HUGE LOSS transcript

All right, everybody. Well, it is a second red day recap of the week. Today I'm down $22,580.97. That's a bit discouraging. Uh three stocks I traded S. SHPH and ZEV AI. We'll start with S. which is the um best trade of the day, the only stock I'm green on. Although for the best trade of the day, it's not that impressive. We'll begin with this, then we'll get into the others. And I think the big picture today is that uh well, I think there's kind of two There's two stories here.

One is the reality that the market was cooler today. Um it was also a bit cooler yesterday. You know, yesterday I went red um and then, you know, recovered to being green, but thanks to the SpaceX catalyst that came out at like 9:15 or at 9:00 a.m. Um but yesterday I was red, and now again today I'm red. So, the issue Well, let's begin with ZEV AI because I think this, you know, this is sort of the thing. So, ZEV AI, Chinese stock, pops up, and it's got no news.

So, you know, initially it's like, yes, we've had some Chinese stocks with no news that have made big moves in the past couple weeks, so I don't want to be totally dismissing it. Yes, there's a daily level here over 333 that gives you room into this huge red candle, and then the 200 moving average is at $10 a share. So, when it first popped up this morning, I was like, I don't know. You know, I'm just not sure. Already the scanners were pretty cold.

We'd had a few stocks that popped and dropped. So, sentiment this morning was a bit weaker. I wasn't very confident that anything was really going to work very well. And so, you know, when ZEV AI popped up, I wasn't sure. So, initially it sort of has this consolidation. It breaks out, it does a little micro pullback here, and I don't trade that micro pullback. I didn't buy right here. Could have, maybe should have, but I didn't.

Then it squeezes up a little bit higher to 420. And what I end up doing is buying it in my small account on this pullback. I think, "You know what? I'll take a stab in the small account." You know, I can't really buy that many shares over there. The volume was a little lighter, but I wasn't really worried about that cuz with the small account, it's kind of no big deal. So, jumped in with a small account and jumped out with about 50 cents of profit.

So, maybe 40 cents. Made about $1,000 in the small account. I was like, "Nice." And so, but in the small account goes all, you know, this high goes all the way up to a high of 470. And then it pulls back here, and I decide to punch it in my big account at about 445. 425, 445 was was my average, something in that area. And then it it just rolls over, you know, and I'm like, "Gosh darn it. You know, I man, it breaks four hard." I'm like, "Well, maybe I'll give it a second, see if it bounces." It doesn't, and I end up bailing out pretty low on it, sort of just throwing in the towel, capitulation.

And I look back at that, and it's like, "Well, you know, you you missed the first pullback." And this is on a 10-second chart. You know, the second pullback, got it with the small account, and was adding, you know, as it was pushing higher, but then my cost basis was too high. It did not pull away. And then it rolls over, and my size, you know, all of a sudden I've got so many shares of a it's not easy to just hit the bid without getting slippage, so I hold it.

I don't want to just bail out. I'm like, "Well, let's give it a second to see if the first 1-minute candle makes a new high." This is a 10-second chart. So, then I'm kind of switching over to the 1-minute time frame. and on the one minute chart, you know, now we end up with this sort of double top, that tweezer top, right? Which you don't like because it shows you that both times it came up there it got pushed back down.

Then down at four, it's like, okay, but we didn't even get a one minute pull I had to bail out before the first one minute candle made a new high. That was way down here. So, this was kind of a, you know, just it was a $25,000 loss. Which is more than I wanted to lose on my first trade of the day. Uh I jumped in it being aggressive. I didn't wait till I had a cushion. I kind of went with big size right away. I think part of me felt like I already had a little cushion, you know, I just got a little trade in the small account and this thing is clearly moving.

But then, you know, if I hadn't been trading in the small account challenge, that first trade would have been in the big account. So, this kind of speaks to um an element of the challenge which is not typically part of a small account challenge. The challenge for me is managing more than one account. For a typical trader doing a small account challenge, you're not doing that. You've just got your one account, you're focusing on that.

So, for me, there's sort of this additional layer because if I for the if if for the this whole month I didn't trade at all in my big account and I only trade in the small account, you know, where where would my P&L be on the month? So, yes, the small account's doing well, I'm grateful for that, but, you know, I'm sitting at $492,000 right now on the month, uh not including today. So, 475,000, whatever. This 470 something.

