 What's up, everyone? My name is Alex. I'm one of the co-founders of MyInvestingClub.com, and I want to let you guys know about something special we're doing for our viewers on YouTube. So the most common question we get asked is, you know, how do I start day trading? So what me and my mentor about it is we create a free two-hour mentorship course for the brand-new trader. It's going to be available at MyInvestingClub.co. The link is going to be right here. This is a free webinar that reveals our 12 secrets that every single brand-new day trader should know before they start. I also want to let you guys know about something that's very unique to MIC. So if you have any questions about trading or you're curious about trading or you don't know if MIC is the right fit for you, now you can text our head mentor, Tosh, whose number is going to be right here, and he'll answer all the questions that you have in less than 24 hours. Thank you and enjoy the video. What's up, guys? It's Harry Haas here, and today I'm going to be doing a video on setting stops and just recapping my 6K loss earlier this week. As always, I'm not a licensed financial advisor. This isn't financial advice even if it seems like financial advice. But yeah, I thought that I'd do a video on just some general questions I get about setting stops and thought I'd go over my loss kind of recap. So without further ado, let's get into it. So I guess there's different times when you should cut. As a long trader, you want to always be cutting when your stop is breached, especially if there's dump risk. You also, if you're long and you see sort of a stuff move immediately as you enter the trade or you notice that there's a stuff move maybe 10 cents higher than from what you originally planned, that's a good time to maybe take some off or take half off because those stuff moves can have some nasty pullbacks. So you always want to kind of be aware of that stuff as well. And another thing is that you also want to cut. If something that you plan for didn't happen. So if I'm trying to, let's say for instance, buy a breakout and I buy the breakout and the stock just doesn't keep going higher and it kind of stalls a little bit and we're not getting much volume, that'd be a good time to cut or you're trying to buy a view app reclaim and the same sort of thing happens. You kind of get a little bit of a stuff move. It doesn't go higher for whatever reason. That's a time where you should cut or maybe you bought a support and you didn't get a bounce and the stock kept going lower. That sort of time is another time where you would want to look to take some off or to cut or just stop out totally. So there's different types of entries to help reduce your risk. And this does kind of tie along with stops because I've seen a lot of trades where I've seen people go into a trade and they've kind of stopped out right on the next support line down and said, I stopped out at the very bottom, Harry, and then the stock kept going without me. I kind of got some FOMO. I started to chase and then I ended up taking another loss from the original kind of chase. So it's very crucial that you make sure your stop is not on a support line. Like you want to stop out when the trade just isn't working or your idea kind of stops working. And you can also scale in at two supports or maybe take a third of your size at the first support line and save some for lower. And that's where the kind of art form kind of comes in. And another thing that can kind of help you reduce your risk is for sure entering at a support line, not just a random place. And even in the times where I will chase, I want to make sure that it's kind of like an educated chase where I know that I have a high probability of the chase to work out. And when I'm talking with Austin sometimes during the day and we'll have some commentary in main chat, we'll say to each other, we don't want to be chasing too early, but we don't want to be chasing too late. And that's where some of the experience comes in. We want to be chasing if we are chasing at a time where we know that every single short seller is forced to cover. And I mean, that's about it. But I don't really recommend chasing for a newer trader. I'd always recommend buying at a support line or a resistance that has now became support. I would also never recommend chasing strength out of FOMO. And another thing that you can do to kind of reduce your risk is you can enter on a higher low as well. Instead of just trying to get the very bottom or instead of trying to catch a falling knife. Like I know in a lot of the zombies, you have a lot of time where you can actually enter on that higher low and continue with that uptrend as opposed to trying to catch the very bottom of a zombie move and have it go lower and then you're a little bit more emotional. But if you can kind of have that higher low involved and you can get in on something like that on a new support line, that's almost like an added confirmation and you're probably going to be a little bit more comfortable in that type of trade. Basically on this trade, I mean, also the psychology coming in as well is I'm just, you know, just kind of saying to myself, like the scenario, I guess in pre-market was that I had taken probably around 12 pre-market trades in this day. I was green on all of them. So I've taken 12 trades already. It's a Monday. This Twitter status has been posted. And I'm like, man, like I'm pretty good. Like I'm never going to go red again in my life. I'm never going to have a big loss. I'm never going to, you know, and when that type of emotion starts to come in is when it can really get a little bit alarming. So obviously, you know, bought some at six, probably oversized a little bit, definitely oversized for pre-market. So I bought some at six, kind of looking for a pop back to seven, seven