I've been getting many comments
requesting more of my live trading
commentaries I know I know it's been a
while since my last live trading video
sometimes this makes me questions maybe
no one wants to see me potent anymore
they just want to see me change
just kidding who cares about pole
dancing it's all about trading here
alright Traders my live trading review
is back today I decided to use my live
trading footage losing over five
thousand dollars to teach a very very
important skill that all Traders must
have how to follow risk management and
respect your stop loss remember it
really doesn't matter how much money you
make in trading if you don't know how to
keep the money every profitable Trader
knows that planning stop loss is just as
important if not more than planning for
your profit targets especially in a
better market so in this video you're
going to learn how to plan your risk
management levels and risk Awards as
part of your trading strategies how to
execute stop loss and how to protect
your account Capital don't forget to
take notes ask me questions in the
comment section and smash the like
button for more educational videos like
this let's get started so on the screen
right now is a really good example of a
gap down long strategy I traded on bbby
when this meme stock made another crazy
comeback and my thesis on this
particular setup is to Long the bounce
after this huge sell-off and after they
open right I don't usually recommend
trading pre-market so in this scenario
you can see that after this huge gap
down to 1050 and consolidating around 11
pre-market the upside is potentially a
bounce towards the recent resistance of
thirteen dollars and potentially 14 15
upside while your downside is limited if
you are using the pre-market low support
at 10 40s so basically the reason I like
this for a long is that there's a lot
more upside and limited downside the
downside is really defined so on the
screen right here we have the daily toy
on the left hand side and the five
minute intraday chart the part
highlighted in yellow is pre-market
trading session I personally don't like
to trade pre-market but I like to use a
pre-market price level as key levels
especially when trading particular
strategies like this so you can see
pre-market lows we have around 10 40
1050s right here and the pre-market
highs we have around 12 so in this
particular scenario the true
confirmation for this loan strategy
would be if the stock is able to break
above the pre-market highs consolidate
above it and then rip higher that's the
bounce move we ultimately want now if
the stock just trades in between 12 and
1050s then that just means it's pretty
balanced and the stock didn't have any
strength to push above it however if it
breaks down that 1050 then that's what
we call line send in which your long
thesis is no longer valid so let's talk
about entries here we have the daily
chart on the left side and intraday five
minutes on the right hand side we have
the pre-market session highlighted in
yellow and the white part is the regular
trading hours so looking at this I was
planning for a v-wap area around 1150s a
starter entry on the long side so
usually I like to start aim due to my
partial positions and only add to my
full-size position if we confirm over
the key level so my planned entry is 11
30 11 40s this view up dip area and
adding over 12 now if you've been
watching my channel you know that
planning for your risk is just as
important as planning for your entries
and a profit potential so in this case
when planning for my stop-loss area I
want to use this 11 area because below
view app right us man risk and
ultimately 1050 is that pre-market low
support is the Line in the Sand so if
the stock breaks down eleven dollars I'm
gonna be really cautious and think about
stopping out and if it remains heavy and
breaking down under 10.50 then I know
that my long thesis is no longer valid
so now that we know about the 50 cents
and one dollar downside potential let's
talk about the upside move
if the stock is able to break above 12
then it has a potential rip towards at
14 and 15 and why is that because just
looking for a daily chart you can see
that once over this twelve dollars
you're upside to this level right here
you can see these two little Wicks on
the Candlestick charts on The Daily
those are potential resistance up here
at 1330s but really the ultimate goal is
about 14 and 15 from where this
technically speaking the stock has sold
off the Gap you can see this empty space
between the 16 down to twelve dollars
that's our price Target so ultimately
we're looking for 14 but ideally closer
to 16 for the upside so in this
particular trading scenario I was
looking for a minimum one to two risky
word and ideally and potentially with
adding more size over the key level one
to three or even one to four that
basically means if I'm risking five
thousand dollar of my capital and
potentially making ten thousand or
fifteen thousand dollars this will be
equivalent as somebody trading a smaller
account risking a hundred dollars to
make 200 or three hundred and four
hundred dollars next we're gonna go into
the actual trade recording of me losing
over five thousand dollars according to
my risk management plan if you're
enjoying the video Lesson so far and
appreciate the transparency then make
sure to smash the like button down below
