2023 is in the books and I finished with over $300,000 in net profit from day trading. In this episode, I'm going to break down for you where that profit came from time of day, day of the week, month of the year, but also the individual stocks. What stocks gave me my biggest winners and which ones gave me my biggest losers as I analyze my data I'm going to share with you the four steps that I followed in 2023 that allowed me to make over $300,000 and I'm I'm going to share with you my goals for 2024 now I Have to say as always, this is a disclaimer: my results are not typical I've been trading for a long time. In fact, there's a picture of me in my new book how to Day Trade the plain Truth uh from when I was Ju, this was in Middle School which is when I uh First really got introduced to the stock market a semester where we set up uh, pretend trading accounts with a partner and began investing int stocks during the 1990s.

That was my beginning more than 20 years ago and this book highlights the guard rails that I Implement in my trading. Uh, we'll talk about some of those in today's episode right here. But more most importantly, I want you to understand that I have a lot of experience, a tremendous amount of intuition and that's what allows me to make as much money as I make. My hope is that you can piggyback off of my educated intuition by being side by side with me each morning when I'm broadcasting and trading for members at Warrior trading but also just by tuning in to an episode like this.

You can learn my system of how I analyze my own trading data because something that you probably know I shared it with readers of the book was that one of my turning points was a big red day and what I did on that red day changed the trajectory of my career. What I did was I analyzed all of my historical data that I had up till that point to try to figure out and uncover what was working for me and what wasn't and I actually found buried in all of that data some really critical lessons I implemented them and that was my turning point. So in today's episode as I go through my analytics and my metrics and give you my annual report for 2023 I Hope this is an opportunity where you can um, see my process and do this for yourself as you review your own uh, trades your own trading history. Okay, so let's go ahead and jump in.

Well you know what. Hold on before we do this. The broker statements. Where are the broker statements? Show me the broker statements I Had someone just on YouTube the other day saying Ross you never post your broker statements that is incorrect.

That is incorrect. You can find my broker statements on my website. In fact, on my website you will see broker statements from 2017: 18, 19, 20, 21, 22, 23, and 24 will be coming February 1st when we get our first Uh January statement. So you can always find this at the footer of of my website right here.

This has been here for forever now. The reason I started with 2017 was because on January 1st, 2017, I funded a small account with $583 15 and from that point forward I have only been trading with the profits from that account. That account has now grown to over $10 million in profit. So as of December 2023, the last trading day, which was yesterday I was at 10, 725,000 in profit.

And so my 2023 broker statements are right here. You can see all of them. and for those of you who are super skeptical, you could also, uh, click right here at the top and you could see the audit. An independent thirdparty accountant audited all of my trading records and substantiated that I did in fact turn $583 starting balance into over $10 million.

Now these audits are updated annually. So this is as of Uh 1231 2022, so all of 2023 will get, um, added to this uh in the coming months. Okay, so now that you know beyond a shadow of a doubt that although my gains are not typical, they are real, let's go ahead and start diving into the annual report. Okay, so high level I Finished with 36548 41 in 2023.

How did I do it? I Did it by following these four steps. Step number one: Risk management. I'm not going to full screen this because we're going to jump back and forth from the slides to the actual analytics, the metrics, and I might show you some charts and we're going. Definitely going to do some whiteboard.

Step number one is risk management. We know that trading is risky I Say it every time. I've been saying it for forever, so this is nothing new. We know that trading is risky.

However, we know that there are people that obviously are very successful trading I'm one of them. but there's many people that are very successful and the people who are successful are doing something different ly and what they're doing is helping them reduce their risk. So they approach trading from a little bit of a different perspective than the rest of the people. They approach trading, understanding that there is risk and thinking about risk first and profit second.

What I like to say is that a gambler thinks about profit. They're chasing the big win, the thrill, the adrenaline rush of the big win. But a Trader is thinking about risk now in the stock market. If you choose to gamble, you're welcome to gamble.

You can throw your money out in the market, You can chase the wins, You can chase the adrenaline rush and you'll probably lose money as most beginner. Traders Do most Traders don't make money most Traders are not following a system. most Traders don't have discipline. most Traders don't understand how to manage risk.

Okay, so when we're talking about how to manage risk the way I look at it and this is a little bit different. Every everyone I suppose is different I look at it as my real risk is the difference between my entry price and my exit price. So if I buy a stock at $3 what's my profit Target Well, based on a target of a 2:1 risk to reward ratio, if I buy at $3 I want to risk a dollar to make $2 So I I suppose in theory I could set a stop at $2 and I could set a profit Target of $5 but that that would be very, very large. um, profit targets and stop losses for this type of stock.

So rather than using actually $2 and $1 let's do something a little simpler. Let's say um, we could do minus 5% and plus 10% So plus 30 cents would be a profit Target and minus 15 cents would be a stop loss. So then when I'm thinking about risk, if I'm going to buy 1,000 shares of this stock right here at $3 how much am I risking am I risking $3,000 The answer to me is no I'm risk risking $150 My risk is a difference between my entry and my Max loss. Now some people will say on a trade like this where I actually make the 10% and make $300 they'll say Ross you were just risking $3,000 bucks to make $300 It's a bad risk reward ratio and I say well, that comes from a misconception about risk I'm not risking 3,000 cuz I'm not willing to let the whole position go to zero.

