What's up everyone? All right? Well today is a red day recap. Man, this week has been a drag So um I already left the office I was like, you know what? I don't even want to look at my computer for at least until the Market's closed. Um so I've got my skis in the back, we've got fresh snow and I am gonna go enjoy the rest of the day. but of course I gotta give you my recap for the day.

So today let's see first trade of the day. Um well before I get into the details of the trades. Maybe I'll just cover high level that we're still dealing with these Bank stocks being really volatile and I think that they're a trap I really don't want to trade them I have taken a couple of trades on them but they don't feel safe I'm concerned about the risk of these of potentially seeing more Regional Banks go under uh I Hope that doesn't happen, but I certainly will not let myself be stuck holding 3 000 shares with 30 stock while it gets halted and then we find out it's been taken over by Regulators That's how you lose ninety thousand dollars I don't need that to happen I don't want that to happen so my average winners aren't ninety thousand dollars right now. so I don't want to put myself in a position where I could have that kind of loss.

And that means that regardless of how much opportunity you may think that these Bank stocks present. uh, for me at least and probably this is the case with other Traders the risk profile doesn't support taking a trade, so there's no trade. But here's the problem when the most volatile language earmuffs. That's well see.

That's a nice thing about um, driving in a sturdy um Swedish fish like this Volvo Uh, you know it's pretty tough. The problem is, we had a lot of snow recently and anyways, oops, hit something. but it's fine. it's no big deal.

so uh, sorry for the language. All right. back to what I was saying before. So the problem here is that when you have a stock, that's uh, you know these Bank stocks that I may not like them, but they are obvious they're liquid and a lot of people are trading them.

What does it create? dispersed attention, dispersed momentum, and less momentum across the board. Period. And So today's one of those days where we just we didn't see anything that was clean. and you know, Traders kept nice.

You know, just focusing on some of these big Bank stocks which I just can't trade. So if on a day where you sit down, the most obvious stock is a stock that doesn't fit within your strategy for whatever reason, maybe it's too cheap, it's too expensive. Risk profile? Whatever. it doesn't matter.

it doesn't fit within your strategy. But it is a stock that a lot of people are going to be trading. You have to recognize that you probably are not going to do as well as you would do on a day when a stock that fits within your strategy is also the most obvious stock that everyone is is focusing on in this. Trading So that uh is something to keep in mind.

Today my first trade was on Thmo a continuation stock. So the thing with um, Thmo and I actually so today I taught a class for warrior Pro students and that was one of the reasons I didn't have time to record a proper recap before I left. So in that class, it's a supplement to the new chapter 14, which is Ross's trading plan the trading plan that I would follow as a beginner Trader And so in that class I talked about um, obviously I mean a couple things I talked about the importance of stock selection and I lay out my full plan. But one of the things that I said is that you have to look really closely at your metrics because your metrics will tell you obviously what you're doing right, what you're doing wrong.

And so I gave a little demonstration of how to read the metrics because that's one of the challenges is you have you may have that data but you don't really know how to read it. So uh, so one of the things I like to do is be able to help with students with this in any way. So I was showing you how I read metrics and so I looked at a period where I was trading last month. It was a two-week period where I didn't trade very well I was I think I made a little bit of money but I was not not considerable for that amount of time.

And anyways, um, I was like, let's see if we can find in the metrics a possible reason a cause of why I wasn't trading so well and if we can find that then from the cause, we can build a solution. And one of the things that I noticed in doing that was that I was not making as much on stocks where the relative volume today was less than 25 percent of the relative volume on the previous day and this is a sort of nuanced thing and maybe isn't interesting to everyone. but um, but what that tells us that guy got his window smashed. What that tells us is that, uh, the stock is on a continuation day because while it's true that I wasn't making as much on stocks that were on second day continuation, I was still doing well on stocks that were five times higher volume than average and a stock being five times higher volume than average means it's you know, a fresh momentum stock, but that's five times higher than its 50-day average.

so it's going to be still five times higher on day one, day two, and day three versus a 50-day average. But on day two, it'll let's say it trades 10 million shares on day one. On day two, if it's trading only 5 million shares, then it's actually lower relative volume versus previous day. So anyways, from my metrics: I Noticed that, uh, unfortunately, it was after I had already lost money on Thmo, which was a continuation stock yesterday.

TMA Thmo was. it was weird. What was weird about it was it was really clean pre-market and then the market opened and it was just like it's like sideways. It was choppy.

It wasn't clean, it wasn't easy to trade, it was. It was really quite difficult and so then after hours four o'clock it rips up again. Okay, then pre-marketed squeezes until news comes out. Secondary offering, private placement, but an offering, uh, set dilution, selling more shares.

So unfortunately, um, this ended up being I think a nasty loss for some Traders because in one candle it dropped from like what was it, 680 all the way down to four bucks. Now bounce back up to over six dollars. I Don't know how much higher it's gonna go, but uh, it highlights the risk of trading second and third days. The risk both.

Number one. Uh, that the continuation days usually aren't as strong as day one usually except in a really hot Market But we're not in a really hot market right now, so recently second days haven't been as hot and then number two, the longer it stays at these elevated levels, the more risk you have especially with small cap stock of getting that offering. And that's what ended up happening today. So anyways, thmo I think I was down like 300 bucks on it is I was up 400 but then went red on it.

so down 300 to start the day. That was my first trade. Great in the red again same as yesterday. First trade in the red, second trade was on Lipo.

