I can't believe I missed this... transcript

all right everyone well I'm struggling a little bit right now uh today was kind of a it was another hard day yesterday was tough as you may recall from my recap today not any better I started the day first two trades losers so 0% accuracy two trades in third trade was a winner so now I'm at 33% accuracy on the day and I'm up 200 bucks all right I'm not making much progress I take another trade and and I end up losing two grand so now I'm in the red 2000 get another trade I make 2200 so now I'm back to green about $400 on the day and I slowly inch my way up to $11,000 but it was not easy as I'm sitting here right now we've got a stock that's halted up and there's a lot of Temptation for me because this is a stock that has been on my watch list for the last week and a half and it finally squeezed but what time is it it's like 10:30 it it took off a little too late in the day and I didn't have my cushion on the day so I didn't feel like I could take risk on it I did take some trades but they were tiny tiny share size and so I didn't make a lot of money so I'm feeling a little bit of fomo and I'm realizing and reminding myself the second I feel fomo I am no longer grateful for what I have what I have right now is real profit it is more than I had in my account three hours ago before I sat down today but when I say ah that doesn't matter I'm sad that I didn't get this it it's essentially losing appreciation for what you have and that's when it's so easy when you take it for granted to then let it slip away take unnecessary risk take a trade at the high of the day with too much size and then boom Max loss and that's exactly what could happen so easily and this is the beginning of the month it's still the beginning of October I'm wanting to build a cushion on October before take a lot of risk and the only way to do that is be is to be slow and steady calm cool and collected so let's look at whlr it is halted up halted up at 1393 and it's showing a 1462 resumption and so this is a major it's a major source of fomo and I'm sure not just for me but for a lot of Traders we can see the resumption Price Right Here showing 1462 look I love to see this now when this first hit hit our scan ERS this morning um it popped up right here to 8:34 and I looked at it and I was watching it right here I was like uh should I do it and I was watching the level two and it was about $8 by $834 it had pretty big spreads and I said you know what take a deep breath what time of day is it time check 10: a.m. how much are you up on the day right now and at that point so I'm currently sitting up $1,130 on the day it's a small green day this is nothing nothing to brag about but you know small green days are fine so minus 600 so I was up 500 on the day before the whlr trades which I took with tiny share size so yeah it ended up squeezing but I didn't make a lot of money on it and I just said to myself you know Ross you really can't afford to take the risk you already went red 2,000 bucks on AP uh API I then took a couple more trades on I'm down 2,700 on the name but I went read $2,000 on the day I recovered and any time you have that recovery where you go from red to Green what do you have to do you have to take it off the table and be grateful that you're not red do not overstay your welcome be grateful for it be grateful for the recovery CU now we're at a point where it's 10:30 if I jumped into this with 4,500 shares up here at the top of this candle at 9 well it hits N9 right here and then it drops down to a low of 860 you see this topping tail so you know that's a 40 C drop I'd be down two grand right back to in the red then okay it rips back up so you know in that case Redemption you're all right it resumes from the halt it squeezes up here to 1150 hits a high 1165 dips down I saw some Traders right in here it pops up to 12 it pulls back and off it goes this is great to see but what if you got a jack knife and and you have to say what if I know you got to be careful with could have would have should have when you're thinking about profit but when you're thinking about risk you have to realize that this could have done a knife it could have done a huge knife right here where it pops up to 12 and then it dumps to you know 11 or 1050 or something like that and suddenly 4500 shares you're down 6,000 bucks so I got to the point where I took four trades on this and I made $649.90 and I said to myself you know on any one of those trades I probably could have lost 600 bucks so was it worth it to have four winners of you know $150 knowing that the risk on it was $500 on each trade no it's not a good risk to reward ratio it's just not worth it but then of course it squeezes and you feel like ah shoot I wish I had could have would have should have could have should have would have bought 4500 shares at 12 now I'd be up 6,000 8,000 on the day right it's easy to always look at the glass like or well it's not really glass Out full it's easy to always be um biased that if you had taken the trade it would have worked but the reality is that's often not the case so I'm glad today for a couple things number one I had the discipline to stay within my