MAX LOSS RED DAY (mistakes were made)

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.