How I Lost $10,748 on a Trade

What's going on, guys? Welcome back to another video. So in this video, I'm going to recap my trading for today. So today I took on some trades, and I lost about $10,000 on the trading day. Now, in this video, I want to recap my trades, and I also want to go over a very important thing about trading, which is about how to take losses and how to overcome them when you do have them in trading. Now, what you guys have to understand, when you guys trade, you're going to go through losses. Losses are a part of the game, so they're gonna happen. Now the question is, when did it happen? How do you move on from it? So if you guys take a look right here, right, this is my trading day for today. Lost about $10,000 on a few trades. Now, initially, this was not supposed to be a $10,000 losing day. I was supposed to be up, and I was up on the trading day. At a point, I. I was up over five grand. But at the end of the day, I walked out, negative 10,000 plus. Now, this was purely my fault. I made a lot of mistakes. But when you're trading in the moment, it obviously doesn't feel like a mistake. You feel like you know what you're doing, but when you look at it later on, you're like, oh, man, I could have done this better. I could have done that better. And doing so is a very important part of the process on becoming a better trader. Day in and out. Now, some. Some of the mistakes I made today were a. When I was trading, I over traded. Now how did I over trade? Now the concept of overtrading kicks in like this. When you lose $5,000 on one trade, everything beyond that trade looks very, very small. So I was down over 5,000 at one point. And then every trade I took afterwards, I was losing 300, I was losing 500, I was losing 600. Those 300, 500, 600. Small losing trades felt very small compared to my big loser, which was five grand. So throughout the day, what I kept doing is I kept digging myself a deeper and deeper hole by small pieces over and over again without really realizing that I'm digging myself this deep hole. Until I looked at my P and L and I'm like, wow, I'm down 10 grand because I over traded and kept giving away 500, kept giving away 800, kept giving away 400 over and over again. So when you guys are losing money in a trade, like I mentioned, one thing to be aware of is if you lose five grand, right. Or if you lose 500, you have to separate that from the next upcoming trade. I didn't do that. I made that mistake. So every small trade afterwards kept eating me alive. Right? So that's the first thing. Second thing is, what do you do when you have a big trading loss? So when I have a big trading loss, personally, I like to step away. And then at the end of the night, at the end of the day, I like to go back to my screen and take a look at where I went wrong, what I could have done better, and write it down. So I take notes and I say, okay, let me walk through each and every single trade minute by minute. Why did I buy? Why did I sell? Why didn't I exit? Right. I break that down. Once I break that down, I get a deeper understanding not only of the chart, but also my mindset. So in this trade, as I mentioned, I was up over 7,000 at a certain point. When I was up, I didn't take profits because I believed that the stock was going to continuously keep dumping. Because of that mindset, I didn't stick to my original plan. I didn't take profits when I originally planned to do so. And that ended up hurting me for the day. And then throughout the day, it became a domino effect of me consistently losing money because of one big trading loss. And like I mentioned, this happens. So what I do is, like I was saying before is I go at the end of the night, I go back to my charts, I write everything out, and then I like to meditate just to get my head straight. And then obviously, maybe go to the gym and refresh. The reason it's important to do this is because you want to hit reset. When you hit reset, that reset allows you to recover and allows you to prepare for the next trading day. Now, when you do get on to the next trading day, what I recommend for you to do after a big trading loss is to size down, take smaller positions. Because when you come back from a big losing trade, right, it's very hard to go and trade the same way because psychologically it hits you very, very hard. So one thing I personally like to do, and I personally recommend everyone to do is dive in with smaller size and ease your way back into it. Because what a lot of people do is they've entered the market back again aggressively trying to make that 10 grand. Forget about that loss. Move on. Approach tomorrow as a brand new day. Don't try to make the money back. Don't even focus on the money you lost. Look at what you could have improved and take it from there. So next I'm going to go over the charts. I'm going to show you guys where I went wrong, where my entry