What's up, everyone? All right? So in today's episode, I'm going to talk about Trader Rehab I am in day two of Trader Rehab. It's not going so well. Uh, those of you who tune in every day, you know that last week was a red week for me and now I'm a day trader and red days happen and red weeks happen and even red months happen so they're not always. You can't always read a whole lot into one or two red days because that's just part of the deal with being a Trader they happen.

There's just no getting around it. So the only thing about last week was having five consecutive red days in a row? That is. Uh, it's unprecedented I have once before done six consecutive red days. Uh, it was the same time of year it was three years ago.

But this is nothing to brag about. I'm not impressed. So having five red days last week, uh, for me, got me to a point where I was like, okay, I don't want to break my previous record by having six or seven red days in a row. Let's stop the bleeding right now.

I'm gonna check myself into a short Trader Rehab instant and this isn't my first time here. Uh, I'm a I'm a repeat customer. So the thing with Trader Rehab is and I have a class on this that I taught with two members of our trading psychology team at Warrior Trading. So it's a it's a five chapter class that covers the Trader Rehab program that I built based on my own experiences of putting myself At trade.

Arena So I can summarize a little bit of that class here in this episode. But the long and short of it is that, uh, if you are going through a period of bleeding, losing money first and foremost, you need to stop the bleeding. You need to stop what you're doing because it's not working and that can be very frustrating. You don't always understand why it's not working, but you you have to obviously stop if something's not working.

So for me, when I put myself into Trader Rehab, basically what I do is I put guard rails on my trading I reduce my share size I reduce the frequency of Trades the number of Trades I'm taking and that's the amount of time that I'm trading in the market each day. All of this is designed to get me to focus on trading a quality setups, the game, getting green, and getting out, and trying to build a track record of you know, four, five, six, seven consecutive green days to just kind of regain my momentum and regain my confidence. So on Monday Yesterday or on Tuesday Uh, yesterday I sat down. we had a long weekend so for those watching this, a month from now or a year from now, uh, Market was closed on Monday So we had a three-day weekend.

so I come back Tuesday morning and I know that I actually tend to on a Tuesday after a long weekend I could trade a little bit I could be like a little trigger happy, like ready to like hit the ground running and that's not always a good thing because the Market's the day after a long weekend holiday can be a little slow. So yesterday I uh took my first trade and I made a hundred bucks. Whatever. Took my second trade I lost 8.50 so I'm down 750.

I took my third trade and I lost another 850 and I was like are you kidding me right now I'm on my six consecutive red day I'm down 1500. this is ridiculous. So um, I wasn't pleased and another stock started to pop up and I jumped in it pretty aggressively and I ended up making about 20. I don't know 2 000 2200 on something like that finished stay up 700.

but that wasn't a great trade in the sense that uh I took more risk than I should have for trade a rehab and if I had lost on it I probably would have lost at least 1500 on it and then just like that, I would have been down 3 000 on the day my Max loss is 5 000 I would have been right up at you know, six red day in a row Max loss. So today I was like all right talking to myself. give myself a pep talk I'm like okay yesterday if they want to trade a rehab didn't go so well, you gotta bring it. bring it back down a little bit.

uh so I said and I actually wasn't even sure I was gonna I had something else that I was I thought I was gonna have to do today and then I ended up having to do it so I didn't I wasn't even sure I was gonna be all trade today. but anyways I was able to trade and I was like let's just take it very very slow So this morning we had a stock that came out with news uh 130 uh increase in net profits over the last three months and so I was like okay, there we go I jumped in that two trades I made 400 and I was like that's it I need two green days right now. Listen I am down Still, you know 20 000 from last week. Five red days in a row.

four of them were at my Max loss of five thousand and then Friday I was down like 400. so whatever. Uh, I'm I'm still cool quite a ways from recouping losses in a meaningful way. but uh, the the small win is a mental Victory especially you know you need that you need to regain confidence and I did hesitate a little bit yesterday and I hesitated a little bit today because after you know so many red days with poor accuracy, I just was like I don't know and you know hesitating did cost me because I missed a couple of opportunities so you know this is part of the opportunity cost.