parameters and look at that drop did you just see that Holy Smokes golly all the way down to 1260 now it's back up to the highs but that's a roller coaster do you want to take that ride I don't know that I do I'm tell I'm I'm going to tell you I don't look I would love to to be in 5,000 shares and sell only be up $5,000 but if I had a 5,000 share position on that or 4500 shares for a second there on that candle down to 1250 that would have been pretty painful and pretty scary because all of a sudden you're looking at a halt down right and now you're trapped you're stuck and it opens lower opens at 1150 right so you know I I I'm I'm glad today that I was able to hold discipline um but you know it's it's tough to see these squeeze without you there's there's no getting around it that you're going to feel some emotion when you see a stock go up 125% and you had it on your watch list and you weren't able to fully capitalize on it let's go back to the beginning of the day and we'll start with my first trade and we'll kind of break down um how this day played out so first trade of the day was at 656 on duo duo you can actually see this Chinese stock I'm down $518 on it these were my first two trades First Trade was a $200 loser second trade was a $300 loser so doesn't matter these aren't big losses but um you know starting the day with two losses is is not a great start to the day it's not what you like to see so what happened here was um as it started to squeeze up right in this area here I identified ascending support and so my first trade was a dip right here at 486 which was right off of ascending support and I think that was a great trade now it ends up going up here but it flushes and immediately I got stopped out so I I just it it drops I get stopped out and then we'll see it comes back up uh where was this um let me look at this sorry my so my first trade was actually just like a candle before I got in I got stopped out and then I got back in and I got stopped out on this one so I took two trades right in this little area here and both of them were losers so I was like all right I'm in the red 500 bucks that's certainly tolerable well within my Max loss but let's be let's be careful so that was the first those were the first two trades on Duo now the next stock I traded was uh NCI NCI I'm green on and this is one that um was strong in the after hours yesterday kind of rallying up here moving higher and then dropping popping up popping up as it broke right here I got in it and I ended up making $700 on that Spike so $757 so that's what put me from red on the day by 500 to Green on the day by 250 all right so I made a recovery a miraculous recovery all right well it's only seven well at that point it was 7:15 so then I didn't take any trades for 45 minutes and then at the top of the hour 8 a.m.

API Now API higher float I didn't like it initially I was like no I'm not going to trade it when I saw it in this area I was like no I'm not going to trade it but then I had to acknowledge that the thing was moving pretty cleanly and I pulled up the level two and I watched it through this area and I was like yeah you know what shoot that that this thing really is this is it's moving cleanly I I can't disagree and it's not easy to borrow not at light speed so even though the float was higher which typically for me is a no no I said you know what it's um this is something that I'm I'm going to have to I think I'm going to have to take a stab at so this was at six it comes back up right here um and right here is where I took my trade and and you know what this was a fine trade I got in right here at $7 it pulls back to support at 7 I bought the dip at 7 it pops up to 710 and I was like nice I held and then in this candle it flushes down to 680 and I stopped out all right well you know is it cuz the float was higher I don't know it had some nice pullbacks it had some nice action that trade just didn't work I I don't know you know it is what it is but I did trade a little outside I mean if going to be honest was not an a quality setup because of that float so I I realized in that moment I was like okay you weren't patient you took a lower quality setup and look what you got $2,000 loss so I so then I start looking at API and I'm like you know what maybe uh I think I've you know maybe I've got the right idea and and maybe this will work so I ended up taking two more trades on it actually um I took two more trades on it one was a a I don't know it was a dip somewhere in here and another was a little breakout and I lost on both of those so then I was like you know what stop pause you're trading low quality setups you've now had like three three losses on this stock you're not going to make it back on this stock wait for something that's clean so I was like all right wait for something that's clean that's good advice so Xin um this one had put in a pretty big move pre-market and it popped up and rejected so this is pre-market pops up here to eight it rejects comes down and right here micro pullback I bought that breakout over uh whatever this was here over the the volume weighted average price and on that we got a pretty nice move I made 3,000 bucks on it so I was like