Oh hey guys! I didn't see you there. Well guys may not know this, but one of the things I enjoy doing on a bad day is trimming my bonsai tree. Been a pretty bad week. It's actually not much left of it.

It's pretty much dead. So what happened this week? Well, I lost about $15,000 over the course of four days. It was my worst slump in 2017, But the good news is I've bounced back I bounced back yesterday and I bounced back today and I'm on the way back up to $100,000 So today is our episode 5 of Behind the Trades and we're going to talk about how I recovered from one of the worst weeks of the year. All right guys, So we're going to jump right in.

You guys can see the slides for those of you watching on on screen, share in the chat room for those of you on Facebook I'm gonna set you up here so you can sort of see. now. you won't be able to see a hundred percent, but you'll be able to see, you know I think fairly well what's going on. So let's see.

Let me get this set up here and again. This will be all uploaded to Youtube so you guys can watch the whole thing a little bit later today or tomorrow if you prefer. All right, let me just adjust my computer here so you guys have a little bit to work with. All right.

So I guess that works pretty well. Okay guys, so looks like we've got a great turnout today, which is awesome! I'm glad so many of you have stuck around for this episode of Behind the Trades. It's been a couple weeks since we did this. In fact, the last episode we did what episode four was I think it was three lessons from how I made sixty thousand dollars in one month.

So you know what a change from episode 4 - episode 5 here. episode 5 of course being how I recovered from my worst week of the year now although I lost $15,000 over the last four days during that slump, my worst day of the year, my worst single day is a $15,000 loss. But the thing is I ended up bouncing back two days later with a twenty two thousand dollar winner. so it didn't even end up being a red week.

But this is a red week and actually this might be I'd have to look through. but I'm almost positive this is my first red week of the year. I'm closing the week down $7,200 The cold streak started at the end of last week and then continued into Monday Tuesday and Wednesday All right. So today we're going to talk about an overview of my weekly stats.

What I did right? What I did wrong. We're going to talk about the best trade of the week, We're going to talk about the worst trade of the week and then the main topic today is how I recovered from my worst week of the year. Now our special reminder guys, today is St. Patrick's Day So I am sure some of you are celebrating and you may need to watch this a second time when you're a little more sober.

but also a reminder that we are hosting our thirty percent off storewide sale which expires tonight. so coupon code lucky, 34 chatroom memberships and those of you who are interested in our courses. all of that is available now. All right.

So the weekly stats. Well my January first starting balance as you guys all know was 583 dollars and 15 cents I did break a hundred thousand dollars last week I got up to a hundred and one thousand dollars on day 44 which was last Wednesday March eighth. but I then started my kind of slump last Friday and I went red on Friday I lost about thirty five hundred dollars and so I opened on Monday morning with ninety eight thousand and three dollars. My total weekly gains this week are actually a loss of seventy two hundred and so I'm ending the week at 90 thousand Seven Hundred Thirty-seven dollars.

Obviously this is a little disappointing. You know one of the challenges for me is you know this whole challenge has been so public I had someone a troll if you will ask if my challenge was to take five hundred and eighty three dollars and turn it into a hundred grand and then take a hundred grand and turn it back into $583 at this point I'm not a hundred percent sure I Don't think that's the goal, but you know the problem is there are definitely people that you know we're kind of hating on me for the last four days because you know I had four consecutive losing days I mean it's embarrassing. It is embarrassing, you know. On the second day I was like alright, whatever I've had to read days this year back to back before.

not a big deal. On the third day I was like okay, this is getting a little ridiculous and on the fourth day I was like all right I think I'm gonna go like out into the woods and just sit by myself for a while like this is just really. this is really frustrating so you know that that's the challenge Now obviously on the days where I had big green days and you know when I hit my hundred thousand dollar goal, you know that's I Guess the fun part of having this whole challenge be so transparent. You know that you guys were able to see every single day that led up to you know that big that big moment so you know.

but then it's It's just like trading. You know you have to take the good with the bad. and so part of being really public about this whole thing is that you know there will be people that give me a hard time when I have you know good days? They think I'm making it look easy or it's not fair but a little blah. There's also people that are gonna have a you know hard time when I have a bad day they'll say you know I'm stupid I made stupid mistakes and stuff like that.

So I definitely got a good amount of that this week and you know I mean I was feeling I was feeling frustrated and I think that knowing that there's going to be a number of people watching you know my every trade adds more pressure because you know it's like performance. You know you want to do your very best and so it's always disappointing when you have a bit of a you know, a public kind of setback. and that's I suppose what the last four days were. So in any case, I and I'll talk about this more in a moment when I really talk about what I did to turn it around.

