Trading Monthly Recap: September 2020 $3,700 — Transcript

Full transcript

1. 0:01welcome everyone jack kellogg here
2. 0:03september 2020 is in the books
3. 0:07definitely my worst performing month of
4. 0:09the year so far
5. 0:11with just 3 700 in
6. 0:14net profits
7. 0:19biggest loss of my trading career
8. 0:2218 000 worst week of my trading career
9. 0:27but i'm actually excited to
10. 0:30share with you what happened because i
11. 0:33feel like
12. 0:35my recaps were getting a little
13. 0:37repetitive every single month i would
14. 0:39say the same thing
15. 0:40i'd go over the same kind of charts and
16. 0:43i never really got to
17. 0:44dive into a big loss a big mistake
18. 0:48and i think that'll be very beneficial
19. 0:50for a lot of you guys out there
20. 0:54so basically what happened was
21. 0:58i was streaking decently at the start of
22. 1:01the month i was up about 30 grand
23. 1:04and then the 18th i
24. 1:08went on a little trip to arizona
25. 1:12with sykes and kyle monaco
26. 1:15if you guys know them
27. 1:18and i didn't get back till the 22nd
28. 1:23and then the 23rd i had to move out of
29. 1:26my apartment
30. 1:28and the 25th i was moving into my new
31. 1:30apartment
32. 1:32so it was a very very busy
33. 1:35week there i could not concentrate fully
34. 1:38on trading i would say
35. 1:40about a fourth of my time was used for
36. 1:43trading
37. 1:45and when it's not your
38. 1:48number one focus it's a lot harder to
39. 1:52trade i know sykes talks a lot about
40. 1:56trading and traveling but he is
41. 2:0020 years into the game and
42. 2:04i feel like a lot of you guys are newer
43. 2:06and i'm still new
44. 2:07i'm only on your three here you really
45. 2:10need to focus on trading
46. 2:12and revolve your life around trading or
47. 2:15it's going to be too hard because
48. 2:18there's going to be somebody out there
49. 2:19working harder than you
50. 2:20and frankly taking your money
51. 2:24so to get into this month a little bit
52. 2:27now
53. 2:30my average loss was 962 dollars
54. 2:34which is a big no-no because my average
55. 2:35gain was only 885
56. 2:38and you need your winners to be bigger
57. 2:40than your losers
58. 2:42cutting losses is the number one rule in
59. 2:45trading
60. 2:46and never adding to losers and i broke
61. 2:49both those rules
62. 2:52for my huge losses the 22nd and the 23rd
63. 2:55the 30th was just very unlucky day
64. 2:59where i think i traded well but i just
65. 3:01lost seven trades straight
66. 3:03and just closed down wasn't my day the
67. 3:06action wasn't there
68. 3:08especially these last two weeks it
69. 3:10hasn't been my market
70. 3:12not what i'm familiar with
71. 3:16the week of the 21st to the 25th
72. 3:19a lot of these energy stocks were hot
73. 3:23and for me personally i like good
74. 3:26solid daily charts because those are the
75. 3:28patterns that make sense in my head but
76. 3:32this week it was low flow energy stocks
77. 3:36and i know some traders are really good
78. 3:38at these
79. 3:39but for me they're just not my style
80. 3:43and none of the daily charts were what i
81. 3:46was familiar with
82. 3:47like kovid bitcoin weed weed charts
83. 3:51they're all very solid and the multi-day
84. 3:55framework works very well on them
85. 3:58where a lot of the energy low floats
86. 4:00were just one day moves
87. 4:02daily candles don't make any sense um
88. 4:06just to name off a few checkers spi
89. 4:09s-u-n-w pola
90. 4:12peck cei these charts
91. 4:15are not what i'm strengthened in
92. 4:19and what is my niche
93. 4:26biggest profit was 10.8k on jcpnq
94. 4:31i will start with that trade and then
95. 4:33get into my losers
96. 4:35as the video goes on
97. 4:39but just to show you
98. 4:44this box is very important this is
99. 4:45definitely the lowest short
100. 4:48profit and loss volume i've ever had
101. 4:51in a month just because there wasn't
102. 4:52that many short opportunities i was
103. 4:53going long
104. 4:5468 of the time my long
105. 4:58gross profit and loss is
106. 5:01nearly double or over double
107. 5:06my short profit and loss combined
108. 5:10even though i made more shorting i
109. 5:13sized up on the longs this month because
110. 5:15there was no shorting opportunities
111. 5:17that were super ideal so i did end up
112. 5:21making a really nice trade on jcpnq
113. 5:24and it was my new biggest trade on my
114. 5:25e-trade account my first five-figure