was, where my exit was and what I could have done better. And hopefully you guys can take away a few tips from this video. Alright guys, so right now I'm gonna break down my entries and exit points for my Tesla trade. I'm not gonna go over each and every single trade, but these are my entry and exit points. As you guys can see. I'll break them down right now. So this is my entry and exit point. As you guys can see, this is what I traded. I traded the 320 put. So I'm trading options. So if you guys see puts, puts is when I'm making an assumption that the stock price will go down. If you see calls, calls is an assumption that the stock's price is going to go up. Obviously I traded Apple, I traded ba, I traded other stuff and I traded Tesla multiple times. But I just want to show you where the first big mistake happened, what I didn't follow which led on to other mistakes over and over again. Okay, so first and foremost let's start right here, 933. So Tesla opened up right now when I'm taking on some trades, I don't just randomly look at trades or you know, pick up random stocks. I do my pre market analysis, I look at what stocks I want to trade and obviously Tesla was not the only stock on my watch list. I had Tesla, I had Facebook, I had Apple, I had other stocks on my watch list that I'm looking to take a trade with. So Tesla was one of the stocks that I thought was going to fall, was going to dump. I, I thought the shorts were going to step in and they were going to hammer the stock down very, very aggressively. So my job at this point was to obviously watch this stock. This was one of the few stocks that I was watching. Now as you guys can see I'm watching the one minute chart. I'm on stock Tesla one minute chart meaning each candle represents one minute. Now my first trade came in around 933. So you can see this was my first trade. So for my first trade it was at 9:33. Now at 9:33 you guys can see I went in about 30 contracts. Now obviously got different fills but I went in about 30 contracts. You can see first, second, third and towards the end I had 30 contracts. So I bought 30 contracts around $6.70. So towards about $6.70. I had about 30 contracts. Now when you guys are trading options, each contract equates to 100 shares, right? So at this point, this was basically about 30,000 shares. Now as this is progressing, this was my first entry Point at 933. Now my original game plan was a. I went in with too much size. I went in 30 contracts, which I didn't have a strong confirmation yet. I was reading the tape. I saw that the seller that the buyers were getting weak and the sellers kept stepping in when. Which is what initiated me to take on a 30 contract trade. Usually I would go in with 10 contracts unless I get a better confirmation. But reading the tape, I thought gave me enough confirmation to showcase that this is going to continuously dump. So I made my entry right here. And as I keep progressing, you guys can see what happens. Stock breaks. This level breaks to 319. Now what I had around 319 was this is where the stock opened, right? Stock open here went to a low of 319. I recovered. So my first target was 319. So when I saw that it broke 319, that immediately gave me confirmation that this looks strong. So at this point, it looked like a very strong play. So I'm still in this trade. By this time, I have 30 contracts. My contracts are well above $8. They were well above $8. So if you do the math on that, right, I got in at 670. I'm up $1.30, right? That's a pretty good amount that you're up. Okay. So now at this point, my idea was that it's gonna keep dumping. I'm watching the tape. It's giving me a strong confirmation that it's gonna fall. It's gonna fall, it's gonna fall. Now, as we keep going, I noticed that there's buying pressure at 318. So at this point, I'm also a little bit cautious. Like, okay, buying pressure came in at 318. Okay, let's keep watching. If buying pressure still there, I'll probably get out. So as I'm watching this trade, you guys can see next candle looks pretty strong. It's going down. Now at this point, the only confirmation I need that's gonna allow me, allow me to be comfortable or even add more, because I'm thinking about adding more to my position. Is it breaking 318? If it can break 318 on a strong breakdown, I will then look to add more. And if I add more, my profit taking would be about 316. Or 315. So what tends to happen next is boom, a big strong green move up. Now, obviously I'm trading the minute chart. So usually on a minute chart, when I see that, I don't like to get caught up in fake outs. And a lot of times these fake outs happen. So when I was reading the tape, which I obviously messed up on and didn't read it properly, I thought that this was a weak move up. It did not look so strong. So I held my position. You can see it's 938. My exit point was at 941 when I saw it broke this point. Now, the