Biggest Red Day of 2025 transcript

Well, if I could just get Caitlyn out of my head, maybe I could trade better. Okay, I hope she doesn't see this episode because I did not make her proud. Today, big red day down $58,000. I didn't see this coming. I really didn't. Maybe I should have. I don't know. But I didn't. Uh, unfortunately, today we had volatility and man, I just got on the wrong side of it. So, I'm red on three out of the three stocks I traded.

Hit my max loss. Account is locked. Cannot take any more trades. I'm bummed. This is not how I want to start the week. Silver lining is that this is in the context of what has been one of the best months of the year. July has been a really good month. I'm already up well over a million dollar and even after today's loss, I'm still up over a million dollars. So, realistically, I'm giving back, you know, $58,000 off my peak of 1.1 million.

It's less than 5%. it it's tolerable in terms of percentages, but it doesn't really make it that much more fun to see, you know, a red number uh the size of, you know, a Volvo on my screen. So, all right. Well, let's where do we begin? Um, let's start by just looking at the scan. So, here's the crazy thing. We've got a stock right now up over 500%. Vape, and this is actually a problem. And as you can see, I'm read $31,000 on it.

This is very similar to VLCN from a week ago or two weeks ago. So, Vape squeezes up this morning. I mean, just a unbelievable move. It goes from 10 to 40, pulls back, goes to 60, pulls back, goes to 70, pulls back, goes to 80, dips, and rips to over $170 a share. Guess what? No news. There's no news. So, it ends up coming all the way back down to 60, you know, minutes later. And right here, boom, news comes out and I jump in.

I'm so tuned to jumping in something that's moving on breaking news. But guys, this is the problem. The people that traded it here, they already knew this news was coming. And so they were selling and so it pops up and immediately reverses and I lost $31,000 on it. Same as VLCN. So this is insider trading. I'm almost certain of it. There were some people that knew the news was coming early this morning. This is another crypto headline just like VLCN.

And I fell for it. And I I'm frustrated myself because typically I don't typically when something is popping up at the top or bottom of the hour, I I expect there is news and I I I skim the news. I don't read it very closely. I'm focusing so much on reading the chart and reading the level two. Uh but these last couple weeks, we've had uh now, you know, I've had two bigger losses as a result of a stock that, you know, was already up because people knew the news was coming.

So that is definitely frustrating. Um, but that's what happened on Vape. So you've got this stock which is a leading gainer, but there are other people that already got, you know, the head start on it. And so I'm trading the backside and obviously got caught. So that was on Vape. And you know what? That same thing happened on VCN. I went red 34,000 on the day, but I was still able to recover and finish the day in the green.

And so even though I was red 31,000 on this, I thought, you know what? Let's just stay focused because we are seeing volatility. I just need to make sure I'm on the front side of the next one and not trading the backside. So, CLZ, CLZ, no, sorry, um CLC, this stock pops up this morning. Um squeezes up right here on no news. So, we get another no news move. It gets halted. Then it resumes trading, continues higher, and suddenly sort of out of nowhere.

I mean, this this pop right here, I don't think anyone was expecting that it would break $32 and squeeze all the way up to $60 a share. That is unbelievable. That's an incredible move in again like one candle. I missed it. I just So, here's the problem. This one has a 23 million share float. It's got a higher float. It's easy to borrow. It just to me didn't look like the type of stock that's going to make a big move.

So, I missed it. I didn't trade it. Uh, we have ATTH that pops up on the scans. It's a biotech stock with news. I jumped into that. It goes from 8 to 9 to 10 almost to 11, reverses back down. I lose 1,100 bucks on it. Thank goodness I kept my share size small. I kept it small on that because it was lighter volume. So, I was kind of testing the water. So now I'm red on two stocks, ATHE and Vape. And so then I'm watching um CLRO or sorry, CRVO.

CRVO. Um I was watching this comes back up, dips down. Didn't trade. It pops back up, dips down. Now we've got an inverted head and shoulders pattern right here. So as it starts to pull away, I'm like, okay, you know, on CLC, we broke out and we squeezed huge. Obviously, vape made a big move. Now, CRVO is coming back up. So, I ended up adding uh heavy, and this was a mistake. I added 30,000 shares for the break of 15.

