So this is gon na be a difficult video to make. I lost a lot of money trading this week. I basically got short squeezed and I lost an entire week's of profit or in one trade. So the reasons sector sympathy with all these coronavirus sympathy.

Stocks has been a great opportunity for both long and short for day trading. At times like these, like we're, seeing with the last few sector hype like the shippers, a blockchain and same thing, with a cannabis Sox, we see this where we see a lot of big wins and also the big losses, because the lone traders are banking on the Fact that the short sellers are getting squeezed on the way up and while the short sellers are banking on the fact that the long traders Upen excelling on the way down. But maybe we hear a lot about the losses in comparison to the winds. So that's why? I want to make this video in order to reflect on my loss, which would help me a lot as a trader, but at the same time I'm hoping that this could help some of you as well.

So the ticker that got me was CEO, DX and I was short intraday on Thursday. The overall trading plan and a thesis was not the problem. The problem for me was the ads I added to aggressively and I outstayed my welcome and I didn't cover fast enough on the way down, and this is why sometimes it's actually a blessing to not have any shorts locates available right because technically, if you were long, You have limited downside. The most you could lose is 100 % of your exposure.

However, if you are short, your risk is technically infinite and, of course, there are times to go long and times to go short, especially in a crazy sector hype such as this one. The key is to identify the front side and the back side of the entire move, but of course it's easy to say that after the fact right hindsight is twenty-twenty. Nobody loses in hindsight, but it's definitely important for me to reflect on this loss. I definitely push a little bit beyond my comfort zone.

My was shorting CEO DX early in the morning, I'm actually predominantly a lone trader, meaning I'd make more money in there, more confidence dip buying stocks for it to go up higher, either intraday or swing overnight. Yes, I do shirt and I short often because, like I talked to about many times before, it's important to know both sides of the trade and understand how they work psychologically, because you want to take advantage of the other side when they are in pain. Well, I do go both long and short, where I'm shorting my sizes generally less than men long trades, but when I was shorting Co DX early on my sizing was the same as if I was long. So that's where I got into trouble.

I go through my trades at the end of the day. In all my recap, videos - because it's important for me to reflect and why did well on and what could improve. There's definitely things to learn from both wins and losses, and it's these kind of reflection that allows me to stay disciplined and grounded, and that is especially important during a week where I was doing pretty well from Monday to wednesday and on Thursday I just gave everything Back, oh in one trade, all that hard-earned money through trading just gone like that and going through that it's extremely difficult to handle emotionally. But it's exactly at an emotional situation like this that we traders need a solid structure and rule to fall back on.

In order to stay grounded because it's that discipline - that's gon na keep you and I away from emotional trading revenge trading where we go back to the same ticker and flipping long war shorts. In order to try to make back the big loss and not what we call trading on tilt, where you lose a sense of control and you're just buying and selling in a state of panic, and that's why a lot of times when a trader takes a loss, They go on a losing streak where that can lead to the entire account blowing up because they are trading emotionally just to make the money back instead of trading the chart, their own setups and stick into the discipline. And by no means am I saying it's easy to keep that composure stay disciplined, especially after a big loss, and for me yes, I took a fat loss, it's not easy at sex, but at the end of the day, it's manageable. But the last thing I want is for that manageable loss to lead to bigger losses, the next trade on the same day or the next day and eventually lead to blowing up.

So that's why part of how I recover from a loss like this is ice ice down right away, if I'm still trading or I'll, take the rest of the day off and sometimes the next few days off from trading the whole point of sizing down is so I can mentally allow myself to trade well trading, my own setups, my own rules and following my discipline instead of trading, my P & L, so that's the silver lining out of the CEO TX loss is that, yes, I took a loss and stopped out following my Own rules, and even after the loss, I still stayed disciplined and cut my size. Like I said I would, and I still focus on trading the charts with smaller size on CEO TX and other related tickers, such as Lake and nm VC. But of course the subsequent wins are a lot smaller in comparison to a CEO, TX loss, but the point here isn't to make back the loss right. The point is to regain my confidence and focus on trading well, and for that I'm actually proud of myself.

