What's up everyone? All right? So it's about what time is it? 6:12 in the morning and just outside San Francisco Getting ready to head back on a flight to New York and I'm just sort of thinking about trading the last few days I've been in a little bit of a you know, a slump and anytime this happens I Get you know, pretty sort of self-reflective What's going on? Why is this happening? you know? and I think that's something that probably every trader goes through. So I thought for a few minutes we would talk a little bit about this slump. how to get out of it. Those you guys have ever been in one or in one right now, you know.

Hopefully those give you a couple of tips. So over the last three days I'm finishing my third I finished my third red day and certain three red days in a row is it's not something you go for. You definitely aren't going for record of how many red days in a row you could have. That's not something that's not a record that you want to try to set.

But yeah, it's my third consecutive red day. And what's interesting is that I had a really good green day last Friday and then Monday I had a small green day I made about $1,800 and then on Tuesday I lost 2500 and then on Wednesday I lost another thousand and then Thursday I lost 1,300 So you know over the course of three days gave back about forty eight hundred, five grand or so. and realistically speaking, it's not gonna kill me. But you know, three red days in a row wasn't fun.

So as I was kind of looking last night in the stocks that I've been trading and kind of what had been working, what hadn't been working? What? I noticed over the last couple of days were a lot of false breakouts. Where my strategy of being a Momentum trader for the most part is to buy stocks high and sell them higher. You know and a lot of people say you buy a little sell high. That doesn't really work for day trading unless you're trading reverses where you're buying stocks that are have been selling off all day and you're doing a bounce.

Reversals can work. It's a strategy that trade from time to time. The Putt: you know you're buying something that's very weak. you're buying weakness and so you have to be really careful about that because you know sometimes you missed time it and you're trading against the trend.

You know trading against the trend is risky. So I like to trade with the momentum. So when I see a stock going up I buy it as it's going up, buying it high with the goal of selling it higher. And of course the lowest risk place to buy strong stocks is generally on a brief pullback.

So I was trading a lot of these brief pull backs over the last three days and what kind of kept happening was I was buying a stock that moved up, pulled back a little bit God in it and it came up and sort of retest the highs and then just sit there for a second and then drop and I'll say that I can be fairly impatient. As a trader, that's something that I Ultimately, ultimately, it's something that I want to get better at being a little more patient. But I think a lot of traders are inpatient and I think when we get into stocks for breakouts and they don't happen right away, there's just sort of a tendency a certain point to be like: alright, I'm giving up on this thing I I just you know I don't want to risk it I better just get out and get my profit and then you know you multiply that traitor mentality across. you know, hundred thousand traders or whatever it is.

And when you have stocks to start hesitating, that's enough. you know for people to bail out. So like you know, that's kind of that funny thing of we talked about candles of indecision, doji candles and things like that. and you know, when you're trading momentum, seeing indecision, it's like that's a big red flag.

You don't want to see indecision, You want to see strong. You know very strong bias stocks moving up quickly and so over the last couple days I just had a couple trades where it was like a guide in for the breakout on a good qualm. set up a totally valid set up. the stock would pop up five cents.

Eight cents, maybe ten cents. That's the short-term resolution, but it wouldn't break over hi a day and then it would end up failing and dropping back down. And you know that that was. you know, starting to get a little frustrating.

And so one of the things that I often will tell myself is when we have a period where the market is feeling a little bit choppy, you know things just aren't really opening up the way I'd like them to and it feels like every time something pops up it gets resistance and sellers and just drops right back down. I Usually say all right, You know what? You got to step back a little bit instead of being really aggressive and jumping on everything that hits my scanner which is valid during a strong market. Hold off for a second and let something prove its strength. All right.

Nine point five months. we should be good on her. There chatter for a little bit so the strategy there is so just sort of slow down a little bit, wait for something to prove itself by waiting for a stock to prove itself which is to go up. You know, 20 30 percent to really start to open up for the first pullback to go to new highs and you know, really, to start to make some some bigger moves.

It might mean you miss the first stock that starts to take off, but on the other hand, you know, if you've got, let's just you know. For instance, say we've got a picture up on the mound and he's throwing wild pitches and you're ducking left and right. You know you're you're gonna be really, really defensive until they start coming in as like solids. You know, strikes that you should be swinging at and so you might miss the first one.

you know, but then you're like, okay, this guy's got getting a dialed in I can start to, you know, really get aggressive on the next couple set up. Being able to adapt your strategy to a changing market is super critical. and I don't mean change completely the way you trade like you know for me, I'm not going to go start trading Apple and Facebook You know just because the last three days we're tough I don't want to do that I Don't want to change strategies I Want to. just you know kind of fine-tune just slightly adapt the existing strategy to accommodate the market that we're seeing right now.

