Well, that's happening everybody. All right? Well here we are Friday finishing the week in the red Oh lost $3,000 today. two trades right out of the gates. within the first two minutes I was down three grand.

First trade was on Msy ass. it was a Gap and Go trade. Great catalyst of a share buyback which is so rare among small cap companies as I started to see some volume come in I jumped in as soon as I got in I realized I bought from a hidden cellar. there was like an iceberg order.

it popped up seven or eight cents I started unwinding in a position lost 260 bucks not the end of the world and then I jumped right in to FF HL which was also on her Gap scanner and squeezing up. What I saw in that that I liked was it was either 15 or maybe a 19,000 share bid on sitting on the bid. so a big buyer sitting right there. So I saw that it was like okay, that's kind of like a backstop.

I jump in. it pops up maybe 10 cents towards high a day and then it drops 50 cents, drops all the way to 60 and I'm sitting there holding six thousand shares and it drops to 260. It pops back up to 270 and it drops to 262 or 258. So I was like all right, well that's it.

writing's on the wall. Got a bailout so down $3,000 150 seventh day of the year. So you know it's like this: This week has been read on: Tuesday green on Wednesday and Thursday May 2500 on Wednesday 2000 yesterday and then last three grand today, you know? So it's like a couple steps forward, couple steps back, couple steps for a couple steps back. so I lost 1,900 on Tuesday So I'm down $1,000 on the week made eight thousand last made eight thousand two weeks ago.

Four thousand last week down a thousand this week. You know what's going to come next week? down 5,000 down 8000 I can't let that happen I've got to keep the stops tight. So one of the things today that a couple traders mentioned they're like, you know you're it's it's 9:32 and you're down three grand. Are you really gonna stop training I said yeah I really am gonna stop trading because here's the deal.

if I keep trading now you know and I take another trade and I lose another two thousand dollars that I may be down five grand you know and it's maybe I'll see something I think it's a great opportunity but if I keep losing the the red days unless I just have winners, the right days gonna get bigger and bigger and bigger and I dragged a look back on my calendar. you know the one I Write down here the one on traitor View and be able to look back and say okay, you know my biggest read days are to $3,000 maybe a $4,000 day. It gets away from me here there, but that's my cap. Those are the biggest rent days.

And then when I look at the green days: $13,000 green Days $6,700 green day $4,700 green Day $2,000 green day you know $8,000 green date. That's what I want to see $29,000 green day Big back-to-back green days. So then that puts the red dates in perspective. $14,000 green day and then the red days 1,500 bucks 1,200 bucks 1,900 bucks.

You know that to me is managing risk, capping the losses even though I'd love to. You know, have been able to bounce back and finish in the green today I didn't want to risk going further into the red. Save God draw that line in the sand when you cross it. That's it.

You're done. So follow the rules today. The rules of August right here. you know: tight stops, well kept, the stop as tight as I could on that one.

Three red trades you're done. Only had two red trades $2,000 max loss. Follow the rules and then shut off your monitor after the recap so that one I certainly will do. I Kept watching the market even after 932 because I was it was just so early I just kept watching it.

Some days I would leave the office and I'm out and I'm done I'm like nope, that's it I'm out of here. but today I kept watching and and that was fine. You know I wasn't tempted to take any more trades and I couldn't anyways without picking up the phone and calling my broker because I actually have a max loss on my account if I'm down more than two grand I cannot take another trade so that's good. not the way I wanted to finish the week, but this is odd.

You know it's one step forward. one step back. I'm grinding and you know that's where my equity curve goes up, up up and then goes sideways right now. down a thousand dollars for a month.

So in 15 or 20 days of trading, whatever it is, I've just been going like this, so going sideways is better than going down right. So going sideways, getting ready for the next leg up hopefully comes soon. Alright, so that's it for me. I Hope you guys enjoyed this video.

Give me a thumbs up if you enjoy it. Red Day recaps are not fun to do, but we do them every time and comment. If you have questions, put them below. I'll come back through an answer this weekend.

All right so you guys on. Monday Alright everyone, so it's time for our midday market recap and here we are at the end of another week it is. August and it is a Grind. You know this has been there's been difficult month for me.

