All right everyone. So today we're going to start our seventh episode of Behind The Trades and this is actually the first episode since I got back from my month of traveling, I was in Italy for a couple weeks and then I was in New York City and then I went to Las Vegas and then San Francisco and Sacramento and Napa Valley and now I'm back home getting settled in. So it's time for our Friday episode of Behind The Trades and get back into the routine of doing these episodes every Friday. So let's see.

the topic for today is how to turn around you're trading and how to get out of a trading rut. and this is very topical for me as many of you guys know because I went through a bit of a trading rut in the month of April and I Want to talk about how I traded through that period of frustrating trading and how I was able to get out of it and redeem myself with $17,000 profit in the month of May. Now you know you may be watching this. Those of you who watch listen the podcast or watch this and it may be months and months later, so don't worry about you know April and May.

What we're going to talk about specifically is how to handle going through a period of difficult trading, how to create a game plan to get out of it, and how to follow that game plan and work your way out. All right. So and let's see I Think it looks like we're going to have a good collection People listening on today's live broadcast both on Facebook live and in the chat room. So I want to remind you guys that you can participate in episodes of Behind the Trades by going to Warrior Trading comm slash Show.

When you go there, you can contribute questions I'm going to answer during this episode. We'll be answering three questions that have been submitted by listeners of previous episodes and I'll be sharing with you one story of one of our students who submitted her story on the show page hoping that we would share it with everyone. Okay, so make sure if you are interested in purchase paetynn you check out the show page over at Warrior Trading. Calm those of you who are watching on in the chatroom.

I'll put up the show page so you can see what this looks like here. All right. So this is the show page for behind the trades. you can subscribe either on iTunes SoundCloud Stitcher, Google Play, YouTube Facebook etc.

If you scroll down, you can see some of the latest episodes and you can see here how to be part of the show. If you have a successful trade story you want to share with us. I will share that with listeners on one of our upcoming episodes or you can ask a question that I'll answer during an upcoming episode. Alright, so make sure you participate and what I'll be doing for the students or traders who participate in episodes of Behind The Trades is: I'll be giving away a gift on each live episode.

Alright, so the gift today is I'll be giving away one Warrior starter course. Alright, the last gift here, the last one I gave away to a student or a trader Eric who was listening in so wore your starter 997. Total value. Alright guys, so make sure you check out Behind The Trades the show page over on Warrior Trading Comm.

Now let's jump into today's episode. So as I said the topic for today: Episode 7: Getting out of a trading run. then well after I go over the topic. We'll go into the viewer submitted questions, harassed, viewer submitted story, and the gift giveaway.

Alright, so topic of the day: getting out of a rut As you know as I already mentioned and as many of you may know from following my journey on YouTube April was my first read month in a really long time now. My goal for the month of April was I think conservatively conservatively $20,000 more aggressively, 40 or $50,000 I Mean that's what I would have certainly liked to have been able to do. I was consistently doing 40 50,000 a month through April through January February and March. So for April I kind of figured you know twenty thirty thousand should be realistic.

and if I can get to fifty thousand, it'll be a great month. So halfway through the month of April when I was break-even I was like this is not looking good. This month is not coming together the way I thought it would. What's interesting is that I started the month of April my first week of April I made twelve thousand, seven hundred dollars.

That's a great start to the month. In the second week of April I ended up losing twenty-two hundred dollars and I ended what ended up happening is I had that Monday and that Tuesday I made five thousand and on Wednesday I lost seven grand so you know I started to continue the momentum and then I had this really quick drop I lost another thousand dollars on that Thursday and then into the next week I lost money again I lost $1400 the next week and I lost forty four hundred dollars on the last week of the month. So I went from being up twelve thousand and just giving it back slowly, slowly, slowly until I closed the month down four thousand dollars my last day of the month or the second to last day of the month I lost seventy seven hundred dollars I think it was completely avoidable I was getting myself I was starting to get myself frazzled of getting myself frustrated that I wasn't having a better month and I start swinging harder and harder for the fences, trying to redeem myself trying to regain you know, some profit for the month. and I was thinking you know, with 20,000 shares if I can get you know 30 40 cents on this trade I'll be up six eight thousand dollars.

That puts me back into the ten twelve fifteen thousand dollar range on the month. But of course when you trade with big Size like that you know you're exposing yourself to a fairly steep drawdown and that's what kept top. So what I want to do is I want to show you some of my metrics here for the month of for the month of April It's not impressive and something that I've said to all of you guys is that one of the big challenges for me is that I certainly like any other trader I have bad days but I'm doing this live in front of, you know, 70 hundred people in our main chat room. It's right at this moment.