Um so it obviously has benefited me to try to spread my attention, to not miss opportunities that, you know, could give me some really nice trades in the big account, you know, the SpaceX IPO and some of these other ones. Um but I think this day was a similar sort of situation where, you know, my attention was a bit dispersed and that didn't help things. So, you know, look. I mean it's I mean maybe I should I'm I'm sort of placing blame where I shouldn't and it's really just my own fault.

I could have stopped out sooner. I could have managed my risk differently. Um you know, whatever, but I shouldn't have taken so much size in that sort of heat of the moment. I was like, "All right, we've got one going." I had a little FOMO. I was like, "Boom, I'm in." Looking for the squeeze to 5 56. We've seen some big moves recently. I was like, "This is the next one." And you know, that none of that was ended up being correct.

So, this is going to be um a red week for me. Uh as you can see, I'm was down 6,000 coming in today plus the 22,000 in the red. So, down 28,000 on on the week. Um you know, compared to the last 3 weeks, it's like I yeah, I can definitely tolerate a couple red days on a $400,000 green month. Um only 2 days left in the month. So, you could argue if you wanted to that um you know, I don't even need to trade the next 2 days and I can still walk away with a $450,000 green month.

Um but of course I will show up on Monday and Tuesday and um and you know, odds are pretty high that I'll end up finding some good trades. I could end up having another red day, but you know, statistically I'm certainly green more often than I'm red and so that motivates me to show up every day and um you know, capitalize on the opportunities, but today was cooler. We came to the end of the week. We didn't have any great catalysts.

Um you know, so anyway, so that was ZDAI. So, then SHPH I I didn't like the catalyst on this at all. Um it's a do- dodge dogecoin headline. Uh the only reason I traded it was because it was clearly moving higher. And so, I got in at um, right down here. Uh, however, I and I was up. I was up on this 30 cents a share, and I didn't take any off the table. Why? Cuz I was already down 25 grand on the day. You know, I was like, well, I don't want to take big size, but let's see if this one becomes obvious and keeps cranking higher because then even with small size, if it keeps grinding higher, maybe I'll lock up a dollar a share and, you know, anyways.

So, I kind of changed the way I managed the trade because of my P&L on the day. Instead of just taking the base hit, I held. It turns into a rejection, and I stopped out for a $3,000 loss. All right. Well, at least the loss was smaller. The share size was also smaller on that. And then we had S-dot. And S-dot um, was the best trade of the day. Uh, but even then, it wasn't a phenomenal trade. So, S-dot, we had this resistance.

Um, well, for first of all, this popped up this morning with no news. So, it ends up going from eight to 18 with no news. Comes all the way back down, bounces, and then it's just on the backside. Bounces up here at like 7:30, sells off. Comes back up here, and comes back up here, and then right here, I said, "You know what? I'm going to punch it. I'm going to take the trade on the break of 10 because if we can break over VWAP, we break the high of this level, then we're starting to look for a move a little bit higher." And in a perfect world, uh, this would have squeezed up, halted up right at the open, and gapped up to 13, 14, and maybe we'd get a move, you know, back up to this level.

So, that's what I was going for. Um, I ended up taking uh, my trade on it. And similar to the trade on SHPH, I held it for much longer than I typically would. I took my starter down here at about 10, added at 10:50. It pulls away. I end up adding for the break of 12. Cost basis now 11:50, and it goes up to 12:50. I don't take any off the table. I'm holding the whole thing. It dips back down here. It goes up here. I'm looking for a halt up at the open.

It doesn't. It comes back down and I sold the whole thing for a $5,800 or or profit. At most I was up maybe 13,000 on it. Maybe a little bit more than that, but it didn't end up pulling away as I hoped it would. And since the open it's just been a grinder. This hasn't been anything that I really feel like I missed. So, I would say my biggest challenge going into next week is you know, making a decision about how I focus my attention.

Continuing the small account challenge will mean that you know, I'm continuing to sort of trade two strategies at the same time. You know, one is small size, lots of base hits, just you know, add add a cushion and build profit. And the other is more of when it looks good, size up really big for, you know, five figure, six figure trades. And some sometimes the right entry on those is is at the same time or is you know, it's just not lining up.