So just in terms of weekly stats, accuracy this week was 60% But here's the problem right: there's two coins, There's two sides to the coin. with accuracy, you've got your accuracy, and then you have your profit loss ratio. My profit loss ratio. My average winners were only five cents and my average losers were ten cents.

So if we look at this graph right here and for those of you watching on Facebook live, I'll show you. So when you have a one to two profit loss ratio, you need to be 66 percent accurate to break even now. Fortunately, I was able to be well I now lost I guess I Lost money here, but even in the last two days was sixty percent accuracy I made money I made money today fifteen hundred and I made two thousand yesterday. So you can make money with, you know, lower accuracy if it just so happens that the one trade you got aggressive on happened to be your winner.

But you know, obviously this week with a negative profit loss ratio and with only sixty percent accuracy, I was below the break-even point. So I came in down $7,200 And you know, last week I made 17,000 So I'm still green I'm up 15,000 on the month right now. fourteen thousand Nine hundred. So it's still a decent month, but last month they made sixty grand and that's just not going to happen here in March you know March is I'm my goal for March now is just to get myself back up to a hundred thousand so you know that'll be somewhere around 23,000 or I guess 25,000 since I'm about ten thousand dollars off that level.

So that may take me the next two weeks at five thousand dollars a week and and that's fine. You know if I get a really good trade in one day I could have a big winner, but I just have to. kind of take what the markets willing to give me. and you know as of recently, certainly this week it's meant I've had to be a lot more conservative.

all right. So that's the big sure of the week, you know? Thank goodness I broke $100,000 Before this the slump I mean I just broke over it and then the next day I made I think $300 and the day after that I lost 3,000 So you know at least I got over that level. I hit my goal and at this point you know I'm not really. there's not really a goal in sight.

Some people have asked if that's why maybe I haven't been doing as well because I haven't been focused on the goal. but I think it's really just I've been the market. So let's look at some of the trades from the week. Well, best trade of the week is actually tops.

This was a trade that I took yesterday and you know it was really just a very clean pattern and you can see the move from a dollar 20 all the way up to 240. You have your first pullback here. you have your second pullback here and you know yesterday I finished up $2,000 and this was a really great kind of Redemption trade. It was easy, smooth, very clean.

Now tied for four. Best trade of the week is my trade on PU LM that I took today and so I'm actually going to put up my my video of this trade. So this trade on PU LM was super simple. Now those of you watching on Facebook you can see the one-minute chart right here where we had one, two, three, four, five, six, seven consecutive green candles and then we had one, two, three candles, a pullback and so I said guys I'm watching this for the first candle to make a new high and that's my entry.

This is a 1-minute pullback. Now the other thing that was that this setup had going for it was that it was at the whole dollar of $3 so we knew we were going to get the first one minute candle to make a new high. Plus we were going to get the break over the whole dollar and so as we watch this here, I'll put this back down so you guys can see and again you'll be able to see this. probably better on YouTube for those of you watching on Facebook But anyways I'll just play this here.

So I've got my order ready here and I'm gonna believe I use a hockey so I'm long long they're at 98 I mean this is a very quick trade I jumped in at 98. it pops up to 312 and you could see here the first one minute candle to make a new high. It was just it was such an easy trade right in that one trade already. I'm up $777 still holding 938 shares.

at this point we had 1.3 million shares of volume. so you can see if you look for these types of setups you know the first candle to make a new high. It's just it's so predictable that that's where you're going to get the breakout. So that was a quick move.

7500 shares from 3 dollars up to 312 and I'll finish this trade with right around $900 So nice easy trade off the hide, a scanner. hey, you know if I could do that three three, four times a day I'd be you know, a really happy camper. It's just, unfortunately this week we haven't seen as much of that really clean follow through. All right.

So I'll stop this video for now and I'll switch over and we'll look at the worst trade of the week. and I should probably edit this video because the the place I put the the intro is kind of like the worst, the worst spot possible. So anyways, I'll fix that. but so jumping back in here.

So best trades of the week tops number one and then number two we had PU LM today the worst trade of the week I mean I probably have five trades that are all tied for the worst trade of the week. I chose SN GX which actually I took on Friday but this was the beginning of the red streak or the cold, the cold streak. So on this trade this was really interesting because I got into this setup thinking there was a really big bitter thinking that this stock had really good support. I think there was a 20,000 share bid right at 280 I jump in, it pops up to like 285 and I'm in with 10,000 shares pops up to 285 and suddenly that bid is gone and now that same share size is up on the ask as a seller and the stock just I mean it just came right back down.