Typically you know eight, fifteen hundred or so on a regular day. Plus you know hundred thousand people on YouTube and 150 thousand on Twitter I mean I'm being transparent and it's in front of so many people that when it doesn't go well, it's a little embarrassing and I can't help but feel that added pressure that I have people watching. So you know one of the things that I committed to doing earlier this year was documenting this entire journey from 583 dollars. that was my starting balance on January 1st and that's them right now I'm up to one hundred and thirteen thousand and you might think that that's pretty impressive and I suppose that it is, but I had a hundred and one thousand dollars on March I think it was March 8th.

Look, you know what? let's just check this. Um, you know what? That's funny. It was March 8th which was my dog's my old dog's birthday, my dog that passed away. Coincidence? I'm sure.

But in any case, on March 8th I hit a hundred thousand dollars. So to end today is June 9th. So from March 8th to April 8th to May 8th to June 8th here I haven't made a lot of progress. so what's that about? you know I moved I moved up really quickly and then things have pulled back and have kind of been flagging you know under high up day, just consolidating underneath the highs.

So you know Yes, the big picture is $583 to 113,000 is impressive and during that time I also was taking some trades and one of my other accounts which I've since closed I've consolidated to just trading in this one account now that it's a $40,000 account. I've been drawing out money when I you know make enough to draw some out but I'm up total about 150,000 on the year right now which again for June is not bad. That has me tracking it about 300,000 for 2017 I did 222 in 2016. So to increase your annual trading process, you know from 220 to potentially to close to 300,000 I mean you know that's a like a 30% increase that you don't There's no job in the world as a nine-to-five where you're going to get 30% increases in your salary year over year.

but there's a traitor. You can. If you really refine your strategy and you have the combination of good markets on your side, you can grow your account very quickly and you can roll over those annual profits and see you know, increasing percentage. You know growth year after year after year, which is which is definitely pretty cool.

And I think that's inspiring and it keeps the keeps all of us motivated to really work hard. But in any case, the month of April for me was not particularly impressive. I finished. This is my trade review report here that you guys are able to see on the screen and I'm actually interested that I don't see day 28 on here, but oh wait, no, that's day 27.

I Might have to check that it's possible that there's one day that's not being imported, but oh no I think it's there. It's just a small game. So anyways, we'll look at net gain instead of gross if I look at gross. that's before commissions.

So before commissions I was flat on the month. Basically is what this is showing. Will go to detail here: I Lost six hundred dollars in the month of April not including commissions when you include commissions. That's when I'm down 400 or four thousand, Two hundred Twenty-nine dollars.

Okay, so obviously in a little bit of a difficult month. so let's look at the the stats for the month of April. My accuracy was 60% All right, so 60% accuracy. My average winning trade $781 and my average losing trade one thousand Three hundred Sixty Four dollars.

What does that tell you guys? I had a negative profit loss ratio. In fact, I lost almost twice as much as I made on average. Sounds pretty bad. Well, it is.

This is not sustainable. Statistically, it's not sustainable to lose twice as much as you make. If I had this profit loss ratio I would actually have to be right 66% of the time to break-even Flip that ratio to being right to making 1,300 on your average winners and losing only 700 on your average losers. You only have to be right 33% of the time to break even.

So that's a big shift, and obviously there's a ton of range in between. But the important thing to understand here is that you need a positive profit loss ratio. Having a negative profit loss ratio is not sustainable. So in the month of April basically what I did is I kept stepping up to the plate and I kept swinging for the fences looking for big homerun trades and it kept coming up empty-handed So I was taking $1,300 of risk per trade.

but I wasn't making $2,600 on my winners I was only making 780 on my winners. Now, let's contrast that against my best month of the year so far, which was the month of February. So the month of February Here my average winners were 1830 . 1870 dollars and my average losers 1318 dollars.

So my average losers were almost exactly the same as the month of April. My accuracy was 68% so my accuracy was a little bit better. But the big change here was that the average winners were eighteen eighteen hundred dollars versus the month of April which was only seven dollars. So this shows me that my risk wasn't actually any different between April and February.

What was different was that I wasn't getting the home run trade, I was stepping up to the plate and I was swinging for the fences and in February it was working and I kept walking away with winter after winter after winter, finishing with sixty thousand dollars in the small account plus another 10,000 in my other account. seventy thousand dollars in one month now, accuracy was only slightly better. The big difference was the profit loss ratio. So as I finished the month of of April I knew that I needed to do something different I knew that I couldn't have another month like this.

You know that this was not sustainable. when I looked at my profit loss ratio and realized my average losers were, you know twice my average winners. This was not in the last. I had to do something fairly drastic to make a change.

