That's just me pretend typing like I'm making you a reservation for a i don't know flight somewhere. So I thought I'd come on here and talk about my biggest loss and my biggest recovery. This has been a crazy month. Today is the last day of the month and I am while my P L is on the screen.

I'm up 22 000. Today yesterday I was up 207 thousand dollars. I had an amazing trade on Gamestop and I'm going to be finishing the month up. Let's see in gross profit on the month of February.

Uh well. I was at 394 000 coming into today. So a little over 400 000 in gross profit and that's from being down 300 grand at the end of the first week of the of the month here in February. Uh, the first week of the new month and I lost 300 grand.

It's the biggest loss I've ever had. I had the biggest single loss single trade loss I've ever had which was on you can see here 240 000 loss on Cpsh it was. It was brutal. Um, I bought right into this.

Uh, we had a halt down, then it ripped back up and I got in with huge size for the squeeze through 30. Halted back down and got out way down here at the volume weight average price. I lost. Uh, four dollars a share? No five.

Uh, let's see I was in at 29. I lost six dollars a share on 40 000 shares, 240 000. It was brutal. Um, so I want to talk a little bit about that because that loss was a failure and mindset.

Not a failure in strategy. It was a failure in my mindset. So what happened for me? And you know I think that this is super relevant for a lot of, uh, you guys out there, a lot of beginner traders out there who have had some huge losses. Whether it was on Gamestop or it was on any other stock, it doesn't really matter if you've ever had a huge loss.

If you had a huge loss today this week this month and you are still struggling, this video is for you. Uh, so what happened to me to sort of set some context around this and what I would encourage. Um, I'm actually gonna, uh, I have a gummy bear. so there's actually some science.

Um, that little red gummy bears like this actually help you think better. Yellow gummy bears like this help you trade better, and green ones like this help you sleep better. So put these away. So this is what happened.

This is the story of the worst month of my career, which became, uh, actually a great month. So how did it start? Well to set the stage, we began, Uh, in January. Go back here. First two weeks of the New year.

I lost 150 000, 150 000 gone in the first two weeks it was A that was the worst start to a New Year that I have ever had. I'll go. Uh, split main screen here. So basically they're so chewy.

Hang on. All right. they're really chewy. that's what they say.

and that's what they don't tell you about. gummy bears. They're so chewy. All right.

Three was too many. Okay, so what happened in the beginning of January? Uh, it was the worst start to a year that I've ever had. I have gone red before at the beginning of a new year and it's always. It's always disappointing when that happens, but it has happened before.

it actually happened last year. Last year I started the year in the red, I was red January. I usually will allocate. I'll go back to split screen since I'm talking more than showing anything.

So I usually allocate two months a year to be read. If I have two red months a year, I'm really okay with that. I that's not outside the norm for me. It's not really.

It's not really a problem. Uh, I I can have two red months like I did last year and still be up five million dollars. Oops. I've got my echo coming through so you know it's just not great to start the year red.

And so that happened last year. and then February was good. March was a struggle again, and then April May, June things really started to pick up. Uh, so this month or in January what happened was, Uh, you know.

First day of the new month, I'm up 30, 24, 000. second day of the new month, Uh, I'm down. Uh, 24 000. third day, I'm up 19.

Fourth day, I'm down. I'm down 38 000. fifth day, I'm down 25 000. So two back-to-back red days and those are both pretty big red days.

I mean, you know, 38 000 and 25 000.. So now I'm red on the year for sure. I bounce back 31 000 on Monday the 11th and then and you can see there on the main screen if you want to see a little bit better. And then on Tuesday the 12th, I lose 60 000.

Wednesday the 10th. Uh, Wednesday the 13th. I make 10 grand. And then basically after those two red days in the first 10 days of the new year, six of those days were red and I was down 150 grand.

I'm going to open this into a new tab here. So uh, this. uh, we'll just go right here like that. Oops, Sorry.

So this was my first two weeks of the year. Now I'm setting the stage here for you because this is this. This is what affected my mindset and this is what then led to the huge mistake that I had. Um, of course, going into February.

So right here, I'm down 126 000 on the year. All right. So I'm down 126 Right there we go into the second week and what I decided to do here. I had some sessions with Uh Ted For those that don't know, Warrior Pro students.

you guys know this. but Ted uh runs our trading psychology program here at Warrior Trading. So when I when I got married, um, the first time, uh, I was in my 20s and before I don't remember when I started seeing Ted, but it was. It was right around then and you know I was having problems with my relationship and I was trying to learn how to trade.

I was broke, I was not making money, I was struggling. Uh, my relationship was. There was a lot of stress there, there was a lot of pressure on me to make money, so we could, you know, live a nicer life and I started seeing uh, Ted, who's a um, you know, does this type of stuff for a living up in Vermont And pretty quickly the conversation shifted from my marriage which was really struggling due to just inherent foundational like fundamental differences in what we wanted in life. And so I think probably within like a few sessions he probably knew that I was we were going to get divorced and so the conversation then switched really to this trading because so many days I would come in uh, at like one o'clock or whatever it was.

it was like one o'clock on Friday that I would see him and I would. I would go in and I would say Ted, You know he'd say how was your day and I'd be like well I just lost five thousand dollars Today it's Friday, I'm pissed, I feel terrible and he'd be like all right Well let's talk about it And so trading became basically the topic each week. And you know? Anyway, so I've been working with Ted now for 10 years and he has seen me go through so many ups and downs. So at the beginning of January I set up a session with Ted.

uh, Warrior Pro students. You know Ted does sessions for you guys on Mondays and on um, on Fridays. Uh, but anyway, so uh so I had a session with Ted and you know I was like all right I'm I'm getting really stressed out here. I'm feeling a lot of pressure.