thing with option trading, if anyone has traded options, is when a stock makes a major move up the premiums or your option price reverses drastically. So you end up taking a big hit. So I end up taking a dollar hit on the trade. So at this point I'm down a little over three grand. So I'm down a little over three grand, while at a point I was up over six, five grand at one point. So right now I'm down about three grand. So I take my first initial loss of the day when my game plan was not to take on big size. My game plan was to add a lot here and my game plan was to add 10 contracts. Now if I, if I, you know, followed my game plan, a, I wouldn't have lost a lot. That's number one. And B, if I followed my game plan, it would have kept me in a better trading day. So at this point, I'm already down 3,000. Now if you have traded before, you realize when you're down off the initial start, it already starts a few affecting your trading performance a little bit. So Now I'm down $3,000 on the trade. And now you can see I exit the trade at 585. 949 comes by. Let's go to 949 right here. I'm still watching Tesla. So 949 comes around. And around 949, I'm like, you know what, I still think Tesla is going to dump. I think Tesla's going to dump. I think shorts are going to bring this stock down. They're going to hammer it down. But obviously with Tesla, there's a lot of short interest. So a squeez could be very, very aggressive, right? So I'm still watching the play. It's 948, 949, and I take on the trade. Now this was a terrible entry, a very bad entry. Now in the moment when you're trading, you. You don't really realize a lot of things because when you make one bad mistake and you're kind of stuck on that, and that's what happened with me. I was stuck on one bad trade, and that's completely my fault. I didn't move on from it quick enough. Also, there was. There I was trading, you know, around other people. I was on a voice call and I was calling this play out. And that kind of led my ego to step in and say, oh, man, I'm wrong. Oh, man, it didn't go the way I thought it would. I clearly saw this going down. So that affected me more than it should have because I allowed it to do so. So this was my second entry now, if you notice, my second entry, right, if you take a look here, I sized down. So instead of me going 30 contracts back in or 50 contracts and aggressively trading, which is what most people do, I went back in 10 contracts. I went back in small. I said, you know what? I took a loss. Let me get my momentum back. Let me get one or two good entries. Let me make some money. Obviously I won't make a lot, but that's going to allow me to build momentum. So I got in 10 contracts. Terrible entry. This was a terrible entry, guys. Not a good entry point at all. So I got in this terrible entry. Why was this terrible entry? Because A, it's at a very critical level. B, stock already made a huge move, so it's got to take a break, which I go over in breakdowns and breakouts. It made a huge move down. It's got to take a break. Right? I got in right at the overextended area. Obviously what's going to happen at points like this is probably going to bounce and reverse. And that's exactly what it did. You can see it starts reversing for a short period of time. As it starts reversing 953, I'm like, oh, man. And obviously, like I said, when you guys are trading options, you can see the premiums move down very aggressively. So I took on another loss. Terrible trade. This. This trade I can live with. I live with this trade. Fine. This was a trade I can live with. I should have maybe exited around here, but I could live with that trade. This was a terrible entry point. And this terrible entry point was blinded by my mind because of this loss. And I'm pretty sure you guys that have traded have been through this situation where you take one trade, you lose money, and the next trade of the trade after Starts hitting you hard, right? And that happens to everybody. No matter how good of a trader you are, you will have days where your mind overtakes and starts making you dig yourself a deeper and deeper hole. So terrible entry. A better entry would have been maybe watching this level, waiting for the pullback and then continuation or waiting for it to break that point. That would have gave me a higher confirmation. Now, as you guys can see, I clear at 580. I lose money again. So now I'm, I lost money twice on the same stock right now as this goes down, right, psychologically you're already kind of damaged. You don't know it yet. You think you're good, but psychologically you're already damaged because you're wrong. Two times you lost a good amount of money and now it's kind of like okay, wow, right off the bat, we're in 30 minutes into the market, about 23 minutes to be exact. And I'm down seven, eight grand, right, right off the bat, I'm down a good amount right off the bat. And that messes with you psychologically. Now we go forward again. 