MAX LOSS MONDAY

What's up everyone? All right, in
today's episode, I'm going to break down
the biggest gainers in the market this
morning. I'm going to walk you through
the trades that I took and I'm going to
share with you my outlook for the rest
of the day. As we sit right now, I'm in
the red and I'm getting beaten up.
September has been hands down the worst
month in over a year. It was a year ago,
first week of October, that I took a
$175,000
loss. Yikes. And I spent the rest of the
month trying to just get back to zero on
the month. I finished that month up like
20 or 30 grand. So, I ended up finishing
green. And that was the worst month I've
had since right here. So, it's been
almost a year since I was faced with
that type of emotional battle of a huge
loss, a slow, painful recovery in a
colder market. Now, I will say I've had
a few big losses this year, but the
market has overall at those times been
strong enough that I was able to recover
those losses very quickly and that
seemed to have changed towards the end
of August and coming into September
here. August I did have a few big losses
as you guys saw, but I was able to
bounce back pretty quickly and then
September things kind of fell apart. So,
as I'm sitting here today, it's a max
loss red day for me. Let's go ahead and
jump on the screen share and start
breaking it down. So, I'm down $31,000.
I'm not happy about it. This is Look,
it's discouraging. This is the hardest
part of being a trader is coming in for,
you know, waking up early, sitting down,
losing 30 grand, and feeling that
there's really no chance of recovery.
Now, that's my feeling. Others might
trade differently. Others might say,
"You're down 30 grand. Why stop there?
You could certainly make back some of
this. There's, you know, it's only 9:30.
there's going to be other stocks moving.
And while that's true in theory, what
I'm noticing, uh, and this is actually
quite an interesting pattern, is that,
you know, my first trade was Vwave,
second trade was MSGY. So, small winner,
smaller winner, then I traded MTech for
a $9,000 loss, traded LABT,
then to PMAX. So, my losses seem to be
generally moving in the direction of
getting bigger. Now, when you're in that
kind of um you know area or kind of
trend or theme or whatever you want to
call it where the losses are getting
bigger and bigger and bigger, you need
to at some point say enough is enough
and I'm going to stop. You know, you
don't want to keep going further into
the red. Um, obviously what I would
prefer to have happen is, okay, maybe I
had a big loss and then the next one's
smaller and smaller and smaller and now
I'm going to start working on, you know,
a little bit of a recovery and maybe it
kind of looks like that. That's that's
more what I would be willing to work
with. Unfortunately, as we sit right now
today, I started with, you know, a
couple of tiny green trades and then
flipped to red, uh, deeper red, and then
much deeper red. So, the only way that I
can turn this around right now is
actually, uh, going to seem
counterproductive. It's to reduce
share size.
So, you might think reducing share size
is not going to help you recover this
loss. And on the surface, you would be
right. Uh, but it's actually exactly
what I need to do because what happened
even just on this last trade of Pmax is
when I started selling, I sold the first
10,000 shares at 224
and the rest I got out at 194. I got 30
cents of slippage on 20,000 shares
essentially because the price dropped so
quickly, I couldn't unwind the position.
So, not only was I wrong on the trade,
but I had so much size that the amount
that I lost became larger due to
slippage. Now, when you're winning and
everything's going the right way, you
can kind of make up for the slippage
just in the fact that you've got big
momentum, but slippage is always a
factor. So, what it means is the
difference between where you press the
buy or sell button and the price you
actually get filled at. And so on
winners they're going to be a little
smaller because of slippage and losers
will be a little bit bigger and in this
case quite a bit bigger. So this is an
unfortunate aspect of trading that makes
it so to a certain extent the cards are
always stacked a little bit against you
between you and the market makers
because of this factor of slippage. So
when it's cold slippage can make it even
worse. But you have less slippage when
you trade with smaller share size. And
so ultimately what I really do um you
know need to accept is that in order to
make this recovery the first thing I
need to do is stop losing so much and I
wouldn't have lost nearly as much today
if I'd been trading with a quarter of my
position sizes. So instead of you know
50 and 60,000 shares if all my trades
today had been you know 10 to 15,000
shares obviously I would have lost a
quarter as much. So instead of being
down 30,000, I'd be down more like 7500.
