BIGGEST RED DAY...

Day 36 Begins with Big Red [00:00]

• The trader begins day 36 of a $2,000 small account challenge, describing it as the biggest red day of the challenge.
• Two out of three stocks traded resulted in significant losses, with the trader feeling "completely smoked."

  "Today is day 36 of my small account challenge of growing a $2,000 account using Charles Schwab as my broker and it is the biggest red day so far during this challenge."

Market Scanners Yield Little [00:33]

• The morning scan revealed few promising trading opportunities, with leading gainers like RDAC and MRNA showing unusual spikes without clear news.
• RDAC was up 173% on no news, but its downward trend and high price made it unappealing.

  "So this morning I pull up the scanners and unfortunately we really didn't have much to work with."

Difficult Stocks: SKK and YJ [02:21]

• SKK experienced significant volatility with multiple halts after news, making it difficult to trade.
• YJ, a stock with a history of dramatic price swings, showed potential but also a tendency to round-trip its gains.

  "Stocks with news do not work."

Stubbornness Leads to YJ Loss [03:45]

• Despite a bias against YJ due to its history, the trader missed an initial 200% move.
• After entering a trade and making a small profit, the trader re-entered, driven by stubbornness and frustration, leading to a significant loss of approximately $9,000.

  "I held a bias on the stock. And this is This can be a problem."

Emotional Hijack and Further Losses [06:57]

• Frustrated by the YJ loss, the trader took on VRX and ARDAC, incurring further losses.
• The day's losses mounted, reaching $5,000, then $8,000 after trading VRX and ARDAC.

  "I don't want to finish the day down $5,000."

The Biggest Loss: CISS [08:22]

• The trader took a trade on CISS, expecting a similar move to SKK, but it resulted in a false breakout and a flush.
• This trade led to the single biggest loss of the challenge: $10,000.

  "And I lost $10,000, the single biggest losing trade I have had during this challenge."

Totaling the Day's Damage [09:24]

• The day's total loss reached $18,000, a figure the trader deemed avoidable.
• The losses were a result of choices made, including holding onto YJ, trading VRX and ARDAC, and increasing share size on CISS.

  "I didn't need to lose $18,000 today."

The Cycle of Emotional Hijacking [09:54]

• The trader explains that while choices were made, emotions like anger and frustration led to an "emotional hijack," where logical thinking was overridden.
• This emotional state can lead to impulsive actions, similar to punching a wall or throwing objects.

  "at a certain point, I became hijacked by my emotions."

Trader Rehab and Guardrails [12:11]

• The trader discusses past approaches to emotional hijacking, including "trader rehab" with guardrails to limit share size and losses.
• This is likened to putting training wheels back on a bike after a fall to regain balance.

  "Trader rehab is when I put the guardrails back on my trading to help kind of restrain and put some boundaries around how many shares I'll buy."

Market Volatility vs. Personal Control [15:14]

• The trader acknowledges market volatility and difficult trading conditions but emphasizes that repeated emotional hijackings are unsustainable.
• Despite recovering losses quickly in the past, the risk of consecutive big red days is a concern.

  "But on the other hand, I think that we also have to look at this as presenting the risk that I keep taking big size on day two, and one of these times I'm going to have two big red days in a row."

FOMO and Frustration Fuel Losses [16:50]

• The current struggle involves FOMO (fear of missing out), leading to frustration when missing trades, and then overcompensating.
• On this particular day, the trader sat out initially, felt FOMO, and then impulsively entered a trade that resulted in a large loss.

  "I am feeling FOMO. I have a fear of missing out. And then when I when I do miss out, which we all miss out on moves, I feel frustrated, and then I overcompensate for the move."

The Unraveling of the Day [17:32]

• After the initial large loss, the situation unraveled quickly, with the final trade being a $10,000 loss.
• The P&L swung from a $3,000 profit to a $5,000 loss, then a larger loss, and finally the $10,000 loss, escalating the day from bad to worse.

  "The last trade was a $10,000 loss. The last loss was the biggest one."

Self-Criticism and the Path Forward [19:02]

• The trader expresses frustration and self-criticism, calling the day "pathetic" and questioning their ability to follow their own strategy.
• This self-talk, while common, can exacerbate emotional activation and lead to further poor decisions.

  "You've got a great strategy. You're just too dumb to follow it."

Broader Market Context and Personal Performance [21:58]

• The trader acknowledges that even experienced traders and billionaires face embarrassing losses, citing Bill Ackman's Netflix trade.
• While the overall account is still growing, the path has been bumpy, with significant swings between green and red days.

  "I continue to ride the roller roller coaster, and I have big green days, and I'm elated and thrilled when I have those days, and"

The Scrappy Nature of Trading Now [27:00]

• The current market environment is described as "scrappy" and a "barely by the skin of your teeth survival feeling."
• While volatility presents opportunities, the lack of news catalysts makes it difficult to predict stock movements and potential pullbacks.

  "It's really just um it's scrappy, and it's how it barely by the skin of your teeth survival feeling, and it it doesn't feel great."

Day 36 Recap and Future Outlook [27:43]

• The trader concludes that day 36 was not a good day and expresses disappointment but resolves to return for day 37.
• A reminder is given that results are not typical, and new traders should practice in a simulator before using real money.

  "Today's not a good day. I'm disappointed. It's day 36. But, I'll be back at it tomorrow for day 37."