And so you know for me, that's gonna be being a little bit more cautious about how quickly I jump into stocks wanting stocks to prove themselves to be a little bit more and one of the things that is definitely tough about trading I've had people ask me Ross If you always, you know If you if you're averaging about 70% accuracy over the course of the last three years of trading, for instance, why don't you just stop worrying about us to just always train to the same size always? Well, You know the problem there is that during a cold streak, you're not minimizing your drawdown. You know, during the cold streak, when the markets not hot stocks are popping up and failing. popping up and failing, you're just gonna be losing money. So it makes sense to reduce your share size and be a little more conservative, be a little slower to jump in stocks, wait for them to prove themselves, and then, likewise, during a hot streak, you're not maximizing on the opportunity because you're not being as aggressive as you could.

We've had days, and you know, I Think back on some of these days where we've had some stocks go parabolic. We've had days literally where a stock will hit the scanner. The Hyda Momentum scanner: squeeze up 10%, get halted, open 10% higher, squeeze up another 10% get hauled to the second time gap up 20% squeeze up another 10% get halted, and within a period of fifteen minutes, the stock goes up 40% It doesn't make sense, but it's emotion. The emotion start running really, really high in the market.

especially when you have a stock like you know, Bs, P.m. or Arkady A or you know L Fi ND Ry s You know any of these stocks that just go parabolic. Which is to say that they go up in excess of 200 percent within a period of I Don't know, like a couple hours it starts to get traders really excited, antsy and impatient waiting for that next book. You know it's like the next thing it starts to take off.

if I'm is Bps ESPN There's no way that I'm gonna miss this other one. I'm gonna jump into that much faster. And I mean I do it myself because it's just it's hard to fight that instinct again. You got to remember the market.

It's where hundreds of thousands millions of traders come together, and in a lot of way. it's driven certainly by speculation and by fear. and by Greek. So when you have traders who are very, very fearful, you can have markets that are very hesitant and are weak.

And when you have traders who are feeling more greedy and you're seeing big moves, they want to try to get a piece of the next one. You're going to see markets that are irrationally strong. And you know that old saying of the markets can be strong. The markets can be irrational, longer than you can remain solvent.

Sometimes I'll see beginner traders short a stock that's up a hundred percent thinking, look, it's up 100 percent. This is crazy, doesn't even have news. Next thing you know, stocks up to 30 percent and they're like what is going on. It's crazy.

3 half percent. What house is possible. Four hundred, five percent, Six hundred percent. Just like that, their accounts blown up, they're gone, The stock goes up six hundred and fifty percent.

and then two weeks later is all the way back down to its original price. So you had this little pocket where emotions were running extremely high on the stock volume was really high. Far above average, goes totally crazy, and that short seller may have been right ultimately in the long long run, but could not remain solvent long enough to hold that position. And you know you look at a stock like Lfi in that goes from seven dollars to a hundred and forty dollars.

That's crazy, crazy crazy crazy. You know it's like two thousand percent move. and now the Sokka I think is delisted I mean it's like zero. So even though I mean ultimately someone who's shorted in 50 bucks was right.

But could they afford to hold it to 140? Probably not. And you know. So this is where a motions start to run really high and again, you have to not. You have to.

As much as you possibly can not apply a strong mental bias to the stock of it should do this. Or it should do that because stocks are perfectly happy to do the opposite what you think they should, and instead to simply focus on trading the chart pattern that's in front of you while at the same time keeping a mindfulness and awareness of the general market sentiment and sort of the momentum meter which you know isn't like a real thing, it's just like a general you know, the general trade or consciousness. our traders currently right now really aggressive or really, you know, kind of fearful. And I would say the way I would try to create a Momo meter would be would be to run some type of scan of in the last three days.

how many stocks have moved up more than hundred percent and anytime that number is higher than I don't know two or three, you're in a pretty strong period of momentum. If in the last couple days you've only had stocks going up 50% you know. okay, meters a little lower. if I only had stocks going to 20% that's a flat.

That's like a very slow market for active day traders 10% 15% So horrible. So you know kind of measure that way because when you're in a market where you're seeing stocks every other day going up 50 to 100% 200% you know that's when it's things are getting crazy. So anyways, for the next couple days next week, I'm just gonna try to focus on tight a little bit until Momentum takes off. Not trying to really be the first one to jump on the stock that hits a scanner, let it prove itself to me, and then you know, go ahead and take us down.

All right? So that's it for me to get close to the airport here. So I got switch gears and get focused I'll see you guys back. Oh hey I didn't see you there while I was just working on the dream board for my next home run trade. Hopefully it comes soon.

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