I didn't see this coming...

Well, well, well. How the tides have
changed. Friday, I was wallowing,
disappointed, down $73,000
on the day. Today, I'm up 84,000.
Water under the bridge, erased all of
Friday's loss. Now back in the green.
And this is probably one of the worst
things that can happen when you make
back all of the loss when it's a big
loss in one day. you sort of set the
mental expectation that you can do that
and in the future when I have another
big red day, let's say it's 100 grand or
150 grand, I'll have that same thought
of, well, I'm not going to try to make
it back all in one day. But I have
before, so maybe optimistically.
And you know, look, in the right market,
you can get completely smoked as I did
on Friday. The next day you come back,
you have a huge green day and it's, you
know, all's well, it ends well. However,
in a cooler market, those big red days
are not just your emotions getting the
best of you, as they did for me on
Friday. It's the symptom that the
underlying market is no longer working
for the strategy that you're trading or
not working as well. So, you hit it hard
the next day, it's another red day in a
row, three red days in a row, six red
days in a row. It'll keep going that way
until you take your foot off the gas and
recognize that the market for my
strategy is not the same as it was. This
happened with a crypto treasury uh
catalyst that we had last summer, right?
So last summer, we had all of these
stocks, cryptocurrency, Bitcoin was at
all-time highs. We had all these stocks,
US publicly traded companies that were
buying shares of Bitcoin so that
investors could buy using leverage that
company as kind of a a conduit, a
vehicle for buying cryptocurrency. A lot
of cryptocurrency exchanges you can't
buy using leverage. Some you can, but a
lot of them you can't. And a lot of
people don't feel confident funding
accounts with these sort of obscure
crypto brokers. So, if you could buy
cryptocurrency using a US brokerage
account, then wouldn't that be even
better? And so, that's what a lot of
people ended up doing last summer. And
so anytime one of these stocks put out
the headline that they were, you know,
buying a hundred million or $500 million
worth of cryptocurrency,
suddenly the stock started to squeeze
because that vehic that company was
becoming a vehicle as a of of a easier
way to invest in that specific
cryptocurrency. And sometimes it was a
obscure altcoin, you know, buying $100
million of Dogecoin or whatever it is.
But now if you wanted to buy that, that
was a stock that you would you would
buy. So what happened was towards the
end of the summer when cryptocurrency
and Bitcoin rolled over, what happened
to that catalyst? That catalyst stopped
working. People didn't want to buy
Dogecoin when the price was falling.
They didn't care about it. And so all of
a sudden, a catalyst that was
predictably giving us big moves stopped
working. And if you kept going allin
every time that headline came out, you
went from being a winning trader all
summer to a losing trader. The change
wasn't anything you did. It was the
underlying market that shifted on
Friday. The reason I was down $73,000
was not because the underlying market
shifted, but because I became
emotionally compromised. It was a bit of
a choppy morning. Some days are like
that. No big deal. And then I got really
stubborn on one trade and got completely
smoked. I mismanaged my risk. Rather
than taking like $5,000 of risk on each
trade I took, I was like $5,000 of risk,
$5,000 of risk, $50,000 of risk. And
that just happened to be the one I lost
on. Right? So that was a mistake. Me
that was an internal mistake. I was able
to make an internal adjustment over the
weekend. So when I came in this morning,
I said first and foremost, my job is to
build my cushion. Once I have a cushion,
then I can size up a little bit within
reason. I got my cushion very quickly.
And within a few trades, I was up
25,000, 30,000, and 40,000 on the day.
Holy smokes. So just like that, now I'm
getting the feedback that the market is
really hot today. And sitting at 44,000
in the green, I'm now feeling like, all
right, I'm really I've got a big cushion
on the day. I'm feeling good. Let's keep
going. Then I'm up $62,000 on the day.
65,000. I gave back about four grand.
Now I'm at 61. All right, maybe that's
the time to walk away. We get another
stock that pops up and squeezes up 986%.
