The markets are down 400 points right now As I'm doing this recap: We are in a very choppy environment and what I'm finding is that this is not the time to be swinging for homeruns. Right now, you've got to go for base hits. One of the things I noticed in the last couple days is that I've been taking these trades and I take a big position and then when I'm up 20 or 30 cents I double my position I'm adding to it and it's because last month when I did that I would then have two times the average size and when it continued higher I'd make that much more. What's happening this month is the stocks are hitting maybe 20 30 cent high and then they pull back to my entry and now I've got a big position and I'm at breakeven and when I press the sell button I get slippage.

And slippage is what happens when you try to market out of a 15,000 share position and there's just not a lot of buyers to absorb your shares. and so what happens is the stock drops and so it ends up today. For example, being a three four thousand dollar winner turned into a three thousand dollar loss. and why did that happen? and why am I looking at all these guys in the chat room who were profitable on the trade that I lost money on.

it's because I was too aggressive and that's one of the things that's really interesting I Know this happens for other students. sometimes they'll be in the chat room and they're like Ross We traded the same stock, but we traded it totally differently. Maybe I'm green on it? Well, today they're green on it and it comes down to your emotions. It's how are you trading today.

Are you being really aggressive? Are you trying to swing for the fences? Are you being more conservative and taking the twenty thirty cents when you have it? Well, today I decide to double and I've been doing the same thing this month and I got to slow down I got to spend some time studying the big home runs in January because things will start to pick up again and when they do I want to be able to really capitalize on it and my goal is to have my first $100,000 day. My best day of all time right now is $40,000 in the green I Think I'm capable of $100,000 a day. So that's my goal for 2018. but it means I need to go back and study some of the Momentum stocks because when we start to see that tide change when we start to see the Momentum pick cup I Want to be ready to be there, pedal to the metal.

Get aggressive, capitalize on the opportunity. And then when things slow down the way they've been right now I Gotta ease up I gotta slow down a little faster. All right so you can see my Mickey Mouse ears. You may be wondering why am I wearing these I'm going to Disney World I'm going to Disney World in March and you can join me too.

We're going for a conference with all of our inner circle students. You can click the description below to learn more about our seminar. All right now, let's break down the trades from today in our midday market recap. All right everyone.

So we're gonna break down the trades from the morning. Right now, the markets down about 300 points and we're seeing just continued weakness in the overall market, which makes it a little tricky for us trading small caps. Not because small caps really get beaten up with the market, but more because the greed and the exuberance and that kind of feeding frenzy that we see sort of gets I Don't know, It gets it tapers back when we have big drops in the market because traders are just a little bit more nervous and a little bit less apt to be greedy and to jump into big positions. There's a little bit more fear in the market in general.

So this has been a really interesting month for me because I'm finishing here my fourth red day of the month. And you know what's kind of crazy is that this is only the sixth day. So I've got four. Four out of six days this month have been red and so I'm finishing the day today down 3,200 bucks.

There's definitely a little bit disappointing just to have such a slow start. you know? last month I started in the red and then that was the first day of the month and by the end of the week I was well into the green and from there just continued to surge forward. This month I'm just kind of grinding in the red I lost 7,500 first day of the month, made back 26, then lost 47, made back 36, lost 1,500 and then lost 3,200 So right now I'm down like $11,000 on the month Again, I was recouped some of that, but now I've given it back. So down 11 K on the month is kind of crazy since I made a hundred and seventeen thousand dollars last month.

I Mean it's such a big swing right now from having 15 $20,000 days to just kind of having these small losses. I mean $3,000 is relatively small, but it's just back to back to back losses, you know? I was kind of watching TV IX Here it's the only thing that I kind of had on watch. If the market does break low a day, we're now at 366 points in the Red, 264 31 was the low. The thing with TV IX is that it goes up when the market goes down.

It's inverse and the one of the challenging things about it is the fact that it can be a little bit delayed. It's not exactly inverse to the market, it sometimes the market can drop and T VIX is flat. Sometimes the market pops up a little bit and T VIX drops a lot so it's not a perfect inverse. There's a little bit of fluctuation there and I was watching it around this area, but the market is so choppy that we dropped down, we pop back up.

we'd drop back down and we're talking about 100 points swings today. I mean these are big swings from being down 360 to down to 50 to 70. So this is a difficult market to trade in and the safest thing to do is really just try to reduce your risk and not be as aggressive. One of the things that I did today which was a mistake is that I was a little bit - well I'm not going to say to aggress I was maybe a little too aggressive on BS P.m.

you can see here's my P&L so be Spm I Really thought this looked decent for a breakout. It was continuing yesterday's high but this is this is how it opened. Three red candles in a row. really big red volume and so it's no wonder that I lost money on it I got in it at right around 460 and it squeezed up to a high of 489.

I added at 486 thinking it was gonna break over high of day and that didn't end up happening. So I ended up getting stopped out as it dropped back down and I think right now we're in a market where and the markets almost down 400 points Here we're breaking low a day on the spy. You know we're at a point now where my instinct to add is is not really helping me. It's we're not in a market where I can aggressively add and add to positions the way I could last month last month.

