MAX LOSS - My Worst Day Since March transcript

all right everyone well today is a red day recap but it's not just an ordinary red day recap today is a Max loss red day my first max loss in almost two months very disappointing I had a setback and I was on such a nice run now today it's not just max loss it's also a day where I spiraled the loss got probably five times bigger than it needed to be I got emotional I dug my heels in I got stubborn I lost my discipline I lost my composure I did not stay cool Comm and collected things unraveled today and it happened very quickly for those of you who tune in every day I thank you guys as always for being here and I hope you hit the thumbs up for the red day recap because I know that you guys get a lot out of these red days now the Green Day Recaps are great and of course I'm doing a recap every single day so you're getting the full picture but on the red days you get to see where I'm really kind of challenged and sometimes where I'm at my worst which I hope for you is a reminder that even after Decades of experience we are still just human trading is very difficult because of the emotions and that's where I got tripped up today I had a trigger and I didn't really recognize it in the moment and then next thing you know I had actually crossed the point of no return I'm usually a lot better at recognizing those triggers and and responding but today got the best to me so we'll break it down we're let's go go ahead and jump onto the screen share I I suppose we'll begin uh today in this recap with my first trade of the day which was on benf and this was also the stock that triggered me so it makes sense to start here we've I have four different stocks that I traded and uh miraculously I am red on all four I have based on being green on anything I have 0% accuracy now I did have winners today but in total I'm red on four out of four stocks I traded so clearly things went wrong and it's not not that there weren't opportunities today the problem was up here all right so let's look at benf first trade of the day um I sat down this morning a little after 7 a.m. and at that time we didn't have a lot that looked great on the scanners to help get you oriented my routine every single morning is to sit down and look at the scans so I've got my scanners right here and nuvoo is right now the top scan which is um which is fine but earlier this morning let's see see our leading gappers uh where's this popping out for me here it is all right so our leading gapper was xbp now xbp for those of you guys who have been trading the last few weeks it's a very thickly traded stock it's a grinder when I say a grinder I mean it it moves but it it it's like it's like trying to run underwater it's just like really lethargic but I mean it over time it does make moves but it's not easy to day trade so this was our leading gapper today did not like it whatsoever um I'm going to back out of this zoom in here so did not like xpb whatsoever so no trades on that one second one prft no trades on that SG this was just choppy and you know that was sort of the top of our Gap scan so the fact is today we didn't really have an obvious gapper and perhaps that was where I made my first mistake because I ended up trading benf now benf made a big move on Friday it went up 577 per. so we had this huge move Friday and yesterday um when I uploaded my game plan for the week ahead I said that this would be something to watch today Monday morning if it got back up around 8 or 9 because then I'd be watching it for a retest of what level yesterday's high and so this morning when I sat down and saw it had popped up to 10 I was thinking all right we've got something to work with here so it ended up going more or less sideways um and starting to pull back around 7:30 so I was like well maybe this isn't going to work it's below vwap but you know I was thinking it does look like kind of a continuation setup and we just need to get over vwap so my first trade on this was at 8:30 about 8:32 we didn't have any other news at the bottom of the hour and then all of a sudden I saw some volume coming in right here and as that volume started to come in I bought at about 815 8820 and it squeezed up to 825 835 845 up to 850 actually hit a high right here of$ 881 which is a great move I locked up $1,600 on it now it ended up rejecting off of vwap not super surprising and coming back down but nonetheless I got myself in the green I broke the ice today now I did it on a stock that was not one of the leading gainers but was a continuation setup little cautious about that but you know in any case no real issue with that trade that trade was fine I then uh switch gears to tcbp tcbp popped up on the scanner at about uh what time was it it was about 8:30 as well um and so I sort of missed the beginning of the pcbp move and then I jumped in as it was pushing higher but I got in on this micro pullback right here and actually lost 40 bucks on it so I was this was ended up just rejecting and coming all the way back down to 220 so I'm like whatever no big deal um you know it it's fine I did get a dip trade on it and got myself back to up like $130 or maybe 230 something like that um but it it still was really negligible so nothing nothing super exciting on tcbp so coming into the open I was up about $1,500 and I had um be NF on Watch and right at the open it squeezes up and this is what I was looking at I was thinking man if this thing can break over volume weight average price right here well the vaps right here if we can break over this pivot then we're looking at this move here we're looking at a retest of these levels we could see that move back to 13 and that's what I was thinking so I ended up jumping in it and this was right at the open and it rejected hard and I honestly was surprised I bought, 1500 shares at $865 and it dumps down here and I stopped out at 774 it goes all the way down to a halt um however so in that one trade I lost a dollar a share over nearly a dollar a share on, 1500 shares I was back to flat on the day but at as it was halting all of a sudden the level two started to thin out it looked like it was going to be a false Halt and I added right there I was like okay here we go I think it's going to spring back