115. 5:27trade
116. 5:28i was super super happy
117. 5:32but this account usually is my low-risk
118. 5:35500
119. 5:36a day consistently kind of scalping
120. 5:39around
121. 5:40not really taking too much risk but
122. 5:42since my cobra
123. 5:43routes weren't working there wasn't a
124. 5:45lot of short plays
125. 5:47i decided to size up on e-trade and
126. 5:50e-trade
127. 5:52isn't a great broker to size up on
128. 5:53because it's not a direct access broker
129. 5:56so you're going to war
130. 6:00with a broker that's laggier you wanted
131. 6:04to be using
132. 6:06the best most efficient things
133. 6:10and e-trade has free commissions
134. 6:14they're a little laggy where as
135. 6:17das trader direct access
136. 6:20a lot less flickering and lag
137. 6:24and just something minimal like that
138. 6:27could be the difference maker in your
139. 6:29decision because you can see something
140. 6:30more clearly
141. 6:32so that's why e-trade's never been big
142. 6:34risk account for me
143. 6:36and i changed my rules and i paid the
144. 6:38price for
145. 6:40for it
146. 6:45so to get into
147. 6:50these losses down here a lot of over one
148. 6:52thousand dollar losses one two three
149. 6:54four
150. 6:55five six seven eight
151. 6:58losses over a thousand and really not
152. 7:01that
153. 7:03many four-figure wins
154. 7:06so as last month it was only three
155. 7:11to get into the charts now this is jcp
156. 7:14jcpnq
157. 7:17this is the intraday chart
158. 7:20this is the daily chart so we're going
159. 7:22to be looking at this day right here
160. 7:32[Music]
161. 7:42so
162. 7:45so some bankruptcy news came out and
163. 7:47this stock popped up
164. 7:50had really nice price action and
165. 7:52breakout through high day closed very
166. 7:54strong rate the high of the day
167. 7:56big gap up from 40 to 55
168. 7:59big morning spike all the way to 80.
169. 8:02and this is where the fomo for me
170. 8:05started when
171. 8:06cobra wouldn't execute my short orders
172. 8:10into this parabolic spike i was trying
173. 8:13to get about 40 000 shares
174. 8:15in these high 79s here once i saw a
175. 8:17level two turn
176. 8:19then it dumped huge and i knew where i
177. 8:22would be covering
178. 8:23so i just decided to play the dips on
179. 8:26this stock
180. 8:28because it had so much volume so it was
181. 8:30easy to
182. 8:31flip in and out for singles that would
183. 8:33add up over and over again
184. 8:34and that's basically what i did bought
185. 8:37my first piece here at 55
186. 8:39sold into 60 and 61.62
187. 8:44and i was just buying the dips and
188. 8:46flipping into the clear
189. 8:49level 2 action with massive volume um
190. 8:54this is what i do best on this is what i
191. 8:56take advantage of
192. 8:57when the otc market is super liquid
193. 9:01there's a lot of volatility the fills
194. 9:04are good
195. 9:05the daily charts make sense
196. 9:09and i basically just bought every dip
197. 9:11all the way down
198. 9:12took a couple break even losses here uh
199. 9:15bought this
200. 9:16first higher low right here
201. 9:20sold into this push and then i basically
202. 9:23just left it alone after the first
203. 9:26um first half of the day that's all i
204. 9:30wanted to play
205. 9:31because then you can notice the volume
206. 9:33just drops off
207. 9:35so execution has got a lot more harder
208. 9:37and there's just not as much range
209. 9:39so then i cut it off for the day and
210. 9:40that was my 10 grand trade
211. 9:4310.8 10.9 uh
212. 9:47grand trade
213. 9:51now to get into
214. 9:55ino which was my only decent short of
215. 9:57the month
216. 9:59this is the intraday chart
217. 10:04started up trending from ten dollars got
218. 10:06really extended
219. 10:07all the way up here and now we have the
220. 10:10over extended gap down pattern right
221. 10:12here
222. 10:15and i got short here covered into the
223. 10:17pullback
224. 10:19got short again and covered but i did
225. 10:22nail it up here with decent size but i
226. 10:25was just out for the dollar
227. 10:26share gain because i was getting chopped
228. 10:29up a little bit
229. 10:30and i think it gets a lot less
230. 10:33predictable when it starts
231. 10:35basing right here i didn't like it but
232. 10:36it did end up making
233. 10:38a new low a day that i completely missed
234. 10:41so
235. 10:41solid overextended gap down setup there
236. 10:44the daily chart very