And it goes to a high of 1670, which is incredible. I was up over a dollar a share, but in a matter of seconds, it flashes back down to a low of 1336. And by the time I was out, I was down 25,000. And with that, I said, "All right, I'm done. This is I mean, I'm below max loss, but this is getting a little silly." Um, this was a nice setup. I was up nicely on it. I didn't take the profit. I thought it was going to keep going and then it does a huge jack knife and it just was so fast all of a sudden I'm down 25 grand.

So, you know what? Today is more of um you know it's a highly volatile market. We are still definitely in a bull market, but we were just seeing a lot of big moves. We were seeing some FOMO. I was trading with a bit too much size on that last trade. A little bit of revenge trading, you know, 30,000 shares, was trying to be aggressive and I I got on the wrong side of it. What I should have done in hindsight is after the big loss on Vape, I should have sized down and just tried to chip away and maybe get a couple small winners and gone from down 31,000 to maybe down 25 or maybe, you know, 15 at best.

Uh but unfortunately um you know I just um I just kept trading aggressively and so I got kicked in the teeth on that first trade and from there was like all right you know I'm I'm not going to give up until I kind of got you know I just got knocked out of the game for the for the day. But this is why I have the the stops at a certain point. So my max loss on my account right now is $50,000. Um, previously I'd had it set at 5,000, then I'd moved it to 15, then to 25, and then to 50.

And I moved it up because I've been having uh bigger green days. So, my kind of thought was that I don't want to lose more than I can make in one good day. So, when we look at my daily average over the last 30 days or so, you can see I'm averaging about $66,000 now. So, in theory, I probably could have afforded to lose another 10 grand today or whatever, um, and still not have lost more than I make on one typical day, but there was no point.

There was just no point in going any further into the red. It just wasn't happening. And so, I got the lo I have the max loss set on my account at $50,000. So, right now, if I go down more than that, I can't take any more trades. Um, you know, in a colder market, I'm going to tighten that max loss up. So, I'm going to be paying close attention to what is my what is my daily average. Like I said, I don't want to lose more than I can make in one good day.

So, if it's a cold market, I'm only making 5,000 a day. The max loss has to be 5,000. If I'm making 50,000, if I'm making $100,000 a day on average, then I can afford to go red 75,000. And who knows, I might even have a chance of getting back to flat or even green on the day. Today I just felt like I got to a point where it was like after that last loss on CRVO, the odds of recovering and getting green just they weren't they weren't there.

It was like this is just this is not going to happen here today. Um I I you know the best days start strong and so the fact that that last trade was like you know getting close to 8:30 I it was just like I'm running out of time for a big for a big recovery. Um and the market is just showing it it's too indecisive. You know these pops and drops. I mean, we're seeing big moves, but I think a challenge today was dispersed attention combined with a little insider trading, and it left us as retail traders kind of unsure of what we could trust and not feeling like we had something that was truly obvious.

Vape, it was too expensive. You know, I should have just left it alone. FOMO got the best of me and I jumped in when when I saw it popping and all of a sudden the spreads opened up and I, you know, got smoked. So, you know, it is what it is. CLC didn't trade that. Didn't think it was going to make such a big move, but it did. And so, now at this point, like, where is volume in the market today? I mean, if we sort by highest volume, you know, you're going to have open, which is a Wall Street Bets stock.

You've got LIDR, which is, you know, still moving but crowded. SMX is crowded. Uh, VWave, you know, more thickly traded. it. The these aren't stocks I'm going to probably do well on. So, you know, look, it is what it is. I'm not pleased to be sitting with this kind of red day at the beginning of the week, but I've got to remember that most likely a week from now, I I won't even remember the stocks I lost on. Now, if I think back to my last red day, and and this is sort of this is going to be the example.

