What's up guys, we had a busy two days, so yesterday is where we saw a lot of um the vaccine names of vaccine stocks like mrna and vax selling off drastically on a daily chart. Um, given that you know those stocks were already really extended. If you just look at the mrna daily chart, you know what i'm talking about and it was the same idea with the other chinese electric vehicle stocks. You know the entire sector just kind of tanked all together.

So yesterday i had a pretty decent day. Shorting these stocks um and today you know usually when we see a massive sell-off the day before today, usually we'll pop and not get somewhat follow through to the downside. But unfortunately, today that wasn't the case. You know with ssr, triggered on a lot of these large cap stocks um.

It seems, like everyone just buying the dip like we have, that we had a major sell-off in the morning and after that, the stock just grinding back up. So, unfortunately, today is a bad day. You know giving back some profit. I made um yesterday, but it's all within my wrist control, but it does suck a little bit like after a very good day.

The next day, you know i'm having a small pullback myself um, but let's get into the recap. So mrna was the biggest trade for me yesterday, and this is what i meant earlier by the stock is very extended on the daily. You can see we pretty much went from 90s to 100 and 100 all the way to 150 on monday and tuesday. Yesterday, it gapped up all the way to 180s pre-market.

You know i was more short biased on the stock. Given how extended we are, we had a major gap up overnight as well. You know, and i started shorting around the spikes. You know i wasn't in on this major top of the day.

Uh. 176. 178. I started scaling in short um if you were looking at how it was trading.

It just keeps on trying to trying to spike above to 175 174s, but keeps on failing, and that's where i was trying to be patient with a stock. Um you've seen me getting chopped up by mrna before, but the price action on this particular day was very, very telling, and that's why i was more convicted to stay in short and keep in a short position. I just covered around the core position you can see here. You know i didn't even re-short it here.

Re-Shorted here covered some just in case. Um just need to make sure it's a comfortable share sizes, i'm holding short um because it doesn't matter. You know how great your setup is: there's still a chance of it being wrong right. Nothing is 100 in day trading, um, so i'm covering around the core, but i'm not afraid to add back in shorts.

You can see. I showed it somewhere here somewhere here. This is where i covered some just in case: okay, i'm holding a nice average at this point around 170s 170s with a nice shared size, i'm comfortable with. If it does spike and hold uh 174s, i have to cover for a loss, but if my thesis is correct, if it does roll over i'm gon na get you know, 10 20 points moved to the downside which we got uh.

The first major sell-off was down to 162. That's where i covered a bunch right. That's a that's! A 10 point drop. I want to make sure i'm covering some and then no, i covered some more on the secondary 164s and now i was oh out at 158..

That's from 170 to 158, that's that's a very, very nice profit, and then you know it bounced a little bit. I sculpted a little bit thinking: okay, we're probably going to consolidate around 160s. You know, and then you know we might shop around. I didn't know we're gon na get this kind of move um on the same day on the first red day, usually a lot of times we'll chop around the lows, and we get this kind of follow through to the downside on the second day.

But you know news did come out today, which is the day after this major sell-off that you know somebody sold a huge stake in mrna and that's where okay, everything starts to make sense right yesterday, uh this thing just literally couldn't bounce that high it had a Nice bounce from 154 to 164s and then just sold off the entire day down to 134 um even lower 130s. At the end of the day, i sculpted a little bit um, but i didn't want like too short and chase the weakness on the way down um. So i definitely did leave a lot on the table, but i'm still very happy about this very happy about my patients. You can see if you zoom me on the charts.

You know this is pretty much a short from 170s down to 163s and then my lowest cover was 159 um. So to me you know, yeah. I did leave a lot on the table, but i'm still very happy and i feel like i took the meat of the move um. No, this.

I didn't see this happening. I honestly didn't, but it did stay really weak and funny enough, because today is the day. I lost money on mrna, so mrna was my main focus yesterday, but i do still trade um, some smaller stocks. On the side.