Lipo starts squeezing up. Day one: Fresh news. Okay, the problem was the spreads were big I didn't get in when it first hit the scanners because it was trading at like 190 by 222. Then it goes up to 230 240.

spreads get a little bit bigger. I got in around 275. I think it was. it goes up to three.

I took some profit at three. Uh, but I only trade with small size because the spreads were big and I wasn't really sure I made 500 on it. All right big deal. So I'm up now 175 on the day something like that and then um, that was so I was sitting there at 175 on the day and then a third stock pops up and hits the scanners.

It's the scanners and uh, had news uh I jumped in it again. volume was lighter, spreads were bigger. This one was a little bit of a problem because I got in when it was up only about 15 percent. Therefore, it was not at the top of the Gap scanner.

The top top gappers were like 40 50 percent and so I got in there. it went just a little higher and then It reversed and as It reversed. now it's not on the high day Moma scanner anymore. it never really got to the top of the Gap scanner and it just is a popping fade.

So I lost 1200 on that. So I finished the day down a thousand bucks and that's where I kind of you know I felt I was like man I feel frustrated I was read on Friday green on Monday break even on Tuesday which you know for me I more or less am like that might as well be a red Day Break Even is not green I think I was probably read like 50 bucks or something after fees and commissions. and then today's another red day and yesterday was a red day. So I'm like man I'm uh well at least the red days were small.

That's good. But I'm starting to get a little frustrated. Okay, feeling that emotion start to pick up and I'm like, you know what? This is annoying. The bank stocks are moving, they're taking attention.

Things are really choppy right now. You know what? Like all right, walk away, walk away. I Already had low expectations for today and I considered not a part of me was like why even trade it all until the bank stocks are kind of like you know, out of focus because they're they're drawing too much attention and that's diverting away from what I would typically be Trading So maybe just wait until this environment clears. But you know what I said about the 25 rule of uh, trading? It's a rule of thumb.

but um, it was this uh episode I uploaded uh over the weekend. Anyways, if you're last week anyways, if you saw it, um hopefully you guys uh, enjoyed it. but uh, the the long and short of it is that it's important to show up every single day because you never know when you're gonna get a stock that squeezes up like Ocea and goes from five dollars to 26 or 30 a share. So I show up every day.

Unfortunately, showing up and then having the willpower to not take a trade is easier said than done. And you guys know this so you know I see something popping up and may not be a quality you know? but it's it is moving and gosh, finally something's moving. I've been sitting here all morning. You take the trade and the next thing you know you're you're in the red.

So anyways, I'm glad that I was able to keep the losses small. Things are still pretty slow right now. It's a little disappointing, but uh, you know of course this is also trading and it's not green every day. That's just not the way it works.

So the fact right now it's just that we're dealing with the distraction and that's actually a good thing in a way. Because it's it helps understand the reason why it's more difficult when it's difficult, but you can't figure out the reason. That can be even more frustrating because you're like I don't know why I can't get a solid trade, but when there's something very clear that explains it, then it's just sort of an issue of okay, can you hang tight until things improve and and and that's what you really have to do because trade the market you're in, not the market you want to be in, right? So anyways, I will be back at it tomorrow I just have to make sure I can restrain myself if it feels tomorrow the same as it does today. I have classes I'll be teaching for students again tomorrow so you know I'll show up and I'll I'll trade in the morning if there's something that looks good or maybe it'll be a no trade day and you know I'd like to avoid having another red day, but you know at the same time, as long as I can keep the loss small, then it really is not.

Red days are not a bad thing and that's a really important and very difficult thing to learn and to really truly be able to believe. But like a red day today? Like where I'm down a thousand bucks? that is a success walking away before you hit Max loss is a success. Earlier in the year, I was either having a green day or Max loss and what that was showing was that when I was red, small red I wasn't walking away I was continuing to fight and that's not really a good thing. It's better if it's red if you're going red and the writing's on the wall to read it and step back.

So anyways, that's what I did today. Um, that's what I did yesterday. That's what I did on Tuesday and that's what I did on Friday So you know I just I'm a little bummed out that I haven't had a really solid green day since last Thursday where I was up. What was it? 10, 000 or 11? I can't remember.

but anyways, that was an awesome day. and days like today, you know, just chugging along and waiting until I Get that? wait until I Get that nice? Uh, you know, Nice nice stock that fits within my strategy. That is obvious and that's what I'm gonna size up all right? Well, hopefully you found this interesting. I'll remind you as always that trading is risky and my results are not typical.

There's no guarantee you'll find success whether you trade on your own. You'll learn from me, so make sure you're taking it slow. I Hope you're practicing a simulator before you put real money on the line. We're certainly in a market where, uh, gaining experience is still very possible.

but it's better to do it in a safe environment because it's this is not the super super hot Market that we've uh, that we've traded in during other periods of time. It's cold right now, so study up, gain experience, practice I Don't know when the next? Bull Market's gonna start might be later this year, might be next year I Don't know, but make sure you're ready when it does start so gain that experience with that screen time. right now. this is a good time to do it all right.

I'll see you guys first thing tomorrow morning.