Emotional Un-Intelligence In Day Trading! (Holding losers)

As all traders now, and all traders before, we have all had to trudge through a myriad of internal and external forces that drove us to make very costly decisions in the Stock Market. I am sure by this point in your trading you have discovered problems like over trading, revenge trading, trading outside of your “setup” or strategy, or take my current struggle…….not cutting losses! Follow along on this post and we will deep dive into issues I have discovered in my own trading and will pass on my solutions to you!!

Just recently I took a trade on a stock that fit my strategy really well. I took the trade as usual and sized in heavy based on my overall trade ideas. The stock however, went against my position and did so way outside of my rational stop loss. Now, this isn’t the first time this has happened, nor will it be the last time I take a loss in trading. (all trading strategies will have a reasonable amount of losses) The problem here is that I did not stop the trade after it went outside of bounds! Strange right??

There are many factors that lead up to this kind of inability to emotionally regulate during high stress events, and believe me, in trading they can, will, and do occur. First lets take a look at a winning strategy and get a better understanding of how it actually works mathematically.

Let’s say we have a trader who executes a strategy with a high win rate. His/Her win rate is 80%. This means that out of 100 trades this trader places, 80 of those trades will generate a return. The other side of this, is that 20 trades out of that 100 will incur a loss. One of the trickiest parts about that idea is the randomness. Even though we know 80 out of 100 will win, we do not know which 80. We also know that 20 out of the 100 will lose but we do not know which 20!

To explain this better lets pretend we are wagering on coin flips being heads and tails. We know that the odds are 50/50. Unlike trading there aren’t many variables but lets keep an open mind here. Let’s take this randomness idea and apply it to how many different variations of heads tails we get out of 10 flips.

FLIPS T=Tails H=Heads Both examples are of 10 coin flips

FLIP 1 : T T H T H H T H H H

FLIP 2 : T H H H T H H T H H

We can see just in 2 examples that there are random and unpredictable outcomes. With the combinations generated from flipping a coin 10x, there are 1000 possible outcomes. A coin however, has only two possible outcomes. Trading has more variables when we incorporate a trader who will change his/her bet sizing, entry/exit, external factors changing the heads or tails in real time i.e news releases etc etc. A trader, a person, a person with emotions and a life that has factors other than trading effecting their mental and emotional state i.e relationships, career, things are more complicated than flipping a coin.

Lets look at some of the issues that contribute to NOT cutting losses :

Confidence Bias

This is an issue that can occur after really solid winning streaks. It is the idea that you cannot be wrong because the market has proven your ideas for such a long stint that you completely forget about the loosing 20%. I have had this issue but it gets more complicated especially if there are other external factors putting you in a bad state of mind. This is essentially like you betting heads and it landing heads 40 times in a row!! Tails will come, and they can be painful.

The Fix

Place a stop loss. My fix was to scour all of my collective trading data to identify an average draw-down. After reflecting on this data and coming up with a PnL draw-down I have, posted at my trading desk that number and use that as my cutoff. It is ultimately up to the trader to determine their risk and how they will ensure they follow through at the time things are not working out as they had expected. I have been trading for over 6 years and still struggle with this. (this is actually my current biggest trading flaw) One thing to remember, is that a winning strategy is also a game of longevity so try and think of the big picture not the single trade.


This one is tricky especially if you are a newer trader because we want to spend as much time as we can with the market. This is good and bad! I used to trade for over 12 hours every market day, work a swing shift at my job, spend time with my family and………what the hell was I thinking. We can very easily become obsessed with the market and not take necessary breaks. The market is not going anywhere and any trade missed is not that big of a deal. It may help to stay out of social media where you can see what other traders are doing or have done to mitigate that resentment FOMO (fear of missing out). I promise you have not missed the only trade ever!!

Whats The Fix?

I am just now re-approaching these ideas. I have had in two instances,…… times where I was emotionally drained and burned out from the trading grind that I was incapable of making sound decisions on risk (both times were right after incredibly green months, and there were external factors building). I personally schedule times to be available for the market, and to be away from it with purpose. I also will take every other Friday off if the market is slow. I use the other time to be productive in my life in other areas whether that be building my relationships, working on mindfulness, and enjoying the outdoors. It is extremely important that we are capable of removing ourselves from the market and take adequate mental breaks.


Topic : Let’s Explore, Market Condition.

Hello traders and welcome. We have all traded through different markets. Some markets are responsive markets and have a rational flow, others are super volatile with large irrational swings. As we continue on our trading journey it is important to keep track of the market behavior and how that behavior affects our edge.

For those who are new to this blog and or who I am, I am a Day trader and the founder of The Freedom Grind. I primarily Trade with a heavy short bias (trade the downside action) on lower cap Stocks, This will be my interpretation of the market as it relates to my edge and what I see as the current market condition.

Looking at some of the trades that are most recent we can see some good moves to the upside and then a very slow descent back to rational levels.

