What's up guys, this is the last trading day of october. Well, this month flew by really quickly um. Hopefully you guys had a good month. I hear from a lot of traders i traded with every day that october is like their record-breaking month, um.

So congratulations! If you took advantage of all the volatility we had um and hopefully in november, picks up even more for me, i had a pretty nice month in october as well. Uh, it's gon na definitely be enough to pay for central heating by the way like. Finally, i can turn on the heating, isn't that what life is all about, making enough money from trading to pay for heating and pay for ramens? Who cares about all the lamborghinis or the fancy jets right? But no but seriously food is the only thing i'm willing to spend a lot of money on just because i enjoy it. So let's talk about the trade on thursday srrk and triple u so srk.

I took a loss on the short side. You know, i know a lot of people were trying to short this. So was i because the stock is very extended, uh we're holding above previously closed, so we're read on the day and also the offering price was down at you know, 39 dollars. So that's why i was short bias on it.

I took the loss on it, but it's the best loss ever and a lot of times. These are some of the best trades uh and let me go through that really quick. I did take a loss on starter size for on the long side, first, seeing that they were not going to support a bit and we just dropped to red. So that's why i cut it immediately and that's why i started scaling short shortly.

Some small re-shorted, covering some just in case we go red to green, but that failed. So i added back into the short position. The idea is that we're gon na test this 42 dollars level, like you know, 42 right here. If you, you know, draw a support.

Lying around the idea is that this is the key level to hold you know: ones were holding red on the day, basically below previously closed and around 42 dollars mark. This is the key level and i'm thinking the plan is that they're gon na fail this level and we're gon na flush down to forty dollars low the day and potentially even lower to 39 38 or below. So that's the plan and that's why you know i was scaling according um to my risk and i was prepared for it, but the fact that they held it on for so long and you can see even though they keep on making lower lows the the the Bottom, the weakness keep on getting bought back up. So you know when that happens.

You know i want to be careful right, it's not really going. According to my plan, i wanted to see immediate follow-through to the downside um and when a lot of times when these stocks, the setups and the plan you had the stock is not exactly working. According to your plan, i'm usually very good at spotting that okay, i might be wrong and i'd rather take the loss, and so i took the loss, i'm not saying it's fun to take losses. It's definitely not fun whether it's 500 1000 2000, a loss is a loss, but you know looking in hindsight, of course, i'm so glad i took this loss because, after i covered everything the stock just squeezed from 42, all the way to 46 dollars.

If i didn't follow my plan, if i didn't stop out, you know take the loss, i would have been down huge um. So this is why a lot of times the stocks where you stop out for small loss according to your plan, even though it's a loss, it's some of the best trades. In my opinion, right, if you get into this habit of you, know having a plan and just trading according to that plan and when you're wrong early on or later on, cut it for a loser. According to a plan, your losses would be very manageable.

So for me you know, even if i take a 2 000 to 3 000 loss on this. It's fine, like you, know it's part of the plan, but if i didn't stop out, this would not have been fun right. So you know this is. I think this is also the reason why my risk management and my losses are very small and very controlled.

It's because i much rather take the loss early on. You know i much rather take it, take a loss and look for potential re-entries later. If i was going to be right later, instead of holding for the oh, it has to do this that has to sell off the stocks. Don't have to do anything that you and i want right.

This is the market we're not bigger than the market. We cannot. You know just fight the trend fight the stock um, especially when this stock, the last two days, has been one that you know, spikes up drops and it spikes right back up. So you know learned from the last few days of price action and i want to be prepared.

If i lose, then you know it's a loss that i'm willing to take um, but i'm actually very proud about this trade. Even though you know it's a loss right for a lot of new traders, they wouldn't understand why taking losses are sometimes good for overall trading before the experience traders. Sometimes you have to understand that the risk of being squeezed out it's just not worth a reward, even if it tanks later to 40 38 right. So that's just something i want to share with you guys, um to kind of understand how i think, when trading these setups second trade from yesterday, the other trade from yesterday.

This is a very straightforward trade, because i'm very patient um on the trade. You know you can see, i didn't trade, it didn't enter at all at the open. You know i pretty much left it alone until 10 o'clock. That's because you know i was first of all focused on you, know, srk and took a loss on that.

But you know this is a low float stock that gapped up to four and all the way to fives um and a lot of times with these low float stocks that seems very crowded already pre-market. I know a lot of people were getting squeezed on the short side. A lot of people were long um, a lot of chat room was in it. So a lot so most times when a stock is crowded.