When you get into a little bit of a slump is that your confidence is shaken and then you don't step up to the play or you step up a little bit more conservatively and it can kind of have this Rippling effect over the course of, um, you know the days or even weeks or even months that you're trying to recoup those losses. So today day two of Trader Rehab today was better. Today today was definitely better. Accept that.

Uh, the stock. one of the stocks that was on my watch list. it was. It was a bit of wild card stock and wild card stocks are what got me, uh, into the sort of slump.

That's what started the slump last week. So I was like don't do it but this wild card stock ends up going up like 100 and it went from about 44 a share up to 50, up to 60 to 70 to 80 to 90 to 100 130 dollars a share and I didn't trade it so I didn't trade it because when I first looked at it I saw the spreads I saw the volume and I said nope I cannot afford the loss and if I can't afford the loss I can't participate in this trade because it doesn't matter how much it could go up I can't handle the drawdown. so I said no I'm not going to trade it. Uh so and the first.

the first time it popped up, it went up to about 48 and then draw or 46 and then dropped down to 40 which was a six point flush and I was like see, that's why that's why you're not going to trade that because that's too risky. Then it comes back up through 40 and holds it 45 and then halts at 48 and I was like it resumes and immediately rips to 54 or whatever it was halts up again I was like oh man, okay, now I'm getting a little Fomo and this is part of the process that often comes with having uh, you know being in trade of rehab is dealing with some Fomo because you might miss some opportunities when you're putting on the guard rails. when you're restricting yourself, you know there's going to be a big quality setup. maybe like that one was that does work, but you miss it.

Shoot and then are you going to be the one who capitulates and gives into fomo and buys the top? and then all of a sudden, just like that, I could be down, you know, four or five thousand or more. and now I'm on another red day and my one tiny green day yesterday is like all for nothing because I'm back to the lows I'm back to being emotionally activated et cetera et cetera. So Trader Rehab to me is about protecting your emotional state and trying to as quickly as possible get yourself back into a state where you're going to have confidence and conviction and uh, and and you have to be very careful because you know you can very quickly rationalize. No, I should take that trade.

Look, we don't every day get a stock that goes up that much I should just forget tree to rehab and just trade it. But then if you lose on it, then I go Trader rehab tomorrow. But seriously this time. But then what if you have to make another exception, you can constantly make these exceptions.

and I don't think that that's um, it's it's not. It's not really the right move to do that. So my thought, uh with Trader Rehab is that you have to be very disciplined for that window of time, that period of time. And for me, what I usually do is I check myself into Trader Rehab so to speak and I keep myself in a pretty tight Trader rehab program with pretty tight guard rails until I have recouped about half of my loss.

Um, the thing is, you know, today as of today, I've recouped 1100 or so of of the 20 000. So I took 20 steps backwards in one step up, right? So if tomorrow I lose five grand, I'm back to being down 24 000 or whatever it is. and I'm just stair stepping down. And if I go to new lows, emotions are going to go right back to the high of where they were two days ago or even higher because I'm going to be so frustrated that I get had another setback.

So what I have to do is work with really small kind of incremental progress until usually I've recouped about half of the loss and then once I've recouped half the loss. That's when I start to feel like the winds at my back and things are moving and you know what? Hey, sometimes I'll recoup half the loss in one day. Sometimes that happens not because I was taking a lot of risk or anything else, but because the market was just really high and and you know that was the condition of of the market. That's awesome when that happens, but you can't count on that, so it's better to plan that it may take you know, five, eight, ten days.

Whatever it might be, depending on the size of your drawdown to get to that point where you can start to, you know, pull the guard rails back a little bit. This is the approach that's worked well for me and you know I I say this as someone who's made over 12 million dollars in gross profit. I've you know this is I've been doing this for a long time and I'm I'm I wouldn't be where I am today if I hadn't found a way to get back on the horse after getting knocked down because I've gotten knocked down off that horse real hard many times. I Had a 275 thousand dollar red day.