However, I will acknowledge that it does require $3,000 of buying power to be able to take this trade. So yes, I am putting $33,000 on the line to buy a th000 shares at $3 But my profit Target is 10% which is a $300 profit and my stop loss is 15 is 5% which is $150 So this right here would be a terrific trade. Now, if you can take trades with that type of profit to loss ratio, you only need to be right 33% of the time right here in order to break even I didn't mean to cross that out. 33% would be your break even point if you can maintain the 2 to1 profit to loss ratio.

So here's uh, a sad truth. when I was getting started: I had a inverted profit loss ratio of one to two. My average winners were a dollar, My average losers were $2 and actually the way I thought about it was cents per share. But it doesn't matter.

The Rtio was still negative. it was. it was inverted. So I was losing.

Uh, $2 for every dollar I Was making? Well, that's not sustainable. My accuracy was like 55% Well, if we look at our metrics here on this Uh sheet, what you'll see is that if you have a negative profit loss ratio where you lose $2 and you make only a dollar, you'd have to be right 67% of the time just to break even. That's your break even point. And now you've effectively set the bar so high you are destined to fail.

So the problem is I Have met so many beginner traders who trade and they don't even know what their profit loss ratio is. they have no idea what it is. Okay, so let's first of all, let's take a look at my profit loss ratio and I'll admit it's not. It's not as good this year as I was hoping it would be.

It came I came up a little short. This is my profit loss ratio for this year. My average winners are $538 my average losers are 6113. I have a slightly negative profit loss ratio so it's not even quite one: one even though on my trades I aim for 2: one at the end of the day I came up short I aim for two to one.

but not all trades re realize that full potential which indicates that maybe some of my trades I had higher expectations for what the stock was going to do than what it was actually able to do. and I have to start to adjust my expectations a little bit. I Think that is telling of being in the second year of a bare Market This was a very difficult year for a lot of Traders a lot of Traders had slower years, didn't make as much money as they' made in previous years. We were in second year of a bar Market We were dealing with a banking collapse at the beginning of the year I Know it's been several months now, but Silicon Valley Bank I mean you know first rep was the first Republic There there were four or five banks that that went under.

This was pretty serious. It was scary. We were wondering if we were going into another 208 financial crisis and then we had some reprieve. but not too much because the Federal Reserve is is still jacking up interest rates at a rate unprecedented and that's creating tightening economic conditions.

So the markets yes, the market overall rallied thanks to some large tech stocks which sort of you know, led the way. but for most active Traders this year was pretty tough. So I think I did spend a lot of the Year trading thinking oh, this stock has a potential you know to go from $3 to 350 but they kept coming up short or even from 3 to 330 and they still kept coming up short. So the net result is that my profit loss ratio slightly negative and my accuracy also declined a little bit.

I've been I've been averaging about 69% so I declined to just under 65% That's a little disappointing. Um I mean I'm not going to beat myself up too much, but I'm going to be critical because the point of being critical is that I want to be a better Trader Ultimately, no matter how much money you make, you can make 30 million. You can make any amount of money. You could always look at your metrics and say could have been a little better, could have been a little better and that's kind of the fun of trading.

It's a puzzle and if you can solve that puzzle, you could do it a little bit better. You'll make more money, so there's some real motivation to trying to do better. Okay, so profit loss ratio for me came up uh, slightly negative and accuracy fortunately, 65% nearly rounding up uh was enough for me to make $300,000 a profit. So I was in the the profitable um, sort of um section here.

If for instance, my accuracy had been 40% I would have lost money this year if my profit loss ratio had been minus $2,000 for average losers. Even with 64% accuracy, I probably still would have lost money. So profitability ultimately does come down to sort of a combin of accuracy and profit loss ratio. and I'll actually tell you that I think you can sort of you? You could, you could.

strive for one number to be better than the others. For instance, there are traders who trade with really high levels of accuracy. Some of those Traders I consider them to be a little bit stubborn because they do not cut their losses. They'll keep averaging down and adding and adding and adding.

but 95% of time the trade turns around and works. So they've got great accuracy, but that 5% of the time it doesn't work. They have huge losses and the result is their profit loss ratio is terrible. So they've got great accuracy, but bad profit loss ratio.

And on the other hand, you could have someone with a great profit loss ratio like 3:1 4:1 or 5 to1. but their accuracy is low and what's happening there is when they have a small winner, they're not taking it off the table. they're waiting for it to get to the 2 to1, 3 to1, 4 to1, 5 to1 before they start taking it off table. So they end up with a lot of winners.

They're green, but end up coming back down. So yes, there is a bit of a trade-off between profit loss ratio and accuracy. Here's my feeling on it and this is my personal two cents. You should of course do what feels best for you.

but my feeling on it is that accuracy breeds confidence and a confident Trader is a profitable Trader So for me I want to be on a positive feedback loop and a positive feedback loop means I focus on high accuracy I Try to trade the best quality setups then naturally I have more winners I naturally have a better profit to loss ratio I Feel more confident and then that just becomes this positive feedback loop where I'm making more money I'm taking bigger size. My accuracy stays high. Now the inverse of this and this is a negative feedback loop that many beginner Traders will experience is they have poor accuracy, poor profit loss ratio. They're losing money.

