Day 9 of My New Small Account Challenge | Recap by Ross Cameron transcript

[Music] what's up everyone all right well today is friday and it is my ninth day of the small account challenge over the last eight days i've had eight green days in a row i've grown a account from about four thousand three hundred dollars starting balance today was around fourth ah sorry six thousand seven hundred dollars so account's been up about fifty percent and my daily average has been about uh three hundred dollars a day but as i've said right along during this challenge my results are not typical most traders out there will find themselves on the other side red each day consistently struggling to find profitability for a variety of reasons today is my first red dead in the small account i'm down 327 dollars approximately so i had my first loss uh and it's a little disappointing you never like to finish the week on a red trade but yeah hey what can you do it is what it is um the critique that i would have on my trade today was that i should have sold it a little sooner you know i got in for a five minute bull flag setup which is a standard pattern it wasn't a perfect full flag but not all patterns are picture perfect and that's okay it was on the right stock i think to trade it was the leading gapper with high relative volume had just made a big move and i bought that first candle to make a new high i was up about 20 cents and then uh it reversed and dropped almost a dollar a share and i lost 300 bucks so i wish i'd sold a little faster one of the things with free market is that you can't use stop orders so for instance my stop at break even which is a hotkey that i like to use i can get in a trade i can press once i'm up 10 or 15 cents i can press stop at break even and if it comes back down i'm out flat but you can't use those pre-market so you got to just really watch it closely unfortunately it flushed in one 10 second candle 50 cents and the next one another 50 cents and just like that i was i was faced with cutting the loss uh i did not exceed my risk parameters on the trade i didn't lose more than i am comfortable losing which is good my daily max loss is 10 of the account in one day so with a 6700 account about 670 dollars of max loss so i uh lost 330. it's about half of that so about a five percent loss on the account today giving back about one day average profit over the last eight days that's all acceptable again i think it's good to critique the trade and say what could i have done better and turn the loss into a lesson and the one thing that i wish i had done was cut the loss a little bit faster so i got to be a little bit better about that going into next week but i don't have anything else really to say about the trade it was a good quality seven that just didn't work and it's a good reminder that there is no holy grail in trading there is no indicator that's right 100 of the time there's no setup that works of the time losses happen even to the very best traders even uh long-term traders and investors the billionaires out there they have losses too being in the market is not about not losing it's about knowing how to lose quickly gracefully cut the loss quickly and move on to the next opportunity and so i'll do the recap today i hope you guys enjoy it hit that thumbs up please as always my results are not typical and trading is risky so i encourage you number one not to blindly follow me or anyone else and number two trade in the simulator before you put real money on the line i hope you enjoy the recap and i'll see you first thing monday morning hopefully we see uh some better follow-through in the market to start the new week all right see you then [Music] what's up everyone alright so um i'm gonna do a recap small account day nine and today's the first red day in the small account and it's not a small red day unfortunately um it's not huge but it's bigger than i'd like i guess actually uh based on what we're looking at from the last um eight or so or uh nine days my daily average was around three hundred dollars a day three hundred i thought it was around 328 dollars actually so basically today's a loss where i'm losing um one day of average profit which is acceptable my max loss that i had set for myself was to not lose more than 10 percent of the account in any one day all right well uh i didn't catch a loss that big but you know the account this morning started at six thousand seven hundred thirty six dollars and forty seven cents so i'm down five percent and it's a good size loss and it happened early on sckt this was our leading gapper and i bought a a fairly typical bull flag set up here first can we make a new high now this had a little bit of an issue which was that it was extended it was a bit extended at the time of the entry off the nine moving average uh the news on it you know was there was news out but it was out after hours yesterday sometimes that can be a little bit of a problem when the news is out the previous day uh pre-market doesn't always continue well but we had this really nice move here and the first pullback got bought up nicely and so i thought this looked good i would say the only failure in this trade was not exiting faster i think that's the only thing that i could have done better um it popped up right here as you can see and i got in at 79 oops so my orders um right there so i got in at 1479 with um it was 414 shares i guess yeah for 414 shares so i could have gotten in a little earlier on the one minute sort of 10 second micro pullback here as it broke through this descending resistance um i got in at 79 so i got in a little higher it's not too bad it was the first five minute candle to make a new high and it went up to 1506 and i didn't sell because 1506 um to me was okay 1506 let it pull back and then look for a break over 1506 15 10 15 and i was thinking maybe 15 50. this actually didn't have any resistance on the daily chart until 1862 so i was like this this looks good to me well sometimes they look good and