fight against that. This community is not about following me. it's not about following any of our moderators, it's about learning why we take the trades.

I Take the trade I Took today on our NVA There was a proper entry on that stock and although even on my trade which you'll see when you watch the live recap in even though I did chase it up a little bit on my own trade, it's because of course I was looking at the $3.00 target and then the break over three and that made sense. But you want to make sure you understand the reason you're getting into a trade, not because someone else says something or whatever it might be. whether it's me or anyone else out there. you get in because you understand the setup that's about me you know, teaching you how to become an independent trader.

so you can be doing this on your own for the next 10, 15, 20 years. And if you want to be in our community, giving back to the community exchanging you know the ideas that you have, sharing set up, stuff like that and that's great. I Mean that's what's helping build this community to the point you know that it's at today. But if you want to trade on your own or you want to decide, you move to Japan and you want to tre you know you know the Japanese market or something like that.

it's better timezone then you can do that on your own. You don't need me there. Okay, so you know this whole idea of waiting for a pullback is essentially waiting for the setup to form. If you're getting into a trade and there's not a setup, you're setting yourself up for a loss.

So one of the things that I would suggest you guys do for the month of March is that you set goals Now we're already three days into the month, but doesn't mean it's too late to set some goals. now. Along with the goals you set for the month, you should have a couple sets of rules. Those rules should probably include your max share size.

You know the type of price stocks you're going to trade, the time of day you're going to trade. For me, those rules include: I'm really only going to trade until lunchtime 9:30 to lunchtime I I Don't think I'll trade pre-market I Could say that I won't but I don't really have I mean I don't feel the need, but maybe I had to highly doubt it is traded pre market maybe half a dozen times in the last year, so probably won't trade pre market. I'll just trade 9:30 to noon time I'll be trading stocks primarily priced between $3 and $10 on those stocks. I'll probably max out share size at 20,000 shares I Don't think I'll be in a place this month where I would take more size than that unless we get into a really good hot streak again and I built up my cushion.

If I was going to take that kind of size, I wouldn't be taking it all in one. you know in one go I would be adding to the position. so I'd already be up. You know, 20 30 cents on 20,000 shares before I add that extra 10,000 you know I'd have to be very careful because look, if you lose 30 cents on 30,000 shares, you'd have 9 grand and when you get slippage trying to mark it out of a position like that, you lose another 20 cents easily.

You I mean you could lose $15,000 like that and so I will respect the danger with that level of share size. but I'd encourage you to add some of those rules and also encourage you of course track all of your trades for the month in an Excel doc. For those of you in the Warrior pro course, that'll be something that I'm able to look at and then I also suggest that you take a screenshot of your trades every single trade you take and you should probably only be taking you know three to five trades a day, not more than 10. So you take a screenshot every day of these these setups and you want to be able to look back at that setup the next day or a week later and say yep, that was a good trade I Know that I'll be able to say that on our NVA because it's a fantastic trade.

It's a great setup I won't be able to say that about my trades on HT GM You know I won't be able to say that about some of the bad trades I had this week. so it's a reminder even to myself to be patient to wait for those good quality setups. You know that's what I did in January That's why I had 80% success in January I was much more I was much more selective about what I was willing to trade I was at a point where I was at the beginning of my challenge. It was very important that I built up my cushion and I didn't make big mistakes and so I was more selective February I eased up a little bit I just kind of started being more aggressive.

Had some more losses just trading on the edge of my comfort zone a little bit more. It was a great month, but for March I think I want to taper it back a little bit and I really don't expect myself to break $60,000 again in March My goal for March would be 20,000 if I can do $20,000 a month. I'm happy. If I can do 40, that's great.

If I can do 50 or 60, that's outstanding. but I don't expect that. I'm going to do $50,000 a month every single month this year. I think that February we were in a hot streak I got aggressive I was able to capitalize on the opportunities I had multiple eight to ten thousand dollar days and it's not reasonable to expect that every single month.

So you know, this week, $7,500 If I can do that, you know, four weeks in a row, you know I'll be in the 20s. You know, getting into the 30s, that's fine. That's respectable. I mean that is after all you know six figures a year I mean that's a good salary.

so that's kind of the you know an outline of some of the things that are on my mind for the month of March Of course my goal is to get to 100 grand and that means I need to make another $20,000 since I'm up right now 3700 on the month I guess 23,000 is my is my monthly goal I Mean that's the that's the bare minimum. That's what I want to be at. And yeah, hopefully we've got some good opportunities and maybe I can get into the 30s or 40s, but I don't need to set the bar quite that high because the only way I'm going to get there is by taking ten fifteen, eighteen thousand share positions and I can only take that type of size on good quality setups like our MBA today. If I take that size on a bad setup, I'm going to lose four or five thousand dollars a trade and I don't want to do that back to back to back.

All right. So so that wraps up lessons. the three lessons that I learned from the biggest month that I've ever had as a day trader: Sixty thousand dollars in my small account plus eight thousand in my my other accounts. So overall really impressive now as we finish finish the month of February and came into March and of course now I'm only trading in one account I closed down my shirt trader account so from here on out for the rest of the year, I'll just be trading in my main account.

I'd like to set up a retirement account that I can day trade in at some point, but I don't know if I've got enough money put aside to do that, so that's something I'll get to. maybe this year, maybe not till next year, but from here on out it'll be Speed Trader and you'll see my statements uploaded on the website. You can, you can find it. Let's see right here.