955, all terrible trading day. 955 right here. I enter again. And like I said guys, terrible trading day. This is not like right now I'm showing you the bad side of trading. Like people see the profits I post and everything else, but I don't want to focus all on that. I don't want to showcase all the profits. I want to show you where the fuck ups happen. I want to show you where I messed up. I want to show you where traders actually make mistakes, what happens when they have a bad trading day. Because we all have bad trading day. So if I have a 40 or $50,000 profitable day, don't look at that, look at the days I mess up. Because if I can't get past these type of trades, I won't ever be able to have those big trades. So these are the days I care about the most. I don't care about the day I make 40,000, 50,000. I care about the days where I lose 10, I lose 15 and how I bounce back, right? So this is my next entry Point. At 955, you can see 10 again. Now I buy 10 here. Now if you look at the entry points, I'm just burning through money. I constantly keep burning through money. I enter at 670, I exit at 580. I enter at 680, I exit at 580. So I burned money twice. For absolutely no reason, to be honest. Now I add, I buy 10 contracts at 955 as the stock keeps going down, right? Boom. Right here. This is 958, right? And I add a little bit more right there. Now, this entry point, I don't think was so bad. I like the fact that I moved down, it consolidated and it's pushing down again. I like that. But I just think at this point, a better entry point. Going back to it, obviously in the moment, it looks phenomenal. Would have been something around here that would have showed me a continuation sell off. So I have 20 contracts at this point. So I have 20 contracts. And now as the stock moves down, this is the first trade I actually make money on. So you can see10.06 stock breaks this level. Strong volume, strong breakout. At this point, I'm up on my 20 contracts. You can see I got in at about 680 and 695 I added. I have 20 contracts. And as the stock keeps moving, I catch a solid move. Now, my exit on this Right here was 10:06, right? Where is 1006? Right here. 1106, this is where I exited. So. So my entry point on these trades were around right there. Okay, that was one entry point. And my second entry point, 959, was around right here. So I caught this move down. As I caught this move down, I'm up on the trade. You can see I got in at 690. I got in, I got out around 8, right? That was, in my opinion, a good trade. You know, I did well on the trade. I'm still down for the day. I'm still negative, but I'm recovering my losses. But I'm not supposed to be focused on my losses. I'm supposed to be focused on what I'm trading. So just a tip for you guys, when you guys are trading and you guys take on some trades, don't look at your P and l don't say, I'm down 2,000, I need to make 2,000 again. Because at that point, throughout the whole day, you just start chasing and you start trying to make your money back. The goal isn't to make your money back. It's to look at opportunities and take advantage of each and every single one of them. Now, as this stock keeps moving, right, you can see I clear my position right here and I'm out. Now, what happens at 1008, right, is this is 10:08. I personally believe that this, at around 10:08, is going to retrace, get rejected, and continue now, what I messed up on here was I went into large again. I went in 30 contracts. You guys take a look. I have 30 contracts around 8.25. Now, obviously, if this worked out, would have been phenomenal. But the problem here was I should have taken 10 contracts here. I should have taken a small trade, and then I should have added more. On the break of 315, I sized up too much on the initial play. Why? Because I was. I thought the stock was going to break. I thought this was a pullback, and I was trying to capture the big move. And yes, I have caught big moves like that in the past. But. But the proper way to approach that, in my opinion, is not to go in strong, it's to go in small and then add to your position. Now, as this stock keeps going down, you can see at 10:20 what happens. Stop. Starts trading sideways, right? So if you guys take a look right here, stock starts trading sideways as it starts trading sideways, where I messed up a lot. As you can see, my exit point was around 10:20. So I ended up holding way too long. So I got in right here, right around 10:06, around 10:08, and I got out right there. Terrible, terrible, terrible exit. So the only good trade I had was, in my opinion, this was a good trade. Wasn't. Wasn't the worst trade. I caught a good move down, right? My entry point on the. On the second one was terrible. And then my exit here was disgustingly bad. My exit should have been around this point. I would have saved