All right everyone. So we're gonna get started here and I'm gonna get this um screen share up so you guys can see class for today. The topic is selling losers and focusing on winners I had asked people uh, when I taught my last class to leave some suggestions for topics you'd like to learn Down Below in the comments and that I would get to them. so I Incorporated a lot of the topics that you guys suggested into today's class, but if I didn't cover something that you want to learn, make sure you leave a comment of what you think you'd like to see me teach on down below and I'll add that to my list.

I've got a big list and then I try to kind of, you know, consolidate ideas into one topic class that I teach on a weekly basis. Alright, so thank you guys for being here today. Thank you for hitting the thumbs up! For those that are just getting tuned in, we're gonna jump in. and I think this is going to be a really good episode today because I had a lot of questions just generally speaking about handling the emotions of having a big loss and how to kind of bounce back and how to prevent spiraling.

And one of the big problems is Traders hold on to losers and listen I do it myself sometimes I'm not immune to this I've been trading for a really long time and I still sometimes get into this confirmation bias where I'm in a loser I don't want to cut the loss and then I end up holding it. You know longer and longer and longer and what it ends up doing almost invariably is making the loss bigger and then it also is costing me the opportunity that one of the next Momentum stocks could have given me like the gain because instead of looking for the next winner, I was just focusing on a loser. So what I want to encourage you guys to do is to cut your losses, sell that loser, and then focus on the next winning trade. Alright, so let's go ahead and jump in.

I'll go back and forth between my scanners here which you can see in the background in the charts and being in the the full screen of the class. I Prepared for you guys for today. All right. So um, the topic for today's class: The cost of not cutting your losers Number one.

Number Two, Focusing on winning trades Number Three Habits that support profitable trading and I want to give all of you guys a link to download my free technical Analysis toolkit so that link is posted uh, pinned to the top of the comments here. For those of you guys live streaming, it's also going to be posted in the description and in the comments down. Uh, when this video, you guys are watching it on replay, so make sure you guys check that out. If you want to get better at reading price action, you'll want to use that technical analysis toolkit that I put together for you guys.

All right. And by the way, uh, 2000? Let's see over 2 000 5 Star Testimonials reviews of Warrior Trading can't be wrong. So those you guys at some point want to actually get into my curriculum and go through the whole thing from Warrior starter Warrior Plus to Warrior Pro We'd love to have you guys check it out, but I know a lot of you guys just want to watch content on YouTube And of course I Love that you do that and that's fine too. So number one: the cost of not cutting your losers.

All right. So reminder: this is Momentum Trading that we're talking about right here. So Momentum Trading means trading a stock that's moving quickly intraday. This is not a strategy about predicting what stock might make a big move soon.

I Hear people all the time they're like, oh, check out this one I Think it's going to make a big move soon. Oh, you should buy this stock. It's going to move soon. It's gonna move soon.

It's going to move soon I've heard I've heard that a million times I Don't care about it I Want to trade What's moving right now today in Momentum Trading. It's especially important to be able to cut losers quickly because Momentum can shift quickly. You can have a stock that's the leading Gainer is moving up. Everyone's really dialed in on it and then all of a sudden another stock comes out with better news and it puts that stock that we were trading into kind of a shadow and everyone starts to focus on the new one.

So if you you see Momentum slowing down on the stock that you're trading, you may want to ask yourself, is it because momentum is Shifting to another stock and if you're still holding and hoping a stock that's dipping while something else is taking its place, you're going to be in for, uh, most likely a big loss. So in order to cut a loser in my opinion, you need you need to have criteria for when to cut the loser. So whenever I'm trading and some of this might be cut off by my video here a little bit, I'll move my video to the top Corner Maybe that'll help. Um, there you go.

So I had a plan for the trade. When I pressed the buy button I had an expectation for what I thought the stock would do and if the stock is behaving differently than what I expected, that is a criteria for cutting the loss and getting out. And sometimes that means cutting a trade before. it's a loss.

cutting a trade at break even just because you're like, you know what? I thought he was going to do one thing, it's doing another I'm getting out of this thing and that's okay. Number two if I expect a breakout, but the stock is going sideways, it's time to bail out. You hear me say that all the time breakout or bail out. momentum trading means often buying High selling higher.