up false halt but I was wrong it actually halted and it resumed lower wow so just like that I went from up you know, 1500 on the day to Red 2000 right there I'm red 2000 so I lost lost $3,500 on that move right there and that was a trigger that right there if I could have would have should have I wish I could go back and walk away right then and there now at that moment I was you I was kind of like taken back I was like that was ridiculous like man that was nasty that was a big FLH and I was like okay you're down two grand um but it's like 9:35 9:40 like it's still very early um and I was sort of feeling like it's too early for me to like throw in the towel you know like I I just don't feel good about walking away this early mostly because I was thinking about the members in the community I was like I feel bad walking away this early you know so I was like I'm just going to I I was like I my self assessment was that I thought I was good I was a little I was annoyed but I thought I was good so then uh around 9:45 tcbp pops up uh curls back up and as tcbp curls back up I was thinking okay here we go we're coming back to three so I got back in right here it and this was on a little micro dip it hits three and then Rejects and I lost like 600 bucks so now I'm down 20 I think I was down 2,800 let me get my whiteboard here so now I'm down 2,800 bucks and um oh my camera's off I'll let me switch back to this one so I'm down 2800 bucks and my day is starting to unravel so I like to sort of draw this out for you on the Whiteboard so you can get a better sense of what this looks like so start of the day at zero uh well let's start let's put zero up here um got myself up to um plus about 1.7 1700 um roughly that was a weird way to draw okay it's fine um and then boom I go to minus 2K right there and then I'm at minus 2.8k so now I'm starting to move in the wrong direction and I said I'm like all right guys I'm r on both stocks I've traded this morning like I've got to be careful but at the same time we were seeing some big moves we just saw tcbp pop up we saw sge pop up um sge ripped here right around the same time around 950 and it halted up and then we saw N I think no no no no sorry um Nuvo this one starts to pop up so I'm like thinking to myself just hold it together we've clearly got some momentum you just need to like sort of regroup and Mi I halted up Mi so this one was halted up and it resumed and uh I watched it on resumption right here it resumes at 880 and I bought 2500 shares at 885 for the squeeze through eight and the next candle it dumps to 680 it dumps to 680 look at that that's ridiculous so now with 2500 shares now I'm down about 4,800 and I'm thinking all right I was actually $4,500 and I had $500 on Max loss I was like this is not looking good now someone said Ross did you bring your share size back down to your 5,000 share cap after you drop back below a th000 bucks and the answer was I didn't I didn't even think of that until someone mentioned it which is like kind of shows where I was at like in my head so when I took um this trade on tcbp it was with um 7500 shares so not a huge position but whatever this one here was with um 2500 shares which was within the $5,000 Max loss but uh then my next trade was on nuvoo and I took that with 7,500 shares as well so now I'm starting to trade a little bit more aggressively nuuvo and and Tra trading aggressively into a draw down is what's going to sort of create that spiraling so on nuvoo this is around um let's see so I got in um 7500 shares right here for the break of five and it rejects drops down to 440 so I lost uh 20 let's see at that point I was down um 6,000 6,000 in the red so I lost another 1500 there with 7500 shares at that point I was like okay I just crossed my $5,000 Max loss minus 5K I've got to shut down and walk away and so I turned off the computer oh well I I actually didn't turn off the computer I turned off um my I I I shut things down but I left the chart still up so my chart was still up and I kind of Switched gears and was doing something else for a few minutes and then I hear my scanner go off as this starts to hit 650 and 7 and I was like you know this is ridiculous unbelievable so I end up getting back in and look at this jack knife right here massive jack knife goes to 780 almost eight rejects back down then next thing you know it's back up to the high there's another rejection right here it keeps going pulls back a little bit and now I'm just fully focused on it and I lost on that setup right there trying to take the break of 750 for the retest to the high and I lost um again final loss was somewhere in this area so I really got sucked in and I I didn't have any it was like I didn't have a I don't think I had a single winning trade on nuvoo just crazy it's ridiculous so I ended up um continuing to trade I went down minus 7,000 and then I finished at minus 9,000 so I'll put the p&l up here so you can see I'm red on four out of four stocks I'm down $897 82 and um I broke some rules today I broke my rule of trading past my Max loss when I was down 6,000 I was I was actually I was starting to do my recap I was like I'm going to start my recap here and then I kind of looked at it and that was right in here I so I sort of took this break and then I came back and I was like okay I'm going to do my recap and I was like well wait a second this is looking decent it's popped up it's pulled back it's consolidating this looks decent well rejection you know now another rejection and and then I was sort of still sitting here watching and then I got um it was this rejection right here it's like I still I just still kept thinking to myself that this is going to go like it looks good and and it it kind of did um until like sort of right here when it broke down and the thing is I just kept losing I mean I just kept losing I I and I think for me the whole idea of having a Max loss is to cap your draw down now in hindsight I'm wishing I walked away today when I was down 2000 when I went from green to Red that's what I wish I had done right I wish I had walked away there I lost an extra $7,000 more than I needed to now on Friday I was up like 5,500 so I just gave back everything I made on Friday Thursday I was up I think 2500 I