What's up everyone? You can tell the lights behind me it's another Red day. This is our third Red Day market recap for the month of August And here's the really bad news. This is the fourth trading day of the month of August So you know this is obviously frustrating. We're gonna talk a little bit about it.

actually quite a bit about it during the recap today. You know this is: this is part of the job. As a trader, it's It's absolutely, without a doubt, the most frustrating part you know to really grasp just the fact that what's happening this week, it's gonna continue happening. As long as I'm a trader, there's gonna be amazing hot streaks where you make tens of thousands, maybe even hundreds of thousands of dollars.

And then there's gonna be these periods where you're following all the rules, you're doing everything right, and you lose money. Or maybe you break a couple rules and then that makes the losses even worse. So you know it's It's no doubt frustrating, and you know this is what gets you through. You know you have.

You have bad weeks like this. This is what gets you through. This is just a little bit of bubble bath. Just jump in the bath, just relax.

Let those worries go. This is what's gonna get me through. So you know another red day. but I'll be back at it tomorrow.

I've fallen off the horse more times than I can count I Always get back on. That's what we all have in common as traders were just we're resilient. We got knocked down, we've bounced right back, so be back at tomorrow. And in the meantime, enjoy the recap.

Any questions, any comments? leave them below and give me a thumbs up for doing the red day recaps. They're not easy, but I know you guys love them. So all right. Enjoy! I'll see you tomorrow.

All right everyone. So we're gonna do our midday market recap here. It's really a mid-morning recap, but we'll go over the trades from this morning. Today's a day where there really just was not a lot on the scanners.

You know, every day for us starts the same way. It starts by going over the Gap scanners and looking for stocks that have the potential to move 20 to 30 percent. today. So the leaving Gaffer's were you, you you and TC CEO And now both of these were gapping up in the range of like forty percent, which is a really big gap.

But they're also both five Centex stocks. So they're part of the five cent tick pilot program, which means they trade in five cent increments so you can see the spreads right now on this one, our ten cents, which is certainly not ideal. and in fact, that's how they trade. Most of the time, it's five 10 cent spreads.

They're difficult to trade, they don't move very, very much, Not a lot of momentum. So these two leading Gabor's were off the list. Chk E is too cheap. These ones were too cheap or too expensive VV PR was interesting but didn't end up doing much.

and so basically there was nothing on the Gap scanner that I liked. So what? I Ended up watching out of the gates were our high tide, A Momentum Scanners and just move this out of the way. Here there it goes. So the height Damos scanners.

This shows us stocks that are moving right now that are showing momentum. TC Co pops up on there and you know there were a couple of opportunities I suppose. but excuse me it really, it wasn't very clean. Popped up, dropped down, squeezed up, dropped back down.

just choppy. Bln K hit the scanners early on this one. I didn't jump in immediately I kind of waited for confirmation and then I got in right actually way up here, which was a horrible entry. I thought this was doing a one-minute micro pullback under for 10.

popped up to 412 and then it dropped a solid like 30 cents. So it just that's not impressive at all. So I lost 300 bucks on that. It ended up coming back up and then doing another false breakout and dropping right back down.

So just a choppy stock. only $300 loss on that with 6,000 shares. The PNL today you can see here is a two thousand dollar red day. My max loss is $2,000 down 2,100 That means I can't take any more trades if I tried to buy this stock here, it's gonna say no, can't place any long position, you're maxed out so that's important.

Keeping the loss is small really? I mean that's the name of the game because when you get into you know, like right now I Could say to myself that the fastest way to make back the losses from last week are to trade with bigger size and you keep doing that and you snowball and the losses get bigger and bigger bigger and you're not trading. You're gambling over the weekend. I Watched that movie called Molly's Game and it was so funny because and those of you who haven't watched today I recommend it cuz it was a good movie but in the middle of it was it's a game of it's a movie about this woman who is running kind of like underground poker games and so there's this one game where this guy, he's been like a winner for like forever. He's like a really good winner.

