What's up you guys? All right? Well, here we are. It's Red Day Recap. Um, you guys will probably enjoy this more than I do. Um, I think red day recaps often are some of the better recaps.

I'm talking about some of the very real struggles and challenges of being a day trader. Even after doing this for as long as I've been doing it, Red days, Breaking rules, frustration. All of that still happens. So today I had I started the day with a series of red trades on Sava trying to, Well, I missed sort of this bigger pre-market move and as it was starting to pull back, I was trying to buy it to anticipate the first, uh, one minute and then the first five minute candles to make a new high.

And each time that started to happen. As I was sort of buying, it was like very, very shortly after we got a big flush and I stopped out once, twice, three times, Four times. I think I might have had five or even six red trades in a row on Sava. And what I did, which is kind of something you have to be really careful about, is I kept taking bigger share size on each tray and I did that as many traders will, because on the one hand, as it went as it came further down, I kept thinking that now when it does bounce, it's going to bounce even bigger.

And I think instinctively I wanted to try to recoup the earlier losses. And so what ended up happening was, you know, loss Two was bigger than one, three was bigger than two, Four was bigger than three, Five was bigger than four, Six was bigger than five. Basically, I think if there was one in between, there was a break even trade. But generally the losses were getting bigger and bigger and bigger and bigger.

So I went from down I was I think red, twelve, thirteen hundred, then seven thousand, then twelve thousand, then fifteen, and then uh, to 30, 31, 000, Uh, just over 30 000. I'm read 28 on the day, I did take a couple other trades that recouped a little bit, but not in a meaningful way. and but whatever. So yeah, I'm down 28 000 on the day, most of it on one stock that I just kept trading.

and I, I mean, I did draw the line in the sand at a certain point on it, but it was not as good of a place as if I had drawn it much much earlier. So during the recap, I'll talk about why I made some of those decisions. Not to say that they were all the best decisions, because I have, of course, you know, a sort of uh, a strategy and a set of rules that I follow generally. but you know, like anyone else, there are times where for whatever reason I decide to go outside those rules and I say, you know what? Okay, I've had three losses in a row, but I really think it's gonna bounce So I take a trade and then fourth loss.

All right, Okay, four in a row. But really, I think this is going to go and at the end of the day, the only person that's going to hold you accountable for following your rules is yourself and in the market. Sometimes you will take that fourth trade after having three red trades and have a huge you know green trade and so the market in that way is rewarding you for essentially breaking your rules and that can send mixed messages. When is it okay to break rules? At What point are these rules helping me? At What point do I follow that rule and say I'm not taking that fourth trade and then watch it do exactly what I thought it would do and make a huge bounce And I'm like man, these rules are hurting me.

I'm being punished now for following my rules and so that can all create this sort of internal conflict About when do I? You know, when do I strictly follow them? How do I handle the frustration of you know, kind of feeling punished for following the rules and then how do I handle situations where I continue to start breaking the rules and then you know it doesn't work and I'm just losing more and more. And then also on top of the loss have that self-frustration of I knew I shouldn't have done it or I really shouldn't have done it based on the rules. but then I did it anyways, you know And so all of that is something that we we all struggle with in probably one way or another. So today for sure was a discouraging day.

This will be my Uh, within the top three biggest red days I've ever had in my career. The other three are or the other two. These three total are all right around the 28 30 000 level. The fact is having big losses that are far bigger than your daily goal or maybe even in some cases bigger than your weekly or monthly goal is not uncommon.

Day trading is risky, losses can happen quickly, and if you don't have self-control they can also start to snowball where you start to double down or losses get bigger and bigger and bigger. But what I will say is that um, everyone has a sort of max pain point somewhere and that's usually what we sort of call the capitulation where you just throw in the towel. You're like oh my god, this is brutal and that's when you're doing it. When you're selling, it's when you're seeing a stock just totally rolling over.

It's just dropping and all. We actually didn't see a lot of that on uh, Sava, We saw more. just like a grinding stair stepping lower. Um, it was kind of interesting.

