I Was Red -$12k Before My Big Winner...

What's up, everyone? All right, well,
here we are. It's Monday morning and the
roller coaster was open today. Friday
took the big dip down $64,000.
Today, I continued it. I went down
another 12,000 before I rallied up from
red 12,000 to green $62,000 [music]
in one big trade. Holy smokes. And then
a little pullback off the top. And as I
finish today, I'm sitting in the green.
Boom, there it is. $52,920.96.
Trading two stocks, IPST and WETO.
Although, really only dipped my toe in
the water on WETO and then kind of said,
"You know what? Let's kind of knock that
off. I think it's a little too risky."
Uh ended up continuing moving a lot
higher, so had the right idea on it.
But, after giving back profit after the
open on Friday, I sort of caught myself
before I kept trading and and called it.
So, let's talk about IPST because this
one sent me red 12,000 before I got the
recovery. IPST is currently our leading
gainer and I already talked about it
during the small account challenge
recap, but I think the uh the difference
here, of course, is that in the small
account, uh I got three trades on it.
They were all with relatively small size
because of the account size. And they
were three winners. I was able to get
in, get out. Get in, get out. Get in,
get out.
However, in the big account, if you're
trading with big size, and as you've
seen I have been,
and you have days where you're making
20, 30, 40,000 dollars, or you're losing
20, 30, 40,000 dollars, ultimately,
you're not going to have those big uh
P&Ls by just taking 5, 10 cents off the
table with smaller size. You need to
take bigger size. And so, I kind of came
in today knowing that uh obviously, I
was in a drawdown, and I needed a couple
of good trades to put a decent dent into
it. Not not to make it back all in one
day, but just to have a good trade doing
it with, you know, 5 or 6,000 or 10,000
shares probably wasn't going to cut it.
And since we had a stock this morning
that was already up over 200% early,
this one squeezed this morning about
4:00 in the morning from, let's see, 215
to 298%
from a low of about $3 a share up to
$8.
It then pulled back closer to the open
as we saw here, and we had the formation
of this inverted head and shoulders
pattern, right? So, here's the shoulder,
the head, the shoulder, and we broke
right here. Well, I took my first trade
on it right here. And I was really
confident it was going to work in that
spot. Why was I so confident? Well, we'd
had a couple other stocks that popped up
and failed, but this one was still
holding relatively well. It had broken
over VWAP right here, and I did not
trade any of this big move because at
that time, right around 7:00 a.m., I
just wasn't sure it was going to work.
It's not a It's not a Chinese stock.
It's a US company. It has a shelf
registration. So, I kind of thought
maybe this is one of those stocks that
has a big pop and then just sort of
unwinds the rest of the day, and any
pops here on the backside get faded.
But, as it regained the volume weight
average price, I got interested. It ends
up going up to a high right here of
about 6 85. It dips down. First 1-minute
candle or 5-minute candle makes a new
high. I didn't fall for that trap. I
knew it was still too extended off its
moving averages. So, it drops back down
to the nine, comes back up to VWAP at
about 6:20. It drops down a second time,
and when it came back up to 6:20 right
here, I was like, "Okay, I'm going to
punch it." I put in my order size for
15,000 shares, and I started pressing
the buy button. Boom, boom, boom, boom.
I'm adding into the squeeze. I'm looking
for the break through descending
resistance right here, the break then
through 6:85, the squeeze through seven,
and immediate push right up to eight. I
was looking for what we got right here,
but I was expecting it right here.
And I was wrong.
And so I jumped in and it immediately
dropped back down and I sold for a
$12,000 loss. And so now I'm red on the
day 12 grand and I'm thinking
all right, well, this is not good. It's
a continuation of the loss from Friday
to go deeper in the red.
Um so I'm just going to have to sit on
the sidelines. So while I'm sitting on
the sidelines, we have US UF USC
uh I think it was you know what was the
ticker?
Um UCF that's what I typed UFC maybe
maybe it was well, what the heck was
that ticker?