GMVD 5 min chart

GMVD – This stock is a good example of market conditions. Today’s Trading had 2 stocks that had a similar price action, the other being VVOS. The reason it is worth noting how these stocks traded today is because it will give us an idea where our edge sits in the current market. This particular trade would have worked out but only just, as it had a decent grind to the upside but on the downside we stalled.

When I am trying to asses the market condition, I am doing so in a way that will determine how I should approach my trading. (If you trade to the long side mostly, look at your trades and others that fit your strategy – to determine how well your edge fits the current market.) My current interpretation of these particular examples is to go light on my sizing and pull profits quickly. There are other interesting metrics we can use to tell what the market condition is for your edge that we will discuss other writings.

This is a very quick synopsis, If you would like to have a better understanding of the stock market and get good trading info and tips – join the Trading chatroom and click the Chatroom Button or checkout Our Youtube Channel.




Welcome back freedom Grind Team! This was one of my biggest day trades so far. My team and I are working on new scanners and trading metrics that will hopefully help us generate much bigger gains in the near future. The newest scanner that we have added to our trading strategy helped us nail YELL (YELLOW CORPORATION) early in the Premarket.

This trade Took a very quick response, though, I wasn’t able to get in at the very best spot it did end up producing a decent gain on my small account. I entered this trade at first with an order of 800 shares but only received a partial fill. Once I was in the position I averaged in some more shares short. I ended up with an overall position size of 650 shares short at around $12.53 cents and flattened the entire position at $10.55 cents. This trade has already made April a competitive month compared to the last two and could set me up for my biggest month yet!! Overall Profits on this trade after commissions was $1286!!!!

Here is the chart down below!!




03/17/2021 – Welcome back everyone on this St. Patrick’s day! I didn’t find any pot of gold but I did score some profits from the market this morning. I traded one stock only and ENZ was a hold from yesterdays trading. I traded FSD PHARMA INC CL B (HUGE) for a profit of $678 dollars!! Let’s take a look at the trade and see how it worked out!


I averaged into this stock short pretty heavy pre market. I ended up with a total position size of 820 shares short. My average price was $3.55 cents per share. I held all the way through the pre market and into the open. My idea was to close at the blue line but covered my position early on the flush right after the open bell.

Follow Us Here at THE FREEDOM GRIND and get all the newest information as we post our trades, and update our services. I currently do not have any more Day trades to use this week but will be trading again at the beginning of next week so hang with us to see how we are taking profits from the markets every week.




Welcome back traders! Today was a big day for me as a Day Trader as I finally hit the 1K a day mark! I have been waiting to push the gas a little bit and be more aggressive in my positions so that I can Have a 1K profit on the day! I finally hit my mark trading three different stocks which all have added to the account.

The chart Above shows my entry point into ENTX though this stock Trade was placed in the Pre Market on Friday I held until today for a total profit of $626 dollars. This stock also had some very aggressive buying at the open Friday which had me sweat through some Circuit Breaker Halts but in the end I was able to Profit. I closed This position around that Blue line on the Chart and Entered at the Red line!


I am currently holding this position into tomorrow morning in hopes that it can maintain these lows so that I can have a day trade for in the morning! I have 285 shares short currently at an average price of $2.04 cent and am in the profit about $140. Let’s hope it stays that way into the morning.


This is the third trade I placed today and closed out the position as close as I could to $300 dollars in the profit but ended up with a market buy order to close and netted $297 dollars this morning. My average price was up there at the red line and exited a little early which I have no problems leaving a little bit on the table!!



TRADE RECAP 03-10-21 MNOV +$425

Good Morning Traders and investors! So far the strategy is a very trustworthy one. I have successfully completed a month and a half of successful trades! This trade was a little rough but in the end it became successful for me. Lets have a look at the Trade on the 2 min Chart!


I was able to enter (MNOV) MEDICINOVA INC Pre Market with 300 shares at $11.01 average price! I had to set through some pain on this one though because after I entered, it decided to have one more pump all the way up past $13 dollars….um OUCH. But looking at the bigger picture I was not nervous as I have grown to trust my strategy! My exit on this position was $9.58 cents per share!!

Once we opened though I was getting a bit anxious to get my money and walk because the open was volatile! Honestly the open trading looked like a futures market open where there are huge swings before there is a direction and continuation.

This trade has brought my monthly earning for March so far past the 1K mark and there are still a few weeks to go!!!




Welcome back Traders! Today I added more profits to the account making my way to the magic 25K mark. I took this trade right after the pre market open around 4 AM. I started this position a little more aggressively trying to get a larger position into this trade.

Check out the trade with some live footage to the right—–>>


You can see I was able to average in pretty heavy before closing out in the pre market session. I ended up overall with 1050 shares with an average price short at 3.80 cents per share. I was able to close the position with one limit order at 3.50 cents for an overall profit of $320.