Um, so last red day was back here. I was down 11,000. That was not even two weeks ago. I don't remember any I can't remember a single stock I traded on that day. I can't remember a single stock I traded. So if I'm not going to remember today, a week from now, then then why even spend another moment being sad about it? I'm not even going to remember today. I mean, this is the thing, you know, you have to have a bit of a short-term memory in some ways with trading, at least with the loss, because you've got to let it go.

Yes, it's important to remember patterns that work. I mean, you can't have, you know, a a memory problem and be a successful trader, I don't think. But, um, but it's important to be able to let it go. And so, likewise, I don't remember the trades I took on these days that were green. You know, the green days, you know, I don't hang on to them either. It just is what it is. I show up every day. I trade every day. I do the best I can.

And today is not the worst day of my career. I have not had a day this year that set any record of best day or worst day. Uh so, you know, it's just a it's just a day that I'm red. And the fact is I'm red, you know, well, right now, I don't know how many days we have of this year. I guess we could go look, but there's 250 trading days in the year. We're probably at day like 120, something like that. 125 maybe. And I've had four red days.

So I'm red right now, you know, 4% of the time and that's rounding up. So today's just one of those days and you know, don't make it more than it needs to be. You know, if I spent the rest of the day revenge trading, jumping on anything that popped like this stock AIM that popped up on like, you know, 50,000 shares of volume and and really, I mean, this is kind of an important thing to note. How how much volume did this actually have?

This went up 300% on 67,000 shares of volume. So, could I have bought 50,000 shares and sold 50,000 shares? Well, I mean, I didn't trade it, so you know, I don't know. If there was a big seller, maybe I could have, and if there was a big buyer, maybe. But there wasn't a lot of liquidity in this one. So, sometimes it can create the illusion of momentum, but it's but it's very short-lived. Um, you know, ate, this obviously was a shortlived pop.

There were a few others that were shortlived. I don't know. You know, this had biotech news. It kind of surprised me that the first trade of the day was that big of a rejection. I was like, "Huh, that's weird." So, then I was kind of like, "All right, well, let's focus on what's the leading gainer." Uh, but that didn't get me in a better spot because this one was too much on the backside. So, look, I put the days out all out there for you guys.

I recap every day whether it's a red day or green day. you know, over the last year, I think the only day I missed was for a recap was on Thursday uh because I had that um that procedure at the hospital, but uh but of course I uploaded my P&L and I talked about it the next day, so you guys got to see it. Anyways, so I try to really show you guys what it's like to be a trader, the ups and the downs, and I'm privileged and grateful that I don't have, you know, more red days, but I have at other times in my career.

And of course, I've uploaded those recaps as well. So, you know, right now overall we're in, you know, a pretty nice hot market. We go back to 2023. I'll just, you know, sort of jump back here. Um, you know, and you'll see there's other periods where, um, you know, there's a lot more red days. Golly, that was a lot of red days. You know, 2023, 2021, this was a fantastic year for me. I finished up well over $4 million, but there were some big red days here.

Let's look at this. $268,000. $94,000. Wow. Okay. So, you know, these are some serious red days. The beginning of January, 24, 38, 25, 66. I mean, I was having red days like that on a, you know, much more regular basis than I would have liked to have. So, you know, this year I've been able to keep the the red days a bit fewer and further between. Um, and so yeah, I might be sitting here with a red day, but big picture, I'm going to try to have a green week and I'm going to try to keep myself in a green month.

Now, we're at the end of the month, so hopefully I can hold that together, but you know, sometimes you got to take a step back and look at the big picture. All right, so this this year so far, um, I have not had this was a close call for a red week. Um, that was March, but still finished green. That was still that was oh that was the same one um June here what was that you know 15 right so that was you know still a green week and then back here in July so you know as long as I can keep the the weeks green and then the months green then these red days don't really matter that much so uh that means knowing when to call it quits and just to accept that today is uh today is a lost cause I'm not going to recover today so that means I've got sit with the emotion of being a little disappointed, a little bummed out for the rest of the day today.

