RED DAY RECAP transcript

What's up, everyone? Well, yeah, I'm a little disappointed. It's a red day recap. Uh second trading day of the month for me, and I've already got a red day on the calendar. So, I I think I get a little fixated sometimes on uh striving to have no red months. No red months, you know, when I look back at the end of the month and I've got all green days on my calendar, it feels great. I mean, it's that's awesome. You know, it's 20 trading days in the month or whatever it might be, and I'm green on every single one of them.

That feels like, "Wow, I'm really doing something right." Uh at the end of the day, and there are times where that um obsession to just be very consistent, like no red days, leads me to be much more conservative in my risk-taking. Because, you know, you can't take risk if you if you really can't lose a single penny, and you can't risk having a red day. And so, there have been months where I've had no red days, but it didn't actually really make all that much money because I was sort of dialed down.

Everything was more conservative. And then I've had months where I've had, you know, four or five red days, and I've made far more than a no red month because uh on the green days I was hitting some great trades and taking risk. And I think that is definitely healthier. You have to have an acceptance for loss. Red days happen. It's inevitable. I I do think that um there is a variation of my strategy that could allow for almost almost no red days, but it's contingent on always having enough opportunities that even if you go red on your first couple trades, you can recoup the loss.

And so, this was my problem today. I sat down this morning focusing on high-quality setups as I have for the last couple weeks. It's been paying off really well. Paid off really well yesterday. Had a $46,000 green day. So, I sit down this morning, we've got a stock moving up. I feel good about it. I take a trade I've got a high level of conviction in, and I lose. Okay. Well, so well, let's think about that. A trade that I even felt like very high-level of conviction even there on that trade, I still lost.

So, now I felt like I've got to increase my quality standard even more today because even a setup that I really thought was going to work failed. And so, I bump my quality standard up a little higher. I say, "I'm not going to trade something where the catalyst doesn't make sense." So, we have a couple of stocks that come out with the news headline. We had one company that comes out with an AI an AI cooker. I mean, an AI cooker.

I'm like, "I don't know. I I'm leaving this one alone." And the stock pops up and drops back down. We had another stock that came up with some they had just gotten a new patent. A patent, I don't know. You know, anyone can kind of file a patent. That popped up and dropped down. So, I was like, "No." So, I dodged some bullets by increasing my quality standard. But, then I kind of got to a point where it'd been 30 minutes.

I hadn't taken any more trades. Then it's been 45 minutes. Then it's been an hour. And I'm like, an hour and a half. So, now I'm just not trading. I'm in the red and I'm not recouping the loss. So, if I want to recoup the loss, I need to lower my quality standard so I can introduce more trades. But, if I lower my quality standard, my accuracy will go down. Now, granted even if 60% or 55% accuracy, as long as my average winners and average losers are even roughly the same, I could make money.

I don't need to be right 80% of time, but does it make sense in my daily today to reduce my quality standard to introduce more trades just to try to recoup a loss, which at the end of the day isn't really that big? And so, that brings me to this reading recommendation, Quit: The Power of Knowing When to Walk Away. So, I walked away today. And yes, the market is still open even right now. I could still be trading, but I think it would be a mistake to do that on a day when the the has already communicated to me that even when I think something looks really good, it's not working.

So, let's go ahead and jump on the screen share and we'll break down my trade from this morning. That's right. I only took one trade today. I think we could categorize today as a successful red day. I'm red $3,447.38 and this is a tolerable loss. It is not a max loss. In fact, red days like this, if all my red days could be like this, I would be in such a better place than I am uh even right now in the year. You know, this was a $57,000 red day.

This was a $20,000 red day. This is a $3,500 red day and it doesn't matter. This is forgettable. I don't This was a week ago. I don't even remember what I traded on that day. It's that forgettable. It doesn't matter. Make your red days forgettable. This one's not going to be forgettable. If you say in 6 months, "You remember that $57,000 red day?" I'm going to be like, "Mhm. Yeah, I remember it." I dug my heels in. I got stubborn and uh obviously that was a mistake.

So, it was important today that I recognized early on uh to take my foot off the gas. So, this is the one trade I took on CLRB. Uh as you can see right here, I uh well, let's pull the chart up. So, first of all, um when I sat down this morning, or what I typically do is I actually pull the scans up on my phone uh even when I'm still in bed. I pull the scans up on my phone and I just check to see, you know, what's moving and is there anything interesting.

And I saw that BDRX was up quite a bit this morning. Uh it's got 600,000 share float as you can see right here. Um biotech company, had traded it before and I looked at the chart and I said, "You know, it's definitely creeping higher here. This was like sort of this, you know, 6:45. I thought this might work for a squeeze through 560 right at 7:00 a.m." But as we came up towards 7:00 a.m., it ends up rolling over hard.

See how the volume increases right 7:00 a.m. right here? So, a lot of traders aren't able to start trading before 7:00 a.m. So, 7:00 a.m. is when more volume comes in. And at that time, uh the volume was to the sell side. So, this started selling off. So, that was BDRX, no trades on that. And then CLRB pops up. And when it first pops up, um I was I was like, "Ugh, I've I'm familiar with CLRB. I don't I don't know, you know, it's got a 4 million share float.

Um it's a biotech company. I don't know. I pull up the level two CLRB. I notice um that it's easy to borrow. You could see right there, the big E. And I'm thinking, it's got 50 million shares of volume right now. But I'm just thinking, you know, I don't know. I I think this is going to be a tricky one. So, that was my initial gut feeling was I don't know if this is going to work. But it squeezes from $3 up to $7 a share.

