What's up you guys? Well, it's official and checking myself in a rehab today. Traitor rehab And this isn't the first time I've gotten to trade a rehab I've kind of relapsed here, especially in the last six months being super aggressive with the way I've been trading swinging for fences, trying to hit home runs and I spent some time over the weekend really going through my metrics. after a really bad last few weeks I decided look I got sit down I got to go over everything and I made some really interesting discoveries that I didn't expect to find about my trading. That kind of changes the whole way.

I Look at how to approach day trading and so we've these new principles in mind: I'm checking myself into rehab for the rest of the month and the restrictions are on my account and what I'm gonna do for you guys is I'm gonna break down what that means and I'm also gonna break down what I discovered that's really made me want to make a change. Yeah, you can only you can only change if you want to And this time so let's get into what this is all about. Alright, so after a series of some really big red days I had the worst week of my trading career just last month and it really hit me hard and it got me thinking about what I'm doing that works and what I'm doing that doesn't work. Now some of you guys have heard this story, but when I was first getting started trading, my turning-point was actually a huge read day.

It was a turning point because it was a catalyst that forced me to go and pore over all of my trading data and figure out what I was doing that was working and what wasn't working. And so that's exactly what I decided to do after this really bad week and I discovered something really interesting that I didn't expect. and and now I'm talking about losses. A lot of people don't like to talk about losses, they like to brush them under the carpet and some of you guys may think Russ you know you had a terrible week.

why would I want to learn from you and I want to remind you that being a trader, this is like being a professional athlete. This is a performance sport. Just because I lose one game doesn't mean I'm out for the season. I've still had a great year up as of today.

over $300,000 on the year. so I had some bad days and I want to do better I want to get better so just keep that in mind now. as always, if you guys have questions or comments on the metrics that I'm gonna go over for you or anything else, please leave them below because I personally respond to every comment posted on my youtube channel and I really do appreciate it. So and give me a thumbs up if you enjoy these videos.

Now this is what I discovered: I wanted to look first at my biggest winners and my biggest losers and so I knew that those trades would be on the extreme. So what I'm gonna do is I'm going to draw a bell curve here. so the biggest winners are going to be over here. And what I did was I added up my top.

Let's see my top 25 biggest winners and my top 25 biggest winners. This is interesting. They amounted to about two hundred and Fifteen thousand dollars. Top Twenty-five Biggest Winners: Two Hundred Fifteen thousand.

So I was like, okay, so that's what swinging for the fences gets me two hundred and fifteen thousand dollars. and some of those winners were fifteen twenty plus thousand dollars in one trade. But let's check the other side and now the other side were my biggest losers. So my top 25 biggest losers amounted to minus two hundred and Three thousand dollars Top Twenty-five So what I discovered based just on the top 25 biggest winners and biggest losers was that in fact, they offset each other to the point where swinging for the fences sweeper home runs only gave me a net profit of plus $12,000 in the last 10 months of trading.

So $1200 a month for all that stress and that adrenaline rush of swinging for homeruns and big strikeouts Only $12,000 now in that same period of time I said Ok, that's interesting. What else can I learn about these top 25 biggest winners and biggest losers? And What I learned about the top 25 biggest winners was that my average share size was 22 thousand shares. It's probably not surprising to make $20,000 $1 per share on 22,000 share position. Alright, so 22,000 and an average of 20 tickets for every trade.

Which means I press the buyer Salva in 20 times inside the tray and that might mean that I bought 5,000 shares I added 5,000 I added another 5,000 That's three tickets, then maybe I sold 5,000 added back, sold and and all of that up to 20 an average of 20 tickets and 22,000 shares. So that to me certainly felt like over traded and on the losing side. My average was at 12 tickets, 12 tickets, and 15,000 shares. Alright, so that basically told me that when I trade with really big share size, when I'm trading at the extremes, that's when things are getting a little crazy.

So now let's focus on this area here because if in the last 10 months I'm up over 300 grand and this only contributes 12,000 that means the bulk of the profit is right in here. So let's kind of bring this down. This is going to be let's say this is going to be anything more than - mm. So this is - $2,000 and that'll be anything anything - mm.