Um I'll have to go back on the scanner
to find it. And was it not it must have
sold off a bit. All right, so we're just
going to scroll back to find it. So we
had the stock that pops up. It's sort of
a similar price range where we've seen
some big moves um in the last week.
I think a lot of traders were hoping
this one was going to do one of those um
squeezes where it went straight to like
four or five dollars a share, but it
wasn't able to do it. Where was this Oh,
here it is. Um US UCL. All right, so
UCL. UCL ends up making this move here
and I think traders wanted to see a move
like SAKET S C T S C K T where it would
go from holding a dollar straight up to
like four dollars a share. But I looked
at it and I recognized pretty quickly
that was not likely. Um UCL was just too
heavy. It just was not happening. So
once that rolled over, then attention
sort of shifted back to IPST. And we'll
talk about W T O in a minute. It's
currently uh continuing to be strong up
159%. But um so on IPST
when this thing um
sort of pulls back down below VWAP, it's
pulling back. It comes back up here and
then we reject right here. And then it
comes back up again and right here as we
broke over this level right around 640
uh 650 is where I started adding to
anticipate the break through here, the
break through this level, and then the
break of seven certainly, and then
looking to add for a squeeze up to
eight. And if I'm going to be honest, I
was expecting a much bigger move than
this. The reason I was expecting a
bigger move was because I really thought
that it was number one leading gainer,
and so once it broke back through the
high of day, that shorts would cover and
that we would see a big push higher. The
fact that we didn't makes me wonder if
it's possible that the company is
tapping their shelf registration to sell
more shares on the market. I don't know,
but it was it was a little heavier than
I thought.
In any case, on that trade, I did the
same thing. I punched it 640 and I'm
adding as it squeezing higher. So,
adding, adding, adding, taking a big
position. We get this push all the way
up to eight, taking some profit off the
table. It dips down, I add some back for
the squeeze through the high, take some
profit off the table. It pulls back, I
add back right up here, and that's where
I gave back about um
$10,000 off the top. So, I gave back
some profit off the top right there,
which was a little disappointing, but I
could tolerate that. It's um you know,
it's not a big deal. Big big picture,
I'm sitting in a really good spot on the
day, and this is a similar setup where I
expected it squeeze through the high
that we would push higher. We would
break through nine, 950, 10, and keep,
you know, squeezing higher,
but we didn't. So, then look at WETO at
the open. This one gives us that move.
It breaks the high, and the high was
from the other day.
So, it breaks the high and it doesn't
just give us a little topping tail and
then reject, it keeps going. So, I got
in here right in this area. It tops out
there, it then pulls back, and then it
keeps going. It pulls back and does that
nice ABCD pattern, has now gone from 15
all the way to $21 a share. And you know
what? This one, for the most part, went
without me. I had a trade early on, I
was dialed in on it. I was like, this
could work. And then I said, you know
what? Listen.
You're up $52,000 today.
Let's not screw up a good thing. You
made back the majority of what you lost
on Friday, which is phenomenal. And if
you size up on a trade like this with
10, 15, 20,000 shares, and you catch one
of these drops, right? So, what was the
peak on this little false breakout? 16.
And how much did it drop? It dropped
from 16 back down to $14. That could be
a $30,000 loss.
How stupid would you feel if you turn a
$60,000 day and you cut it in half, or
more than half?
And so I said, you know what? Just stop.
And I know it's hard to watch these
things go without you, but just stop
because the downside risk of giving back
profit and, you know,
whatever is not worth it. And I'm still
technically I'm still in a drawdown. I
was red $64,000 on Friday. I'm up 52
today, so I'm still down 14,000, not
including commissions for the last 2
days. I've still got some, you know,
work to do to get myself back into the
green, or back back to the high relative
of my peak for the month.
So, get in, get green, get out. Now,
I I will admit that I did not follow the
philosophy of break the ice with small
size.