I i prefer to leave it until you know it's clear that it's either gon na squeeze or drop. So for me uu. You know i left it alone. I saw that spike to 5 and it failed immediately down to 420s, but i saw that it kept on holding and then squeezed again and dropped right back down.

So that tells me a few things right. There's some no small consolidation, small bids around 420s and a lot of offers a lot of people selling it around uh, 480s and five dollars. So it's essentially in a channel right and if you think about it, these kind of stocks low flow stock, easy to manipulate uh, i'm looking at a stock. You know, looking at a daily chart, um a lot of rejection around the highs.

So, basically, that's why i scaled in short on the spikes to you, know five dollars, thinking that okay, we're going scaling short around this area. Unless they really consolidate around the 480s, then you know if they consolidate 480s and five dollars, then it has a chance of going back high, higher um, but this week right here, you can see after i entered. I was watching the stock closely um very nice spike yeah from four forties, all the way to fives, but the moment it hit five dollars. If you were watching the stock, you can see that they, you know, spiked you to fives, and it's like somebody just like slapped that thing in the face it just got slapped and then it just dropped all the way from fives down to 440s.

So that's why? I was thinking: okay, okay. This stock is probably gon na tank they're gon na pull the rug right um. So that's what gave me the confidence and the conviction to hold it. I could still be wrong right if it goes and, like i said earlier, if it starts holding fives, then i'm gon na cut it for a loss totally fine, but the fact that it kept on holding and then the heights just got lower now slowly slowly.

They pulled the bids when they pulled it. This thing dropped from 450s all the way down to fours. I didn't cover, because you know it's very heavy at that point um and we actually got all the way down to 350s. I'm actually really proud about my own patience on this one, because essentially i was up over a buck a share.

So i'm very happy about this. Am i sure that sounds small on the bounces and you know held it to as low as three tens and you know cover the rest at the end of the day um. But this is one of those situations. Where does it matter if you're long or short bias, you can learn from this price action right if you're long, then maybe you don't want to chase the tops? You don't want to chase these kind of spikes um.

You know this is kind of stock that you don't want to buy the breakouts um and most stocks most low-flow stocks. You don't want to buy breakouts um, so you know just something to take away something to think about, but very nice trade on triple you. So some trades today, two losses and only one win. So let's go over the losses.

First blrx, so this one i lost two times over here, it's for small size and down here. The idea is that i want to show this thinking that we're gon na not fail kind of like how we just talked about for triple. You didn't work out, so i covered some here and i covered all of it here. I did pay myself some uh but of course not enough right, but i'm very happy about cutting the loss, because the stock, just later you know, went you know even higher all the way to three dollars.

So this is another situation just like srk, when the trade is not going according to your plan, it's better to take the loss early on for small loss, predetermined loss then to keep on holding it because that loss will be. You know two three times bigger: it's actually very satisfying to see a stock going to three dollars. This is the kind of mindset you have to develop for yourself slowly right, sometimes it's just not worth you know, holding on for the oh, maybe it'll drop well. What? If it doesn't right what, if it keeps on going to four or five dollars, it's always, you have to prioritize the risk in trading in trading.

The best traders are the ones who think about the risk. First, before the reward right and whereas a lot of new traders, they only see the reward, but they don't take into consideration all the risk that could happen. So this is a loss, but i'm really happy about the cut um. I did go back in small for a small scalp um, but overall the this sticker is a loser.

For me. Second, last on the day is neo um. This one had a small um green trade on the scalp on the long side, but after that i wanted to scale in short thinking that we're going to follow the market market is very weak. Today, all the tech is selling off, tesla is selling off as well and, of course, i'm short the only stock - that's not really following the market um.

So no, but i did pay myself along the way i took a loss earlier on the short side. You can see got squeezed out um, but once we failed at 31 dollars again, we failed the highs. That's why i went in shorts thinking that we're gon na you know at least test the low of the day, because i paid myself along the way. I'm never like you know, yeah, even though i keep on adding, but i'm really careful, knowing that neo is a very resilient stock um.

So now i'm very happy about the cover here: um 30 dollars: 20 cents. We didn't go ever to test the low of the day at 30 or 30 10 ever so it was. It was very, very strong, um relative to the market. So you know once this didn't work.

