What's up everyone? All right? So I'm going to give you a breakdown on hitting max loss. All right. So this is very interesting when it comes to trading because we can very easily set a mental max loss like let's say, twenty thousand dollars, which is my mental max loss. But then you're down 21 000 You say? Ah, I'll take one more trade and so, uh, some students were like ross, do you know what your metrics are from when you trade past your mental max loss And I said, you know I really don't And I also said, hey man, why are you calling me when I'm in the middle of a video hello, hello, hello, Who is this? No, no, no, no, no, Rachel, Come on man, I'm gonna put my phone on you All right? So um, I've always been looking for Rachel, Rachel, and Ross, you know, friends.

So that was the question. What are your metrics when you exceed your max loss, right? And obviously I hadn't really been tracking that. Now I have my trusty computer here and on my computer in Trader View, which is the website that I use for metrics. I can look at win versus loss days.

So what that does is it aggregates all of the days that I'm read and just tells you your statistics on those red days. Um, so for instance, um, since July. So for the last like two two months, um, on my red days, I've lost a combined total of 240 000. My accuracy has been only 60 percent, and my profit to loss ratio has been pretty bad.

Where my average winners have been only 1200, my average losers have been 5 000. that's not great. Uh, in that same period, my winning day metrics are 70 Accuracy 580 000 Total Profit: 70 Accuracy Average winners are 2100, average losers are 1300. So the average winners are twice as big on my winning days, and my average losers are twenty percent as big.

Instead of five thousand, they're only about a thousand. Well, maybe not quite twenty percent. Twenty five percent. A little less than that.

But in any case, so this is interesting and all well and good. And what that generally tells me is on a day when I'm starting to go red, sometimes I start to swing for the fences, I take a couple huge losses, it hurts my metrics, and I end up finishing the day deeper in the red. But this is all the red days and what I really wanted a better understanding of were the days where I was approaching or below max loss. And so I tracked them just on a piece of paper.

And this is beginning in July and goes for the last month or so. a little over a month. So I had eight days where I hit my max loss of twenty thousand dollars. Now on, Uh, the first day my note was I hit minus twelve thousand uh, one more trade and went down to minus twenty Eight.

Traded out of it was down only minus fifteen and then one big loss. Finished down 40k on the day. All right. So in other words, I went down uh 12 000 on the first trade, was then down 28 000 by the second trade and that was my max loss.

I should have stopped minus 28. But I kept trading until I was down 40 grand. Which means I lost an additional twelve thousand dollars past my max loss the second day. Um, I took two more trades past the max loss.

One was a 5k winner, the next was a 7 000. Loser lost an extra two thousand. Okay, so that was the day I hit my 20k max loss, took two more trades, one winner, one loser, the next one. Um, I went from uh up 20k to minus 15k in the afternoon.

This was Fomo and I was trying to make it back. Now the thing on that day is that I have a max loss or I have one of one of the mental rules is that if I give back more than half my profits, I stop. So giving back more than half my profits would have been when I went from up 20k to up only 10k. I kept trading past that rule and lost an additional 25 000.

So on that day I lost an additional 25k past when I was supposed to stop. Um, I had another day here where Um increased my max loss. I was down 30k, then 32, then 37 and um, it just kept losing. So finish the day down 37 000 which was, um, 20 sorry, 17 000 past what I should have traded.

So already we've got one, two, three, four days where trading cast. My max loss has cost me now cumulatively. Uh, let's see two Plus Twenty five. So thirty five, Thirty seven.

So forty four, Fifty Four thousand dollars, Fifty Four thousand dollars into one, two, three, four days. So an average of over ten thousand dollars per day. Okay, so let's keep it going. Uh, the next day I lost 11k on the first trade, then made eight thousand on the second, then on the third, lost 19 000, finished down 30k.

All right, so we've lost, uh, ten thousand dollars more than 20k max loss. And I'm not sure exactly when I crossed it, but we'll just say at some point it must have been when I was down 19k. Well, in any case, just add another 10 000 there. So now we're at 54, we're at 64 000.

And then I had a day where I lost um, 10k on the first trade, 13k on the second, so I was down 22k on the day, increased max loss to minus 30k Traded Robinhood ipo made 30k on it, finish the day flat. Okay, so now we've got one day out of the last. One, two, three, four five, One out of these five days where, uh, well, it's actually this is the six. So one out of six days trading past max loss.

I finished green. So on that day because I was down um, 22 000 uh and finished flat, I actually made back trade past max loss about 25 grand. Okay, the next day I was down 20k. At the open, I recovered 13 000 of it.

and then I lost 30 000 in one trade. Should just stop at the open down 20k. finish the day down Uh 30 which is another 10 000. So now we're at 74 000 in losses.

Have another day here. Trade past max loss. Lost 12 000 at the open. Oh, this was today, Um, then lost.

Uh, was down 20k. ended up doubling the loss to being down almost 40k. So now, plus another 20.. So that's 94 000.

And so what we have here are, Uh, let's see one, two, three, four, five, six, seven, eight days, Eight trading days. And in one of the eight eight trading days where I hit my max loss on one of those eight days, I finished grim. Alright, so let's look at the metrics. Um, here.

so one divided by eight. So twelve and a half percent. So I have a twelve and a half percent chance when I'm down twenty thousand of finishing a degree just at zero twelve and a half percent chance. Uh, and so uh, or an 88 chance of losing an additional let's see, ninety four thousand dollars divided by seven Thirteen thousand.

So, an 88 chance approximately of losing additional thirteen thousand. Uh, Which would be when I'm down 20 000. Uh. increasing my loss by over 50.

So the metrics here of these last eight days. Now, eight days in a career of hundreds of days, is. uh, hundreds of trading days. There's 250 trading days a year.

So in any case, maybe thousands of trade days? Whatever. Eight days is not a not a lot of days. However, the early indicator is pretty darn clear, right? Max loss. Trade past it.

lose more money the majority of the time. So um, I think that's the. Um. that's the long short of it.

Cut your losses, stop at your max loss, set it, and follow it. I know it's hard, it's easier said than done, but it's the right move. All right with that, I'll let you guys go. And that, right, There was an entire video with no ads.

I don't monetize my youtube channel with video ads, which means you guys get to enjoy the content. but do me a favor. Please hit that subscribe button and give me a thumbs up and let Youtube know that this channel is the channel to watch if you want to learn about day trading.