Hey everyone, Ross here with another trading recap for April 23rd, 2024! It was one of those mixed-feelings kind of days in day trading – a red day. While no trader ever really wants to encounter losses, they’re a part of the trading process, and handling them wisely is what sets successful traders apart. I ended the day down $1,536, which, strangely enough, I consider a successful red day. Here’s a breakdown of how the day unfolded, the decisions I made, and what I’ve learned from it.

The Importance of Capping the Downside

One of the key strategies in day trading is keeping the losses small. This is vital because it’s much easier to recover from a minor setback than a major loss. Today, I traded three stocks, and even though I was down, I managed to cap the losses to prevent a deeper red day. My biggest loss came from a single trade where I was down $1,700, but considering the volatility of the market today, I managed this risk carefully to avoid more significant losses.

Trading Breakdown

My first trade was with EDBL, an early yet modest trade which I entered with a small position. Although I only made a superficial profit of $190, it gave me some early insights into the market’s mood for the day. The stock showed a slight rise but quickly rejected higher prices, signaling a lack of strong momentum.

SMFL showed more promise initially. I jumped in during a high point and was up by $1,500 shortly after. However, the market reversed dramatically, and I saw those profits disappear. Throughout the morning, I made several small trades, trying to capitalize on minor breaks and movements, but the stock lacked a clear catalyst to sustain its rise, leaving me with a meager $29 profit after a final rejection at $7.15.

PALI was the only stock with substantial news behind it, yet it proved to be highly volatile and choppy. I attempted to buy the dip at $7.85, hoping for a rebound that never materialized. I doubled down, adding more to my position, only to face a full retracement. This move resulted in an $1,800 loss despite later making back around $500 when it briefly broke over VWAP before falling again.

Managing Share Size

Today was a classic example of why managing your share size is crucial. I kept my shares capped at 5,000 until the point where I thought I might exceed $1,000 in profit. However, the market didn’t allow me to elevate my day trading size safely without incurring more significant losses. This strategic decision probably saved me from a much redder day, affirming that bigger isn’t always better when it comes to share sizes, as slippage can eat into profits and amplify losses.

The Broader Market Context

Overall, it was a choppy day across the board with leading gappers only showing about a 42% increase, and many stocks didn’t maintain their initial highs. The lack of strong and sustaining news or market drivers contributed to a tepid day trading environment where substantial gains were hard to come by.

Being a Good Loser

Part of day trading is mental, and being a good loser is as important as being a winner. Today was a day to exercise discipline: to take the small losses, to step away when needed, and not to overstay in the market. Tomorrow, I’ll be back, hopefully facing a more favorable market. But even if not, today’s experiences have equipped me to handle whatever comes.

Looking Forward and Staying Grounded

In day trading, no single day should dictate your overall success or strategy. It’s about the long haul—maintaining consistency, keeping a level head, and managing your trades smartly day in and day out. Today was a setback, a small one in the grand scheme of things, and it’s vital to keep that perspective.

While today ended in the red, it’s but a small chapter in the larger story of my trading career. The lessons learned from these days are invaluable and contribute significantly to better decision-making in the future. Tomorrow is another day, with new opportunities and challenges. As always, discipline and mindfulness in day trading can significantly influence not only your profits but also your overall trading journey. Thanks for reading, and happy trading!

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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.