And in an instant is the leading gainer on the day. And so, I said, "Well, jeez, I I can't I can't ignore it now. It's definitely obvious. And so, let's see if I can break the ice and get a trade on it." And so, it gave us that first big squeeze up, as you could see right here. So, it rallies up. I didn't trade it in this area because it was easy to borrow. I was like, "I'm not sure. I'm going to give it a chance to fail.

And then if it still holds up, I'll look for a trade." So, it hits a high of seven. It pulls back, pops up, pulls back, pops up, pulls back. And I got in I think it was right here. And I got in uh my first starter was at um $6.78. And then I added 85, 88, 92, 94, 95, 98. And I was looking for the break over seven. And then I was looking for an immediate retest of the pre-market high right here, which was 720. And then I was looking for a squeeze to 750.

And what ended up happening, as you could see, is it just sort of tapped its head at seven and then drops back down. And I stopped out right down here. I I the loss. Uh I sold half, almost immediately when it didn't break seven at 686. So, I I started reducing my size, and I sold another half at 663, and another half at 658, which were bigger losses. So, on 10,000 it was 21,000 shares total, and I lost about 4 cents a share on half.

And then on the remaining half, I lost about um you know, 30 cents a share. So, I'm down $3,400 um on 20,000 shares. It's like 15-cent average loss, um but you know, it it it it doesn't In any case, I cut the losses quickly as I could, and I said that. I said, "I'm going to cut the loss before it gets bigger. I don't need to get stubborn on this." I could have. I wasn't out of buying power. I could have bought 100,000 shares if I wanted to.

I could have kept adding. I didn't keep adding. I said, "Nope. Nope. Nope. Nope. I'm stepping right off of this. This is not working." I thought it I thought it was going to work. I In spite of being easy to borrow, it was holding up well. It was our leading gainer, and I thought it was going to break through seven, and I was going to get a nice quick little trade there. And um I would take that trade again if I saw it tomorrow.

Uh it's a good setup generally, but it didn't work. So, it's fine. It then drops back down, has this blue line that I drew here, um which was sort of this resistance level, and I was wondering if we were going to squeeze back above that, but we really weren't able to, and it just sold off more. So, that was CLRB, and now it's come all the way back down, just about. It's only up 20% now on the day. So, after CLRB hits the scanners, and um you know, we got that, you know, sort of quick little move, and then that was it.

Um going back on the scans, this was BDRX, da da da da, that was CLRB. We had SOWG hit the scanners. Um this one $20 non-convertible private placement credit facility to fund critical mining strategy. I don't know. I wasn't sure about it. Pops up, drops down, floats 14 million shares, no trades on that one. ARBB, this one, Malaysian company, pops up, a big pop from 650 to 950, and then goes red on the day, down 6%. I left it alone, wasn't clear what the catalyst was.

There's no news. TLIH, this one, no news. Singapore company, pops from 350 to 550, back down, back up, back down, but there was no news. Didn't understand the catalyst, didn't trade it. W A I, Chinese stock, no news, pops up to four, now down 23% on the day. That's a trap. There was no news, no trades. Again, I will take trades on a no news stock if it's holding up, but if it's not holding up, I'm not going to trade it.

Um, DGXX, this one has a 60, uh, 2 million share float. That to me was too high, no trades. MNTS, this one had popped up, um, you know, it's been up, uh, in the past few weeks a bit with higher volume, no interest in that. GMEX, this is the one that had the, um, order for a robot cooking machine. I don't know, that seems silly. So, said no to that one, um, you know, whatever. SKK, I just said this is a dead cat bounce, you know, you had a big move yesterday, sold off, little bounce off the low, that's all that is.

And so, there was nothing. There was nothing else to trade. And so, I was at that fork in the road where I had to make a decision, do I lower my quality standard to introduce more trades, try to recoup this loss, or do I just accept it? And with a $3,500 loss for me, after being up 46,000 yesterday, I'm just going to take the loss. It doesn't really matter. That's the thing, getting so fixated on trying to make back this money by the end of the day today.

What is that doing for me? What it's going to do is it's going to create emotionally impulsive trading behaviors. And that's going to cause me to lose money in the long run. So, you really have to develop a level of acceptance that sometimes the best trade will be tomorrow morning. It'll be waiting for it. And so, that's what I'm going to do. I'm going to wait for it. I'll be here tomorrow. And you know what? If tomorrow I I hope tomorrow's a good day.

But um you know, if tomorrow I end up having a stock that I can really sink my teeth into where I like the catalyst and I can get in the zone on, I can easily make $3,500. I mean, it's not that's not even a question. That it'll it'll happen, you know, in seconds on a good breakout. So, I just have to wait for a good-looking setup. That means I've got to be patient. So, today is a successful red day. Patience is number one.

I've got a cushion on the month. So, I'm not going to get desperate. It's not worth it. And is it going to be a no red month? It won't be. And that doesn't matter, either. So, big picture is green each week if I can. Green each month, hopefully. Green each year. Yes. Big picture. Life is good. Slow and steady wins the race. Reminder as always, you guys, trading is risky. So, please you should always be practicing the the new strategies you're learning in a simulator before you ever put real money on the line.

I'll put a link in the description where you guys can check out my two-week trial for those of you guys that want to watch over my shoulder as I'm trading. And you can also use the software uh that I'm using every single day. Thank you as always for tuning in, and I'll see you bright and early tomorrow morning streaming at 7:00 a.m.