What's up you guys? Oh my God. Well um I just locked up the biggest red day of my career I set a new record. You know, schmuck that I am I already had a 275 000 red day on my birthday a couple years ago. Well blew that one out of the water today.

it's uh, it's pretty crazy how much you can lose in one day trading. I mean everyone says that day trading is risky. it is I mean we know it. but man, today I got destroyed.

So what do I do now I mean I'm at this point where I don't even feel like looking at my computer I'm just like I don't Part of me is just like a like I can't even think about like even starting to rebuild. How do I Where do I even start from with that big of a loss? Where do I even start? What's even the point of sizing down trading with small size to make a couple thousand dollars tomorrow? Like it's even the point that's like gonna take forever. So here I am deep in the hole. I've been here before.

you guys have been here before with me so the only path forward is to try to rebuild so let's try to do it. and um I don't know I'll do the recap same as I did last time I had a big red day like this. I'll do the recap and yeah, looking at what else can I say, let's get into it all right. Today's my recap.

Biggest red Day Ever All right so we've invited you here because we love you. but we feel like we're losing you and we want to fight to get you back and we want to invite you to join the fight. So listen, we're gonna say some things. you're gonna hear some things and then we're done.

And if you're ready to join the fight I Want you to step in because welcome to your intervention! Let's get started. So today we're going to talk about recovering from a massive loss now I Know you clicked on this video because you love watching me lose money I've taken some big losses in my career. Biggest Red Day Ever 275 thousand dollars on my birthday no less I have set the a pretty high Mark there. but everyone at this table has had some big losses and I'm seeing a table right now.

We've got about 18 million dollars in trading profits between all of us here. I'm super proud of These Guys These are students of warrior trading and we're going to talk to you about how we recover from loss because there is no such thing as a day trader who doesn't lose money. Being a day trader means you are resilient. You get back on the horse when you get knocked down and so we're going to share with you some of the tips and tricks and strategies that we have for recovering from Big losses.

So I Want to go ahead and Jump Right In with Chris Why don't you tell me? what do you do when you have a big loss and I I know how we all know how it feels, that pain, how frustrating it is? What do you do? What's your go-to I mean I've had a couple pretty big losses, you know. I've done really well for myself since I started trading and uh, a big part of that since I'm pretty aggressive Trader was taking some pretty big losses. Um, one of the first things that I like to do after taking that big loss is uh I need to first of all stop trading usually. uh, the the opportunities to get back in have passed.

Um, and well, how do you prevent yourself from stopping I mean that right there Because for almost all of us, our worst day is because we traded way too far. So interestingly enough with my strategy, usually when I get stopped out, there's still often a big setup still waiting because I'm shorting into strength. So yeah, there's still a setup waiting. so I often have a chance to kind of mitigate that loss.

Let's assume that that is passed. All has ended very badly for me. Okay, uh. one of the first things I need to do is kind of come back down to reality.

you know? I even though um, I might have some ballot setups and some good action. um I need to step back and realize that what just happened and that I'm going to need some time, uh, to process the loss. and I'm also going to need some time to make backups. So in my case, you know there have been a couple of situations you know, with uh, five figure losses.

uh where I knew it was going to take a week or two if not more based on my strategy and my average winning days to make that money back. I Love that. So right away you get yourself in the mindset of I'm gonna be sitting here I gotta just sort of, you know, hunker down in the trenches I'm gonna be here for a couple weeks I'm not going to try to make it back all in one trade until you accept that reality. That's that To me, that's acceptance.

Yeah, that's acceptance. If I'm not accepting the loss, it's that's genuinely going to lead to Revenge trading and me taking unacceptable setups and risk to try and make that money back. So and I would only do that because I haven't accepted the loss. Yep, so really, what I'm trying to do is internalize the loss.

Accept that it happened. it's over now. as soon as I can wrap my head around that, it's going to be a process to dig myself out of it. I've done it before and now I mean for somebody's first time, they might have the experience to reflect upon.