I Mean there's just no doubt about it, it's been the hardest month of the year besides February which February I even cut it out I Keep looking at it like I remember cutting it out of my calendar and and burning the month because I was read I think eight days and I only traded 15 days so it was a it was just a bad month. my accuracy was horrible and it was so strange because I made a hundred and seventeen thousand dollars in January and I came off the best month ever and had a red month so you know I was just being really aggressive I was you know trying to swing for the fences on every trade and I kept getting stopped out I was able to turn things around you know as you guys know, the rest of the spring was really solid, had some great profits so you know turn things around which is great I came into the summer feeling pretty good May I think $36,000 in June another 50,000 last month in July so you know starting to open up a little bit thinking all right August is gonna be great first week of August I lose $12,000 feel like I'm starting August the same as I started February and you know 2nd 2nd week of the month I made back $8,000 so I was still down 4 grand 3rd week of the month I'm a third full week of the month I made back 4,000 so was breakeven and this month I am this week I'm down a thousand bucks so I'm back to down one thousand on the month which is obviously not where I am usually wanting to be coming into the last week of the month, but it is what it is. You know one of the students mentioned earlier this week in the chatroom he said Russ you know or he didn't say it to me. he was saying he was reminding himself or he was giving someone else words of encouragement.

You know, if you have a little bit of a hard time when you start trading with real money, remind yourself that you're You're the same trader who made money in the Sim for the last you know, three months or whatever the case may be for the last month. you know, Just as that kind of pep talk like, even though you're losing money right now, you're the same trader who's you know who's been making money. Um, I'm just gonna remember guys not to share personal info in the main chat room. So I'm still I'm the same trader who made you know 100k in January I'm the same trader who took $583 turned into $100,000 bla bla bla bla.

But you know what it feels like is that you're only as good as your last trade. You're only as good as your last Green Day and I'm sure you know that's what Tom Brady was saying when they lost the at the Superbowl and you missed that. that super easy catch that you know and you think almost anyone could have could have caught people are saying Tom you know you've got all these you know Super Bowl wins under your belt. It's alright, you're still that same guy and and it's like yeah, okay but you know and maybe that that softens the blow a little bit, but you still feel that that kind of yeah, you're only as good as your last trade and you guys know that I like to watch The Deadliest Catch on Discovery and one of the things that one of those captains said at the end of the season is that you're only as good as your last season and you know with that type of work.

I'm sure that that feels very true because if you have a bad season where it takes you forever to catch your total's to hit to get your quota. you know it. That means less money for you, less money for your crew. you know, blah blah blah blah it feels like I'm sure it feels like you're you've got that pressure on you.

You know it doesn't matter that I had a good season you know two years ago I need to do a good job every single year. back to back to back to back so you know for me it there's certainly some of that feeling. but I Top talked about a million times. but just that feeling of you know when you when you start to have a little bit of slow patch that you you know you're only as good as your last trade.

So if you have - how many back-to-back red months can you have before you know you really start to freak out I Guess the good thing for me is that since I've now been through this, you know these kind of hot streaks and cold streaks so many times. I'm kind of at a point where I'm not getting really that stress that I'm not I'm really not stressed out that I'm red here in August or the you know, I'm down thousand bucks. whatever I'm not that stressed out because I'm kind of just like you know what? Yeah, I am red. but I'm not worried that oh no, something's happening.

My strategy: I'm not gonna be able to pay my bills anymore I'm not worried about that because I've had this happen so many times at this point that I know that I always come out on the other side. So these are my stats here for the month thus far. So this was the first day of the month. lost 9 grand made back for lost 4 or 5, you know? So this is kind of where I've been.

Today's gonna be another red day. I'm just basically down to like here, 5,000 is kind of that line. they're trying to keep losses not lower than that. But what you'll see from this month is that the market has not been giving big winners.

So here's the problem. The average winning trade Only six hundred and forty dollars, whereas the average loser is 1,100 Now, this is not an abnormally large average loser. If we look at my average losses for the entire year, you'll see that my average losses are about that. So I take pretty much the same amount of risk on every trade, so that's good.

I Didn't like blow out my max loss I'm not risking 5,000 per trade. My average losers aren't higher. The problem is that my average winners are lower. So how do you? you know that that's kind of a challenge.

How do you acclimate to average winners? Being half the size is average. you know, percentage of success. It's not that different. 67 percent.