So that's when I flew to Italy I flew to Italy and I said alright what I'm going to do is I'm going to go into trade or rehab I'm going to make a game plan for how I'm going to get out of this trading rug because the reality is in the month of April. Let's see, let me switch here to the overview and the calendar in the month of April I Closed three weeks red I had three consecutive red weeks I mean that for me is almost done nervous to have that happen. So I was like I need to do something different going into the month of May I need to change my focus my focus through the month of April Was looking for homerun trades. I was trading with pretty big share size.

Let's look at my average number of shares per day. 53,000 shares per day. Alright, so I was trading with, you know and that was on a total of 66 trades. So in the month of May I created a rule and the rule was that I wouldn't trade with anything more than 2,500 shares.

So instead of trading with 20,000 or even 25,000 shares, I was limiting myself to 2,500 I said that the problem here was I wasn't getting the big winners. so I needed to reduce my risk I can't control how much a stock is potentially going to go up I can't control that but I can control how much I'm willing to lose so I said I'm going to take 2,500 shares and I'm going to stop out 500 dollars max loss I'm going to keep my stops really, really tight. Those are my two rules: small share size, tight stops And then the third rule I guess was that I would focus on buying pullbacks, buying better quality setups, and not chasing stocks that were squeezing up making oops, let's see applying those three rules. Let me show you the stats for the month of nine.

What you'll see is that my statistics are much much healthier. Alright, so in May I finished with Let's see detailed here. as you can see this is a trader of you report: sixteen thousand, nine hundred and sixty-five dollars my average winners: Four hundred and forty five dollars. Now, my average winners were actually smaller than the month of April but they made more money.

How is that possible? My average losers were only two hundred and thirteen dollars. So from one thousand, three hundred, sixty four dollars down to two hundred and thirteen dollars I tightened up my risk I mean my risk was like I mean twenty percent of what it was through the month of April Much much better small losses. And even though I wasn't getting any big trades, my profit loss ratio was two - one, two - one, two hundred dollars average Loser 450 average winner. My accuracy was sixty five percent.

Okay, so this right here is: these are the metrics of a successful trader. These are sustainable metrics. Now my average trading volume was forty-seven thousand shares and that's because towards the end of the month, I allowed myself to come out of Rehab. So I said for I think it was for the first two weeks I was in pretty strict rehab and then I started to say okay, you know what, you're doing a good job, you kind of reset things a little bit.

Confidence is building. I'm going to start graduating Rehab, increasing to 5,000 shares per trade and then increasing to 7500 and I think I topped out at 10,000 shares by the end of the month, but I was also trading a little bit a little bit more I took 78 trades versus I think 60 something for the month of for the month of April. So the interesting thing here is that you know this for me it my success in May was not about finding homerun trades I didn't in fact hit really I hit one. My biggest winner was four thousand, six hundred and thirty six dollars.

I had one homerun trade in the month of April there yes, the month of mech start, but my largest loss was only seven hundred dollars and that was really the big difference. So what did I do to get out of that trading road? I had three consecutive red weeks and I lost. You know over that period of time I was up 12,000 and then I lost I guess about 16,000 because I closed the month down for grant. so over three weeks losing $16,000 I realized this was not something I can continue to do I needed to make a change and so I reviewed my metrics and my metrics showed me that my average losers were twice as big as my average winners and I knew that that was the source of the problem that was not sustainable.

I understood the reason that was happening was because I wasn't getting homerun trades, but the reality is I can't force myself to have homerun trades I can't I mean the market is what it is I get into a trade looking for whatever I'm looking for but I never know exactly how much I'm going to get. but what I can control is how much I'm willing to risk and that's what I decided to do through the month of May was conscientiously make the decision to not risk more than five hundred dollars. I had one trade that exceeded that where I lost 771 and it happens I got a little bit of slippage. that's fine I'm not going to beat myself up for that because overall the big picture is that I created a plan I followed the plan and this was the result.

$17,000 Now although this was my second worst month of the year because $17,000 is a fraction of 70,000 in the month of February. This is a month where I clean the slate I created a plan for how I was going to get out of the rut and I executed the plan. Now one of the challenges that a lot of traders face is we: if you're able to make the plan, you know which a lot of traders aren't even able to make the plan. Being able to make the plan requires understanding what your metrics are, so if you don't know your metrics and a lot of traders might not, you're definitely a disadvantage.

But when you're at the point where you understand your metrics and you're able to sit down and make a game plan for how you're going to get out of this rut, what's the biggest problem that most of you guys face, it's following the rules, it's sticking to the plan and I get that 100% In fact, my first day of real at Rehab I relapsed. The first day of rehab was the day I lost $7,000 because I I remember I was I took a trade and all of a sudden I was down like two grands and I just got frustrated I was like you know what I'm not going to make I'm not going to get myself back to break-even by trading with 2500 shares. that's just not going to happen. So I'll take 10,000 10,000 shares, 20 cents I'm back to break-even I didn't go back to break-even I went to being down $4,000 I lost no 20 cents and then I said you know what I can get myself out of this next tray I see that looks really good 15,000 shares I'll bounce right back up 15,000 shares 30 cents.