I had a great year last year, but just like you know, a quarterback Tom Brady. you know not to compare myself to Tom Brady, but you know I will. I guess you're only as good as your last season, so you know, Yeah, you had a great year last year Now you gotta. You gotta start over and having such a fantastic year The previous year for me, uh, sets the bar really high and I came out of the gate swinging and then now I'm down 150 000 or whatever it is in the first two weeks of the year, I'm down.

You know more than I mean if I if I made 150 000 in one year and just was done. I mean to me that's not really. I guess a ton of money right now today. But all things considered, that still being green, that's still being profitable.

So the second I went red on the year I started feeling like oh my god, this is crazy. I need to get back to Green. I can't be read on the year. This is unacceptable And he was like russ, let's sit down for a second.

Let's talk about this. This is your emotion because now you're starting to get desperate. You're getting this desperation that I need. You need to make money that I need to hit winners and I need to make it by the end of this month because I can't finish this month read.

He said, well what if you finish this month Red? What does that really mean And I was like It means I'm You know I've got. I post my broker statements. It's the the broker statements are going to be read. It's embarrassing.

You know people are going to think I I'm what am I doing, I'm an idiot. He's like, well, okay, while he may, I may not agree with that. This is Ted's voice. I may not agree with that.

If that is true in a very small narrow view of one month, what's also true and you know bigger picture. What's also true is you know I did have a good year last night last year. What's also true is that what's probably more important than me grasping at straws to try to hit a big home run is just focus on being a really good teacher every single day, being a really good educator for all of my students. So let's focus not on the number, let's focus on taking good trades.

And so for the rest of January I took a piece of tape and I stuck it over my P L and I didn't look at how much I was up on the day. I didn't look at my profit and I actually I did it just for the rest of this week. I ted said, can you do it for four days for four days? Can you trade without looking at your profits? Just literally trade just for the sake of taking good trades. You know, and the profit will be whatever it is.

If you're green, you're green. If you're red, you're red And I was like i can't do that. What if I'm how do I know when to stop? What if I'm up a lot, is that the time I should be more aggressive Or what if I'm down, How do I know when to stop And he's He's like you're gonna know just by the fact that you've taken a couple trades that were losers and you're starting to feel frustrated. Stop trading.

You don't need to know how much you're down, You'll know you've had a couple losses and so I did it. And I ended up what that effectively did for me by not looking at my P L for four days. just four days. It brought the emotions back down because I was really emotionally charged back here on this Monday, you know I took 55 trades not looking my P L.

I was still emotionally charged and then the next day was a little better, The next day was was even better and then the next day was better as well. So after four days I was like, okay, I know I've had four green days in a row I think. At the end of the day when I was doing my recap, I was checking my P L, but I wasn't looking at it while I was trading. and then the following week I continued to do well.

Monday and Tuesday and then into Wednesday and Thursday and Friday gamestop. It was actually Tuesday, Wednesday, Thursday, Friday and I was get. I got up at 4 00 a.m on two on Wednesday, I got up at 4 A.m again on Thursday and I got got up at 4 A.m on Friday to trade that pre-market action and at that point I was firing on all cylinders. I was really in the zone and I traded really well, although on this Friday I was down about eighty thousand dollars pre-market before I made back those losses, which was not great.

I finished the day green, but that was sort of a caution flag going into the first day of the new month February. Uh, I unfortunately, let's see. Um, so there's the first day of the new month. So the first day of the new month I started the day up 80 000.

For those of you that recall, I mean I had a couple of awesome trades early, pre-market and into the open. I actually no, not even pre-market just into the open. I I did really well and then in one trade and I'm I'm I don't remember which stock it was now, but in one trade I lost 50 grand and I went from having this feeling of i'm up 80 000 on the day. This is an amazing start to the new month to oh my God.

I'm up only 20. and it felt bad It it felt bad, you know. I was upset. I was frustrated and I knew that I should stop trading.

I knew that I should just walk away, but I was. I was so frustrated I I didn't and so around I don't know. 12, 30, 1 o'clock I took a couple trades and I lost and was up. only 15.

Took another and was up 21. took another and was break even on the day I took it. take a couple more trades and now I'm red. Twenty thousand and now I'm livid.

I'm furious. I just went from being up eighty thousand on the day to down twenty thousand on the day. Gamestop is selling off after hours. I'm sitting on my laptop, I'm not in my office, I'm over at the house and I see it down in this area.

This is where I was in my trades and it broke through. I want to say 200. Um, I think it was two hundred dollars a share. I mean it was a hundred dollars a share I can't remember.

Anyways, it broke through this critical level. I tried to do a dip trade for a reversal and um, instead of buying 250 shares, I bought 2500. then I doubled to five thousand thinking I had only five hundred. Then I looked, I was down ten dollars a share.

I was down fifty grand with five thousand shares and I said I was like are you kidding me Right now? That means I'm down like 75 000 on the day And so I hadn't intended on taking 5 000 shares after hours at five o'clock but you know it happened by accident and so once I was in the trade I was like all right, Well I guess I'm just gonna I'm gonna trade my way out of this. Added another 2500 shares, had 7 500 shares and lost lost over a hundred thousand dollars on that trade. Finished the day down 94 grand. Biggest red day of my career.

