MAX LOSS RED DAY (mistakes were made) transcript

All right, guys. Well, it's a red day recap. Max lost today. Same as last Friday. Very actually very similar to last Friday. And it's worth digging deep and kind of looking at the pattern that I'm in right now up here with the emotions because this month has been a roller coaster. Big green days, which is great. No one's complaining about those, but big red days as well. If we jump onto the screen share, we can start breaking it down.

I traded three different stocks today. I'm red on two of the three. This is my month so far before today. So, as you could see last week, you know, I was having a great week until I lost 73 thousand dollars on Friday, making it the biggest red day of the year so far. Then Monday, Tuesday, Wednesday, Thursday, had an amazing day on Monday, made 84 thousand dollars. Tuesday, solid. Wednesday, solid. Yesterday, Thursday, I was up 37 thousand dollars and I gave back 25 grand on my last couple of trades.

That's not great. Today, I sat down and I broke the ice. The first stock I traded today was W E T O. And on W E T O, I got in this for the break through the volume weighted Sorry, the break through the double top. We had this double top right here and I bought right down here at about ten dollars and 35 cents for that squeeze through the high. And we got to move all the way up to just under 12 and I made 25 thousand dollars on that trade right there.

Looking back, I wish I had just taken it off the table and said, "That's it. I'm done for the day." That was awesome. Right there, I was in the driver's seat. Now, the stock ended up pulling back, dipping down. You got the squeeze later. We'll talk about that in a minute. Things kind of shifted and momentum moved over to STKH. STKH just popped up recently. Just a few days ago it popped up, squeezed up to about six, pulled back, and then at the open ripped up to $8 a share, $7 a share.

So, we had this level at seven that I was a little bit worried about. It's an Israeli company. It's not a Chinese stock. And so, I I wasn't sure that it was going to work cuz it was a little off the theme. However, I did go ahead and jump in it. And I jumped in this we had this initial rally here up to seven, which was really nice. We had this nice big move. And I took my first entry on that just under seven right down here.

And we got this squeeze up to 750 and up to eight. And I locked up about $10,000 on it. It was It was more like $8,000. I was up 32,000 on the day after that trade. It pulls back here. It comes back up. It pulls back here. And as it curled right here, I punched it. And I bought 45,000 shares looking for that squeeze up to 950. >> [sighs] >> Well, that's the flush that I caught right there with 45,000 shares. I'm now red $45,000 just on STKH.

I haven't revealed my P&L yet. You'll get that in a second. Hold your horses. So, this was this big flush right here. Now, should I have seen that coming? We had had a big flush right here. This is a 10-second chart. Look at the 1-minute chart on this. On the 1-minute chart, I bought an ABCD pattern. This was an ABCD pattern. Volume profile was good. MACD was still positive when I took the trade. It flipped It was curling, but it was still positive.

Maybe the curling I don't know. Maybe that by itself was a problem, but you know, got in here for the break through that level, added, and then huge rejection. I noted later that STKH was um um was actually not uh on high relative volume. Where is it now? Um the relative volume on it is 4.46. It's a little lower than I'd prefer, and that's partly because you've had a few of these high volume days where it pops up and rejects.

And when it first popped up, I was like, Israeli company, we've traded before, it's not good, I'm not going to trade it. But it goes from $3 to seven bucks, six bucks. So I was like, well, jeez. All right. I had a bias on it. I'm wrong, but the thing is going, so I'm going to jump in. First trade was good, had a cushion on the day, sized up, and boom, flipped into the red. And so with that, my P&L flipped from green $32,000 approximately to red 18,000.

All right, let's get this up on the whiteboard here. I'll show you. I'm going to turn on my my overhead camera. So All right. So made my way, first trade uh plus 26,000, second trade plus 8,000. So I'm at 32,000 on the day. And then in one trade, I go to red minus 18,000. Well, I didn't scale this very well. Um I scaled it as if I stopped at 18,000 in the red, and we know that's not what happened. We'll let's we'll talk about why.

So started um at plus 26,000, and then plus eight is 32,000, and then flushing down to minus um 18 grand. And at that point, uh we came into the opening bell, and I was like, you know, I I I feel like I should call it a day. I didn't listen to that little voice that said you should walk away because I was emotionally compromised. At that point, I was frustrated. I had just gone from green 30,000 on the day to red 18,000.