myself from taking on a bigger loss than I did. And I didn't do that because I was stuck on looking at my P and l made your mistake on my end. And I just want you guys to know that these mistakes are going to happen. You guys are going to make mistakes. The whole idea is make mistakes, go back, track your trades like I do. I track all my trades. I know when I got in, when I got out. And I look at it and I'm like, wow, why did I do that? What was the reason? And I journal it. I write it down. I want to understand on a deeper level, I want to understand my mind. I want to understand how my mind organizes overtakes when I'm trading. Because this is a very, very important part of trading. This really, really controls how you trade. So if you don't have control of your mind, guys, you are going to ultimately destroy your trading account. So this was a terrible trading day. And you can see 1020. And then obviously I add more at 1020. So at 1020, what I actually did, I added more. I didn't exit. I actually added more. So if you go to 1020, you can see I added more. I added more because I was like, okay, this. This is trying to reverse. Looks weak. It's probably going to continue and obviously didn't happen. You can see at this point, I'm in 60 contracts. I'm in very, very heavy in this trade. And you can see sideways. Looks good for some time. Looks good. And then, boom, I start exiting around 10:38. So around here, I exit when it breaks that point. So this exit point was obviously good. I was. I didn't. I don't complain about this exit point, but a few things. I shouldn't have held this right. Bad hold right here. Psychological hold, bad trading for me. Overall, bad trading day. And the whole idea is you're gonna have bad training days, guys. The whole idea is to go back to your trades, right? Just a few tips that you guys should always do when you have a bad trading day. Doesn't mean you're a terrible trader. I understand. I'm not a bad trader. I can have a shitty day like this, and I've had a lot of shitty days. When I look at it and I'm like, wow, am I even good at what I do? You know, you're gonna question it too. Now, obviously, when you start out in the beginning, it's gonna be a lot different, but as you guys progress, it's gonna become a lot more different. Now, when you do have bad trading days like this, do not bring yourself down. Right? Back in the days, I used to bring myself down, like, oh, my God, am I even good? Do I even know what I'm doing? Wow, I suck. No, that's your head talking to yourself where it's a negative voice in your head talking to yourself that ultimately wants to bring you down. And. And that voice will allow you to start making a lot of bad trades moving forward, Right? So at this point, when this happens, what you should do is close your computer. Wow, everything's going bad. I'm making bad trades. I'm holding too long. I'm not exiting when I should. I'm sizing up too bad. These are red flags. I need to get off my computer, which is what I should have done. If I did that, I would have maybe been down six or seven grand for the day. But I didn't. I kept trading. So I kept digging myself in bigger and bigger and bigger hole throughout the day. That's number one. Walk away. Number Two is when you walk away, what do you do? I recommend you to meditate. Go meditate. Clear your head. I recommend you to journal. Journal each one of these trades like I have up here. Look at them and write it down. Take a piece of paper and write down each entry and exit. Why did I do that? What was my thought process? Wow. I got greedy. Wow. I didn't want to exit. Write those keynotes down and then track your trades. When you guys start tracking each one of your trades over and over again, you. You'll start realizing that you're making the same mistakes over and over and over again. How do you prevent yourself from making those mistakes? What do you do? Like, one thing I've noticed about myself in the past is on Mondays, a lot of times I would lose money. The reason I would lose money on Mondays is because I would start the trading week very, very strong. All right, Monday, I didn't make any money this week. Let me walk in this week. Very strong. But the only way you're going to recognize that is when you start tracking your trades. Very important to understand that. Thank you so much for watching, guys. If you like this video, please give it a thumbs up and comment below if you have any questions. And I posted my other YouTube channel where I'm going to be posting a lot more trade updates. It's the stock market lab. YouTube, so check that out too. And I'm going to be doing daily trade recaps just for you guys to get a better idea of trading, especially for people that are starting and even for people that I have been trading just to get different insights. So, once again, thank you so much for watching and I'll see you guys on the next video.