I know it might sound ridiculous to some people, but please hear me out, of course, I'm sad about the financial loss in my account, but I'm proud of the fact that I still stuck to my discipline after the fact and I didn't balloon - that loss into even Bigger five-figure or six-figure losses. So, if you're in a similar situation where you took a loss during the last few weeks because of a sector hype, you are not alone here and you're, definitely not the only one losing. But if, after the back loss, you can still fall back onto your rules and stay disciplined, then you deserve a pat on your shoulder, and just so you know that you'll be okay and at the same time, if you broke a lot of rules last week during A sector hype and you still came out ahead mate money. I would be very cautious going forward because in the long run, breaking rules here and there and having these bad trading habits and trading party and still coming out the head and making money that could lead to the mother of all losses where one loss will wipe Out the entire account, I'm only saying this as a cautionary tale, because I've done that myself in the past, where maybe I can get away with adding to a loser a couple of times and not respecting my stop and just you know, let us see what happens And a lot of times, I've got away with it in the past, where I either break even or even made some small gains on the trade and yeah.

We can probably be pretty lucky with it and get away once or twice. But what happens when that luck runs out in the third time that happens? That's when I used to give back weeks or even months of profits, and if you followed your rules and still lost money. Many people might disagree with us, but I think that's still a good trade, because in the long run planning your trades and training your plan, it's what's gon na get you ahead in this game, and that brings us to. The next point is that everyone's wins and losses are gon na, be relative right.

So that's a you're making $ 100 that they consistently and during them. Last week during the sector hype you made $ 500 a day. That's amazing for your own performance and your share size. That's considered a big win, but for somebody using ten times or a hundred times your size an average day, it could be a couple thousand dollars so for their account size, a big win for them will be probably in the five figures but at the same time, A small loss relative to their accounts will probably be a couple thousand dollars, but a big loss would be five figures or even six figures.

The point I'm trying to make here is: don't compare your chapter 3 to someone else's chapter 20: everyone's wins and losses, whether it's considered small or big, it's all relative to their normal share size and their account size. If you see someone else's big, wins to and decide to double or quadruple your normal share size tomorrow in order to imitate the same kind of winds that could lead to a lot of trouble. Like I said after a big loss like this, I either size down or walk away in order to keep my emotions in control. If you're curious about the exact trades and executions, then you can check out my recap, video on that.

So last Thursday, after closing out all my trades and come out with a realized loss that cost me entire week's profits. Of course I was frustrated and I'm sad, but at the same time I was very composed - and I know exactly why I needed to do and that was going out to eat a fat ball. Ramen, no joke eating. Good food always helps with healing my soul.

So I went to pick up my friend and I told her hey. I just had a really bad day trading. I lost a lot of money. Can you pay for my ramen and I'm so blessed to have friends as supportive as she is? Was she look at me straight in the eyes and said no babe go get a real job, so eating good food with supportive friends definitely helps but, of course, we'll eat after we work out.

My friend is also my pole: fitness buddy, where we go work out and bring on a sweat, it's kind of like the pain from working out can slowly replace that loss after losing money in trading. So that's personally how I recover from a very red week. I go work out and I eat my heart out. Everyone takes losses in trading, whether we want to admit it or not, and we all have different process of recovering whatever you need to do in order to prevent yourself from trading on tilt.

I hope everyone had a good week trading, this crazy sector run and if you made money, congratulations even if you just make a hundred dollars last week, you did a lot better than me at the same times as situations like this is where we need to keep Our ego and confidence in check as well and always reflect on your trading habits, whether you made or lost money because a lot of times the big losses come right after the big wins amazing job. If you were able to take advantage of this crazy run, it makes some big money, but if you lost money trading last week, just know that you are definitely not alone, and I really hope that this reflection, video, I'm sharing about my big loss, really help you Out I have a lot of fun, making all my YouTube videos in the past, but this is one for the first time it's difficult and it's definitely not fun to make. But I also think it's a necessary video to make as part of my own personal recovery from that big loss, and I also think it could be very beneficial to put some reality check out there for other new traders. Thank you guys for watching.

As always, I'm the humble trader and I'll see you guys next week.