I've been getting many comments requesting more of my live trading commentaries. I Know I Know it's been a while since my last live trading video. Sometimes this makes me questions. maybe no one wants to see me potent anymore, they just want to see me change.

Just kidding, who cares about pole dancing? It's all about trading here. Alright Traders My live trading review is back today. I Decided to use my live trading footage losing over five thousand dollars to teach a very, very important skill that all Traders must have. How to follow risk management and respect your stop loss.

Remember it really doesn't matter how much money you make in trading if you don't know how to keep the money every profitable. Trader knows that planning stop loss is just as important if not more than planning for your profit targets, especially in a better market. So in this video you're going to learn how to plan your risk management levels and risk Awards as part of your trading strategies, how to execute stop loss and how to protect your account Capital Don't forget to take notes, ask me questions in the comment section and smash the like button for more educational videos like this. Let's get started.

So on the screen right now is a really good example of a Gap down long strategy. I Traded on Bbby when this meme stock made another crazy comeback and my thesis on this particular setup is to Long the bounce after this huge sell-off and after they open right? I Don't usually recommend trading pre-market so in this scenario you can see that after this huge gap down to 1050 and consolidating around 11 pre-market the upside is potentially a bounce towards the recent resistance of Thirteen dollars and potentially 14 15 upside, while your downside is limited if you are using the pre-market low support at 10 40s. So basically the reason I like this for a long is that there's a lot more upside and limited downside. The downside is really defined so on the screen right here.

we have the daily toy on the left hand side and the five minute intraday chart. The part highlighted in yellow is pre-market trading session. I Personally don't like to trade pre-market but I like to use a pre-market price level as key levels, especially when trading particular strategies like this. So you can see pre-market lows we have around 10 40 1050s right here, and the pre-market highs we have around 12.

So in this particular scenario, the true confirmation for this loan strategy would be if the stock is able to break above the pre-market highs, consolidate above it, and then rip higher. That's the bounce move we ultimately want. Now, if the stock just trades in between 12 and 1050s, then that just means it's pretty balanced and the stock didn't have any strength to push above it. However, if it breaks down that 1050, then that's what we call line send in which your long thesis is no longer valid.

So let's talk about entries here. We have the daily chart on the left side and intraday five minutes on the right hand side. We have the pre-market session highlighted in yellow and the white part is the regular trading hours. So looking at this I was planning for a V-wap area around 1150s, a starter entry on the long side.

So usually I like to start aim due to my partial positions and only add to my full-size position if we confirm over the key level. So my planned entry is 11, 30, 11, 40s this view, up, dip area and adding over 12. Now if you've been watching my channel, you know that planning for your risk is just as important as planning for your entries and a profit potential. So in this case when planning for my stop-loss area I want to use this 11 area because below view app right us man risk and ultimately 1050 is that pre-market low support is the Line in the Sand.

So if the stock breaks down eleven dollars I'm gonna be really cautious and think about stopping out and if it remains heavy and breaking down under 10.50 then I know that my long thesis is no longer valid. So now that we know about the 50 cents and one dollar downside potential, let's talk about the upside move. If the stock is able to break above 12, then it has a potential rip towards at 14 and 15. And why is that? Because just looking for a daily chart you can see that once over this twelve dollars, you're upside to this level.

Right here. You can see these two little Wicks on the Candlestick charts on The Daily Those are potential resistance up here at 1330s, but really the ultimate goal is about 14 and 15. from where this technically speaking, the stock has sold off the Gap you can see this empty space between the 16 down to twelve dollars. that's our price.

Target So ultimately we're looking for 14, but ideally closer to 16 for the upside. So in this particular trading scenario I was looking for a minimum one to two. Risky word, and ideally and potentially with adding more size over the key level one to three, or even one to four. That basically means if I'm risking five thousand dollar of my capital and potentially making ten thousand or fifteen thousand dollars, this will be equivalent as somebody trading a smaller account risking a hundred dollars to make 200 or three hundred and four hundred dollars.

Next we're gonna go into the actual trade recording of me losing over five thousand dollars according to my risk management plan. If you're enjoying the video Lesson so far and appreciate the transparency, then make sure to smash the like button down below. especially if you want to see more video lessons like this in the future. So you can see Market opened at 9 30 and long 2 000 shares at 11.72 and the stock at the open.

it's already dropping towards a view up area. You can see that I have an order sitting at 10 50. seeing if we're gonna, you know Rush down there and I can pick it up for some cheap price. It's not holding around that view up area 1140s but I'm waiting to see if we're gonna at least get 11.