Now they're getting nervous and insecure. They're not trading well, they're trading with smaller size and this can actually become in a way, a self-fulfilling prophecy where I've seen traders who have throttled themselves back so much because they've lost confidence, they've gotten scared in the market. I've seen this happen to traders who have been trading for five plus years who did really well and then they kind of stall out and now they get too afraid of loss. So so they say I I I don't deserve to trade with big size anymore.

So they lock themselves into trading with tiny size. but if you always trade with tiny size, you're never going to have big Winners and then they just sort of stall out. they they it's like they Plateau they just kind of. they th they go into just this sideways and and that's not good either so you don't want to be on a negative feedback loop for sure, you want to be on a positive feedback loop and you also want to try to avoid, uh, boxing yourself in because of fear losses happen in trading.

Had my fair share of them this year. My biggest loss of the whole year I Just had it two weeks ago. It was $10,000 You know what? That's not so bad. A $10,000 loss? That's not bad at all considering the fact that I have over $10 million in net profit, over 12 million in gross profit, but 10 million in net profit a $10,000 loss this year is nothing.

My biggest winner is also about 10,000, so you know I would have liked to maybe have had a couple more big wins this year, but it didn't end up happening for me anyway. Any biggest winner Biggest Loser About the same and my average whole time about 3 minutes this year, both for winners and for losers. The whole time had to be a little bit shorter this year because we were in a market where you had to take what you had and if you didn't you were finding yourself giving back profit. I'll talk more about that in a moment.

So the big thing for me this year and this is Step number one that led to my success was being able to manage my risk Knowing When to Walk Away knowing how to cut my losses I I am really I am ruthless about pressing that cell button and getting out Contrl: Z that's the key. Those are the keys on my keyboard I Press control- Z I am out of the trade I'm done and you know I didn't have any trades I held overnight I didn't turn any you know day trade losers into swing trades I didn't have any blowups I didn't have massive, massive winners but I kept risk in check and risk comes first. Here's the beginning Equity curve that I've seen for so many Traders and uh Jack is a member um hey Jack if you're watching this I hope you hit the thumbs up and and chime in. He's been a a longtime member uh at Warrior and he's been trading I don't know exactly when he traded from switched from SIM to real money.

um but he started trading and this was his Equity curve. Basically he had this sort of I don't even know if he had any beginner's luck. some Traders have a little beginner's luck and then they go negative I'm not sure if he even had beginner's luck. he just for whatever reason just started to go into the negative and then he went through this period of going kind of side more or less sideways and just in the last 6 months he started to climb back up and he's right about he's kind of like right about here, just about to cross back over to profitable and this is really meaningful to me because this exemplifies to me the true struggle that most beginner Traders have maybe a little bit of beginner's luck, then a period of overconfidence, losing money, not really knowing what you're doing, and then this point right here.

break even being break even. it's so easy to us underestimate being a break even. Trader when you're a break even Trader you're keeping your head above water. You're not having blowout losses.

No, you're not making a lot of progress. Your accuracy needs to improve. But guess what that comes at? You gain more experience. As you gain more experience, your intuition gets better.

and then that's when you start to see that curling and that's exactly what's been happening for him. He's starting to pull away, he's starting to move up, and so now to me, it's like it doesn't. None of this matters anymore. What matters is that he's proving right here.

This is what is possible. He is showing that he can grow his account by managing risk, focusing on strong stocks, and staying disciplined. He's broken out of the the sideways period of just treading water, and now he's pulling away. So that's the beginning Equity curve that I see for a lot of Traders If you're a new Trader, you may relate to it.

you may have had beginner's luck before going into the draw down. You may have not. You may have just gone straight into a draw down. it's it's a little different for everyone, but but it's very common that most traders in fact I know very few.

Traders The only Trader right now that I can think of who didn't experience a significant draw down before you know pulling away is Trader who traded in a simulator for it was maybe six or eight months. Six or eight months in a simulator and then when he flipped to real money, he already had a track record. He already had experience and so then he just started away. But most beginner.

Traders Even though I always say trade in a simulator, trade in simulator, a lot of people won't do it. So let that be a word. um of wisdom to trade in the simulator. Okay so step number one is managing risk.

Step number two was I got really good at finding the best stocks to trade I've Gotten Good at it over the years. I stayed really solid at it and this is an area where I'm harnessing harnessing technology to help me find those strong stocks each day. Yesterday I finished the year with a green day and and um, we had some nice moves on. Uh, sntg, sxtc these are I mean not that it really matters.

this is a, um an episode that hopefully people you guys will watch for months from now. But just as an example, these were the top gainers yesterday. I Find them on this scan right here. This is my proprietary scanning system I have a development team that built it out for me.

They're working uh, six days a week for me and pretty much 24 hours a day coverage maintaining the system. And this is scanning the entire Market in real time for stocks that meet my criteria for being worth trading. So if we jump back on this slide deck here, what I'm looking for are stocks that have high relative volume stocks are up 10% on the day, stocks that have news on the day, stocks are priced between a do and 20, and stocks have a float of less than 10 million shares. But let's back that up with some data now.

I'm just saying this: how do you know that this is actually? you know this is true, that that's where I make money? Well, let's actually look at the metrics. So right in here, we're going to pull up my metrics. So these are my metrics of course from just this last year. so from January 1 2023 so we can start by looking at um I I Well let's see.

so let's just really quickly look at day of the week, day of the week, and time of the day. so time of the day you could see Um for my strategy. I'm focusing on trading pre-market basically. So I I you I would I was going to say I trade at the open I used to trade at the open I used to trade 9:30 to 10:30 at the open the first hour of the day and then during Co something changed.