Overall this trade went very well. One thing I am taking notice of is the fact that I am leaving a lot of profit on the table as the trades tend to keep it moving to the downside after I have already jumped ship! I will really be looking at trying to improve this metric but am still happy with my progress in this strategy overall. Happy Trading everyone and have a good weekend.


I will be looking for more trade opportunities on Monday next week and look forward to posting them here so like and follow this blog for all my trading updates!



Check Out My Video Recap Of This Trade On YouTube

Hello Traders! Another day another dollar, or in this case a couple hundred to add into my Interactive Brokers Account! On the road to 25k. I was actually watching this stock since yesterday and had the suspicion it could not maintain these ridiculous trading levels. I was able to place a trade pre market as always and close out before market open.

In the image below you can see my order fills for my short side trade in RKT this morning. I noticed I have an uncanny ability as of this far to get really good entries. I only shorted this stock with a position size of 50 shares but was able to squeeze a pretty good profit out.


After waking up this afternoon I noticed that RKT tanked super hard…….but as traders we cant focus on what has already occurred and must quickly move on to the next opportunity. I will have another Day Trade available on Friday so I will post here and we will see if I can grab more money out of the Stock Market and add it to my Account with Interactive brokers on the road to 25k.

I appreciate all of you that read my articles and Like and Follow my Blog!! See you on Friday!


Todays Trade Recap ECOR On The Road To 25K


Welcome back Traders I hope you all had a good weekend! This morning around 4:10AM I started to trade the market. I found ECOR on my premarket scanner and it was screaming to be shorted….lol, so I DID! Overall the trade wasn’t too bad, however, there were some mistakes I made in this one.

The first thing that made this trade a little difficult was that I went too aggressive to early! I ended up with 900 shares short with an average price of $3.60. Not a bad price looking back now, but the trade went against my position over $.40 cents……yikes. While I was holding through the pain (sit and sweat as I call it) I was able to reel in my anxiety. I held strong and patiently until the stock price dropped back below my entry price.


Todays Profit was $162 added to the account on The Road To 25K!!!! My focus for the next trading day will be a little more reservation in averaging in. I need to take it a little slow and be methodically aggressive and not allow my frustration of being under the PDT drive my trading decisions. Things like that take you away from what you are doing right!!!

Happy Trading you all!



Last Live Trade From This Account Via TheFreedomGrind YouTube Channel

Welcome back everyone to The Freedom Grind Investors Blog! I am currently day trading a small account with Interactive Brokers with several benchmarks in mind. My first benchmark is 5k! My current portfolio balance is $4,300 so I don’t have much further to go for that goal. My starting balance was $2200.

The ultimate goal is to reach 25K in order to be above the PDT or Pattern Day Trading Rule. This is a regulation that prevents U.S citizens from day trading freely if they are below 25K! It makes no sense honestly but unfortunately, those of us that are small money Day Traders have to work within those boundaries.

The image above is my current Equity Curve with interactive brokers. My strategy with this account so far has had a very high Win/Loss ratio and has allowed me to double the account in a little less than a month. I am only trading Short side trades and will most likely not get into any long positions for the foreseeable future.

One thing I do want to mention is the Products and Services Tab in the Dropdown Menu at the top of the website! Once I surpass the 25K benchmark, I will be teaching this strategy and it will become accessible in that Tab! If any of you are interested in learning a highly profitable trading strategy, comment in the comments section. This will not be a free service, but all information in this blog as well as my YouYube channel will be a free resource for all of you!



Welcome back Traders and Investors! I was able to lock in some profit this morning trading short side on a low float stock that went parabolic to the upside premarket. I traded DOGNESS INTL CORP COM (DOGZ). This stock went bonkers in the premarket cranking long from about a $2 average price up past $7 per share. There was no news to support this.


I entered into this position with 100 shares short in the premarket consolidation! I like to be conservative with my sizing as I am averaging in, This gives me a better opportunity to manage my risk and average into a higher price while going short if the positions moves higher. I ended up with 200 shares short with an average price at $4.12 cents(shown by the bright BLUE line on the chart) and sold my position around $3.17 after this stock flushed lower at the open!

This morning overall was fantastic! I made my daily goal plus some extra! As traders we leave some on the table periodically but we must always remember, Once we leave an opportunity, we only focus on the next one and do not look back with regret!




Welcome back Readers, Investors, and Traders!!! As many of you know I am invested long term in a portfolio I built around the Covid-19 pandemic. So far the portfolio is up 40% overall! My best performing position in terms of actual net gains is Wells Fargo (WFC). American Airlines (AAL) has been quickly gaining as well right behind Wells Fargo .