First day of the new month. I was pissed. First day of the new month 100 grand Biggest red day of my career. So that was five o'clock That was like late kind of.

when it happened the next day I traded a lot but only made 13 000. this was not a great day for me. I was spinning my wheels and I was so frustrated. The next day I was up 32 000.

that was a little bit better the next day. february 4th, my birthday and on my birthday I took a couple trades and I was up about 20 000. Right there I was up 20 grand. 27 000 I think.

And then in one trade I went here from up 27 and I'll just I'll zoom this in so you can see a little bit better. So um so right here I went from up 27 on that dip right there I was up only. uh half. So I was up like 13 and then I took a loss and I lost 30 grand and I was down.

Now um about 25 000 on the day And at that point I was furious. Again, I was so angry I was so furious I was like this is now I'm back to basically giving back what I had just made in the last two green days. and um, it was my birthday and I really wanted to finish the day green. And so what I did in that moment right here was I jumped into two stocks at the same time.

One stock starts popping up, I jumped into it, another stock starts popping up. I jumped into that two, I jumped into two at the same time and I jumped in with full size. I used all of my buying power. I was basically full emotion and again, this is that is not my Strat.

That's not the rules of my strategy. That's me now going completely off the rails of following the rules of my strategy. Now at this point, I'm just trading my emotion. I'm just trading my B L.

I'm trading. It's that it's my birthday and I want to be green. And so at that point I had, uh, I think it was 40 000 shares on the one stock Cpsh and on the other one. I think I have.

I don't know. 25 000 shares or something like that. I don't remember but I had full size on both positions and I was looking at the two rows. Um, sort of right right here and well let me close this.

I was looking at these two rows here where on this side it shows me my position and so I I crossed the two stocks. Basically I was looking at the level two for one stock and I was looking at the position for the other. And so as I was pressing the buy button, the position wasn't changing and I was like what's happening, why are my buy orders not getting filled And I was so emotionally hijacked that I didn't realize the position I was looking at was the other symbol And so I bought 40 000 shares of Cpsh without realizing I had bought that many. And then it didn't halt going up.

And um, where was this? It didn't halt going up and in fact it halted. Uh, going down. And I lost six points on 200 on 140 or sorry. I'm 40 000 shares and it was the biggest loss I've ever had.

It was. I didn't even realize how many shares I had. So in that moment I was completely emotionally hijacked and I think the the value in it I guess happening to me is that I'm able. I've been able to articulate what happened after the fact and share it with you and I hope that it can be a reminder to you that it can happen to anyone and maybe it's happened to you.

And you You know exactly what I'm feeling and what I'm saying and you I I want you to know that you're not alone, that this is something that I know the pain of as well and it's very frustrating. It's very upsetting and so I finished that day down over 270 or 268 thousand dollars. Whatever it was. So at that point, uh, having of course just had the big loss the day before or two days before on that Monday.

Now this is where I'm sitting. I I lost ninety four thousand. then I made back forty thousand. Then I lost 268 grand.

So as of that moment, right there this was my P. L. I was up 550 000 on the year. All right.

So life is life is still good I suppose. But I had gone from up 866 to 550 and so my draw down was showing down 316 000 on the month, 316 000 on the month gross profit. That's the biggest red month. I've my biggest red month right now.

Um, is. I believe it was last year in November. So let's go to November of last year. Um, let's see 11 31, 2020.

So November last year I finished down. No, it wouldn't have been. um um no, maybe it was October or I don't know. Anyways, I guess it doesn't really matter, but I think my biggest red month is around 30 000.

So to be down 300 grand is horrible. And so at that point you know I sort of felt like what I had been doing to try to recover the losses in um, the previous couple days didn't work. You know, I recovered it. But I was still so emotionally fueled that I went right back into the hole here.

and on Friday. on this day I don't remember. I think I was red and then I recovered and finished green. And then here I was red.

then green. then green. then red. then green.

So by the end of this week I was still really. it was still really raw. I was still really. I was like man, you've recovered a little but this has been so bad And so again, you know.

Sessions with Ted each week during this, um, during this streak, this red streak and we were talking a lot about whether or not. Well, two things. Number one, you know. For me, trading this last year has become more stressful because I've been trading with a larger share size and so the the losses have gotten bigger and so the bigger losses, uh, has of course created more stress.

Now you know those losses come with the territory of trading with bigger size. and I've also had bigger winners in the last year. So one question was, does it make sense for me to reduce the emotions by going back down to small size And I was initially really hesitant to do that because I felt that you know, if I go to small size after losing 300 grand, it's going to take me. You know, it's going to take me a year to make that back.

I'm gonna have to sit here for a year thinking about being down this much. So my feeling was I have to actually increase my size. I've gotta trade with bigger size. at least until I make back those losses.

And I was able to acknowledge that that was going to only fuel a continued downward spiral. And so what I started doing um, this week, and which I was better at in the following week was What I recognized on some of these days was that in the first two trades, I was hitting my max loss. I: what day was it? I think it was in, uh, this Thursday First two trades, I was down 30 000 on the day and I was like okay, I am coming in swinging way too hard. I need to start the day with smaller size.

so kind of My happy medium was. Let's start the day with smaller size and get green. And then as soon as I cross over ten thousand dollars, I'm going to reduce my share size. As soon as I cross over 20 000, I'll reduce my share size again.

and then as soon as I cross over, you know, 30, 40, 50 000 I'll keep reducing my share size. That way I don't put myself at risk and thank you Donald for sending this. I'm not going to put myself at the risk of, you know, big winner with twenty thousand bigger winner with forty thousand bigger winner was sixty thousand and then huge loss with 80 000 shares because those types of days are horrible where you're you know, green, green green green and then one loser. Give it all back And so what I decided to do was use that scaling strategy which is different from what I've done before, so what? it actually ended up meaning was that on my first trades, so I might, I'll just make it closer.