But I would argue I'd probably actually
only be down around 5,000 because a lot
of the loss was due to slippage. And
with smaller share size, you get faster
execution on your orders. Right? So this
is something that when the market's hot,
I size up. I accept the slippage. But
because the market's so strong, it's
forgiving and I can still do really
well. But when it cools off, man, I'm
never quick enough at taking my foot off
the gas. I always think I should have
slowed down sooner. And so, you know,
Friday was a red day. And I came back
this morning and the first stock that I
traded was VWave. So, let's look at
Vwave to start the morning or to start
the recap. So, V well, it started the
morning as well. So, Vwave, this stock
ended up doing a full round trip. It's
now down 10% on the day. So, we rally up
and then to seven and come all the way
back down. So, on this one, I did break
the ice and take my first trades on it,
but I was a little bit, to be honest, I
was a little unsure if it was going to
work. Um, this one initially pops up
right here to a high of about 560. It
pulls back on a higher volume red candle
and a topping tail. Then it pushes
higher with one, two, three more topping
tails. Then it drops back down. And then
it comes back up right here. And I took
my first entry right at this level for
the breakthrough this double top. And
that was pretty risky. Buying at the top
of a topping tail right in this area
could be a rejection. Now it ended up
going to seven and I was able to get out
but not with a lot of profit. I only
made 400 bucks. So first trade was not
that impressive. Didn't work out very
well. It rejects back down and then
that's that. There's no more trades.
Then MSGY pops up on the scanner and I
said to myself, you know, I yes, this
made a really big move on Friday, but it
pulled back quite a lot. On the other
hand, uh it is rallying up here this
morning. So, as it started to squeeze
right through here, I jumped in for the
break of 8. It breaks 8, it goes all the
way to 840 and then it flushes down to
740. I mean, I could have easily lost
quite a bit on that and I got in at the
half dollar whole dollar, but I ended up
making $261.
Then we had MTech that came along. MTECH
hit the scanners. This one started
squeezing up right here. And I jumped in
right at the top of that candle right
there. This was a flat top breakout
setup. That's the flat top. And I got in
right up. Oops. Sorry. Um I got in right
there. And I bought 60,000 shares on
that trade. It's a cheaper stock. And
one of the things I had said is that
with these cheaper stocks, I really
can't make good money unless I take big
size. So I got in at 190. I was looking
for a quick squeeze up to 6 60 sorry um
220 205 1015
you know 6,000 $9,000 9 roughly
something like that. Um anyways jumped
in and immediately it rejects and I'm
down 10 grand on it. I cut the loss I
had to right that was the right move. So
I cut the loss on that. Then LABT pops
up. LAT and you know you could see like
the writing was clearly on the wall. Um,
and I probably should have stopped
sooner. LABT also did a full reversal.
Came all the way back down. So, on this
one, it initially pops up right here. It
pulls back. I get in down here for first
candle to make a new high. It rallies up
here and I'm up four grand. Then it
pulls back right here and I get back in
for this one minute candle to make a new
high and I lose six grand. So, I go from
green to red on it and it unwinds. And
so, at that point, I was down $11,000 on
the day. Then PMAX comes along and Pmax
I didn't trade it initially because the
market had been a bit cooler this
morning. So I thought I don't know if I
should trust it. Let's just see what it
can do. However, I looked at this and I
said realistically we've got a target
here on this of about um uh 288. So it
ends up popping up here. I missed this
entire move. So it goes without me
because I was already in the mindset of
ah this morning's not going so well. I
think I'm just going to hold off. So, it
pulls back here. It rallies back up.
Then it pulls back. It dips down. And I
ended up getting in this now. Where was
it? Um
Oh, let's see. So, that was 80.
Trying to remember where I got in this.
Let me Oh, let's see. We could probably
just quit my order. So, I got in at 250.
Um,
and that was at 833. So, is that right
through right here? Yeah. So, I bought
this right down here and I was looking
for the pop back up. uh first one minute
candle to make a new high and then we
immediately flushed back down and I sold
in this candle right here. Just
absolutely terrible, just terrible. And
so, you know, it just gosh, what a what
a disaster. So, that was just awful. And
so, I ended up having two, four, five
terrible terrible trades today. I mean,
the first two trades weren't great
either, right? The only one trade that
was good was LABT. So, basically today I
was green. I was I had one out of six
trades that were good. Uh and that's
pretty that's not acceptable. I'm not
going to do well maintaining that type
of accuracy. There's just no way around
it. And I'm certainly not going to do
well with that accuracy when the average
losers are as big as this. So
something's got to change. Now what
really needs to change is the market. I
mean I I'm going to point I'm not going
to look inward. I'm going to point
outward to begin. I'm going to say the
external factor is that the market's
cooled off quite a bit. All right. So
the market needs to change. If the
market was hot, today would be very
different. Okay, so yes, the market
should heat up. I would love it to heat
up, but you know that it will when it
when it wants to. You know, when things
heat up, they heat up. And when they
cool off, they cool off. So now I got to
look back inward. What can I do right
now? So reduce share size. I don't want
to, but it's the right move. Reduce
share size because what's going to
happen if I keep just going, you know,
full throttle is I'm just going to keep
hitting my head on the ceiling. I'm just
going to take these big losses. So
reduce share size number one. Um an
alternative is reduce um account size.
