What's up everyone? All right here we are. August First beginning of a new month and unfortunately I'm starting the month in the red. Today is a red day recap. but I'm not gonna beat myself up about it I followed the rules of max loss per trade I didn't have any blowout losers.

Number one, number two I stopped before I hit my max loss I got really close to it but I did stop and I was like okay, that's it I'm done. it's it's a nice feeling to you know not have to be held back by your broker and actually stop on your own. You know it's like sometimes there's days roots like holding me back hold me back. I'm gonna go in for another trade and the brokers like know you've hit your max loss, you're not allowed to trade anymore and you're just like so frustrated I didn't get there I was down 4500 bucks and I was like you know what? that's it I'm walking away I don't need to go for trade number five, trade number six and you know, give up more profit.

It's not necessary I'm just gonna walk away now so that's good. You know it's disappointing to start a month in the red. however. remember January 1st I started or well I don't know who's the first it was the first trading day of January I started by losing $4,500 and I finished the month up a hundred and seventeen thousand dollars.

So the first day of the month is not a bad omen. it's actually I would say good luck to start in the red based on my historical track record. So this is gonna be a great month. That's my thinking.

I'm gonna knock out what just one safe anyways. So we'll break down all the trades from today in the midday market. Recap: Any questions any comments leave below also I answer a couple questions about taxes during this recap. Anna talked a little bit about the month of June and July and August in 2016 2017 2018 to sort of talk about the differences between these years.

Alright, so enjoy the recap. Any questions leave them below. All right everyone. So we're gonna break down the trades from today.

But bad news: Starting the month of August with a red day. So today is Red day. recap down Four thousand, four hundred and ninety dollars. Oh, that's not how I wanted to start the month, but you know what? That's okay.

I'm certainly not the first time I've started a month in the red and you know I started June First down sixteen thousand bucks and I ended up finishing June up thirty-six thousand. So you know it's a red day, but there's always hope not gonna get too bent out of shape about it so we can look at the trades I took today and what you'll see is like generally today, there was just no love in the market. For small caps, it was like I had two small winners and then for just ugly losses and I took the fourth trade. I usually say I'm done after three losers and I took the fourth trade and lost another fifteen hundred bucks.

So you know again, that's a tough thing because you know I set this rule that I won't trade after after three losses because statistically, I'm just so likely to have a fifth loss or fourth loss. Whatever it is, and you know, today just was another example why that's the case. I was sort of holding out hope that oh, maybe this will be the one that saves the day and that was that was not the right move. So there's the PNL right on.

Two names are Xiii and my O so our XII will look at first. This one is kind of interesting because it was on the scanners as a gapper. Right at 9:25 there was news out on it so we had news come out. The bell rings and it dips for a second down to a dollar eighty and this is in one minute it dips down to a dollar Avia and surges up to one to twenty four and so I was like oh as I saw it dip down to a dollar eighty I thought okay I can't trade this.

It's too risky for me to, you know for me to get in here. so I'm just gonna give it a second and if you go back up here. So it ends up pulling back and doing a one-minute micro pullback. All right.

So the first candle make a new high that was 217 I got in anticipating that break, adding it to 14 and 217 10,000 shares. target high a day it pops up to a high of 224 and then it dropped all the way back down to a dollar 92. I sold about 8,000 shares of 22 and I sold the rest at 97. So on that first trade with 10,000 shares only made 240 bucks.

Only two and a half cents right? So that is not. you know that's just not a very big winner. So anyways, it drops down to a dollar ninety two and then it pops back up. you know, squeezes back up here.

you'll see - a dollar 15 right here and then I'm watching it watching it and as it curls back up right here. I got back in so I got back in at $1 at 2:13 and to 15 and to 16 it's 10,000 shares again and it pops up to 22 but it doesn't stay there for more than a second and then you can see it comes all the way back down so it comes back down and up. getting out of that actually with two hundred dollars profit again. So now I'm at four hundred dollars on the day and then I get back in at 221 right here because it looked like it was gonna break back up over the highs and I was thinking if it did that I would have a chance at moving too high a day.

it hit 22 and that drops all the way back down to $2 and I stop out and lose 500 bucks. Alright so now I've had my first loss and I just gave back the profit of the first two traits. Alright, third trade: I get back in at 21 almost literally at the same price and this is where frustration starts to kick in. It pops up to a high of 28 and then it drops back down to 207 again.