What changed was that the second news broke on a stock. Whether it was at 7, 7:30 8, 8:39 Typically, news comes out at the top and bottom of every hour. The second the news would come out, Traders would jump on the stock and we would see these stocks. We still see it today where news comes out at 80 801 A.m.

it's you know. Compan has just received FDA clearance for and the stock goes from 2 to 250 to 3 350, 4, 450, 5, 556 and you're like oh my God it's a 300% move in like 10 minutes and that's the first move. Now, five years ago the news would come out, but there just wasn't a lot of trading pre-market So that changed during Co And it it changed partly due to the advances in online trading platforms that have made it easier to trade including premarket. And so now as soon as news comes out, the market reacts.

However, a lot of the Brokers don't open until 7: A.m. So although I can trade as early as 4: A.m. with a broker that I use I I have done that like twice in my career and it was during GameStop I Don't get up at 4:00 a.m. to trade that early.

so that's not my strategy. Yes, there are some news headlines from International companies that come out during overnight while the Market's closed and then at 4:00 a.m. the market will respond. but there's not a lot of Market participants.

There's not a lot of volume. the spreads are huge so I don't worry about that. Even when I was in Italy this summer I was like oh well, you know I'm in Italy I guess 4:00 A.m. is uh, two? what? Sorry, what am I um we six hours ahead.

So 400 a.m. is 10: a.m. So 10: A.m. I was like yeah, it's 10: a.m.

in Italy I'll I'll take a look at the scans but it was dead I mean that like yes, you would see something moving but the spreads were huge. It wasn't tradable. so I really focus on being here. so I can start around 7 cuz that's when most retail Traders come online.

That's when most Brokers come online. So 7:00 a.m. is kind of the beginning and then it's watching anything that had news prior to 7, how it responds at 7 a.m. and then continuing to trade really through the open up until about 10:00 a.m.

and then it seems to slow down. You know it, it even this year has slowed down sort of. At the open between 9:30 and 10 has been kind of Hit or Miss uh, but but some days it's been really good. so it's it's still hit or miss.

But my general strategy right now in terms of time of day is to sit down by 700 and to trade until 10 roughly. So I'm trading for about 3 hours a day, two to three hours a day, and in two to three hours a day. This year I locked up over $300,000 of profit. Now there are some days where, especially in this last month, we've seen some big moves later in the day.

This has sort of always been the case that sometimes there'll be periods where there's Market Cycles You know, the last couple days, last three or four sessions, we had big moves after hours. So Traders start sticking around after hours to try to get a piece of it. A lot of Traders are greedy. They want to make as much as they can, and if they start seeing a pattern of oh stocks are squeezing at 2 p.m.

they're going to start showing up at 2 pm to trade those moves. The problem that I have is that it's inconsistent. Those afternoon moves are inconsistent. and for me, it's not really my goal to sit here from 4 a for instance until 8:00 p.m.

from premarket till after hours to capture every piece of the move that doesn't feel like a good quality of life. Now granted, I could be watching TV and you know, just sitting in my chair. but I would rather be out doing things and living life because this is the thing you can make money trading. But you can't make time.

You can't make back time. You can't buy time in your life. We have the amount of time we have and that's that. So we want to make money so we can spend it and do things we enjoy doing okay.

so we can't spend all time just focusing on making money. It's just not a good quality of life. So there's an important work life balance here. And for me, as you can see, my trading begins at about 7:00 a.m..

There's a few trades before 7, uh, between 6:00 and 7:00 A.m. but they weren't significant in profit. So the trades really began at 7:00 a.m. heavy trading between 8:00 a.m.

and 9:00 A.m. uh, less trading between 9:00 A.m. and 10: A.m. and then after 10:00 A.m.

between 10: and 11. I was actually net negative. 4 grand between 11 and 12 I made 8,000 This is for the whole year between 12 and 1 5 ,000 So you know I made I was. You know I was profitable.

but this is the profit. and then this column here. this is showing the distribution of in terms of the total number of Trades So you can clearly see that I just didn't trade much later in the day. My real focus is trading the first two hours and you know I know a lot of Traders I know a lot of six seven figure traders who have done really well, even eight figure Traders and we're pretty much all the same.

We trade the we trade the morning we trade the open. The thing we're trading later in the day is that there's sometimes an illusion of hotness because you see a stock that makes a big move. Actually, this is a good example. So like a couple weeks ago, um, there was a day where I did trade in the afternoon, I trade in the afternoon and the stock was strong in the morning and then the afternoon it kind of grinds back up, goes up to like 950, then up to 10 and I traded it and I lost like $4,000 on it I was like God dang the next day I sit down and I'm looking at charts and I don't how absent-minded I was but I was like whoa oh my God I can't believe this made a move in the afternoon.

Dang it! I wish I traded it I like completely. it was like over my head that that was actually the stock I had traded. So get this. I had fomo seeing a move because I saw the candlesticks but in reality I actually traded it and managed to lose on it because it's not always as clean as it looks.