But then on the uh, the other side, the capitulation when a stock starts squeezing up. Like where short sellers are like oh my god, this thing's just going crazy and they just press the market order button and then just get out. I would say that my line is always the bailout is on the earlier side because what I don't find myself doing is holding the bag on stocks like when I when I log in tomorrow. although I will have lost money, you know from today I'll start with zero positions.

I'm not holding anything into tomorrow. so you know I I just draw the line in the sand, but it's usually within the range of, you know, the intraday price action. Not to the point where I'm holding it overnight and hoping it turns around. Which is good because if you look at some of these stocks when they start to fail intraday, it can become a multi-day pattern of just selling off And so that can make losses a lot worse.

All right. So yeah, I've shut down my charts, I still have my scanners up, but I'm going to close those down. The best thing that I can do is just walk away and not look at stocks for the rest of the day today because there's no way I can look at them without feeling somewhat emotionally charged. and even tomorrow.

As much as I might say, I'm fine. I'm totally okay. I've had a great year. Thirty thousand dollars doesn't even in the red, doesn't even shake me.

Uh, I think that it's impossible for that to be true. A big red day like today is gonna knock me off my balance off my center a little bit for a couple of days, maybe for the rest of the week. And so the biggest risk that I have is would be tomorrow. Underestimating that, thinking I'm fine and trading with big size and having a second big red day and being down 15 20, 30, 000, 2 days in a month, that would be the worst case scenario.

And so to mitigate the risk of that happening and this turning into a multi-day you know, kind of downward spiral. What I'm going to need to do tomorrow is trade with smaller share size. That way, if it is a red day, maybe because the market is choppy and we don't have any good setups. Well, at least with small share size, I'm not.

You know, digging the whole lot deeper, I'm down 30, 28. Whatever. If I lose 2 000 tomorrow, that's not. that's not gonna make a huge difference, right? That's okay.

it's losing 10, 15, 20, 30. that's where it's gonna start to hurt. So that's within my control to set max share size lower so tomorrow. even if we see great opportunities, you know, First, just build my cushion with small share size.

If I get my cushion built and then can scale up a little bit, maybe I would, but not in the first couple trades. So tomorrow is an important day. You know anytime you have a red day, the next day is important and you can't underestimate how how much the emotional disappointment of frustration from the previous day can and will tend to carry over. So you have to just try to start clearing the slate and putting some distance between you and that big loss.

It kind of takes time to like, mourn and grieve the the loss and the you know the loss of money and and just the I think hit to the your pride or whatever it is that this happened And so you just start putting days between you and that big Red day. And as I was getting started trading in my early career, it felt like the focus often times was continuing to just put as much as many days in between Big Red days as possible and at one point they were happening sometimes multiple times a week and then started to happen maybe once a week. So you know every seven days and then start to separate them out to every two weeks, every three weeks, once a month, every four to six weeks, every eight weeks, every three to four months, every six months, right? And so the more you can separate out those Big Red days, the more profit you can make in the middle. But there's no day trader out there that I've ever met and or that probably ever will exist.

That doesn't every you know, certain period time have a red day that just got away from. you know, just it's the way it goes. So being successful, it's not about not having red days, It's not about not having losses. Certainly, there's things that we can do to try to mitigate them.

But eventually at some point through bad luck or your own mistakes, it'll happen. And so long-term success is having the ability to put those losses aside to get back up on the horse, and um, and and that that's it. Takes time to get good at that, and it's not without practice. So the best traders often are also the best losers.

Because they've lost so many times, they've been able to brush it off quickly and kind of get right back up on the horse. So that's going to be my goal for the rest of the week to try to brush off this loss with a couple of small green days Tuesday, Wednesday, Thursday, and just to kind of start to even out, you know, shake things off and try to get back into the group and hopefully the market will be there on my side to provide some wind at the back. But it's very possible that I'll continue to be feeling like I'm going into a headwind tomorrow. Wednesday Thursday for all I know and whether I was trading with small size or big size if it continues to be a choppy market, it's gonna be hard to make a lot of headway.