So if you're getting in high and it's not breaking out, you're going to want to unwind that trade and you can always get back in later. Number three: New information comes to light that changes my risk tolerance or perspective on the trade. With new information I can make a fresh decision to cut the trade. So in the middle of a trade, perhaps there's new information that comes to light.

and maybe that new information is that another stock has just popped up that looks even better. and I'm telling you. imagine a playground and all of us Traders were all the kids that were at the playground. We're having a great time and we're all playing on the you know, monkey bars.

Whatever. And then all of a sudden a truck backs up and drops off a brand new whatever and it sits that plops it down in the side of the park and it's a, you know, a swing or a really cool, better, even better monkey bars. What do you think is going to happen? Everyone's going to leave the monkey bars they're on and they're going to go to the new thing. And so that could be new information that comes to light in the middle of my trade that is going to change my perspective.

So I gotta get out of the Train move on to the next one. Number Four, another stock is taking the spotlight. As a result, Traders are moving to the new hot stock I must shift my focus to what's moving. Okay, so I just kind of said that.

Also, number three as the example and number five, the stock is at my predetermined Max loss. Okay, these are all good criteria for cutting losers, but you need to set exit criteria before you enter the trade. If you don't know why your exit criteria are before you're taking a trade, you're bound to hold it longer than you should. If you're dealing with big losses that you didn't plan for, it's a result of either miscalculating risk which does happen.

Look, there's trades that I take sometimes where you know I get in a stock. Let's just say, for instance, at um, you know four dollars and fifty cents and there's a bid there 440. and then all of a sudden a block order goes through for 50 000 shares and it drops to four dollars. Okay, I wasn't expecting that to happen.

Um, you know some of that is just a miscalculation of risk. Some of it is just sort of the luck of the draw of trading. Uh, and that's you get better at calculating those kind of variables the more you trade. But most beginner Traders Dealing with big losses are dealing with them because they're not following through with their rules of when to exit a trade.

Now you can also have the issue of emotional hijack right where all of a sudden you know you should get out, but you keep holding and hoping because it's easier to hold in Hope than to press the sell button because as soon as you press the sell button, you know you're going to be red on the day, right on the week, right on the month. and you can't bear to possibly experience that. So you keep holding and hoping that the stock turns around. There's a a quote uh, from this book that some of you may have heard of called Quit and it's written by a champion poker player and she says when people when people quit on time, it will usually feel like they're quitting too early because it will be long before they experience the choice as a close call.

So I thought about that as it relates to trading. Exiting the trade using the subtle criteria that we just talked about means that you're out before a massive flush and there was a question that someone asked uh in last week's class about Ross how can I avoid slippage? And this is one of the ways that you can avoid slippage. When you're trading in areas where you're experiencing a ton of volatility, you're going to have more slippage. And so, for instance, if you buy something for a breakout And you get in just before the breakout, you'll have less slippage than if you're buying as the breakout is happening right? because as The breakout's Happening that's when the stock is moving very quickly.

so by getting in just before the breakout, your slippage won't be as bad. and on the inverse if you're in a stock and it's starting to not look good, getting out early before it flushes is going to be much better because if you're waiting until it finally breaks down, that's when you're going to get a lot of slippage on your exit. So I think slippage to a certain extent can be minimized by being early, both on your entries and on your exits. And it can't be avoided entirely.

Slippage is going to happen and I still get slippage Of course on my trades, especially on bigger positions, but it can be minimized a little bit. But the real thing here is this concept of quitting early. And and when I say you know I'm using the expression quit is like stopping out, just quitting. a loser bailing out on a loser quitting early getting out of that position early.

So when you spend your time focusing on a loser managing a losing trade, whether it's by averaging down or trying to draw new levels of support, you know, sort of convince yourself that as long as it keeps holding this level I can still hold, You are further investing your time and energy in a losing position. This can be part of the sunk Cost fallacy. So the sunk Cost fallacy is. uh, the the feeling that I can't quit now because I've already invested this much into it and if I sold now you know I'm going to take a loss on it.

People will have this, like all the time with like a project car that they're working on. You know they buy it for a little bit of money, then they start dumping money into it, and now they've put way more into it than it's possibly worth. But in order to really finish it, they're gonna have to put even more money into it. And you know, look, if it's really your passion, that's fine.