The problem was the spreads were big so I was able to get in, but we had like a 20 30 Cent spread and then it flushed down and I lost. So be careful because there's an illusion ofus you can see a chart where it goes straight up but then you're like well. but what was the volume? You can see the volume. What were the spreads Because you can't see the spreads when you're just looking back at the chart.

So all of that is to say that it seems to me that most Traders are hitting it pretty hard in the morning based on news that came out and you know later in the day. Yes, Do we sometimes see stocks that squeeze up and give uh, a second leg of of opportunity? We do. and we definitely had that, um, a bit this week with a few of these different stocks. think it was sntg um yesterday.

this is a daily chart but um, but this one gave a a Actually this was a really nice move here. um it was between it was between 1040 and and 11 right? So this was really kind of the window where this one made the move and then it was sort of died off later. So look My Philosophy is that if I'm actively trading and stuff is moving I will stay I'll stay until it's slows down, but once it's slowing down, then I walk away and once I walk away. there's no going back cuz here's the thing you never see.

Michael Jordan in the old days you never saw him play the first quarter of a basketball game. Go grab some lunch and some beers and then come back and play the final quarter. You get yourself in the zone. You get ready to be at your best.

It's game time. Market's opening adrenaline Focus Intense Focus Discipline And then when you're done, you're done. Someone said recently, you don't think about where a taxi goes after you get out. Don't think about where a stock goes after you get out.

Once you're out, you're out. Don't worry about it. Move on. It's very important.

Okay, so um, so that's my philosophy. When I'm done, I'm done I don't want to come back now I I'll say there are times where Fomo got the best of me this year and I did come back and for the most part I regretted it I didn't have I don't think I had a single day where I was like I'm really glad I came back I regretted it pretty much every time. So performance by hour of the day right there. performance by day of the week um slower on Mondays which is typical beginning of the week I'm kind of Dipping my toe in the water trying to get comfortable I then increase uh on Tuesdays Wednesdays You know I just had the bad luck of having a couple of bad Wednesdays in a row in the last like two months.

Um, my worst day of the month of the whole year was on a Wednesday That was a $10,000 loss. so I just had a few of them I think it was just bad luck. um usually Wednesdays are good for me. uh Fridays being as good as they were honestly was surprising cuz that's not usually true.

but um if I just pull this out, we can just compare this for a second to um, all my all my trading data. So um, all my trading data shows this pattern low on Monday because usually on Monday I am taking it slow, increasing on Tuesday super hot Wednesday and Thursday and then a little slower Friday but this year was, you know, a little different and sometimes it's going to be like that. Okay so back to 2023. All right, So for 2023, um so we've looked at I wanted to show you just days and time of the week and then month of the year I did have a red month this year.

It was my first red month in about two years of trading. uh, really strong January and February and then I had a red month in March April was slow and then December was slow. So second worst month of the year was in December. What's interesting here is that my best month of the year was September And let's look at how many trades I took in September Literally September is when I took the fewest trades out of the whole H Well, June September and June were basically or July were tied I took 102 trades but it was my best month of the year.

I was disciplined I trade best quality setups and I trade them aggressively January and February I traded my pants off I had no pants by the end of the month. It was crazy. but I didn't have a lot to show for it relatively speaking compared to September and in December I traded a lot too I didn't really have much to show for it, so there is something to be said for. less is more.

All right. Now let's look at the specific stock to get back to. Um Step Number two: finding the best stocks to trade each day. That was a little bit of a tangent.

Okay, so let's look. does it? Does it line up that I do the best on stocks have five times relative volume? We can find this out. Uh, let's see, it's actually under Um instrument. Uh I think it is under instrument.

So let's see performance by instrument. relative volume Boom right there. So 500% five times higher relative volume now. I Had some trades on stocks that were a little bit under that.

Um, but I lost money on stocks that didn't have high relative volume. So that's you know. This is a this is a clear takeaway right here of hello. Don't trade it if it has low relative volume.

You say it. You said it a thousand times over the last decade, but for one reason or another. I got into a few that didn't out. These might have been stocks that were on I don't want to do that.

Actually, it's it's fine. These might have been stocks that hit the scanner and I thought it looked good and then it just didn't follow through. Um, but anyways, this is this is where I certainly do the very best. Okay, so in terms of scanning, we're looking for stocks that have five times relative volume.

Um, and then in terms of uh instrument movement, my profit. it's on stocks up more than 10% Okay, that shouldn't be a surprise, but uh, um, you know I I guess I had a little bit of profit on stocks down more than 10% These were gap down reversals. It's not my sweet spot. the smaller gap down reversals for continuation I lost on so what we sometimes will see and we've got a good example of this.

Um, just from this past week, C C gave um a gap down A couple days ago it had a huge move after hours. Absolutely crazy goes way up here. Oh actually, you know what? I'm sorry this wasn't a gap down. Um, let's see.

Well, we did have a gap down here. So so this day it actually was a gap higher because the move started after hours. So that was the Gap right there from there. But then this day it closed here and opened here.

so it was a gap down and you can see it did kind of rally back up, but it was choppy, big red candles. It wasn't clean, but what I had sort of thought was the case with this. but I was wrong. Sometimes you'll have a stock that's really strong previous day and then it opens a little bit lower the next day so it's gapping down and those sometimes come up for continuation, but a lot of times they have resistance at the Double top.

