Are you ready to improve your trading drastically this year? As a Trader we always need to be analyzing both our losses and profits in order to adapt to the Ever Changing Stock market. In this video, I'll explain my five-step plan to improve my trading performance in the new year and demonstrate them with my actual live trading examples. These live trades which includes both wins and losses will help you understand the reality in the process of day trading. If you're ready to learn to trade better and maximize your profits this year, then please remember to smash the like button and get ready to join me on the five steps to fix your trading this year.

Step Number one: Trade Small Cap Stocks with Improved Risk Management. The first crucial step to adapt in the market this year is to use extremely meticulous risk management if you're going to be trading a lot of these lowf flat smoke Cap stock. Runners Small Cap Stocks have been coming back to the stock market since the winter of last year and there are many profitable opportunities to take advantage of if you have a set of criteria to scan for these stocks and plan for your trades with proper risk levels. Small Cap Low Flow stocks are stocks that typically ranging from a couple of to less than $20 This means their pricing is friendlier to newer Traders as you don't need as much Capital to trade as opposed to the large cap stocks are priced at a couple hundred dollar like Nvidia However, you should know that Smoke Cap stocks which I used to call them SM crap stocks tend to do a lot of random pump and dumps and extreme short squeezes while the more experienced Traders will be very excited about about these volatility and the price ranges to profit off, beginner traders who lack discipline and risk management skills can easily lose their entire account.

Nevertheless, if you want to adapt to this year's market and improve as a Trader you should be anticipating more and more of these 100% pre-market Runners that can turn into 500 600% squeezes such as Mlgo, Cccc and P L I'll be showing you a live trading example. later on on how I shorted a small cap stock cccc and you'll be very surprised by the result of the trade. One of my personal favorite strategies is short selling small cap stocks and look for strong resistance areas on the daily chart formed from the past selling pressure to short into and on the day of the new Gap up. these back holders are finally able to cash out out of the shares and dump on the stock along with potential insiders, dilutions and all that sketchy business in SM cap stocks.

So this particular strategy used to be very profitable a couple of years ago. However, I definitely want to be more cautious this year because I've observed that the trading volume on these small cap stocks are increasing drastically and with short selling being so available nowadays, there's a lot of rent short squeezes. the past year, while this still is a high win rate setup, the risk has increased drastically if you're actively. Short Selling Overextended small cap gappers.

Here are my recommendations for this year: Understand that the trading volume on small caps should be higher this year compared to the last two years during a bare. Market Be very careful when you plan on shorting the top gainers on the day as they can be overcrowded leading to short squeezes. Actually a lot of times they lead to two or three squeezes before the final drop plan and follow your stop losses very strictly and use multiple entries to scale in instead of one and done Once again, the key to surviving and actually profiting from small cap stocks this year, whether you're long or short, is risk management. If you learn to cut your losses quickly, then you can avoid the potential big blow up loss and survive another day in the market.

Okay, the live trading recording that about to show you is a gap of shorts on Cccc in this trade I Messed up my executions and made a couple of mistakes in which you're going to see really soon, resulting in almost a $5,000 loss. However, the key reflection here is that my P&l could have been a lot worse if I did not cut my losses quickly and acknowledge my mistakes. Okay, here we are on trading view. We're looking at the daily chart for Cccc the day the trade took place was on this particular day.

Over here you can see this thing literally ran up from a dollar to $2 then from three all the way close to $6 um on this long breakout candle and next day I traded it was this this one. So if you look at the intraday chart on this particular day you can see Market this thing had already GED down a little bit from prior days, close area around 560s and a lot of times when we have a first gap down day on a stock small cap stock that rang up for multiple days one two, three days and you have a gap down pre-market A lot of times that signals that this might be the start to the end. So my plan on this particular day is that uh with the gap down pre-market I'm going to use at 550s as my risk area um to short into and potentially I'll get downside all the way to um 430s potentially lower to 370s. Um, like I said, it's very extended so a lot the downside to go for the shorts and then that area around $550 to $6 is going to be my risk area again that $6 came from the highs from the day before.