He you know is, you know, very successful, blah blah blah. and he has this one game where he ends up losing like a hundred thousand bucks and he's like, you know I don't know. Cash? Me you know I Want another hundred thousand and so she's like, all right, takes another hundred thousand he loses it immediately I Want another hundred thousand loses another hundred thousand I Want another thousand loses another hundred thousand you say? I Want five hundred thousand and you know in that one game he lost I think 1.2 million dollars and it was a it's a true story there's the story's not at all about him really about her running the game but I was interested in in the behavior that he was displaying because I just looked at that and I was like how many times have I talked to a trader who did that you know I'm going back in I'm doubling down I'm tripling down I'm you know and he was saying this stuff like I've got to make it back I've got to make it back You know, And that's that. You're gambling.

When you're doing that, you're You've thrown all rules out the window. Risk management is gone, Strategy is gone. You're just gambling. and so you know.

That's something that sadly can happen to traders because trading is absolutely a career of skill. But if you choose to gamble, you can gamble. You can choose to just throw 10,000 shares at this and 10,000 at that and hope that it's gonna go up and that's not a sustainable strategy. you know it doesn't work and I've seen traders over the years I've done it I've had times over the years where I've done it.

you know, just impulsively after one loss, jump into something else, hoping it'll be a big winner without really fully analyzing it. and I've seen students do it where they'll say Ross I'm down three thousand dollars today, what should I do and I'm like you should. What's your max loss? You know if it's a three thousand dollar max loss, you should be done and come back tomorrow. And then you know they're like no, I think I'm going to keep trading I'm gonna try to make it back and then next thing you know they're down six thousand, nine thousand, twelve thousand and it just goes down and down and down.

Those are snowball tastes and they happen to you know traders I mean really, you know it. I mean it happens all the time and so anyways, it just kind of. You know when I was watching that and I was thinking about how disappointed I was with my red days last week. but you know this max loss is so critical to my risk management because at this point as angry and as frustrated as I could possibly be, I'm not really that annoyed right now.

But let's say I was like totally furious and I was like no, this is crazy I've got to make it back I'm like really really angry. You know I could try to buy 10,000 shares I can try to buy you know, 50,000 shares and it's just not going to go through. This is gonna say nope, sorry you know you're exceeding your limits so you can place these risk management you know, techniques, these limits on your account and it's it's what helped control those red dates. Red Days will happen.

They'll happen to all of us. Whether you you know, trade stocks or you play professional broke poker, it doesn't matter. You know you will have losses. It's not about not losing, it's about minimizing the drawdown and not losing composure.

So you know Yeah, Ultimately, right now I could call Lightspeed and I could say you know, take the max loss off my account and you know they could do it but that would be that would be crazy. and fortunately I have enough self-control not to let myself do that. You know, however, when you know drugs and alcohol get involved then you may lose that self-control and you know I Don't think any of us or many of us would be trading and using drugs or alcohol in the in the show. they were in the movie that the guy was drinking heavily and that maybe influenced his decision Just to you know, go Totally off the walls.

but you know it's all about maintaining composure and you know it's not about never having red days, it's about losing with grace and saying okay I'm taking my loss and that's what it is. So S. Racks is the one that got me good today. Now this one's kind of annoying because I had said this morning I was gonna max my size at 6,000 shares and I pressed this three times thinking I would I might be getting partial fills but I would get I would try to get six thousand shares across these three orders and boom I had nine thousand shares and I was like why well hold up how did that happen I thought I had put my my max share size in here and so I realized that I did put it in here on Friday but I must not have saved it So I was back to fifteen thousand shares.

So nine thousand went through no problem and now I have nine thousand shares which was more exposure than I wanted and pretty much immediately it dropped twenty cents. Now on what day was I don't remember but one of the days last week you know I had a trade like this that I got into and I held it down to $5 and it you know broke five and ended up stopping out and getting slippage on the drop and on this one as soon as it did a false breakout here I stopped out right here so this is where I was out. It was actually like right here. so I got in right here for the first one minute camel to make a new high and then I stopped out right here.

so I kept a tight stop and that was that was the right move now. I had nine thousand shares so I lost 20 cents which is 1800 bucks but the risk management was still on point. The share size was larger Now someone was talking or made a post in one of the YouTube comments over the weekend. He said Russ why would you reduce your share size right now If you know your accuracy is 68 percent then shouldn't you just keep trading with the same size knowing that you know even if you have whatever had a couple losses last week that you'll make it back.