I never got a big size on the you know. I was short a little bit and then i longed it here. I never got a big size, at least just because i was focused on mrna um, so this one, you know i had a short i cut. It lost early on, took a loss and i reshored it back down around eight dollars down to sorry 820 he's down to eight dollars, and i tanked all the way to 740s.

You know would have been nice to hold the short, but i didn't um, and this way we got a very nice long off the consolidation levels around 760s up to eight dollars. You know i should have sold more uh, but i got stopped out on the rest. Um and then it actually just went all the way to nine dollars and nine sixties, so can't can't catch them all in the stock market um but um, and then it sold off all the way back down. So ah, very small trade.

For me on the short side and side on blackberry, so yesterday my main focus was on that mrna shorts. We just talked about, and then i did do pretty well on it. I'm really happy about it, and today you can see. I was looking for follow follow-through to the downside.

If you look at yesterday, you know we sold off down to 130s. At the low of the day, we had a small gap up to pre-market about 150s and then we sold off with the entire market off the open down to 130s. Ssr was already triggered yesterday and then so my thesis was that i'm gon na short the major bounces um. You know i was thinking you know we might get a bounce to 141 142s and then this thing just kept on going so so this is where you know.

Sometimes you have to be careful what you wish for, because i was thinking. Okay, i'm gon na get a bounce to 140, so i'm going to short it back down and when i say a bounce actually did bounce and it bounced a lot further than i thought it would so. Um overall knit red on mrna short today. But let's go over this, i did try the short early on small size, nothing, big um.

This is where i started scaling in. I did short mrna three separate times today. The first time was a small scalp, nothing big small profit. This is where i've made the first loss here.

You know thinking okay they're going to reject previously close, they didn't they held it um and squeezed, and i got stopped out here. So that's the first loss on mrna today and then i try to again scalding around here thinking: okay, like if you look at this candle, this looks like a fake out right. It looks like a false breakout spike to 155 and immediately reject it back down to 143s. So that's why i went back again, smaller size, this time around um.

That's where that's, why i'm comfortable cutting it right away when it's not right right here around the high of the day at the time, the wick area, i'm out second time for a second loss um. So it's not fun. So i'm overall knit red from the day from the sticker. Now.

The third time is the time where it actually works um. So i scaled in short around here 149s re-added, some more covered, some just to make sure i'm on the right thesis this time around, because technically this is the third time i'm shorting the stock um, and then i re-added here thinking that okay, you know, that's that You know level level didn't hold uh we're actually trending down. I re-added added more covered some re-added, some more final size and covered everything here and then very good cover too, because after this third shorts, i just grind it back up and then squeezed out more shorts. Um to the 148s area, so um, the third trade did work.

I made back some losses from the previous shorts, but still read on the sticker, unfortunately gave back some profits from yesterday. So that's the first loss on the day. The second loss is xpev. So this one, you know the same very similar thesis as i had on mrna and that's why you know.

I showed that this this line is a smaller loss in general um. You can see basically the same idea, thinking that okay, we're going to reject previously closed, didn't work um, i stopped off starter and then i stopped out again here and then this one. No, that didn't work, but i'm still knit red i'm expect so. The third trade on the day was a long and then a short um.

I did think that the massive sell-off on neo was gon na get bought back up um. I longed it around this area. 39. Tens.

You know i started in very early, but i had a very nice average after this ad about 39 50s and then once it started to bounce it just bounced to 40 dollars, i sold all of it. You know thinking that. Okay, i want to make sure it's not gon na just keep on trending up and it did here. That's why i went long again and i sold into 42.

This uh the neo long was the only green trade on the day and then i went in shorts. Neo thinking the same thing as expeve um, shortly around 43, 60s re-added and then after this level reclaims i was like okay like they are not gon na. Let this thing back down and i covered everything here and then you can see just like expeve and mrna. This thing just kept on grinding up and actually held red, uh, sorry green on the day, and it's going up higher.

It seems like the similar action across the board. We have some massive sell-off at the open and then we just kept on kept on going up and um. No definitely a lot of people got squeezed today, um, i'm one of them, but um, i'm still, okay, just because i manage my losses, even though it sucks to you know kind of have a red day after a very nice green day, the day before um, i Just want to live to trade another day right. That's that's how i kind of stay afloat in this game.