You know anyone that was in it just bailed out because that seller really held it back. So the issue here and the issue several times this week was that I was jumping into trades without waiting for a pullback. Now I think that in the last, maybe especially in February I got kind of spoiled because it seemed like anything you bought went the right way. so even if you didn't have the best entry even if you bought it extended, it continued higher.

But you know here we are in March and now it's sort of testing you know our habits and making sure that we didn't make her create some bad habits and that's I Think what I did in March or February I created some bad habits which was just jumping in as stocks were squeezing. So you know this month what's happened on several traits is that I jump in into the squeeze like right at basically when I see a big bid thinking it's gonna be a short squeeze or write out a half dollar or a whole dollar and what ends up happening is it pops up a little bit and then it rolls over hard and this was a really big rejection I lost thirty five hundred bucks on it. Ten thousand shares, Thirty cents. You know that was it I was faked out What I should have done to avoid this loss was wait for a pullback entry I mean it's really that simple because once this got a pullback, you would have said well, it's not clean, it's not a good setup and I'm just gonna, you know I'm just gonna leave it all right.

So this happened on multiple trades this week. This happened on S Ng X it happened on aka o it happened on Gosh. I mean it just. it just happened again and again and again.

So you know and that really is what created this sort of downward spiral for me. I just kept getting into trades and kept getting stopped out. Now let's I kind of transition here now into the topic of the day. So recovering from my worst week of the year.

Now for me, you know I've had red days I obviously had a day this year where I lost $15,000 in one day and I bounced right back from it. but this is the first time I think probably in more than a year that have actually had a four day losing streak where I lost money on four days back-to-back So $15,000 you know for me, isn't necessarily a lot of money to lose. What's more frustrating as having four red days in a row because you know the accuracy is just horrible. So the question is, what was I doing wrong and how was I able to get out of that rut to recover? You know about thirty five hundred dollars of that loss in the last two days and to finish the week strong on what are typically my two worst days of the week.

In all of February Thursdays and Fridays were my worst days of the week. And here you know, this week I was able to really redeem myself, be discipline and recover some profit. So for me, you know there's a couple things you know that were really on my mind and this is what I do anytime I have a loss you know I've had spent a long time but I've had months of course like probably all traders have where I lost money and at the end of that month I remember one of the last times this happened was a few years ago I was you know, kind of looking at my trades at the end of that month and I was like where did I go wrong and so I did something very simple and this is what I explained to to all of you guys the other day and I'll explain it again. Now what I did is I went through my statistics and I looked at my metrics I broke down my trades and I asked myself the question what am I doing right and what am I doing wrong So I start I started sorting my trades by winners and by losers and when because of the fact that I'm really meticulous about my record-keeping and I can go back and see.

Oh, this was a momentum trade, This is a one-minute setup. This was a 5-minute setup. You know this was a bull flag. whatever it is I can now sort that data and I can data mine my own trade history and that's what I did I go in and I dad in mind my history and I start to draw conclusions.

you know? Okay, I'll guess what? all of my losers my biggest losses were chasing a one-minute setup before waiting on a pullback right? So if I know that about myself I need to make an adjustment. Now after the first two days, I didn't really think a lot about it I just was like, well, markets, not on my side. but I'm not really doing anything differently than I the previous week where I made 17,000 So I'm not gonna change anything. My strategy the third day I was kind of like alright.

well you know this is interesting. kind of still seeing really bad follow-through Maybe I need to reduce my share size and just kind of like ease back a little bit and then after the fourth day I was like okay I need to really sit down and look at my metrics and what I realized I was doing wrong was well I mean if you say it's wrong I don't know I mean it certainly worked well in February But what I was doing that was leading to the losses was chasing one-minute setups so instead of waiting for the pullback I was just buying Now I can show you a bunch of examples I'll show you I could show you I'll bring one up in one second of stocks that last month just completely squeezed and never gave you or gave us a one-minute pullback and you know because of that I sort of got into this habit of I'm just going to jump in because I don't want to miss the opportunity. Well, that's the fear of missing out. you know, kind of kicking in.