If you reduce your size, you're just gonna make less money. And so what I said to that comment which I thought maybe others might have and that's why I'm bringing it up is that there will be times when even though over the course of the last like two years since I started the small account challenge, my accuracies been 68% There will be times where my accuracy might be as high as 80% and there will be times where my accuracy might be as low as like 40 or 50 percent through really bad weeks, through a cold streak and so what? I try to do and this is a little bit more difficult because I'm trying to time when to be aggressive and when to be conservative. I time it wrong, then it's it's not good. But what I try to do is I try to increase share size during the period when my accuracy is higher and when I'm seeing a really strong market, you know by doing that it made $100,000 in January and then on The flip side I try to reduce my share size during periods where I feel like my accuracy is not going is not as high and where you know things are just choppy.

and then by doing that I reduced the losses during the slow period. I Think that inevitably, if I tried to trade with the same size just always I never increased I would feel like I'm under I'm under I'm not fully maximizing on the opportunity of a strong market by not taking really big size and then at the same time I would feel like I'm kind of unnecessarily losing money during a poor market. So I think the fact that I increased share size during the strong market amplifies the swings to the upside. and then the fact that I try to decrease share size as early as I can during a pullback reduces the swings to the downside.

So then instead of going up and down going sideways I go up and down up and down and the equity curve is looking like this. If I'm concerned, if I kept this to the shame, the same share size, the equity curve would be more like this. you know cuz the draw downs would be bigger, the width ups wouldn't be as big and it would be more of sideways I'm not sure cuz I haven't done it, but that's what I would maybe suspect. So the hardest thing is that after a really big hot streak, it can feel hard to reduce share size and so sometimes you know you're not, you're not as quick to reduce and you have a little more pullback than you'd like to have.

So as of right now, I'm down about $12,000 during this red streak and the red streak has been about one week long, so that's disappointing. But I'm up over $100,000 since the last time I had a red streak. So I had a red streak where I lost like $20,000 I lost about 22,000 and then so let's just map this out the show looks like so let's say this is 10,000 down and this is another 10,000 down. And then I had a hot streak where I made 100k.

So that's ten thousand, twenty thousand, thirty, 40, 50, 60, 70, 80, 90, 100 and now I'm down right here. So this is where I'm at. This is why it's It's so helpful to put things in context because even though this feels crappy to have a red week and to be down twelve thousand dollars, this is the context of the last two months, right? So in context, being down twelve thousand actually isn't that big a deal now. I don't want to go like this and like this because that's gonna start to feel worse.

I'm still at the point where I have the opportunity to cap the losses. To the downside, we're one week into a chop chop you, period and kind of go sideways a little bit with smaller size until I start to see things improving and then I'll increase my size and get ready for what will hopefully be another big hot streak like this. So you know that's kind of what I look at when I have a bad day or a bad week is. Let's put this in context.

You know I'm still. You know I'm still a millionaire I've still, you know, made over three hundred fifty thousand dollars this year. You know it. There's it's easy to beat yourself up to get really frustrated to get tunnel vision where you're just looking at.

you know that little blip right here where this is all you see because you know the reality of a trader like you know, like anything else. well like a lot of things is that we sometimes only feel as good as our last trade and so this is the area that becomes focus. But when you step back and look at the bigger picture, it reminds you. Okay, you know I take a breath, you're being a little hard on yourself.

You're you're in good shape. So anyways, I I say that hopefully for your benefit as well because I'm sure many of you guys go through and you know the same type of thing that so and you guys have seen this happen to me. you know, every every single day we were doing a recap. so you've seen me.