237. 10:46simple three green days it was this day
238. 10:48right here
239. 10:51and as you can see it's just great
240. 10:53history of
241. 10:54red days here it runs up red day here it
242. 10:58runs out big red day
243. 11:00here it runs up big red day but got ball
244. 11:04all the way back up
245. 11:06but this is when it's a little bit
246. 11:07higher priced and that's when it's less
247. 11:09predictable in my
248. 11:10opinion as well this was a perfect pop
249. 11:13right into resistance great setup
250. 11:17great name to trade so
251. 11:20with that one i locked in about four
252. 11:22grand that's short of the month
253. 11:25none other than that was just a lot of
254. 11:27singles
255. 11:29all right enough of that boring stuff
256. 11:32now let's get into the juicy trades
257. 11:35negative 18 and negative six
258. 11:39so xf
259. 11:45basically this stock gapped up huge on
260. 11:48tesla rumors and as you can see just got
261. 11:52absolutely smoked back down all the way
262. 11:55to
263. 11:5670 cents to get into
264. 12:00the chart
265. 12:06i completely missed this huge morning
266. 12:08spike and this gave me a lot of fomo
267. 12:10because
268. 12:12this is just absolutely gorgeous
269. 12:15straight up parabolic every candle is
270. 12:17green
271. 12:19and then at the top there's three
272. 12:21minutes of stalling
273. 12:23and then nearly a two dollar share drop
274. 12:26in two minutes
275. 12:28and then a great 60 cent bounce in one
276. 12:30minute
277. 12:31so just phenomenal phenomenal
278. 12:33predictable volatility
279. 12:36and this gave me a lot of fomo for
280. 12:38missing
281. 12:40um this was the day that i was traveling
282. 12:44back home from the arizona trip
283. 12:49and i got back home somewhere around
284. 12:51here
285. 12:53from the airport and i came home right
286. 12:56away
287. 12:57and i was like all right i'm just gonna
288. 12:58buy this thing for the gap up tomorrow
289. 12:59because
290. 13:00and it based about view up all day
291. 13:04said a lot of support started breaking
292. 13:05these highs into the afternoon
293. 13:07just an hour left so i started buying
294. 13:09this dip down here
295. 13:12and i should have just cut my position
296. 13:13want to crack 350 support
297. 13:15but it was such a small position i
298. 13:17didn't really
299. 13:19care too much i was just gonna say okay
300. 13:21let's just see what happens which is the
301. 13:22wrong mindset i shouldn't have even been
302. 13:25in this when it starts going against me
303. 13:28and i just should have cut my small
304. 13:29position but i didn't
305. 13:30came back down and then it has a little
306. 13:33green candle
307. 13:34here i thought it'd be a good dip buy to
308. 13:36get in and then kind of just risk the
309. 13:38low
310. 13:38of this candle right here and play it
311. 13:41for the gap
312. 13:42but it didn't and it kept selling off
313. 13:45and then unfortunately i added more here
314. 13:47at three just kind of a last ditch
315. 13:49effort
316. 13:50to add more here and then sell into the
317. 13:54bounce back to resistance for break even
318. 13:56at this point i just haven't averaged
319. 13:57down so much and my average was in the
320. 13:59320s 330s
321. 14:02and then unfortunately it did not bounce
322. 14:06at all
323. 14:06and just broke through three which had
324. 14:08to be my
325. 14:09all-time stop out first time getting
326. 14:12below v wap
327. 14:14post 3 p.m uh i don't want to gamble
328. 14:17that overnight super week
329. 14:20and basically i sold dead bottom at 291
330. 14:25came down next day gap down huge on bad
331. 14:29tesla reaction and battery day
332. 14:33so maybe a blessing in disguise i
333. 14:36stopped out here and it didn't
334. 14:38you know keep ramping close at 320 but i
335. 14:41most likely would have been out once
336. 14:42this
337. 14:44broke support here really don't want to
338. 14:46overnight this when it pulls all the way
339. 14:48to three bucks
340. 14:48but i thought there would at least be a
341. 14:50balance to get out for breakeven i broke
342. 14:51my rules by not cutting my small
343. 14:53position here
344. 14:54should only be adding to winners not to
345. 14:56losers
346. 14:58got took tens of the slippage on the
347. 15:00cell lost six grand
348. 15:01as i just got home and it was like 30
349. 15:04minutes down 6k into the close
350. 15:07super dumb felt like i was just throwing
