Alright guys, so today we're going to do a red day recap, which this is the first one we've done for 2017, you know, certainly had a bunch of them in 2016. Red dates happen. I've just been fortunate that up until today I've had a nice long green streak in the small account. So as you guys all know, I started at January 1st with 583 dollars and I built my way up to twenty two thousand, one hundred and Ninety three dollars.

That was my opening balance this morning in a small account which was all in all I was impressed I didn't think I would have such an amazing day yesterday yesterday I made 76 hundred dollars or whatever it was and I thought that I would be able to continue that momentum into today and I made one critical mistake and I'm going to go over that mistake, but the net result is that I'm closing the day down five thousand, six hundred and fifty-two dollars which you know it's 25 percent I mean that's a it's a big haircut and I'm not happy with it, but at the same time, I'm still net positive on the week between yesterday and today and this is what comes with the territory. When you get aggressive and you're trying to aggressively grow an account, you're taking larger amounts of risk and it's inevitable that even the best traders were not right a hundred percent of time, you know. I my accuracy is between 65 and 70 percent. So as a matter of time until you know, I got a trade that really went against me and with big size, the loss adds up.

and of course, trading on margin. this is the risk. But all in all, even though I'm frustrated with closing the day red, I'm still thankful that it's been such a good month. I'm still up 17,000 on the month give or take and this positions me really well to continue growing my account.

and I certainly wouldn't have been as aggressive as I was today if I didn't have this cushion because even though I've taken the loss today, I can afford it. I'll bounce back tomorrow and you know, like I said, I'm still not positive on the week. So let's look at the trade that I took and we'll talk about the rules that I may have broken. Now as you guys know, anytime I break a rule I've got to run five miles and actually just got back from a five mile run.

You barely notice it, but you could see the sweat here and I'm feeling refreshed, feeling in a better headspace, and ready to you know, do a recap of everything that I did today. All right, So let's jump in and talk about our GSE All right, so our GSC this is the one that I really screwed up on And the thing is, yesterday, this is the stock that I made $16,000 on. So it's just again this week. the end of the end of the week recap on Friday is most likely going to be talking about how the best trade of the week was our GSE and the worst trade of the week was our GSE because it was the most volatile stock and it had the opportunity for really you know for big profits or losses if you didn't trade it properly.

So yesterday, obviously it got into this one right out of the gates I got in it for 440 and or 450 and rode this momentum all the way up to 586. And then what one of things I was saying yesterday. My recap is that this one is worth watching for follow-through because if it gaps up a little bit overnight and opens just below yesterday's high or today of the high of Monday at 586, it'll be worth watching for a break of that high. Now that's almost exactly what happened.

we ended up opening or we ended up gassing up pre market and when I saw that I was like you know what, this thing looks really good for breaking yesterday's high and continuation now I wanted this to hold under 550 and I want to get in once the bell rang for a break of 550 in anticipation of the break of pre market high yesterday's high of 586 and then ride that through six 650 and maybe seven dollars. What ended up happening is pre-market It squeezed up to a high of 620 so we had a pre market high of 622 and so I was like alright. well I guess I'll watch it over 622 but you know I'm not sure I'm not really sure what I think this is kind of opening a it's already getting a little extended but at the same time I thought this is the one today that's going to give that could really give us a big win and could give us a big move. So the market opens here and just to show you guys my PNL here - Five thousand, Six hundred, fifty two dollars after commissions.

so obviously not a good day I Took the trade in my Speed Trader account as well and lost seventy five hundred dollars there. So combined loss thirteen thousand. And you know that that means I'm only up forty like forty two thousand dollars this month. which is disappointing since I was up 55,000 yesterday and at the same time, most people would be really happy with forty two thousand dollars in a month.

So who's having the last day of the month be a red day is is humbling. You know it kind of is a way of keeping me from getting too overconfident and it allowed me to start. February refreshed, recharged, and kind of focused on you know, trade by trade one at a time. Obviously, today is you know, one of the worst days I've had in over a year trading aggressively on a set up and you know just it is what it is.