Scroll to the bottom of each page. We've got the 2016 I'll add a link here for 2017 I guess I didn't have that yet but those are right up here and the language is the same. You just change the date from 16 to 17 if you're trying to find it. Alright guys, so now let's ask the warrior.

So this is a little Q&A session for those of you watching on Facebook or for those of you hanging out here in the chatroom get your questions answered. Now obviously let's keep the questions kind of on the topic of today you know general Q&A We can get to a little bit later. the tasks Fees: TAF What are those? Those are fees that the broker charges. They don't charge them on a per trade basis, although they are calculated per trade.

they charge them at the end of each month. I Asked them you said looking at your activity, the Tassie amounts to close to $500 I'm not sure if you're going to if your record if your trader view records will reflect those since we build them on a the basis and we do it manually so it's some type of transaction fee and I'm not sure exactly what it is but I guess something that is just deducted as as we go on each trade. Alright so regardless, almost regardless of the broker that you use, you can import trades here to Trader View. So this is like 70 bucks a month or maybe 100 bucks a month as you can go to import trades right here and then you can select you know whichever whichever broker you have and you know it's pretty easy.

import your trades and then you've got all that info on them now. Bogdan I'm not sure my metrics based on individual strategies for the month of February because I wasn't I wasn't being diligent about tracking which strategy each trade was associated with. So unfortunately I'm I wish I had a better answer. but yeah, I just for whatever reason, I wasn't tracking that and I actually haven't been tracking that for a while.

It's just it's just one more thing to track. So oh, tasks the trading activity see regulatory fees thinner assesses to recover the cost of the costs of supervising and regulating firms. Alright, so there we go. Thanks! Josh Let's answer to that question: Jackie When you're in the middle of a trade and you're looking at you say there's a 40,000 share seller if you just if he disappears, I'm out.

Surely it can't be from the numbers flying in time and sales. that's correct. Jackie So in my recap that you'll see today that I'm going to upload on Youtube, you'll see where I'm watching the level - it was on the level - that I actually saw 40,000 share buyer sitting at 3. he was sitting at 320 when I got back in for that final tray made right up here and I saw that and I was like look a 40,000 share buyer you know this could be a short seller covering a position this looks I mean this to me looks very interesting.

I'm definitely I'm I'm interested. It ends up popping up to a high of 327. Now it's not to say that someone couldn't place an order there. Now people have you know accused me of doing that and it's ridiculous I wouldn't do that.

It's called spoofing. It is illegal. Not only would I not do it if I did it, my broker would contact me almost immediately and say we noticed this pattern you're doing. It's illegal.

why are you doing it? And there was an article recently about a group of guys that were doing that putting out really big bids and stuff like that. and they I mean they must have gone through a dozen different brokers because each broker would cease. They were doing this and shut down their account. so it's not something that.

number one, it's not legal. Number two, if you try to do it, you wouldn't get away with it for long. your broker would shut you down. Number three: If you put out a 40,000 share bid right here and you do get filled, someone wants to sell, you have the potential to lose a huge amount of money, so it's just I Mean it's just ridiculous.

but in any case, I saw the bid on the level - it looks strong and we popped up to a high of 27. didn't hold those levels and so we ended up coming back down. So in any case, I saw that using level 2. So David yeah, the best way is to import your trades right into trader View.

and I can give you some more info about how to do that if you're not sure. So George how do I read the exit indicators? For me, each strategy has its own set of exit indicators and I talked about those as part of chapter 6, 7 & 8 of the day trade course. but generally a good indicator is a red candle. I mean if a candle looks like it's going to close red, that's usually an indicator to get out of the trade.

And so for me I am watching the 1-minute chart and when I see a one-minute candle go red I'll usually get out now, sometimes I'll stay in if the setup looks, you know, relatively good. My first entry: let's see right here: I stayed in through this red candle and I had my stop at the low of the pullback but this look this was close you know I was like not feeling confident on it and I thought I was probably going to hit my max loss. Fortunately though, it did bounce back All right. Stop-loss guidelines: McMahon So the guideline that I use for the most part is a 20 cent card stop.

So 10,000 shares is 2,000 bucks. so maybe I don't want to risk that much. I'll start with 5,000 and risk 20 cents. That's 1,000 bucks.

If I can you know get a tighter stop? I will. and usually I can get tighter stops in 20 cents but you know if if I can't then I'll just size down. Let's see. Yeah, you know I thought today Nathan also was going to be a day that I wasn't going to find a trade and I think that I only had maybe one day of all his last year that I sat here looking for a trade and I didn't find a single thing to trade.

So it's very rare to have a day where there's just nothing I'm willing to trade. There's two things you can do. Number one is you know you say, look, there's nothing good I'm waiting till tomorrow. Number two is that you say.

Well, there's nothing that looks really good today. So I'll start looking at things that look so so. and that's when you can get risky because now you've lowered your quality standard for what you're willing to trade and that's when you can start making mistakes. So I try not to lower my quality standard based on the fact of the market isn't very clean.

I try to keep the high standard and then that you know helps me have the best level of success. Alright guys, so with that I will I'll wrap this up those of you the do self questions put them on YouTube in the comments section I'll answer them there I put them on Facebook in the comments section and I'll answer them there. So I hope you guys all have a great weekend, get some rest and we will be back at it first thing on Monday morning. Alright thanks guys! Let's be honest, if you made it this far, you must have really enjoyed that video.

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