Did you know you can get up to $6,000 worth of Premium trading tool was all for free as part of the new promo from Centerpoint Securities You can now open a new trading account and access Trade Idea scanner which is my favorite scanner by the way. Benzinga Pro Trend Spider and Dilution Tracker. They're also offering you free commissions for 60 days and 3 months free of Dash Trader Pro Trading Platform I've been using Center Point Securities for active day trading and short selling for many years now, so I'm very excited to share this amazing promotion with you guys! They are now available in Canada as well so feel free to check out the promotions down below. Now let's get back to the video so you're looking at the trades I did on that particular day.

Right now you can see Cccc pre-markets already kind of started gapping down. again. it's uh 911 so the market hasn't opened yet. You can see pre-market with a gap down I'm scaling in slowly.

Uh, a th000 shares averaging about 540s I Rarely trade premarket but this is one of the few setups that was take. take a dabble and start in early. Um, pre-market Okay, fast forward now to the open. You can see I have an average of 1,500 share short the 534 average you can see at the Open.

very volatile. This stock is a lowf float stock after all, so you got to have to expect this much volatility so you can see prior day's close is that um 550s area was we talked about earlier and now we're kind of hovering around like 510 520s Mark Like I said, my risk is going to be around that 5 560s and yesterday's high is around $6 so that 40 Cent range I want the pricing that risk um because uh the stock is very low float you can see at 933 3 minutes after the open the stock know gets a little pop testing that pre-market support area 5 20s I'm still holding on now to 3,000 shares shorts on Cccc you can see at the bottom window here on the two-minute chart. Cccc um the stock is getting bought back up now testing previous days close again my risk area is at $566 so with that breaches you're going to see me starting to cut my losses. You can see added a little bit up here at 540s is I added a th shares or so again I Want to be cautious for both long and short so you can see I'm starting to cover I covered just a little bit realizing some of that loss at Uh 550 so you can see I realized about $200 $300 worth of loss and H that I should have covered way more I'm still keeping 5,000 5,000 shares cuz I added a little bit up here thinking that was a clear out.

In hindsights, that was a mistake. Definitely I added back way too fast. so the mistake here is not cutting my position faster. Yeah, like if you look at this much volume, this is a good review session for me to review my mistakes.

You can see this much volume being traded on a stock that's slow float I I I should have trimmed. you know like most of my 90% of my position right around here. So now 560s, no you can see it skips to to $6 I wanted to C cover but I was way too slow. so I covered up here at this is like 6 uh 590s.

so I covered all of it all the way up here. so for a second it looks like you know I covered at the top I just realized about $3,200 loss on this stock. so I was out all the 5,000 shares. Definitely not very fun and you can see I was thinking okay maybe that's the top.

This is where I definitely made a mistake. second time now of adding back to my position way too quick so you can see $6 I saw like a potential rejection. that's why I added back in 2,000 shares up here at 584. Again, don't do this.

This is a bad bad trade. Okay so you can see now at 9:43 I covered all the all the short on Ccccc once again realizing now tallied up to $3500 of losses. Not fun. I Definitely over traded because you're going to see I'm going to retry this short again.

That's a tricky part with these like smoke caps you can say I just short another th000 shares at 580s because if for a second it looks like that $6 was going to reject stock squeezes through $6 to 613 I'm still stuck short 1,000 shares thank God I got out of the 3,000 or 5,000 shares I had earlier I just have a starter of a th000 shares left at five 87 average is painful to watch. You can see stock squeezes to through 610 and I covered right here. This is definitely like a cover in which I just covered and gave up. so not fun so you can see St stock squeezes through a little bit.