That's all I need back to break-even and is that what happened? No, of course that's not what happened because I'm now getting emotional I'm getting frustrated and I've had traders on YouTube say Russ you know you're you're pathetic. Why am I even looking at your your midday recap or you know you're behind the trades episode your trading emotionally. There's nothing to admire there and I can appreciate that criticism. But the reality is, you know, even for myself, a trader has been doing this for years and years and years.

I can be profitable I can do really well, but I can still fall into the habit of emotional. It's very hard to completely disconnect yourself from that. I've talked about this quite a bit. You know with trading when you make a mistake, you lose money and you know you're You get that immediate feedback from the market that you were wrong.

and seeing that that cost is like $4,000 or $5,000 it's difficult to not get a little emotional in that response. Now you know I watch you know reality TV shows and stuff like that and one of the shows I love watching and of course reference this a million times is The Deadliest Catch And one of the things that you sometimes see and I saw this on one of the recent episodes one of the boats decided to go up towards the Russian border and he he said this is you know a gamble I think he set like all his pots way up on the Russian border and he didn't know if they were going to get anything in return. Now as it turns out he was right and he came out you know with lots of crab which is awesome but if he'd been wrong he would have spent I think they said forty thousand dollars in fuel and operating costs to get all the way up to Russia only to set all his pots and then pick them all up and have them be empty and so the net loss there could have been. you know, 70 80 thousand dollars.

Now would he feel the same way that I feel on a trade where I lose $7,500 and I'm not sure that that they would because there's a little bit of a disconnect. You know you're not having that immediate response from the market that you know you just lost 5,000 and so how do you react when you have that immediate loss? Well the first thing is just you know maybe to revenge, trade, and swing for the next thing that pops up. Well, you can't really do that with crab fishing. You know you just inherently because of all the time built into.

All right We got to read, we got to refocus. where's the next place we're going to set this next string You have? you know, hours and hours to think about it and that gives you that kind of downtime to slow down to kind, you know, regroup and come up with a logical gameplan. It helps disconnect that emotional response that traders can execute instantly with the press of a hockey. We can have an emotional response and be long.

30,000 shares I Mean it could happen so quickly. so we trade in that momentary lapse of judgment which is sometimes caused by a quick loss and an emotional reaction. It can be devastating, you know? I I Can't help. but on a day where I lose $5,000 or $8,000 feel like you know, be like a jerk like what is wrong with you? You just lost more than most Vermonters Making an entire month You got to be kidding me.

and I wonder if I beat myself up more because it's that loss is so directly connected to you. Know you look, when you have a bad trade, you lose money and when you lose money, you don't feel good. Whereas with some of these other jobs like fishing, you know you set a string. it comes up empty.

Yes, there's a there's a cost connected to that because there's the cost of fuel and this and that. But it's not like you're going and trying to pick up dollar bills like it's just a little bit more disconnected. and I think that that might help not maybe feel as emotional or as frustrated when you have a bad a bad string and I could be wrong. It may be just as frustrating.

It may be even even more frustrating on I could be I could be wrong, but I know for me for sure, One of the things that's challenging is the fact that if you have a bad trade, you can jump right back into the market two seconds later and you can just keep doing that. You could do that all day long until you're down a hundred thousand dollars. And usually with most other careers there's some type of built-in mechanism of time where you simply have to wait and that allows you to cool off, collect your thoughts, and then come back a little bit more composed. So as we started the month of June I couldn't help but feel frustrated that through the entire month of April and the entire month of May I really didn't have any homerun trades you know I had this one $4,600 winner in May you know, but I didn't I had.

It's been so long since I had an eight thousand or ten thousand dollar day. My best day of the year is $22,000 and they had set this goal that at some point this year I would have a $30,000 day because the worst day I ever had was losing 30 grand and I'd like to be able to match that with an equally good green day at the end of the day. in the last 18 months I'm up like 350,000 dollars. So if I don't have a thirty thousand dollar day, that's not the end of the world, it sure would be nice.

but it's not the end of the world. When I had that thirty thousand dollar loss I was definitely in the position of you know I don't know if I'm going to be able to keep trading. this is so devastating and I'm going to talk about Jessica's story in a few minutes. She has a really similar story and it's relevant to what we're talking about today: that ability to bounce back and get back on the horse.