That's the biggest red day I've ever had and you know I I had no choice but to recoup I mean I could have said I quit I'm gonna quit trading you know But at that point I had already made millions and so I knew I could make millions again I just needed to put myself in Trader rehab and get through. So for those of you that are interested in the trader rehab program, this is a part of my Warrior Pro curriculum. I Would love for you guys to check it out because I really think this is something that will help you if you're going through a similar struggle. But you know, please comment Down Below on the different things that you might do when you're in a similar situation.

The my view on it is that you have two choices. Well, maybe three. Uh, when you have after a big loss, you can quit. That's one choice you can say.

I'm done I'm not going to trade anymore. You can keep doing what you're doing. You're probably gonna keep loot. I Mean you know, maybe you'll bounce back, but if if you're on like a real red streak and something's not working, you've got to make an adjustment.

Um, and so then the third is um to make to make an adjustment to your strategy to Pivot a little bit and to try to see see this through. Now it's snowing right now and I have my skis in the back of the car and um, this is one of these things that you have to tune your skis a little bit to the conditions of the mountain and you have to be able to tune your strategy to the conditions of the market. And I'm not always as good at this as I'd like to be. Yeah, in hindsight, it's always 50, it's always 20 20.

it's always super clear that oh I should have sized down sooner I should have you know this or that in the moment it can be very hard to tell you know. Did I just hit a little rough patch and it's gonna be back to smooth sailing, uh or some of skiing or whatever. However, you want to think about it or is this the beginning of a bigger shift in the market? Certainly, after a few red days in a row, it becomes more obvious and my trade probably my worst trade was the one that I took on Thursday where I lost 7 500 and just you know went from green to red on the day because that was just that was that was a bad trade I mean that was just me taking too much risk, buying way too high and um, and that that was where I was like okay, we got correct here because I'm getting too emotional I'm getting too frustrated I'm getting stubborn and we start getting stubborn with your trades. The market will show you very quickly um what that can do and it could be really bad.

So I I hope that this is interesting I thought I'd throw it out there because my first two days of Trader rehab you know weren't really the best. uh but I gotta stick with it I do feel some Fomo for sure that I missed that move on uh, the stock today that went up uh, you know, 150 percent. but on the other hand I feel good that I was able to maintain the discipline to not jump in something that was up that much. knowing that the spreads if I had gone in and it went the wrong way would have not been a small loss.

it would have been a big loss. and if you can't handle the risk, ask about risk first then you shouldn't be in the trade. So you know this is a time for me, at least to focus on chipping away at base hits, trading what's well within my strategy both in price and float and everything else. And once I regain a little bit more confidence and maybe by that time the market will pick up a little bit I can start to Branch out to you know be quality setups that have a little bit more risk, but you know the ROI might be there and I can justify it.

but this is something that hopefully you guys are thinking about as well in your trading. I Know a lot of you have been at this for quite a while. Some of you are brand new of course, but many who might be watching this have been at it for a while. You may have had to put yourself into some kind of trade or rehab, so I'm right there with you I know how it feels I know how frustrating it is, but it's this is a quote I mess up every time, but it's better to live with the discomfort of holding yourself to discipline than the pain of the regret that you broke your rules gave into Fomo and everything else I feel discomfort right now I feel frustrated I missed a huge move I feel fomo but I'm not going to give into it and that's that's the important thing I'm going to hold the discipline now tomorrow I need to make sure I can press the reset button and come in fresh and trade the market that I'm in and not be thinking about what happened the previous day and that's always tricky.

All right, So that's where tomorrow morning I Need a calm, cool, collected reset trade the market that's right in front of me and hopefully I'll have a good day. On day three of Trader Rehab and a red day is okay. I mean it's okay as long as it's a small red day and where I didn't break my rules, that's fine. Red days are okay.

in Trader Rehab, it doesn't have to all be green, you just have to have discipline and follow your rules. Okay I hope this has been helpful reminder. As always, my results aren't typical. There's no guarantee you'll find success because trading is risky, losing money happens and I hope you trade a simulator before you put real money on the line and I'll see you for the next episode.