Today is a red day recap, back in the saddle and in the red.

So, it was a green day before I ran into DCFC and I have about a thousand dollars of profit in my main account and then profit in my retirement.

Let’s look at the day how it unfolded and how it ended. So it began with NVCT. This was the first one that I traded. And this was a stock that you guys had yesterday, solid momentum. I mean, really this was pretty awesome. Halted up, squeezed up, pulled back and then ripped back to a halt up, dip and rips up to eight, pulls back and then rips up to 10.35.

Another one of those stocks that moved pretty quickly, but did in this case give some nice pullback entries. So this morning on this candle right here as it started to spike up, I jumped in about halfway up on that candle. I bought high, I filled 2,800 shares of a 5,000 share order. And that was in my main account and took about 30 cents of profit off the table, $989. Then I realized I was in my main account, switched to my retirement and added back.

So the problem on this one is that basically it had two green candles and then 30 minutes of sideways price action before breaking out just for a second and then selling off hard. And that’s frustrating. I traded it through this price action, dip trades off of $8, psychological support. It maps back up to 8.46. I mean, that’s a nice range, 50 cents. Drop back down to the VWAP, back up here to 8.50. Off the VWAP again, back up to 8.40. Off the VWAP again, held into the open for a long and looking for a retest of the premarket highs, hit a high of 8.61 and then flushed.

So it went red on this trade, went from up about 5,000 on the day to up, I think maybe I don’t know what it was. And then got back in for the red to green and lost on that one as well. And then bought at 7.29 false halt down, but it ended up being a real halt. I thought it was going to be a false halt, it ended up as a real halt. And then it bounced back up to 7.75 or so on the resumption, 7.65. So I finished up 2,500 plus a thousand, so 3,500 approximately on this one. Green, but not like crazy good, pretty choppy and unfortunate it didn’t hold up at the open. Disappointing. Writing on the wall perhaps.

SOPA, this one squeezes up here halts up at 5.12 opens high, sells off back to 4.80, then rips back up high a day entry right here, 5.44. Sold going into the halt 5.64, about 20 cents. I took the entry right there for the squeeze, opens, taps that level for just a second, pulls back, comes back up to 5.80 and then sells off again. So a thousand bucks on SOPA. And then PIK, PIK pops up on the scanners and I saw two million share float. I jumped in at 5.30s approximately. Let’s see. This candle hit a high of 5.40. It did drop down here for a second, but then popped up, dipped down to 5.20, then back to 5.50. And then on this candle flushed all the way down to 4.78, I lost 3,800 bucks.

At that moment. I was up to only $150 on the day between the two accounts I was like, “All right, that’s it. I’m done.” And then desperation and FOMO kicked in. DCFC halts up right here at 8.42. It resumes high. I watched the dip. I tried to punch the buy button right here on this candle and I did not get filled, but first candle to make a new high. It goes to 10.95. FOMO long at 10.50. I accidentally bought 9,000 shares. I sold it going into the halt at 10.95 up 4,500. It rips up here and then I added back at 11.50 right here for the first one-minute candle to make a new high.

It hit a high there of 11.90 so I was pulling back. So I got back in. Maybe it wasn’t 11.50. Maybe it was a little lower than that, but in any case, average I think was around 11.32 and then it sold off to the VWAP. I averaged down at 10.30, 10.40. First candle to make a new high popped back up to 10.85. And when it broke back here, I cut the loss and I had to. So just like that I lost 15,000 on that trade, gave back the 5,000 I was up and I’m down 11,000 on it.

So here’s the thing. The first micro pullback was great. I missed it. I then took the long, same as on SOPA for the breakthrough the high, sold it. And then I added back for the break of 11, but I got filled, I think, a little high. I don’t remember what I did on this trade, but then added back right in this area for first one-minute candle, I was looking for a breakthrough 12. And it was too high. That was the third pullback. I see it now, but in the moment I didn’t see it. And that’s always tough trading. It’s easy to see things in hindsight. Everything can look so obvious, but in the moment especially when you’re trading on the tape and level two, you can lose sight of that.

So I’m glad I cut my loss where I did at 10.30. It went down to a low of 8.30. So cut the loss, but unfortunately I am red here on the day. So I might actually grab my metrics here. And this is a good enough time to kind of take a little step back, look at my metrics for the month. Sort of see where am I at? What’s been working? What’s not working? So I’m just going to export my data so we can take a look at it real quick here. Let’s see. So this’ll just take me just a quick second. So from the first through today and desperation kicked in a little bit here because today was my sixth or seventh consecutive green day, was and as soon as I went and red, “No way. I’m not going to let this ruin that streak.” And that was part of averaging down instead of just cutting it quickly.