Um, but at this point I've I've had a couple of big drawdowns and every time I've slowly and steadily pulled myself out and within a couple weeks I'm back on top again. That's awesome. So knowing that I've done it before, um, and the process has always been the same generally. I come back Day one: Uh, trading my setups trying to be as disciplined as if the loss didn't happen.

Treat every day is if it's a normal day. but I generally size down a little bit after that big loss. Um, you know I don't want to get emotional I don't want to hit things with size unnecessarily. Uh, you know.

and that's just me being a little cautious and I think I've gotten a little more cautious as I've experienced more drawdowns. you know as I've experienced what it's like Ai and uh, you know, just trying to accept that reality. Yeah, once you see the the reality of how big losses can be, you'll learn to start to slow down a little bit. Jess Tell me about you because your strategy is a little more.

Wild Card You've got some big big green days, but some big red days. How do you? How do you emotionally tolerate being on the roller coaster? Because man. I I don't know if I can keep doing it I've slowed down a lot I'm like slow and steady but I know you're you're turning into an old man on me. Yeah, yeah, no.

I I really like to I actually embraced the roller coaster feeling I like that um feeling of you know, big swings. um and it's not really a feeling, it's almost a disconnect. So I don't I I'm not attached to loss, you know Financial loss is not loss. it's um, you know if you lose somebody, that's loss.

If you you know something really happens in life that's lost. um Financial loss is not, it's it's It's not devastating to me. So I think my I'm upwards to maybe 15 20K in my biggest red day right around 15 000 or so plus commissions and all that. but it's I'm I'm very good at disconnecting from that feeling.

So my first initial uh instinct is you know what just happened What did I do wrong? Did I did I misread something? Did I uh take too much size and it almost sounds silly. but I I look at I'm like, well I just lost 10K um so that means we're in the market to make 10K There must have been volatility there to you know, create that loss and my first instinct is hands off and to see if I can maybe start to chip away at it. Uh, but it's only in a time of you know trading so present that I'm not reaching to recover I'm just um, actively trading what's in front of me. So even when I show up the next day, it's not to recover my 10K loss, it's just to trade what's in front of me because that will override any loss being fully present.

Yeah, I mean there are no doubt like some of my big in fact, my biggest screen. Day Ever I went red 25 Grand before finishing up almost half a million dollars. Sometimes getting kicked in the teeth gives you that sort of boost to come back swinging heart? Yeah, yeah, and when it connects, it can work. Now that's very dangerous because you've got to make sure you've got control over it and in the wrong Market that didn't seem to come back swinging hard.

you're going to fall on your face. Yeah, it's very important not to lie to yourself during that situation. what's what's actually happening? And I think it's very clear if you're If you're very honest with yourself, it's very clear to see what's You know what's happening right? there. Is the market truly hot? Because if it is, the loss was from Big volatility Unexpected.

Both the volatility is continuing. Opportunity is still there. So yeah, that that ability to detach yourself from the loss. Um, you know that's huge.

Manoli tell me about that because I know you're able to really detach yourself. Yeah, so I feel like I'm able to detach myself because I know that as a Trader even the consistent ones. There's an ebb and a flow to the markets, so you're always going to go through like some type of drawdown. It's kind of inevitable.

like you know it's coming. so in the beginning when you're first starting out, you don't really know that or you don't you're not fully aware because you're just trying to figure things out as you're going and and maybe become a little more consistent. I had I came in at the right time and I had early success and in my first I think it was 11. it was 10 or 11 months of trading I was I turned that 14 000 into 800 000.