Remember that 11 was my ideal entry Eleven dollars, Eleven fifty. so you can see it's holding up right now. You can see me trying to add a little bit, didn't get filled to full size and the stock is already bouncing. Testing that twelve dollars key level that we talked about.

Remember unless the stock gets over 12, then it's not confirmed for long. So I'm up a little bit. but ultimately I'm looking to add over twelve dollars Now Twelve dollars. Now you can see I just added that line over here.

Twelve dollars. The stock is on SSR because one of the stock gaps down and Below ten percent. Uh, on the day Negative: 10 on the day SSR is triggered so can you see me trying to add a little bit and now the stock is testing that 12 area. Remember what we said earlier unless the stock is able to reclaim over 12 at Shoe key level I don't want to be adding to full size I'm fine starting in with two thousand, three thousand, five thousand shares.

but I'm not getting to full size unless we get over twelve dollars. then that's worth my risk right under 12 so you can see I added to four thousand shares 4 300 shares with an average of 1180s. but again, we're still testing at Twelve dollars. We haven't gotten over that yet and up a little bit.

But um, this is not what I'm looking for I'm looking for the huge breakout over 12 and for the stock to get a huge bounce. You can see we're rejecting that twelve dollars. I'm trying to give it some time. The volume was extremely high that day and the open.

we traded um around 5 million shares. just within the first five minute candle you can see the stock is rejecting hard off of that twelve dollars right now am down about a little bit more than one one grand. but again my ultimately I'm okay risking below view app. if it doesn't work out you can see this now.

more zoom in. Now you can see the stock is testing just around V-wap on the five minute chart. 11 30, 11 20 is marked and it's remaining very heavy. You can see that I'm thinking about adding more around that 11.

Mark Remember, 1050s is being my ultimate risk, but in hindsight, looking at this I shouldn't have added so soon. Oh actually I didn't add I actually stopped up so if I rewind a little bit to watch How I stop out when I stop out and when I know I'm wrong. especially when I'm trimming these position sizes I just click and then sell I don't wait I don't back hold if I'm wrong I want to get out right away. So I stopped out 2 000 shares at 11 90s sorry 1090s so that took about eighteen hundred dollars lost.

You can see we're still remaining heavy. we haven't Consolidated over that twelve dollars Mark yet. So stock is remaining heavy and uh, you know things are not looking too good right now and I decided that was time to build. You can see I just click on the bid 1062 because the stock was extremely heavy, had to get on the bid.

um well I'm trying to get out I just clicked the bit side on the left side of your L2 and then click cell. So I stopped out of this trade on the losing side for four thousand six hundred dollars last um, trading around how many shares I had around 4 300 shares. so about a dollar loss per share. Obviously it sucks to lose, but honestly this was my starting position and I was ready to risk at least five thousand dollars to start with.

But if I'm wrong I know I'm gonna make two or three times more. You can see after fast forwarding now the stock is trying to bounce from 1060s off the lows to 11 30s so a lot of people will be thinking oh my God I should have helped, just held my position I would have lost less um, but you really don't know that right? A Lot of times when I'm wrong I just prefer to get out instead of holding on to a loser because what if the stock just cracked through that 1050 and go down to 10? A lot of times if I'm wrong I just want to get out and reassess the situation. So, but over here. I did make the mistake of going back a little bit too early, but I'm glad I only went back with a thousand shares at around 11 50s on the long side.

again thinking that okay, we matched our consolidating overview app. If we get over 12, that's when I will add and I'm glad I didn't add because uh, spoilers. Uh, this didn't end up working out the second time, but this time around, knowing that I had already lost my initial starter position I'm a lot more careful with how much position size I use on this second attempt. Again, the stock is bouncing to 1160 1180s, but that's not what I'm looking for.

The plan is ultimately over 12 thing above for the big bounce moves. Remember earlier we talked about the stop loss area is around 11 under that view app over here and ultimately under 1050s. If the stock actually breaks down, then the thesis on the long side is no longer valid. but at the same time, the long confirmation it's not really confirmed and not really true until over that twelve dollars mark.