especially if you want to see more video
lessons like this in the future so you
can see Market opened at 9 30 and long 2
000 shares at
11.72 and the stock at the open it's
already dropping towards a view up area
you can see that I have an order sitting
at 10 50. seeing if we're gonna you know
Rush down there and I can pick it up for
some cheap price
it's not holding around that view up
area 1140s but I'm waiting to see if
we're gonna at least get 11 remember
that 11 was my ideal entry
eleven dollars eleven fifty so you can
see it's holding up right now
you can see me trying to add a little
bit didn't get filled to full size and
the stock is already bouncing testing
that twelve dollars key level that we
talked about remember unless the stock
gets over 12 then it's not confirmed for
long so I'm up a little bit but
ultimately I'm looking to add over
twelve dollars now twelve dollars now
you can see I just added that line over
here twelve dollars the stock is on SSR
because one of the stock gaps down and
Below ten percent uh on the day negative
10 on the day SSR is triggered
so can you see me trying to add a little
bit and now the stock is testing that 12
area remember what we said earlier
unless the stock is able to reclaim over
12 at Shoe key level I don't want to be
adding to full size
I'm fine starting in with two thousand
three thousand five thousand shares but
I'm not getting to full size unless we
get over twelve dollars then that's
worth my risk right under 12 so you can
see I added to four thousand shares 4
300 shares with an average of 1180s but
again we're still testing at twelve
dollars we haven't gotten over that yet
and up a little bit but
um this is not what I'm looking for I'm
looking for the huge breakout over 12
and for the stock to get a huge bounce
you can see we're rejecting that twelve
dollars
I'm trying to give it some time
the volume was extremely high that day
and the open we traded
um around 5 million shares just within
the first five minute candle you can see
the stock is rejecting hard off of that
twelve dollars right now
am down about a little bit more than one
one grand
but again my ultimately I'm okay risking
below view app if it doesn't work out
you can see this now more zoom in now
you can see the stock is testing just
around v-wap on the five minute chart 11
30 11 20 is marked and it's remaining
very heavy
you can see that I'm thinking about
adding more around that 11 Mark remember
1050s is being my ultimate risk but in
hindsight looking at this I shouldn't
have added so soon oh actually I didn't
add I actually stopped up so if I rewind
a little bit to watch How I stop out
when I stop out and when I know I'm
wrong especially when I'm trimming these
position sizes I just click and then
sell I don't wait I don't back hold if
I'm wrong I want to get out right away
so I stopped out 2 000 shares at 11 90s
sorry 1090s so that took about eighteen
hundred dollars lost
you can see we're still remaining heavy
we haven't Consolidated over that twelve
dollars Mark yet
so stock is remaining heavy and uh you
know things are not looking too good
right now
and I decided that was time to build you
can see I just click on the bid 1062
because the stock was extremely heavy
had to get on the bid
um well I'm trying to get out I just
clicked the bit side on the left side of
your L2 and then click cell so I stopped
out of this trade on the losing side for
four thousand six hundred dollars last
um trading around how many shares I had
around 4 300 shares so about a dollar
loss per share obviously it sucks to
lose but honestly this was my starting
position and I was ready to risk at
least five thousand dollars to start
with but if I'm wrong I know I'm gonna
make two or three times more you can see
after fast forwarding now the stock is
trying to bounce from 1060s off the lows
to 11 30s so a lot of people will be
thinking oh my God I should have helped
just held my position I would have lost
less
um but you really don't know that right
A lot of times when I'm wrong I just
prefer to get out instead of holding on
to a loser because what if the stock
just cracked through that 1050 and go
down to 10 a lot of times if I'm wrong I
just want to get out and reassess the
situation
so but over here I did make the mistake
of going back a little bit too early but
I'm glad I only went back with a
thousand shares at around 11 50s on the
long side again thinking that okay we
matched our consolidating overview app
if we get over 12 that's when I will add
and I'm glad I didn't add because uh
spoilers uh this didn't end up working
out the second time but this time around
knowing that I had already lost my
initial starter position I'm a lot more
careful with how much position size I
use on this second attempt again the
stock is bouncing to 1160 1180s but
that's not what I'm looking for the plan
is ultimately over 12 thing above for
the big bounce moves remember earlier we
talked about the stop loss area is
around 11 under that view app over here
and ultimately under 1050s if the stock
actually breaks down then the thesis on
the long side is no longer valid
but at the same time the long
confirmation it's not really confirmed
and not really true until over that
twelve dollars mark
so that's the reason I'm staying small
on the second attempt with only a
thousand shares despite this huge