So I'll show up every day hoping to see some nice opportunities, but prepared to have to be sitting on the sidelines and much more conservative while I sort of try to just recoup and get grounded and re-center. All right, so we'll get into the full recap here. I hope you guys enjoy it. I appreciate the thumbs up.

Uh, one thumb up for every dollar I lost will make me feel a lot better. So hit that thumbs up and I will see you guys first thing tomorrow morning. I'll be live streaming my watch list uh, right around 8, 45 or 9 a.m Something like that and hopefully we see a nice Gap scanner to wake up to tomorrow morning. All right.

see you guys in the morning. All right. So uh, we're gonna do Red Day recap here. Uh, I think I was read last.

No, I was read. uh. last Tuesday Monday we had the day off for Labor Day. So same as last week starting.

Um, in the Red. Which is, I mean it's It's not a fun way to start the week because you're starting the week. Uh, you know, initially. Um, you know, In In the Red in the Hole.

Now I've got to spend the rest of the week digging myself out. So I've got three thousand dollars of profit here on Tesla Vxrt and that only helps offset the loss on my uh, retirement account. 30 000 on tests on Um Sava, which was I think six independent trades where I just I didn't have one winner on Sava, I didn't have a single winning trade. It was six losers in a row.

Which you know definitely breaks my rule about stopping after three losses. And you know it speaks to frustration setting in and saying, well, I'm not gonna stop because I'm frustrated. I'm just I'm gonna keep going for it. and it shows you how even after you know years of experience it, it's not impossible to fall into that rut of frustration and not wanting to give up.

And then you know a loser starts to turn around. So or get bigger and bigger. So my first trade on Sava uh was right here. So I bought the first one minute candle to make a new high and I actually started on it with 10 000 shares and then uh, went up to 20 000.

So I had 20 000 shares of this for the first candle to make a new high at an average of like I don't know, 70, 69, or 70. And so you can see right here how it made a new high by three cents and then dropped 40 cents. so I was down 8 000. After that first trade, it sold off a little bit more as you can see and I tried to do a bounce down here off of eight.

It popped up to a high of 835, went sideways, flushed lower. After that trade, I was down 12 000.. the next trade on it. Uh, let's see.

I waited, uh, for a little bit more of a sell-off and let's see, where was it? Um, there was that one. All right, it was around. Yeah, so it's down here a little further. So the next trade I tried to do a bounce.

um, off of where was this? Um, it was this one right here. So I got in here, uh, looking for. I thought we were close to the volume, weight, average price, but we hadn't. Uh, bounced off of it yet.

So I tried to start accumulating the position thinking that if it broke over 85 right here, we were going to be lining up for the first five minute candle to make a new high. The high of the last of that last five minute candle was 720. Ah, sorry, 825. And so I was kind of trying to buy that dip right here, thinking that I would add over eight, break of eight, ten eight, fifteen, eight, twenty five, and then a squeeze up to eight fifty and that would be a nice trade.

So I did a ten thousand share starter on it and doubled to twenty thousand shares on this one. and um, again, it flushed down. I stopped out of that, it was down. 15 000 I believe.

At that point it was either 13 or 15 000 on the day. So I was like all right, this is not good and I didn't take any more trades until the bell rang, the bell rings and you know, although well, number one, I'd already had three losses in a row and I was already in the red. Um, but you know I chose to keep trading and that was based on me feeling like I, I mean I just I think I felt frustrated. I was like all right, well I've lost more than I was planning on pre-market but the market hasn't even opened yet and there's certainly going to be more opportunities once the bell rings.

So let's see what happens and maybe I can start to, you know, cut the cut the loss back or minimize the damage a little bit. So the bell rings and uh, you know other stocks that I could have been watching. See the thing is, this morning Sava was the leading gapper and then next one was Immu which was trading sideways at 84. Jill is too cheap Sgms There were some opportunities on it, but the float was a little higher and the price is higher.