I got completely smoked on this trade. And you know, how many days this week have we seen stocks right out of the gates halt up and give us a really nice move? I mean, it's been like every other day. Well, today was the other day. So, W E T O pops up um and right here it dips and curls and I jumped into it right there. I thought that we were going to halt up. And it flushes down nearly halting down and I lost $20,000 on that.

All right. Here we go. Minus 38,000. Not good. And then it curls back up here. I got back in and it halts up and goes higher, but I didn't make that much money on it because I went I did I had smaller position and I fumbled it. So, it's a it was a small winner. Actually, um this was minus minus 42,000 and then that next trade put me at 38,000. So, I I made back like 4 grand. And then it kind of was like, all right, well, I missed that move.

This is selling off. Can't get back in it. I wish I had taken bigger size right here. We had this nice move, but whatever. And I just started um looking at what else was moving. And at that time we had um MMF moving, but I was like, ah, that one is just I can't trade that. The spreads are too big. Um but we had where was it? Um yeah, we had S P A I that popped up. I was like, um I don't know, maybe, not sure. And then we had um where is it?

Where in the scan? Let's see. How far back do I have to go? Oh, there it is. Um O N F O. O N F O is on the scans and this thing um was strong after hours, pulled back, and then it was squeezing here in the pre-market. And so, I'm watching it. It breaks out right here, and I don't trade it. I'm like, "I don't know. It's a little thickly traded. It's a little cheaper. I I I don't know. I'm not sure. Maybe it's a little too, you know, I just go easy." And then it breaks through four.

It rips up to a high of 450, little pullback, and I punch it right there. It drops down, comes back up, comes back down, and I cut the loss. Uh So, here's the P&L for today. I'm down $64,000 in one day. Huh. Guess it's not as bad as last week. Last week I was down $73,000 on Friday. I suppose if we want to look at the glass half full, I really shouldn't be um too bummed out. I'm still up 60,000 on the week. So, this is now minus $64,000, oops, roughly.

Um 64,000, so still up um you know, 70,000 approximately on the week. Plus 58,000 from last week. Well, all right. You know, okay. The glass is uh the glass is full. I'm I'm fortunate. What What am I complaining about, you know? $60,000 in one week. Shut up. You've got nothing to complain about. Knock it off. All right. I hear that. Uh fair. That's true, and it's important not to lose that perspective. Uh but I did lose that perspective in the middle of trading today, and I lost it in the middle of trading yesterday, or for or a week ago last Friday.

I got frustrated. I got stubborn. And rather than just get up and walk away, I kept punching the buttons. This is classic. This is classic, you know, rookie trading stuff. And I I call it rookie trading stuff because, you know, beginners fall into this habit um very frequently. I mean, happening weekly like this, maybe even more often. And usually, to become a successful trader, you have to break out of this habit. You got to kind of stop doing this, cuz it's just going to eat you up.

Um and and yet, even the most successful traders, from time to time, will have a moment of getting completely hijacked. And for me, um you know, it it I I'll go I'll have nice stretches where it's not where it doesn't happen. Um July was a pretty good month, but then on that last day of July, I got hijacked right there. Uh June, you know, was a pretty good month, but I got hijacked on this day right here, and again on this day right here, and I was pretty pissed on this day right here.

So, um you know, this month I've had two emotional hijacks, um you know, kind of back-to-back. So, >> [sighs] >> you know, what's that about? Um Uh you know, I I'm I'm thinking about it as I'm recording this, because I, you know, this is very fresh in my mind. So, I do feel like a real challenge here is dividing my attention between big account and small account. Um that kind of led me into that big loss that I had last Friday on DSY.

Um The trade on STKH, I also took in the small account. Um I had a better entry, a slightly better entry in the small account. Uh I also traded WETO in the small account and had a really good trade on it. Well, so actually, interest This is an interesting note. Um I'll do my small account challenge recap later. But, STK So, first trade was WETO. I made 25,000, 26,000 in my main account, and in the small account, made about 10% of that.