If I was up 50 Cent's with 10,000 shares, I would add another 5,000 shares or even eight thousand shares. Get myself up to 18 20,000 shares because there was a good chance it would keep going higher right now. When I do that, it comes back down to break even and the problem is stopping out. Break-even with 18,000 shares is very difficult because you get slippage and that's what happened on BS P.m.

I had 12,000 shares, but if I had just taken my original 10,000 and sold it when I was up 30 cents would have made 3,000 bucks. You know I would have made money instead I added thinking I had homerun potential and I got stopped out for a loss because of slippage and I you know I look at the chat room and I see you guys who take the same trades as me who are green and it reminds me that I'm not losing money because I don't have the right idea or I'm not taking decent trades I'm losing money because I'm being too aggressive I'm you know I'm giving back profit and the thing is being aggressive is why I made a hundred and seventeen thousand dollars last month. If I hadn't been aggressive I wouldn't have had those profits being aggressive right now. You know I'm kind of in a garage.

I him down whatever ten thousand, eleven thousand on the month. So it's a little bit of a pullback, but you know at the same time, being aggressive is the reason I'm up over a hundred and seven thousand or one hundred six thousand on the year and it's only February eighth. So you know you got to take the good with the bad or the bad with the good. I mean it's just it is what it is.

You can't separate those two, it's hot, it's hard and I say that and I even as I say that, it's hard because I am feeling a little bummed out. I don't like being read on the month I don't like having six out of or four out of six days where I'm read. It is a little frustrating that when I'm getting into these trades I'm thinking they have homerun potential and I'm positioning myself for a homerun and then I get stopped out. You know, with my average I'm BS p.m.

it whatever. 460. If this had gone and broken over five and gone to five twenty, it would have been a six thousand dollar winner easily. You know, six seven thousand dollar winner and You guys know last month my average winners were big.

I had eleven thousand, eight thousand, four thousand seven thousand dollar winners I mean I'm looking at my piano right here. I had a streak of I don't know. It was like twenty consecutive green days where I made a hundred and twenty thousand and then I had to the loss on the beginning and the loss on the end of it. So you know it's right now.

I'm having a little bit of a hard time adjusting to not trying to have those big types of winds and the thing is, no I see your comment there that I made 100k being aggressive in February or a Jing where I could lose 100k being aggressive in February And that's not true. That's not true because my average went losses aren't that big being down three thousand dollars here today. Even if I lost three thousand dollars a day on average, you know for the next twenty days I wouldn't lose 100 grand and I'm not gonna lose twenty days in a row. that would be a unthinkable losing streak.

I mean it would I've never had a losing streak like that, it would be insane. So yeah, I'm having a little bit of a drawdown right now, but this drawdown that I'm experiencing isn't any different from the drawdown that I experienced last year. And just to reference that, I'll log in here to Trader View so you guys can just see the stats. It's important to keep things in perspective and that's the value in tracking your trades whether it's in trade or view or somewhere else.

Because you can go back. And you can say, well, is this historically normal for me to have this type of drawdown? And if the answer is yes, then there's no reason to get bad out of shape. If the answer is no, this is abnormal this is. you know, a much bigger drawdown than I've ever experienced or something like that, You know, then yeah, it's time to make some bigger adjustments.

I Don't know why this is the dates not working. Let's see, let's go back to January December 31st. All right, so let's say we go to detailed: I'm trying to remember where we have win/loss expectation. Yes, a cumulative drawdown.

This was last year. My biggest drawdown was $20,000 So I had to draw down and when I say drawdown I mean from the most I had made in the year to the biggest pullback. So right now my peak of 2018 was let's see a hundred and Twenty Two Thousand Dollars One hundred Twenty thousand. And right now my drawdown is about sixteen thousand.

So you know I'm I'm kind of close to where I was last year at 20,000 Although this was in when this happened, this was in May or in April and at that point I was only up around a hundred and ten thousand on the year and it was April So you know it was a little bit of a slower year. but in any case, yeah, my peak last year at 20,000 and then I came down again to 17. So this for me is, you know, cut. Yeah, it's getting on the higher side of the know, but it's not anything I haven't gone through before, so that's why I'm I'm not really panicking I'm not I'm just kind of like yeah, this is just the natural fluctuation that I experienced as a trader.

So right now the markets down 415 points. Continuing to see the sell-off T VIX is up at Eleven seventy eight. The problem with T VIX is that I can't really be aggressive on it because in Lightspeed it's not marginal. It says I have to use a hundred percent of my cash.

which means I can only buy about three thousand shares of it. So for me, three thousand shares, even if I make thirty cents on it, it just it's not gonna put a big dent in helping me recover my day. If the if we do see a bigger flush in the market, then you know I might be more inclined to take a stab with three thousand shares. but it just doesn't give me as much potential.

So that's and they're doing that to reduce the risk that traders are going to blow up their accounts on T V-- IX. so it's it's smart that they're doing that. but for me, it's I Guess one of the drawbacks of having recently taken a hundred thousand dollars of profit out of my account, you know. I took all this money out of my account I paid myself for the month of January and one of the reasons I pay myself is so you know.

kind of. like you said, I cannot lose a hundred grand this month because I don't have that much money in my account. It's just not possible. you know.