I made another 22,000 on that. And just
like that, I'm in the green. $84,5549
as you can see right here. You know, my
biggest position of the day in terms of
shares was on SCT. Seckt at least I
think that was it. Um yeah, two four so
five. I mean, this was a big position,
but it was a cheaper stock. You know, it
was a lower price stock. Um it and at
that point I had such a big cushion on
the day I was really in the driver's
seat. So, we've got some stuff to break
down. We've got Seckt, we've got Jwell.
Um, we'll talk about a few of the
others. So, here's how the day unfolded.
Woke up this morning around 6:30 in the
morning. Pulled up my scanners on my
phone, Day Trade Dash, as I always do.
And what am I looking at? The top
gainers scanner. I was expecting Zjy L
to be on the scan because it was on our
watch list on uh Sunday night from this
move that we had on Friday. So Friday it
squeezes up 100% after hours.
Predictably at 4 in the morning it
squeezes to six pretty much exactly like
I thought it would. Dips down, pops up,
and then starts to sell off. No trades
on that at all today. You could see this
rejection candle right around this area
here that I don't really like so much.
That was at about 450 pops and drops. So
anyways, no trades on Zjy L, but it was
one of our leading gainers coming into
the uh 7:30 or 7 a.m. uh kind of
beginning for pre-market for most retail
traders. Then we had STKH. STKH I looked
at the chart first. I saw that at 645 it
was our leading gainer up about 100%. I
then pull up the chart. I looked at it
and I was like, "Ooh, this looks pretty
interesting for a possible squeeze right
here through six." Then what do I do? I
check the daily chart. I'm doing all
this on my phone. So, I'm laying in bed
just checking, looking at things. So, I
see on my phone, it had popped up like
two weeks ago. Topping tail sold off.
Lots of room to the 200. So, I'm like,
"Okay, interesting. What's the next
step? Let's check the catalyst." So,
then I switch over to the stock quote
window on my phone and I see it's an
Israeli company. And I'm like,
stakeholder foods, Israeli company.
Well, just last week we had MB, Master
Beef Group, from Hong Kong. So, I'm
like, you know, steak, beef, I mean,
maybe this is a theme. I don't know. Uh,
but I think to myself, Israeli,
I don't think that's going to work super
well. Um, I just don't think that that's
on theme. And so, I said, you know what?
I think I don't think it's going to
work, so I'm just going to wait. So, 7
a.m., no trades on it. It ended up
squeezing at the open from 4 all the way
up to 7, but then coming back down. It's
Israeli, so it's not on the current
theme, which has been Chinese stocks.
Had no news, but neither have most of
the Chinese stocks have been making
moves either, like Zjy L. So, in any
case, um, doesn't matter. Zjy L, Zjy L,
there it is. So, uh, SKT, sorry, STKH,
that one was off the list. Um,
let's see. And then we had, um, Zj was
off the list. And then we had JW Lel,
Jwell. Uh so Jwell Chinese company okay
no news okay daily chart it's above the
200 no recent big candles so there was
nothing there really concerning me so I
thought okay that looks good we had
popped up here at let's see what time
was this about 440 from $2 to five and
it comes all the way back down then it
rallies back up here as they often do
and then it comes back down again and so
right in this area here coming into 7
a.m. I'm wondering, you know, is this
thing, what's it going to do? And so, as
we come into 7 a.m., we'll just go on
the 10-second chart here so we can be
really zoomed in on this price action.
Um, coming into 7 a.m., it first drops
down right here. Drops down, then it
rips back up right here. And as it
squeezes back up, I'm looking at that
and I'm thinking, okay, I I think I can
break the ice on this. So, where's my
first trade? My first trade on this was
a quick scalp in at $4 right here and
out at $415420.
So just jumped in, jumped out, made
$1,900 on the first trade. Okay, that's
that's a nice breaker. That's exactly
what I needed. Jumping in, jumping out.
Boom. I'm good. Now, the levels I was
watching was the break through this
level here of 439 and then I was
thinking pretty much back to the high of
day of about 524.
Now, I did check the daily chart. And
when I switch over to the let's see,
we'll do this on this time frame so we
can overlay the lines correctly. So,
we're going to switch to the daily chart
here. One day, we're going to zoom out.