So I'll talk about the trades. Alright so are GSC Market opens and we actually opened at Five Ninety Five and I was like perfect because I want to get in this at six I want to get in under the whole dollar I put my order to buy I put out orders to buy six thousand shares and I was like this is great I'm going to get into six because pop up to 650, maybe seven dollars Well I only fill 200 shares so you know I was like it popped up to 650 and instead of being up three grand I was I was only up a hundred bucks and this is when I you know and this is in a matter of seconds really I got pressed my order as soon as the bell rang, filled 200 shares at six dollars and twenty seconds later were up at five at six fifty and I could have done one of two things there I could have said, you know what, this is annoying, but I'm just going to wait for the first clean pullback. That would have been the smart thing to do instead. I said I'm just going to jump in at 6:50 I'm just going to get into the half dollar because I'm basically not in.

this thing is running I'm just going to get into the half dollar Now that's essentially what I did yesterday I got in at 450 it hit already squeezed from four to 450 before I even saw it. So I got in at the half dollar and I just jumped right in and obviously it worked, ran up to 650 or six 583. Whatever it was today, it didn't work I got into 650 and we popped up to 669 and then we rolled over very very quickly and in a period of two minutes, we were down at 550 I stopped out at 6 I stopped out at 6 sorry 575. So basically I was watching here for the first candle to go red and part of me wanted to wait to let it pull back so I could maybe get a red to green move and I was like okay, well when I was down, you know as soon as I was down like 20 cents I kind of was like panicking for a moment because I was like all right well and I'm down 1,500 bucks and this is not good but you know, let's just give this thing a second.

it just popped up very quickly, it dropped down I don't want to sell and then have it run right back up so I'll just give it a second. next thing I know it's a you know for 10 and I'm like okay this is this has just gotten a lot worse and now I have to decide do I just mark it out or do I try to see this through. and so far this year I've had a couple of trades that I was fairly deep in the red and I decided to see it through. I held through the pullback and then the first one-minute candle to make the new high.

we went right back up. Remember on DFS n earlier this month that happened and ended up, you know, holding it down $4,000 and then booking a profit as it moved back up. So in this case though because I was in the small account and because it was, it broke below six dollars I said that I've got to just throw in a towel I can't I can't continue to hold this and in fact, that was the right decision because it ended up dropping down to five thirty and that just would have made the loss worse and worse an already bad loss worse and so I'm not happy about the trade today. I would say the thing that I did wrong was I gave in to the fear of missing out and that's really what it was.

It was the fear of missing out. It was the frustration that I missed my fill at six dollars that that emotion sort of took over my trading and convinced me to just press the Buy button at 6:50 just get in higher. it's fine and when I was down 50 cents, it was just kind of like well Wow Okay, that happened fast and then by the time I hit the sell button I was down 75 cents and so are there things that I could have done to mitigate this loss or to have made it smaller. Certainly, if I had had an automatic stop 20 cent down 20 cents that would have taken me out and I probably would have gotten filled around.

you know, six twenty or six thirty and that would have saved me some money. You know in this case it would have obviously in the case earlier this year with the FFN I would have lost four thousand instead of being green, so you know in that case it worked to hold. In this case it didn't But that's really the only thing I could have done is is to have bailed out faster once I was in the situation. What I could have done to a prevent - this situation is to have said to myself and this is what I'll say to myself in the future.

If you get a partial fill on your desired entry where you want to get into a trade at six fifty or six dollars and you only get filled two hundred shares, then you can't You can't chase it, you have to wait for the next pullback. It's just what I have to do because this is not the first time I've actually made that mistake of getting a partial sell, being annoyed that I was in a winning position, but only with this teeny size and then ending up adding a lot higher and then stopping out as it came back down. And it's incredibly frustrating I know there were people in the room that got in at 6:00 and sold at 6:50 where I was adding because they're like I'm up 50 cents I'm going to take some profit and they did. They took some profit and they are ending up green on the day while I'm ending up red.

So today is one of those days where I'm paying my dues and you know I'm taking the loss. This is part of the deal with trading and you know, unlike a lot of traders out there and sorry guys, I didn't show you my pl. For those you want screen share, you can see right here you know I'm like a lot of the traders out there, a lot of traders are happy to brush the losses under the carpet and that's the easier thing to do because it's not fun to talk about. It's not fun to have a big loss, but this happens yesterday.

Making $16,000 was awesome and I was happy to talk about that. and today losing 13,000 is not awesome and it's frustrating but still up three grand on the week and today was an opportunity to reflect a little bit on my strategies and on the way I'm trading and on how I allowed that emotional frustration to kind of pour into the way I was executing my trades and I think that that by itself is something that I can learn from. And so later in the year when I'm taking trades not with 7,500 shares, both 15,000 shares or with 25,000 shares, I'll be bright better prepared to handle that share size because I because of this, you know, and that's kind of what I try to, You know to say is to people and students in general is that every time you make a mistake, it's an opportunity for you to learn and to improve your strategy. It's the problem is not making mistakes, the problem is making the same mistake again and again and again and again.