You know i'm paying myself along the way trimming my position when it seems like it's going to break out, but i keep on trying to add back to a core short position um and around this point, i'm just like okay, they're, probably going to keep on grinding It back up too so took it off for a small loss and the final piece stopped out into a good stop. I think i think it's just gon na chop around in a range. So, even though it didn't like work out exactly to my plan, you know i took it off for a loss still paid myself along the way, um, but still a pretty decent trade in my book last trade eq. This is the only stock i made money on today, but very good range compared to blrx and also neil um.

This one is easy to borrow so that means you know a lot of brokers have this for free um when easy to borrow stocks. You want to be careful because that means when it drops a lot of times you just squeeze back up right, got to be careful about that um. So i showed you some small seven dollars a tanked i didn't cover. I didn't cover until here thinking that okay they're, probably gon na, try to squeeze it again right.

If you look at this price action, higher lows, some volume coming in so i covered, i reshorted the spikes up here: seven dollars 740 730.. So this is what i mean by easy to borrow stocks. They like to spike a few more times until eventually it'll give up. So you can take that into your advantage, whether you are long or short um.

So that's why i shorted around sevens and then seven forties, um and flushed down to you, know six, eighty six nineties and covered everything. Should i let it write out a lot longer, but liquidity was drying out, um and easy to borrow stocks right. You know i want to be careful in case they try to. You know, squeeze it again but later then they just you know, faded off to six dollars so time for our q and a's eric is asking when you say the stock is heavy.

Do you mean lots of offers at the top from people taking profit from the big opening move? When i say it's heavy, it just means that there's a lot of selling pressure yeah, it could mean there's a lot of offers at the top, but i'm just talking about at the moment right. The stock is selling off everyone who's loaned. The stock is hitting a bid to get out um, and you know it's not necessarily about reading the level two of the tape, though yeah that could definitely help, but i'm just talking about the price action of the candles. Every single you know bounce it's got pushed down right if you just observe the candle, observe the charts um it just you know, couldn't bounce and each bounce got slapped right down kind of like how we talked about um.

Triple? U earlier right and also, if you you know, if we're talking about level two and the tape, you see a lot of red prints, that's printing on the bed side, so that means everyone's selling on the bits and trying to get out of the stock. That's when the stock is heavy and you don't want to be long heavy stock because it's you probably gon na tank lower mark is asking i'm new to buying stocks. My question is day trading good for beginner and how do you trade on weibo? Thank you. I mean everyone starts out day trading as a beginner right.

I once started. I was a beginner, you have to start somewhere, that's the same with anything else in life, you're always going to be a big beginner. You know when you start and when you're brand new right and that's why you know you need to focus on learning if you're a beginner, i think you know no one starts out day trading as an expert and how do you trade on weeble? I don't think you should trade day trade on weibo or robin hood. I understand a lot of you are doing that.

But if you you know, maybe it's! Okay, if it's like you know, 50 shares, but i think or 100 shares, but anything more than that. I think it's worth you know using a real platform just because the fills are going to be slow on these um commission free brokers. You don't want to be saving pennies and losing thousands right. So for me i paid you know a couple hundred commissions, sometimes even more each day, but it's very worth it.

But you know i do understand a lot of people start out using weibo and robin hood. I do use them for sometimes for swing trading, small position and usually the tech stocks and the blue chip names. So, that's, i think, that's fine for swing trading for but for day trading, especially you know, in a volatile market, i don't recommend using those free commission brokers, but i do use weibull speaking of which they are having a promotion. If you sign up with weibo in the united states, then you can get three free stocks, that's pretty decent! I know someone who got a google stock for free, so you pretty much got like a thousand six hundred dollars for free right there.

So if you wan na sign up and take advantage of the promotion, you can use my link in the description below it's available for the americans or, if you have us status and who doesn't like free stuff and one last question. A lot of people are very concerned about my plant and i have it right here just to prove you guys that it's safe and healthy, and i should probably water it this weekend. Maybe if i remember thank you guys for watching. As always, if you enjoyed the video, please remember to drop a like and subscribe.

Thank you guys for watching and i'll see you guys next time. Hey guys thanks for watching. I hope you enjoy the video and the bad jokes. If you want to see more day, trading content make sure to subscribe and follow me on twitter and instagram for more.

If you'd like to trade with me daily and get my free weekend, watch list and trading journal make sure to check out the links below for more resources. Stay, green, stay, positive and i'll. See you guys next time.