definitely a little bit of a like emotional and like Revenge trading at this point I tried once again at 610. then I realized it's just way too strong and I covered everything here at 620s and at the bottom you can see I realized a loss of $ 4700 pretty much $4,800 almost $5,000 on the stock. um if I'm considering the locate cost and everything like that. So definitely not fun and you can see I've made so many mistakes trading the small cap stock.

so going back to the trading view chart you can see after I covered everything at around 630s the stock actually went even higher. from 6:30 it went all the way to 8 because I guess there was a lot more shorts that stuck and um if you're too stubborn and you don't cut it, you're going to get squeezed all the way to $8 Um, and sure you can see all it came all the way back down from 8 to 5, but nobody could have predicted that. Um I didn't know know that you didn't know that this thing could have went from six to8 and to1 or $20 So that's the Silver Lining on this terrible, terrible trade I did even though yes, I lost $5,000 and it's not very fun. but I definitely learned a lot from this one trade if I did not stop out.

Finally, after trying a gazillion times at 6:30 I would have gotten out right here at $8 and that loss wouldn't just be $5 That could have been 10,000 or even $220,000 if I kept on adding all the way to the top. Obviously it's never fun to lose money and it still hurts looking at the trading recording of my loss of almost $5,000 But I'm glad I realized that I was getting very emotional and I stopped trading this ticker all together. Which brings me to the second step to fix your trading performance this year. and that is to acknowledge the impact of trading psychology and the importance of having the right emotional state.

Upon reviewing my past trading journals, I realized a few things first: I take way more trades on my red days which is a sign of Revenge trading on the green days where I make the most money I usually focus on just one to two stocks only and I take very little trades I Had a bad habit of selling my winners too soon and holding on to to my losers for too long. Few years ago, my top five longest held losers wiped out 43% of my profits on the year. So those three insights from my trading journal made me realize if I've already taken two to three losses like the Cccc recording you just saw I'm likely to lose even more if I keep on trading the same ticker I definitely still Revenge traded as you guys saw in the earlier recording. but but I'm glad I ultimately admitted my defeat and I was wrong and I got out before the stock squeezed to $8 which would have doubled my loss.

So this is the reason I became really good at admitting that I was not in the right emotional state to continue trading late last year and I will stop trading that stock that's losing me money allog together. Remember, there'll always be another better trade tomorrow to make money from as long as he can survive today and keep the losses controlled. at this point in my career. I'm very aware that my trading performance is closely related to how well I manage my emotions.

That's the reason I have the habit of recording my videos not just to share with you guys for educational purposes, but also for my own personal review for journaling and reflecting on both the losses and the wins. If you're en enjoying this straight up real talk so far, please remember to drop a like down below step number three to fix your trading this year position sizing and mastering Exponential Bet sizing. The third step and the most crucial technique that I'll be applying to all my trading strategies this year is position sizing. Most specifically, I'll be focusing on the concept of exponential beted sizing.

This is a concept that lends Bradin an eight figure prop firm Trader talked about in my podcast last year is this concept that I call exponential beted Sizing. And this is always somewhat controversial because there's a lot of Traders out there that believe, uh, every trade should be sized the same and stuff like that. and it's like this huge debate. and the truth is, if you're able to differentiate whether One play might be better than another and the example I I tend to love these poker examples, but if you're able to tell whether you might have pocket aces or pocket kings as opposed to an average hand, of course you want to bet better on those hands, right? Just like I've mentioned for years now on this channel, you should take position size according to your planned risk.

If you plan on risking $1,000 per trade that requires a 50 Cent per share risk, then you should take 2,000 shares and the same on another trade that requires perhaps A120 risk. Then you can take up to 833 shares. Now you understand the basics of calculating your risk before you take a trade. Now apply the idea of exponential bet sizing.