So my first trades with maybe 6 000 shares, 30 cents, I'd make like 1800 bucks and then on my second trade with 9 000 shares, maybe I'd make like 3 000. and then on my third trade with 16 000 shares, maybe I'd have a bigger winner. but now I've got a cushion. and then once I cross over 10 000, now I'm reducing my size.

Uh, and what it ended up was at the top. I would sort of have smaller winners and then sometimes a loss. But I wasn't going like this and giving back like half the gains or almost all of the gains. And so that made a huge difference for me Because I, I just realized that what was happening was that when in one trade, I was giving back my whole day.

Which let's look back. What was the trigger on this Monday? The trigger on that Monday was in one trade right there, giving back more than half of my gains. What was the trigger on this Thursday? Thursday the fourth? the trigger was in one trade giving back half of my gains. So how can I stop myself from giving back half of my gains? And it was by reducing my share size as I went further into the day.

Now it's true that starting with smaller size, you know if your first trade ends up being awesome and it's the best trade of the day, you're not fully maximizing on it. But the fact is, from that starting point, each day, we all start at zero. You know? So we all start right there at zero. And it's that first trade where you have the max exposure to potentially hit your max loss in one trade.

And so since you don't want to do that your first trade. I was choosing to trade with smaller size, so if I did go red, I would only lose a couple thousand, Two thousand, Three thousand. and then I could keep trading with that same small size. And that would afford me more.

like three losers in a row. Before I was even down Ten grand. And now I mean, it's certainly possible for me to have three losers in a row, but it's not that common all things considered. So uh, so in this case, I have.

let's see one, two, three losers in a row worth of space. Then as I start to move back up, if I can get to Green, then that's great. If I can get up to my daily goal, then I can start to well. As I get towards my daily going, I start to get a profit cushion.

On the day, I can start to increase my share size so that for me has been um, one of the techniques I used. So you know a couple of the techniques, I'll just kind of write them down here. So number one, um, hiding my P L. So that was the first technique that I used to help reduce the emotions.

I will say that it does feel like a pilot flying blind. You know it feels really hard to be to not know my altitude. Um, not flying blind, but to not know my altitude because if I don't know how much I'm up, I don't know whether or not I should start to reduce my reduce my share size. I don't know whether or not I have a cushion.

If I'm on a day where I'm doing really really well, then I'm going to try to be a little more aggressive. You know I'm going to try to put the pedal to the metal because I'm I'm doing well. So the the altitude or the the P L on the day is an important metric. but when emotions are really heightened, hiding it can bring them back down.

Then the second strategy that I used to bring myself back into a more even keeled mindset. Recognizing that mindset was my biggest problem in January and February and that I was not, I was in a mindset of desperation of high pressure of anxiety and I wasn't trading calm, cool and collected. I was being way too aggressive. You know, I was just so.

that's not. that's not good. So then the next step is, um, number two, reduce size Which I did. I set.

um, I had I set a max limit on my account size in terms of my share size. so I reduced my share size and then I also started scaling with a warm up, warm and then cool down kind of sizing regimen where I would go from 6 000 up to 20 000 and then back down to 6 000 as I started the day And then I was a as I was finishing the day and I even am doing that still now. Uh, a few weeks. Well I mean today is only two weeks later, but I'm still doing that.

Uh, I'm doing it. In some days I just stop. I don't really cool down, I'm just like, okay, I'm done. I'm happy with that.

Other days I really do keep trading, but with smaller size it depends on what the market's giving us. Today we weren't really getting as much so I was like I'm just going to call it quits And yesterday I also just was like I'm going to call it quits. But the days before that I was saying okay, I'm I'm up this much guys. I'm going to reduce my share size for the rest of the day because I don't want to risk giving back more than half my gains because even though I had said it as a rule, if you give back half your gains, stop trading.

What I didn't realize was that by the time I've given back half my gains, I'm already emotionally triggered. I'm already emotionally hijacked, I'm already upset. and when I'm upset like that, I actually wrote. I don't know if it was in this book, No, I think it was in the other one.

But I actually wrote down on the day where I don't remember which day it was. Um, it was one of these days in here I just started decided to start keeping a, um, emotional kind of measurement journal. And so what I did with that was I basically there you go. So I basically would write down after each trade how emotionally fueled I felt, if I felt like totally good, i'm feeling okay, or if I was starting to feel frustrated and on one of those days I wrote, I just gave back all of my gains.

I'm furious. I should stop trading now. But I'm furious and even though I wrote down, I should probably stop trading. I kept trading and then I lost 30 000.

I went from flat on the day to down 30 grand and I was like it was right there. You wrote it down. why'd you keep trading? I was already triggered. So learning this about myself, even this many years into trading is definitely interesting.

But uh, I I think that in different periods of time, we become more or less susceptible to emotion in our trading. and perhaps the pressure at the beginning of the year to try to get it off to a really good start. Um, increases the pressure for kind of all of us. and I just didn't perform well under that pressure.

So I had to bring out some of these tools you know, hiding the P L, reducing the size, scaling up, warm up, warm, cool down, and the emotional journal to just sort of get myself back to centered and what ended up happening. And it's kind of a whirlwind because it's surprising. But you know, we ended up having a really, really great week last week. I mean, Fantastic.

I made three hundred thousand dollars in four days of trading, and then, uh, this week here. Another absolutely fantastic week. So now I lost 300 000 in the first week of the month, the biggest loss I've ever had. And I made back 700 000 for the biggest recovery I've ever had.