okay there you go float 2.4 million shares Chinese stock same as Duo same as API these are all Chinese stocks so now with that I'm back to flat on the day basically all right so I'm flat on the day or I guess I'm up 500 on the day uh something like that so you know and then we had adtx which I made $31 on which was nothing and then whlr comes up so when whlr came up I just felt like I didn't have um you know I didn't have the cushion I just wasn't in a position where I could afford to take a lot of risk and I think it's awesome that this is going higher but this is one of the problems that we have with stocks that are higher priced and have lower floats big spreads and they're not very liquid so if you wanted to take 10,000 shares of this if you wanted to trade with 10,000 share blocks that would not be easy I mean look you've got 20 cent 15 to 20 cent spread here that's a lot that's a lot in between the spread look at how fast that goes to 59 but on what volume right that the volume on that candle I mean you know I mean we're seeing you know and the light volume candle is 15,000 shares on the 10sec so I mean the volume's going through there's 300,000 shares on that one minute candle but you know just looking at it I feel like if I put a sell order out here for 10,000 shares it would just sit there if the algo would see it or the market maker or whatever and I would just wait and wait and wait now right now it looks like there's kind of a hidden buyer at 15 because it keeps coming down to 15 but holding so as long as it holds 15 you might feel like okay I maybe I'm all right on this but then if it breaks 15 you're not going to stop out at 1495 1496 you're probably going to get a bigger drop now on the upside it seems like there's a little resistance at about 1555 1565 and the high of day is 1588 given the float being so low if we break this level there's 88 but look at that so we tap the highs and then we're back down to 1540 1535 and what's Happening Here is people that just bought for that high day breakout stop out they sell on on the bid they bail out so when you see those orders in red going through those are people bailing out and now they're more people are bailing out who held a little longer than they should have and they're Panic selling so you get that Panic flush and now you look at the chart and it's a topping tail candle and it's a it's a rejection so just like that you could have lost 50 cents a share in an instant and if you had 10,000 shares I don't know that you would have been able to get out without suffering a good amount of slippage so you know I look this is probably this is one of those stocks that definitely has the potential to squeeze a $25 $30 a share I don't think it I don't know that it will but it has that potential based on the float and just based on the history of How It's traded and it's up 126% today but it has no news it does carry risk and you know for me it just comes down to this sort of frustrating um you know predicament where I like the stock I feel like I could have done really well on it but I didn't have a cushion why didn't I have a cushion well I suppose part of it because I took a trade on a Pi that probably shouldn't have taken but you know even if even if I hadn't taken that trade um I still think that um I still think I probably wouldn't have um been in a position where I would have taken much risk on it because I uh you know other aside from that I still wasn't in a great spot on the day I didn't hit my daily goal today I didn't hit my daily goal yesterday so right now just kind of you know struggling a little bit feeling a little frustrated but also trying to remind myself Hey look be grateful for what you've got there's a lot of people who work a lot longer and a lot harder and they're not up $1,100 you know in in 3 hours so be grateful for what you have be grateful for the privilege to be able to sit here every single day and trade the market you see that 13,000 share seller there at 51 so you know you get a bigger sale order like that and that's noticeable on a stock like this you know that's a that's a $200,000 order it's big you know I mean it it's it starts to become there's 10,000 share buyer at 64 on the level two so you know starting to see some bigger Traders coming out and the buyer's gone but you know you got to be grateful for what you have and I'm a big advocate of focusing on one trade a day get in get green get out don't overstay your welcome especially as a beginner when you become more advanced you start falling into you know you start risking falling into these traps where you start overtrading you go into the red then you're trying to recoup the losses so you know it takes a lot of um a lot of responsibility to be able to trade in a margin account safely it's not something that is super easy it takes time to get good at um so anyways this is where I sit today you know $1,100 it's a small green day but look you know I pulled a little profit out of the market I got a little more in my pocket than I had at the beginning of the day it's beginning of the month of October so two green days in and I just think that right now the best the best thing is for me to focus on a quality setups