Hey everyone, Ross Cameron here! It’s time to break down today’s trades and the recovery process after yesterday’s tough red day. Yesterday wasn’t just any red day – it was my first max loss since June. Needless to say, it threw me off a bit. But instead of dwelling on it, I saw today as an opportunity to get back on track and rebuild my momentum with some new discipline in place. Let’s dive into the details of how that happened.

Yesterday Was Rough But Red Days Are Part of the Process

Let’s talk about what led up to today. Yesterday wasn’t just slightly red – it was a struggle from start to finish. Right out of the gate, I took a couple of losses, and I found myself digging in deeper rather than walking away. I overtraded, and that was a big mistake. Chasing losses is a common thing I warn traders about, but occasionally even I fall into that trap.

One thing I’ve learned over the years is that red days are unavoidable if you’re day trading. When you make trades multiple times throughout the day—especially when focusing on momentum trades—there are bound to be rough patches. It’s all about how you respond to those red days that matters.

Changing the Mindset After a Loss

Instead of beating myself up all night about how much I had lost, I decided to focus on something different: reframing the loss as a chance to re-focus. I reminded myself that I’ve had a great streak and, after a max loss, there’s something a little exciting about starting fresh. It’s like getting back on the horse after falling, but this time with a clearer head.

I wrote down my plan on my trusty whiteboard as part of my prep, putting down notes like “Go slow” and “5K share cap until I’m up over a thousand.” By listing out these rules, I ensured I’d approach today with caution but also a desire to bounce back.

Time to Tighten the Screws on Trading

I set out this morning with one main objective: to stay cool and keep my trading size small until I had a cushion. My recent red day reminded me to “batten down the hatches” and not push too hard before the right momentum kicked back in. The focus wasn’t on hitting a home run; it was on small, green days and letting them stack up.

One key to day trading success is sticking to a disciplined strategy, especially after a loss. I reminded myself to cap my shares at 5,000 until I was up, and not to fall back into the habit of overtrading. Caution was the name of the game today.

Trading Momentum and Finding Opportunities

Momentum trading is my bread and butter. This style relies on finding stocks that are moving fast, often due to breaking news. The plan is simple: ride the wave of volatility for small gains, while keeping losses as small as possible. It sounds easy, but it takes discipline and careful selection of trades.

After the max loss, I reminded myself that each trade was a chance to rebuild. Statistically, if you’ve got solid accuracy and you stick to your rules, you should eventually win out. My accuracy over the past months has been hovering between 65% and 75% (Results not typical), which means I could realistically expect to hit 6 or 7 winning trades out of every 10.

However, conditions have to be right. Yesterday, I just ran out of opportunities. There were fewer stocks with the right setups, which led to forcing trades that weren’t A+ setups. That’s why I decided not to push too hard today before finding real, solid opportunities.

Staying Disciplined and Following the Plan

Today, I hit the ground running with my first few trades early in the morning. I made sure to go slow and stick with stocks that met my criteria. Right off the bat, things felt better. My first couple of trades were solid, and I quickly found myself up $1,000 from the first trade, then $2,000 from the next. (Results not typical.)

These early wins gave me the confidence to keep going but still stick to my rules. I wasn’t about to fall into the trap of giving it all back by overtrading midday, which is when market action tends to be slower. I ended up wrapping the day close to $10,000 in profits, proving that my game plan was working and that it’s possible to recover after a bad trading day. (Results not typical.)

Analyzing Today’s Trades and Lessons Learned

One of the key stocks I traded today was SMX. As soon as it popped on my scanner, I knew it fit well into my momentum trading strategy: low float, moving fast, and offering tons of potential. I got in early and picked up multiple small wins. I bought pullbacks, rode waves of momentum, and kept my risk managed tightly.

Outside of SMX, I took some trades on others like BKYI. I was careful to manage my size and consistently reminded myself that one bad trade could erase all my progress. These small adjustments were crucial in avoiding mistakes I made yesterday, where I let emotions and frustration guide my actions. Today, I let the setups and data do the talking for me.

Building Confidence After a Tough Loss

The biggest takeaway from today is how important it is to respond carefully after a red day. When you’re in a hole, you don’t need to take giant risks to climb out quickly. What you need is discipline and consistency. One green day isn’t just about the money—it’s about getting your confidence back and proving that you can still follow your plan.

After yesterday’s woes, I used today to focus on process over profit. I took time to slow down, reassess the markets, and prepare myself mentally. And that paid off. I managed to avoid getting stuck in emotional spirals by keeping my trades calm and collected, while also reacting to the opportunities the market threw at me.

Conclusion

If there’s one major lesson from today, it’s that discipline in day trading is non-negotiable—especially after a loss. Building back after a red day is 100% achievable, but only if you’re able to shut out the emotional noise and stick with what works. For me, that meant taking smaller trades, focusing on high-quality setups, and stopping myself from overtrading.

As always, these results are not typical, and day trading is risky. Most traders lose money, and it’s important to practice in a simulator before putting real money on the line. If you’re in the early years of your trading journey, don’t neglect the important steps of developing discipline, managing risk, and building systems that help you stay consistent even through tough markets.

Take your time, keep learning, and remember: the market is an unpredictable place, but the one thing you can control is how you react to it.

Stay disciplined and trade well!

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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross

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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.