It's March 6.

Friday afternoon.

I thought I'd do a recap for today.

I definitely need a recap.

I need to talk through this.

I need traders to understand what could happen when things go wrong.

When you're shorting the hottest stock on the market how you can lose focus how you congee Just stay so stubborn how you can make a really bad mistake and luckily, how you can get out of that and I can't teach that.

That just so happened was I escaped today, but I can't do this every day.

So I'll go through this and show you So only three trades on the day t vics, carnal cruise lines.

And I know, right?

So we'll get toe.

I know in a second real quick on TV IX, I mean, I dabbled 25 shares in the morning.

I said I'd give it to $100.

Sure enough, it goes up four bucks, I'm out and I don't touch it the rest of the day.

Even here, unfortunately, missed the awesome fade in the afternoon and we'll find out why.

Here in a second carnival cruise lines, everything was jumping in the morning and I was so focused on I you know, I really didn't get the pop on here because I was watching Carnival American Airlines.

Some gaming stocks could have popped into all of them, you know, 3 500 shares and road dollar dollar 50 on most of them, while the ah, the market was moving back up.

And so I missed these opportunities here, actually shorted just a tad.

When, um, news came out that the government was gonna try to see how they could limit people from taking cruises to limit the spread of the Corona virus.

But I didn't stay too.

And it too long.

I mean, quick, 100 shares, $30.

I moved on because my entire day was focused on i n o Let me maximize this for you here for a second.

And so let me take you through what happened.

So in pre market, I started dabbling.

You know, I only did.

Maybe I think it was like a couple 100 shares or so.

And then I covered right away and then we open up the market.

We spike up.

I only get in about 2500 shares.

I cover.

I add back in.

I come down here and I cover 300 shares out of Ah, think I had maybe 2500 shares and I'm thinking we're gonna get the rest of the flush and I'll and I'll finish off the rest.

But at this point on the entire position, I was about four grand.

And so then we start grinding.

We start grinding.

We popped through here.

We see these volume bars here.

Well, I see him now, but I wasn't really focused in on them.

I was focused on him.

Where's my fade?

Where's my big 6 $7000 gain on a Friday afternoon?

So I add back my cover's few 100 shares.

We come up, we test this again.

My average is about 12.

70 right now.

Some patient, right?

My average is still 12 70.

So I add back Maur.

And then this is where it all goes downhill from here.

So this 1,000,000 share candle should have been my awareness that this is basically gonna start squeezing that this is a trap and I should have exited the position for basically flat.

But instead, as you can see, I add at at at ad some borrowing shares left and right.

And adding to the position thinking Okay, I'm getting the last squeeze of the day.

The break of the high of days, but eventually cracked down.

And for a second I was right.

We get down here and we test about 12.

80.

My average here on 10,000 shares is about 13 15.

So I look and I'm up to grand.

I'm, like, Great.

All we need to do is fade right back.

Nope.

Another opportunity to get out lost.

I put like, my last borrows on.

So I'm in 10,800 shares, You know, we fade here.

My average right now is about 13.

16 and then the squeeze happens.

And, you know, I'll tell you something I should have did.

And I didn't even realize it until about over here.

Um, but I should have done.

I wish I did.

But anyway, we get the squeeze.

We get the squeeze you might be asking.

What in the world are you doing?

You broke high days.

You faded back.

He could have gotten out.

Yes, I know.

I could have gotten out.

You break high of days again, and then the squeeze is on.

And so we get to $16 a share.

Mind you, my averages.

13 16 a share.

So I'm down 30,000.

$672.

I wrote that down just to make sure I'd remember that.

Never forget it.

Obviously, as you can see, these are my You know, these red dots are my shorts.

These green dots are my covers.

Red, red, red, Red, Red.

There's no green.

What am I doing here?

Waiting for this fade.

Sitting through this is not fun.

I can tell you being down 30 grand is not fun.

I don't trade to be down 30 grand and then go for the ride.

I could goto, you know, Vegas and get better thrill for $30,000.

So let me just tell you, sitting through this is rough.

At this point, if you're short like I was, you have no idea if this is gonna go to 18 and then, you know, finished the day on the highs and your broker is calling you.

The risk office is calling.

You were liquidating your positions.

You owe us money.

That's the potential.

And so I'm sitting through this And, you know, I'm anticipating that this can't go on much longer because we've got 1,000,000 share candles.

1,000,000 share candles coming up.

We start the crack.

Okay?

It's taken me a lot of years to even be in a position to control my emotions, not freak out.

Be calm.

Stay focused.

Still anticipate what I'm expecting?

Okay, so this wasn't, you know.

Yeah, I guess you could call it luck, but there's some anticipation, Okay?

There's some expectation here.

And so I'm waiting.

Waiting, waiting, waiting.

Okay, so we test 13 fifties, minding my averages 13 16 we come back, we test again.

