How I Recovered from Yesterday’s MAX LOSS Red Day
Hey everyone, Ross Cameron here! Today, I want to share with you how I managed to bounce back from a tough red day—my first red day in months, since June actually. If you’ve been with me a while, you know that when I get into hot streaks, I ride them hard and keep pushing forward. But, like all traders experience, red days happen. The key is how you handle them and recover. Let’s jump into it.
Reflecting on Yesterday
Yesterday was a tough one, no doubt about it. After an incredible run, I ended up in the red. And not just a small loss. It was a MAX LOSS red day, the kind that stays with you for a bit. I overtraded, pushed my limits, and instead of walking away when I should have, I dug a deeper hole. It’s easy to get frustrated after a run like I’ve been on, but red days are part of the game. I found myself letting emotions guide my trades, which is the opposite of what I preach—discipline.
But, what I realized is that instead of being stuck on that negative energy, I needed to take some time to reflect on the bigger picture. I told myself, “Ross, you’ve had a fantastic streak, don’t forget to celebrate that.” Every trader has losses. It’s part of the process. It’s what you do after a loss that defines your long-term success in day trading.
My Approach to Today’s Trading
This leads me to today. After reflecting, I knew I had to come into today with a different mindset. I wrote down a few ground rules to keep myself grounded:
- “Go slow.”
- “Remember the $1,000 cushion.”
- “Max 5,000 shares until momentum returns.”
These reminders were crucial, particularly focusing on smaller share sizes until I saw momentum building. Having too many shares in play when the market isn’t moving the way you want it to can lead to disaster. I also reminded myself that today wasn’t about swinging for the fences. A small green day was the goal. Get myself back on the horse, steady, and build from there.
I like thinking of it like a storm. You don’t try to make big moves when the weather is bad—you batten down the hatches and focus on surviving. The market was choppy yesterday, so I had to wait for the right opportunity.
Kicking Off the Day
When the opening bell rang, I was ready to stick to my discipline. The first stock that popped was SMX. This one came out of the gate with some strong momentum. My first trade was a nice win. I grabbed $1,000, and then another $1,000 on the next trade. Before I knew it, I was up $3,500.
It felt great, but I also knew I had to stay grounded. Momentum can shift at any point. Even after hitting $7,000 in profit, it’s easy to let your guard down and think you’ve got everything under control. But I’ve been here long enough to know the market can change in a split second.
SMX kept giving me opportunities, and before I knew it, I was just shy of $10,000 on the day. I gave $100 back on a final trade but decided to call it a day before I stumbled into a risky afternoon trade.
Analyzing My Biggest Trades
SMX was definitely the highlight, and what made it work was how clean the setups were. I took trades on micro pullbacks, which is one of my go-to strategies. For those unfamiliar, micro pullbacks happen in the middle of a quick upward surge and offer a small window to get in and out. I got in at $4.16, added at $4.20, then watched it pop to $4.50, where I took my profit. It was textbook.
BLMZ was a bit trickier. I took an early trade but got stopped out when the stock didn’t break the $3 mark cleanly. Honestly, that was just how things go sometimes. You can’t win them all, and part of day trading is knowing when to cut a loss quickly. I lost $500 on that trade, but again, I didn’t let it phase me. The discipline to take a small loss helped avoid bigger issues down the road.
Why Discipline Matters
Days like today remind me why discipline is a critical part of successful day trading. Over the years, I’ve seen (and been a part of) emotional spiral trading. You lose, you chase the loss, and before you know it, you’re having back-to-back red days, digging yourself into a hole you can’t climb out of. That’s where the Trader Rehab program comes in.
What I like about the program is that it throws up the guard rails when you need them most. After a huge loss, sometimes the very best thing you can do is to take a step back and size down. This week, I didn’t go full Trader Rehab, but I did use many of the same principles—restricting myself to fewer shares until I had a good setup, stopping when I was up for the morning, and avoiding afternoon trades when I’d likely face unnecessary risk.
Discipline isn’t something we master once and for all. It’s like a muscle. The more you use it, the stronger it gets. But if you ignore it, it weakens. Yesterday, I let myself slip, but today I focused completely on maintaining control, and that’s why I bounced back.
Looking Ahead
As I close out today’s session, I’m walking away feeling really good about how I handled the trades and my emotions. Sure, the market can be unpredictable, but as long as I stay disciplined and stick to my strategy, I like my chances of continuing this rebound.
There’s still the rest of the week to consider, and I’m already thinking about tomorrow’s game plan. I won’t shift away from holding myself accountable and trading smaller, more manageable share sizes, especially until I see clearer momentum. And I’ll keep doing what worked today—pulling out early, taking consistent small wins, and avoiding giving back too much.
To anyone out there struggling after a red day, my best advice is this: take a breath and refocus. Don’t try to make everything back at once. Go step by step. Remember, trading isn’t a sprint, it’s a long process. Control, discipline, and patience are key.
So that’s it for today’s recap. As always, remember that trading is risky, and most traders lose money. My results aren’t typical, and every trader is different. Make sure to practice in a simulator before putting any real money on the line. Thanks for reading, and I’ll see you in the next one!
How I Recovered from Yesterday’s MAX LOSS Red Day
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.