Vxrt 108 million share float. You can see I did trade that one over in this account for 900 bucks, but I I just I wasn't totally sure about it. So Sava was the one that I thought would be have the most volume and be the most predictable and the easiest to trade 74 million shares of volume. A lot of volume.

definitely volatile in fact, not easy to trade. So when the bell rang my E-signal charts went down again which was really annoying. So charts went down. I had no charts but I was watching the level two and I had seen that the high here was about 735 but then flushed down to 689..

it then curled back up and as it started to curl back up. I bought right here for the break of 735 or right around there and it rips up to 750. I added at 750 30 000 shares. So I'm going for this kind of big trade through 750 and a squeeze up to eight.

I saw that the halt level was 779 and I thought this one might have the potential if it rips through 750 to hit 779, halt going up and then gap higher up back towards a first five minute candle to make a new high. You know, everything. kind of lining up. Uh, and so 753 was the big breakout spot that would have been the first five minute candle to make a new high.

And then as you can see it flushed really hard and with 30 000 shares I stopped out for a 15 000 loss. and so that was the biggest loss. And just like that you know I went from down 15 to down 30.. So this and that was right there.

So this will be the probably the biggest, uh, negative like on one stock trade that I've ever had. Uh, I've had a couple of bigger losses, but this is basically tied at a twenty seven thousand dollar red day or twenty eight thousand dollar red day with my other top two biggest red days of all time. My biggest are they're all right around the same spot at 28 30 000. So one of them was early in my career, another one was last year, uh, in March of 2019 and now I have this one here.

Um, you know right now. so this is definitely a big step backwards. It feels discouraging. It also feels somewhat self-inflicted because I broke my rules of consecutive red trades.

I also broke my rules after being down 30 000 of continuing to trade. Although I was cautious, I only made back three grand and making back three grand. While that's nice, that does constitute a an additional Um rule break, right? Because I you know I traded past the max loss. So yeah, instead of being down 31, I'm down 28.

But I broke another rule. So you know again, this speaks to one of the struggles that a lot of traders have. Which is you know you have one or two losses which I had pre-market first down seven or whatever, then down 12 and all of a sudden you sort of go off the rails and you're You're frustrated and you start doing you start. You either don't walk away because you don't want to walk away down 12 or 15.

it's pre-market There's still a lot of time to try to recoup some of the loss and so you stick with it. Next thing you know, you're down 20, 25, 28, 30. whatever the case is. In this case I doubled from down 15 to down 30 in one trade with big size.

It was kind of a try to bail out myself trade with 30 000 shares. It wasn't a A really, I mean this setup wasn't a bad setup. It was first candle to make a new high. It was a red to green set up a break of V whap and an anticipation of the first five minute candle to make a new high.

That setup wasn't bad. What was bad was that the stock had already proven that it was not really very trustworthy with two four, five six red candles. Of course, after six red candles, your likelihood of getting a green candle is increasing. Uh, but she ended up having six seven, eight nine.

This is call it ten eleven green red candles in a row, we didn't have the first candle make a new high until right here at 10 10.. So you can't underestimate how weak a stock can be and I'll be thankful that I at least you know, have cut the loss because maybe as a earlier trader, an instinct might have been just to say forget it. I'm not selling this. I'm just going to hold it.

You know I'm I'm refusing to sell and take this loss. I'm just going to hold it and and hope it turns around and that obviously if I had done that would have resulted in a much much bigger loss. So I feel like I'm kind of spinning my wheels a little bit with 35 000 on Thursday and Friday, which was great and then now well down 30 today give or take. So it's like two steps forward.

Two steps back. Three steps forward. Three steps back. I'm having a hard time getting traction and you know I might as well have just been had made 3 000 Thursday and Friday and then lost 3 000 today.

It just happens. I'm trading with bigger size, so the numbers are bigger. Whether it's green or as the case is today, it's it's red. And so that is just the nature of trading with big size.

I don't feel particularly at this moment. I feel frustrated. I'm disappointed. Um, but I'm also able to, I suppose, maintain the this presence of mind that I am still green on the month, which is good.

Um, I've had a terrific year, which is great. And so all things considered, this is probably the equivalent of like a three thousand dollar red day. You know, four years ago or five years ago or something like that, It It's a setback. It's a little discouraging, but on the other hand, two or three good days and it'll be as if it never happened.