And now I'm up about 400 000 in gross profit on the month. This is probably as good a time as any to put up my disclaimer as a reminder that trading is risky and most traders lose money. And it's not necessarily because the strategy doesn't work, it's because it can so much be because of your mental head space. So here's the challenge: How do you adopt the headspace of a profitable trader when you're not profitable? How do I get myself into the headspace of a really confident trader when I have no confidence because I just lost 300 grand, right? That's the challenge.

So the fifth thing that I was doing number five was mindfulness meditation and for me I found that to be really helpful. I usually meditate when I'm having when I'm in a red streak or I'm having kind of a like I'm just having a bad I'm not doing well. It's something I do to help me kind of get centered, try to get perspective, try to maintain my presence of mind while I'm trading that I have to walk away. Now I have to reduce my share size.

Now I have to stay focused on the bigger goal. And I kept reminding myself during, uh, during this period of time that I am still the trader who had this green week had this green month. Those of you who have traded in the simulator your simulated trading metrics. That's what they give you that I'm the trader who for a month in the simulator did this.

I'm the trader for eight weeks in the simulator who did this, proving to yourself that you do know something, it's a confidence booster and then saying the only way for me to recover is to focus on one day at a time. If I try to focus on making back three hundred thousand in one trade, the odds are I'm going to double the hole that I'm in. I'm not going to be grateful when I'm up 5 grand, I'm going to try to swing it for 20 grand and then I lose the 5 grand. What I need to do is take that 5 grand off the table.

Every single time I have it, I need to be ruthless and aggressive about just small gains. Small gains. Small gains. A hundred here.

A thousand there. Five thousand there. Six thousand there. 500 there.

Just keep taking those small gains as I get them. And so that's what I've done and what I said to myself as I was beginning the recovery. As you may recall if you were watching some of those videos and of course I did a video. I did a recap of the 260 70 000 red day.

About five minutes after the loss, I began a video which was my very raw recap of losing that. So if you haven't checked that out, I'll put a link down in the description for you guys to to check it out those on Youtube and Facebook. But uh, yeah. So right here I was like, listen, um, I'm at 550 000.

I don't think that I'm gonna start to feel like I'm myself again until I'm back to up probably over like seven hundred thousand. I think I need to make back at least half of what I've lost to just try to feel like you know the tide is kind of shifting back in my favor after losing 300 000 in one day. The fact is, I was not the same person as I was a week prior. A week prior to that before I had the 90 000 loss, I just had an eight nine hundred thousand dollar hot streak.

I was feeling fantastic. I was on a great hot streak, the market was hot, I was doing really well, and I was like wow, I'm gonna, I'm crushing it. I was very confident, and that confidence, uh, perhaps led to overconfidence when we get overconfident. At least when I get overconfident, and when I'm trading really well, I don't practice the meditation.

I don't hide my P L. I don't reduce my share size. I don't always warm up warm, and then cool down. I don't do all of this stuff and that's been a little bit of a problem because discipline is a muscle and if you're not exercising and practicing it every day, then in the moment when you need it, it's not there for you.

And so it has to be something that you really focus on every single day. So doing that meditation, taking the breath, and and this week actually I felt I felt quite anxious. Um, on Monday I felt anxious because I was like okay, you've just had a really good four days. I'm I'm nervous that that I'm gonna that's gonna fall apart.

You know I'm nervous. I'm gonna start getting overconfident Again, I'm nervous. I'm gonna have another huge loss And I was like tell myself I was like dude, you can you can, you are in control of that. You can reduce your share size, you know, trade more conservatively And so I I did trade conservatively for that, uh, kind of stretch.

I recovered about 75 000 and I was like all right, I've got to keep this going so you know another um, another few days. Another few days later, you know, a couple more green days and boom I'm I'm crossing back up over 700. And that was last week when I had one day where I made 117. So all of a sudden I was like wow that I I on that day I was like wow, that feels good.

Okay, that's what Hot Momentum is like. That's what it's like. And in that moment I was like man, if a stock isn't going really like if it isn't really hot, don't trade it. You know what.

Gamestop is a perfect example. Today it's up right now. Two percent on the day. Could you have traded it all day long? You could have.

It's had a huge range. I'm not going to disagree with you, but all things considered, on the daily chart, it's it's range bound and it's choppy. It's an inside day, It doesn't have news, This doesn't feel like the right stock to trade today. In fact, today, we didn't really have anything that was really, really awesome.

Now yesterday we did have game stop in the morning and I did really well on it. And we had game stop after hours on um, on Tuesday or Wednesday And that was fantastic. That's the type of stuff I want to trade when we have stocks moving quickly. Now, that's obviously an extreme example, but that's the type of stuff I want to focus on.

And so after that day, you know I was. I was reminding myself, just focus on those, focus on those big movers and don't trade the other stuff. You can afford not to trade the other stuff because when you trade that junky stuff, you just dig yourself a hole and it's just not worth it. And then uh, so coming into this next week, I was a little bit nervous.

On Monday I was like, as soon as you get green, be size it down, be very cautious, be very careful. And then on Wednesday when I got the news that Gamestop had surged up right here this was on Wednesday, my initial feeling was I was like god, no, oh my god, no, not again. I was. I was like, yeah, Immediately I was anxious and I felt like the roller coaster is calling me back.