Uh, and they can be choppy and shorts are shorting against that double top. So anyways, um, so clearly stocks up 10% is my sweet spot. Uh, most stock most Traders prefer uh stocks between 1 and 20 I Found pretty consistently that my profit this year came from stocks between 5 and 10 right in the middle of that sweet spot. Uh, under $2 didn't do a lot of Trades but made some money 2 to five.

Uh, and this is kind of interesting just just for the heck of it. We can look at 2016. this is a long time ago, but 2016 1231, um in 2016. Let's look at the distribution of Um trades by price I finished with a quarter million 222,000 Uh.

but the the trades were uh, much more between 2 and five in that year? Uh, not as much between 5 and 10 and not much over that. and I lost money above that Uh, so it was just interesting. Most of those trades were between two and five. Uh, this year I did I got a lot more trades between five and 10 I Think that that, to be honest, is not a choice.

it's just what was available. It just happened that we had more opportunities between 5 and 10 this year. So generally I'm going to keep my threshold open and in fact, I did pretty darn well on stocks between 2 and 50. I did well on stocks between 10 and 20 I did well in stocks between 50 and 100.

but I didn't do make a lot up here and it is perhaps worth noting that this all comes at an opportunity cost. If I'm spending my time focusing on this, I might be overlooking the next 5 to 10 Stock that has a potential going up 400% This is where we're usually going to see the 400% movers. Most likely though, these were stocks that were at sort of the top of a move that started at like5 or $10 right? They just kept going higher and I just kept trading them as they went higher and higher. So anyways, um, so did well there.

and then float. Um, this is actually a metric that is not displayed in Trader view. So I don't have um, concrete metrics for float I Would like it now as I just scrolled down, we see this red section here: Performance by intrade price range. This to me is interesting.

Um, it makes sense that I would make more money on stocks that have a bigger range. I Also think that this data is incomplete because it doesn't total out to the full 300,000 So I'm not totally sure I think I'm just going to disregard this because I don't it should to. If it totaled out to the full 300,000 I would be like okay, yeah, I should definitely not trade stocks that don't have at least the potential to go up a dollar a share. but seems like this data is broken or something.

I don't know why. because this is only 25,000 this is 18,000 Anyway, it doesn't total out right? Not sure why. So so I'll leave that alone. Um, now if we look at liquidity, uh, no.

actually. um, this is by adding shares that's not as significant. Um, if we look at win loss expectation here, you'll see my Equity curve for the whole year. So this was my Equity curve for the entire year.

Actually am finishing the year on a little bit of a draw down. kind of pulled back a little bit going into the end of December. Um, so I guess I peaked at 322. but anyways.

Um, but you can see just really steady progress throughout the year. Um, a couple of dips right in here. Couple draw Downs Couple draw downs, but nothing major. just pretty smooth sailing.

As I Grew The account uh I I will say that I started this year at the beginning of the year with $700,000 in my account. um I carried that over from last year from profit from from last year. As you know, I've turned $583 into 10 million. but I don't keep the full 10 million in my trading account.

Some people would some people who want the buying power to be able to hit a GameStop with you know, a $300 type of share GameStop move with like 10,000 shares or something like that like really go big they'd keep all that money in the account during GameStop uh I did have a lot of money in my account um I had about uh, maybe 3 4 million and I used every penny of it I was using I was getting buying power rejected cuz I was using it all to buy GameStop and in hindsight, if I had more money in my account, I would have used it and I probably would have made more money. So because of that, I've kept larger amounts of money in my account just in case I need it. But there's an opportunity cost in that because $700,000 sitting my account all year I could have invested that even in fixed income and earn 5% You know I could have earned an extra 30 grand just by doing nothing but putting it somewhere else. That would have added 10% to my profit this year.

So this is what I do in my day trading account which by the way is a Roth IRA oops Ira it's a Roth IRA which means it is tax-free the way I did this was I turned $583 uh, first into about 100K 100K and then that first year I deposited $6,000 into a actually I deposited into a traditional IRA and then did a conversion. Then I did $6,000 the second year and I did $6,000 the third year. So I deposited $188,000 into a Roth IRA From there, I started day trading. It now obviously I was below the $25,000 PDT minimum.

so I could only trade three times a week. So I traded you three times a week. I got it above $25,000 and then I just day traded in it every day. and now that account has grown to over $6 million over $6 million and it's 100% tax-free There's no income tax on that growth and there'll be no income tax when I take the money out.

but I can't take it out till retirement age. Okay, so that's fine. So that $6 million that's not sitting in my day trading account. What I did was I moved it into what I would call a lower risk bucket.

So we've got day trading right here. Day trading: This is a bucket and this is high high risk but also High reward I can take a $100,000 account and I can probably make 300 400 Grand in one year. maybe more so I I can get really great return I may be able on the off chance that we have another GameStop which is sort of like a once in a decade type of thing, but on something like that. if I had the money available at that moment, yeah, I could probably make millions of dollars on it.

So I I did have some fomo about taking money out of my account. but what I ultimately decided was that I should move this into longterm right here because historically long term the stock market performs 12% so moving basically 6 million over here. Wow, that's going to be over $600,000 this year. Over $600,000 Now I'm not including that as part of these.

Uh, this annual report because that's not my day trading profit. that is long-term profit. It's profit and taxfree. but it's not part of my day trading profit.