So that's the reason I'm staying small on the second attempt with only a thousand shares. Despite this huge overnight gap down, the stock is still really weak and there's a lot of sellers so you can see on the five minute we're losing that Eleven Dollars bid and it's not good, right? Remember Eleven Dollars Mark is our stop-loss area. So now seeing that 11 is not holding I'm gonna get ready to stop out of my rename Manger 1000 shares at 11.50 So I'm risking 50 cents on this trade. You can see stock remaining heavy, but thankfully I only use a thousand shares on this second starter holding for a little bit, trying to do a dead cap bounce for stock to be breaking down.

view up twice already after only not even half an hour of the open. That tells me the stock is extremely weak. it's not ready for the long side. and then fast forward five minutes later, it's still struggling around that Eleven Dollars Mark trying to reclaim once again over 11 20s.

Um, but it's still remaining very, very heavy. There's definitely imbalance. um, and reviewing this clip in hindsight now which: I still do a lot reviewing my own trading recordings I Realized I should have stopped out a lot earlier I'm at remainder of 1000 shares I Think in hindsight, if I had stopped out earlier I probably would have flipped short, but no I was still holding on to that final 1000 shares. Well, it's not a lot I Think it's about the missed opportunity cost.

That's a little bit painful to watch because it could have been a great short actually under that 11. Mark with a downside to 10.50 and potentially below as well. And remember, the stock is remaining below V web so it's really weak, but relatively to the volume and the price, you can see we're rejecting that new up area once again around my 1120s. Okay, you can see that I placed my order for a thousand shares to cut the loss at 11.02 so it's basically trying to sell it for 50 cents loss.

Let's see if I get filled because the stock is turning really heavy. you can see what rejecting view up once again and I'm out. So I stopped out at actually 10.95 so I lost about 57 cents per share 60 cents. so that adds to another like 500 600 loss.

Um, together tallied up to five thousand two hundred dollars loss on this trade. So back on the trading view chart. I'm glad I stopped out even though I stopped out here a little bit too low down here at Um 10.95 The stock eventually sold off even more down to 1050s, but kind of bounced around for a while. That 1050 line Ascent never truly broke down until much later on near the end of the day.

You can see after 10 50 it bounced off to view up again and chopped around. You have like a short-term rally during the middle of the day from 11 30 to 12 30s when the stock went to test at 12 again that twelve dollars key level. but I'm lucky that I wasn't around because I would have gotten chopped up once again. it's that 12 broke out to 12.50 That's great, but there wasn't enough volume, normal momentum to keep it afloat and to stay around the key level so you can see the stock sold out from 12s and back to lows into the end of the day if I have held on to it, or if I revisit it again and again after the first two attempts, I probably would have lost even more money than just five thousand dollars.

So it's five thousand dollars. A small loss or a big loss for me. to be honest. it's a relatively small percentage of my account size and thankfully the position size I was using as this trade.

The first and the second one was just a starter size. I was planning to scale in more, essentially adding even more position size if we had reclaimed over that twelve dollars key level. but even for myself, upon reviewing this footage earlier, I also realized that I should have stopped out of my remainder 1000 shares started way sooner I Think I Definitely held on a little bit too long after seeing that the second attempt of 12 dollars and V-wop kept on failing and the stock was having trouble holding that eleven dollars. Mark So that's something I can improve on next time.

Doesn't matter if the starter is a thousand shares, five thousand shares, or 100 shares. I Think you know if you recognize that your thesis is not valid and the stock is just really weak. I think I should have stopped out way earlier, but it really doesn't matter what amounts I lost or earned. What matters most is that the trader has the ability to learn from experience and become a more disciplined and more consistent Trader over time.

So next time around, I'll be a lot more patient after the open and I'll stop out of my starter positions way sooner. Most importantly to me: I Want to be able to use my losses to offer valuable lessons to my fellow subscribers. You guys and girls here watching this video. Whether it's a win or a loss.

If you've been watching my video since 20 20, you know I'm never afraid of showing my losses as they are really part of the reality in day trading. As someone who teaches day trading on YouTube I think losing trades generally provides more valuable lessons for my viewers and for myself as well. If you enjoyed this video. Lesson and how I planned out my risk award and following my stop loss then make sure to check out the next video on risk management and Price Action trading.

And if you need a more structured program on day trading strategies especially risk management then you should check out the Humble Trader Community down below. Thank you guys so much for watching As always I'm the Humble Trader and I'll see you guys next time. Thank you.