So, and we got to zoom in a little bit,
actually. So, get zoomed in on this. And
so, backing up, I thought, all right,
where do we have resistance? And I
noticed that there was a little high
right around here around 550, 560. And
then I looked over to this level over
here and I said we've got another little
oops sorry another little window uh
right around here 688 and then we've got
room up to $912.
So those were kind of the nearby areas I
was looking at. Um and then we had this
high right here and then you start to
get more room you know back up towards
that area. So these were the levels that
I was sort of looking at. All right. So
then I I draw them out and then I switch
back to um the one minute time frame or
the 10-second or whichever I was looking
at. Uh and then I can see those levels
right on my chart. Okay. So now we're
going to go back over here. So as it
pops up um right here initially um we
got this first trade right there looking
for 439. Now we double top, we dip down,
and I wasn't sure it was going to work,
but right here, it's consolidating
sideways and creating a bull flag. Now,
the bull flag is more noticeable on the
one minute time frame. So, if I switch
to this to the one minute right there,
we'll go back to full screen.
This ended up being our first one minute
candle to make a new high right down
here. And so, I added back right down
there. And as it broke through 440, I
added for the breakthrough five. We
ended up squeezing all the way to 524,
560 up to a high of $6.20
and I'm adding into the squeeze. As I'm
adding, my cost basis is also moving
higher. So, it does carry risk to add to
the position, but I'm adding. And then I
said, "All right, I'm going to hold
this." And then once I see an exit
indicator, I'm pulling the rip cord. I'm
jumping out. And that's exactly what I
did. And so I got this nice move right
here from 440 roughly up to 620 nearly
$2 a share. Beautiful. And so just like
that, that move put me up now $44,000 on
the day. It dips down here. It comes
back up. I get back in right here
looking for the squeeze back through
six. Ended up jumping in and jumping out
of it for another 20 grand. That put me
up. Well, it was about 65,000 on the
day. And then right here, I gave back a
little off the top as it flushed back
down. All right, so it pulled back and I
thought, well, clearly we've got some
resistance up at this level. Now, that
resistance wasn't based on a daily
level. There was no resistance from 560
to 688, but clearly it was struggling in
that area. Then it goes sideways and
then starts to roll over. So, I thought,
all right, well, these trades were all
at about 7, you know, between 7 7 a.m.
and 7:39, 7:40. And so I'm sitting in
the green $61,000
and then SCT
pops up on the scan socket mobile and
I'm thinking, nah, I don't think so.
It's too cheap. It's not going to work.
Blah blah blah blah. Yeah, there was a
headline said um mobility solutions for
Applebased frontline operations. Wasn't
really sure it was going to work, but it
starts it's squeezing. It's hitting the
scanner. Ding, ding, ding, ding, ding,
ding, ding. So scanner is making a lot
of noise. I see it. And I said, you
know, look, usually these things pop up
to a dollar a share and then that's it.
I don't think it's going to work.
However, if it can hold over $1, then
I'm interested. So, it's got to hold
over a dollar. So, it squeezes up right
here. It goes over a dollar and I got my
order ready right here to buy 10,000
shares. I've got it ready at a $1.15.
I've got my order ready, ready to go,
ready to go. And then it popped here to
A130 in a flash. And I was like, now
see, I don't know if I want to get in at
a$130. I like it a$1.15, but I don't
know about a$130. I'm going to wait a
second. And then all of a sudden, it
shows a$140, dollar50, $170,$180. And I
was like, well, I can't chase it up
here. $2, 220, 240, 260, 280, $3, all
the way up to a high here on the top of
this candle wick of $3.95.
It went up 986%.
Wow. So what I suspect happened there is
that during this area, which was, you
know, tens of millions of shares of
volume already, someone was adding heavy
to the short side, adding, adding,
adding, adding, adding, thinking this
thing would roll over. Look, I didn't
really know the news. I don't know the
company. So this catalyst, I don't know
how good it is. Maybe someone thought
this is not really that big of a deal.