It was that frustration and it doesn’t take much. Disappointment from missing the move yesterday and then it just compiles is what I meant to say. All right, so this will be as of yesterday. I don’t know if I have any other trades in my main account so far on the month. Let’s see. So, all right. So these are my metrics there and I’m just going to check my other account real quick to see if I have any trades to import. I have today, but that won’t be available until tomorrow. No trades yet. Okay. So I just have my main account. All right. So let’s see. So let’s go into, well, let’s look at overview. Let’s look at the last, this first.

So the last 90 days, you could see obviously. I really can’t complain. That’s $1.5 million in profit and I’ve given back a little off the top. Yeah, obviously, but I really can’t complain. So the last 30 days, all right, this is why I complain a bit. I was up 2.95 and then lost a hundred off the top, 1.93. And have now bounced back to 2.38. So I’ve made back, $40,000, 45,000. Well, but today I’m down 11,000. So the last couple red days were 38,000, two $38,000 red days. This one was 16. This one was eight. So today is a smaller red day, which is [inaudible 00:08:52].

Oh, and let’s look at the calendar here for one second. So the calendar, yeah, today was the seventh consecutive green day after that red streak right in there. And I really wanted to finish today green, but I couldn’t. So, let’s see. So we’ll go from February 1st. So, pretty quick base hits this month. I was only up 7,400 in gross profits. So it’ll be down about 3000 on the month. I haven’t had very many trading days obviously. This is only the fourth trading day for me because I missed Friday and Monday. So fourth day in, but you can see these gains are small. Average daily gain only 2,500 bucks. Average winner 500. Average loser 114. Accuracy 71%. Well, that was great until today when I took a $15,000 loss.

So my profit/loss ratio is going to be pretty poor right now, which is disappointing. So this is for sure one of the longer stretches that I’ve had recently where things have been slow. I’ve been keeping my head above water. I have profit, 52,000 here and accuracy is good 72%. Accuracy today is still good. Accuracy today was fantastic. The problem is that I had six small green trades or seven and then caught a big loss. And that’s what keeps happening. And that’s speaking to something that’s, of course, out of my control, which is the greater market, the market that we’re in.

And so I’ve had periods where things have been slow. This isn’t by any means the first time. I’ve been trading for a long time. So I’ve had periods where things have been slow and we’re in one right now. This was a draw-down in the end of January, rebounded a little bit last couple days. And then flat going into February only three days, four days now into the month. So now down like 4,000 or whatever dollars, 5,000 on the month. In a hot market, it’s like nothing.

A hot market, that’s one good trade in one second, could be in and out in up 5,000. But we’re not in a hot market right now. We’re in a market that is pretty old. And in this market, we’ve seen some opportunities if you’re willing to be quick, get in, get your base hit, get green and get the heck out. And on this one, your first pullback worked, your second pullback worked. And then as it started to form a five-minute setup, it failed. On PIK, that one, the first pullback really didn’t work super well. Probably just not enough volume on this with no clear catalyst. It hit the scanners, but just wasn’t strong enough. Today wasn’t the right day to focus on that type of.

But if we switch to NVCT, this one clearly micro pullbacks in this area here eight and then 8.50, provide some opportunities, dips off the VWAP and starting to get a little choppy. So you’ve just got to get green and get out. Get green, get out. Don’t overstay your welcome. Every day that I’m overstaying my welcome I am finishing the day red in this market. So there is a way to trade through a cold market and stay green. And I’m doing it. Part of that is making some money and giving some back. Making some money, giving some back.

I mean, it depends on where you say the cold market started. If you say the cold market started on the 13th year. I would say it was cold the beginning of January and even the end of December, but I just managed to trade better. But my red streak started at the 13th. So we go back to January 13th. In this period here, that was a green day so we’ll start on the 19th. We’ll start on the first red day. So on the first red day there, so in this stretch here you can just look at the metrics of this cold streak. So lost about a hundred grand, made back a little more than half, but lost 11,000 today. So I’ll still be down 66,000 versus the highs.

It’s a net profit, but the accuracy here is 70%. The accuracy’s good. That profit/loss ratio, terrible. And so what that is is five small green trades and then a trade where I get in too high, I don’t cut the loss, I average down the next thing, huge loss, $30,000, 40,000. Biggest loss 37,000. Biggest winner 21,000. Losers are longer than the winners. Holding the losers too long. A little bit of hope and prayer there. A little bit of desperation. So that’s not great. These aren’t great metrics. I’m not going to disagree with that. If someone’s going to be critical, I would counter that there is no strategy that doesn’t have some period of consolidation or decline.

