Hey everyone, Ross Cameron here! Today’s update is a dreaded red day recap. If you’ve been day trading for a while, you’ll probably know how it feels when red days start to cluster together. That’s been my reality lately, and it’s honestly frustrating. Here’s a detailed look at my last couple of trading days, the market environment, and where things went wrong.
Back-to-Back Red Days
As a day trader, red days happen. And sometimes, they happen consecutively. Looking at my metrics from the last 90 days, it seems like red days come in pairs. Over this period, I’ve had four instances of back-to-back red days, and today was another such set. Yesterday was a red day, and today, unfortunately, followed suit.
Discipline and Self-Control
Today was a max loss red day, setting me back -$6305.64. While I’m disappointed, I managed to keep my emotions in check better than I have on some other red days. But still, it stings. I was red on three out of four stocks today, after being red on all four stocks yesterday. I haven’t really had a good winner since Wednesday, which is, quite frankly, disappointing.
Market Context
This week, the stock market has been quite interesting. One of the heavy hitters has been FFIE—a stock trading over a billion shares of volume today. Despite this, I didn’t touch FFIE because it started too cheap for my preferences and seemed too volatile for reliable day trades. Holding it for a couple of days might have been profitable, but I didn’t feel comfortable with the intraday movement. Instead, I had a few other stocks on my radar that were the main focus. DUO, for instance, had a significant squeeze, over 200%, which was impressive.
Trade Breakdowns
FLJ caught my eye early and started the day with a promising move. It climbed from $0.60 to about $1.20 in no time. My first trade on it was at $1.33 for 5,000 shares. The stock was looking good, so I added 10,000 shares at $1.58, thinking I was on a winning track. Unfortunately, it quickly reversed and I got stopped out twice, leading to a $3,700 loss right from the start.
My next trade was on MDJH. I managed to make a tiny profit of $44, but it was practically a non-event. The stock did a significant jack knife move, and I narrowly dodged a loss on this one.
Trading on XIN was particularly frustrating. There was a big buyer with 20,000 shares on the bid, so I jumped in. The stock moved up, and another big bid appeared. But then, out of nowhere, a huge hidden seller came in, and the big buyers vanished. It felt like manipulation, which is never fun. I ended up losing $135 here, which stung but wasn’t a deal-breaker.
BNRG was the trade that finally pushed me past my max loss for the day. It jumped from $3 to $8, and I started scaling in at $5, added at $5.50, and again at $7, thinking it could hit $10. But it reversed quickly, dropping to $4, leaving me with a $2,400 loss.
Reaching my max loss means I can’t place any more trades for the day, which is a safeguard I’ve put in place. While it’s disappointing to lock in these losses, it’s also important to avoid digging a deeper hole. Today, this system ensured I didn’t chase more bad trades.
Dispersed Volume and Attention
One of the biggest hurdles today was the dispersed volume and attention across multiple stocks. When volume is spread too thin, it’s hard for any single stock to gather enough momentum for a solid run. Today, the volume was spread across at least a dozen different stocks. If all that volume had been concentrated on just one or two, we might’ve seen some explosive moves. Instead, the choppiness prevailed, and I paid the price.
Emotional Management
Handling consecutive losses is an emotional rollercoaster. It’s easy to get demotivated, but it’s crucial to keep a level head. I’ve had a couple of red days in a row, which is always a bummer. But if there’s one thing I’ve learned, it’s the importance of managing emotions and keeping them in check. Red days happen, and you have to be prepared for them.
Trading Adjustments
Given the current slump, I need to adapt. Reducing my position size temporarily and waiting for more proven setups are key steps forward. It’s all about being patient and not jumping into trades aggressively, especially when the market feels uncertain.
Final Thoughts
Despite the recent setbacks, I’m still green on the week, month, and year. So while these red days are tough, they’re part of the journey. You’ve got to roll with the punches in day trading and keep your eye on the bigger picture.
Thanks for tuning in to today’s red day recap. Remember, my results aren’t typical, and trading is risky. Manage your risk, take it slow, and I’ll see you back here on Monday morning. 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.