But in the case of a trade, it's better just to cut the loss right. because the more and I've known Traders who've gotten themselves into positions where they're holding a trade for weeks or months and that is tying up buying power. It's tying up mental energy. But even on an intraday basis, the time you're spending focusing on a loser is time you could be spending searching for the next winning trade.

Now sometimes I cut losses quickly and it's a brutal loss. A three thousand, four thousand dollar loss. But still the right move to cut that loss quickly because there's always another trade around the corner. and so if I cut the loss and I'm red on the day, maybe I have to sit with being read today because maybe the next best opportunity for a winner is going to be tomorrow.

but it's still better to close up the day red right here right now and and stop the loss, stop the bleeding, then to keep investing by holding that trade into tomorrow where it could potentially become, you know, a catastrophic loss. So many of us have an aversion to abandoning a trade because we're already invested, right? but if we've never taken the trade in the first place, it's unlikely that the place that we're adding to average down we would be like, yeah, that's a good place to press the buy button right? And yet you willingly average down when you're already in the position. So that just sort of is further confirmation that you're in a place of confirmation bias. or maybe some cost fallacy where you're having an inability to just accept the reality that this trade is not good.

All right, So you have to be ruthless about bailing out. Just cut it, let it go, it's gone. and I have a button on my keyboard that I press and just like that, I'm out of a trade now that that helps. Uh, and it also helps me get out quickly and get out early.

Traders who fumble at the exit who are trying to, you know, type up their order, then you miss the right exit and then all of a sudden it drops and you were willing to take the loss there. But now it's even bigger and it's like that can sometimes perpetuate the holding and hoping. So, making sure your workflow is kind of streamlined so you can exit positions quickly is definitely important. There's you know, traders who are asking questions about, you know.

for instance, how do I how do I trade pre-market on TD Ameritrade right? So how do I get in quickly, get out quickly on TD Ameritrade and it can be done. There are Traders doing it everywhere all across the country. Maybe I don't know internationally how many people use TD but you can do it and if you want I can put a link uh, maybe down in the comments for an episode that I did specifically on a tutorial of trading with TD Ameritrade. But in any case, you want to streamline your workflow so you can bail out quickly.

So there are days where on my first trade I go right on a stock I Expected the stock to do one thing, it did another I took a quick loss. boom and that actually happened today. My first trade I was down 400 and it was the right move to exit because you know the trade didn't do what I thought it would do. So um, instead of taking the quick loss, I could have kept holding and hoping that it would turn around.

I could have averaged down as well and if I did this, all my attention would have been focused on managing that loser. But instead I cut the loss quickly I set that stock aside and I wait for something else to pop up that looks good. Something else pops up that looks good. Boom! I Jump in that I'm up 700 on that stock I was down 600 on the other.

So now I'm green on the day right now I look for the next trade and maybe I'm going to keep trading that one stock that just got me green or maybe that one as the case was today kind of. Fades and then another stock kind of comes up. So I cut the loss quickly realizing the stock has very little chance of helping me achieve my daily goal and I immediately begin searching for the next stock that will offer that opportunity. Be ruthless about cutting losers because they don't deserve your attention.

Now let's talk about focusing on winning trades. So the true test of discipline is to be able to sit patiently in the red. And that's not just during a trade. It could be on a red day.

It could be on a red week. It could be on a red month. It could be on a red year. But to sit patiently in the red knowing that another stock will come along and that stock that next one is probably going to be your best chance at hitting your daily goal.

Certainly, it's not going to be to continue trading the stock that you've been losing on. So when that stock does arrive, I'll trade it. but I want to focus on only trading it on the front side of the move. So from the beginning of when it starts to pull away, you know first pullback, second pullback, but just the front side of the move when the Macd is pulling apart and then avoid trading it once it starts to pull back.

Now sometimes they pull back and they make a second leg up, but that's often a choppier place to be. Trading For those that aren't as familiar with a couple of things, I Just mentioned you can check out an episode that I taught recently on. um, let's see avoiding false breakouts where I talked about using Macd and focusing on trading on the front side of the move and you can check out another episode I taught recently on scalp trading or momentum trading. Both of those also talk in more detail about my precise entries and exits.

