Hey everyone all right? Well time for another episode of driving with Ross taking a little cruise in the Range Rover Bit of a rainy day here and the weather's gray. My spirits are gray I've had a little bit of a rough week in the markets I have my biggest loss this week I've ever had on a single stock. It's always a good time when you have a big loss to step back and reevaluate. Now for me, what happened, you know, kind of played over several times and really looked at it.

There's sort of a process of evaluating when you make a big mistake for me if I had when I had a period. For instance, where I wasn't trading profitably I wasn't trading consistently what I did was I reviewed all my tricks I was like let's just broad brushstrokes. look at what's working and what's not working. So I looked at everything from biggest winner the biggest loser will analyze the biggest losers, what they all had in common, analyze the biggest winners, what they all have a good and.

But then on the other hand, with this particular instance, I've got a long stretch of being consistently profitable. It's been more than a year since my last red month, which is you know, a fantastic hot streak so you know it's more like okay, what happened on this specific trade that allowed to get so out of here knowing that my strategy as a whole is sound and so as I look at this specific trade, you know my process of analyzing it is. how did I find the stock? you know number one had been, find it and number two. What was my process of due diligence before I press the Buy button and I found it on the scanners.

it was on our scanners. However, it wasn't on my scanner. that is my favorite. it was on my second favorite.

scam actually is on my third. it was on one of my scanners that's in the top and I have probably about 20. that everybody so you know isn't It was on a pretty decent scanner. The price when I first saw it was about three dollars and fifty cents and it was moving up quickly.

It just moved up from 250. They moved up a full dollar in the last maybe 10 15 minutes. So when I looked at that I immediately was like wow, this stock is moving really quickly and that when I see something moving quickly I immediately am thinking of opportunity. it's moving quickly.

There's a lot of opportunity here. If I could jump on this and ride the momentum, this could be at four fifty five dollars, Six dollars before you know and I've seen stocks do exactly that. So in my mind I sort of went right into the potential what this could be and I'll say that some of my biggest winners have come off of a scanner where I looked at it, the stock had already made a big move and I jumped in, rode the momentum and got an extra 75 cents a dollar or even two dollars as it continued to move higher. However, those usually had a few things in common that this stock didn't have.

The first is that typically those would be on my low float momentum scanner. lower float means less supply, less shares available to trade, and massive volume indicating it's you know people are jumping into it. The low flow massive volume scanner is my favorite and that's typically where I find a homerun trades this wasn't on that scanner. Okay, sometimes you know you'll get a homerun stock that's on that scanner.

So I pull up the stock. Well, the float is 17 million shares. Not bad. a little on the higher side.

Okay I look at the daily chart. It's not a farmer runner. It's actually not a stock that I've ever traded before I Don't think so. I'm not familiar with it as a little disappointing I Like to trade former runner stocks have a history making big moves I like to trade stocks with floats of over 10 million shares.

The daily chart was ok, had room up to the 200 moving average I Wish you there, but what was driving the stock higher? There's no catalyst, but there was no break myths and for some reason that I'll despite the fact that all four of those criteria for home run potential, did not check out I jumped into it I Think the reason I jumped into it was I saw that it was moving quickly and that's all I needed I was like this is moving quickly I'm jumping in I'm gonna ride the momentum and I think I thought at the time that I could jump into it at $4 which is where I got it and easily ride it up to maybe 450 475, maybe $5 The 200 moving average was at 533 and I can easily get Worst-case-scenario 1020 cents a profit. Best-case scenario: 50 Cent's 75 cents of the potential I got in before and it immediately dropped back down to 369. so I was down 30 cents. It then curls back up and I add at four.

Sometimes we see stocks pop up, pull back, curl back up and continue. but doubling my size. It's not great because your best setups will go right away. Your best setups: you get into four and it goes right to 450.

It's like instant homerun. so the fact that it had pulled back already has given you a warning sign. but I'm not seeing I think at that point I I was sort of like the invested emotionally I was like this is either gonna this is going to be a big winner. If it's not, it's gonna be a big loser.

It's not gonna be anything in between and I was dead. It's starting to get emotional and I would say that there were some factors that led to me being more emotional than usual. the biggest one being that I knew with one good trade I would finish this challenge. This two-year two-and-a-half year long challenge.