And how can I? How can I not? How can I not? Uh, jump on. But every time I've gotten on that roller coaster of Gamestop, you know the last last trade that Monday was 125 000 loss or whatever It was right here a 70 000 loss. So I was feeling really nervous about getting back on that Gamestop wagon and I got home and I saw this crazy chart and I was like oh my god I felt so much Fomo and I was like okay, do I get up at 4am and so yesterday I I set my alarm for 4 00 am. I woke up at 2 30.

I was had a headache and my alarm, um didn't go off. I was 2 30 hadn't gone off yet. I went back to sleep. I then woke up at uh 4 30.

my phone had turned off so I was like okay divine intervention I wasn't meant to trade at four. I then slept till six, I got up and then I bought Um for the break over. uh a hundred fifty dollars here and we got that squeeze up to 168 which was great but I was nervous and on that trade on Gamestop I I knew that there was risk on it and uh you know it was. It was one that definitely made me a little bit nervous and I was like I could trade it with smaller size but I also felt like you know this is the time to step up.

So I said you know what? Focus on the best quality setups. Good quality setups for your first trade, get your cushion, get green and then if you've got a cushion You know keep trading, Get in the flow state. And and I did. but I'm I'm being very mindful each day when I sit down that I have to be really protective, uh, of my emotional state.

And I have to really try to avoid having a day like this because those types of days I lost 268 000 on that day. To be honest, it probably cost me half a million bucks. You know why? Because I was emotionally broken for the next week and a half two weeks. and think about all the lost opportunity from being emotionally broken from having lost my confidence.

The the lost opportunities are bigger than the actual loss itself. You know we had that crazy move on Sct Sckt. I totally under capitalized on that. I should have been.

I should have murdered that stock. I should have been up over 100 000 on it. and I wasn't This was one. This was probably even a cleaner Momentum stock than.

I mean, this was crazy. This thing went from 12 bucks all the way up to 36. but I wasn't in the headspace to really do well. I wasn't centered, I was cautious, I was timid, I was getting in too high, then I was getting out really quick.

So unfortunately, after a big loss, the only thing that can cure it is time. And so during that period of time as you cool down emotions, you have to be very protective of your emotional state. You have to hide your P L, perhaps reduce your share size, practice scaling up into the day and scaling back down, being really protective about the losses and not let yourself go deep into the red. Setting a max loss on your account and walking away before you get triggered.

It's not easy. It's not fun. Being a trader requires a very high level of perseverance. It requires you to be very resilient.

It is going to ask you to get punched in the face and come right back. And that's how I felt about Gamestop. I was like I'm tomorrow. I felt like I felt like a kid who on the playground is like meet me after school at four o'clock at the swing set and I was like okay here we go.

This is going to be a big fight. What's going to happen and you know it was that pressure and just knowing that it was going to be. It was going to be big and you know and that's that's the stress. So you have to be really careful after you have a big loss and you have to be really protective of yourself to try to prevent that from happening again.

And I probably I probably could have traded with smaller size yesterday on Gamestop. I think that I don't know. I I maybe was a little too aggressive on it because if my trades had gone the wrong way, I probably could have easily lost 50 000 yesterday and that would have been the second you know to last day of the month and then. But you do sometimes have to step up and take take some risk And for me, uh, it, that was the right move And it worked.

And so now we're at the end of February. I've finished a pretty miraculous recovery. But I'm kind of scared for the new month ahead because what are the last two months? Tell me the last two months tell me I'm probably going to lose anywhere from 150 to 300 000 in the next two weeks. So you know that's that's kind of a scary feeling.

Uh, as I come into the new month, that I'm coming right back into this same window where I keep screwing up. So what's the game plan for tomorrow for Monday? What's the game plan? Knowing that I'm coming into a period where I seem to have a higher risk of of of risk, Well, a higher risk of loss. Well, I would say that perhaps I should approach the first week of the new month the same way as I've been approaching the first a few trades of the day. maybe for the first few days in March, I should actually conscientiously reduce my share size so that if I do go red which any day has the you know, a 30 chance I think for me of being a red day my P L: Um, when days versus lost days I'm I'm green 77 of the days.

So you know one out every four days roughly. Uh, one out of every five days is a red day. So given that, um, you know I, I should expect that I've got a one in five chance of being red on Monday, just like any other day. And after a nice green streak like this, it's certainly not impossible.

So what if I go in here right now and I reduce my share size? So I reduced my share size? Uh, When I was recovering from this big loss that I had had uh uh in the the beginning of the month, I capped myself at 50 000 shares after that loss. Um, now after the last two weeks I emailed Lightspeed and I said increase my max share size to i can't remember if I said to 75 000 shares. I think I said 75 000 shares because hey I had. You know, a few great days and I was like I'm feeling hot.

Let's I don't want to hold hold myself back. But now as we come to a new month, Um, you know I mean on the one hand, you could say that who cares? Don't just pretend it's not the beginning of a month. What does it matter? What is that? What does one month matter? This is your. It's March where you know you've got a million dollar cushion on the year.

Now I'm up over a million on the year. Just just trade. Just stop thinking about month ends. Um, and while that, uh, is true, I think for whatever reason, right now, psychologically, I'm having a little bit of a hard time truly embracing that.

It doesn't matter if I'm green each month. Maybe that's something I need to work on a little bit more. But given the fact that it creates this pressure for me, I'm going to reduce my size to 20 000 shares to start on Monday. I'm going to close that.

and I'm going to save this. And it's not to say that with 20 000 shares of something like Gamestop, I couldn't lose. You know, a lot of money because I could. But I'm just going to start with a with it kind of reduced there and I think that the game plan for Monday is going to try to be to see which is the obvious stock.