But having gone through the month of April in the month of May without any really big like Homerun trades, I couldn't help but start to feel a little impatient and earlier this week I started getting more aggressive on my trades. I started taking 10,000 shares right out of the gates and I even took 25,000 shares of a trade on. Wednesday only made 680 bucks on, but I started to be a lot more aggressive. traded 15,000 shares again on Wednesday on Thursday I trade with 20,000 shares and I lost thirty cents three times - honey guess I lost 25 cents three, you know, thirty cents times two 20,000 shares at six thousand dollars and I lost fifty four hundred I Let impatience get the best of me.

Was it the right setup to be super aggressive on? No, it wasn't I was just I was just feeling impatient I was feeling like I it's been so long since I had a big trade and I felt that I mismanaged a trade on Tuesday where I made own only nineteen hundred bucks because I felt that that was the type of trade I should have made four or five thousand dollars on. So when I saw a similar setup on Thursday I jumped in with big size and as a result I took a pretty unnecessary loss. So here we are at the very beginning of of June its June 9th now and I've already gotten myself into a hole for the month and it was essentially due to a momentary lapse in judgment. Now today's trades are not factored here into the month.

This is literally just this week of trading. So as of right now, I'm down probably 4,600 bucks on the month. So this is essentially right now looking like I'm ready equal amount as the month of April. The good news is that I still have three weeks to redeem myself.

So how am I going to do it? How am I going to redeem myself? My average winning trade so far is four hundred eighty four dollars and my average loser is 1070. Now that's a little unfair because a five thousand dollar loss when you've only had 25 trades severely draws down your your average. But right now my average is only five hundred dollars average winner and a thousand dollars average loser. That's not a good ratio.

My percentage of success on 25 Trey's is 56% 14 winners and eleven losers, which is also not impressive. This is a small piece of data, so it's not as you can't draw as many conclusions as you could from from a larger string of data. but right now this is not. This is not very good.

So what am I going to do to get myself out of this little rut that I've kind of gotten myself into here? I'm going to do the same thing that I did in the month of May I'm going to focus on bases now. I'm going to reduce my share size a little bit maybe down to 5,000 shares, but I'm perfectly willing to take ten, fifteen, or twenty thousand shares if we see an A quality opportunity. But the reality is, we haven't seen a lot of those in the last two months. so the smart thing for me to do is just to scale back to focus on the base hits.

Let's think of this, you know, my kind of trading account or even the month of June as a wall. A stone wall. Well, that wall just got knocked down by five thousand, you know, stones. There's a couple ways I can rebuild I can rebuild.

You know, one little pebble at a time. which is you know, $50 $100 winners. That's going to take me a really long time to build back up. What I'm going to do is just focus on basis.

You know, twenty five hundred, five thousand shares capturing twenty cents of profit. That's five hundred to a thousand dollars. even though my average winners right here are the same as they were in the month of May I allowed my average losers to get too big and my accuracy dipped probably because I was being too aggressive. Scale back, tighten up the stops, focus on a quality set ups, and what I expect to see is a shift of the average losers getting much smaller, my accuracy going up.

and even if the average winners don't increase a lot because the losses are smaller and accuracy is better, I'll finish the month in better shape. That's the way to do it. I've been here before. I've been here, you know, through at the end of April but I've had individual days where I had a big loss I had to regroup and you know, come back into the market with a game plan and then most importantly, follow the rules of the plan.

All right, So you know if I scroll back here through January 1st you can see big picture broad stats: one hundred and Thirteen thousand dollars and this is only for the account that started with five hundred and eighty Three dollars. So from $583 up to a hundred and thirteen thousand dollars average Winners 974 average losers 998 So my profit and loss ratio right now is about one to one, but my accuracy is 67% if your ratio is one to one. If you lose 100 on average, you make 100 averaged over 100 trades. What's your accuracy need to be to break-even 50% right? 67% is profitable, so this is fine.

These are good stats. If I looked as a student who had these metrics I'd be like it's good. Your accuracy is fantastic. Your profit loss ratio could be a little bit better, but your accuracy is good.

Best way to improve the profit loss ratio is to tighten up the stops. That's the best way to do it. So that's my goal here for the month of June As I work my way out of this small rut, this rut is not as bad as the rut that I had in April because April was three consecutive red weeks and it was emotionally kind of just draining. Since then through May I had one, two, three, four, five consecutive green weeks and now this right here is my first red week since those five greens.

So my goal for the end of next week? Close the week. Green Even if it's only by twelve hundred bucks or fifteen hundred bucks or two thousand bucks, just close the week green. This is a marathon. It's not sprint marathon.

If you can focus on these small, consistent base hits keeping your stops tight, then inevitably you will get a trade that ends up being that home run trade or will get into a market where we'll see a stock like the Ry S that goes from you know, twelve dollars to fifty dollars and you'll be able to really capitalize on it. And you'll have that one day where you make twenty two thousand dollars. Or maybe I'll have that day where I make thirty thousand dollars. But in the meantime, I'm going to focus on rebuilding this wall one brick at a time and at a certain point I'm going to get up to you know, the level where the wall has never been this high and now I'm you know, making new ground and I'll just continue to do that one brick at a time.