they just don't work and in this case it rejected and one of the things about trading pre-market that is um that's riskier is that you can't put in stop orders so you know perhaps i could have put a stop at break even and i could do that on a trade um you know that i take like right now during regular trading hours but pre-market you can't do that so i didn't have any stops on it and um in this one candle it it flushed down to 14.50 and it it happened fast and i thought okay um well let me just give it a second you know let's see if it pops right back up and in the next candle it drops to 1390 and then as it pops up here this is where i sold i sold as it popped back up off of the low of 1390 uh or 1380 and i sold it 14. uh and it ended up going a bit lower from there and it did rally back up um but never back as high as my entry so i definitely made the right decision to cut the loss um it's come back down even more here so it was the right decision and the only failure was not cutting it faster and and you know honestly that's just part of the deal with trading sometimes you catch a big flush and you just it's a 10 it happened in 10 seconds you just you do the best you can but you can't cut it any faster than you did and um so so that's my that's my loss that's my my one trade of the day and because i'm capping myself at one trade a day the day is not going to get worse it's not going to get better but it's not going to get worse that's my one trade and that's it down 327 dollars and six cents before commissions probably 330 or so after 331 and excuse me you know most importantly living to trade another day when you have your first loss in a small account it's scary because every day counts every day has to count and so having that first loss is um it's a scary feeling you know you're starting to move in the wrong direction and the the best way to make that feeling go away well i won't say the best way the fastest way to make that feeling go away would be to take another trade and get green and finish the day green because then you you're back on your hot streak you feel good again unfortunately if i've gotten back in this um i'm 99 sure i would have continued to lose money so you know it just wasn't strong and this was our leading gapper and that honestly set the tone for the rest of the day for everything else well so far it's only 10 am but so far 9.50 um so sckt went down a core this one popped up and then rejected really hard so today's a day where we're not seeing follow-through um but some days are like that and that's just the way it goes uh the account is green on four out of five days this week and it's green on eight out of the last nine days and uh i'm gonna be sitting uh in pretty good shape on the account yeah no it's a drawdown so i'll be back at about 6400 uh on monday but 6400 is um still great progress from the initial starting balance and what's really important is just getting through that first red day you know having the right day happen putting it behind you and then beginning to rebuild so you know that will be monday and tuesday of next week beginning the process of slowly rebuilding the account i think this um in in terms of other small account challenges that i've done i've had red days early on yeah so this isn't really atypical it's actually probably more unusual for me to have eight green days in a row in a small account so um so it was bound to happen and it just happened to be today and it was friday but i'm not going to beat myself up over it it's not a catastrophic loss it doesn't blow up the account it doesn't even exceed my risk tolerance for each individual trade or for the day so it's an acceptable loss yes i could always say i wish it was a little smaller and i think that that speaks to the desire to improve and to get better but you know that's that's a healthy criticism of a loss i could have cut it a little sooner and that would have been smarter and you know i can work to do that better on the next time i'm in a situation that's similar so that's all you can do try to learn from your losses turn them into lessons and then start rebuilding one small trade at a time you know it may take two or three days to make back that 300 loss if monday and tuesday are a little slow but i have no doubt that i will make it back and so one of the things that i always look back at and i do this it's a big confidence booster and i showed this to you the other day um i look at my um my metrics you know from the last week or whatever it is and i say okay this is where i've come from so right now today i'm going to be in sort of this little dip right here you know i just took a little bit of a loss but i'm still the trader who had this streak right here and i could do this again so what was i doing during this period i was focusing on one trade a day eight quality setups now i took one trade a day today it was a good quality setup no problem with that it just happened to be a loser that's the way it goes so that speaks to the fact that even the best traders are only right you know 65 of the time 70 of time i was due for a loss i got the loss and um that's fine i'll be back at it on monday continuing to focus on one trade a day eight quality setups and i have no doubt that i will recoup the losses but i don't want to think about it as you know trying to make them back it's just taking a loss and then moving forward so i'll move forward and probably continue to average if i can to 300 a day and keep growing the small account so uh that's it for me it's a little bit of a disappointing finish to the week i suppose all things considered but that's the way it goes and i'll see you guys first thing on monday morning all right i'll see you then and that right there was an entire video with no ads i don't monetize my youtube channel with video ads which means you guys get to enjoy the content but do me a favor please hit that subscribe button and give me a thumbs up and let youtube 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