I have decided to add something else to my portfolio, and I want to reiterate that I am not a financial advisor. You must accept the risk any investment carries inherently with it, as well as invest independently from anyone’s opinions outside of a professional. With that out of the way, I have added two new positions to the portfolio that I will be averaging into for the long term……hopefully! I have purchased shares of two Market Bear ETF’s that are leveraged. I am buying these on my own opinion that the market is way overvalued and needs to retrace! I currently have 11 shares of Direxion Daily S&P 500 Bear 3X Shares ETF (SPXS), and 13 shares of ProShares UltraPro Short QQQ ETF (SQQQ).

SPXS Daily Chart ThinkOrSwim

SQQQ Daily Chart ThinkOrSwim

My honest hope is that I can get to the point where I am holding 100 shares of each while buying more into the higher moves if this market can sustain it. Only time will tell but outside of these two positions, the rest have done very well and I am expecting them to continue to perform positively. I have averaged into my previous holdings slowly, and now have an overall equity value of about $2,000.



GameStop Stock chart representing massive short squeeze (GME)

For those of you that have been in a cave for the last week or so, the Stock Market has been crazy. When I say crazy ….. I MEAN CRAZY. Shares of the Company GameStop went to the moon thanks to a movement started on a sub Reddit group dubbed Wall Street Bets!! The move was created by retail traders who took advantage of the investing institutions that had large short holdings in the Retail video game company stock GameStop (GME). It was a massive short squeeze!!

What is a Short Squeeze? Glad you asked. Whenever a stock has a massive amount of its shares being held Short (meaning investors believe the stock will go down) it can be very advantageous for any one that understands that vulnerability! So, lets start with saying that if you sell short a stock the only way to cover your positions would be to buy back shares that you borrowed. See where Im going with this. Once momentum gets pushed against the shorts, the only way to cover your shorts is to become a buyer. Wall Street Bets was able to put power behind the buying to flush out the short sellers creating not only a huge market upset, but a movement that exposed some of the ways wall street prevents retail traders from being included in the momentum. Trading apps like Robin Hood and many other brokers restricted trading on the stocks that were presumed pumped from the sub reddit Wall Street Bets.

Even my current Broker Interactive Brokers restricted GameStop and several others during this episode. To be honest I was trying very hard to Short GameStop myself but that also became restricted……..go figure. Anyway big thanks to Wall Street Bets from……retail traders!!!!

This may turn out to be a very interesting year in the Markets so pay attention!!




Hello everyone! What a surprise, this portfolio is in new territory for growth! It’s Monday Nov 23 2020, and TheFreedomGrind Corona Virus portfolio is grinding past the previous in the money profits! taking the portfolios all time high to a little over +17%.

I have also used a measly $1.50 cent as day trading capital which is now $4.50. Most recently I bought 1 share of DPW on Friday and swung it until selling today bringing my cash balance from around $2 to $4.50. With no commission charge I figured why not!! lol!


Carnival Corps (CCL) is currently my best producing position! I am long 11 shares with an average price of $14.15. She is now trading in the overnight session at $18.75 per share.

My overall outlook is still long term. Even with the progress some of these stocks have made in the last few months, there could still be some downside. I am looking to slowly add to this portfolios capital to give it more power, and will be looking at value areas to enter if the price flatlines higher than my entry prices.

Let me know your thoughts about how Covid affected the market and how/if you are using it to your advantage! Leave us a comment if you liked the blog entry or just want to talk about trading!!

Day Trading Challenges

Some have a distorted view of what it takes to be a successful trader due to the overwhelming quantity of inept resources promoted all over the web. Truth be told, if it sounds to good to be true, it probably is. No software or system will make you a successful trader, but your efforts will. Use your time to learn and experience trading in real time. Experience is the best way to learn and is invaluable to those learning skills like trading. People spend time and energy to do many great things including sports, gaming, and business. Why would trading be any different?

Finding an edge can seem like the beginning of a wonderful trading career, but this most likely isn’t as streamlined as one would hope for. It is easy to look back and prove the worth of some data but it is far more arduous a task to actually act successfully upon that same data. Success is typically earned and not streamlined into your life (no getting rich quick here!). When I first started day trading it seemed almost unreal that I had achieved an above 90% success rate my first month of trading with only one red day of a minuscule loss. Looking back, I now see the folly of my actions. Although the outcome was positive, I truly had no concept of loss and so could have lost it all that very first month of trading. I am fortunate that this did not occur. Later in my career, the market did teach me a lesson on loss as I squandered 20K in just two trades. From that point on my focus was trading while preventing those losses from ever happening again. I have been successful so far, but there always is and will be something new to learn from the market.

Some say that you cannot buy success and this to me is both true and false. I do owe in part my success to paying the market for my mistakes which, believe me, were quite costly. On the flip side, I do adhere to the notion that no purchased software or coded metrics will streamline the average individual to a successful trading career. Don’t get me wrong here, software can most certainly enhance a traders performance but is not a primary reason for success. I know that I couldn’t trade without a good scanner and decent charting software as well as many technological innovations that make my life easier. You can change your equipment but it won’t make you good at the sport, practice will.