It's it's you. Know that fear that you're going to miss the trade, encouraging you to just go ahead and jump in at a price that's really way too high. Now you can get away with that and that's the tough thing about the market is that sometimes you'll get away with you know, being sloppy or taking too much risk and that's what encourages you to think. Well, you know, sometimes it works.

maybe this time it'll work, but when you're in a market that's a little bit more tricky, which is definitely what we saw this week. Those bad habits are really going to show their face and so what I had to do is is make the decision that I wasn't going to take trades unless I had a clean pullback and if that meant that I was gonna miss a set up, it would be better to miss a set up than to miss manage risk. especially given you know my accuracy right now and so I implemented that on Thursday I said Okay guys, here's the deal today: I'm gonna focus on only buying pull backs and I'm gonna reduce my share size a little bit. You know, I'm gonna scale back, but I'm only go to a pullback.

so I will try to pull back on the one minute chart and I'll trade it on the 5 minute chart I Don't care what time frame it's on, but needs to be a pullback entry just the way we saw on PU LM Alright, that was a perfect pullback entry. We pulled back and that was, you know, a great setup, a very easy way to manage risk. So by doing that, I was able to really get myself out of the rut by focusing on by understanding number one, what was causing the losses and then number two. You know what I was doing that to generate the few wins that I had I Was able to adjust my strategy a little bit so the adjustment was: I'm only going to trade pullback setups I'm not going to chase now I'll just pull up this chart here on Nov n This is one that we had last month.

so I'm gonna have to scroll back a little ways and this is a stock that went from $4 to $8 without pulling back. There's no pull back on this. By the time you got the pullback, you know the bulk of the move was over from 4 to 8. You know, back down to 6 and then kind of back up to 750.

But this is one of those times where you totally got away with chasing. But would that said, you know there are still there's still ways to get into some of these strong stocks. you know, at least somewhat safe entry points. So on a stock like this again, I'm gonna just scroll back here a little ways.

this was on mark sorry February 15th. So all right. So here's February 15th. All right.

So here. So here we go on this one. There was no pullback on the 5-minute chart and that's the reason that I'm saying I'll if there, even if we only have a pullback on the one-minute That's fine I'll take a one-minute pullback I'm not going to restrict myself to only trading on the 5-minute time frame because if I do that, I'll miss trades like this. But I would only get in in a place like this right here.

See, this is a one-minute pullback at 6:17 that's the place to get in. so I wouldn't get in like as it's squeezing up here. you know? I'm sure someone got in right here at the very top of this squeeze at 5:59 and then as it pulls back here down to 5:35 you know on 10,000 shares you're suddenly down 2,400 bucks. It happens very quickly, so you know this is why you wait for the pullback.

And I suppose this would have been an okay pull back to this would have been okay and this would have been okay. one minute pullback. So I will trade one minute and five minute pull backs. but I'm not going to just, you know, buy into the extension.

Even though in a very strong market that works, in a market that's a little bit choppier, it doesn't work well at all. Now you have to be able to kind of taper your risk and adapt your strategy to the environment that you're in. And you know this is certainly true with trading, but it's true with a lot of other things as well. And you know, one of the things we talk about from time to time is my you know, mild obsession with the television show The Deadliest Catch And there are days on The Deadliest Catch where you know the seas are really choppy and they have to kind of adjust their goals based on the fact that weather conditions are bad, the risk is higher, and then there are other days where you know they've got smooth seas and they can.

You know work, you know, a 24-hour you know, stretch and really, you know, get a lot. Make a lot of progress on their goals, whatever those might be, and that's really the same with trading. There are times in the markets on our side and we could put the pedal to the metal and be aggressive, and there are other times where we have to sort of step back, ease off the throttle and wait for things to improve. So this week has kind of been that for me I didn't ease off the throttle as quick as I could have in part because again, this technique has been working really well for me so far.

This year I've had a couple of red days and back-to-back I've even had a big big red day and I've been able to bounce back quickly just basically doing the same thing and then the next time I get into it. it works. but having four red days in a row forced me to step back a little bit slow down and as we go into next week my goal is just to kind of continue to steadily, you know, build back up to break over $100,000 So one of the things that you would notice on my equity curve if you looked at it is that you know I kind of went from $500 all way up to you know, a hundred thousand and I had a couple pull backs along the way. but now here I pulled back from 100 down to a low of I think eighty seven thousand and now I'm making my way off that level.

Hopefully going to break back through high of day of 101 and make my way towards 120, 130, 140, 150. but you know I have to be able to adapt to the market conditions I can't just throw 10 15,000 shares that everything that moves when the market is choppy and it seems like we've kind of been in between parabolic stocks for whatever reason. Yesterday the shippers were back in play with with Top T Opre, T.o.p S and GL BS was also pretty active yesterday. You can see on the daily charts so you know that gave us the opportunity to generate some profits.

Yesterday today we had pul em, you know, so we fortunate to have one or two. but I'd really like to get another stock that goes from you know, two dollars to eight or ten dollars and it just gets really explosive because that's what usually starts the next round of momentum, you know, and it kind of. Those types of stocks bring out that fear of missing out the traders get that encourages them to buy them higher and higher and higher. And that's what you know creates these bigger and more dramatic squeezes.