So I stopped out of that again and now I'm down a thousand bucks on the day and I'm like this is ridiculous. It then looks like it's gonna break over the highs. so I get in for the break over hi a day it pops up to a high of 36 and then drops again back down to 2 of 7. I got into 28 10,000 shares and stopped out at 211.

So those that was just I mean I was just like okay guys. I'm gonna be awesome. Get all frustrated right? I mean at a certain point it's like this is getting ridiculous. I mean I keep its 1, it's 2 and then it happens a third time.

you know? And it happened here. So basically every breakout on this stock, you know, just fade it. That one faded, That one faded. That one faded.

and that one faded. Those are my four entries. All right. So fail fail fail fail.

I mean yeah. I had a small winner here and a small winner here. But then these ones were losers. So really, just irritating.

That's frustrating more than maybe losing the money. It's just the frustration of being wrong. you know, several times in a row. All right.

So so that was really so. That was really annoying on Rxi I lost three thousand bucks on it. and you know in hindsight what I've done. What could I have done differently? You know when it was finally breaking over hi a day.

typically that's a good entry for a move up to 250, so typically that that's a good set up. These ones are typically good setups. This stock just wasn't a easy one to trade. and I guess that's all it is.

So so bummer on that. You know whatever it is, what it is and so down 3,000 on that one. So then my yo pops up. someone mentions hey, there was a headline on my oh it's squeezing up and on this one I should have just left it alone I I got into it because I saw he had just squeezed up from 2:30 up to 245 and so I was like clearly it just popped up.

you know, almost 10% it's moving so I'll jump in. So I jumped in at 46 and 49 for the break. over the half-dollar it hits a high of 53 and then comes all the way back down to 30. So I lose 15 cents on that 10,000 shares.

1,500 bucks and that's that's my day. So two winners for losers, not very good accuracy, average loser about a thousand bucks and just wasn't Wasn't feeling it today. So the average winners were only 200 average losers a thousand. That's not sustainable, that doesn't work.

So today is now a day to keep trading. It's basically just a choppy day in the market. Now you know I'm still I'm still sitting up three hundred and sixty thousand dollars on the year. I'm basically I've made almost the same amount here as of August 1st that I made in all of last year.

So you know at this point I I'm in really good shape I've got the wind in my back I've got a big cushion I can afford to take a little bit of, you know, extra risk here and there when it when I have the potential for a big win. But the reality was and I kind of realized this on my oh, this stock wasn't gonna give me the potential for a big win. The daily chart wasn't that great and then I didn't really I wasn't really clear on what the news was and so that was just sort of a silly trade. but Rxi I initially had potential and then it just got really, really choppy.

So you see all these candle wicks. candle wick. candle wick candle wick. It just shows.

The stock will pop up and fade. pop up and fade. so you have to know when you're hot and when you're not. And today's a day that I wasn't on fire I wasn't having really good Momentum.

really good follow-through and I don't I mean I'm not looking at the market and like oh man, there was this great opportunity that I missed I'm just seeing that there wasn't a lot really moving today and maybe I shouldn't have been as aggressive on 10,000 with 10,000 share positions I don't know I I thought wasn't I Don't know if that was really the problem, but you know, whatever the case is now I'm down four thousand, four hundred dollars. so it's a bummer to start the month in the red, but you know, been there before. not a big deal I'm still I'm kind of now. probably break even on the week I made 2500 on Monday and a thousand yesterday.

So actually now I've done a thousand on the week. so I gotta kind of get myself in gear here try to make back some money Thursday and Friday but the reality is looking at my calendar. you know I look at this because it kind of shows me where where my P&L is, where it's been for the last you know, couple weeks and I could tell you just you know right away that Momentum has not been as good for me in the last two weeks. I show my d tip Now let's see I want to show my recent was it Yeah here we go so you know I had a good day last Tuesday But basically you know since since this day right here things got slow.