Experience is the key to success. A book, a video, historical data; it’s all good until you try to apply it. Don’t be fooled by promises of success from some guru or special signal promoted on the web, trading success manifests through effort. Not all sources of trading information are bad, but a majority of online sources are misleading. Some sources of information are quite valuable in fact but on there own not likely to grant you an edge. I have never determined it useful that an indicator alone be a reason to trade.

Devising an edge in the market can feel like deciphering hieroglyphs while performing calculus problems and rocket surgery at the same time. Although a daunting task, discovering an edge is very possible but excruciatingly difficult. In all market action there exists exchange/trade between buyers and sellers. These trades amount to gains and losses on the part of the participants in the market. The total gains and losses accrue to an average of the total market, meaning that after fees, all trades ever made in the market have determined at this point in time the current price of all assets traded in the market. There is a caveat to this; some assets traded are margin assets and so do not actually exist as anything other than capital (borrowed money). This is why more shares of an asset can be both purchased and sold (or shorted) than actually exist. Edges are extremely rare to discover as trades rely on an equal exchange of gains for losses and so not all trades made by a market participant can ever be just gains (rather, extremely unlikely). This is true for all markets. With this in mind, it is nearly impossible for one to be consistently on the gaining side of trades without others losing on those same trades. On another note, not all traders get rid of there shares and so do bag hold them for a while. This means that there is always an amount of shares owned and immediately tradable at all times but also some shares that are withheld by bag holders.

I believe that a majority of failed attempts at trading success have come at the expense of those lacking both patience and knowledge. Without a concrete and proven plan and the consistency required to adhere to such a plan it is not hard to see why so many traders lose money to seasoned/veteran traders in the market. Build a plan and be consistent. Proving edge is quite tedious but losing to the market is far more costly.

*I wake up before 4AM to setup and turn my trading rig on. I scan the market for possible good trading setups and individually analyze each asset on the scanner. I then begin trading if the market affords me the opportunity. Each trade is made according to my plan. I sometimes trade late if opportunities present themselves. I do this every day as my job. Some days I lose money and some days there are no opportunities for trading and so I just stare at a screen for those slow days. Believe me, it’s not the most exciting gig out there but it is quite lucrative at times. Although, there have been and will be long periods of draw-down that can last for months. Imagine not having income for months. If one has the patience and understanding, emotional control, and interest in trading then it is very possible given an edge to make a job of trading.

Risk Management

I have day traded for over a year and a half and have learned in this period of my life the value of planning. When the market teaches you a lesson it can hurt both mentally and financially. It is imperative that a plan be determined before trading any asset. When entering and exiting trades, there should be an explainable logic which follows those actions and not some emotional concept about any trade or asset. Every trade incurs risk and so a probability of loss exists in every trade.

I determine my loss at the chart:

  • 1) Determine where to enter the trade
  • 2) Determine trade size
  • 3) Determine Trade management for risk (where to cut the trade)
  • 4) Determine Take Profit

Entering Trades: I typically use charting metrics to determine my initial entry. With this in mind, I determine ahead of time the areas of interest that I perceive as viable turning points for the price action trends (reversals).

Trade Sizing: Sizing trades is still at times difficult to determine given that assets vary heavily in many ways. I size according to risk. I determine ahead of time that the trade can go ‘A’ amount against the position and has the capability if managed properly to realize profits of ‘B’ amount. Risk must be accounted for by equal or greater profits over time. The difficulty with these parameters primarily revolve around the traders’ ability to cut at a loss willingly according to the plan. Another complication can arise when new data is presented or unexpected results come about. Discretion is still valuable, I do use it, but is not inherently emotional. Generally speaking, when in doubt, cut it! Emotion is never a reason to trade, explainable logic is!

Trade Management: Trade management can be difficult to devise at first but with a trained mind and a plan set ahead of time, trade management can be simplified somewhat. Cycling shares can bring your price closer to the end of a move while also reducing risk exposure at the same time. Cycling shares can also be utilized when exiting a failing position. Exiting with small losses and re-approaching to ensure a better average price seems complex and can actually be a catalyst for emotional responses. To cycle shares when a position is moving against you might go against your instincts and willingly overcoming this can be difficult. Although challenging for some to pull off successfully, cycling shares can be a valuable tool under the traders belt. Learn more about Cycling Shares.

Taking Profit: Assets vary and so should the price determined for profit taking. This price for my trades varies even during a trade. The market is dynamic and ever changing and thus should be the ‘take profit’. On entry, I have already determined a viable point by which I am willing to take profits, however, this changes over time. If I adjust for risk in a position, which depends upon the current price actions of the traded asset, I must at times change my ‘take profit’. This is not always the case, but I do plan for this. Other considerations: Does the profit account for or overcome the risk on the trade? Do my gains on average account for the losses I accrue over time?