So um, now sometimes the stock comes along and I don't hit my daily goal on it. Maybe I just recoup some of the early losses and then again, once that trade is done now I set that trade aside and I look for the next one. So one of the things that I found is that on days that I go red and well, let me let me hold on that thought for one second. I'm going to come back to it.

So in the past, there were times where I would go red, I would take a trade, I'd go red and I would feel this sense of desperation to get back the loss I had just incurred because losing doesn't feel good, right? That discomfort calls for immediate attention and it calls for Action. So if I'm in the red down, whatever it is doesn't matter, whatever it is, I'm in the red. if I'm not feeling good about that, I have a feeling of discomfort. Our brain wants us to alleviate discomfort.

If we're cold, we want to put on a jacket. If we're hot, we want to take the jacket off. If we're holding a loser, what do we want to do? Well, we want to immediately no longer be holding a loser. And although Maybe you would think the obvious thing would just be to sell it, many of you guys already know very well that that's not what the brain decides to do.

The brain says, wait, I'm in a loser but there's still hope that this could turn around. So we either add to the position which is an action bringing down our cost average in hopes that it kind of turns around. uh, or we find ourselves desperately jumping at the next stock that moves. and with big size, the next stock that pops up I aggressively buy big position.

But now of course I have to sell it fast because I've mismanaged my risk if it keeps going higher I'm like oh shoot I sold it way too soon I could have made so much if I'd held it longer so then I get back in. But now my risk reward is even worse because I'm getting it even higher if I give into that impulse. the next thing you know I go from being green on that stock where I mismatch my wrist to Red on it and now I start to spiral and that can create a rapid spiral of going right down deep into the red. Loss after loss after loss with losses getting bigger and bigger and bigger and bigger.

and then you're so red on the day that you feel like you can't possibly bear it. and so then your thought is, well, if I just you know, put my entire account into this one trade and it goes up 20 or whatever it is, you know I'll recoup my entire loss for the day and the stakes can become very, very high. And this is emotional hijack. It is not your calm, cool, collected, rational brain that is doing the trading.

In these moments, this is where emotion has completely taken over and if you could have gone back earlier in the day and cut your loss sooner, of course now in hindsight, you would. but it doesn't work that way. However, from these losses that I have personally taken I can teach you this lesson that it is better in the long run to cut your losses quickly. And the comment there from Earth Explorer Well, that's why you use stops so many Traders set stops and then cancel them right.

Stops are only good if you adhere to them if you have the discipline to follow through with it. And of course not everyone does. But losers don't have to be mistakes. My accuracy is just under 70 and that's based on over 22 000 trades.

That means thirty percent of the time I Lose Losing is simply a characteristic of a winning strategy. For me, it is a winning strategy for me to take losses on three out of every 10 trades. A loss doesn't mean the trade was a mistake. It was a calculated trade with a risk to reward ratio.

and certainly of course no two, no two trades are identical. Some trades the loss will be a little bigger than I expected. You know some will be a little smaller. Some winners will also be bigger than I expected.

That's those are just of the variables, right? But generally speaking, since I'm wrong 30 percent of the time I better get really good at just being able to accept those losses. Chalk it up to another trade that just didn't quite work out and move on to the next trade. I Encourage you guys to really think about that. If you're not comfortable losing, you better start to try to get comfortable with it because losses are going to keep happening.

Even those of you who might find success long term in trading, you're still going to lose 30 percent of the time, most likely. so you better get really good at losing. Get really good at identifying your stop loss, your your bailout criteria and when you see it, you get out and you get out early before the loss you know gets bigger. So if I buy a stock for a breakout and it doesn't go, I bail out I can always get back in if a stock comes back up and proves itself.