I had a little bit of a you know one trade that deviated and this is something I'll say I saw someone um me mentioned this in the comments you know Ross you don't always follow your rules what's what's the deal with that and I think the the thing here is I recognize that and it's good feedback because I do struggle with that at times where I set rules for myself I got my strategy these are the rules and then I deviate from the strategy and I and I I lose so it's like what's what's the deal or sometimes I'll deviate from the strategy and I'll win so then it's like and that's the biggest problem is that in the market you can get positive reinforcement for bad behavior essentially well I don't know if it's but you're getting reinforced for bad behavior essentially you break your rules but you still have a winner I could have broken my rules on whlr and had a great winner and then you're like ah H well I guess maybe I don't need to always follow that rule so you get this inconsistent reinforcement sometimes you break a rule and you do get punished you're like okay who really shouldn't trade those like I did today on API but I think the the challenge is um the market is dynamic and sometimes you have stocks that are exceptions like GameStop GameStop was an exception for my strategy based on price based on float it didn't make sense to trade it typically but I'm glad that I traded it and at a certain level I think that this is kind of this is the funny thing about um something like trading or or really Mastery over anything there's the sort of textbook way of like this is what I should do every single day and then In the Heat of the Moment things get a little squirely and you're like whoa you know or you see something like GameStop and you're like oh I'm gonna go do that and you would think uh probably you know based on the sort of written process shouldn't have done that but the outcome was was positive and if in total you know the outcome is always positive when you deviate or you know not every single time but in total when you look at all those deviations then it's like I guess that does work so then the question is at what point do you need to be in your trading career in order to deviate from sort of the the process been laid out which is really designed to keep beginner Traders safe so as a beginner Trader these it's so much more important for you to follow the guard rails and stay discipline because that's when you don't have the educated intuition to venture off and take some of these risks and you don't have the track record and the profit history to afford the losses that may come with taking some of those risks so that's something that you kind of have to keep in mind that I am at a different place than a lot of beginner Traders and a lot of things that I teach are things that I encourage beginner traders to utilize in their own trading because I want you to have the training wheels on I want you to be careful but then you're going to see me zipping around and I don't have training wheels on so you're like Ross I don't really get it you're kind of deviating out of you know the the standard sort of set of what you would typically teach for a beginner and and that's true it's not it's not wrong and there are times when even I say to myself Ross don't do this because the result is lost and then I'll do it anyways because in that moment I thought this might be the time where my educated intuition is is correct and I should take this trade and sometimes that's right and sometimes it's wrong you know and that's that's the reality of trading it is it is difficult in that regard and in total if you're going through a period where you're not following your rules and you are losing money that's when you need to go back to basics and get dialed in with like okay what is my bread and butter what can I really count on what can I really trust uh and and that's what I've you know that's what I did during the last week of uh September and today you know that trade on API I should have just waited I I I saw other people trading it other people were making money on it and I was like all right no you guys are right I mean it's obviously I feel kind of silly now saying I shouldn't trade it because look at this nice move it's from 6:00 a.m. so then when it comes back up I'm like all right you know you're right I'll I'll and then sure enough you know it didn't end up working so that's okay um it's okay to have setbacks nobody's perfect we're going to have these days that things go a little off track but it's never too late to get reentered and to get back to focus so wherever you are on the month right now it's second day in wherever you are in the month if you didn't have a good first couple days I didn't either all right so we're all in the same boat there it's been choppy it's okay we can just put that behind us let it be what it is and focus tomorrow on high quality setups trading less and really asking oursel what's the quality of the market the market through the the month of October there's no doubt that there will be some good opportunities whlr presented an opportunity today wasn't a great opport opportunity because it occurred at the wrong time of day