One more and this is going to be Green This is going to be plus 4k anything greater than 4k. Alright, so what I learned is that losses greater than 2000 dollars then and this is interesting: loss is greater than 2000 dollars Total: minus 360 One thousand dollars. This year average share size was fourteen thousand shares, unlost is greater than two grand, so that's that's a fair amount of that's big share slice and a fair amount of losses. Now on the flip side, winners in excess of four thousand dollars amounted to only three hundred and nineteen thousand dollars, including the top twenty five, and my average share size on those was fifteen thousand shares as well.

Alright, so what I discovered here was that if I never had a loss bigger than two thousand, and contrary to what I believed I never had a winner greater than four thousand. I Actually would have made an extra forty thousand dollars because those losses greater than 2000 exceed in dollar amount, the winners that are bigger than four grand. That's so that was a really big takeaway for me. So then this is what I'm really interested in these trades right in here.

So let's talk about these trades which is my sweet spot. So let's draw a line right here at zero. So this is going to be the zero point. This is anything between 0 and minus 2000 and over here is going to be everything from 0 to plus 4000.

Alright, so what a Discover! Trades between 0 and minus $2,000 amounted to negative 150 $6000 which is not bad and my average share size was only seven thousand shares. Okay, now trades between zero and positive four thousand right here amounted to five hundred and ten thousand dollars. Five hundred and ten thousand dollars with average share size of six thousand shares. So that left me with a net profit of about three hundred and fifty thousand dollars right here.

So if I only focus on base hits, if I stop trying to swing for the fences I'll actually make more money I'd make forty thousand dollars more than what I've made in the last ten months. and that, for me, is really eye-opening because I I feel the need to hit home runs to have those big huge grand slams those Hail Mary passes. And in fact, not only do they not really contribute to my total profit in a significant way, any trade in excess of four thousand up or two thousand down actually is detracting from my total gain. So yeah, it feels good to hit a home run.

It feels good to have a huge winner, but in fact, that's not making me a successful trader. What's making me a successful trader is hitting base hits. And so for the next month for the next thirty days for the next four weeks. I've set some ground rules for myself given the fact that the vast majority, in fact 110 percent of my profits comes from trades of an average of six thousand or so shares.

I Want to get back to that low share size now as a proof of concept and as part of being in Trader Rehab, I'm gonna limit myself to 2,000 shares. 2,000 shares is going to be my max share size for the next four weeks and that's part of pressing the reset button. Now my goal with 2,000 shares is that I'm able to get back to area right here. It's trading with really big share size that brings out the emotions.

The big share size results in slippage where the losses are bigger and the winners are smaller and and that's something that may not be obvious. You might think well, if you can trade and make X amount with 2,000 shares, you'll make the same amount with 20,000 times 10. But in fact, it's much easier to sell a 2,000 share position on the market then a 20,000 share position on the market. And that's just underneath the nature of liquidity in the market.

And so what it means is that when you go to sell that same 20,000 share position as you sell, the market has to absorb your buy or sell order with small high orders and the price goes down. So what that means is that those homerun trades with huge size, the winners inevitably will be smaller due to slippage and the losers will be bigger. And so as you scale up in share size, you don't go straight like this. you actually would see a bit of a diminishing return in fact to the point where it starts to go down where your share size got so big.

and finding that sweet spot both in terms of your comfort zone and the liquidity of the market is the ultimate goal of any trainer. So my goal for this trader rehab is to trade with 2,000 shares. Perfect concept to focus on solid base hits and to avoid these big losses. And certainly during this period of time I expect every trade to be within the bracket of - 2000 and plus 4000.

In fact, I would say since 2000 shares is a third of 6,000 I should probably be trading more within the brackets of you know, plus maybe I don't know 1500 and not more than minus seven hundred if I'm you know, really gonna kind of stick with that range. but I'm not gonna set that in stone right now. But I'm gonna set in stone is that this is my Mac share size and my max loss on the day. I've brought it up to minus one thousand dollars.

So if I'm down more than a thousand I'm done for the day and we'll see how I do with that. My hope is that this period of rehabilitation gets me back in the zone, helps me refocus on basis what really pays the bills as a trader and then next month when I start my small account challenge. This whole month we'll have been training to prepare me for that big challenge of trading with $500 All right! So as always questions comments please leave them below and I will see you for the next video coming real soon. Hey did you know every morning? I Go live to stream at Free Market Watch list.

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