It'll be kind of water under the bridge on the one hand, but on the other hand, um, it is. It's always discouraging to have kind of a bigger draw down. So oh, back to my um, Trader View stats. So we were talking about these on Friday and let's see.

I was showing you guys my drawdowns. So let me just pull this up here real quick. Um, okay so all right so this is my draw down. Um so I had to draw down to 23 000 in on the 13th, then back to green, then a draw down of 20 000, then a draw down to 16.

I draw down and a draw down last week I guess of of 12 or 13 or whatever it was. So today's drawdown you know is going to be down at the 30 line, right? So that's actually going to be my second biggest drawdown of the year. And it happened in one day. You know that's not great, but it is what it is.

So what happened here was a series of like a sixteen thousand dollar day. You know, another red day, another red day, another red day. So it's like four, three or four red days in a row. Which is a really bad kind of streak.

Uh, but then you know that ended up opening up into once I kind of cleared the slate. Um, that ended up giving way to a really nice hot streak here. Uh, which has slowed down a little bit in the last three weeks as I've kind of plateaued just near the highs. But we're talking about 3 million bucks.

So 3.2 million dollars? This is on the year, so again to be down 30 grand in one day or 28 000. Big picture is, that's a blip in the in the P L. but it's still discouraging and it would be for anyone. probably regardless of how successful you might be.

And I think what maybe is especially discouraging for me is that because of my strategy, I'm not sure that like on the trade that I lost 15 grand, the potential on that if it broke through 750 was to squeeze up to 775 and maybe a halt up around 779.. or maybe a squeeze straight to eight. Now, the win on that could have been fifteen thousand dollars. If it actually halted and gapped higher.

it could have been a twenty plus thousand dollar winner. So that one the profit loss ratio is okay, but it's kind of uncommon for me to hit like a thirty thousand dollar winner in one single trade and even a fifteen thousand dollar winner in one single trade Right now is getting a little hard to, um, to squeeze out just because the momentum has been a little. Um, I don't know. We just haven't had quite as much momentum in this last couple weeks as we had back in June and July.

So this isn't the best time to have a good size loss because realistically, I don't think I'm gonna make it back. I don't think I'll make it back this week. I mean again, I did have 35 000 on Thursday and Friday I was up 25 000 on Thursday and then I was up 10 000 on Friday. So you know, you never know.

I mean, I might hit a couple five thousand dollar green days Ten thousand dollar a day, maybe a fifteen twenty thousand dollar day, and maybe by the end of the week I will be back. Out of the you know, this dip and back to the highs on the month. But but I'm not going to really set that expectation because I think it's number one. Not maybe the best way to look at things, but also not super realistic for this market because what we have here is a pretty epic failure on this stock.

And in fact, you know again, you have what could have been some really nice opportunities earlier pre-market And so we you know, this broke out really really nicely right here at 8 30 a.m lighter volume but you know, early and went from Eight sorry 725 all the way up to 9 19. and then it just gave all of that back. So it increased in volume and then steady volume on the pullback, high red volume and just continued selling. So you know tomorrow it's like should I get up and sit down here to start trading at Eight A.m So if we have something like this, I can try to catch this first move and not be sitting down after we've already seen because I I didn't sit down till 8 30 or 8 45-ish So like I was sitting down like right here when it was topping out and then trying to buy the first pullback.

It just not because it wouldn't have been a better trade to be in here, but just because I had missed it. It's not uncommon to miss a setup, Even if you're sitting here watching, sometimes you still miss stuff and then you just buy the first pullback. But this pre-market trading has become a little bit more popular this year, and I think it's because when traders start to see opportunities, they haven't wanted to wait. And so all of a sudden you know you're seeing stocks ripping up earlier and earlier pre-market But then oftentimes the charts look like this, where they faded Vxr Oops.

Vxrt was kind of similar in that actually not. well, yeah, you had a pop here and then a pull back and it did come back up a little bit before the bell kndi. Uh, that one just had news, but then sold off. Let's see, I think there was another one I was thinking of.

but um, oh Jill, J-i-l-l So Jill, you know. Yeah, you had this pre-market move, but this was at like five in the morning. You know, start getting up early and early and earlier. Next thing you know, you're waking up at four in the morning to try to catch the I don't know, I just, I'm not sure I think that that's a direction I really want to go in.