It's really all about you know, collective trading mentality and how the emotions of fear and greed impact traders and impact the decisions they make. So you know. Yes, the last week or so has been a little bit of a setback for me and I I was on the wrong side of you know, one too many trades, but I've made some adjustments I'm tapering my risk back a little bit until I start to see cleaner action and you know I think that's the way to do it. Now the interesting thing is that really, in the last month, I've been trading for figure days I mean my winners are between two thousand and eight thousand dollar days.

My losing days are, you know, between a thousand and three? four thousand, maybe five thousand at the most? So I've been trading with, you know, big size and that means either big green days or big red days the last two days, you know. today I'm at fifteen hundred bucks and to me, this honestly feels like a slow day. I've kind of gotten spoiled, you know, I've gotten into the habit that a green day should be five or six thousand dollars, which is obviously a ridiculous amount of money. but the problem is that it's kind of changed the way I look at some of these trades because I look at them and I think well, there's really what's the point in taking a trade to only make four or five hundred bucks like I don't see the point, you know I I'm looking for opportunities to make two thousand, three thousand, or really five or six thousand dollars on trade and if I get two of them in one day, all the twelve thousand dollar day, if I have four of them in one day, I'll have a twenty two thousand dollar a day like I had in February You know that's kind of what I'm looking for.

So you know to have a couple trades today. You know where I made you know? two hundred bucks, you know, two seventy-five on a Rgx 273 on Dff an I mean that's basically I mean it's almost. It's like a break-even trade. It's like nothing.

but at the same time. you know I shouldn't maybe think that way because $1500 a day certainly does add up over the course of weeks and months. I'm not gonna have a $60,000 week our $60,000 a month with $1500 days. but I can still have a you know, easily a twenty to thirty thousand dollar month which just a year ago would have been one of my best months ever.

So you know it's just kind of interesting how you know your perception can change and I don't want to lose touch with the reality that fifteen hundred dollars a day is still very good. It's still respectable, so you know that's kind of where we're at right now. You know the big wins, the big loss is all a result of trading with big size. The big size is the result of increased confidence you know which I've gained over the last I guess over the last year probably and certainly culminating with that $100,000 challenge from $583 up to a hundred grand.

So next week I'm gonna be hosting a webinar where I talk really just specifically about the hundred thousand dollar challenge. But for right now I just really want to talk about this kind of slump that I've been in for the past few days because I think it's really good for you guys to learn how I bounce back from it. You know how I get back on the horse. This is something every trader is going to go through at one point or another.

You know beginner traders certainly have more read days and and slumps than more experienced traders. so you know this is part of doing this challenge in a very public way that you guys see the winds and we celebrate them. We talk about what works, but you also see the losses and you understand what I did wrong. and I think the things that I did wrong this week number one was being a little too aggressive, maybe forcing trades taking position sizes that were a little too big and not stopping out quickly enough.

The problem for me, of course is that when I get into something with 10,000 or 20,000 shares, you know it's not always easy to just get right out. You know you kind of. You have to peace in and peace out. And so by the time you're getting out, even if you want to get out breakeven, you know you're probably gonna lose ten cents.

That's gonna be a two thousand dollar loss, so you really don't want to cut that loss until you know it's it's not gonna work. You definitely don't want to stop out. in a minute later, it goes right back up. So I think Interestingly, some of the trades I took this week would have been winners with 2,000 or 3,000 shares, but we're not winners with 10,000 or 15,000 So you know right now is the time to scale back until we see maybe that next really strong woman to name.

And and just you know, play it smart. Alright, so I'm glad that I'm finishing the week on you know, a green day the last two days it does feel like a little bit of redemption even though I'm only you know I don't know ten percent of the way out of that the rut or whatever it is, but it's nice to finish green and it kind of gets me you know, recharged and refocused for going into next week. All right. So let's say I'll take this off, let me get back in here.

All right. Okay guys, so that's it for today. I Hope you've enjoyed this episode five of behind the trades and again, if you guys have any questions or comments, I'll post this on YouTube and the podcasts will go on the iTunes podcast store. Whatever it is, it's free but whatever it's called and you guys can ask questions and stuff there.

So anyways, that's it for today and I will see you all first thing tomorrow morning or Monday morning. All right, Thanks guys! Enjoy the weekend! Let's be honest, if you made it this far, you must have really enjoyed that video. So what's stopping you? subscribe right here and get email alerts any time I upload new content. until then.

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