So I was thinking I was coming for a million in less than a year I thought that was a cool Milestone I had that in my mind and I was I mean I sized up so fast it was It was kind of ridiculous looking back on it. I was making you know 30, 40, 50k days and that was that was okay in that market. And then I hit my first really slow period and I went through a three month drawdown that was about 200 000 and I know you might say well, you made 800 000. That's great but that was all new money to me.

you know I don't come for money. So when I went through that 200 000 slow draw down after just quitting my job and taking it kind of full-on that hit me hard. Yeah, so those losses in that long period that was devastating for me and it was like it was a big struggle and eventually I just came to terms with I'm not gonna make that money back, you know quickly and I was like I was back to that mindset like when I started where it was. You know what if I can just make a hundred thousand dollars a year or fifty thousand dollars a year? I'm gonna be okay here.

So I my account was sized back down to 30k I didn't want to lose any more money. got me back into building momentum for you know I was I went to just 50k days to 1 000 days. But before you know it, when you hit that that momentum that streak where you're starting to feel good, that confidence you start sized right back up. you're feeling good, you're taking green days and you make that money back so much faster than you than you think.

Yeah. So now because I'm aware of that and because I've taken big losses I I mean I've had solid days. but I think my biggest red day was like eighty thousand dollars and um, now for me: I'm just super proactive. so I don't know if you guys saw a couple weeks ago I if I feel myself choppy at all because I love taking risk I can I'll size in and I have no really I don't have a ton of control over that if I really like a setup I'm gonna take it with size.

Um so now if I feel like there's a day where I feel like I got chopped up at all. so I was like red, then green, then red, then green or I was super red at any point and then got back break even and walked away I will immediately size my entire account back down to 30k even if it was at 200, 300, 400, 000 because I'm not worried about missing out on profits anymore. I'm more worried about going through a big draw down period that's going to take me longer to build momentum again. Yeah and get back to where I was that is so big that is that right? there is Huge.

Jess and I were talking about this recently during a bear Market Trying to keep yourself positioned basically at your Peak ready to fight at all times. Yeah, and that means okay. red days happen. Keep them small, try to keep them tight that way if the next day something pops up and it's hot bam, you're ready to hit it exactly.

And so you know having having to go through a such a big setback that then you feel you have to draw your account down to bring down emotions, it it's It's not fun to have to do that because then you know you're you're basically guaranteeing it's going to be a long haul to recoup and it doesn't have to be that way. if in the first place you can avoid letting a red day get that big. So like every single day you're trading, you have to be kind of like thinking on the defense, it's like I need to make sure at the end of the day today I'm still ready to fight again hard tomorrow right among or Max Danny do you guys have anything you want to add about recovering from massive red days? So we got a record here of 80 000. mine's 275.

yours is like 18 20. Yeah, okay sometimes mine's like 34, 34, 000, 20 000. Also, thirty four thousand Thirty four thousand, Twenty three thousand, twenty three thousand. Yeah! so I've set the record on biggest red day.

Uh I'm not gonna say congrats Yeah, thanks. Good job Yeah! but I am uh while the biggest winner for being the biggest loser I will take some pride in that. So tell me what was it like for you because you I know your story many of you who know uh Danny he. He was so disciplined about trading in the simulator or trading with really small share size.

Yeah, like 100 shares, 50 shares for months, slowly scaling up and then within a period of like four months you all of a sudden were having like a 30 40 000 a month. and what was it? March or um yeah. So I started January 2020 just live trading I didn't I didn't know a whole lot I didn't know that there was a Sim I didn't know that there were classes that I could take I I found some videos on YouTube and I was interested I needed another source of income I was like I can give this a try So I started with a hundred dollars in a TD account. um I added 100 here.

a couple hundred here, a couple thousand there. It took me six months to go through my drawdown period to get back up to zero. Um I At the end of that six month period, I had like twelve thousand dollars in my account and at that point I was like I'm back to break even I'm showing progress I I decided at that point to take out of my retirement account. Pretty much pretty much everything.

