Red Day Recap: Tough Lessons in Day Trading


Hey everyone, Ross here! Today’s trading session was a red day for me unfortunately. Lately, red days often seem to cluster together for me. If I check my metrics over the last 90 days, the pattern is clear: two red days back-to-back, and it’s happening again. Yesterday was red, and today is red too. This is the fourth time in just a few months where I’ve had back-to-back red days. Let’s dive into the recap and break down today’s trades!

Another Max Loss Red Day

Today’s results were disappointing, with a max loss of $6305.64. What frustrates me more than the loss itself is that I was in the red with 3 out of the 4 stocks today and 4 out of 4 yesterday. I feel like I haven’t had a good winning trade since Wednesday, which is a bit of a letdown.

Understanding the Market Context and My Trades

This week, FFIE has been in focus, trading over a billion shares each day. Despite its popularity, I didn’t trade it due to its volatility. Penny stocks have been the main focus this week, and they were again today. DUO made a big move, squeezing up over 200% this morning.

FLJ hit my scanners early, and it started squeezing up. My first trade was solid with an entry at $1.33, adding at $1.58. The stock looked ready for a big move, but it flushed down, and I stopped out twice, losing $3,700. I had increased my position size to 10,000 shares, which was a mistake given that I was already red on the day.

MDJH popped up, and I managed a small profit of $44. However, it might as well have been a loss because the stock had a huge rejection right after I got in.

XIN hit the scanner, and this trade was particularly frustrating due to potential spoofing by hidden sellers. There was a big buyer on the bid, but as soon as I jumped in, the hidden sellers made their move, and I lost $135.

BNRG was my last trade of the day, which put me below my max loss. It squeezed from $3 to $8 in a parabolic move. I scaled in at $5, $5.50, and $7. Just when it looked good, it flushed down to $4, resulting in a $2,400 loss. Since I exceeded my max loss, I couldn’t take any more trades for the day.

Dispersed Volume and Demand

Today’s trading was tough due to the dispersed volume and demand across multiple stocks like FFIE, DUO, AMC, FLJ, and others. The attention was too scattered, which led to choppiness. If all that volume had been focused on one stock, the result would have been vastly different. Each stock has its own level of supply, but with dispersed demand, there wasn’t a massive imbalance that could drive significant moves.

Accepting the Ups and Downs of Trading

Trading comes with its ups and downs, and my P&L reflects this ebb and flow. Losses happen every few weeks, so it’s important to get good at losing and know when to walk away. Today’s losses were within my acceptable range, but they still hurt. None of these were blowout losses; they were just an accumulation of small losses.

Moving Forward

I’ll be back at it on Monday. It’s crucial to trade with a slightly smaller size for now. I’ll keep my max position at 5,000 shares and be more cautious. I need to ensure setups prove themselves before I jump in too aggressively. Despite the red days, I’m still green on the week, the month, and the year. This is a crucial point: Keep your focus on the bigger picture.

Final Thoughts

Day trading is risky, and my results are not typical. Always manage your risk and take it slow. I’ll be back Monday morning, ready to tackle the market again. Remember, trading requires discipline, patience, and the ability to bounce back after tough days. Keep studying, learn from every trade, and prepare yourself for the next hot stock.

Thanks for tuning in and remember to manage your risk. I’ll see you back here on Monday.

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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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