351. 15:09away money at this point
352. 15:11and then from there
353. 15:14it got worse the next day
354. 15:18the next day we have sunw
355. 15:21and this was my biggest loss ever
356. 15:24first things that i'm going to note here
357. 15:27is
358. 15:28the daily chart never has a good history
359. 15:31of
360. 15:32anything a lot of spikes and fails gross
361. 15:36candles
362. 15:38so let's get into the intraday chart
363. 15:41here
364. 15:49sbi was the main runner of the day the
365. 15:51stock spiked from about two to forty
366. 15:53five
367. 15:55and it was in the energy sector so
368. 15:57people started buying
369. 15:59the next best energy stock that was up
370. 16:01the highest percent and it was sun w
371. 16:04and i actually got long
372. 16:07on the one dollar break six thousand
373. 16:10shares
374. 16:12and i sold it in the 120s somewhere up
375. 16:14here i thought it was a decent trade for
376. 16:1620
377. 16:18and unfortunately it
378. 16:22held and held again and then just went
379. 16:24full blown supernova
380. 16:26and i had got caught
381. 16:29shorting a couple of these spikes in
382. 16:31here because
383. 16:33sbi was halted to the downside
384. 16:36and i knew it was going to gap down huge
385. 16:38want to open because it was indicating a
386. 16:40much
387. 16:41lower open price so
388. 16:44instead of listening to the tape
389. 16:47i was just thinking oh it's just going
390. 16:49to crash with sbi spi
391. 16:52so um
392. 16:54[Music]
393. 16:55then how to cut that for a loss got
394. 16:58reshort somewhere i think in this candle
395. 17:00here
396. 17:01and then it just squeezed up
397. 17:05was down a little bit but i just had
398. 17:06small size this wasn't really
399. 17:08like a big tray i think i just had a few
400. 17:10thousand shares from 280 or 290
401. 17:13went up to 450 and then it crashed back
402. 17:16down and
403. 17:17the mistake that i made was
404. 17:21i had such small size on the short and i
405. 17:24didn't nail the top so it was already a
406. 17:26little tilted
407. 17:27and when it opened i just covered it and
408. 17:29i wanted to focus on
409. 17:31buying it for the bounce because if you
410. 17:33guys are familiar with
411. 17:35tim sykes seven step framework you'll
412. 17:37know
413. 17:38it has
414. 17:42the one where it's sneaking around the
415. 17:44two
416. 17:46it starts to speed up the three the
417. 17:47supernova right
418. 17:49the the four which is the dump
419. 17:53and then the five is usually the dip buy
420. 17:55where you buy it and it bounces
421. 17:57maybe to this 260 270 level and then
422. 18:00rolls over from there
423. 18:03so i had made the big trade on jcpnq
424. 18:07buying the dip and
425. 18:11i knew that this was a supernova and it
426. 18:13should bounce too
427. 18:15but unfortunately i wasn't taking into
428. 18:17consideration that
429. 18:19sun w was not a multi-day runner
430. 18:23sun w was not the correct time of day
431. 18:26sun w had no news
432. 18:29and i started buying the dip
433. 18:32here in the low twos
434. 18:36and then i added a little bit more on
435. 18:38this drop and i had about two dollar
436. 18:39average with 20
437. 18:40000 shares risking this 190 ish
438. 18:45area risk 10 cents to try to make 50
439. 18:48something like that and
440. 18:51unfortunately it didn't really pop too
441. 18:53much i sold a little bit like a couple
442. 18:55thousand shares and then just slammed
443. 18:56back down
444. 18:57and i was like okay i'm just gonna hold
445. 19:01because
446. 19:03i was just tilted and i wasn't i should
447. 19:06have been cutting when
448. 19:07it's looking weak and i usually always
449. 19:10cut
450. 19:10when stocks aren't doing what i want but
451. 19:13i was in this
452. 19:14let's just hold and see what happens
453. 19:16that's just it's fine
454. 19:18um it'll bounce a little bit to get out
455. 19:20for break even which it did bounce a
456. 19:21little bit to get out for break even but
457. 19:23then i should have recognized that the
458. 19:25tape was heavy again but i didn't
459. 19:27recognize i didn't sell i sold a couple
460. 19:29thousand more shares
461. 19:31and then just slammed right through and
462. 19:34i didn't want to
463. 19:38sell my shares and then it came down and
464. 19:41i was down
465. 19:42a decent amount and unfortunately i
466. 19:44added a lot
467. 19:46of shares here and i was going to sell
