Is Being Red a State of Mind? transcript

What's up, everyone? All right. Well, I'm going to break down my traits from the morning. But before we do, let's set the stage a little bit. So, you probably already noticed that I got a little red on my shirt. Big mistake. I knew it when I bought the shirt. I was in I was on Cape Cod. This was last year. And I saw this shirt and I walked in this shop. This guy, he prints these shirts himself. I was like, "Those are so cool." But, man, couldn't you have done in a different color?

And he said, "No, this is the color I did." I got two shirts. one was is blue and then there was this one here which was the the cowboy which is you know red and I am a little bit of a cowboy you know I take a lot of risk trading from time to time I took a lot of risk today when I put on this shirt and I knew it I put on the shirt and I was like you know these first three days of July haven't been great you really want to do this to yourself and I was like it's a shirt it's not going to do anything then I go get some water fill up a water bottle this is the only one that was clean it's red my green one where is it I can't find it I don't know but I need to drink water got to stay hydr hydrated.

So now I'm really setting myself for failure. This is the problem in trading. You can set yourself up for success or you can set yourself up for failure. And I set myself up to fail today. So it shouldn't surprise you at all that we ended up having a stock that made a big move and I totally screwed it up. Look at this thing now halted up at $1067. I mean, I had a well, would you say I had a good read on it? I called it pretty early as it started to pull away that we had room up towards the 200 moving average and I got some good trades on it early on.

I got some good entries or at least I thought I did. But every time it would pop up this thing would reverse. So this is the story today. CLRO. Let's back it up on the five-minute chart. So five minute chart on this. This is a stock that just a couple days ago ended up um I trade traded pre-market and similarly it popped up. It reversed garbage and then by the end of the day it rallies all the way up to a high of $9.65.

It drops back down, comes back up, pulls back whatever yesterday, sells off. There was no trade on it, but I had mentioned it on my watch list on Sunday that it was possible that we could get a second break through this high and it could continue higher. And so this morning it pops up right here. And as soon as it pops up, I jumped on it. So my first trade on this, I took an entry and I was looking for it to squeeze higher.

It ends up going up to a high right here of 950. But I got partial fills on my order. Now, whenever I get partial fills, I usually don't sell. I just hold it, thinking, well, this isn't what I wanted. I'm not going to sell it either for profit or loss. I'm just going to hold it for a second. almost pretend I didn't even take the trade and then kind of wait for the next setup. Well, it ended up pulling back too much and I sold for a loss and I lost $1,600 on that first trade.

Is it the end of the world? No, it's not even close. But, you know, still a little bit annoying. So, whatever. It ends up popping up. We get a red candle. It drops back down right here. And I took the trade in the small account as well. And this is just a struggle. This stock just did not really react the way I expected it to. So we get the pullback, the second pullback, big rejection, drops down, kind of curls up here, rejects the VWAP, curls up, rejects the VWAP, curls up, rejects the VWAP.

And we had earlier had the stock silo, which did something similar. It had curled up, rejected the VWAP pretty violently right here, and then rolled over, and that was it. So I was a little nervous about taking trades on CLRO right around the volume weight average price. But sure enough, it ends up breaking through that level. It ends up squeezing up right here and it dips down. It comes back up here and I get back in.

What am I looking for? The breakthrough, the high a day and I catch a second rejection. So now I'm red on it a second time and I'm kind of gritting my teeth a little bit. I'm like this is a little annoying, you know, but whatever. It's fine. So I was like here, this is 9:07 in the morning and I said, you know what? I think I'm I'm done. I don't think I'm going to take any more trades on this. But it drops back down and it keeps holding this ascending support line right here.

And then it comes back up and I decide, you know what? I'm gonna get back in. And I got back in right here for the break through the flat top, right? This is classic red shirt stuff. You wear a red shirt, you make bad decisions. So rather than letting it break, prove it can hold. I just jumped in right here. And I got in at about 940. So I got in, in fact, to anticipate the break. It goes up to a high of 968. It rejects.

It drops down to 9. And I didn't stop out. I said, "No, no, no, no, no, no, no. All right. This is ridiculous. I'm surprised it didn't go there. I really thought it was going to go there, but I'm going to hold it. It comes down back to support. It curls back up. And I ended up getting out up here. I set a profit target at $10. And I got out at $10. And so I already started working on my thumbnail when I said it was a red day because I was sure it was going to be a red day.

