Welcome back to small cap recap: everybody um matt's, not here today he's got a doctor's appointment, but i'm gon na keep this short and sweet matt, and i got absolutely smoked today. Uh guy caught an overnight offering on f a m. I together we're down a little over thirty thousand dollars. Today, it's tough! It really sucks we're both oversized on the trade relative.

I mean to be fair, you know it's tough, it's an offering, but definitely a wake-up call. I know matt feels the same way um. It was a 50 gap down off the offering an example of why the if you're going to swing small cap stocks, you got to read the filings and big mistake. We just blindly swung it.

After i mean the daily chart was nice, but you know it was uh, it has history of gap, downs and you know we. We swung it trying to kind of go for gold and matt lost, i think 22 or 23 000 on it. I lost 12 or 13 000 on it. I'll need to get all the exact numbers there, but we did have a couple day trades that did help us out a little bit i'll go over all the charts in a few minutes here, but yeah.

That was really tough um. It was kind of for me, a big wake-up call one. You know for a couple reasons. One i've mentioned this on camera multiple times before that i need to stop swing trading um and not that this was like a swing trade in the idea like i want to hold it for multiple days, multiple weeks but overnighting like over the weekend.

You know that's not my bread and butter, and you know that's something. I've deviated from a lot of lessons to be learned there um, but for a big thing for me, is i've really just been trying to work on sizing down, especially on the even just my intraday trades right, like making back a drawdown, never comes from one trade Or one really good day - and that was the problem is my last drawdown - i did make it back in one day i had like a forty thousand dollar day. It got my confidence up way too much um and you know i paid the price by taking now another pretty big drawdown, so i'm gon na be using small size for the next few weeks, really just getting back getting comfortable. It's how i've overcome every previous drawdown.

Uh and that's what i'm gon na do again i'll get through this is gon na be now i know i'll be all right. Um and i know matt will be too. You know we're not worried, but it's definitely a reality check big wake up call and now, let's get into the charts. So this is the daily chart on fami uh.

I said a 50 gap down uh, let's zoom out a bit, so this is the daily chart. It was a previous gap down it kind of had like that cei look to it almost where it was looked like it was, become a multi-day runner. They dropped that offering uh. Let's see we'll do a two day here.

They dropped it at 8 p.m. On friday now to be fair, i knew the offering was coming. I figured it might gap down like 20 um gapped down like well 50 ish. You know what i mean.

It was a by the time it opened. I got out on this bounce into the 30s here uh and yeah it sucked. I was long from somewhere. I bought one of these dips down here.

Oh this is brutal. Like i said reality check, wake up, call lesson learned: uh, let's go into the day trades again, which is where i generally do better this one's. I see i actually was not watching it. I wish i would have a very clean entry right in here after this false breakdown, literally the same pattern right here, i was at the gym during this time just trying to get away from midday, because midday right now is not a time that i'm profitable and I'm trying to avoid it as best as i can, but this definitely was a nice trade.

It's still looking uh, you know it's still looking pretty cool, though, for tomorrow i like it a lot as a watch for tomorrow, uh aehr. This one is really good to me today bought this right here, sold into this pot, bought again right here, sold into these pops and bought one more time here. No, maybe right here, uh sold for break even once it didn't continue just trying to stay scalpy. This is a bit too far into the dave that i wanted to be trading anyways.

I left right after this uh then ater. I had a pretty good little trade on right here, longed a thousand sold up into. I let it pop into here and failed, then sold into this higher low uh. Once it looked like it wasn't only higher took it one more time right here, cut for a small loss there and then re-bought once this reconfirmed for a nice little scalp at 1760.

Something right in there uh sold into this 18 push and yeah. So i'm into the day, i don't know the exact numbers, i think down: 13 000. I think - and i think matt's down in the day about 18 000, so that puts us red andrew. What's that math there 31 18, 13..

31. 000. - that that checks out sorry, my my brain's, my brain's a little off today and just got the calculator yeah all right, andrew, say: hi to the people. What's going on guys yeah there we go um yeah a tough day really tough day, but again, like i know, i'll get past it.

It's going to be all right. I know matt will be the same way views this. You know, i i'm sure a lot of you guys watching or maybe a couple of you guys. I don't know this is the first offering i've actually been stuck in overnight uh, mainly because i never like would swing things before, and you know i i've you know mentioned that.

I want to oh haters going um. I've mentioned that you know i do want to learn how to swing. I want to learn how to add that, to my arsenal, the the fact of the matter is: i'm not there. Yet i haven't done enough back testing enough.

I haven't gotten enough data um to do it with the size i'm doing it with, and you know i haven't read through filings for small caps. You know, that's that's the difference between swinging. You know larger cap stocks versus small caps is small. Camps, are great.

The risk reward is generally fantastic. However, there are times where you get stuck in really large gap: downs um, whereas if you're swinging large cap stocks, that's not going to happen, you as often sure the market can take a beating, but you might lose five or six percent on a really bad day Versus fifty percent on a small cap trade, so you know there's there's advantages to both, but i'm going back to my process um. You know sticking true to myself sticking true to what got me to you know over 850, 000 in profits and yeah. You know i haven't had too many issues before this before i decided to be a swing trader, but i've got a lot of work to do and it's you know everyone, regardless of your level, will go through drawdowns.

I'm really happy that mine, relatively speaking, isn't that bad. I think my drawdown now is about 35 000, which you know relative to my i'm still up. 850. 000.

So it's you know not even a not even a three percent drawdown. Yet maybe it's just over three percent, i don't know it's under five percent, though, which is i'm happy with uh just trying to really you know size down and come back stronger, and i know i will and uh. Let me know in the comments down below you know what are like: how do you get out of your drawdowns if you know if you've gone through a really rough drawdown, how have you gotten out of it, or are you struggling to do that now? Maybe we'll talk about more about that on another small cap recap on how me and matt have gotten out of our own drawdowns they've happened. You know what i mean so um yeah anyways, guys give us uh give that video a thumbs up.

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