Do we have something that's obvious? Yesterday was only so so Today wasn't that great. So we've had two so-so days, so I don't I'm not going to get up at 4 a.m on Monday. I'm not going to even get up at 7 a.m to trade early. I'm just going to come in here probably around 8 8, 30 and we'll see what things look like.

It's the beginning of the new week. It's the beginning of a new month. These last two days were a little choppy. I mean, I, I know I did well yesterday, but the fact is, it was on Gamestop and Gamestop closed.

Weak. and nothing else was that strong. So given these last two days, we haven't had really good continuation or follow-through I'm thinking that it might be smart to scale down a little bit for a couple days going into the new month. And hey, if I get a cushion right away and I'm green then then that's fine.

But you know, if if not, then I'll be grateful that at least I'm trading with smaller size. I can always size back up. but I think that's the approach right now. And I think continuing over the weekend and definitely in the morning.

Uh, Monday morning, doing my meditation, taking those deep breaths, trying to be calm, cool, collected, trying to approach the market very centered. I will say that, uh, my, my strategy of trading momentum and and everything about it including the biggest ups and the biggest downs. It works. and that's reflected purely in the P L.

But I also think it's possible. So for my small account challenge that I began on January 1st 2017. let's just go back here. So January 1st 2017.

Uh, gross profit? Oh, come on. So 1 1 2017. So I started with 583 and I've grown that into 7.7 million gross profit. That's trading Momentum.

Buy high, sell higher. That is right there, a reflection of the Momentum strategy, but I also think it's possible. Um, it's and I actually it is possible that you could learn or that I could trade my Momentum strategy and lose money. And not because of any fault in the strategy, but because of a fault or an issue in mindset.

Because for whatever reason, it's your birthday and you're bent out of shape, or because you got in an argument. you know, with someone before you start trading and you just were really emotionally fueled. you had a short fuse. For whatever reason, you come into the day and you've got some baggage that you're bringing with you that sets your fees short so you don't have as much discipline.

And when things start getting tough and you're faced with either having to have the strength to close the day red or just give in to Fomo and keep chasing stuff, you give into Fomo and you dig yourself a huge hole. And you know. Look, you made a mistake. You took a loss.

a huge loss and you got to own up to that and it's going to take you time to recover. It's as simple as that. it's just going to take time. You're not going to make it back all in one day.

That's not how it works. You've had a big loss. It's going to take you weeks of discipline to make it back. It took me.

well, it took me about two weeks to make back that loss. Now that was a pretty fast recovery. That was a really fast recovery. But you know, for you relatively, maybe a 3 000 loss feels just as painful as 300 000 does for me.

and it may take you two weeks or three weeks to make back three thousand dollars at the rate of a couple hundred a day. And if that's the case, that's that's what it is. There's no shortcuts, you've got to just rebuild one brick at a time, and you've got to have the discipline to stick with it. And I I am a big advocate of trading less the longer you sit here every single day.

Decision, fatigue sets in your ability to maintain composure to maintain discipline. get smaller and smaller and smaller until finally you break, and then at the end of the day, you know at 3 30 you do something stupid and give back your entire morning, your entire day. You go from being up on the day to read. So I and right now because we're teaching, we're doing the Winter School program for Warrior Pro students.

I've had a pretty tight schedule where I really have to stop trading so we can start class and that's been good. That's been good for me. It's It's prevented me from doing some of the afternoon trading that I might have done otherwise. But in any case, figure out what you need to get yourself out of the office.

And actually what I did today is I said, uh, I filled up my cup of with green tea and I said, i'm not going to start drinking this until I'm done trading. This is going to be a reward for when I'm finished trading. because you know what, Right now, I don't feel like I need the extra caffeine. I'm already a little bit kind of anxious.

I'm already kind of, um, you know, ready to go. And I don't. I don't need to be jumping at stuff, I need to be calm and cool. And then as a reward for having a good morning, I'll have the green tea.

And that's what I did. And so once I started having the caffeine, I was like, I'm done trading now. Caffeine can, certainly, at times I suppose be a performance enhancer for trading. If you're you know, if the market's really hot, you need to really be in the zone.

There's nothing wrong with caffeine, but this was just a particular day where I was like, you know what? I don't need that right now. This is Friday. I need to kind of slow down and unwind and I'm probably gonna do the same thing on Monday. I'm probably going to do the same thing on Monday, so I hope this has been helpful for you.

This has been a little bit of a long video, but from down on the month 300 000 at my worst to up in 400 000 and this is in gross profit. So my broker statements will get posted to the website. Those will show my my net profit which will be inclusive of fees and commissions. so it'll be a little less than it'll be less than that for sure.

But in any case, uh, it's been a great month and I sit right now on. It's been a great month if you only look at the last two weeks. but it's been an interesting month and it's been an interesting year. And I'm up 1.2 million on the year in gross profit right now.

So I'm off to a great start this year. If I kept this up 600 000 a month, that's a seven million dollar a year. I'm not going to set seven million as my goal. I don't think that that's realistic.

I think that I should expect that I will have a red month at some point this year. I hope that I can keep it to less than 50 000. but I would expect to have a red month at some point. I would also expect that there could be a period of time where we don't have as much hot momentum and I'm thinking it might be during this summer because I'm concerned that people are going to start traveling a lot and not wanting to be in front of the computer as much after.

Maybe they have a vaccine and you know stuff like that. But in any case, I'm going to try to make the most of the market. That's right in front of us and I hope you guys study. I encourage you to be really cautious about how you approach this.