This is a fluffy headline. It's not
going to hold up at all. It's not even a
Chinese stock, so no, it's not going to
work. And what I suspect happened is
that um they all of a sudden got
themselves in a jam. Whereas this thing
broke over a$120,
they were auto liquidated. So who knows?
For all I know, maybe they didn't even
mean to short as many shares as they
took. I I really couldn't say what
happened exactly, but what we can see
from the chart is that the stock went
straight up. And usually that happens
when a short is covering at market. So,
boom, boom, boom, boom. Now, it's not a
market order, but it's a marketable
order. So, they're covering, it's
squeezing up. It dips down to a$150. And
I thought, well, that's going to be a
giant toppingtail candle. It's probably
not going to work. But then here it
starts to squeeze back up. It curls back
up to $1.73. So, then I said, well,
look, previously we were at a$110. So,
now we're at a$1.70. And I jumped in
right here for the break of a$1.75. We
squeeze up to A180.$185. $2. Get a high
of 211. Boom. Pulls back. Goes higher up
to 220. Up to 250. Up to a high here of
264. Then it drops hard back down to
a$180. I'm all out. Consolidating here.
And I'm watching to get back in for the
breakthrough 250. It's a little heavy.
It pops up right here. It kind of dips
down and I'm watching here. I've got my
hand. Order is at 285. I'm looking for
the break through three. If it breaks
three, I said if it breaks three, 325,
350, those are places I'm interested in
possibly adding for a retest of our high
a day for a full wick reclaim. But it
flushed and then it didn't end up
happening. And so I didn't get back in.
So ended up with a total of $22,000 ont,
$61,000 on Jwell, and $84,000
on the day. Friday's losses gone.
Now, on the one hand, you could say if
you want to be critical, I'm still
behind the ball because Friday shouldn't
have been a red day. Friday should have
been a five or $10,000 green day. And
you know, today the daily goal 15 20
grand a day. Uh well, today made up for
Friday to get Friday back to zero. But
if I should have made 10,000 or 20,000
on Friday and 20,000 today, I'm still
tracking behind where I should be for
this point in the month. That's getting
pretty picky because the fact is you can
set goals for yourself, but you'll not
be green every single day. And every day
that you fall a little short of the
goal, are you going to start like, you
know, adding that amount that you were
falling short that you in the future
have to make up someday? No. That's
really it's that's getting way too picky
about this. Hey, big picture. You're
walking away with some profit. That's
good. And that's even how I looked at
last week, you know? Yeah. I was bummed
that I lost $73,000 on Friday. I wasn't
happy about it, you know. But on the
other hand, I said, "Look, I mean, big
picture, you finished the week up, as it
turned out, $28,000."
So, I'd say that's a pretty good week. I
mean, it's not 100 grand, but it's not
red. You know, it certainly could have
been worse. So, you know, don't get too
bent out of shape. And losses are going
to happen. you know, you you're that's
just an unavoidable reality of trading
is that you will have losses. So, you
know, a big loss here and then, you
know, bounce right back with a big green
day here. All right. Well, you know,
like I said at the beginning, making it
all back in one day um is not great from
an emotional perspective because it then
gives you the belief that you can do
that again in the future and it really
only happens in certain markets. But we
are in that type of market that's highly
volatile and we are seeing stocks making
big moves and so you know big winners
they can happen and big losers can
happen as well. Fortunately the biggest
the biggest problem that could have
happened is if let's say I only had 100
grand in my account. Now that's still a
big account but let's just say I had 100
grand in my account on Friday and I lost
$73,000.
So now my account's got 28 grand. Well
these stocks are likely not marginable.
So, I can't use any of my buying power,
which means I can now only grow my
account at the rate of $28,000 trades.
So, now I'm 73% less money in every
trade. And then it will almost I mean,
it's it's certainly in that scenario
going to take longer to build back up,
right? Grew to 100 grand, dropping all
down in one day. You're not going to
make back because there's no way. So,
now it's slow and steady. So for me, the
reality was I started this year with
$96,000 in my trading account down here.