Dip trading is similar. If I bought a dip and I'm expecting an immediate bounce, it doesn't happen. I can get out. So I have this example here: I recently took a dip trade.

uh I bought a stock that flushed down and I thought it was going to bounce but it went lower. So I stopped out and lost 20 cents a share on the trade. It actually dropped 50 cents lower so it went a lot lower I think I got in at like I don't know it was like 570 I stopped out at 550 and it drops all the way down to like five dollars. So you know my entry at 570 was too high.

but what I did was I got back in at like 5 20 and it bounces all the way back up to 570 575 and I got my profit on the way back up and so even though I had a loss on the first trade 20 cents, the profit of 50 cents on the second trade I was still up 30 cents net. Now if I had held that whole position and not cut the loss, I would have just been back to zero back to Flat from my 570 average. But because I cut it at 550, added back at 520 and then sold it when it came back to 570, I was up 30 cents a share I have to be willing to bail out. and I've had times where that exact thing happened where I got in for a dip, it goes lower and then I get a much better entry because you know I wasn't expecting it to go that low but it ends up going lower.

I got a much better entry and it comes back up. Now if I end up getting stopped out two three times in a row, then that's where I'm kind of like okay, this stock maybe just is not doing what I'm expecting. So I'm gonna move aside, but it's not a big deal to get stopped out you know, once and then get back in. That's not a big deal, it's getting stopped out twice in a row.

Three times in a row where I start to feel like okay I don't have a good dial in, you know, on the stock today for whatever reason. So now let's talk about the habits that support profitable trading. Of course, not everyone here who's tuning in has the aptitude to become a profitable Trader Not all of you are going to have the discipline to follow the rules of your strategy whatever your strategy may be, but these are the habits that I think support profitable. Trading Calm, cool and collected.

Trading requires a huge amount of discipline. The best way for me to be disciplined is try to allow myself to experience the ups and downs of trading without becoming emotionally triggered. If I can stay truly calm, cool, and collected. That's what I'm trading with discipline when I start to get frustrated when I start to get angry.

That's when I'm moving a little bit away on the spectrum of you know, Comco collected. it's it's not like you know Red Light Green Light it's it's it's a there's a spectrum and you know maybe I don't know in the middle is just very neutral and then you have very very angry and you have very very happy And and both sides of these emotional spectrums can create emotional trading and it can create mistakes and it can encourage mistakes. Hey girl, come here. So if I'm able to really stay calm, cool, and collected, that's what I'm trading with.

Discipline All right. So I find that if I'm starting to get emotional, if I'm starting to get reactive, that's the time for me to walk away. and maybe it feels like I'm quitting too soon, but that's still going to be the right move. So a couple of my triggers going below my max daily loss.

If I'm below my Max loss I'm frustrated I'm disappointed I can't help. but that's just how I feel I know that So my my Max loss right now is 5 000 on the day, there are times where I've had a Max loss that's been bigger. Uh, there was a time where my Max loss was 25 000 on the day and I could be down 15 on the day and still be totally calm, cool, and collected knowing that I had a good chance of recouping that loss and still finishing the day up 20 000 which at the time was my daily goal. We're in a market right now.

We've been in a bear market for the last year, so My my daily goals have gotten smaller. last year I finished with 1 million in gross profit which was a good year, but that's about five thousand dollar daily average 250 trading days in the year, you know. But then there's some losses anyways. So five thousand dollar daily goal: five thousand dollar Max loss.

But that's all subject to change. so for the that's what's at right now. So if I go below my daily Max loss I'm out and for what it's worth, my daily Max loss is the same as my daily goal if I'm up 5000 which is my daily goal and then I give back more than half. That is a big trigger for me to get frustrated and disappointed in how I traded and then if I have just poor accuracy.

If I'm red on you know four out of five stocks, it makes me feel crappy I don't feel good. So that's another feeling where when I start to feel that way I can be frustrated I can be annoyed and when I start to get frustrated I can get stubborn and when I get stubborn I can start averaging down and holding losers too long and taking size that's too big and that's when things can start to spiral. So you want to nurture your emotional intelligence I Want to try to spend time a lot of time understanding mindfulness and self-awareness It's important for me to be aware of my emotions as they have dramatic effects on how I trade each day. and I think a lot of people who struggle with trading struggle because they're not connected with the emotions that they experience.

they they just are victim to the emotions. They get angry and then they trade kind of aggressively and erratically and they don't have the realization that there was a point where they could have there was a fork in the road and so developing that self-awareness is important. but it's also important to be aware of Market Sentiment Emotions of other Traders are very important in how we see price action. Fomo fear, greed.

