BLACK MONDAY - The Day Wall Street Dropped 22% in Hours
Just a little history lesson for those whoāve never heard about this event.
I remember learning about this event back in university - I graduated with a degree in economics. Funny how 18 years later, after being closely involved with markets and macro events, the things that once felt dry or annoying to study have become genuinely fascinating. Perspective changes everything.
October 19, 1987, the U.S. stock market dropped 22.6% in a single day.
They call it Black Monday - still the biggest one-day crash in history.
No war. No pandemic. No major terror event. Just pure market panic.
Stocks had been surging all year - the market was up nearly 40%. Valuations were stretched, and the Fed started raising interest rates. That was the match.
But the real fire came from early computerized trading.
āPortfolio insuranceā was supposed to protect investors by automatically selling during a drop - but instead, it caused a feedback loop. The more the market fell, the more machines sold. And there were no circuit breakers back then to pause trading.
Within hours, the Dow was down 500+ points (which was massive then). The S&P 500 dropped 20.5%. Billions were wiped out globally. It spread to London, Tokyo, Sydney.
Surprisingly? No recession followed. The market actually bounced back within two years. But it changed the game forever.
- Circuit breakers
- New risk models
- A deep respect for how fast things can fall when fear takes over
Black Monday is a reminder:
Markets donāt need a reason to crash - just a spark and no brakes.
āIn the language of the universe, math is the ink - numbers are the power that shape reality, from galaxies to atoms, and everything in between.ā
It never stops amazing me
This stuff is scary⦠but I survived the week.
It was definitely a tough PA environment - spent most of the time just sitting on my hands.
I didnāt trade in 2020, so conditions like this are new to me.
But Iām grateful for the lessons over the years that taught me just how crucial risk management and patience really are in this game.
Pulled the trigger a couple of times today - ended the day +$375.
Day 22 of my green streak š.
Hard to believeā¦
My longest one ever.
You surviving these moves alright?
My position is no position today š¤
I wasnāt planning to trade today anyway. Staying on the sidelines is my position for today - and possibly tomorrow. To fully support that idea, my apartment decided to cut the power. Perfect timing. š
Tariffs: Pros vs. Cons
(Itās a lot of text, but if youāre curious about how tariffs can impact the economy, itās worth the read.)
Letās break it down - short-term and long-term advantages, disadvantages, and why governments keep using tariffs even when they often hurt the economy.
Disadvantages of Tariffs
1. Higher Costs for Businesses & Consumers
Tariffs = import taxes. Companies either absorb the cost (lower profits ā”ļø less investments) or pass it to consumers (higher prices).
Result:
ā Inflation rises
ā Demand drops
ā Spending slows ā”ļø weaker growth
Example: Tariffs on car parts or electronics raise prices - even for items āassembled in the USA.ā
2. Retaliation from Other Countries
Tariffs often spark trade wars. Other nations retaliate with their own tariffs:
ā Hurts U.S. exporters (farmers, tech)
ā Lowers demand for American goods
ā Increases uncertainty = less investment
3. Supply Chain Disruption
Global supply chains = modern economyās engine.
Tariffs force costly production shifts, reduce efficiency, and hurt competitiveness.
4. Slower Growth & Market Impact
ā Higher costs + weaker exports = reduced GDP
ā Businesses invest less
ā Fed may keep interest rates higher to combat inflation
ā Risk sectors like tech & real estate suffer
ā Market sentiment weakens (lower P/E ratios)
Why some sectors like tariffs.
Steel, agriculture, or select manufacturing may benefit in the short term.
Long-Term Effects:
ā Less global trade & cooperation
ā Economic isolation
ā Slower innovation
ā Weaker dollar
ā Lower investor confidence
Then Why Do Governments Use Tariffs?
Because politics isnāt economics - itās perception.
1. Easy to Sell
āWeāre protecting workers.ā
āWeāre standing up to foreign powers.ā
This narrative wins votes.
2. Real Pain, Emotional Relief
Globalization caused job losses. Tariffs give the illusion someone is finally doing something.
But hereās the catch:
In the last trade war with China, ~300,000+ jobs were lost.
Only about 6,000 jobs were directly created.
3. Invisible Cost
You donāt see tariffs on your TAX RETURN - they hide in price tags.
Thatās politically convenient. That makes it easy for politicians to blame others, even if tariffs helped drive it. While the governments collecting billions in tariff revenue, the cost is ultimately passed on to consumers, not paid by other countries.
Just a fact: companies wonāt eat the cost - we will.
4. Short-Term Win, Long-Term Pain
Tariffs donāt protect economies - they protect politicians. They sound strong, but often weaken the system from within.
Moral of the story:
Protectionism wins hearts, not spreadsheets.
Just something to think aboutā¦
I hope Iām wrong - but time will tell.
Wonāt lie - it was a tough day for me. Took a lot of paper cuts along the way until I caught a couple of good shorts. Decided to post my losing trades today instead of the winners. Paper cuts before a decent one, you know how it goes. Ended the day green - a little over $200. Iāll take it.