I want to start covering, because the worst thing that can happen is going into the clothes and this squeezing and, you know, gapping up for Monday again.

It's a Friday.

I don't want to hold, you know, $150,000 of this particular stock over the weekend.

And so what happens?

Well, I don't get the crack that I was looking for, So we go into the post market, and so I'm still watching this like a hawk, right?

Postmark it comes.

We start that, Fayed, we start that fade and I tell you What?

As you can see here again, my average won't let me go back.

I covered.

I think it was I covered.

Ah, 1300 shares right here.

I took a loss.

I'm down 1300 bucks on the day overall.

Um, because I was up a couple, you know, I was up a little bit on that cover from earlier.

So I'm down 1300 from being down 30,000.

I'll take it right.

But then we start getting this fade.

My average now on the last 9500 shares is 13.

24.

As you can see, I'm covering like crazy.

Um, you know, we get one final push down the 12 eighties, but that was just a quick snap.

I mean, I saw 12 85 on level two, but I already had my orders at 13.

And I was just firing away.

2000 share lots.

Like crazy until I was completely field finished the last one in 1000.

And then obviously, here we are at 6:46 p.m. Eastern time, Friday, march 6th, and that was it.

So if you're me, that was your last chance.

That was my last chance to get out.

Who knows what happens?

We probably closed mid fourteen's.

We could have a small gap up and another squeeze out Monday.

And then, you know, the fail happens, but, you know Well, I have an opportunity Monday.

Well, yeah, I have an opportunity Monday.

If this gaps up, you know, 15 goes to 16 17.

18 probably will be more patient, but I can live to trade another day.

And this is just goes to tell you, you know, shorting you can't mess around with this stuff.

You can't be early.

Um, nailed it right here.

You should have gotten out.

Probably flipped and went long.

And so let me tell you what I felt like.

I I realized right around here what I should have did in this area and what I should have did hear when I had my average at around 13.

15 and we cracked over and I said, You know what I'm going to keep this is I should have went long 10,000 shares in my other account.

Now, I could afford to do that.

10,000 additional shares long while holding 10,000 short in this account.

I'm basically boxing the position.

So now, no matter what happens, I am gonna be constantly break even.

Right?

We go up $2.

I'm down 20 grand in one account of 20 grand.

Any other.

And why would I do that?

Well, I would do that, because what's the worst case scenario?

This never looks back, but I make all that money along the way.

So I never really lose money.

What really is the goal?

Is that eventually we do get here, we peek out, we get this crack, and I see that was starting to fade and I locking in the long position, you know, lock in the long position for about $30,000.

Here, honestly, is what would have happened, maybe 20 25,000.

And then I get down here and not now.

I'm focused on the short position, letting it fade right, comes back out.

I'm still up on the position, you know, up in one account, down in another.

And then I could sit patiently through all this vs on the trigger finger, not she knowing what could happen.

And so that's the idea of boxing the position.

It's what I should've did.

I'll remember that for next time.

The only reason why I didn't think about it.

It was because I just set up that other account with the same broker.

And so it's just something that you have to keep in mind.

But you have 30,000 down.

Two.

Ahh, $380 game now 310.

After it's all said and done, borrows commissions.

I'm probably down $20.25 dollars, but again from 30,000 now.

The worst part of that is not even that.

I mean it is.

But what's even worse is that when you're stuck in something like that and that's all you're glue to and that's all you're stuck on, as opposed to, You know, maybe having gotten out dabbled a little bit, maybe really went in big here, covered, some added again, covered a little bit.

But you know, no more than 2 3000 shares what my account can support.

You know, not going into margin those kinds of things gives me enough room to have mind clarity and mind space toe.

Witness this opportunity right?

I'll line these up here where we get the reversal at the end of the day like we did last Friday, shorting something TVX couple 100 shares, you know, 300 shares.

Max.

You know, I'm getting $2030 a share on there to end the day, and I can't do that because I'm totally focused on one position.

That's really grinding me.

And so that's what you've got to do it too much size was mistake number one not getting out when I should have number two deciding to stand.

But then not boxing the position if I'm going to stay in getting into early, so many things wrong.

But I'm going into the weekend completely in cash from 30,000 potentially down, blowing up this particular account to, you know, living to trade another day in this count and just moving on.

Lesson learned.

But I wanted to share that because I don't want this to happen to anyone.

Especially if you're new.

If you're just getting started if you never shorted before or if you've got our life savings in an account, I've been doing this for years.

Um, I don't want to do this.

I can afford to, but I don't want to.

Okay, um so this is more of a lesson learned.

This is not even bragging rights.

This is a terrible, terrible trade.

Stupid trade.

Um, you know, have I done this before?

Yeah.

Has it bit me in the butt?

Sure has.

I paid the price in the past.

Obviously, I thought those days were behind me.

But obviously every so often, no matter how long you've been trading about how you know, decent, your gains have been in the recent past.