On top of that, use 2x, 3x, or even 5x the risk on your A+ setups to maximize the best trades as a Trader With almost 10 years of experience now, I've been tracking which setup gives me me the highest winning percentage and risk reward in a current market environment I Want to be prepared to take on exponentially higher position size and more risk on the A+ trades according to data. So that means if I normally risk $1,000 on most trades, then when it comes to the A+ setups I see once a while, then I definitely want to size up and risk 2,000 or even $5,000 on those perfect opportunities. And while yes, that means the risk on those trades are significantly higher than most, I'm doing this according to my past data and statistics and trying to aggressively maximize the potential returns. So to sum up this third step to fix your trading this year for position sizing and exponential bet sizing.

My recommendations are: First, know your most profitable and highest probability set up by tracking your strategy performance on your trading journals. Second, plan more than one potential entry areas to Siz in or scale in to your winning trades at predetermined levels. Third, make sure to set concrete rules and criteria to allow you to take bigger sizes to maximize profits. Step number four: Identify dead buying opportunities in large cap stocks.

Early on, I mentioned that we have observed more and more dip buying opportunities in the stock market since the last quarter of 2023. So the fourth step to adapt to this year's Market is to identify de buying opportunities specifically in large cap stocks and maximize the potential profit from this strategy. Now enough, Theory let's dive into an actual dip buying trade that it took in January to demonstrate sizing in into the best A+ strategies as well as buy the dip opportunities that I've shared with you in this trade. you're about to see you're going to see how I execute the de buying loan strategy on coinbase totaling over $4,000 in profit during the morning session.

At the same time, you also learn the importance of sizing in only to the A+ opportunities and for everything else, use less size or just your regular $100 $500 risk. Okay, you're looking at trading View once again. The day we're talking about is this particular day: January 3rd, 20124 Um, um, Coinbase. You can see on that particular day the stock actually G down Huge all the way to 144s.

Um, you can see previous day this thing sold off from uh 170 down to 150. So next day it's a pretty big and sizable gap down. So when you have this this big of a retracement from 186 all the way down to 145, that's a big move, right? What we talked about: extended move to on the daily chart to the upside at the same time, that's sort. The extension applies also to the downside as well.

And since Coinbase is a large cap stock, you know you don't normally get that big of an extension up or down without some sort of retracement, some sort of pullback. So that's the whole idea of this Di buying strategy. You want to do that on big Mega cap company like Coinbase and not on a small caps like Cccc. So you sold off on three days straight in a row.

Um, this is where we're approaching that daily support of Um I Was originally watching that 140s area, but there is indeed some support around this 144s over here. As you can see stock has bounced off that same area once here. um, tested that area over here as as well in early December So you can see that 144 145s area is a key level on the daily chart that you can use to risk off. If you're looking to di buy the stock, you can see Market just opened.

You can see that's a gap down we're talking about here all the way to 144. That's the area I Was looking at the daily chart in the morning. Looks like this. you see if you're zooming here.

you see that Gap right from yesterday's prior's close of Um 156 all the way down to 144. so the stock is down more than 10 points overnight. Um, that's where you have this gap on The Daily And technically speaking, anytime you get those sort of huge gaps um, not always. Again, they tend to get filled first before moving another leg down so that's that's also like the the the concept behind the de buying strategy.

so you can see down here about a minute after the Market opens. I got in I actually got in a little bit too much. 3,000 shares I didn't mean to do that. You can see that's why I'm going to get out a th000 of it right away and keep only $2,300 sorry 2,300 shares at 147's average on the platform.

Here you can see SSR is triggered for the stock so a lot of times that's that's beneficial for the lanss. Um so I already got rid of another thousand shares I Want to keep 1300 shares a starter? You can see stock is bouncing nicely from 140 7 to 140. Nice. That's like $2 per share.

Really really nice. Um, approaching 150 at scaled out a little bit more because again, like I wasn't confident whether that big of a bounce so early on was going to be sustainable. You can see I'm already realized $1,800 on the day from just a coinbase trade. This is one where I want to see if I can keep adding to my position and see if it doesn't goes eventually to Priday close.