These create volatility in the markets. So if I can understand my own emotions and I can also better understand the emotions that other Traders are experiencing and those are the emotions that are driving price action. If I can understand that, I can better predict what will happen next. Now the technical analysis guide that I put together for you guys.

This is super helpful for you better understanding the technical levels of a chart. and when you better understand technical levels, you can also better understand the areas in a chart where emotions are going to come out. Emotions are going to come out when the stock is breaking out and squeezing up. Fomo greed, Fear all of those emotions when stocks are at extremes.

So being able to predict where those places are not going to bring in that volume is very important. So some of the habits that I have for Success uh, I don't have caffeine before or while I'm Trading. It gets me too amped up and it gets me disconnected from Market sentiment as I'm driven to over trade and be aggressive. So I personally need to be calmed down and sort of mellowed when I'm trading not amped up.

Now there's other people that might be different. so this is just for me. There's other people who might be so risk averse that they need to be a little amped up to, kind of, you know, take the leap. But for me, taking the leap was never the problem I need to tone down I tend to over trade so I need to kind of bring it back down.

Now when I'm teaching a class like this and I'm done trading, well, that's fine. I can have a green tea I can have whatever I want but if I start to have caffeine I will not come back for the rest of the day. It's almost like for me if I have that caffeine I'm putting like a uh, you know what's something that's like I don't know I'm it's like I have a hologram in my glasses like I'm like now I see everything Like all right I'm ready to like, you know, fire up and let's do this. and I can't think clearly.

So I'm done like that for me is if I'm having my green tea, it's a reward for a good day of trading. and I'm not gonna look at the market again Foreign I have periods of frequent self-reflection honest assessment of my emotions am I being calm, cool, collected am I getting frustrated Why am I getting so frustrated today and I try to really reflect on that and I can journal and I can take notes I can use Excel I can log have my daily trading log. There's a lot of different things that you can use, but this is important for I Think your emotional development: Frequent check-in with Market sentiment. What's the status of the leading Gainer Today How many halts have we had? Well, does the percentage gap of the leading gappers are the leading gappers? Hot.

Is the market feel hot? Because if it's not and I'm trading really aggressively, there's a disconnect I want to trade aggressively when the market sentiment is supporting that approach, but sometimes we get so fixated on I Want to hit my five thousand dollars today that we're trading completely independent from what's going on in the market And that means you're not trading the market that you're in. So part of that emotional intelligence is trading the market that you're in. Um, I stopped trading too soon on most days. Okay, now I know that I'm leaving money on the table I believe I often do leave money on the table, but I'd rather leave money on the table with money in my pocket than overstay my welcome I Leave early.

This is a trait that a lot of successful Traders have. while I have daily goals, I'm perfectly content to be slightly green, but well below my daily goal I don't love being read, Nobody does right I don't love and I do find myself more likely right now to hit my Max loss than to have a small red day. And I think that that's an area of self-reflection that I could work on Is being willing to accept smaller red days is like no big deal, but I still tend to find myself falling victim to being read and trading a little longer. try to recoup those losses.

So even though I don't have a lot of red days, I think this year I might only have two red days. Um, but in any case, which is great, you know I don't have a lot of red days, but they tend to be bigger. For me, that's just where I'm at right now. My accuracy and consistency is pretty strong.

I definitely have days where I go red and I recoup and I finish green. But I do feel that urge to keep trading when I'm red to try to make a good effort at recouping losses. and I know that I need to get a little bit better at saying hey, you know what? I'm down 600 bucks today. that's not a big deal and I think that I think that if I did that, I would find that I would certainly have more red days than I have now.

but I would have fewer Max loss days. But these are things that you have to be able to look at in your own metrics and make decisions. so those frequent check-ins are important. Red dates happen and it's important to know when the environment is not conducive to your strategy.

just like walking away from a poor quality stock, walking away from a poor quality day. So having that daily Max loss and adhering to it is really important. but this is always walking a tightrope. Being an excellent Trader means being so in touch with the emotions in the market that you can capitalize on them.

But that means you know also not falling victim to those emotions, right? Because you want to try to be aggressive, you want to kind of. When you see Fomo in the market, you want to size up so you want to capitalize on it. but you don't want to fall victim to it. and that's a very fine line that we can walk because next thing you know and you've crossed that line and now you have Fomo.