gave back everything I made Thursday m Wednesday I was up like 2,500 or something like that I gave back all of that G I just gave back basically three days of progress three and a half four days of progress in one day and considering I had 27 days of having really nice discipline giving back three days of that progress is like feels like 10% and that's kind of what I'm thinking is like I just gave back 10% of what I've made in the last 30 days since my last draw down um and and so if we actually look at um we look at that that's that's kind of what started to get me even more triggered because I was getting ready to do my recap and I was like all right well you know you had these red days back here this was a $10,000 red day this was a $20,000 red day this was $6,000 and I was just like man I really don't want to have a big red day here may maybe this thing does look good maybe I maybe I can cut my loss in half not go back to green but just make it more moderate cut it in half but well nope couldn't happen so I'm going to have a red day like that and it's disappointing because then when I thought about that in this context I'm thinking you're having a bigger red day then you've had green since you know way back here that feels that doesn't feel good when you I mean when you look at it like that it doesn't look good doesn't feel good and you when you look at it sort of here it's like you've made nice progress and then in one day you know you're you're taking a decent drop down so if you choose to look at the glass half empty you will see it in that light and you're not wrong to look at I mean you're not incorrect In what you're looking at but it's the perspective so after that final trade I was like okay I definitely let's be real have spiraled you know at first I was kind of like I don't know it's you know down 5,000 down down 6,000 you know it happened really quickly and I was you know the Market's I don't know I don't know if I really spiraled but then after I broke that Max loss Rule and then was still trading with big size I was like no you you got to be honest with yourself here this was a this was a setback so two things that I'll say number one I want to talk about how I kind of pull myself out of the fun and then I'm able to do this recap right now and and move on for the rest of the day and and rebound tomorrow and second I want to talk a little bit about you know sort of the context here so I still had 27 days in AOW row right here where I had discipline every single day and although I had three red days in that period they were moderate they were small and they were successful red days today could have been a successful red day if I closed without breaking my rules but I broke my rules I increased my share size when I should have been decreasing it and I traded past my Max loss and I traded in spite of the fact that all my sort of indic ators were telling me I was moving in the wrong direction so okay so today is going to be a loss but if we look at big picture am I positive in the last 10 days yes am I positive in the last 20 am I positive in the last 30 yes and that is because for 27 days I maintain discipline I don't know that there's going to be a Trader out there who can maintain a discipline streak of 100 days 250 days for the whole year 500 Days for 2 years 750 days for 3 years because we are human these emotions creep up on us and when they hit us and you know we can be trying and have our guard up as much as we do but then next thing you know you have a day like today where it happened so fast really it can be just a momentary lapse of judgment and next thing you know you're spiraling and that's what happened to me today and that's the reality and the difference between me and a beginner Trader is that these days are far enough apart that I have profit in between them that's the biggest difference when I was a beginner Trader you know what was happening to me I would have you know just for instance um three four weeks and then I'll just do this in Black i' give it all back and then another you know two three weeks give it all back and now I'm going into the red couple more you know stretch here whatever and so basically in total I was plus or minus zero right I did this for 24 months two years now the first year I came ahead the second year I was negative but more or less this is what was happening for two years for me more than two years it was just predictable like every six to eight weeks I would have this type of day where I would give everything back and and it well it's even more frequently than six to8 weeks so the biggest difference difference between then and now would be I mean there's a lot of differences but one difference is that the losses are further apart and during the in between periods I'm making more progress during the periods when I am disciplined I'm making more profit and a and even on the days where I do have these um losses they are generally they're generally tolerable today is a little bit of a bigger red day at 10,000 um you know $910,000 red days are a little bit bigger for me right now but if we look at my p&l just since 123 um maybe we could even do 22 I'm going to go over here to detailed I'm going to go to win loss expectation and what this is going to show down here is my draw down so I had a $100,000 draw down in January of 2022 and then I had a um you know $40,000 draw down another $440,000 draw down but going into 20 end of 2022 my draw Downs were in the range of 20,000 and I pretty much have kept them there except for this one uh in March where I went down 30,000 but for the most part my draw Downs for the last year and a half two years have been in the range of a $20,000 draw down so being down 10,000 here is not uh right now like kind of bucking the trend of of a normal draw down I just have to be very careful tomorrow that I don't lose another 10,000 because then I'm instantly at the sort of bottom of my draw down window which is sort of 20,000 I don't want to you know again I don't want to start having draw Downs where I'm going deeper and deeper unless I have the profit on the other side that can kind of balance it now this is I don't even know why it shows a positive here it appears to show positives because that's not the way