I've been working on to take six hundred bucks and turn it into a million dollars at the time I was only about six thousand dollars away from crossing that level and this to me, it looked like an easy opportunity to jump in, grab that six thousand bucks and be done. Finish up the challenge. So I'm in with huge size. way too much size at four dollars and then it drops back down a second time to 360.

comes back up a third time I don't add I just holding it. can't break over for ten jobs. back down to 360 and then it flushes down to three third and I'm down 70 cents per share. At that point I was like well, yeah, the exit indicator I hope that's gone because that was getting out of 360 and it didn't get that.

So now I'm holding it I'm saying I'll hold through a one minute micro pullback I'll hold through the one minute pullback. the bull flag wait for the first one minute candle to make a new high. So I hold and certainly not the position of confidence to behold a Koala red. 40 cents or 50 cents and it was bouncing between 340 and 360.

kind of in that area. so it was. You know who was looking. Potentially like it might go back up, wasn't sure, but it might and my mental stop was about three dollars at that point I was like if it breaks below three, that's it.

It breaks below three, immediately drops to 280 and I'm selling it and getting slippage and I'm out of like 260 270 and looking back, the stock didn't have enough volume at the time of entry. it didn't have a strong cabbage and have any catalyst, so no volume, no catalyst. The float was too high, it wasn't on my favorite scanner these are all red flags and I I had such tunnel vision on this very short-term specific goal that I lost sight of what my strategy really is all about. And so the trade that I took that I lost so much money on in fact, really was not within my strategy.

And that's disappointing. You know if you're gonna lose $31,000 so just how much I've lost on that train, you'd like to think it's because you have the potential to make 60,000 They didn't match right? No way you know it admitted to nab a potential. So I stepped up to the plate and swing as bad as hard as I could had a ball had already bounced off the ground. It's like this: this is a ball.

It was the definite ball and I was gonna be a little is just picture for the crystal. for a second this was a ball. The bases are loaded. it's the ninth inning and this is going to be the fourth ball and I'm gonna walk but I've already got two strikes and stamp taking the ball I Swing the bat.

Such a joke. Stupid. so stupid. I'll make mistakes and you have to forgive ourselves.

With a loss is an opportunity for a lesson. and I think that each of us can get into these kind of mildly obsessive patterns I Know that this is not the first time I've had this issue I No doubt at this issue when I was doing my 583 200k challenge, the first step that the first leg of the challenge was up to. okay I had it done I was getting really really aggressive dress swing for the fences I've had it on months where I said I'm gonna make a hundred K this month I set these arbitrary lines and get so obsessed about it that I end up psyching myself out. It's a mind game and I know a lot of students have gotten into that frame mind as well where they're like well I need to make $5,000 a month? Suck.

be a rat I'm only up 4200 I need to get another $100 and then they do something stupid. A reality with trading is sometimes you have amazing months, sometimes em for a few months and that's okay. It's all about averages. Last year in February I lost $10,000 Still finish the year up - her grand.

You know if I lost ten thousand a month, the ads be down hundred twenty grand over the course of the year. but I didn't It was just one bad line. There's no reason to get bent out of shape. It's no reason to start swinging.

you know, for clear balls and you know you know it's just you guys. stay focused. So for me, it's hard to completely detach myself from this big challenge. You know, every time I've put in my daily PNL I'm seeing my progress on this challenge.

but I really need to make an effort to not look at where I'm at on a daily basis for the next few minutes. Just a trait. Just focus on trade challenge out of my mind. it's psyching me out so just put the challenge out of my mind.

focus on doing my trading. Give him a thing and I will cross that million dollar mark. and would it be cool if I look and I'm like whoa I crossed that mark history cuz I wasn't obsessed about it anymore. So you know we all put these pressures on ourselves and sometimes they are totally unnecessary.

So give yourself a break if you're going through something similar. keep yourself a break. Let yourself off. That's my two cents.

All right. So I'll see you guys in the chatroom first thing. Oh no one will upload this video. but back in the chat room.

I'll see you guys there. Alright later everyone. Oh hey I didn't see you there while I was just working on the dream board for my next home run trade. Hopefully it comes soon.

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