I I I'm limited on my my downside because I've taken profit and it's important to do that. It's important to pay yourself on a good month. and then yeah, when you have a bad month because you drew out money, you already know you only have about this much before. You just either have to stop trading or you make a big adjustment and share size or something like that.

So for me, you know this is definitely a little bit of a grind. It's not what I was expecting for February Last February was my best month ever and it was the best month until I broke that high in Nova. So it's surprising that November that February has been as slow as it has, but at the same time, these are the fluctuations of the market. But tide changes and we are experiencing a pretty rapid change of tide here.

change of current. and you know my instinct unbe SPM was to be aggressive and that wasn't right and I think that I need to make an adjustment there. that instinct to keep adding I probably shouldn't do that until we start seeing more stocks really open up and I kind of, you know I I guess I'm sort of like going get I go down with the ship in a way like I push it until you know I try to keep getting winners until it's just painfully obvious that I have to stop and you know it's like I keep thinking we're gonna get the boat upright until I'm swimming or I'm waist-deep in the water and then it's like alright I Guess this is the reality I have to adjust I hate making that adjustment because I don't like. Ah, you know, who likes slow markets? No one does.

We all want to be able to make $5,000 a day every single day, but it's not realistic and you do have to be able to adjust. So today is the 27th day of the year. I'm averaging three thousand nine hundred dollars of profit per day. Even despite these losses, I'm at about a hundred and six thousand on the year and you know, got a little bit of work cut out for me for.

February First goal is to get myself back into the green. Second goal is to try to finish up. You know, ten thousand, twenty thousand dollars if I can. but if this is a slow, slow month, it it's not a big deal.

Last year I had two months where I closed in the red, I was read in May and sorry I was read in April and I was read again in September. Both those months I closed down four or five thousand dollars, and I still finished the year with three hundred thirty-five thousand in my small account, another forty thousand, and my big account, and another 150 thousand in my long-term account. So it was still an awesome year despite those Bax And so I want to remind you guys right now, if you're a beginner trader who's just getting into the market, I want you to think of this as an opportunity to study this. You're almost getting a little bit of a reprieve, a little bit of a break because you don't have to feel FOMO You don't have to see these huge opportunities going by day after day, and you're missing them instead.

Right now, you can focus on training. You can study, you can trade a little bit in the simulator, and by the time you know two weeks from now or whatever it is that we really start to see things picked up, pick up. You're gonna be trained, you're gonna be prepped, and you're gonna be able to capitalize on that opportunity. So you know right now, it's just a time to focus on discipline, study, study, study, and I would go back and study all of the big Momentum stocks from.

January Go back and watch my midday recaps for all of January on those big days and look what was I doing right? And you know what? How was I trading them, what was working and then when we start to see that happen again, you'll be able to capitalize on it. So that's the game plan right now for me. You know tomorrow is Friday I'm probably not gonna recoup the losses on a Friday but you never know. I'll just try to make a little bit of money I'll try to refrain from adding to positions.

Doubling works really well in a strong market, but in a weaker market, it just it gives back profit and it increases losses. So I'll try to refrain from adding I'll just take my core position and hold it as long as I can and we'll see how that treats me for the next couple days. You know it's just again. you got to kind of be able to adjust and I hate having to adjust to a weak market.

I was really trying to fight it, but I think I just need to make that that little pivot and you know it's probably for the best. And then when things start to pick up, I'll probably miss the first couple of stocks that really go crazy because I'll be trading conservatively but I'll be able to taper back up and throttle back up once. I start to see good opportunities. So that's the problem though is that I will miss the first one or two because I'll still be trading conservatively, but at the same time you missed the first two.

it starts to pick it back up. but on the tail end of a hot streak, you start having red days because you're still pushing too hard. so you have a little bit of a tail end where you're you know, giving back profit and then you have to kind of ramp up where you're not fully capitalizing and then things start to pick up. So that's where we're at right now.

Twenty seventh day of two thousand, eighteen hundred, five thousand dollars of profit. This is still the best start I've ever had on a year. Despite this a little bit of drawdown that I have right now and you know, look the markets down like 2000 points off the highs. I mean we are in a pretty crazy market right now and maybe I should have been faster to just pull back on on being aggressive, but you know, whatever today, I'm probably gonna be done I might trade TVI X but I sort of doubt it.

I Just don't see that being an easy one for me to trade, especially with margin restriction. Alright, so anyways, that's it for me. We'll be back at it first thing tomorrow morning, pre market analysis and hopefully we get, you know, a couple of nice opportunities. but I'm just gonna set the goal at $1,000 a day.

I'm not gonna try to swing for these four or five thousand dollar winners because they're they're not happening. So I just got to get myself on base, get myself back in the green kind of, get myself, you know, a couple green days under my belt, and then that'll be it for me. So alright, that's my game plan and I'll see you all first thing tomorrow morning. If you're still watching, you must have really enjoyed that video.

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