Max Loss Red Day...

Ross Cameron - Warrior Trading

54,745 views • 10 days ago Save 6 min 4 min read

Video Summary

A trader suffered a significant setback on day 43 of a small account challenge, losing over $8,000 and pushing his account balance back down to $91,500. This loss is particularly discouraging as his account was just $600 shy of reaching $100,000. The trade involved stock AEHL, which showed initial promise with a squeeze but ultimately failed to sustain its momentum, leading to a "one-pop" scenario that proved difficult to manage.

The trader reflects on the challenges of trading in colder markets, where established patterns may not yield the same results due to a general softening of market sentiment. He considers stepping aside or reducing his trading size to preserve capital and avoid further losses, emphasizing the importance of adapting to market shifts. Despite the disappointment, he remains committed to the challenge, with profits from these challenges being donated to charity.

Short Highlights

A significant $8,200 loss on AEHL on day 43 of a small account challenge.
The trader's account dropped from nearly $100,000 to $91,500.
The loss occurred during a "colder market" with softened sentiment.
The trader is considering reducing size or stepping aside.
Profits from the challenge are donated to charity.

Key Details

Day 43 Recap: A Major Setback [0:00]

The trader experienced a significant red day, losing over $8,000 in his small account.
This loss brings his account balance down to approximately $91,500, a sharp decline from being just $600 shy of $100,000.
He acknowledges the mental and financial toll of such setbacks but emphasizes resilience in trading.

"max loss i'm currently trading from inside my mobile command center"

Market Conditions and Scanner Performance [1:45]

The trader notes that the market has not been strong recently, leading to fewer trades in the small account.
On day 43, the top gainer scanner showed abysmal results, with stocks like MIMI and GELS being too cheap to trade.
TLYS showed volatility but lacked a trustworthy setup.

"mimi which is a 75 million share volume stock as you could see right here um trading with a 12 million share float but unfortunately the problem that i had with mimi was that um it was just too cheap"

The AEHL Trade Setup [4:17]

An alert for AEHL at 9:17 AM caught the trader's attention, as he had already been watching it.
AEHL had previously shown a squeeze earlier in the morning and then pulled back.
The trader drew a parallel to a successful trade from the previous day, hoping for a similar pop.

"and so as aehl started to break through this pivot of about — let's see what was it seven seven fifty right right back in this area i thought okay you know i think this one — is going to be the one"

Trade Execution and Outcome [6:17]

The trader entered a trade on AEHL, buying on a pullback near the $8.50 level, expecting it to break higher.
The stock stalled, went sideways, and then experienced a sharp decline into the open.
He was stopped out on AEHL at the open, resulting in a significant loss.

"i actually stopped out — right at the open right here into this big red candle"

Navigating Colder Markets and Future Strategy [9:10]

The trader discusses the difficulty of trading in "colder markets" where sentiment has softened.
He explains that his usual strategies may not work as effectively in such conditions.
He considers two main options: sitting on the sidelines to preserve capital or trading with significantly reduced size to stay active without risking too much.
He emphasizes the importance of adjusting to market shifts and managing risk, acknowledging room for improvement.

"and that's the reality sentiment has softened and — typically what i do during these periods is i take money out of my account"

Commitment to the Challenge and Charity [13:00]

Despite the setback, the trader remains committed to the small account challenge.
He reiterates that all profits from these challenges are donated to charity, highlighting the impact of red days on donation amounts.
He promotes a two-week trial to watch his trading, including both successes and failures.

"so right now we've raised 494 000 for charity i've already donated 495 000"