And that's where you really need to address. Why do I keep doing this same thing when it becomes the pattern that and ahead and a habit. I'm usually pretty good at having that sense of awareness and that mindfulness to recognize when I'm making mistakes or you know, doing something I shouldn't and correct it and that's you know something. I've developed through my years of trading.

So even though today is a frustrating day, I'm I still feel fortunate that I've had such a good month and that I'm able to afford this type of loss because I certainly couldn't have afforded this earlier in the month, right? You know? I mean I had to be very aggressive to get it to this point, and that did mean taking extra risks. Yesterday's trade was very aggressive and it worked. Today's trade was also aggressive and it did not work. But really, the problem today is that I chased the initial entry by 50 cents and I didn't do that.

yesterday yesterday I got in where I wanted to and then I rode the momentum. So you know something to be mindful of I know that students, you know look at my trading and want me to be setting an example. and so that's why discussing these losses are really important because I want you to be able to learn from the mistakes that I make. So maybe you can learn the same lesson I learned today without having to lose fifty five hundred dollars.

Now some of us have to learn things the hard way and I was probably that way a lot when I was learning to trade. So you may end up having a similar experience and it will remind you of this. you know kind of recap that you know we're going through today and I was very excited yesterday that I was up to 22,000 and I was like wow, you know I'm going to be at 25,000 and before you know it, this is fantastic and you know, obviously it just took a bit of a step backwards and so I've got to regroup. I've got to adjust.

Today's the first red day Day 20. It's the first red day of the challenge and it's although it feels like a big step back. I'm actually still further ahead than I was yesterday morning I just wasn't expecting to get back so much of yesterday's profit and I of course wish I hadn't and I am frustrated myself and I'm definitely going to be my own. my own worst critic in this sense that I'm up 42,000 and I'm not happy about it because I because of the way I ended it with a mistake, you know and so hopefully that helps me improve my trading so next month can be even better.

And when I take bigger share size like twenty thousand or twenty five or thirty thousand shares at some point which I'm sure is inevitable with scaling my strategy that I'll be better prepared to handle those share sizes and to make good decisions because this is a trade we're really in in a matter of two minutes. I had the potential to either make you know $1,500 or $2,000 $3,000 or lose. you know, ten thousand, thirteen thousand or more. And this is a trade where I'm sure short sellers probably in general would have done better than long biased traders, but that's just part of the deal I Think one concern with our GSC is that we didn't have a fresh catalyst number one and number two: it was already pretty extended pre market.

Those were two warning signs that I that I recognized. but I think that I wanted so badly to get us to a repeat of yesterday that I was willing to just kind of be aggressive. and I was thinking again about how well last time our GSC had a big day. The following day, it gapped up and just went even more.

Maybe we're going to see the same thing today. Other traders might be thinking the same thing and I feel like that could have happened, but for whatever reason, it didn't today. and maybe it's because today the stock that was really in focus was Dr. YF Obviously, Dr.

Ys has been. you know how to had a huge day. It's up a hundred percent on 84 million shares of volume. so this is a very sickly traded stock.

There were a few good entries on the five-minute chart, but definitely not one that I would want to trade on the one minute. and by the time I hit my max loss four or five minutes into the day I was done. and I don't trade past the max loss and that's the thing you know when I hit that that level I'm done for the day and you know that's for me. The way I keep myself from going even further into the red.

So yes, today definitely is exceeding my max loss which was $1,000 I Wasn't expecting that I would get into a trade that would drop so quickly, but it happened and you know I think this is one of the areas also where as a trader it can feel like the market is kind of, you know, working against us because we can work. you know so hard. I'm having these consistent days. Consistent wins.

you know, 200 here, 300 there? You know, 500 here, six aren't there? whatever and then in one day all of a sudden something happens like you just get caught in one of these total sort of like freak pull backs where you lose 75 cents like that or you lose your internet connection by the time it's back online you're down 75 cents and those all serve to you know, beat up your account little by little and it just means you need to be extra extra disciplined to stay on your game because there are some things that we can't control. For the most part. we usually can control how much we're going to lose, but there are some times where you get overly aggressive, you take too much sighs, and you've suddenly increase your exposure more than you were expecting. And that's basically what happened today.

