 What's up everyone, today is Monday, June 1st, 2020. Today is the first month out of the first day of the month. We're six months into the year and we're still locked down in New Jersey for coronavirus. So a couple of things I wanna talk about before we get started is two things. Number one, we just released our Jumpstart Accelerator course which is a course that takes someone that doesn't know anything about trading to placing their first trade in seven hours, right? So we have a special promotion going on for it right now. You could text Tosh at 213-458-5997. He will talk to you about the promotion. It is ending in a few weeks. Also, you could go to myinvestingclub.com slash Jumpstart to find out all the information. So what I do in these recaps is I keep it the same, right? I have the same process, the same routine. So I like to walk you through my process of the day, talk about how I traded, what I found on the stocks and what ended up happening. So before I talk about the loss, let me talk about my process. So I basically did everything the same in my process, right? I had some friends over last night. It was a really, really nice day. So we were barbecuing, we were drinking, we were hanging out. But because it's Sunday, I had to force myself to leave early. So around seven or eight PM, I just went right to my room. I let everyone party, let everyone do their thing. Well, I went and got some rest, right? Because I know that my process for the day always starts the day before. If I am hungover on Monday morning, if I'm not feeling good, if I didn't get enough sleep, my performance will go down. Remember, trading is a professional sport, not a physical sport, a mental sport. So not getting enough food, not getting enough sleep, being stressed, drinking, this, that, all hurts your performance. So on Sunday, although I had friends over, I did all my drinking at one or two PM. I sobered up by the time I had to go to bed so that I would sleep early and get the sleep that I needed to perform well today. So I did it, woke up early, and the first thing I do is I always look at the low-hanging fruit, right? I look at the stocks that ran the day before, that tanked, and looking at the short bounces on that. So early pre-market, we saw SNOA. Holy fucking shit. We saw SNOA. Dude, what the fuck? That threw me off. Saw SNOA at 1050, right? It was very light volume. It didn't really have much attention, so couldn't really touch it. ADAP was another stock that was running. This stock ran on Friday. It kind of didn't really tank, but it gapped down today, right? Oh my God, now you guys are catching up. There's a little bit of a lag on here. Yeah, dog lost his ass on SNOA. Shit. All right. So ADAP was another low-hanging fruit, right? So ADAP was one that I actually really liked. So the reason why I really liked ADAP was because it ran on Friday, it gapped down today, and I want to short a bounce towards 1050 in the morning. I want short a bounce 1050, 11 and 1150. I did this in my video watch list. I mentioned it in my regular watch list, and lo and behold, if you look at my field, I shorted at 1050 on the dot, and I covered at $10.01, right? Right ahead of the $10 whole dollar mark because there's some support there. So ADAP was actually my biggest winner of the day. It was a low-hanging fruit that bounced, that I shorted the bounce based on my lines. Perfect trading, perfect. If I just traded that, I would have been fine. Here comes the fucking problem. Of course, of course, of course, I found myself getting confident. I made a bunch of money early on ADAP because I stuck to my plan, I stuck to my process, and then you have these hot stocks, DGLY and CETX, popping on day one. DGLY is a body cam company. This is a former piece of shit runner, former pig, but because of all the riots that have been happening, it was pumped up, right? It was pumped up and it went as high as $5 pre-market. From $5, it tanked all the way down to $2. So my mentality, my thought process told me that if the stock bounced towards $2.50 in the morning, that would be a great short. I shorted at $2.50, stock went down to $2.20, I didn't take anything off. See, now that's where the problem starts. I found myself being greedy today, guys. I talk about this all the time, that my biggest problem as a trader, although all the money I have, all the success I have, everything that I have, I'm still a greedy motherfucker. And every day I try to fix this, right? Every day I try to stick to the process that we have to give me the best possibility of not being greedy. I nail and bail, I walk away, I lock it in, I cut myself off, I do all of these things based on my personality, because I know where my flaws are. And being on a very, very big win streak about three months kind of clouded my judgment. So every single day I'm sticking to the process, every single day I'm nail and bailing. I'm nail and bailing on the low hanging fruit, but on the day ones I'm overstaying, something was fucked up in my mind today. So on CETX and DGLY, instead of nail and bailing, when I was green for a profit, I found myself getting greedy. The money was not enough. I was up 1,000, I wanted 2,000. I was up 2,000, I wanted fucking 4,000. And it was enough, and that was my problem. My problem today was straight fucking green. And I paid the price, right? I paid the price. So the low hanging fruit ADAP, it's trade that I planned for, the trade that has the highest probability is the one that I nail and bailed. The day one trades, the ones that I barely planned for, the ones that had the least amount of fucking, no, that had the highest amount of risk are the ones that I overstayed on. So again, this just shows guys that I am human, I am not some trading God, I am not some trading expert, I am a human who's trying to be disciplined every day. And one day, even one day that I lose that discipline today is