Yeah. I I funded up to just over PDT um that August which was the first month that I was over PDT I made eleven thousand the next month September I made just under 14. Um I had a five thousand dollar red month after that. Um, and then I joined your winter school coming into 2021 because I I was already profitable.

but the plan pretty much always was to join Warrior when I could afford it. Um, so I thought more education is never a bad thing. Um, turned out that at the same time, the market in Winter 2021 was hot. Um, yeah and so I I it was February 2021.

I was on my best month ever I had just crossed 40 000 on the month and that same day after going from 36 000 to 40 000 that day on the month, I took a twenty thousand dollar loss. Uh, and that was pretty rough. but I was still ending up on my best month yet. Um, but man, that loss was tough.

Um, luckily it was such a hot Market that it didn't take long to recover. But um I think the biggest most important point is being honest with yourself about why that loss happened. And do you need to size down? Is your strategy still valid and working? Can you make it up quickly? Is it gonna take two or three weeks to make it up for me? it took three weeks to make that up. Uh, which I think is pretty relatively fast.

but um, being honest with yourself is such a huge point when you're taking losses. about what do you need to do to stop the bleeding and start to curl back up again? Yep. I Agree. I Mean it's huge, it's it's really.

it's really hard in the moment when you're dealing with that emotional response. This is something that you know. Trading big losses trigger emotional response. and so when you're in that emotional fight or flight response so hard your actions they're not intellectual, they're not based on your you know, all the education, all the knowledge you have.

You're making these very primitive reactions and and the re. the the reaction is you're trying to alleviate that feeling. And so when you have a big loss, the easiest way to alleviate it is to hit a big winner. And so then anything they hit a big winner.

And that's the opposite of acceptance. Yeah, right. Then you're just flailing. Desperation sets in and this is where people go.

Full Tilt Right Yeah. In in gambling your whole account, it can happen very quickly and and that's you Know what among was saying? You have to respect your Capital You have to respect your account and and it's important to put thresholds on your account from a higher limit, you know. I Call my broker and they have limits on my account, but at the same time, if someone's really going full tail, they could just call it their broker. So you know day trading is not for you.

If you have a history of doing that kind of thing, you need to have a huge degree of discipline and self-control but resilience to be able to get back on the horse. You have to think about it like a long-term game. No one trade, no one day, no one week or month right should be able to end your career. Never.

Yeah, Yeah, yeah yeah, no, that's that's true. And Max did you want to add anything else on this? Yeah. So when I first started out trading, um I would take like three or four thousand dollar losses and all I would do is just go lay in bed all day and sleep and act like you know that was the worst thing that ever happened. Devastating Yeah, at the time that was, those were huge losses.

Um, but recently I took my biggest loss to 34 000 loss in the end of August I believe it was. um, and at the time I was unfazed. Um, it. But after that though, once I started having more consecutive days and realizing that something wasn't working for me, that's and I knew something had to change.

Um, so I've actually learned this from Manoli but I sized on my account massively after that so that I would limit my risk and just realize that I had to start over actually and I think that's the best part about this though is that not one of us are perfect and that we'll always be learning from one another. Um, because we're never gonna be perfect at trading. but I think that's something to take into consideration as well though, and at any time you can go back to base at any time. Worst case scenario, you can pull the plug, size your account down, go down to four thousand shares or 2 or whatever it is.

You hope that as you gain more experience, you can intervene before you get to that point, because you know there's a cost of doing that, but it's sometimes what you need to do to press the reset button. So um, those of you guys who have, uh, been joining in today I want to invite you to join the fight, So what do you say? Are you willing listen? Trading is hard and we're all here. We're all going to agree this is a really hard thing to do, but if you want to make it happen, you need to come to the table with discipline and patience. So bring your discipline, bring your patience, be resilient, and we'll see you for the next episode.

Hey I Want to thank you for watching this episode? I Hope you really enjoyed it! This channel has crossed over 1 million subscribers as thanks to viewers like you. If you want to check out a couple other episodes that other Traders are watching, you can see them listed right here. Thank you as always for tuning in. I Hope you subscribe to the channel.