Most beginner traders lose money. I lost money as a beginner trader just like probably everyone, every other beginner and so with that in mind, you should approach this with a lot of caution. You should trade in a simulator before you put real money on the line and um, you should. You should try to really develop a strategy before you get into the market and start throwing real money at stuff.

So you'll develop that strategy through Sim trading. But for those that do want to join one of my classes, I'll give you a link right here for um, my free class. This is a replay of one of my popular Um workshops that I've that I've hosted. I'll just put this down here in the comments and I'll pin it as well.

If you'd like to register, you're welcome to I do. We host a replay of it and during that replay I have a couple members of my support staff that are trained and understand trading and can answer questions for you guys. so you know Obviously you guys understand that I teach classes, I trade and teach classes. These are my the two things that I do and I really enjoy doing it.

Some people will be critical and they'll say ross if you, if you really made seven million dollars, if you really made five million dollars or whatever it is you wouldn't teach, you know you wouldn't. You wouldn't sell this strategy, You wouldn't give it away. This and that and I think that that is kind of a I mean it's an interesting mindset. It on the one hand criticizes like every teacher in the world.

Uh, because teaching is something that some people genuinely enjoy doing. If I was a really good guitar player and I made a video series on how to play the guitar, someone would criticize me and say if you were really so good you'd be playing with like Aerosmith You know, if you were really so good you'd be on, you'd be on stage And some people they're calling is being on stage and really doing and performing. And and for some it's a combination of both. And I think for me I created this community because I wanted to surround myself with the type of people that were driven that really wanted to work to learn these patterns in the market and to improve their own lives.

and I was really turned off by some of the i don't know some of the stuff out there, certainly on like the message boards and it's just some of it is like just so hard to read through the lines of what's legitimate and what's not. And so I created this community. and you know, What I've honestly found is that by teaching I have become a better trader myself. It really has made me better.

If you try to teach someone how to day trade, even if it's your spouse or a friend, I guarantee you it's going to make you realize there's some holes in your own knowledge. They're going to be like, well, can you explain what an options contract is and you're like, well, an option contract? It's a well, it's based on a so it's a derivative Well, so the thing with an option contract and then you're like, I got to go back to the book so it makes you a better. It makes you better at what you're doing it For Me just articulating my strategy, documenting it, putting it into this curriculum Um has helped me better understand my strategy. It's helped my strategy evolve.

And for my students, for those that, uh, do, become that that are, you know, the lucky few that really learn this and really get it and become successful and become profitable. I've always wanted to give them opportunities to begin giving back, so that's why you see Jess who's a member of the 100k club. You know he gives back quite a bit. John has made over a million dollars.

he gives back to you guys quite a bit. And uh, for everyone that is getting that badge, you're in that direction. Being able to start teaching and and supporting people who are, uh, who are who are learning and you know the reality is creating this community, creating the website, building this chat room, software licensing the simulator, all of this, there's costs associated with all of it. and while some people might try to put it in a very low cost system that they could just give away for free when you take out the things that cost money, the real time data for the trading simulator or the mentor sessions or whatever it is, then what you're left with is basically a book or a Dvd.

And if you want to read a handbook on skydiving and then go jump out of a plane, you know more power to you. But I really think hands-on learning and being able to learn and then practice in controlled and safe environments is a much better way of approaching it. And so there's a cost related to that being able to have for us, a support staff that can answer your questions. I've got to pay their payroll so you know if you want to be a student here, we'd love to have you.

If you think it's you know, not worth it and you'd rather learn. you know, just through teaching yourself and watching videos. That's fine too. You'll get value out of this video on Youtube.

I hope you guys enjoy it, but I think that it's a longer learning curve when you try to figure everything out for yourself, especially when there's other people that really do know what they're doing and are happy to share with you what works for them. So anyways, I just thought I'd I'd throw that out there because I and invariably I always see people who are who make that comment, If you're really so good you, you would give this away for free. or if you're really so good, you wouldn't be even selling. You're just a you know, you're just a salesman and I, I really don't think of myself as that.

but you know, if that's someone's point of view, it's there. It's their right to have that. But anyways, so I hope you guys find value here. Uh, both in the Youtube videos, the Facebook videos, and of course for students in the classes and in the curriculum we've We've been doing a great job making our way through the um, the Winter School program, so this is.

We just finished chapter 10 today for Warrior Pro students. So uh, chapter eight was we That took us about a week to get through. Chapter eight is probably going to be about, I don't know. 20 hours, 15 hours.

That's a long chapter, but it's Momentum Trading so that there's a lot of content in that Gap and go Momentum reversal, short selling, high speed breakout trading, and so this is what we're going to pick back up. Uh, this coming week, chapter 11.. But of course, students that join, uh, the curriculum or join the The Warrior Pro classes. At any time, you can just jump in and start watching the archived replay of the last time I taught.

The classes live all right. So um, I hope you guys have a great, uh, rest of the day. Thank you for tuning in for what's been a longer video here. But um, yeah, this is.

this is the the story of my worst month. uh, and then my biggest recovery. Wow, it's really I. I didn't I didn't see that coming at all.

I I was totally expecting to finish red and I was like if I can just finish down less than a hundred thousand, that would be great. But I radical acceptance. I was accepting it And I said, you know what, the glass is still half full. I will rebuild this account.

It's one day at a time. Five thousand a day. You know? Is it going to take me 40? 50 days? Yes, I can do it though. and I did it.

so I hope that's inspiring for you guys. These are. We all have setbacks and you gotta get back on the horse. All right, That's it for me.

Thank you guys for tuning in and I will see you first thing on Monday morning. Live streaming right in the chat room probably around 8 30. you.