I recently took two nasty losses.
One after the other …
- Basel Medical Group Ltd (NASDAQ: BMGL) on June 2.
- And Alzamend Neuro Inc. (NASDAQ: ALZN) from June 2 into June 3.
All of the details are included below in this blog.
⚠️ This information is very important ⚠️
For some traders, the pain of a loss is overwhelming, and it stops them from revisiting the trade to understand what went wrong. Then they continue to make bad decisions because they never understand the true issue.
We don’t want to obsess over these losses, but we HAVE TO revisit the trades to diagnose what went wrong.
Otherwise, how are we expected to trust this trading process in the future? Theoretically if it fails once it can fail again.
Everyone takes a loss now and then. But true traders diagnose the issue, fix the issue, and charge ahead.
I just took two big losses …
For traders who are struggling right now, use this diagnosis to recognize how my bad behavior could remind you of your own behavior.
I talk about profits a lot, but those who still struggle to make gains might need a different approach.
Loss #1: BMGL
On May 29, BMGL announced that it had a strong financial position in the midst of this 2025-tariff market volatility.
The next day, Friday, May 30, the price spiked 590%*.
On Monday, June 2, the price spiked even higher. The full multi-day move measures 800%*!
On June 2, I bought shares accidentally on the back end of the move as a dip-buy play.
I liked the play at first. But I forgot to cancel my order when I changed my mind due to the extreme price action.
And by the time I noticed, the stock had already fallen $2 per share from my entry!
My trade notes are below:
On the chart below, you can see my position from June 2 and the apparent support at $7.
Every candle represents one trading minute:
The chart bobbled at the $7 level early during premarket. Then it bounced off of that level after the market opened for regular hours between 9:45 A.M. and 10 A.M. Eastern.
It was a decent trade idea to begin with, but when the price fell aggressively through that support, I should have sold immediately.
Had I known that I had a position, I probably would have …
It was undisciplined of me to keep that order open.
We could even make the case that I should have sold immediately after realizing my mistake. Instead I tried to get my average down.
This whole play was one massive screw up.
Loss #2: ALZN
That afternoon, June 2, I bought shares of ALZN as the price spiked into after hours.
ALZN is a former runner that fell fast from the recent highs made on May 29. The price spiked 140%* that day after announcing its first patient dose in a “Lithium in Brain” study.
My goal was to sell the next morning, on June 3 during premarket hours for a profit. The stock was following my number 5 bounce pattern. But once again, I screwed up.
Read my trade notes below:
Here’s my position overlaid on the chart. Every candle represents one trading minute:
Had I woke up on time, I could have exited this trade with a profit. Or at the very least, a smaller loss.
This is a perfect lesson that the stock market doesn’t care about my schedule. It doesn’t care if I’m tired and I want to sleep in.
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These stocks won’t wait for me.
Learn From My Losses
2025 Millionaire Media, LLCRemember that everyone loses from time to time.
You’re not alone.
But the losses that I shared above are unacceptable.
- I need to have more discipline with my trade orders.
- I need to cut losses more quickly when I make a mistake.
- I need to wake up in the morning with more conviction.
I’m still green on the year. But these two losses wiped out nearly all of my gains from May.
Do you see how easy it is to lose money when we lose discipline??
Stop losing unnecessarily large amounts of money. Instead, stick to my tested trading process.
It’s the same process that all my millionaire students use.
This week I broke my own rules and I suffered some large losses. But I’m already back on the horse and I’m determined to stay disciplined.
I won’t let these losses weigh on me. Instead, I’ll use them to get better.
Cheers
*Past performance does not indicate future results
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