Trading Analytics

Trading with an EDGE is part of what gives a trader a majority of their profitability, however, there are human factors of judgement that are also at play here. Cataloguing trades for review will enable the avid trader to analyze and optimize their trading. There is a mountain of data to comb for analysis and arduous tasks at hand for the analytical mind.

EDGE – Statistically significant correlation(s) that has the potential when utilized by a trader/system to assist them in yielding a higher-than-average return of the total market average.

One test I like to perform in order to determine if the outcome of my trades were by chance or by luck is the monte-carlo test. It is recommended, but not necessary, that you have greater than 10k data points (trades) spanning across several years of trading for analysis.

What I am testing and how I perform these tests:

The monte-carlo test I perform is designed as though a bot has copy traded my account all year but allocated its own copy trades by a percent of a divisor matched to either their account total value before a trade or just to a specific divisor (Basically, two tests were performed, one with dynamic allocation and one without). These bots were designed to trade my historical trades in a random order under 10k simulations so that a distribution could be plotted and analyzed. Here is an output of 726 of my trades randomized in a simulation for dynamic (by current account size) allocations:

Here are distributions of 10k simulations of my 726 trades:

What I did here:

  1. Exported real trade data from TraderVue
  2. Scrubbed/Cleaned and formatted data
  3. Ran simulated trades using a percentage-based approach:

A. Created percentage gain/loss of trade data set by dividing each trade return by 50k (to get a percentage of account made/lost per trade)

B. Randomized data set and applied it to percentage-based trading simulation

C. Reproduced simulation 10k times (randomly) and mapped distribution

These simulations give the ability of the interpreter to gauge whether the trades were significant with regard to the net outcome of those trades. Basically, was it by chance that I am profitable this year, or is there a high likelihood that my account will approach 0% in the future given the trades I have made this year? The monte-carlo test can also give you a realistic estimation of draw-down in the account (as you can see my simulation plotted above shows a very lengthy draw-down period).

Another way to look at this:

% Chance of loss per trade: (roughly 20% (0.2) for my current records) = D (How often a trade results in a loss)

Average Loss (2.9% of total account) can be converted to L = 100%/2.9%, which roughly equals 35. This number represents the number of successive average losses it would take for my account to reach 0%.

DL (0.2^35) should represent, roughly, the likelihood of my account reaching 0% given that my trades are consistent with those I have used to generate the aforementioned outputs. My probability is very small, < 1%. This can be interpreted as a low likelihood that my account will reach 0% if my trading remains consistent with my prior trading (or I could have 35 losses and go bust). This does not prove that I have an edge! This is not with full consideration of the massive outlier losses I have incurred, but does utilize those data points.

To decipher as to whether it is likely that I have an edge, I will use the following formula:

(U x G) – (D x L) = If positive, indicates that average profit is likely able to overcome average loss as long as new trades remain consistent with those analyzed.

% Chance of gain per trade: (80% for my current records) = U (How often a trade results in a gain)

Average gain (1.3% of total account) = G

My numbers:

(0.8*0.013) – (0.2*0.029) = 0.0046, This is my current profitability given my current trades. This number is an indication that my average win-rate together with average gain per trade is able to overcome my losses, if I can maintain or improve these averages, I should be profitable next year. I can also take this number and multiply it by my number of trades to get a future total max return on investment estimate (by %).

*This number should not be used to definitively determine whether you are profitable but can be a valuable tool to gauge current trading progression. What this number indicates is that the average profits and losses taken into consideration with the win/loss ratio are overall positive. There are many other variables to consider and there is still a probability that my current trading if consistent will not be profitable in the long run. There are some outliers in the data that now exist due to poor position management on my part (ie. I lost 1/4 of my account in two trades, this was clearly not due to my edge and my current risk structure now accounts for these). With this in mind, until I remove outliers in the current data set and have an appropriate number of trades, I will not be able to accurately judge my current edge and trading performance in the market using this performance valuation (there isn’t enough data yet). Although, this does give me a general estimation that can become a basis for comparison in the future.

To interpret the above image: For every $64 I gain, I will also likely lose $36, with an average projected net gain of $28. From that $28, I will only be able to take away roughly $11.20 (Taxes & Fees Hurt!). Multiply these numbers by 1k or 10k and you can see why trading is lucrative for some.

Cycling Shares

Share cycling is an averaging technique used to risk adjust a position over time. In long positions, cycling shares involves deleveraging on pumps and leveraging only on pullbacks. In short positions, cycling shares involves the opposite actions.