So you know again, it's part of the deal with trading that yesterday. even though I was felt really good and I was happy about the day at the same time, yesterday was just another day and today is just another day. It's a red day and hopefully tomorrow we'll be able to bounce back. But I'm not going to try to make back everything I Law today on my trades tomorrow I'm just going to focus on one day at a time, the $500 goal.

and if I can make $500 tomorrow, that'll be a good day. And if I just keep that up by you know, the end of February I will definitely be it the $25,000 mark and I'll have hit my first. You know that first line in the sand and I am really eager to get there, which maybe was part of why I was a little more emotional on my trades today, holding longer than I should have or chasing when I really should have just waited for the first pullback. Now if I had waited for the first pull back on our GSC, there obviously wasn't one.

so I wouldn't have traded it at all. and I may not have taken a trades today because there really wasn't a laugh. It looked good. The only thing was Dro is on the first five-minute pullback, which would have been an entry at 433 so that's the only thing that I saw that looked decent.

and other than that's been a fairly slow day and now we're kind of in the lunch hour. So I think I'll just you know today's a day. I'm looking at my calendar where it's like just yesterday. Biggest win of the year today, biggest loss of the year.

Same stock shows. there was a lot of volatility there I got a really aggressive maybe I was too aggressive yesterday and again today and so paid my dues a little bit. But fortunately, finishing you know between these two days net just under $3,000 and that's good. $3,000 a week is fine.

I'd prefer 16 to 20, but that's okay. This is. This is not bad. The big picture is that this is about the marathon.

It's not about the sprint, and it's okay to take a couple steps back to regroup, get yourself refocused, and then get back on the horse. So this will still be my biggest month in over a year. Right around forty one, forty two thousand dollars. But it's kind of bittersweet because the fact that I was up $55,000 yesterday.

So that's a reminder that I'll be K into next month and hoping that I can stay focused through early. February trade the best quality setups, be aggressive on the best quality setups, but also be smart about my entries and to really avoid chasing things. that's I'd say that's the biggest thing and that's the real lesson from today is not to give in to that fear of missing out. when you miss the entry, you just got to wait.

don't chase it. So that's the thing that I really kind of screw up on today and you know I can beat myself up about it, but it's not going to change the day. It's not really going to help me be a better trader, so the better thing to do is to make this experience a lesson to help me trade. a little bit better tomorrow and a little bit better the next day and a little bit better in February and so on.

And that's how you improve your your skills as a trader. So yeah, I started this morning at 22,000 and equity - 5600. I'll open tomorrow around 16,000 600 or something like that. So it's obviously a step back and I'm just going to focus on rebuilding you know, one brick at a time and getting myself back up towards 20.

And and that's fine. My goal this week, actually my goal this week before I obviously had that big day yesterday was to $3,000 profit 3,300 for the next three weeks and that was going to get me on track to hit 25,000 by by mid-february by President's Day weekend. So I'll kind of just shift back to that goal and that means between Wednesday Thursday and Friday. Hopefully, I'll be able to make another thousand or two thousand dollars and next week 3300 the week after 3300 and then I'll be at 25000 and this is you know, good for you guys to see.

I Think if I was able to make it from $500 to $25,000 without a single red day as awesome as that would be, right, that would be awesome. At the same time, it would not have shown you what it looks like to have a loss and to struggle to feel frustrated and to deal with those emotions. And that's something that almost every traitor, especially beginner trader is going to go through. So having this read de recap in the middle of this challenge is important and it gives you another perspective.

It's easy to talk about the winners, talking about the losses. It's what can be more challenging and you know that's the thing we're everyday. we're doing these recaps a lunchtime and going over the wins and the losses because I want you guys to really be along on the journey to see this whole experience. And that means that when there's red days, we'll talk about them and they may not be fun and I may have made mistakes, but you'll be able to really sort of see the market as best as you can through my acts and that's my hope.

So I'll finish the months here up, whatever it is. 17,000 plus or minus 16,000 I'll total it up once. I've got my statement for the month, but I'll probably in our Friday recap. give you my week my monthly stats, but you know, finishing up from $582 2 or 83 dollars to 16,000 something and that's by itself.

Definitely achievement. You know if if you told me that I would be able to do that in one month even three months ago, I would have been like I Don't know about that because last year when I did a small account challenge, I took a thousand dollars and turned it into eighty six hundred in one month. So I doubled my return on half the account size so quadruple return I Mean that's that's pretty good and hopefully we'll be able to see continued strength as I build this account through 25,000 shift back into my Speed Trader account and work my way up towards a hundred thousand, but there will be bumps along the road. I'm sure this won't be the element I Guarantee you will not be the only red day recap.

will have others will talk about it. We'll go through them and I'll make sure I answer questions that you guys have. So on that note, do you have any questions about the trade? The one trade from today add Josh a question about Dr. Wyeth What? I've traded Dr.