All right. So now what I want to do is switch gears here and answer some of the questions that students submitted this week at Warrior Training Comm slash show. All right and this is a picture here of me over at our Inner Circle session and working with a couple of students. We've got a bunch of pictures that we'll be showing over the next few weeks.

All right. So the first question and again, if you have questions, you can submit them on Warrior Trading Comm slash show and I'll answer some of them next week. Alternatively, if you guys want to put in questions in the comment section of YouTube or Facebook I'll come back through during the week and answer some of those questions. So I love the the questions the thumbs up! Those are really cool.

Okay so the first question was from Mark and Mark said what is the safest entry on a stock that just hit my high of day Momentum scanner So I get this question. A lot. A lot of our students are using high D Momentum scanners of course I have my proprietary scanner set right here that I share with a lot of our students. but a lot of traders you know all over the place are using these types of scanners.

So when a stock hits the hide a scanner, the first thing I look at is the details before I even pull the chart. I look at the details of the alert now I've filtered these alerts so I actually have one, two, three, four, five, six, seven, eight different scanner sets, all searching the market and giving me the results in the same window Now I Can tell by reading the strategy name which alert is being triggered. My favorite alert is massive volume on low flow of stock because that's a massive imbalance between supply and demand. and those types of imbalances can create parabolic moves in the range of 100, 200, or even 300 percent in a single day.

Now that doesn't always happen when I get one of these yellow alerts, but that's the potential. So I'm really quick to check those ones out Now in the case of MOS Y today, this didn't hit the scanner until 164 now. I was already in it at 150 because a student in the chat room called it out and said hey, take a look at this I think it's a good setup I think you'd like it I pulled it up and I was like yeah, you're right, it's great I'm going to jump in and of course that's the value of being in a community of you know, thousands of traders all looking for basically the same type of stocks because for the most part we all trade the same strategies. So MOS Y hits at 1006 and the first thing you see is that okay, it's high volume and low float.

The float is 5.26 million shares, so that has some good potential. Total volume of the day 370 thousand shares of volume. It's a little on the light side, but it just made this big move. All right.

It's up 16% on the day, so the first thing I would do is I would look at the 1-minute chart I look at the 5-minute in one minute and I check the daily Are we running into resistance and the answer is no, This one has lots of potential. It doesn't have any resistance until the two hundred exponential moving average. So what I would look for is the first pullback. Now if by the time I'm getting the alert, the stock has already had a good one minute pullback.

I have to wait for the five minute setup. In this case, we basically just squeezed up from 140 all the way up to 170 and then we started to pull back. So I would have said okay, this looks good right here. For the first one-minute candle to make a new high on this one-minute micro pullback, then the entry would be 164 in the case of the stock.

And in fact, even though I was already in from 150, I added 5,000 shares at 164 because I felt so confident in this one-minute micro pullback. I ended up selling as it squeezed up to 175. Now if you're in the case where, let's say it doesn't hit your scanners until it's hitting 175 right here. Maybe it didn't have enough volume to hit the scanner before, for whatever reason it you didn't see it then I would say okay, it's already had the first one minute pullback I can't trade on the one-minute chart at this point until it has a five-minute pullback.

So then I would wait for the five-minute pullback and that would be a pullback down to the hour 9:00 exponential moving average or maybe the view app and I would say okay I'm going to take an entry for the first five minutes and Allah make a new high and I did. I also took that trade I got in at 168 and I sold on the move it went up to a high of 180 I sold it like 173 so you know in total I made like 1,200 bucks on this trade and it was it was. It was a good easy trade by focusing on the right entries. One of the biggest mistakes for beginner traders is see the stock hitting the scanner and they just buy it.

So when let's say when it first hit, they just he just bought it at like 170 way up here. Well now he's in high, he's bought it high and it's going to pull back and now it's it pulled back. he's red. So the safest way to trade these is to wait for the first pullback whether it's on the one-minute or the five minute time frame and that really just depends on your probably personal trading preference.

Okay, so that answers Mark's question. Let's see next one. Andrew he said I keep struggling with selling winners too soon. What should I do? This is I mean this is for sure a very good question and I've struggled with both selling winners too soon and not selling them soon enough.

Where I end up being up even in fact, the stock that I lost $5,000 on this week I was up four grand on it and I didn't take the profit and then I also didn't stop out when I was at breakeven and they ended up losing $5,000 That's a $9,000 swing top to bottom. now. One of the things when I talk about Jessica and this she's a student that submitted a story this week. One of the things that she talked about is the fact that upon taking a really big loss say in the instance of losing $5,000 she realized that just as quickly as you can be on the wrong side of a trade, you can be on the right side of the trade and you can be up 5,000 or 9,000 or 10,000 dollars.