Short Trade Example

I shorted the above example. I entered at ‘1’ and exited full position at ‘2’. My reasoning was bullish price action. I re-entered at ‘3’, deleveraged at ‘4’ due to fast bullish momentum, re-leveraged at ‘5’, exited full position at ‘6’, re-entered at ‘7’, and finalized profits at ‘8’. In this example, I exited and entered my full position many times due to abnormally fast price movement, which isn’t viewable on this chart. I typically only exit part of a position and re-leverage heavier as the position moves against me to cycle the shares. I also cycle the shares down and exit small portions of my position as the trade is moving in my favor, which reduces risk. In the example, risk was averted at ‘2’, ‘4’, and ‘6’ and profit taking at ‘6′ and ‘8’ more than made up for any intra-day losses incurred during this trade.

Share cycling involves exiting shares when things are working out and entering shares when things are moving against your position. This averaging method is used to achieve a well risk adjusted position.

Cobra Trading Review

Cobra trading is a broker that is known for its long list of short able stocks. This is the main reason why I am using them at this very moment. Though they rank high on my list, there are a couple of things we should discuss before you make the move to Cobra Trading. In this article I will go through my list of pros and cons in hopes that it will help you all with your decision.

Recommended by TheFreedomGrind – YES!!

Caveat : Most brokers have pros and cons, and though I have used many different brokers and software, there are none that are perfect.

Let’s look at The PROS……..

ACCESS TO SHORT – I want to start off by saying – brokers who have such short accessibility are far and few. This is one of the few brokers that offers smaller capital traders access to many small cap stocks to short by means of a LOCATE tool.

LOCATE FEES – Now this topic can be per instance but, we were able to compare prices to competitors and more often than not Cobra Trading had cheaper Locatable Shares.

GOOD FEE STRUCTURE – If you are an active trader they WILL work with you on cost!!!!

to see more CLICK HERE image taken from www.cobratrading.com/pricing

EARLY TRADING – This broker also allows for trading to begin at 4AM. Most popular retail brokers do not begin the premarket session until 7AM. P.S (I might have Pestered Cobra to open at 4AM …..lol, it was for the greater good).

CUSTOMER SERVICE – Overall Cobra Trading has decent customer service. I have had few problems reaching out and getting problems resolved. I would personally give them an 7 out of 10 here. They have always been respectful, but there have been times it was difficult to get things resolved.

GREAT SOFTWARE OPTIONS – As of today (2/7/2022), Cobra Trading has these options-

Cobra Trader Pro is our most cost-conscious platform. Based on the Sterling Trader framework, the platform is loaded with features without sacrificing any of the features needed for active traders or investors. The Cobra Trader Pro platform offers real-time Level 2 market data, advanced charting, hot keys, and a short locate monitor. Cobra Trader Pro is limited to non-entity and non-professional users only.

  • Real-Time Level 2 Market Data
  • Portfolio Management
  • Hot Keys
  • Stop Orders
  • Advanced Charting
  • Custom Alerts
  • News
  • Stock Watch Lists
  • Das Trader Pro – DAS Trader offers advanced order types, basket trading, charting, and multi-account management in a real-time environment. DAS combines powerful features such as advanced analytics, multi-instrument trading, and portfolio management into a single trading platform.

Sterling Trader Pro – This is a software that is less familiar to traders, but It is a very professional software.

Sterling Trader Pro – delivers a feature-rich package of state-of-the-art equities and options trading tools designed to give traders complete control. From in-depth charting software to the broad range of execution points, Pro’s combination of powerful performance and customization gives traders the power to execute their trading strategies with the click of a button. This Software is similar to DAS Trader.

Now, the CONS…..

HIGH MINIMUN DEPOSIT – This can be a bit difficult For those who aren’t long in the pockets, but still want to get into the game. Cobra Trading has a minimum initial deposit of $30,000. While this is listed in the CONS, most brokers expect an equity balance of 100K or more to have access to short able shares so keep this in mind.

taken from www.cobratrading.com

SHORTING PREMARKET – Early premarket shorting is a tough one. The locate tool has several different routes which you can use to find short able shares to borrow. During the early premarket, some of these avenues are turned off and may not work. We notice that around 6 AM and past are much easier to find locates. Also, keep in mind some stocks are not going to have locates to begin with naturally.

As much as I tried, I could not think of any additional cons at this time. I highly recommend Cobra Trading as a day trading Broker.

Things I have Learned Day Trading for a Full year

Day Trading is a very, very difficult thing to undertake. Anyone who has attempted to trade for any amount of time has questioned whether or not Day Trading was actually feasible at one point or another. Hitting “the wall”, taking another loss, or missing a big move takes a toll, but it all is worth it in the end. I can assure you.

I have been Day Trading for over 6 years now in different markets, and have just completed a full year of day trading profitably. I took an account with $2,200 dollars on January 28th 2021 and have now grown that account to over $40,000 (it is now February 6th 2022). It was not easy to say the least and there were many times a big losing day would cause a lot of stress and weigh on me. On my path to profitability, I have learned so many valuable (and expensive) lessons which I share with you all below.

Do not expect any strategies based on technical analysis though. I cover these in depth in my other posts, courses, and YouTube. Most of the things I learned about profitable Day Trading are more about self-care and discipline.