I grew the account, you know, through
some losses, 30, 40,000, whatever, up to
what is now uh just under $2 million. So
from $2 million sitting in my account on
Friday, losing 73,000 minus 73K, that
didn't hurt my ability to take any
trades. And so, you know, this morning I
was going to go slow and I did until I
built a cushion and then I was able to
be back to full size. And full size, I'm
not using $2 million of buying power.
Really, I could take out Gosh, I mean, I
could take out a lot of money. So,
50,000 shares of a $2 stock. That's only
$100,000.
You could argue that I should take out
the full mill to one and a half million,
leave myself maybe with 500,000 and then
put the million and a half into
something that'll earn, you know, 7%
five six 7% interest and that's an extra
90 grand during those, you know, that
during the whole year if I have it
parked somewhere else. So, it's costing
me $90,000 a year not to do that. Is it
worth it? And I would argue that it is
because I needed the buying power for
SpaceX. That one trade alone was like 50
grand. So one trade covered half of the
year of having that extra buying power
in my account. And you know there are no
doubt I'm sure there have been other
examples where you know I took a big
trade and I ended up needing not all of
the buying power but a decent amount of
it. And so and there may be more between
now and the end of the year. So, I'm
leaving a little extra in my account to
give myself that wiggle room. And then
the second benefit of that is if I do
have a red day, I am not um you know,
now kind of locked into trying to grow
my account with less money. But that's
what happens to a lot of beginner
traders is if you lose half your account
now, your buying power is cut in half
and so it is going to take you a lot
longer to rebuild. And that's one of the
reasons it's so important to have max
losses set on your account and to have
the discipline to follow them. And on
Friday, I traded past my max loss, and
there's no good excuse for it. I was
emotionally compromised. I was
frustrated. I was disappointed. And I
took it out in my trading. So, you know,
at this point, uh, I'm grateful for
today.
And, you know, I I have an opportunity
now that this cleared the slate from
Friday and so I can spend this week
focusing on just continuing to grow the
account. or or what I could also do
arguably
uh so I had dec on Friday I had talked
about how I didn't know if I should
focus on just trading the big account or
just the small account this week I I
thought maybe I should just focus on um
trading in the small account and just
put the big account on the side and
something I mentioned in my small
account recap is that you know I felt
like that's like falling off a horse and
then putting the horse in the barn and
being like I'm not going to talk to you
for a couple weeks. I I don't like doing
that. I don't like leaving things kind
of unsettled in that regard. So I I
said, "No, I think it is better actually
that I put the small account on the
shelf. The small account's in great
shape. So we're leaving on a high note
and just focus on the big account. Just
even small green days just it's like
getting back on the horse, getting
comfortable again, and just breaking the
ice." And so that's what I did. Uh, and
then it wasn't until SCT that I finally
decided, well, actually now I'm green in
both accounts or I'm green so much in
the big account. I'm going to go ahead
and trade in the small account as well.
So, I got one trade in the small
account, but Jwell could have easily
traded it in the small account, but I
just didn't want to divide my focus on a
day that really mattered to kind of get
back into a good place. So, anyways,
that's kind of how I've approached it.
and uh I'm happy with where I sit today
and I'll be back at it first thing
tomorrow morning at 7:00 a.m. looking
for, you know, that one stock that's
going to be the obvious leading gainer.
It was a little tricky this morning. We
had STKH, we had Jwell, we had um Zjy L
or whatever it was from Friday. So, we
had a little dispersed attention, but
one of them the float was too high. That
was Zjy L from Friday. Um it was already
pulling back a little bit. STKH
was Israeli, so I said, I don't think
that's going to work. And that left us
with Jwell being the most obvious. Um,
and so, you know, ended up getting some
good trades on it. So, with that, um,
look, I'll put a link for the twoe
trial. You guys can check it out. It's
in the description, pinned at the top of
the comments as well. And I'll remind
you as always that trading is risky. My
results aren't typical, and there's no
guarantee you'll find success whether
you trade with me or you learn on your
own. So, your best bet is to manage your
risk by practicing in a simulator before
putting real money on the line. With
that, I'll see you guys bright and early
streaming tomorrow at 700 a.m. Eastern
Standard Time.