the losing day that I have, right? And the problem is that every single beginning trader, what they do is they let one losing day ruin a month of work, ruin two months of work, ruin three months of work. I've been on a very, very good win streak. I've made 300 grand in the last three months. Amazing amount of money. If I was stubborn, and if I told myself, you know what, I'm up 300, fuck the stock market, fuck everything, I'm just gonna hold it. My small $4,000 loss would have been maybe a 10, $15,000, $20,000 loss. So a win streak is very dangerous guys. It's very dangerous because the more you think about it, the more you force trades so that you could continue your winning streak. Today, I just not accepted it, you know what guys? I was wrong, I fucked up, I did what was wrong. I am not gonna sit there all day and try to slowly make my money back. I'm not gonna fucking sit there and try to fucking grind it all away and try to make my money back because most of the time, if you push and try to make your money back, you end up losing more. So I have a very detailed process. Walk away at 10.30, do these recaps. I don't wanna deviate guys. Today, I fucked up by being greedy. I know my issue, I know my mistake, I know what I did wrong. So I know how to fix it. So I challenge you guys on the days that you lose money. What is it that you are doing wrong? Are you trading past 10.30? Are you holding stocks that are SSR and easy to borrow? Are you trading random large caps because no small caps are moving? Are you trading options because you have no clue what no large caps, no small caps, nothing is moving? So on losing days, guys, ask yourself what the hell is going on? What are you doing, right? What are you doing today? I did great sticking to the low hanging fruit but I got too greedy on the day one plays. And again, I have no problem showing my losses. I have no problem talking about it. Losses are what makes us human. Losses are how we learn. And I am very grateful that my loss was so small today compared to the amount of winners that I have. I made $28,000 on Friday. Today is Monday and I only lost $4,000. That's where risk management comes in and that's what's gonna take to become a trader long term. What people don't realize is it is not about how many times that you win. It is about that one loss that's gonna wipe you out of the game. So many people come to me and they say, man, I've been green for two months. I've been green for 30 days. I've been green for a week. One trade screwed it up. I lost all my week, all my month, all my year on one trade. And that is because people get stubborn. They cannot accept the loss. They cannot fucking do it. And for me, what helps is hard stops. So we have a bunch of videos on this guys. We talk about it all the time, but hard stops save lives. If you are speeding, if you are in a Ferrari, if you are in a Lambo and the driver's going 150 miles an hour, you should probably put your fucking seatbelt on because God forbid, if something happens, it will save your life. Just like in trading, just like in trading. Put that stop loss in because you do not know how many times it's going to save your life. How many times have you been in a trade? And you said, all right, if it goes to $3, I'm going to stop out. It goes to $3 and you freeze. You are a deer in headlights. Then it goes to 350 and then $4, you blow up. So the key to being a successful trader is about losing the right way. It's about losing more than you win. Keeping your losses manageable. Bao and I say it all the time, knock on wood, knock on wood. We trade very well. There's very rare times that we are red, but on the days that we are red, it is most important to live another day, to fight another day. My max loss on my account is $10,000. Today, when my loss got near 4,000, I said, you know what? I'm not going to let it get to my max loss. I'm going to control it. 4,000 is one day's worth of work. And if I lose one day's worth of work on a losing day, I'm a fucking winner. So do you guys understand that? Do you guys see the mindset that I have to have? Do you guys see what is going on every single day that I'm trading? I slept early. I left my own house party. I went to my bedroom early to give myself the best probability of thinking clear. And I don't know what the hell happened. Maybe it was just an off day, whatever it is. We are human, right? We are human. We are not algos. We're not robots. This shit is going to happen. And normally I would let it bother me. Normally I would sit at the desk until 4 PM to make back the loss. But realistically, the best thing that I could do today is walk away and come back tomorrow. That's it. This all makes sense, guys. This is a very important lesson. You cannot let one losing day ruin your trading career. You cannot let one losing day be the reason you do not exist anymore. Had I been stubborn, had I been greedy, had I been egotistical and said, you know what? Fuck it, I'm going to hold. Fuck it, I'm going to fucking fight this stock. You know what would have happened? The stocks would have gone up, up, up. And my $5,000 loss would have been 20 grand. And I would have said, you know what? Why didn't I just walk away with $5,000? ADAP is running. What is that? So Bao mentions something about the cushion game, which is also very important that I also want to talk about. So what the cushion game is, is that ADAP is at 11. So notice that's an SSR. It is easy to borrow. And it is zombie times. So you have a stock that's easy to borrow, SSR and zombie times. What do you think is going to happen, right? What do you think is going to happen? Anyway, so Bao always talks about the cushion game. The cushion game is this. If you are up on the day, let's say you make $500 on the day, you think to yourself, all right, now because I'm up $500 on the day, I could use this cushion to risk on other trades, right? And