and the price and the spread were a challenge but this was the first you know 100% move that was relatively clean and we're going to see more there's no question about it so save your risk for when we're having a day when it really makes sense to take risk when you're seeing the reward potential I think that that's the right approach for this Market um you know we are seeing momentum in these Chinese names that does present some challenge as well because you know we know a lot of them are subject to popping and then dropping Duo really challenging yesterday for a lot of Traders um halted down today it's not cooperating it's difficult it's still holding up shorts are frustrated Longs are frustrated it's not breaking out it's just sort of hanging there so that one's really tricky xhg we obviously talked about that in yesterday's recap the 90% drop that was Unreal um and yeah we're just seeing a lot of these kind of uh small cap low price stocks see the scans a number of penny stocks and a lot of them just don't feel super safe with the overall Market we're dealing with um uncertainty around the election and conflict in the Middle East which has escalated so we do have these variables that are creating some uncertainty and I think the market is very topheavy up here and there's nothing really pushing it higher but there's a lot of things that have the risk of causing it to drop uh quite a bit so that's something to sort of be aware of and I think the month of October may be a little bit choppy as we come into you know an election which is you know about a month away so that's that's going to create volatility and we like volatility but it may also create some nervousness and a bit of hesitation on the part of Traders and investors and that's not going to be as great because you want to see clear you want to see strong conviction and sentiment you know volatility is great but we want to see some uh real buying behind the volatility and we didn't really see that on whlr in fact anything this week and so uh it's we're getting ourselves off to a slow start uh but again it's only a couple days in and I'd encourage you to remember that when it's slow it often feels like oh it's never going to pick up again and then when it's hot you think wow this is so great and you you don't really expect it to cool off it's just we got used to the market we're in and then we're not expecting it to to change uh so manage your risk I think for those of you guys right now who are at a place of practicing the simulator there's a lot of opportunities here whlr you could be practicing that a ton um you know definitely just watch the stocks that have high relative volume so we look at volume in the last five minutes well top relative volume scan that's fine but also top volume in the last five minutes excuse me and you know you can see some of these stocks that are really um doing something interesting so keep an eye on you know the top 10 in here these are good candidates to be um actively trading and practicing and you know just the better you get it reading the tape reading sentiment the better the better it'll help you for when the market does pick back up you know this moving back up to a Hal level here underneath the highs this is like very high-risk area the macd is against the trade you've got a volume Divergence is it going to work it might but typically it wouldn't it's just a very high-risk trade so you know but you've got to learn those patterns that's trading is pattern recognition you learn that when this happens this happens when this happens this happens and so you you develop such a relationship with understanding the patterns and what's coming next that in a way you can start to predict the future you know to a limited extent you say oh I just saw that happen that means this is coming next so when you see a stock that um breaks out in spite of uh sort of the logic telling us it shouldn't that can sometimes uh indicate that Traders on the opposite side have gotten stubborn maybe shorts that could happen on wlr but I think that um I think at this point in the day coming up to 11 most retail Traders are probably going to be thinking I I can't tolerate the risk of this it's it's too jumpy you know trading it on a 1 minute or 10-sec chart is not realistic trading it on the five minute well you're just going to have huge stops is it really worth it um maybe it is but I think for me it's not so that's going to be it I'm going to lock it up here and what I'm going to do is I'm going to shut everything down because I don't want to look at charts for the rest of the day I don't want to look at whlr I don't want to see if it goes to $20 I don't want to I don't want to know about it because it's not going to serve me at all now when I sit down tomorrow morning tomorrow morning okay I'll take a look at what you know what stocks worked and what moved higher and whether or not they present continuation opportunities but there's no sense sitting here if I'm not going to keep trading uh because I'll just get fomo and I'll just get frustrated so that's an important exercise and discipline all right so that's it for me and I'll see you guys back at it first thing tomorrow morning