The market has that potential. It's about you positioning yourself on the right side of the trade. So Andrew you know for me, there's a couple things you can do if you're in the habit of selling your position too soon and a lot of our students have gotten into this habit. One of the things that I've done that's helped me get out of it is instead of selling the whole position when I'm up, you know, whatever it is, 300 bucks or 400 bucks I only sell half, I sell half my position and I hold the rest with a stop at breakeven.

So that way I kind of like I kind of give in to that instinct, take profit. but I keep another piece for the bigger move. that works really well for me because I like to say that I'm an income trader I'm not trading speculatively in in a long-term retirement account that I can't touch for 30 years, right? I'm trading in an account that if I make money, I can draw that money out on Friday and you know, go do something fun if I want to go down Rhode Island or I don't know, do you know, do something fun. So for me, or even just pay a bell, right? So for me, it's important that I take profit when I have three, four, or five hundred dollars and that's why I sell half I sell half and then I hold the rest with my stock at break even if it comes back down to break-even Well, that's fine.

I'm out the rest, but more often than not, if you have good setups, if you have good entries, you'll sell half and then you'll sell the other half as it continues moving up. And the way I usually do it doesn't sell half and this lands up twenty cents. I sell another half when it's up another twenty cents. So now I only have a quarter left and I sell another half and they keep doing that until my share count is so small that I might as well just sell the rest.

All right. Last question from Jared: What's your opinion on trading an IRA account? Well, that's actually like I Just sort of mentioned an IRA account is I Think it's awesome because you know you don't pay taxes on the gains at the end of each year. So I certainly love that idea. You can build up the balance of your IRA And for me, what I would probably do I'm not trading in an IRA but what I would probably do is I would build up the balance.

You know, whatever. Have a twenty-five to thirty thousand dollar IRA Every time it got up to you know fifty thousand I would take out fifteen or twenty thousand of that and put it into mutual funds and I would just keep building it up and then putting away into mutual funds, building it up and putting it away because all that money you're putting away with compound interest over the next while depending on your age until you can retire, will just continue to grow. and you don't need 150 or three hundred thousand dollars in your day trade account. You just don't need that.

You're fine with thirty thousand for the majority of us, so that's what I would do. I would just keep building it up, taking the gains, putting it into the long-term but the fact that you can't take that profit out at the end of each trading game or at the end of a really good week could start to make you a little bit more speculative. Where you're like, you know what? I'll just hold this for. You know, I'm read on it, but you know what it is in my retirement account I'll just hold it.

It'll probably bounce back, so you just have to make sure you don't allow that to encourage you to form bad habits of holding positions too long or starting. Just be more speculative with your trades. You have to follow a set of rules and you have to continue to be in touch with your current trading metrics. Are you trading at a level that's sustainable long term? Or you know, are you starting to be a little bit aggressive? So that's that's basically you know might be back on trading in an IRA account? I Think it's a great idea.

You just want to make sure that you've you know you've positioned yourself in a smart way and you know that you continue to follow a certain set of rules. Okay, so um, those are the three questions that we had a ton submitted. but those are the three that I thought would be the most relevant to other students and traders who are listening. So again, if you want me to answer one of your questions next week, just go to Wario Trading comm slash show and I'll answer a question.

Okay now, um, viewer submitted story of the week. Alright now I Got an email from one of our students Jessica Actually is not one of these students here. This is a picture from our Inner Circle seminar in Las Vegas which was a lot of fun and I'm looking forward to the next one. So anyone who wants to fly out and trade side by side with me for a couple of days, definitely check out the Inner Circle.

But so let me pull up this email from Jessica So she's a student who's in our Warrior Pro class and she did something very typical. She took a trades at the beginner trader and she was almost instantly down. like four or five thousand dollars on it. She got into the trade, she was instantly down and she didn't know how to react to being in the rest.

He hadn't planned what to do when she takes a trade and it goes the wrong way and so what she ended up doing was holding it and hoping that the trade would bounce back. Now many of us have been there and what ended up happening is the company did a secondary offering overnight and in total she ended up losing over twenty five thousand dollars on that one train and I'm sure that many of you have been in a similar position I know that I have. And so she ended down $25,000 and for a beginner trader losing 25 grand I mean it's devastating. It's happened.

It's happened to me. I know how devastating to this I mean it's it's really an awful experience and the natural reaction is to say that's it. I'm done trading and I'm never trading again I'm done with this, right? That's the natural reaction and that's why 90% of traders fail. It's because they come into the market, they get burned and then they're out.

or like, that's it I just capped out I blew my account I've done this is hard. whatever. But and that's senescent. The typical reaction that most traders will have Jessica had a different reaction.