I think more often than not, most days we do have opportunities starting at 9 30. but it sets a little bit of precedent when the leading gapper fails as dramatically as this one did. Because naturally anyone who traded it to the long side is going to be red. And I mean not that you couldn't have been green on it, but it would have been kind of hard given this pullback.

And so you know, it made me a little bit more cautious. when I started seeing other things popping up. I was like, um, I don't know. I'm not sure.

You know, I want to wait for extra confirmation. Really? be sure of it before I jump in and so that hesitancy doesn't You know that across the board you're just going to see less follow-through that whole day. So yeah, I think at this point in terms of setting a game plan for tomorrow, probably the worst thing that could happen tomorrow would be that I sit down and lose another fifteen thousand or twenty thousand, right? Because then all of a sudden and again, it's It's not to say that I couldn't afford it, given the fact that I'm up three point two million on the year. and that's that's the problem because I have a lot of profit.

I could I could say tomorrow, Oh, I'm just going to trade the exact same as you know, as usual, same as what I did today, but hope that the market is better and maybe tomorrow I'll be up. you know, 10 or 15 000. but just as easily I could potentially be down another 10 or 15 000. Or let's say I start to get frustrated.

It starts to snowball and I'm down 15 20 And I'm knowing in my head man, now you're down 50 000. You're sitting on the biggest drawdown that you've ever had, and that starts to become more of an issue. So unfortunately, days like today, they are discouraging for a couple reasons. Number one, it's a big loss, but number two, because of this big loss, it's going to force me tomorrow to trade with smaller size because I can't afford the risk of having another, uh, big drawdown day because then my net draw down in the hole is getting deeper.

So even though tomorrow we might see an awesome opportunity until I have a profit cushion with small size, I can't take twenty thousand shares on my first trade. I probably shouldn't take ten thousand. I should probably be taking 2500 or maybe four 000 at most and try to make 800 or 1200 and then slowly scale up if we're having a good day. And that may mean that I missed some opportunities tomorrow to potentially make some really good profit because I'm uh, you know, I'm having to be a little bit on the defensive side.

I'm trying to think of a good, I don't know a good analogy for it, but um, it's It's just one of those situations where if I'd had a nice profit today, then tomorrow I could afford to take a little risk and try to roll some of that momentum forward to the next trade. But right now I just have to try to start catching some momentum again. I just have to start kind of moving back in the right direction and I'm not going to be able to afford to take a lot of risk and that might mean that on a really great opportunity. I feel disappointed again tomorrow that I wasn't able to make as much as I could have had.

I had that profit cushion and been able to afford more risk and and so on and so forth so that kind of can be a perpetuating state where after one big loss, you get conservative and then you which is the right thing to do. It's the right thing to be conservative because if after one big loss you get more aggressive then what's usually gonna happen is then tomorrow I have a sixty thousand dollar loss and then to make myself green after ninety thousand red. The next day I go crazy aggressive and I'm down 100 grand and then over the course of three days I've given back 250 000 right? So that would be what would happen if I continue to be more and more and more aggressive and the market just you know, wasn't on my side. If I go more conservative than after a big red day, the next day I'm on the defense.

I'm being a little bit more cautious conservative and I miss the opportunity to make a lot of money on on what could have been. You know, a great trade. Because I'm trading with small size I feel a little frustration and then you know. Day three I come in and I'm still trying to dig my way out of the hole.

and you know again on day two, day one, I lost thirty. Day two, Let's say I made back four thousand. You know? So it's like I'm still down 26. Day three, I still have to be on the defense.

I might feel a little frustration from Monday and Tuesday and so I continue to kind of be under capitalizing on opportunities, but knowing that it's the right thing to do so maybe I make a couple thousand and it's just that feeling of had I had had three days ago, I not made that one mistake, I'd be in such a different place now so that that one mistake can hurt you for days and days even weeks into the future as you are in the process of trying to slowly rebound without making the loss and the draw down bigger and bigger. It puts you in a place where you're not able to be aggressive and so comparatively to someone who made better decisions on you know, this one day they're then positioned to be even more aggressive on day two and more aggressive on day three and more aggressive on day four. And then that can all sort of, um, you know, uh, snowball positively into really big green weeks and big green months. And that's I think the times that it sometimes feels frustrating for a beginner trader.