Was up, uh, you know, 2,100. And then on, um, STKH, I lost, uh, 45,000 in my main account, and about a tenth of that, roughly, 3,900 I lost in the in the small account. So, you can see the sort of ratio here. Um, trading with bigger size in the big account, the the trades are multiplied. Um, but I do struggle with the timing and my own attention being dispersed. On the one hand, in the big account, I've got a lot of money in there.

I've had a great year, da da da da. I can afford to take some risk. If I'm a little sloppy, or I don't have a perfect entry, it's probably okay, um, because on the one hand, the small account challenge has been a big focus. Growing the small account, donating the profits to charity, that's been important campaign to me. So, the small account, in some ways, has taken priority. But, then on the other hand, in in another sense, I'm stepping over pennies stepping over dollars to pick up pennies, where I'm mismanaging my big account, and then, so what?

I make two or three grand in the small account? Like, big picture, this is kind of stupid. But, uh, in the moments when I'm in the small account, uh, like on STKH, you know, it's like, oh, shoot. Um, this is going to really hurt the small account. Uh, you know, maybe I'm just going to give this a little more room. Let's see. Rather than just cut the loss here, let's just give it more space. And so, then, I, you know, I give it more space before I bail out.

But, then when I pull the rip cord, and I'm out in both accounts, uh, the losses are bigger. Right? So, um, I think that because this happened last Friday as well, um, you know, I had said last Friday, I was like, I don't know, you know, maybe next week I should just trade in my small account, right? And just put the big account on the shelf cuz I'm being too sloppy with it. Um and just come back to it later. And then I said, "No, I don't want to do that.

You get knocked off a horse, you got to get back on." And every day that goes by where I'm not getting back on the horse in my big account, I feel like I'm just sitting in the in this drawdown. So, I ended up switching my focus and just saying, "I'm just going to trade in the big account." And this week I only traded in small account. Um I think it was twice. I traded um on this day here after I was already up like 60,000 on the day, I did take one trade um in the small account.

And I took another trade in the big account. And then no trades in the small account. Um I don't think any of these 3 days. So, this was day 30. This was day 31. This was day 32. No trades, no trades, no trades in the small account. And today's day 33. I traded in the small account. Um so, you know, look. I mean, yesterday wasn't great either. I gave back a good amount of profit. Um and I wasn't messing with the small account.

You know, that was just me still being sloppy. But, so maybe that's not correlated. But, it feels like there is a correlation there. Um the small account challenge, I had a goal when I started it. Uh well, you know what? Honestly, I didn't really have a goal of how much I was going to grow the account to. I had um the 50 Children's Hospital goal. But, I didn't really set a goal of I'm going to grow this account 25 grand or to 50 grand or to 100 grand.

I just sort of was like, "I don't know. I'm just going to trade in it. We'll take it as it goes." You know, if it's not that fun or it's whatever, I'll just stop at that time. And but now, I'm sort of in this place where I'm like, "Uh you know, should I really should I stop here? This is kind of a weird spot to stop. Small account. It's at 60 uh 67,000. I'm down 800 today, whatever. I actually was green on ONFO on that scalp.

It was easier to be green with a tiny position, and then with a big position I get smoked, right? So, um in that particular case, I sold ONFO in the small account when I had the profit cuz the small account was red and I was like, let's just try to recoup some of that. And the big account I was like, let's give this thing a chance to really open up. And of course it didn't, and so, you know, stupid. So anyways, yeah, stopping at $65,000 seems a little like that's a random number.

Um but any number's a random number, I guess. What's the point of going to 100? I mean, it doesn't really matter. Um I will say that as we'll recap in the small account challenge today, um or maybe you've already watched it cuz I'll probably upload that first. Um I haven't recorded it yet, but I'll probably record it and then upload it first. Um we're now I think at 40, let's see, how many children's hospitals have I donated to?

We're really close to the goal of 50. Um and so, let's see, we're at 45 right now. So, I've got five more to do. Um which means another $25,000 of money raised through a combination of you guys hitting the thumbs up on the small account challenge episodes and my trading. So, realistically, you know, three more days, um a couple more good days, or a couple more um a few more medium days, I could probably get me up to the 50 50 children's hospitals.

Um and maybe that's just where I I call it. Um rather than it being based on cuz the number, like I said, I wasn't really thinking about a number. It just was we'll see what happens. So, um and then at that point, I could sort of put this on the shelf and focus here and not be dealing with divided attention so much. Perhaps. Uh Again, it doesn't It's not a guarantee that it would completely solve this problem, but I does seem that there's a bit of an issue here that I'm dealing with.