So if I reduce my account size, then I
simply can't afford the shares here. So
these are two different approaches. If
you're with a broker that doesn't allow
you to put a max share size on your
account, then I would just reduce the
account size. Because the problem is you
can say, "Oh, I'm only going to trade
with 10,000 shares." Which is what I had
actually said today. I was going to do
15,000 shares. And then MTech pops up
and I'm like, "Well, this is so cheap.
Um, I'm probably going to need to take
bigger size on it." So, the next thing
you know, I'm in 50,000 shares of this
thing or whatever it was. And then once
I'd broken the ice with that bigger
trade, uh, you know, and I was red on
it, LABT, I did 30 40,000 shares of it,
whatever it was, right? And so then
40,000 shares of PMAX and now I'm just
trading with big size. uh arguably if I
didn't have the buying power that would
have been a better solution for today.
So, uh you know, these are the two
things that I'm both considering. Um
drawing money out of my account to
reduce the account size. Um yes,
reducing uh share size, but I already
know that I have a hard time um sticking
with that because in the moment I'll see
something that makes me think otherwise.
And this comes back to an issue of, you
know, discipline. So, what can I do to
increase my discipline? Sorry, I'm not
very good at writing while I'm speaking.
So, if I can if I can increase my
discipline, um because right now my
discipline is probably a little bit on
the low side, right? I you know,
overrode this max size today. Kind of
got a little stubborn. So, increasing
discipline. Um you know, guided
meditation.
Um so guided meditation on you know
FOMO, frustration, anger, disappointment
those are really helpful. Any kind of
meditation is good. Um less well
exercise is another one. Um you know
working out
and then another one is you know getting
out of the office.
Um and this is important because it
separates you from the thing that's
triggering you so much uh just to help
you kind of cool down. But you can only
distract yourself so much. You still
will need the discipline in in the
moment when you're trading. And I'm
going to need that tomorrow. So, my plan
for right now, um, this is not what I
was hoping for on Monday morning. Look,
it's that's the truth. I wasn't hoping
to be read $30,000 today,
[sighs and gasps]
but I am. So, now it's a question of
I've dug the hole. So, now how do I get
myself out of it? And you know, the re
the reality is what I just walked you
through is is the best approach. And
that's not fun. It's not fun to have to
accept that I won't be making any big
gains for the next, you know, few days
or maybe longer because I'm going to be
throttling myself back with smaller
share size and this and that. Um, but
that's the way to chip away at a loss
and to make it back. That's the right
way to do it. So, this is where I'm at
here. And uh you know September, as I
said, it's been a rough month, but this
is this is the hand that we've been
dealt. So it is my failure to not have
adapted and adjusted uh more quickly to
what is clearly a colder market. So
that's where we're at here. Um as the
day goes on, you know, you've got a
couple higher price stocks, you got a
couple lowerric stocks. Um, sometimes
when things are cold in the pre-market
session, you will see more opportunities
at the open. Um, but I generally find
unfortunately because of the halt levels
that trading at the open is actually
quite difficult. So, no doubt traders
will be looking at some of these stocks
popping up. But if you're thinking about
holding during halts, just make sure
you're managing your risk and thinking
about your share size because once
you're in the halt, there's nothing you
can do. you don't know when where or
when it's going to open and you know you
could end up being stuck for a while. So
just try to take it slow, manage your
risk. This is a colder market and we
just got to get through it and get to
the other side. So with that, I'll
remind you as always that trading is
risky and my results aren't typical and
there's no guarantee you'll find success
whether you trade with me or learn on
your own. So please manage your risk,
take it slow, and I'll see you back at
it first thing tomorrow morning. I'll be
streaming at 7:00 a.m. for members at
Warrior Trading. And if you want to
check out the twoe trial, of course,
there's a link pinned at the top of the
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in the morning.