That man, it's the traders that are already making money that are just killing it day after day after day after day. It's because they've got the momentum going for them so well that they can afford to take a risk. They can have small drawdowns but immediately bounce back from them, and it's the traders that are getting started. Or you know, even the trader like myself who just has like a kind of bad day for a variety of reasons that then has to be on this like, you know, kind of traitor rehab type of process of being really conservative and frustrated you're seeing other people make money, you're not doing as well and you're just kind of half sort of behind the bottle on each trade and it just feels like you're spinning your wheels while someone else in the same exact market is doing really well.

And that's part of trading. and it's a frustrating component. and it's something that we all have to be able to go through and get through because there's just there's no other way around it. There's no trader out there that doesn't occasionally have a big drawdown and another trader with my exact same P L, but a different um, you know disposition about Um trading.

might tomorrow go ahead and double down to 50 60, 000 shares and maybe it works for them and they have a 100 000 green day. Or maybe it doesn't and they're a trader that's going to be down 150 000 on the day and they're going to have even bigger swings in the P L and even bigger uh drawdowns. I just don't handle the drawdowns as well as maybe I'd like to. Um, and so that puts me in a position where as soon as I start losing, I start getting upset with myself.

I start getting frustrated. And I know that because those emotions can can influence trading that I have to step back on my share size. Otherwise, next thing I know, I'm going to be holding. you know, 50 000 shares of something.

It can just spiral really fast so I don't know. I. I. I think that this, I sort of knew this was bound to happen.

Obviously, I mean, just based on statistics. I've had a really great hot streak for the last five or six months and it was bound to happen that I'd have a few bigger red days here and there, and I was trying to tell myself in advance during the hot streak. Listen, man, you're up 200 000 on the day, 225 000 on the day, 200 whatever. Remember these days six months from now, when you're in a drawdown and you're in a slump because you're the same trader.

Remember, you know? tell yourself like so today, Ross, you're the same trader that made two hundred thousand dollars in one day earlier this year, the same trader that made whatever it is. And I'm sure every one of you could say that because trading even losing is not in the absence of having green trades. So you're still the trader who made these profits and still the trader who knows how to read level two and can trade really well. But uh, you've got to, you know, ride the the trend and the waves of the market and sometimes the market will be totally on your side and the wind is at your back and sometimes you're going into a headwind and it feels like no matter how long you sit here, how many stocks you pull up on the scanner, you can't make any progress.

And so today you know a certain point. I just said, you know what I'm giving up. This is our entire momentum scanner today. So starting at 9 30 you can see, um, nothing really hit multiple times in a row and was sustained.

Sgms from 26 to 28 wasn't bad. Ctmx hit for a second and was gone. Moxc hit for a second, was gone, pop and fade, pop and fade. so I could just pull these up for you for a second just so you kind of see what they looked like.

So going back to the beginning. so sava we already looked at Zyme. Popped for a second would have been hard to predict based on this very light pre-market action and almost definitely has had large spreads. So let's see Zyme.

Um, you know I. I don't know. I wouldn't have traded that one, most likely Chnr. So this one popped up pre-market sold off, popped at the bell and sold off Sgms.

This one actually was nice, but I didn't expect it and there was really no way to jump on it. After it had gone, Cgix hit the scanners here for one quick second, popped up back down, no volume, no interest. Moxc popped up for a second, came back down Eq same story popping up for a second light volume stocks. Ctmx popped up on the scanner a few times, but none of these moves are really sustained.

Ahpi, a former momentum stock popped up for a second, faded Spaq. Again, a little bit of opportunity here, but compared to some of the charts that we were looking at um, you know, in recent weeks and months, all of this feels very subdued. It's just it's like a quick pop pullback and then five cent breakout. This is just not easy to work with.