I had a day where I made I don't know it was like 200 bucks or something is such a small day barely registers small Green Day small Green Day small red day. It ended up being a one big Green Day $10,000 and then two red days smaller green days yesterday was only a thousand bucks and now today's down 4,000 so you know the context. Basically the last two weeks has been aside from this one day choppy Because look at this two-week period here, you know? Yeah, I've got two red days but compared to the green days they're not bad. So here on these two days I gave back most of that day.

so I'm basically kind of flat for the last week and a half. So what you'll notice with with trading is the ebb and the flow. if I go back here and you know I had a period in May of sort of sideways price action for me for my account and then a big move from the end of June up to the end of July. So about a month and in that month I made let's see 132 to 226 almost a hundred thousand dollars in the course of like six weeks.

Great action. But now we're in a little bit of a sideways period again. So this is what you have to expect. You're gonna have these.

You know, the big leaps and then sideways. and the big leaps and then sideways. So when you're in the sideways price action, you know you make money. Then you give a little back and you make a little.

Then you give a little back and it's just kind of. You know, doing that a couple days or a couple weeks in a row. you just want to make sure you're not starting to do this type of thing. That's what you want to avoid.

You want to just kind of try to keep a level. try not to give back too much profit. You know. One step forward, one step back, one step for one step back.

until things start to open up. and then you know that opens up the next leg. So that's the name of the game you can see here from the equity. Big winners.

You know, back in this period, a couple big winners back in that period. You know, nice in this period. And but here was a little bit of a slow window. and this is a little bit of a slow window that's just begun.

So and this was a little bit of slow window. Here it's the ebb and the flow you got. Trade the market you're in, not the markets you want to be in. You have to remind yourself that every single day.

So you know red days happen and you're right. and they happen to all of us. that's you. Can't avoid it, but it's important to analyze it and to be you know to be one with the losses to understand why they happened.

Could I have minimized it? Could I have avoided it? You know I Certainly don't want to get myself in a situation where I'm being impulsive having so back-to-back red days like this and like this, those are no fun I Always try to avoid that and let's just you know, just for the sake of looking at a horrible month. and maybe that'll make me feel a little bit better about myself and to 28:18 So we're gonna look at the month of February This is the worst month that I've had in. well gosh, I don't know years I Finished down $10,000 for the month of February and this is what was happening I mean this was it was like red Red Red I was literally red eight out of I don't know 15 days the month and of course I had my skiing accident so I had to take this whole week off I was on bed rest so I didn't trade that week and you know I one two three four five, six seven, eight red days It was just a bad month. the accuracy wasn't there, the market wasn't hot, you know, whatever.

And and so this was a month of resting. All right, So lost 10 grand, whatever. But in the month of January you know, let's go back to January 1 31. Let's see detailed recent 1 1.

So January this is what January looked like I mean my average was like $6,000 a day. This was a $17,000 day. This was a $12,000 day, you know? I had three red days and I started I started the month down 4200 almost the same as today, right? And look, you know I finished the month of January with a hundred and seventeen thousand dollars of profit. average daily gain 5500.

So just because I started this month in the red doesn't mean this couldn't be the best month of all time. You know it's there's always hope, You never know. And yeah, so that reminds me. Um, let's look at last August just as a comparison.

So I was good to this yesterday during mid-day recap a night I totally spaced it so 17. Ok, so just for comparison last August Overview calendar this was last August for me I had a $4,500 Daystar Dread I mean it was not good I had a couple of good days but I only got to the green halfway through the month. So I finished August last year with only $5,000 profit. It wasn't very impressive my accuracy: 63 percent average losers were bigger than my average winners.

I didn't have the biggest winner was only $5,000 I didn't have homeruns so it was only 550 500 dollars. It was not a good month last July 2017 I made $6,300 It was same kind of thing. Now if we go back to 16, we go back one more year. I made $32,000 right? So you know August of 2016.

look at August 2016 here 31 29,000 So you know it's not seasonal, sometimes some are slow, sometimes it's high. And really, this so far has been a hot summer. I mean $50,000 last month 36,000 in June I'm up eighty six thousand dollars already this summer in just two months, So you know there's a good chance that August will continue to be pretty good, will continue to see good volatility, but you know it is. You know it's just the action of the market.

We either have a really good catalyst and we have great opportunities and we see lots of action. or you know things are slow. So and you know, whatever, today's a red day. but I've got you know, enough trading experience at this point that I don't really get that bent out of shape because I know I'll make it back.

it's just a matter of time. I mean that's really all it is. So so yeah. so that was the analysis of July 16 17 and 18 August 16 17 18.