Her reaction was if I can lose twenty five thousand dollars that fast I can make $25,000 that fast. The problem is I was on the wrong side of that trade. If I'd been short I would be up twenty five thousand. And so she saw this as an opportunity.

She saw this that as an indicator of the tremendous amount of potential that the market offers, right? And so she realized she needed. If she was going to capture any of that opportunity, she need to refocus. And so she stepped back. And that's when she emailed me originally asking if you know joining where you're trading would help her with you know, her education and stuff like that And she was a little timid about getting back into the market because she felt like she had just had this really big loss and you know she just wasn't sure.

So we said I said yes. This is a good opportunity for you to learn what I would want you to do is to trade on a simulator. Don't trade with real money until you've proven in the simulator that you can be a profitable trader. And so she went through the Warrior Pro course and she traded in the simulator.

You know during that period of time and over the course of the next 90 days or so she graduated from our simulator and she went back to trading with real money. And one of the things that she did is she forgave herself for the loss that she had had before she was trading with an education. She said, you know what, it's not going to be my focus to try to make back twenty five thousand dollars in just one trade instead, even though she knew that was maybe the potential once she became a really successful trader. Instead, she decided to focus on building her account back up one brick at a time.

So when she emailed me her story as she's now been, she's now six months out from finishing the class and she's adjusted her daily profit target to five hundred dollars a day and she's been consistently making it. So although that may seem like five hundred dollars a day, like that's not a lot. The reality is that if she's able to maintain that level of consistency over the next year she make 100 grand, she'll more than pay off. You know that initial loss that she took, you know, or the cost of her education or anything like that.

and she now has a skill set that she can count on for the rest of her life. And so she basically what she did is she made that leap from being part of the 90 percent who fail to being part of the ten percent who succeed. and she could have just as easily taken the fork in the road where she said, you know what I'm done with this and she would be a statistic of the 90 percent who fail. She decided to do something different than what most traders do.

She decided to take this as an opportunity to dive in to learn to understand how she could have been on the other side of that trade and finished. You know, those three days up 25 grand instead of down 25 grand? So I wanted to share that story with you today because you know it's to me, it's really inspiring. You know it's a student who could have just as easily been a failure. I mean you know, a failed trader but instead she made the decision to be successful.

and I like to say that sick mom. This isn't always the nicest thing to say but I like just to say that success is a choice. but by saying that I'm saying that failure is a choice. but I think that people choose to fail when they either give up and walk away which is I understand the reasons for doing that and sometimes that is the best thing.

But I think that when you choose to trade from a place where you've been educated, where you've been trained, you're positioning yourself for success. You're choosing the path for success and you know that's what Jessica did and she's been able to. you know, totally turn things around. from being a trader who lost money to now being a trader who's not consistently profitable.

All right. So um, again I just wanted to share that with you guys today because I was really, you know, inspired by not only you know her story, but you know just the fact that she's one of those students who came into Warrior Trading. having already lost twenty five thousand dollars. you know she was already beaten up and we were able to give her the skills and you know, put her back on on the right path.

and so I'm really proud of her. So if you have a story that you want to share with me again, you can put this on. Submit it to Warrior Trading comm slash show. It doesn't have to be a success story, it could be a story of a bad trade you had or whatever it could be.

I'll go through those and I'll share them next week. Okay, so now I said that I would be given away the Warrior Star Tour course to one of our viewers today. So what I'm doing is from all the viewers that submit questions and stories Out of all of those viewers, I'm choosing one to give a gift to I'm not just it's randomly chosen one person. So even though we only did three questions, there were dozens of questions submitted on the website over the last couple weeks since we did our last Behind the Trades episode.

So today's winner is Christopher Lundberg and I'm going to email him I've got his email so I'll email him and and just let him know that he's going to have access starting tonight to the Warrior Starter course so he'll be able to trade in the simulator, he'll be able to trade in the chat room, and he'll be able to take classes one through four of the day trade course. Alright, so and if any of you guys want the opportunity to win a Warrior Starter course, just be a contributor on next week's episode of Behind the Trades. Alright, so again I want to thank you guys for all hanging out today. This has been a fun Friday afternoon and we'll We'll end it here I Hope you guys all have a great weekend and I will see you all first thing Monday morning.

Alright so remember to put in comments on YouTube and on Facebook and be a contributor on the show. It'll make it more exciting for the next episode. Okay, so that's it for me. I Hope you guys all have a great weekend.

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. Until then, make sure you subscribe to get email alerts any time I Go live or upload new videos. Until then! Happy surfing.