The problem is I'm not getting the big wins and so that's the indicator of a choppy market. The only metric here that's different. The only metric here that's different is the average winners. and you can't control how big winners are gonna be.

If you don't have stocks or squeezing up, you know, 50, 60, 100 percent, you're not gonna have these really big winners saying, you know we've had. We've had some a couple of nice trades, but in general a lot of the trades have been. These kind of small wins ends up only being 200 bucks, 300 bucks, you know, maybe a thousand and then another round of small ones. So this is what I'm dealing with right now.

The profit loss ratio is is inverted. It's negative. It's actually almost exactly one to two versus what we aim for of at least one to one or two to one. But you can't control how big the winners are gonna be.

The only thing you can do is control the losses and know that you will come out. you know, on the other side of this streak. Whatever it is red streak, you know, a more disciplined trader for following the rules for keeping your accuracy about the same for not you know, getting super super aggressive, etc. etc.

I'm trying to find my let's see overview detailed I Always every single time I Look for it I struggle to find it. so let's see win-loss expectation. So this right here is my this is my equity curve in the last two years since I started with 583 dollars in my account. Not to harp on on the amount, but $583 this has been the equity curve.

So I had a period I Wish they would let you blow it up a little bit more without me having to zoom into my chart like this. But in any case, and you know, as you guys know, my first few days it was making $100 a day. 150 a day. Like these were the first couple days of that challenge, it was.

These winds were tiny. It's hard to kind of get the mouse there. So $156 finally started to open up, but then during the summer of 2017, it was kind of slow. I was kind of like grinding here I was making money but not making a lot of money I only made like thirty thousand dollars across three months of trading and then all of a sudden things really opened up in the fall October and November things started to peak up, made this really nice push, had like three weeks of sideways and then things opened up again big time.

from December all the way through the end of January January being the best month I've ever had a trading and then things were sideways in February I lost about $10,000 so I didn't go super red. but I lost some money and then things started to open up. a little setback. things opened up again.

You know, a little setback opened up again. a little sideways. opened up again for a really nice month here of June and July and now this is August sideways. and what I will just say is that it's always better to go sideways and even go down slightly than to have Steve draw downs.

You know that there are traders out there, and who have you know these types of moves where it drops down big-time then maybe it opens back up and then it drops away down again. And for me being a trader who's doing this for income I've always gone for consistency. It doesn't mean that I won't have red days because of course I will. but it means that generally I cap my losses I know when to throw in the towel and I try to walk away quickly So you know this.

My peak drawdown has been losing a total of $22,000 that was in in May So that was right here. That was the bottom of my drawdown right there. and that's the biggest drawdown I've had since creating this account. So drawing down from 600,000 from sorry six hundred, twenty four thousand to six hundred and two thousand I mean I'm not sure what percentage that is, but it's not even.

it's like a couple percent. That's a really small drawdown. It's let's see 10 percent to be 60 grand, 35 percent would be 30 grand. So it's like a four percent drawdown on my account.

and then you know you can see here moving back up. So this is what's important. You know here I lost about 12,000 in early August I've gotten it back, you know. had a couple dips here, but nothing nothing serious.

I'd like to try to keep the draw down to maybe a little bit lower going down 20,000 is it feels disappointing to go down that much so you know, whatever. right now I'm kind of flat and I'm just hoping that things open up because this is the line that I'm really watching. $583 2 1 million dollars I was hoping to hit that by December so you know well by December 31st by the end of the year, but I'm not sure if that's gonna happen. You know we'll kind of see if I have to go like this a little longer and then I break through in February or whatever.

That's fine. So the trades today really not a lot to show n Sys and F F HL N Sys was on the Gap scanner this morning so jumped basically was on the Gap scanner with an interesting headline of a share buyback which is very rare among small cab companies, but a share buyback so its gapping up has a nice pre market high of 470. out of the gates it starts to pop up here. you see that green candle as it squeezes from a low for 13 and pops up.