#1 Take Breaks – You can burn out very quickly especially when you are newer to trading. This past November, I was working twelve-hour nightshifts for my “day” job, but the market was very volatile, presenting a lot of trading opportunities. I thought I could at that time trade for six hours after nightshift, scramble for a quick nap, and then do it all over again. Looking back, I realized how quickly I went from motivated to sputtering on fumes. Overall, I ended up suffering from unnecessary losses. This is not healthy nor conducive to ones Day Trading business. I remember when I was first starting — There was so much information and excitement to learn, but your brain cannot grasp so much at once. There is data to suggest that the brain can only focus for 90 minute periods at a time, and that more breaks result in better decision-making. I highly suggest treating trading like a job – time block and schedule breaks in your Day Trading or market study. This will keep you balanced and better able to manage whatever the market sends your way, as well ensuring your brain is retaining what you are learning. There are also some tricky ways to take breaks from the screen, but still learn about the market. Take time to read some of the best Day Trading Books out there on your breaks (my opinion of course) : Reminiscences of a Stock Operator by Edwin Lefevre, or Trading in the Zone by Mark Douglas.

#2 Have A Daily Routine – This is a simple way to maximize your efficiency and well-being. I used to sit at the trading desk for the entire day. This is not only unnecessary, but can cause problems, even leading to more losses than gains. I would suggest creating a daily routine and encourage yourself to cushion your trading with healthy daily habits. Keeping our minds and body healthy are essential for our ability to handle stress, allowing us to then make balanced and un-emotional trading judgments. My current daily routine involves time for the gym or a walk, as well as reading or meditation, along with time with my family. I also ensure that I am not in my trading area after a certain amount of time which can lead to other unnecessary losses or bad Day Trading habits like the one I will discuss in the next topic.

#3 Do NOT overtrade – A good daily routine should help prevent this so as long as you are disciplined enough to walk away from the trading desk. I believe this may be the easiest thing a trader can do to sabotage his or her results. I had this problem and still tend to take trades out of habit rather than strategy. I was sitting around the desk all day and when the boredom strikes, we tend to “poke” around the market. This is the first sign that its probably just best to take the rest of the day and get some things done around the house, or pick up a hobby that takes you away from the desk. Overtrading is a very expensive bad habit, especially if you pay commissions. The longer we continue overtrading out of habit, the harder it is to un-train ourselves. In your routine, commit to a cut-off or walk-away time. In my case, once I have also hit a personal goal for the day, I shut it down.

#4 Manage Your Risk – This one should be obvious, but it can be a struggle. This starts with incorporating tips 1-3, and then adding in analysis. This comes mostly from any data you have collected or mathematical starting point you pre-calculated. How you trade, size of capital, and percentage of gain or expected gain should be taken into account. Essentially your “Trading Plan” should have risk parameters outlined. Make sure that when starting out you understand this: most likely your win rate percentage will be 30% or less so make your risk plan based off of this to maintain longevity until your win percentage increases above 50%. Risk parameters and a good strategy will help protect you from poor trading decisions. I did these calculations and had the data, but when I was in a Trade, I would get absorbed by the excitement of the market and my benchmarks, strategies, and limits would too easily go out the window. Having done analysis retroactively, sticking to my risk limits and strategies would have prevented $30,000+ of losses.

#5 Analyze/Track/Journal – This, and this alone, has made me a better Day Trader by leaps and bounds. Information is power, and the ability to look back at your data objectively is crucial. There are many methods you can use such as Tradervue, which has a free membership for those that are not trading massive volume per month. There is also just using a regular writing notebook and excel spreadsheets. I honestly use all three. While Tradervue is essential for the statistical analysis, I wanted to track other data as well. The newest addition I have added this year is just a writing notebook. This allows me to make notes on any other variables that might impact my trading – my headspace that morning, how I felt about the market conditions, how rested I am, or other circumstances and outliers that may have affected me that day.

These are the practices I recommend that enable me to bring my best to the trading desk every day. Regardless of what works best for you, create habits and rituals that allow for you to manage and regulate the stress, risk, and emotional variability that comes with devoting yourself to Day Trading. It is a Grind, but it doesn’t have to grind you down.



Welcome Back Freedom Grind Fam!! This morning I took one trade to get myself back on track. I have been using a new scanner to help me isolate the best setups I have noticed for my strategy and this morning it went very smooth!

I entered into SXTC towards the high of the pre market pump @ $2.87 cents average price with a 900 share order, however, I was only filled 554 shares. I am honestly glad it filled me that many shares because with the PDT, it was my only opportunity to get my money out of the market! Let’s check out the chart.


I shorted SXTC at $2.87 Per Market and closed this position Pre Market also at $2.24 cents for an overall profit of $347dollars on the Road to 25K. Thank you all for being apart of The Freedom Grind Team and following my Blog and Social Media Platforms!!!


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