You know do recaps during all these days. Here during two weeks or three weeks or four weeks of bad trading. and then during all of these recaps going up on the days where I make twenty thirty, forty thousand dollars, you know it's I Try to just give you guys the the full picture into what it's like to be a trader. the UPS the downs, everything in between.

You know this is a red day, but this is not the worst red day of the year. In fact it's You know this is just totally like not a big deal type of day. The only thing that's a bummer about today is the fact that it's the third red day of the month and that today is the fourth day of the month. That's the only thing that's a bummer is that I'm down.

You know, twelve thousand dollars or whatever it is on the month. But you know I've had months that started worse and finished in great shape. So it's you know it's it, is what it is. Even if this month does close read: I was read in February I lost $10,000 in February And you know, look at where I'm at now so you know you.

You just have to sometimes keep yourself focused on the big picture. I'm in the middle of a marathon. You know when you're running a marathon you're not gonna set the same. You know you might say like for instance: I need to make $50,000 every single month in order to make 600 K this year.

Okay, fair enough. You may think I'm running a ten minute, a ten kilometer, a 10k marathon I need to average this time every kilometer. but that's not realistic because your time is going to be different when you're running uphill versus running downhill. You know what I mean You're gonna have some months where you're way above the goal and some months where you're below the goal and you can't get bent out of shape because you just ran up a hill and you are on the lower you know time.

then you know when you're running down. I Mean it's just. it's one of those things. It's so easy to lose sight of it.

but anything you can do to keep yourself grounded and keep perspective is important. So anyways, that's that's where I'm at. I'm saying it to you cuz I've got to say it to myself because it's easy for me. I'm my biggest critic I'm the one who's like, you know, upset with myself for not performing at a high enough level.

I'm very competitive with myself I'm I'm not happy with where I'm at right now, but I'm saying everything to you that you know I'm trying to say to myself, keep it in perspective, You know this is. these are the ups and downs of trading. This is part of this career. You will bounce back so you know Tyler that's a good point.

You think the $2,000 max loss is too small because the problem is what could happen is I take a loss like this right out of the gates and then we end up seeing five or six great opportunities. you know, an hour later now I'm missing them all because I'm at my max loss now I tightened up my max lost $2,000 because last week I had a day where down 4,500 which was below my $5,000 max loss and then I proceeded to take one more trade and lose another $4,000 which was totally unnecessary. It was so stupid and so the fact that I made that decision is what told me I was being impulsive and emotional and $4,700 was too deep in the red for me to continue to make good decisions. So I'm tightening up the max loss of $2,000 And reality is, if I start the day down to grand, the odds of me finishing it up five or 10,000 are pretty slim.

It doesn't mean it couldn't happen, but this is not a good way to start the day. The odds that trade 3 is gonna be a big winner are pretty slim. So it's true though this might end up being too tight of a max loss during a hot market. and if that is the case, you know.

and I've had a month where I'm up twenty thirty thousand dollars and I'm starting to be in really good shape then maybe at that point I'll call Lightspeed and say hey, let's move the max loss to five thousand I Just want to make sure that the day I do it is calm, composed, and doing it for a strong you know, a good reason. not just because I'm trying to make it back. So I'll probably you know if I had a day like if today we end up seeing amazing opportunities later in the day and I'm like, well, that's disappointing I missed them. That might make me second-guess this, but I don't think I've missed anything today I think today has been a choppy day and I'm this is really the best decision right now so you know we'll see always subject to change these things, you know I I have no issue changing if I have a good case for making a change, but it's not gonna be based on emotion, it's gonna be based on rationally.

Logically, this is too tight of a max loss and I need to give myself more room if I'm gonna continue trading with ten or fifteen thousand shares. So anyways, that's it for me and I hope you guys enjoy the recap and I'll post it up on YouTube Any questions, any comments, leave them below and I'll answer them later today. Alright, let's see you guys back here first thing tomorrow morning and hopefully we can just finish the day Green? What? I Want green day? If you're still watching. You must have really enjoyed that video.

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