This is important though. I'm diversifying my risk and I'm setting myself up to have income growing from my earlier gains, my earlier gains that money is now working for me every single day. and in fact, this is. this is a year.

This will probably be the first year actually where that long-term account outperformed my day trading account. But I'll tell you, five years ago, when I was setting up this account, this is exactly what I said I wanted to do I said what I'm going to do is I'm going to grow a retirement account as fast as I can I'm going to turbocharge it while I'm in my 30s to put as much away as possible and then I'm going to benefit from compound interest 12% a year compounded over the next 30. Years This $6 million account has the potential to grow to$ 40 $50 million I'm not kidding. it has huge potential as long as I just let it ride and it's going to far What I can make Day trading day trading is scalable to a certain degree, but only to a certain degree.

You can't day trade with $50 million in and out. so most day Traders keep their accounts relatively small. So what I ended up doing during the summer was I pulled $300,000 out of my account I dropped it from 700 down to like 350 or something like that 400 I dropped I pulled some money out and I put it away into this long-term account, had it put in the market I was like let's put it away and then I did it again in November I dropped Dr it down to $100,000 I said you know what I just don't think I need this much money in my account I'm not using it I might as well put it away and let it work and the Market's strong. And now with the Federal Reserve indicating that they're pausing on increasing interest rates and in fact, we're going to see a decrease in interest rates I Think the Market's going to start to pull away.

So I'm like this is a good time to just put the money over there and let it work. now. Listen, there'll be years where the market goes down and that account goes down too that I I have to just separate it and not think about it and I'm not managing that myself I Hired a financial adviser I said you guys do it and I don't even want to look at it I don't log in every day I don't even want to look at it I'll look at it a couple times a year. it's out of sight out of mind I Put it away so that money I'm not spending.

it's just, you know I can't spend it. It's in a retirement account, but it's put away so that's the way I Think about this. Um, in terms of day trading is this is my highest bucket of risk I Keep a small account. So right now my account's got 100 Grand which is relatively small.

It is a retirement account which means I can't short stocks and I don't have any leverage so I cannot I don't have four times leverage so I just have the 100 Grand that's it and then you know every time I make a couple hundred grand I Take that money out I Dump it over here and this account just keeps growing And it's growing with compound interest. So so anyways. so I spent most of the Year trading. Um, you know, with a relatively relatively small amount not being super super aggressive, you know I got certainly some good trades in there, but I wasn't being super aggressive.

Uh, and when it comes to stocks that are higher priced, I'm just not going to be able to afford to to Really trade 50 $75 stocks. Um, when the account is smaller, it's just not going to make sense. So I'm going to continue to focus in my wheelhouse where I make the most money and some of that's going to be limited by my account size. And in terms of Supply I just know that I do make the most on stocks that have lower floats.

Those are the stocks that get float rotation. Float rotation means you have a stock that has, um, a million shares of volume. Well, a stock has 10 million shares of volume, but has a 1 million share float. That whole float has rotated 10 times.

That's when we start to skip and go real fast. That's when things get exciting. If you have a 10 million share float and you have 10 million shares of volume, it's only a onetime float rotation, so you don't get as much of that upward movement when you have higher floats. So that imbalance comes when the float's lower.

and then what's interesting is once it starts moving, it attracts even more volume. Which is why if we look at the scans from Friday some of the stocks sntg trade on 47 million shares of volume with a 1 million share float. That's a 45 times float rotation. Sxtc traded 30 million shares of volume with a half a million share float.

These are insane. This is when we see big moves. This is when things get exciting. So I think one of the big things.

Um, well so I I'll save that I'll save that for a second. I'm going to save that for when I share with you my my takeaway lessons. The third step that I followed was taking setups with the highest probability of success. So focusing on the best setups absolutely hands down produces the best results.

I had some trades this year where I got a little Fomo and I started chasing and I think what happened to me was I got a little bit of desperation from the fact that I felt like I needed to do better I was disappointed in myself I you know coming off a really strong year in 2020 2021, 2022 to I just felt like I need to do better and the fact is the market was not the same and it was colder and I did the best I could and putting more pressure on myself was only making me worse trade worse I was getting desperate I was getting too aggressive at the wrong spots I would get in with big size and then what would happen was sort of in that example of the stock at $3 So let's just say this stock again. you know I'd get in this with like 20,000 shares. at three bucks it would go up to 315 320 so it goes up to you know 330. I add another 10,000 shares and now my average is like you know, let's just say 310 and then instead of going to 350 and 4 it just comes back down to 310.

a stop out break even you know I had a $6,000 loser and now it's a break even trade and I did that so many times this year because I thought something was going to go big I set these high expectations I was like it's going to go big and then it just stalled out and it didn't so need to slow down and I definitely found that my best trades were the ones that were simple setups. high quality setups dips off support fantastic micro pullbacks still working pretty well as long as I'm not chasing it too high ABCD Patterns super solid Um, number Four, discipline and I'm not going to go as I could spend a lot of time on number three. but as as those of you guys who watch my daily Recaps each one of those Recaps is highlighting the setups so you could watch any of those to get more detail on setups. Step number four for me: discipline, discipline carried me through 2023.

it will no doubt. Carry Me Through 2024 I Have to recognize Fomo triggers and walk away sooner for 2024. But I did a good job in 2023. Don't be greedy, be grateful, and get out.