So I want to answer that question? Another question someone asked me was about taxes. how do I, you know, plan for taxes, deal with taxes, etc. So as a trader you know we don't pay. You know we don't pay w2 like we don't pay taxes.

as we go, we make all of our profits and then at the end of the year we're gonna get a 1099 from our broker and the 1099 will show your net profit. So you know last year from Lightspeed I got 1099 for you know whatever $350,000 or because I traded in a couple different accounts last year. so I got one from Lightspeed I got one from another account and I had to take all my trace from Sure trader and have my net P&L from Sure trader. So I had these three accounts and basically what I do is I give the the statements the 1099s just to my CPA so I hire CPA and he does my taxes for me and so I give him my 1099 and you know I have him in January and then he's like okay Ross so I'm gonna you know, do your taxes blah blah now I and because I make more than half a million dollars a year.

I'm in the highest income bracket for federal income taxes which is just under 40 percent which is crazy. So I mean it's great I mean it is what it is, right? So if I make a hundred thousand dollars, forty thousand of that goes to Uncle Sam right now I'm also in the state of Massachusetts Massachusetts has a fixed income rate of five percent. state of Vermont was actually higher at eight percent. so I'm saving three percent in the state of Vermont.

So I pay another five percent for the state of Massachusetts. So now I'm at forty five percent income tax. However, because my business has an office in California we've got employees in the state of New York I pay New York income tax and I pay California and tucking home tax. So I pay income tax I file in several states because of warrior Trading so my effective tax rate is like forty five forty six percent.

It's right around there and you know that's just. You know that's just the way it is. There's nothing I can do about it. Even if I lived in the state of New Hampshire or the state of Florida it would save me some.

It would save me at most the five percent six percent. You know that I'm You know that I get to the state of Massachusetts So for me, the way I deal with the taxes is and this is not. everyone's gonna do the same thing. but I do quarterly estimated taxes which you're required to pay so each quarter I have to write a check to the state of Massachusetts and the state.

and the the United States Treasury for my estimated taxes. So I eat quarter I pay in for estimated my 2018. All right. So I just do that each corridor and in general I don't save I mean beyond paying my Quarterly's you know that pretty much keeps me in good shape.

and I try to reinvest as much of the profit as I can early in the year. so I can make so I can make money on it and then that gives me more money to pay taxes at the end of the year. or come the following. You know the following spring, so you know that's basically that's that's the way I've done it.

You know. for me, last year, I made three hundred eighty thousand dollars day trading. You know, I'm on W-2 it Warrior Trading. So I get a W-2 for my income there.

so taxes are already taken out and that was one of the nice things about starting Warrior Trading. When you're a day trader and you're self-employed you don't get, you don't get a 401k, You don't get health care. You know you don't get any of those things. And so you know if you're able to create your own business, whether it's trading related or it's related to anything else, the benefit there is that now you can opt in to.

You know health care plans and stuff like that, so you know. But for me, I've got income from Warrior Trading I've got income from my day trading I get royalties on my best-selling book titled How To Day Trade On Amazon Good. See it right here. So I get checks every month for sales of the book I've got my rental properties and then I've got income from dividends on long term investments so you know you start adding it all up.

and there's a lot of different streams of income. and I do have a lot of write-ups. all of the company expenses I write off and all that stuff. So you know the cost of my my fiber internet.

you know, whatever it is. Five hundred bucks a month for the two dedicated lines. That's obviously a write-off through the business of operating expenses. you know, the office space, the rental.

all that is a write-off so that obviously reduces my my net, my net income. but it doesn't get me below the highest income bracket, right? The highest income bracket is anything more than $500,000 So from 500,000 up you're in the highest income bracket and there's really not a lot you can do about it unless you're I'm gonna I don't know, try to I don't know I don't know what you do I mean I guess some companies move their money offshore or something, but you know we I don't do that so you know that's just the way it's been for the last two years I paid myself a salary I've got my two hundred myself. two hundred sixty, five thousand dollars a year through Warrior trading. That's my salary and I pay.

That is all w2 So that comes out as I go and then I've got my three hundred thousand plus or minus from day trading and you know it keeps me going. But taxes are part of the deal. We all deal with it and you know the best thing you can do is get a CPA because if you have a CPA then you know they. They just sort of take care of all those headaches for you.