So I jumped in at 4:30 and as soon as I got in I knew I was buying from a hidden cellar because I was buying six thousand shares and it was showing like two shares on the ask or something like that and it it wasn't moving so that seller was not moving. So that's how I knew I bought into a hidden cellar and right away I tried to Wein the position trying to sell half at 36, half at 30, hitting the bid when I saw a good bid and reducing my risk. but I ended up selling the rest of it down at 410. So I lost 260 bucks on that trade.

but that's not that big of a deal. That's pretty good risk management to be able to get in, notice the hidden seller, and unwind the position. I was prepared to add over 450 if it opened up, but it was kind of like stalling out right there. So then Ffh L was also on the scans right here gapping up 20% I wasn't super into it I really wasn't I didn't think a lot of it, but right out of the the gates the first candle it starts to squeeze up hits a high at 3:14 it pulls back as it came back over 3.

I was like okay I'll get in a 3:05 I'm anticipating the break of 3:15 and thinking over there, we've got to move up towards 3:20 in the pre-market highs. so I jump in at 3:00 303, and 304. it pops up for a second to 3 10 and 10 seconds later it's at 260 And that's always really hard to control your risk when a stock suddenly drops 40 cents. so it drops 40 cents and then I end up stopping out of 258.

There just really wasn't a lot I could do I hit a low of 255. Now it did pop up here and to 281, that's 30 cents on six thousand shares. That's 1,800 bucks. So I could have I could have held.

but at that point I was starting to get worried it might get halted on circuit-breaker going down because it's just dropped. went from 310 to 250 and you know if you don't cut it it when it breaks to 60 then where do you cut it and so on. that one I was just like yeah this this doesn't look good I think I got to get out. In hindsight, maybe I could have held back up into the 70s or 80s but I just cut it and so with that down 3 grand and the first two minutes of trading and that was disappointing GEVO I saw a nut GEVO Gern I saw this one squeezing up, didn't take a trade on it, couldn't because I'm below my max loss.

it would be FOMO to trade it. but FOMO and revenge trading and breaking rules which I can't do but I saw right here under five consolidation there was like a seventy thousand Cher seller sitting at five and as I watched it go 70, 60, 50, 40, 30, 12, 11, 10 you know and then it it pops I was tempt I was like ooh that looks interesting, pops up to a high of 25, pulls back, nice 1-minute micro pullback here and then it ends up going up to a high of 580 which is really surprising for a stock with a float of a hundred and let's see 59 million shares. But putting a really nice move for me. one of the things that's hard with that price range is that and it's hard to read the tape because the the orders are going through so fast it's just really hard to see what's going on.

so on that one you know I don't know if I would have traded it, but in any case, I followed the rules today and so even though I've got a red day, I get a pat on the back for following the rules and not giving in to FOMO not trading past my max loss and just you know it is what it is. It's a red day, but when you can cap all of your red days that you've ever had at a certain amount, that's when you're really doing something something good. and obviously on the first day of the month, I still had on well I still had a $5,000 max loss and I was down 4500 bucks and I took trade number four or whatever was and just like that I lost. you know, another $5,000 So it's really frustrating when when that happens and it's it's FOMO It's the emotions that that we all deal with from time to time.

So this is now my sixth red day of the month, you know. I've got more red days here than I'd like. June was solid July was pretty good May and April were in gray I had a kind of red streak here at the end of April carried in the beginning of May February was awful but January March were good and really all this will be was another red day in a just a sea of trades. you know I mean it's just like this is just there's always gonna be a little clusters here and there.

a little cluster here. you know, a little bit here, but that's just the way it is October you know this is rare to have that kind of. That was nice, but in the whole month we can just look at the month of October real quick and it's not like I killed it 31 2017 It was a good month, but it wasn't like the best month of my career. Detailed: I made net $35,000 80% accuracy which was good but the average winner is 800 average losers 800 700 you know I wasn't pushing it I wasn't being as aggressive so you know I if I'm gonna be aggressive I might have a month like where I make 70 but I do have a couple of red days and I think that's ok.

it's ok to fall down as long as you know you get back up and keep keep working it. So anyways, that's it for me. Red Day recap but we'll be back at it first thing on Monday Hope you guys have a great weekend students! We've got class starting in about an hour at noon time, so we'll be continuing here with the day trade course. Chapter 9.

All right! I'll see you guys in class in an hour. Everyone else I'll see you first thing tomorrow morning Monday morning if you're still watching, you must have really enjoyed that video. So why not subscribe and get email alerts any time? I upload new content. Remember when you subscribe, you become a member of the Warrior Trading Family.