468. 19:48on the v retest and fail
469. 19:50or a perk through it should you know
470. 19:52bounce a little bit because
471. 19:54it was at this key support that i
472. 19:55thought was here
473. 19:57which there's no key support because it
474. 20:00did not bounce
475. 20:01and then i just market ordered sold all
476. 20:04my shares
477. 20:04dead bottom 125
478. 20:08for 18k loss couldn't take any more then
479. 20:11it gives me the bounce to get out for
480. 20:14closer to break even the v op fail which
481. 20:16was what i was looking for
482. 20:17and then it rinses back down to a
483. 20:22buck whatever next day
484. 20:25next day i was tilted i was tired from
485. 20:27moving this was the day that i was
486. 20:29clearing out my apartment
487. 20:31i slept in didn't even want to think
488. 20:32about the market
489. 20:34woke up saw it at like eight bucks and
490. 20:40what was crazy was if i back held either
491. 20:42one of these like it would have either
492. 20:44been a huge loss or a huge win
493. 20:46um it would have been like a 300 grand
494. 20:49profit
495. 20:50for me on sun w if i sold up here in the
496. 20:52high sevens or the eights
497. 20:55and for
498. 20:59the other nvn xf if i back held that
499. 21:01overnight i would have lost 30k
500. 21:04so just terrible to even think about
501. 21:07these huge swings
502. 21:10and that's not really what trading is
503. 21:13about it's not about
504. 21:14these huge up and down swings you want
505. 21:16to be focusing on consistency
506. 21:19and i'm very proud of myself for not
507. 21:21holding any of these overnight and just
508. 21:22back holding because that's not
509. 21:24not the right thing to do even though
510. 21:25this would have been a ridiculous win
511. 21:30it would not have been the right lesson
512. 21:34i'm glad that i took these losses
513. 21:36because now
514. 21:37i got my head screwed on straight again
515. 21:39and
516. 21:40i'm in my new apartment and i'm starting
517. 21:43to trade
518. 21:44better even though this last week was
519. 21:47really slow
520. 21:49didn't see too much volatility anywhere
521. 21:53and i even
522. 21:57had these small green days where i just
523. 21:59couldn't get anything going we're just
524. 22:00like a couple hundred dollars a day
525. 22:02and then the unfortunate day so i'm not
526. 22:05mad with
527. 22:06this week's trading getting back into
528. 22:08the groove i will recover
529. 22:10this 25 grand it's the first
530. 22:13pretty significant pull off my highs
531. 22:15that i've had i just want to
532. 22:17recover uh the proper way which is just
533. 22:20going to be starting small until i get
534. 22:21my
535. 22:22momentum going back but i think this was
536. 22:26a very
537. 22:26educational lesson on losses and mindset
538. 22:31and another thing to know is i even knew
539. 22:35of roland who took a decent-sized loss
540. 22:39shorting
541. 22:40rbz the day he was moving
542. 22:43and matt monaco
543. 22:47mono trader he lost
544. 22:50decently on shmp when he was moving
545. 22:54uh in the summer so
546. 22:58i knew going into this that trading and
547. 23:01when you're moving and not focused on
548. 23:02trading is a bad idea
549. 23:05and i saw other traders tweeted back to
550. 23:07me when i made a tweet about
551. 23:10how i lost because i wasn't focused and
552. 23:14they said their losses came from that as
553. 23:16well
554. 23:17so it's all just about maintaining that
555. 23:22mental aspect of trading and
556. 23:25that's where the human part comes in
557. 23:29and you can be better than a system art
558. 23:31can be better
559. 23:32but you have to always make sure that
560. 23:35your head's in the right
561. 23:36space
562. 23:39because trading's really not that hard
563. 23:41once you become profitable it's going to
564. 23:42be the same thing over and over again
565. 23:45but once you start putting
566. 23:49other factors into your trading whatever
567. 23:52it's going to be
568. 23:53say maybe you have a kid maybe you're
569. 23:55not getting a lot of sleep
570. 23:58you're moving you're traveling whatever
571. 24:00it is
572. 24:01it's going to be you're fighting with
573. 24:03your girlfriend you're fighting with
574. 24:04your parents
575. 24:06um somebody passed away in your family
576. 24:10anything that is gonna significantly
577. 24:13take your mind off trading it's not wise
578. 24:17to be trading during the