So you know that's to me. what is is important. If you try to do TurboTax as a day trader, you're gonna. it's gonna be crazy.

You have such a big attachment. Like my 1099 shows all the individual trades. It's like a hundred pages long and my CPA the one that I've had up in Vermont was like it's like a thousand bucks or maybe eight hundred, you know. I'm not saying it's cheap, but at the same time they handle all the headaches of the taxes they give you.

They tell you this is when you pay your quarterly, this is how much you pay and then you just do it. You know, and it's like it just makes life easier. So you know, one of the nice things with running Warrior Trading as a business is that you know the profit we reinvest into building the chatroom software. So building the chatroom software.

building the new trading sim that you guys are using those are all right off. So it's you know it's it's awesome the way there's these incentives for companies to reinvest because those are just you know you write it off against the income and then at the end of the day you're not paying tax on the income and what? Duns you created this. You know this awesome software so that allows the business to keep growing and then you know eventually get to a point where you have a bigger profit or you you know lease out the software or sell it to a bigger company and then they'll get the tax on. you know, a fifty million dollar sale or something like that.

but in the meantime you're able to, you know, grow your business and do what you have to do. So there's definitely advantages to trading through a business if you you know are doing things like that or you're running another type of business. for me when I was moved back up to Vermont I formed my business where I was doing my design work. So I set that up because I was getting paid from the company in New York City to do the project management.

so to me it was easier to have them pay me into my corporate my corporate account and then I would write off all the expenses of you know, my office stuff all the things I was buying through the company credit card and then it was just they were separate from my personal so it was like anything related to business goes here. You know anything personal is here and then you don't have to deal with like individually. you know like line item write offs the way you would if you were trying to do it as I think a Schedule C on your personal income tax. but again like I'm not giving you advice I'm just telling you in general what I've done and what works for me.

So you know yeah, you got to put some money aside if this is your very first year day trading and you make a hundred grand you're gonna get. You know if you're in the United States a forty thousand dollar tax bill come you know, the following year and then once you've got a history of making a couple hundred thousand dollars a year, you're gonna be paying quarterly estimated taxes so you'll just keep doing your Quarterly's You know year after year and I actually prefer that because then come April I'm not gonna all of a sudden oh like half a million dollars I know that I've been paying into, you know, the tax bill and I'm already pretty much squared away. So but you know to each their own. some people like to try to do the minimum estimated payment.

keep investing that money. especially if they do real stay they want to have as much liquidity as they can, but you know it's it's just personal preference there. So anyways, yeah, so that's about it for me. I just want to answer that question someone asked it on on YouTube So I just figured I'd go over that a little bit.

We talked about taxes a little bit more in the class. We talked about LLC's and escorts and things like that. There are advantages and disadvantages to both. I've done a lot.

I've personally done a lot of research on them just through my process of trading. also the process of setting up Warrior Trading as a corporation. but you know? so I I can I Can throw out ideas from my experience, but ultimately, you guys, it's just there's so many variables when it comes to taxes. because it it's what's what country do you live in? What state do you live in? You know, are you doing other things? Is it just trading? You know there's just so many different levels of the nuances that can really change what your decision would be.

but you know. So I Don't trade through my company I Don't trade through Warrior Trading and trade through my own personal account I I mean I guess I could trade through the business, but there's no real benefit to doing it and then I'd have to I'd have to pay myself that income either I have to I'd Walt if I paid it as a w-2 then I'd be adding tax on top of it cuz I'd be doing the Medicare and all that stuff. So I I don't know I just do it through my personal account and that just seems fine. Just keep I try to keep it simple as much as I can.

So anyways, that's about it for me. I Hope you guys have a great afternoon. Any questions, any comments? feel free to leave them below and we'll be back at it first thing tomorrow morning. Thursday Friday Try to finish off the week hopefully with some green trades, get back into the green and you know, keep keep making some progress.

Alright, have a great afternoon. We'll see you guys all first thing tomorrow morning. Oh hey, I didn't see you there. Well I was just working on the dream board for my next home run trade.

Hopefully it comes soon. Until then, make sure you subscribe to get email alerts anytime I Go live or upload new videos. Until then, Happy surfing.