for me, what I've realized is when I am up early, when I make a decent amount of money, the best thing to do is walk away because then you use that cushion to gamble with. How many times, even Bao knows, how many times have you had a cushion in the morning and started trading with that cushion only to give that cushion back and more? So guys, this is the trader psychology that we talk about. We talk about technicals, we talk about fundamentals, but most importantly, the thing that people don't get is trader psychology and how important it is. Me and Bao, I've been doing this for six and a half years. Bao's been doing it for almost 20 years. And with these lessons that we've learned over our career, with these lessons that cost us thousands, hundreds of thousands in losses, we have formed a process that is repeatable, the process that me and Bao follow because when I was first starting trading, I didn't know what I had to do. I didn't know that having a max size rule was important. I didn't know that having a max loss rule was important. I didn't know that I had to wire out. I didn't know that I had to stick to zombie rules. I didn't know that I had to focus on certain stocks. I had to learn all of these things and create a process for myself with my trading losses. And that's why MIC exists. We've made all of the losses. We've made all of the mistakes in the book so that you don't have to. And again, I've been doing this for six and a half years and I'm still trying to improve every single day. When you are trading in the market, when you are trading in the market, you are instantaneously thrown in an ocean filled of sharks, filled with people like me, filled with Bao, filled with Fay, filled with James. And if you don't have the proper education, if you don't know what the hell you're doing and you're winging it by following someone's text message alerts or screen share alerts, then someone like me is gonna scoop up and take all of your money. So your best advantage, your best chance for success is to invest in your education to learn how to trade the right way and then take it from there, guys. A lot of people when they join, what they wanna do is they first open up a live account before they even watch any of the videos. I suggest that if you are a new trader or a new member, open up a paper trading account. Paper trade for two, three weeks while you are studying and learning. And then after you are done with that, then you can go to a live account with 100 shares max size. A lot of people are excited. They wanna jump in, let me buy this, let me buy that, let me short this, let me short that. Truth of the matter is, is how do you know what the hell you're supposed to do without learning it, right? If I wanna be a doctor and I wanna perform spine surgery, I'm not gonna fucking wing it. I'm gonna learn how to do it first. I'm going to practice first and then I will try live after I have intense, immense tons of practice. That doesn't make sense. Do you guys have any questions for me? I wanna keep this video short and sweet. What time do I usually locate my shares as early as possible? Earlier I located it, the more availability and the cheaper it is. Don't forget about my forex story. Oh yeah, so I was scrolling through Instagram yesterday or the day before and one of my friends from, it was a friend of a friend, right? It used to be a guy that I used to go play basketball with at a park. Some guy that I went and drank at his house a couple of times, just a friend of a friend, right? Turns out that this friend of a friend who was 22 years old has four sources of income and all from fucking forex signals. So this 22 year old, 20 year old friend of a friend is now selling forex signals and apparently he has five different sources of income because of it. And that just blows my mind, guys. That blows my mind that complete amateurs that don't know what the hell they're doing are selling you these forex signals, right? They're sitting in front of a rented fucking Bugatti and they're saying that they have six sources of income at 20 years old and they're fucking killing it with forex signals. I mean, I have not met a single successful forex trader. All of these signal things are scams and if you are religious about these signals, if you are religious about these text messages or email alerts, voice alerts, you are the one being scammed and they must have convinced you pretty fucking well. Let me go back through some of these questions. What can I say about CETX? So CETX, actually, yeah, let me talk a little bit more in detail about this. So CETX was an abnormal volume stock, right? So what do we say? When stocks have abnormal volume, they have abnormal price action. So CETX, I think it's trading like 80, 90 million shares right now already. I'm not really by the computer, but all I know is that it has rotated its float and it is on day one. So day one float rotation is not something that we mess around with, guys. Do you guys see that the stock that I made the most amount of money on today came through ADAP. And the reason why is because no one was paying attention to it. On these day one hot plays, there's way too many people paying attention to those stocks and way too many amateur shorts getting in there, guys. So we are using the process that we have created over years and years and years of trading to make money. And when we deviate, when I get greedy, when I over trade, when I trade past zombie times, we lose. If you are disciplined like fate, you will make money. Can you recommend a simulator? When you join NYC, we give you a 14-day simulator for free. But if you want, you could use thinkorswim. All right, guys, I am going to wrap it up right now. I'm gonna call it a day. If you have any questions, guys, text Tosh, 213-458-5997. And I will see you guys back in the room to answer some questions. Thanks, guys. See you later.