 when you have so many setups and you're trading all day and then at the end of the day you don't even know what you did you know just so many setups you can't even journal you don't know what to what to eliminate there's just too much too much going on there's often that was 2021 for me I was like one of the benefits of working at a firm is having a risk manager so my question is how do you determine what type of risk to give someone and how do you determine when to cut them off yeah that's a man that's that you know it's a very hard question because as much as like I try to standardize it for everybody it's kind of like a case by case basis like somebody joins brand new like they're they're trading pretty small they just have like a hundred few hundred dollar max risk on the day and like the job is to just get green and then once the pnl is going upwards like I I try to push it as far as possible without affecting the trade management so if the person is risking $50 in a trade you know next week let's go to 75 next week let's go to 200 and he's like oh 200 I don't know okay let's go to like 150 try to push it up like 10 20 percent you know each like week or so every couple of weeks if I'm pushing him from like 2k per trade to 4k per trade he's gonna get lost you know he's gonna be like scared popping out too soon so it's like okay you don't want to do 4k let's go to like 3k let's go to maybe 2500 you know something like that so I try to like push as far as possible without you know kind of scaring the guy without like affecting the trade management one thing I'd like to talk about is kind of like setups so uh what are your setups mostly like now if you can kind of like share anything on that I just focus on like two things one is like um a fade you know reversion to the mean so uh in the last few months it's just been a lot of like sub dollar names uh just running from 30 cents to 90 cents and then failing uh so I've been fading a lot of those and then there's been a lot of like you know a couple of like day two and day three runners so I like that like day two gap up push and fail or day three gap up push and fail I don't like like day four day fives now you're just like maybe it's going to be like on day nine or something um but I like that like reversion to the mean type of trade and also uh I like the multi-day breakouts where the stock will consolidate for like a month build a base and then get a catalyst and then get some volume and just break out uh so I try to trade those uh as a as a swing trade um but that's like the main two things and I used to have a lot more setups that I would trade when you have so many setups and you're trading all day and then at the end of the day you don't even know what you did you know there's so many setups you can't even journal you don't know what to what to eliminate there's just too much too much going on that was that was 2021 for me I was like whoo yeah so yeah like eliminating things I think is like really healthy because you can now really dial in on like the one or two setups that you have and just push the size and those like get like really good conviction and just get like really into that like every little detail of that setup and just eliminate the the bad and then just go really in on on on the good and and uh size up in those setups yeah I also saw that you were kind of doing a bit of swing trading um are you still doing that or did you just cut that off completely and said like listen it's just like too much are you still kind of like dabbling once in a while I'm dabbling once in a while but uh it hasn't been that that setup hasn't been profitable like there has been like a few setups here and there but it's not not a setup that I take on a daily basis or even on a weekly basis I've taken maybe like like less than 10 trades this year um so 95% of my PNL came from shorting so yeah but in 2020 2021 that was like one of the craziest bull runs of all time and I just kind of learned to buy those breakouts in that market and it worked really well and I think I'm going to go really really hard um if and when we get another one of those like bull markets yeah I would really focus on that um setup because the risk reward and the liquidity you can get is just mind blowing yeah for real and it'll double you know do you think we're on the cusp of another one anytime soon no idea man no yeah for real um one thing that I saw too that you kind of posted a bit on twitter was that you scratched out the liquidation setup and I know that is some traders like bread and butter you know um but also maybe for some traders it was the worst setup of their life after eye leg and stuff like that happened so could you kind of talk about your process of saying like listen I'm scratching out the setup I'm done with it I'm not going to touch them anymore um I think I know the answer but just maybe for some viewers because that's a topic that has come up a lot on the podcast those liquidation setups everyone seems to be after them so I'm just kind of wondering your your approach yeah so my my process basically I tag my setups in trade review and uh and then I click on that tag and I look at the stats and I see the performance of that particular tag um and I think this year um I took I took five of those trades and only one of them was green and um my losses were greater than that you know each individual loss was greater than that one little win so it's just like the win rate is like tiny and the risk reward doesn't make sense and it's just like I just don't feel any like I don't feel I have any confidence going into the next one is that like kind of like uh would you say that's like common like as far as like setups go like if a lot of people kind of start doing the same thing over and over and over you have to kind of look at a different and say okay this is getting a little bit too overcrowded because like I feel like that liquidation setup like everyone was short looking for that big liquidation move you know so then you get these big wicks trying to stop people out and you just get this kind of like wacky price action so like do kind of take it into account saying okay maybe this setup is just too crowded I'm scratching it out I don't think about it like that I don't think so because like for example we've been shorting day one stocks for years and years now and it's it's really crowded now but they still fade you know but this one there's there's obviously some manipulation going on there's something some you know Chinese you know traders behind it that are just pushing it up and they know they're going to get some liquidity if they like wipe the offers so I think it has some that one is definitely crowded but I know it's not because people are stopping in themselves out it's just like somebody is wiping and manipulating the offers there I think that's what's going on in that one but I think like the more people they're trading it I don't think it really affects the setup like all that much in the short run maybe in 10 years it'll be you know completely different but right now I don't I don't think so in the short run I don't think so