So what? I maybe wish I had done today. In hindsight, I mean I guess I would say not have been so aggressive on my first trade, but I underestimated uh, sava a little bit in terms of how much it would keep dropping. It looked right here. it looked really strong and on this pullback I was like that's okay, we're still bullish and then it just really rolled over so that's gonna happen.

And yeah, Tesla. I did take a quick trade on this one which was kind of risky, but I was, um, it was in this area here, um, looking for the break over 400 which it didn't do at the time, but it does look like it's coming up to it. Now the thing is, I haven't had a super good track record on trading Tesla. Um, you can see as it comes back up here.

I don't know if it's going to break through 400. I like that idea, but I think that it's I think it's probably going to be. It's probably going to be sellers right under this critical level. So big.

Look at that. Okay, so no that's important. See, this is. so it broke and then was back below.

Look at the bid. The bid down here is 99.25 So initially that's it's not gonna. It needs to hold the bid right here. needs to hold above 400..

So a lot of churn there. And of course that's why Tesla's a very hard stock to day trade it. There's a lot of churn you know and it it can be very frustrating. So there were a stack of sellers at 400.

it ripped through it. It popped up to 482 I guess for a split second and then right back down. So 400, 400 and 82 cents would be the the spot to you'd want to see break. But but buying a breakout on this is impossible in the sense that you've got big spreads.

it can drop two dollars a share like that and your risk is is just often very high compared to your profit potential. So it really wasn't a great trade. The one that I took it was a winner but really wasn't worth it. It's not like I would have held it this whole pullback down to 91 to be able to get this break out here.

So anyways, um yeah, so I would say going into tomorrow. Unfortunately, I'm gonna have to scale back share size. It's unfortunate because it might mean that I under capitalize on, um, some nice opportunities potentially, but if we end up having another, um, another choppy day, it'll help me minimize any additional drawdown. If I start to go red right away, I'm gonna have to really quickly, just ease off and say no, I better just you know, unwind this and let it go.

um and not try to. It's easier to jump right out with smaller share size certainly than with big share size. So um, you know we'll see. But I I would say the market right now has been kind.

of. Um, it was cold the last kind of two weeks, but then it was warmer on Thursday and Friday. Today is cold again. so it seems like we're starting to get into a little bit of a hot cold cycle where maybe one day will be hot and the next day's cold.

One day's hot, next day is cold and that can be a little bit. Uh, a little tricky because you sort of come in each day. is it's going to be a day where nothing is happening like today? or is this going to be a good day? So we'll we'll see. But um, anyways, that's it for me.

Kind of a long recap, but I think it's good to break down the red day recaps maybe with more detail than the the green days because these are the days certainly for me that are, um, a little bit more challenging and but also probably more challenging for um, you know, for any for any trader. So just you know, again, those who are just getting started. I hope you don't get too discouraged seeing you know a couple choppy days or weeks in the market it's at ebb and flow. This is the way it has always been.

It's the way it'll always be. So you know, take the winners when they come, try to ease off the throttle when it feels choppy. Study, study study. and uh, you know, just also remember that we all make mistakes and we all will be able to have opportunities to look back and say I would have done this differently.

I wish I hadn't traded this day, but uh, that's part of trading. so you got to be able to forgive yourself, move forward and get really good at pressing that reset button and kind of getting back on the horse. And you know, starting to dig your way out of a hole because probably you know half of your beginning trading career is going to be in that mentality of digging myself out of a hole. You know, I had a red day.

Now I've gotta get myself back to green without making it worse, so that's gonna be an important skill for you guys to learn. So anyways, that's it for me. Um, I'm gonna shut it down. I don't even want to look at charts.

I don't want to get Fomo and jump into Tesla 405 or whatever. Nice break of 400 I guess. A little choppy initially, but it did get through so I'll be back at it tomorrow. Hopefully we see some better opportunities on the Gap scanner and maybe a better date tomorrow than today.

I mean, I, I really hope to Tomorrow is better than today. I think it will be as long as I can stick with the game plan of smaller share size. All right, So that's it for me. I'll see you guys first thing tomorrow morning.

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