So, cuz I don't think you know, I don't I I just don't I'd like to think that this wouldn't have happened today. And I'm quite certain it wouldn't have happened last week if I hadn't been, you know, toggling between the accounts and trying to decide, well, what's my stop here? What's my stop here? This one's tighter, this one's bigger. All in the heat of the moment. I I think that's that is proving to be a little bit too much.

Now, look, big picture, can I do it? Oh, yeah, I can do it, you know, hold on, give me credit. Give me credit. I I have been doing it, but I'm not performing as cleanly as I'd like to. Maybe think of like a downhill skier in the Olympics, and then you're like, "Hey, while you're doing that downhill skiing, can you also like juggle?" And it's like, I Okay. Yes, but something's going to give. So, for the sake of doing it, and it's for the children, okay, you know, but is this a forever kind of thing?

And I know that it's not, but but it's very hard for me to focus just on the small account because if I did that this week, how much am I up this week in the small account? 23, I think it was 3,000 on Monday and now I'm down 800 today. So, I'm down I'm up 2,000 on the week in the small account. And even after today's loss, I'm up 60,000 in the big account. So, yes, this is sort of the cost, it seems like, of these challenges right now.

And it's not just a financial cost because it's the emotional setback of having these spirals where I'm just getting more and more frustrated and I'm not stopping. And now I'm in the red $64,000 today, which is really dumb, and it was avoidable. Oh, boy. So, we know, and this is the roller coaster, you know, up and down and up and down. I mean, at least right now the roller coaster is still generally going up, but, you know, I catch one of these really badly the wrong way, I mean, they'll I could end up losing and you know, a lot more.

So, I need to be recognizing these sort of tremors um and get out of the way before the big one strikes, kind of thing. And so, I'm going to be mulling this over um during the weekend. And um what kind of happened on Tuesday, Wednesday, Thursday was that I was trading just in my big account and I was like, if I'm up enough, then I'll trade in the small account and I kind of never was. Uh today I I was up um well, that first trade on WETO I took in both accounts and um I guess I I I kind of did that because I was like, you know what?

I haven't taken a small account trade since Monday. I feel like I kind of need to. So, then I sort of broken the ice and I had and then the STKH trade was the one that really um screwed things up. Now, you could argue, well, jeez, this isn't a small account issue. This is just This is an Israeli stock. It wasn't up enough on the day or the relative volume wasn't high enough, you know, you avoid that and you're fine. Um maybe, but, you know, also, I mean, I managed to kind of fumble WEO, ONFO, I mean, this is a US company up quite a lot.

I mean, I I don't know. I'm not sure if that is entirely going to avoid the situation. Chinese stocks are also very risky and I think that's what I lost on last Friday. So, mm yeah, definitely got to put some thought into this. So, anyways, thank you guys for tuning in this recap. I'm kind of venting and just putting out how I'm feeling right now. Um but, you know, that's kind of the thing is I do the recap every day.

Um every day this year, every day last year, recaps. They're just every day, you know, I've been doing recaps since like 20 s- well, 20 gosh, I don't know what year I started doing the daily recap. I was definitely doing it starting in January of 2017 for the small account challenge that I began at that time. But then there were some periods where I wasn't doing them daily. In any case, the goal is you know, to put it all on the table here, you know, whether it's a green day or red day and I I do think you learn more from probably the red days because you know, these are just where you sort of expose the weaknesses and either you know, mental state of mind you know, mindset, psychology or strategy as the case may be.

But I think the strategy is pretty solid you know, big picture in really good shape there, but I definitely hit little bumps in the road and most of them can be chalked up to emotion. I mean, I on an impulse kind of bought 45 whatever thousand shares at the high of day. That was It's pretty risky. Um especially, you know, the stock had already been a little tricky today. So that was that was a questionable decision. Uh, anyways, it is what it is.

So, remind you guys as always that trading is risky. Easy come easy go, right? You see it right here. Easy come easy go. So please manage your risk and practice in a simulator before you ever put real money on the line and I'll see you guys back at it bright and early Monday morning.