It's all about risk management. Usually these would be the days where we can get some nice follow-through to the downside. Um. You wait for the bounce on a second red day and then you see a nice um continuation selling off, but that's just not the case today and uh.

You know i was wrong on my thesis uh. I just have to accept it and and manage my risk, and i don't want to give back all the profits i made yesterday. So it's time for some q, a so luca is asking uh here's a question when you realize that your initial trading plan failed. For example, pltr and mrna: what are the main reasons for you to go long? Do you give yourself any time to reflect rebuild? Do you think a failed short entry resulting a successful entry for going long? So this is a very good question and i think i think there's no black and white answer to this.

Whether sometimes the shorts that fail does result in a in a in a flip right and going long um. But i think i think that's depending on the setup right depending on where it failed and where it held back up. So let me just take a step back, so i think you know a trader who knows their setups really well is also one who knows that when the setup is not working, you have to know when no, that that's how i traded my setups today right when I realized that okay, this setup is wrong. My thesis is wrong.

You also want to know when to get out it's just as important to know when you are right as it is to know when you have to give up and stop out. I think that's very important, because no one single strategy is going to be 100 successful all the time you have to know when the setup is not looking right when the stock is not acting according to your plan and you have to get out and respect your Losses, i think that's very important and that's what makes a trader a professional trader and one that's consistent. You have to know when to you know when to take losses, it's just as important as knowing how to make money. You have to know how to take losses.

So for the example that you know luca is referring to, i didn't flip low on pltr. I just recognized that you know it was. You know holding too well, it's not selling off, but you have to see whether it's a long setup right. If you are short, failed, it doesn't automatically make it long.

You have to assess it from the eyes of a loan trader at that point and whether that's your loan setup at the time pltr wasn't a loan setup and i didn't flip loan, but for mrna this stock. I know pretty well most of the time not today uh this stock. I know that uh when it when it should have failed but keeps on you know getting propped back up, especially above on the day he's mentioning about pre-market highs. Usually, that's a loan setup for me because mrna, you know it's a stock that reacts very very drastically to the pre-market high level and the high of the day levels um.

So that's the day i actually flipped long, but if we're talking about today how i traded, i didn't see a long setup in the mrna. I only see a short set up, so that's why i never flip long. So i think it's very important. It's not that! Oh, you know if my loan fail, then you're short, it's dependent on your setups so but i think it's very important to first know when to stop out and whether on your long and short and then work on potentially flipping the other way around later on.

But you have to know when to stop up. First, that's the most important part in trading. I think it's about managing your risk and knowing when to accept a loss, because sometimes you just got ta, take the loss and you cannot just keep on holding on to a loser all the way to the top. That's that's the the surest way to blow up um.

So second question is: from ned b got a question: what are your views on options trading? I only do day trade and swing trade at a time, but i'm looking into the other. So i'm a firm believer that if you don't know how to trade stocks profitably, then you shouldn't trade options because options you have to take into consideration, not just the price action in the trend, but also the premiums, and so it exaggerates both your profits and losses. Yes, i've seen people make. You know five hundred percent, a thousand percent on the options trades, but i've also seen people lose 50 or all of their options contracts.

So i think, if you know how to trade stocks, then options will be a good way for you to kind of. You know, expand and leverage more of your buying power, but a lot of new traders when they don't know how to trade stocks. They move on to options, thinking that oh, i can take a hundred dollars into ten thousand dollars, really quick. That's actually the quickest way people blow up their accounts and i'm saying that because some of my biggest losses from my earlier years of trading uh in my first year or two were from options, contracts expiring worthless.

I already didn't know what i was doing trading these stocks, so let alone trying to figure out what all the greeks mean. So you know i think so that's just my thoughts on it on options trading. I think you can make money on it, but you definitely want to learn how to trade stocks first, if you guys have any more questions, feel free to leave them in the comment section below. Thank you guys for watching and i'll see you guys next time.

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