I, you know, the the best way to alleviate this feeling that I have right in this moment would be if I could make $58,000, right? Because then I'm green on the day. I go from here from zero to hero. I'm like, "Ah, what a recovery." Sure, that would feel amazing. There's no question about it. That would feel really good to have that recovery. But to make that kind of recovery, I'd have to take quite a bit of risk. and the market's not telling me that it's worthy of me taking that kind of risk.

So then I wouldn't be trading the market I'm in. I'd be trading my own emotion and most likely I'd go further into the red and then all of a sudden when do I give up? When I'm down 100, 150, 200, 300, 400, 500, I don't know, right? You got to you got to have that max pain. When do you call it quits? So in hindsight, you could say I should have called it quits sooner. Hindsight's always 2020. Um, you know, I I at that third loss when I went below 50, I said that's enough.

So, that that's it for me. Uh, but I'll be back at it tomorrow. And tomorrow is all about trying to build a cushion, you know, get into the green, get a little momentum going, and then if I could do that, size up a little bit, that'd be nice. Tuesday, if I've got some momentum or Wednesday, if I've got some momentum from Tuesday, you know, lean in a little bit more. And then Thursday, last day of the month, see how we do.

Friday, first first day for the new month, August. So, Friday will have to probably go a little slow anyways because Fridays aren't typically my biggest day of the week and it's the first day of the new month. So, I got to get a cushion for August. But the goal for August will be $1 million. The same as the goal for June, the same as the goal for July. We're in a hot market right now. So, that means, you know, trying to hit $50,000 days pretty consistently and 250,000 a week. $50,000 red days are okay as long as I'm still averaging 50,000 on the green days and I'm green more often than I'm red.

So, the numbers are big. We're talking about, you know, Volvo station wagon num numbers here. This is Volvo money, but um you know, it's um once you condition yourself to have these big wins and the losses, it you know, it's it becomes easier. It's harder early on because you're like, "Oh my gosh, that 58,000 could have bought me this or paid this bill or this and that." So, you have to get to a point where you kind of become a little detached from what the money can do and you're just trading the chart and the money is sort of the byproduct and that does require a bit of sort of mental separation.

But that's conditioning and that takes time. So, I've, you know, that's part of why I'm able to do this recap and I'm not, you know, throwing my desk upside down. I I've conditioned myself to be able to lose 58,000 and go enjoy the rest of the day. It doesn't matter. I mean, look, I'm not thrilled about it, but I'm also I'm not going to mope around for the rest of the day. It it doesn't matter. It's not it's not a big enough deal that it's worth doing that.

So, where that number is for you might be $500. you know, maybe it's even lower, maybe it's higher, but uh if you want to get if you want bigger numbers, you've got to condition yourself to get comfortable with bigger loss. So, the only way you can do it is to keep trading at the edge of your comfort zone and to, you know, kind of closely monitor like how do I react? Am I good at walking away when I should? Am I following my rules?

And then, you know, just that's where you you're going to start to see growth. So, thank you guys for tuning in. I know you appreciate these red day recaps. So, I hope you hit the thumbs up. I hope you're subscribed to the channel and I'll be back at it bright and early tomorrow morning streaming 7 a.m. for members at Warrior Trading. So, reminder, easy come, easy go. Trading is risky. All right, so you know, that's just the way it is.

Um, and you just got to keep that in mind. But I'll see you guys um tomorrow morning. And uh let's see. Oh, there's one other thing I was going to say. Um, oh, I did just upload um over the weekend an episode about uh the change in the pattern day the proposed change to the pattern day trader rule. Uh the PDT rule uh may change from being a $25,000 minimum to a $2,000 minimum. So, if you didn't check out that breaking news uh YouTube video from the weekend, I'll post a link to that here uh so you guys can watch it. and uh cuz that that's going to be a real gamecher and I think it's important um in the event that that does happen that you start getting ready for heightened volatility in the market that will likely come once that rule gets implemented.

Now likely it's still you know 8 you know to 12 months away even if it gets approved um later this year but um never never too early to start practicing and getting ready. Okay, so that's it for me and again uh easy come easy go. Trading's risky so take it slow and I'll see you guys back here uh tomorrow morning.