In fact, technically, I have recovered and it is a green day. But it's a red day because I'm wearing a red shirt. It's I'm I'm It's red is a state of mind. It's so much more than just the P&L. It's a state of mind. And my state of mind today is red. So, the thumbnail stands and that the jury is that's fine. There is no jury. I've ruled the thumbnail stands. Uh, so the ruling on the field stands. So, this is the situation.

Um, it ends up squeezing up. I got my profit target at 10, held into the open. It then flushes down, whatever. I'm out. Halts down, bounces, rallies back up, and then it starts to curl here. Comes back up to this double top right here. As you could see, uh, pre-market high, this level or the high of day, then it pulls back and then it rejects here. Then it goes into a halt. So, right now, right this moment, it's halted and showing a resumption of $9.65.

Now, the halt time was 10:01.40 seconds. The current time right now is 10:06 in about 10 seconds. So, this is going to resume here in less than 30 seconds. Sadly, while I would love to see this go into a second halt and squeeze all the way up towards 12, which is around where the 200 moving average is, it, you know, it halted up at 67, 1067. It's showing about a flat resumption right now. So, if it opens, I'm worried you're going to have people that panic and sell, beginners that don't know how halts work.

It drops and then maybe you dip off this level and you get a curl. So, let's see what it does. Unfortunately, the market today just hasn't been hot enough that I would expect an immediate squeeze. But that's, you know, so we tapped a high of about 11. But of course, this is also the resistance right here, right? Broke the support level, then it's resistance. Now, will traders buy this up for the breakthrough 11? Next halt level is 1183.

If shorts start covering, you know, all of a sudden it starts to look interesting. But look at that seller that came out at 96, right? That's the problem with this stock. and it's been happening all day long. So, I'm frustrated. Uh I'm frustrated that I didn't perform better today. I I feel like I didn't trade well at all. I was red on, you know, I don't know, four out of the five or yeah, four out of the five trades that I took.

I mean, my accuracy was not very good. This last trade I held for a long time. Um you know, and got profit as it came up to 10. But today was just not easy. Um and it's kind of confusing. Yesterday was so strong. We had so many stocks were up a ton and today it was so choppy and this one just clearly has these sellers that keep knocking it down. Now, is the company selling? I don't know. Are there insiders selling? Are there warrants?

I mean, there's a number of different variables, but at the end of the day, today was not clean. And so, today shifted from, you know, a story of it being a big green day to a story of survival. And I probably shouldn't have gone back for CLRO. I mean, I don't know. On the one hand, taking a loss on the first trade sometimes happens and then the stock works. But I shouldn't have gotten in the third time. This was this was dumb.

And this area would be still dumb because it's proven already to be so risky. Now, your only hope would be that because it's proven to be so risky that shorts would feel some degree of confidence shorting and adding because they don't expect it's going to really push that much higher and eventually all the longs are going to give up and it's going to roll over with another high volume red candle. And if for some reason it just, you know, goes higher, breaks 1262, the 200 EMA, and then next thing you know, shorts are getting forced to cover, that's your that's your best shot.

But I just don't know if that's really going to happen. And I'm not going to go I'm not going to go for that trade. I'm not going to take the risk on it. I I'm just going to accept that this was not very easy during the time of day when I typically trade the best. So trading it later in the morning during a time that is already more challenging due to halt levels, breaking up the momentum, stop orders, you know, market orders, things like that.

Is better just for me to continue chipping away at the month of July. uh you know, another small green day and hope that you know, maybe tomorrow or at some point this week I'm able to catch a really nice big green trade that helps me build a cushion. But look, if I had just gotten in that for the break of 1150, half dollar, whole dollar, all of a sudden that big seller came back out and it flushes down. So, it can be really hard and sometimes the best thing to do is to shut it down.

And I probably should have walked away at like 9:07 after that loss. And I didn't want to do that because I was like, "H, you know, we still have 20 minutes to the open. I I I really shouldn't throw in the towel. Uh and yet, as I sit here and watch something, it's hard for me not to trade it if I see something moving. So, that's a level of sort of personal discipline and self-control that, you know, I struggle with from time to time.

So, anyways, that's it for me. A narrowly averted red day and I'll be back at it tomorrow, which will be day 18, no, day 17 of the small account challenge. and uh you know the big account just going to keep chipping away and try to build a cushion for the month of July. So reminder as always that trading is risky and my results aren't typical. Take it slow, manage your risk, and I'll see you first thing tomorrow morning streaming at 7