I instead followed a philosophy
I don't have a good name for it, but the
philosophy was wait,
wait,
wait, and then swing really hard. Um
and I do take that approach from time to
time. Um especially in a market where
I'm quite confident that we are going to
see good moves, this kind of drop is is
tough. Peak of 24, drop back down to 20.
It's a four-point swing.
Um so yeah, maybe one of you guys can in
the comments can think of a good analogy
or a good phrase for that um
that strategy. But it's it's kind of
like it's a little bit more sniper, you
know, you've only got so much ammo,
which is not really true. I mean, I
could take as many trades as I want, but
it's being very selective and just
waiting and waiting and waiting and then
just striking. Um what's the what's the
animal that does that? Uh that's like
really patient and then just, you know,
attacks. I don't know. Think of that
animal and that's what that setup is
called. Uh but it's got to be a cool
animal. Don't come back to me with like,
you know, a stupid crab or a lobster or
something. I don't want to be a that's
not a lobster a strategy. Cool. So,
think of a cool animal and then maybe
I'll start using it.
Uh but in any case, uh that was kind of
the approach and
that approach generally does work well
um when I'm also in trader rehab with
the big difference that if I'm truly in
trader rehab, I have to moderate myself
by not taking a big position uh as much
as I might want to. I didn't put myself
into trader rehab yes uh from
yesterday's loss or Friday's loss and I
didn't last week either. I felt that
both of those losses were more of a
symptom of of my emotion and not an
underlying issue in the market. Now, on
the other hand, if I'm going to continue
to trade emotionally and continue to be
really
um you know, reckless with how I'm
managing risk, then that several losses
I could incur back-to-back and then I
would have to go into trader rehab. Uh
but because I'm generally right now
right more often than I'm wrong, it
tells me that the market is still
favorable for my strategy. I am making
some mistakes, but I'm generally moving
in the right direction. I do need to get
better at tightening up and walking away
sooner on the red days. And so, that's
something that I have to really
exercise. But yeah, I was able to
exercise it to a certain degree today by
walking away without overstaying my
welcome on W E T O.
Um which, you know, if I jumped in that,
let's just say I jumped in that would be
crazy, but for a dip and rip at 22, for
squeeze into 24, and then from 24 it's
going to go up to 30 and then 35 and 50
and all of a sudden I'm holding 10,000
shares down $4 a share.
I'm right at 40 grand. And what's it
showing on the resumption? 1850. It's
going to open another dollar a share
lower. Down 50 grand. My whole day is
ruined. I It's just
So,
you know, I'm trying to remind myself
that
we are seeing enough good opportunities
each day that if I'm patient and then
just, you know, take one really good
trade, that could be more than enough.
And probably, I mean, again, you could
argue just take 10 medium trades
uh versus one big trade. Because if you
take that one big trade and luck of the
draw, like my first trade on um IPST,
you're wrong, uh you know, you might
still have 80% accuracy, but if you blow
out and hit max loss in your first
trade, then you'll never get those, you
know, six or seven more trades. And I
think that that is a fair point. I think
I took a bit too much risk on that first
trade today.
I really thought it was going to go
there, and it uh and it didn't. Uh but
then I said, "Well, all right, I guess
it's over." And it didn't die. And so
then when it tried again, I was like,
actually had even more conviction that
it was going to work. I took even a
bigger position because I just felt
like, all right, now this is really um
doing what I thought it what would do.
So, right idea, wrong timing. Anyways,
kind of a lot of thoughts um here on
this recap, but I hope you find it um
helpful. As always, I'll remind you that
trading is risky. Easy come, easy go, as
you've seen in my trading for the past
10 days. Big roller coaster ups and
downs, but I'm kind of on my rally back
up and uh going to try to make this a
great week. So, as always, please manage
your risk by practicing a simulator
before you put real money on the line.
My results are not typical, and there's
no guarantee you'll find success,
whether you trade with me or you learn
on your own. So, please practice in a
simulator before you ever put real money
on the line.