Like right here there’s a pullback, right here’s a pullback. There’s no strategy that doesn’t have some pullback days or some flat days or breakeven days. The only people that make money every single day are the stock brokers who make money on the commissions and aren’t trading. But traders, we take risk and you have to be willing to take risk. Now, in case I didn’t already say it. My results are not typical. Trading is risky. While I’m talking about a red day here, I do have a lot of profit that I’ve been able to build for my account. If I’m going to brag for just one second to offset all the talking about my losers, I’ll go back acted January 1st, 2017, which is when I started with less than $600 in my … Over 10 million in gross profit.

So this momentum strategy that I trade, that’s 18,000 trades over five years. This strategy works very well, but the reality is there will be periods where the market is hotter and periods where the market is colder. So that’s going back to 2017. You could also say that from 2017 through today’s date, the market generally has been strong. And while that’s generally true, it doesn’t mean that there weren’t periods like here, here, here, certainly here, right in here and here where the market dipped. And we’ve got another one right here.

Now my trading usually will be better when the market is stronger because small caps will typically be stronger if the market is particularly weak, but it’s natural that that’s a rising tide that lifts all ships or a falling tide that lowers all ships, if you invert it. So yes, during a colder market in the overall market, small caps will typically suffer, but you still had a great opportunity. Yesterday I had NVCT. Regardless of what the overall market is doing, you will have anomalies, you will have exceptions to the norm. And these are stocks usually that have some type of catalyst. This was a recent IPO, which is a popular daily setup.

So in any case, there’s still opportunities, but coming in with the expectation that we’re going to see a big, big move like the types of moves we were seeing in a hot market every other day or every day is not realistic in a cold market. And that’s my biggest struggle as a trader. That has always been my biggest struggle. I come in every single day optimistic, aggressive and in a cold market I usually dig myself a hole. I usually do. I’m not good at sitting on my hand. In fact, today, it would’ve been better if I hadn’t taken a single trade because finishing the day red.

But it’s very hard for me to come in and not trade. It would be very hard for me to sit and watched this move and not trade. It would’ve been hard for me to sit with DCFC and not take a single trade. I see the opportunity. I want to trade it. And what I underestimate is that the market right now is just not as high as it was before. You know what I mean? Look at this, it’s curling back up. Well, it’d still be down over a dollar a share if I was still holding here. And for those who say, “Hey, you should just held the whole position.” If I held all the way down to 8.30, it would’ve been down $3. A share. $3 a share is a serious draw-down. You don’t want to hold that.

You got to cut the losses. You got to learn from them. You got to move on. But for sure something I struggle with is taking my foot off the gas when the market is cold. And I need to get better at it. So there’s always room for improvement in your strategy and in your trading. Certainly that’s true for me as well. I hope that we do start to see some better momentum because I know when we start seeing things that are really strong, I can stack up the profits really quickly and I can do quite well. But in the meantime, I have to be patient. When I let that desperation kick in, when I let FOMO kick in, that’s when I have problems.

And today I went from green on the day by about 5,000 to red on the day by about 12,000, 11,000. Well, 11 minus or plus the thousand. So a little over 10,000, but still it’s a red day. I’m not happy about that, but part of trading. So you need to try to always learn, especially from the red days and try to keep improving, try to keep getting better. If during a red streak you lose money, but you can minimize how much you lose then minimizing the losses is by itself a little victory. So that’s it for me. I’m locking up the red day here and going to try not to let FOMO get at me and just come back tomorrow fresh slate again.

And hopefully tomorrow we see some better opportunities, but I suspect it will continue to be a little cold and it’ll just be sporadic. Now, a couple quick hits here and there and not overstay my welcome. That’s probably the best way to get through a choppy market. And I could have finished today easily up four or $5,000, if I’d been willing to stop sooner. That would’ve been a sacrifice to anything that might happen after I stopped, but it would’ve been the right move today. And it generally is the right move, but it’s a hard decision to make when to stop trading each day.

So that’s it for me. I’ll be back at it tomorrow as always. Those on YouTube for the morning show, I hope you tune in. And hopefully we do have a little bit more action and start to see things turn off this slowness. But today easily could have been my seventh consecutive green day. I just came at it too aggressively. And when I started to give back profit, I didn’t walk away soon enough And I dug myself a hole. That was within my control to not let that happen. So that’s on me. All right, I’ll be back tomorrow. We’ll try again.

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