fifty, we didn't get it. And then just obviously just got crushed. Just I refused to sell. I was saying to myself, OK, this has to bounce back to six, this has to bounce back to six, fifty. This has to bounce back to seven, you know. And no, just couldn't couldn't get back there, couldn't get back there. And then just kind of got slaughtered. And I remember in this trade, like I was like I was sitting there watching basically the house burned down. I was just losing money on it. And I was just like, you know what? Like I didn't really even have really an emotion on it. I was like, you know, I just I basically just like sat there the whole time and was like, OK, well, it has to bounce back. It has to bounce back. And then that particular situation, you're saying to yourself like, oh, like there must be it must be a trap. They must be trapping short sellers on this one. They must be doing. And in the meantime, there's other stocks scapping up that I'm saying to myself, OK, on this particular day, I would rather be trading these stocks for sure than this one because this one's just weak. This one's, you know, terrible. No bounce. Just should have cut it. But, you know, that's just exactly what happened. It was just really a trade that I just refused to sell. And it was a costly mistake for sure. But honestly, in my own mentality, like the build up to this is just kind of extremely telling because I'm basically saying to myself in this moment, like, like why why do I even, you know, care? Like, you know, who cares? Like, you know, I really was just watching it happen and just watching kind of, as I said, the house burned down and I just refuse to sell. It's like when you're caught in a short squeeze and you just refuse to cover. I just refuse to. I just I could not accept in this moment that I was wrong. And I mean, that's obviously a costly mistake going over it now. Like and I'm not usually a trader like that as well. Like if you look at my previous losses, my previous charts, which I was going over like some of my previous losses, I mean, and just saying like this is never happened. I've never had such a costly mistake where I've said to myself, you know, it has to bounce. It has to do this. It has to come on. It's got to pop. It's got to. And it just, you know, it just didn't. And I finally cut it after the open and said to myself, you know what, like this was dumb. And obviously this one, this is not a normal trade that I would take. This is what we call a revenge trade, folks. Another one where it's just emotional, like I was saying to myself, maybe we can get a pop back to seven. Like obviously that's just unrealistic and not going to happen. But it's just one emotions kind of take over. And I mean, even with this, like I was saying to myself, like I can't be wrong. I can't be wrong. I, you know, there's no way we don't get a pop. I've seen these a million times. They always come down and we get a pop back up. There's no way. And unfortunately, yes, this was a very, very, very costly mistake. And am I, am I embarrassed by not cutting it for sure? I, I would think now after trading for, you know, as long, I mean, I'm only 20, but after trading every single day for the past couple of years, you would think that I'd say, OK, I need to cut this loss quick or OK, I need to to do this or, you know, OK, I need to do that. But no, I just I refuse to accept the loss. And yes, it was costly. And yes, it kind of sucked. And, you know, down six K. But I mean, there's lessons. And the big lesson is just cut quick when you're wrong. And that was something that I really needed. I needed it. Like I needed to cut this one quick. I just could not accept it. And I mean, that's it. Like, I mean, I don't I don't want to spend too much time like on could a shit of what I like in the webinar tonight. A lot of people are like, oh, Harry, but wouldn't the tape tell you? It's like I'm in a mood or I'm in a mode where I'm saying to myself, no, like the tape, the tape, you know, what regardless of what the tape tells me, regardless, I could have a magical indicator that says this stock is going to tank lower to three dollars. I wouldn't have followed it. I would have said, no, there's no way these stocks always bounce. That's the 99 percent margin of error because that was just where I was. I was like, you know what? No, no, no, can't happen. Can't happen. And we're also in a Monday as well. Mondays are also they're not necessarily my worst performing. I don't really have a particular day that's my worst performing. Like I'm usually pretty good on Mondays. And as I, you know, as I said, like in this morning, I made 12 premarket trades and I was I was winning on all of them. And that is the kind of that's the devil where you have made so many wins and you've you've won so many times that you say to yourself, OK, I can't be wrong. I can't be wrong. I mean, I've been right every single time today. I can't be wrong. And that's where you get into trouble. That's where you get into danger. And the minute you are small, small, small wrong, you need to cut it. And so, yeah, definitely an important lesson, definitely a humbling lesson. But, you know, I mean, that's it. That that's it. I don't I don't want to spend too much time on it anymore. You know, I I I was saying to myself, like, should I make a video on it? And I was like, yeah, sure. Like, you know what? I really don't I'm honestly not as embarrassed by something like this as people would think, because, you know, I know that this happens to everyone. It shouldn't have happened to me. But I hope some people can learn from this one. So anyway, I hope you enjoyed it. And I'll see you guys next week for a video. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about M.I.C or any general trading questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos right over here.