Ys to the initial pullback of 385. Where's that pullback that you're looking at? Are you looking at the one-minute chart? I Don't see it on the 5 minutes right here? Yeah. I Sold. not in the market order but as a bit on the bid and my order got picked up right at it.

Actually took the entire order 7700 shares right at 575. It wasn't in blocks, it was just the whole thing gone. So it was a yeah. Picked up the whole thing right on the bid.

let's see and Andre I Don't set stops before my entries. Today is one of those days where you know I might question that technique, but I don't. When I get into a trade, I have a mental stop and you know nine times out of ten I'm able to stop out quickly. This year I've traded with I think it was something like 60% success.

I've had lots of losses. lots of small losses, you know, a couple bigger ones, but for the most part they've all been fairly small and that's all using mental stops. But I do have these losses today that got a little out of hand and a mental stop wasn't as quick because I got a little emotional and so I decided instead of just selling, pressing the bail button to hold a little bit longer and you know that was obviously a mistake, but it is what I did. Yeah! so I bought our GSC I got filled at 9:30 in two seconds with my two hundred shares and then I filled at 9:30 and 20 seconds and 9:30 at 23 seconds at 6.50 and then I sold at 9:30 - and 33 seconds at at 575.

So when I go to sell my position I can see if the order is going to get filled or not just by looking at the status of it and that one is one that just went out immediately but I was Didn't know if I was going to get more slippage on it or if it would just go immediately. Those times are I can see them in my broker window so for those of you that are on Facebook you can see them right there. Well, the $6 profit target that I had on our GSC this morning was only because yesterday's high was 583. So I just figured that the whole dollar the next whole dollar would be logical.

and I think you know that's like I was sort of saying the best entry on this would have been right here at 5:50 for the break of the previous day's high. The problem is it, it kind of just squeezed up too much before the bell rang and so then by the time the bell rang we were already kind of going parabolic and it just ended up being sloppy. and we've seen this happen before and I was using limit orders to jump in the trade. My entries were all limit orders with an offset 5 cents above the ask so that allowed me to get filled well.

I guess I didn't get filled my whole position but that's because it jumped so fast I think from 6 all the way up to 6, 10 or 6 20. it just moved above the top of my limit order before I had a chance to to get much except for the 200. Well I was thinking based on my entry at 6:00 that my stop was going to be five. Like five eighty.

You know, five ninety. And then once I saw You know, surging up I think I was just like I'm just going to jump in. It looks like it's going to go right to Seven 650 to 700 - did yesterday 452 Five. So I'm just going to jump right in.

and then all of a sudden it pulled back. We're really fast. No. Matt I've got to switch back and forth between it.

- So my Commission's today eighty dollars in commissions and forty six twenty and ecn fees. Not even really sure how my Commission's got that high, but I guess just multiple orders at 450? Not sure. So Kami A DIY yes, I didn't trade that for two reasons: One, I was below my max loss. so I wouldn't I just don't trade past my max loss.

So that's number one. but number two. Even if I wasn't below the max loss, I wouldn't have traded it on the one minute time frame because it's too choppy. It's very crowded right now.

We've got 87 million shares of volume, so there's a lot of traders that have a very, very, very strong short bias on this and it Think this stock is going to go right back to zero or you know, head that way. It's just been reverse split, reverse split. so you know there are larger aiders that when this thing pops up, they're shorting it and that makes it more difficult to trade because you have such heavy resistance overhead. But you know.

Having said that, clearly it's showing strength. It's up 93 percent right now and the cleanest entries would have been five minute pull backs so on these types of stocks that are more crowded and a little more difficult to trade I Focus on the 5 minute time frame and that usually works well I just I mean I Think that just following the narrative on social media and some of the headlines we've seen on Dr. Ys, it's pretty clear there's a lot of people have a very strong short bias on it. Alright guys, so I guess we'll wrap it up there today and of course we'll be back first thing tomorrow morning 9:00 a.m.

pre market analysis building the watchlist. Hopefully we have something I can kind of sink my teeth into and you know, get a nice trade. but I'm not going to force it if there's nothing that looks good. I'll just have to play it smart and you know, kind of sit on my hands for a couple days I I'd like to course get that regard right back on the horse and start to rebuild, but I have to trade the best opportunities.

the best setup so we'll see what the markets willing to give us tomorrow. Hopefully there'll be something to trade and we can get February off to a good start. Alright guys, so I will see you all first thing tomorrow morning. All right Thanks guys! Let's be honest, if you made it this far, you must have really enjoyed that video.

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