So, I'm not able I focus on the small account and I miss the the window on the big account and then I chase in the big account and and lose. Or I take the trade in the big account and then I don't get anything in the small account. And then I feel like I've, you know, sort of taken a loss there in a way as well. So, I don't know. I suppose when the market is really hot, as it has been, really up until these maybe last couple days.

This week is a little cooler, but if the market was really hot the way it had been, there's sort of enough for me to not be super efficient cuz there's more opportunities and maybe I get one or two trades in the small account then I put that on the shelf and then switch to the big account. But this week has been fewer opportunities and so I've ended up trying to trade the same stock in both accounts and that has worked at times very well and at other times it's been very unsuccessful and so that I suppose big picture net both accounts are green on the week be green on the month not in a week but green on the month so you know what what I'm doing seems to be working you know it in the big picture scheme of things and maybe I just can't get too bent out of shape about little you know days like today where I'm kind of fumbling cuz that's maybe just the nature of the way the way I'm trading right now and and trying to do two things at once so I have to try to give myself a little bit of forgiveness for the fact that you know I am on my traveling trading station I have been dealing with some internet computer issues and you know trying to manage small account big account da da da da and the market's cooled off a little bit so should I spend the weekend sulking and you had a red week you're down 28 grand on the week or should I say you're up over $450,000 on the month say you gave back 28 grand who cares you're up 450 grand big picture cut your losses right now and take the 450 grand and say it was an amazing month right the glass is more than half full and that perspective is important because even if you're not trading numbers as big as these you're up 4500 on the month you know but you lost 200 and you know 50 on the last you know I mean that's essentially the same the same numbers, right?

So, you're up 400 4,500 on the month or 40 almost 5,000 on the month then you lose 500 or you know, 250 on the last couple days. Yeah, all right, I get it. It's it's discouraging, but you know, you've had a great month. Don't get too fixated on these little bumps in the road. Don't make a mountain out of a anthill, right? Just Yes, we we are going to be a little bit perfectionist about this and beat ourselves up when we're not trading as well as we know we could when we make sort of unforced errors, but this is trading is very difficult and there's no one in the world that's going to be trading without making these types of mistakes from time to time.

You almost shouldn't even call them mistakes because they happen so often. It's just a feature of trading that periodically these things happen. So, when it's your turn to take that loss, you take it, you know, you roll with the punches and you move forward. It's all you can do. Yes, it's good to learn lessons. It's good to you know, try to if you've made if you've done something really catastrophic and really made a huge error in judgment, it's important to retrace your steps and figure out what went wrong and what you could do differently and try to minimize how often these days are happening.

And I would say today that if I really want to minimize how often this type of day is happening in my big account, I would probably stop trading in the small account. But I don't feel that the loss is so big that it warrants that at this point. And you know, look, maybe Monday, Tuesday, I could just focus on the big account and you know, and try not to let myself get distracted um or you know, I could just trade in the small account and put the big account on the shelf for the rest of the month and say, "You know what?

The big account had a good month. It didn't finish the way I wanted it to, but it was a good month. So, let's just put that in the history books and start over in July." I don't know. I've got some time to think about it, but uh nonetheless, today is um not an exciting end of the week, but I'm grateful that it's been such a good month. And um you know, one thing I'll mention, we had Q U N C Y or now Q U's C Y that popped up, and they had news about a SpaceX equity stake as well.

But, the headline was that the board approves the pursuit of one, which is very different from I L L R, which announced a $400 million um stake in SpaceX. It's very different. So, it's important to make sure um you understand the differences because they have a significant difference in what the price is going to do with the stock. I L R went up 600% 700%, whereas um Q U C Y uh actually, you know, basically has done nothing.

Because the board approving something doesn't even mean it's even going to happen. And if it does, what's it going to be 10,000 shares or $10,000? Who knows, right? You know, uh it's uh until we have actual numbers, it's hard to assign true value to what that's going to mean for the company. So, for those of you guys that struggled today a little bit, you're not alone. Uh but, the good news is the market opens again on Monday, and there will be more opportunities ahead.

So, rather than getting bent out of shape about today, let's focus on moving forward. And I'll see you guys back at it first thing Monday morning streaming at 7:00 a.m. I'll remind you as always that trading is risky. My results are not typical, so please manage your risk by practicing in a simulator before putting real money on the line. All right, with that, I'll see you guys bright and early Monday morning.