That's a that's obviously like you know, a big and aggressive price. Target that's the reason I kept 900 shares and haven't sold all of it. If I were just looking to scalp a dollar$ two dollars I would just get out everything but for me I Want to see if we can get all the way to 153 154, that'll be a nice move. I added some more up here up here at 149 that gave me an average of 1,000 shares at 11100 shares at 1470s.

I Want to see if we can get more upside you can see we're up nicely on realized $3,300 on the day again. I'm concentrated on this particular strategy on this particular ticker right now. if you look at the bottom left window I have another position open a th share shorts on P Over here you can see that's the chart on the top. it's it's it's not really doing much and uh, it's not my favorite strategy.

So I know my performance on that one particular strategy is not as good as the daily support dead by. So of course it makes more sense for me to keep adding to the A+ strategy which is a daily support dead by and on stocks. I know that H that can give me a higher win rate. So just now I just sold even more at 152 on Coinbase over here.

Um, I think I just sold another 200 shares or so so locked in $2700 I'm up unrealized $4,000 on the trade In hindsight, I should have just sold everything and lock in that $6,000 profit. Um, but I'm really trying to let my winners ride this year. So basically I'm just saying like you know, P you can see I'm getting out of that stock realizing those losses and not adding to the position because it's not my best strategy I've taken big losses with that, especially with Cccc 5,000 loss. So I want to make sure I'm concentrating my mental energy my focus on a strategy that's working right now in front of me which is on Coinbase the daily supported buy you can see I just sold everything here at 150s.

Um, realizing $4,700 at one point I'm realized, you know, was $6,000 but I didn't lock it in so I definitely gave back um, some of the profits unfortunately. but once again, that's the reason I want to push this one strategy a little bit more because I've seen times before where the stock goes all the way back to Pra Dat close to 156 157 at that point. I'm not going to be happy if I sold everything at 153, so that's always a balance, right? I'm trying to maximize the potential expected profit, but at the same time I don't want to give back too much doing that so you can see I'm still waiting for that 400 shares to work out, but at the same time you can see on the top I opened the short position 400 share short on Madna after closing my P for a loss that MAA trade is a separate short setup that I trade once a while. Um, but again, you're going to see that I'm not focusing too much of my energy on that second trade on Madna you can see on the top I'm adding slowly into that MAA trade but the concept is the same I want to make sure I allocate most on my size into coinbase in case this does do a huge breakout and I want to add into that position? That's the concept of exponential bet sizing.

Again, size into the best of the best setup and everything else. Use less size or no 50% or 30% size. This is one of my favorite long setups to trade. It doesn't happen all the time, but when I see it once or twice a month, I would trade it with more size and sometimes I'll trade with multiple trading accounts.

I Actually go over this strategy in detail in a free crash course. There's a link down below if you want to check that out. The fifth aspect of trading I want to work on this year is to invest in trading resources and tools that can help improve my trading at this stage of my Trading career. I've already developed a few strategies that I can rinse and repeat.

However, now I want to invest my time and effort in back testing each of these strategies on a larger sample size of stocks from the recent years. By doing this, I'll be able to actively update stats of my trading strategies according to the market trends. We can help me decide on which stocks and setups to focus more on. It can also help me decide which strategy to size in more aggressively or avoid a particular strategy or setup all together.

Here are some useful trading tools I recommend and I'm personally using. First one is a back testing tool Spiky I have a short demo on this in a previous video I Use Spiky to optimize my trading strategies and find the highest win rate and risk reward setup and entry points. Next is my scanner and news feed I Pay for trade ideas and Benzinga Pro to speed up my trade planning process. And of course, don't forget a trading community and education.

You don't have to trade alone or figure out trading all by yourself. Consider joining a community with daily watch list, pre-market trade planning and strategy, webinars, and so much more for beginners I Have a complete guide on the top trading tools you can use for free. You can check out this video and learn how to use the tools to improve your trading. this year.