Don't look back after I Leave and don't fight. When it's hard, quit, just quit. Just give up, just accept a feat and walk away. It just seriously, when it's hard, don't even try just Qu.

This is the thing with trading is that some days it just it's just feels easier. Some days like you're just all of a sudden you're up $5,000 and it's like wow, this it's just feels easier and other days no matter how hard you try, it's not happening. Those are not the days to push hard. So what I found is the 8020 rule.

About 80% of my profit comes from 20% of my days. So ask myself, is this one of the you know one out of five days when it's hot? If the answer is no, then step back, slow down and wait for the next hot day. On the hot days, lean in, dig deep and do the best I can. so that's that's like the big thing is pace yourself.

So when the hot days come, you can put in 100% You can trade aggressively and when it's cold, just just be patient. Just wait. Seriously, it's just such such an important thing. So my biggest lessons from 2023: Um, my first three trades tend to be the best each day.

Often my first trade is the best trade, but I take it with too much. well, sorry. I take it with, uh, too small of size because I'm dipping my toe in often. My first trade is my best and I think it's it's just because it's sort of the first trade of the day.

I'm taking the first entry on the strong stock that I've chosen and that first entry often is the best entry and then I get out and then it just goes higher and I'm like, gosh darn it now I guess I'm going to buy it higher and I do and I can make more money on it. but I would do better if I just focused on on those first few trades and even, um, taking more size on those first couple trades and then buying. Remember that buying back too high has a poor risk reward ratio. so I really have to wait for a whole new setup and we saw a lot of this year.

Um, stocks that would kind of go like this and you know then then they kind of just fade way back down to below Vwap and then later. you know they kind of, you know, make their way back up. but it's like if you're not quick in this first leg, you're missing it. So you have to be quick in this first leg.

But also, don't overstay your welcome. This starts to feel like the backside and it's getting too choppy. so I don't want to overtrade the backside I Want to be aggressive on the front side of the move? Don't be greedy by going back too many times. Be grateful and live to trade another day and try again tomorrow and again.

Remember that 8020 rule: 20% of the trading days produces 80% of the profits. Okay, so now what are the goals for 2024 Goals for 2024 I Want to do a small account challenge? So 2024, we're gonna have another small account challenge I'm really excited about that. Um, you know I haven't done a small account Challenge in a couple years I did the last one in 2021 so there was no challenge in 2022. I didn't do one in 2023.

so I'm past due. so small count challenge in 2024. Um, this is something that I'm I'm excited about so that's going to be coming in 2024. I Want to improve my accuracy back towards 70% in 2024 I think that this year I did just a little too much.

um kind of Dipping my toe in on not great setups and then you know, just losing and it just brought my accuracy down. I got to focus on higher quality stocks and I think I have to really ask myself does this stock have the potential to be like a home run? You know, does it really have that potential? And if it doesn't sometimes it's like why even why even bother If the best I'm going to make is a couple hundred bucks, why bother? Because when I'm aiming when I'm trying to make a couple hundred, sometimes it's like stepping over dollars to pick up pennies. I I end up screwing up losing a thousand bucks. It's like I never even had the potential to make that much.

This was just stupid I should have just waited. and then now when I do finally get that good trade, it's bailing me out from a loser instead of being net profit. So I want to aim to improve my accuracy back towards 1: one? uh sorry, back towards 70% I want to improve my profit loss ratio back towards 1 to one I had periods where the profit loss ratio was was higher this year I had a couple months where it was really good I think September the profit loss ratio might have been 2: one. Um, oh no, maybe it wasn't September Anyways I did I did have a stretch in there where the profit loss ratio was a little bit better.

Uh, but but nonetheless uh I I Want to improve that for 2024? As always I want to keep helping members at Warrior Trading in their Journey learning how to trade with my daily Market Commentary trading broadcasts educational content I'm looking forward to awarding the next $1 million badge at Warrior Trading. I Have a feeling that I know who it's going to be. Um, and for those of you guys that are um, you know, tuning in, you can keep reading. You can obviously find me on Entrepreneur where I've been writing uh articles pretty much once a month.

I've got my new book and if you come over to Warri you're trading. What I encourage you to do is click this little watch button right up here and you can get uh signed in here on a demo and you can actually see what it's like behind the curtains. You can actually start playing with this software, you can start testing it out, you can watch my broadcast and uh, it's a sample broadcast but you can kind of watch it and get a feel for it. And if you want to, you know, take it for a spin and do a trial with us.

You know we'd love to have you do that as you know. Um, we're right now running a sale at Warrior trading. Uh New Year sale. So New Year sale going on right now.

Many of you guys are going to be watching this months from now a year from now so that's the sale will be over. But for those of you guys watching this today, make sure you check out the sale and I hope As always you are subscribed to the channel. You hit the thumbs up and you enjoy these videos. Thank you for tuning in to this 2023 year in review and the small account challenge.

More info will be coming about that soon. That'll be exciting for 2024. So I hope you guys had a great 2023. Let's try to do even better this coming year.

I'm going to be right here by your side this whole year. I'm the mailman I Show up every single day, rain or shine. So I'm going to be here doing my recaps trading every day and let's hope that we have some great opportunities and we'll make the most of it all right! So thanks as always for tuning in! I'll see you for my next upload. My next recap coming real soon.

All right! See you guys soon.