overnight gap down the stock is still
really weak and there's a lot of sellers
so you can see on the five minute we're
losing that eleven dollars bid
and it's not good right remember eleven
dollars Mark is our stop-loss area so
now seeing that 11 is not holding I'm
gonna get ready to stop out of my rename
manger 1000 shares at 11.50 so I'm
risking 50 cents on this trade you can
see stock remaining heavy but thankfully
I only use a thousand shares on this
second starter
holding for a little bit trying to do a
dead cap bounce for stock to be breaking
down view up twice already after only
not even half an hour of the open that
tells me the stock is extremely weak
it's not ready for the long side
and then fast forward five minutes later
it's still struggling around that eleven
dollars Mark trying to reclaim once
again over 11 20s
um but it's still remaining very very
heavy there's definitely imbalance
um and reviewing this clip in hindsight
now which I still do a lot reviewing my
own trading recordings I realized I
should have stopped out a lot earlier
I'm at remainder of 1000 shares I think
in hindsight if I had stopped out
earlier I probably would have flipped
short but no I was still holding on to
that final 1000 shares well it's not a
lot I think it's about the missed
opportunity cost that's a little bit
painful to watch because it could have
been a great short actually under that
11 Mark with a downside to 10.50 and
potentially below as well and remember
the stock is remaining below V web so
it's really weak but relatively to the
volume and the price you can see we're
rejecting that new up area once again
around my 1120s okay you can see that I
placed my order for a thousand shares to
cut the loss at 11.02 so it's basically
trying to sell it for 50 cents loss
let's see if I get filled because the
stock is turning really heavy you can
see what rejecting view up once again
and I'm out so I stopped out at actually
10.95 so I lost about
57 cents per share 60 cents so that adds
to another like 500 600 loss um together
tallied up to five thousand two hundred
dollars loss on this trade so back on
the trading view chart I'm glad I
stopped out even though I stopped out
here a little bit too low down here at
um 10.95 the stock eventually sold off
even more down to 1050s but kind of
bounced around for a while that 1050
line Ascent never truly broke down until
much later on near the end of the day
you can see after 10 50 it bounced off
to view up again and chopped around you
have like a short-term rally during the
middle of the day from 11 30 to 12 30s
when the stock went to test at 12 again
that twelve dollars key level but I'm
lucky that I wasn't around because I
would have gotten chopped up once again
it's that 12 broke out to 12.50 that's
great but there wasn't enough volume
normal momentum to keep it afloat and to
stay around the key level so you can see
the stock sold out from 12s and back to
lows into the end of the day if I have
held on to it or if I revisit it again
and again after the first two attempts I
probably would have lost even more money
than just five thousand dollars so it's
five thousand dollars a small loss or a
big loss for me to be honest it's a
relatively small percentage of my
account size and thankfully the position
size I was using as this trade the first
and the second one was just a starter
size I was planning to scale in more
essentially adding even more position
size if we had reclaimed over that
twelve dollars key level but even for
myself upon reviewing this footage
earlier I also realized that I should
have stopped out of my remainder 1000
shares started way sooner I think I
definitely held on a little bit too long
after seeing that the second attempt of
12 dollars and v-wop kept on failing and
the stock was having trouble holding
that eleven dollars Mark so that's
something I can improve on next time
doesn't matter if the starter is a
thousand shares five thousand shares or
100 shares I think you know if you
recognize that your thesis is not valid
and the stock is just really weak I
think I should have stopped out way
earlier but it really doesn't matter
what amounts I lost or earned what
matters most is that the trader has the
ability to learn from experience and
become a more disciplined and more
consistent Trader over time so next time
around I'll be a lot more patient after
the open and I'll stop out of my starter
positions way sooner most importantly to
me I want to be able to use my losses to
offer valuable lessons to my fellow
subscribers you guys and girls here
watching this video whether it's a win
or a loss if you've been watching my
video since 20 20 you know I'm never
afraid of showing my losses as they are
really part of the reality in day
trading as someone who teaches day
trading on YouTube I think losing trades
generally provides more valuable lessons
for my viewers and for myself as well if
you enjoyed this video Lesson and how I
planned out my risk award and following
my stop loss then make sure to check out
the next video on risk management and
price action trading and if you need a
more structured program on day trading
strategies especially risk management
then you should check out the humble
Trader Community down below thank you
guys so much for watching as always I'm
the humble Trader and I'll see you guys
next time
[Music]
thank you