So I want to be able to size up aggressively when the Market's hot. I Want to try to push hard and really, you know, capitalize as much as I can on the opportunity. But I also recognize that if I trade too long in the day, I can suffer decision fatigue and I can sometimes fall into a place of emotional trading without quite realizing it happened. It was so subtle that shift so it's something to be very aware of.

and someone asked recently it was actually in the comments just yesterday. how do I gauge Improvement So this is a question I thought I would answer in this class as a beginner Trader It can be difficult for you to gauge Improvement I I get that. but I would look at the following: Okay, so obviously and this should go without saying, but you should be looking at your total profit or loss. You should be looking at your profit loss ratio.

your average winners versus your average losers. You should be looking at your accuracy. You know out of all the trades you took, how many were winners, how many were losers, You should be looking at your consistency, which is you know how many days and weeks are you green versus red? Using an Excel worksheet with notes on each trade, you can include the strategy so that you can then go back and analyze your percentages. Based on the strategy, you want to look at the frequency of Big Red Days Review why they happen.

You want to try to separate them as much as you can. If you find that they're happening fewer, they're fewer and further between. That's a good thing. the frequency of emotional lapses where you are falling victim to emotional hijack, emotionally impulsive trading.

you know Etc And you can find that from your notes. those are the types of things you want to be checking in with and you want to definitely be looking at. This is where I'm at today and this is where I want to be a month from now. Three months from now.

Six months from now. 12 months from now. So you set goals of where you want to see yourself in the end. I Really encourage focusing on the process, focusing on a quality setups and trading, less focus on process.

profits are secondary profits are a byproduct of a good trading strategy. Now you guys already know this. Of course many of you trade a strategy that's similar to me. You trade Momentum I am a momentum Trader I Teach my strategies through the warrior starter Warrior plus and Warrior Pro courses at Warrior trading so you can have a blueprint of the strategy that I trade every single day I Teach that to students.

There's no guarantee that it's going to work for you, but it is a proven strategy and it does work for me. So it's a good starting point right now. You may have to adapt it to your risk tolerance to your you know your sort of Personality things like that, the tools that you might use, the broker that you're using time zones, things like that, but it's a really good starting point. And then what you can do is you can gauge based on how other traders who are trading the similar strategy are doing.

You can say oh okay, other people seem like they did really well in this stock, but I didn't What did I do differently? What did I do wrong and you could look at me? you can look at my recaps and things like that. where did Ross get it and where did he get out? So you want to be really spending a lot of time focusing on dialing in your strategy and improving the process and you know this is one of these things that if you find this interesting, you don't have to do this alone. I Trade every single day I Live stream while I'm trading I'm providing Market commentary I'm sharing my ideas with all of our students at Warrior trading and you know I'm I'm really proud uh to be able to do this and to be able to give back and to be able to, uh, run such an incredible community of of Traders We've got some great traders in our community who all provide just really great content and great ideas. so hopefully some of you guys come and join us over at Warrior trading.

Um, I Do encourage you to study, study, study, Keep watching these episodes that I upload on YouTube I have so much free content here on YouTube that you guys can sink your teeth into. These are a few of the patterns of a momentum Trader that I'm trading you know on a daily basis and I want you to download those free resources. We put together this free technical analysis series for you guys. It includes the Gap and Go strategy, the micro pullback strategy, and Trader development worksheet, so check that out! There'll be a link for that right down below and leave some some comments of a topic that you want to see me teach in an upcoming episode because I do read all these comments and I put the ideas into a a sheet that I have and then I kind of sort through them and look at which ones are most popular and that helps me come up with new ideas.

So thank you for doing that I Hope you enjoyed this free class today I Hope you hit the thumbs up I hope you're subscribed to the channel and I'll remind you my disclaimer as always that trading is risky. My results are not typical and there's no guarantee you'll find success whether you trade on your own. you'll learn from me. So please take it slow and practice in a simulator before you put real money on the line.

And guess what, We have a simulator over at Warrior trading that many of our students are using. so I encourage you guys to come on over as a warrior starter Warrior Plus or Warrior Pro member and become part of the community. All right! Thanks again and I'll see you guys real soon.