way obviously My Equity curve looks This Is My Equity curve at 1.6 million in the last two and a half years or two years whatever it is since January 2022 so you know just slow and steady whatever and then this is the context this right here is where I had this draw down so when you have that context that's when it's like you know what we're good this is not let's put it in context the glass is I would say half full right it's more than half full life is good there's no reason to get bent out of shape so how am I able to do this recap and go over these trades and this loss as relatively calmly as I am so I have already on Deck a guided meditation on releasing anger uh and I have that in my um in my notes to do on a day where i'm really like where on a day where I spiral because I don't want to be miserable for the whole rest of the day and I don't want to continue spiraling I need to stop the bleeding now I let myself bleed out a little too much today I I I just kept thinking like this was going to give us that next leg up and I was like I can cut my loss in half and it just kept getting like a little bigger a little bigger a little bigger now one thing I'll say is that in the past what I've done is I've had red days where I go from minus 2,000 to- 4,000 to- 8,000 to- 16,000 to - 30,000 the losses keep getting bigger and bigger that didn't happen as much today um I I I didn't I I I could have I could have started taking 15 or 20,000 share positions and I didn't so even in my emotional hijack today I had a degree of self-restraint um in contrast to the emotional hijack I had back in February I had a day where I or back in March I had a day where I was using all my buying power I was being very wre and aggressive and I could have gotten destroyed on that day I mean well I did lose 20 grand but I could have lost a lot more so you know so today all things considered if if I was going to rate my spiral days on a scale of you know 0o to 10 10 being my worst day of my career um I would say and and spiral being anything where I am actually breaking rules I would say today's probably like a four or five five you know being down 10 grand is not good um but it could have been a lot worse and I I walked away and I've stopped now so you know those are those are some things that you should give yourself a pat on the back for if you if you have those they're small victories so anyway so I did my meditation and that helped me kind of reset release that anger and helped me kind of put perspective around the fact that a week from now I'm not even going to remember today good weeks I'm averaging 15 to $20,000 so this if it ends up being a good week for the rest of the week could still end up being a green week now it might not might be a red week at the end of the day over the course of months and years it still doesn't matter but the losses is manageable it really is you know it's bigger number for perhaps many of you but for where I'm at it's manageable and I think that that's important to realize I wish I had stopped sooner and I have to be extra careful tomorrow because now I'm kind of need to rebuild that streak of discipline what's most disappointing is that I blew my streak you know I had this nice 27 day streak of discipline and then all of a sudden today just kind of you know it just happens the the red to Green move the green to Red move is what got me happened like that and then I jump into another trade and now it's like 9:45 10:00 a.m. it's starting to get a little later in the morning now I'm down 2800 4200 and just a crazy rejection and now I'm like at five nearly 5,000 but I'm like I might be able to cut the loss in half and then I'm down 6,000 might be able to cut the loss in half I'm down seven might be able to cut the loss in a half down nine all right all right okay and now it's like I've traded past Max loss and kind of you know made those mistakes so it just happens very it can happen very quickly and this is the reality of trading again the difference between a beginner Trader or me as a beginner and where I'm at today is that the time between these sort of moments of uh lapses and judgment are longer and uh the profits I make during those periods are bigger so I can stomach uh the red days when they happen and the spiral days when they happen because they happen because this is trading and it's hard and this is why a lot of people won't succeed because I can give you the rules the system and everything else and even I still sometimes struggle to follow it so as a beginner if you can't follow the rules of the system to a te you're going to struggle and naturally as a beginner you're also going to struggle with poor accuracy just because you know you're getting started accuracy does improve with time that's when you start to get more space between the losses but um you know but the days where you get emotionally hijacked I mean that's that's going to be within um you know it's within your control to have the discipline but you just know every now and then it's going to creep up and it's going to happen again so today it happened I'm bummed out uh but I'm also also um you know at this point ready to shut it down call it call it a red day it is what it is and live to trade another day no reason to give back any more profit uh on a day like today when clearly I don't have um my the focus that I need to trade well all right so I want to thank you guys as always for tuning in I know you enjoy these red day Recaps and find them helpful so I hope you hit the thumbs up I hope you're subscribed to the channel and um I put a link in the footer um for our twoe trial at Warrior trading I I know that's you know watching me losing money is not maybe the most motivating I suppose but um in any case if you want to watch over my shoulder while I'm trading and see how I recover uh over the next uh two weeks we love to have you join us it's $20 for two weeks so come on over check it out and I'll see you guys back at it first thing tomorrow morning all right thanks as always and I'll remind you as always that trading is risky my results aren't typical and there's no guarantee you'll find success whether you trade with me or you learn on your own so manage your risk take it slow I'll see you back here tomorrow