What helps me survive days like this, when Iām wrong on direction, is tight stops. Always respect the stop. No averaging down. Itās okay to let a trade go - risk sink is fine. I try to only take confirmed setups: FVG inversion or OB rejection. And again - stop should be respected, then wait for another confirmation. 3-4 might fail. Itās ok. It wonāt damage me. Holding a loser - that what can bring a lot of damage. P$L and emotional.
Hope you were the one who banked on that long - unlike me trying to short a strong move. But Iām still happy. Every trade I took today is one Iād take again any day.
How did your day go ? š¤
$410 š for the day.
I couldnāt trade my TPT accounts due to a data issue - still waiting to hear back from support.
Wishing you all an amazing month and a strong start to Q2 š
In my country, April 1st marks the beginning of spring.
I still remember that feeling after a long, dark, cold winter - the sense of a fresh start. The grass and trees slowly coming back to life⦠such a beautiful time.
Itās not something I can fully explain in just a few words.
Iāve learned this approach from some incredible futures traders: @JDadastra, @100handlez, and @LiveMicTrader1.
If youāre looking to dive deeper into this topic - especially around proper risk management across multiple accounts and how to scale without blowing up - I highly recommend checking out KINGLINE.
Itās the most affordable community membership ($25 only) out there, and hands down the best value in the market.
You know, I rarely recommend anyone - itās like giving away a piece of my heart.
And just so you know, Iām in the chat every day, by the way š
https://t.co/vuMsBT7Ylj
LOL, my entries might suck⦠which I obviously canāt agree with, of course š„¹. And maybe I misunderstood the math š§® - even though math is basically my middle name š¤£.
But one thing I am sure of: I donāt give a damn if my entries are perfect or trash, or if my strategy is genius or garbage⦠all I care about is positivity expectancy, confidence on my strategy and consistent paycheckš¦š¤·š»āāļø
And honestly, after years in the market, it doesnāt matter how beautiful your trade looks - or doesnāt. Whether itās one perfect trade or 55 scalps, whether you spread the risk or sink it, whether you trade the 1-minute chart or the hourly.
If it brings consistent results and positive expectancy - youāre golden. Youāre part of that top few percent. š«°ššŖ
Donāt ever listen to anyone. The only thing that truly matters is your stats. Thatās the one and only math š§® that counts.
BTW caught a nice 40 points long during ASIA š„° first trade for a month. April - letās go šÆ
Well, that was a challenge month - I pushed myself to build more discipline.
The main goal of this challenge was to stick to 1-2 micros and trade stress-free, with a hard stop of $50-$100 per trade. No copy trading - only risk sinking.
And honestly, I impressed myself. This was probably the first month I felt completely calm.
Zero emotions. Zero blown accounts. No evaluation trading. Just pure execution and probability.
The goal was to generate the most profit to my five main paying accounts - and I ended up with over $8K realized to those alone.
$5,384 out of it went to two TPT Pro accounts, which was another goal since theyāre eligible for daily payouts and my goal to grow them the most.
The rest of the accounts are safe too - small profit or minor losses, but no damage. Theyāre ready to continue working and absorbing risk.
In total, I realized $7,304.24 across all accounts with 1-2 MNQ, which equals about 85R based on an $86 average risk.
Pretty impressive what risk sink can do - you can actually make a living trading just 1-2 micros. I did better than in previous months when I was trading 2-5 contracts or more.
Next, I plan to gradually increase risk and see how it affects both my stats and my mindset.
Keeping myself out of stress is the top priority now - I need to protect both my mental and physical health while provide the leaving $ to my checking.
āShe just made pure choices in life⦠she deserved to be where she is.ā
People love to say that.
Iāve heard it said about me as well and not onceā¦
And I usually just smile, thinking:
āGod, I hope you or your kids never have to face the kind of choices I had to make.ā
I was born with a disability.
Doctors said Iād never walk.
It took 17 years, 8 surgeries, and relentless pain to prove them wrong.
While I fought for my body, my father drank himself into rage.
My mother - beaten, bruised, hospitalized - was still my backbone.
We lived with debt.
We knew hunger. It was not a metaphor - it was for dinner.
I lost babies. Faced divorce. Danced with depression.
But I never gave up. I earned my degree from one of the top universities in my country. I immigrated to the U.S. for better future with one suit, no money, no English - just a dog I wouldnāt leave behind.
I worked every job I could find, survived on grit, and sent all I could back to my sick mother.
Iāve stood on the edge of life.
Held hands with death.
Watched hospital beds become altars.
So when someone opens their mouth to judge others by the āchoicesā theyāve made, I want to scream.
Because most people wouldnāt last a year in the skin of someone whoās had to survive, not just live.
Donāt talk about choices until youāve made one in the middle of a nightmare and still found the strength to rise the next morning.
You donāt know what someoneās carrying. You donāt know the war theyāve lived through just to stand in front of you and smile.
This world isnāt dying from bad decisions and choices.
Itās dying from a lack of compassion.
So be kind.
Be deeply kind.
Because one day, youāll need someone to show you mercy, too. And most likely, itāll be the very person you once judged for making the āwrongā choiceā¦
And kindness will be the only thing you canāt buy, borrow, or fake.
Itāll be the only thing that saves you.
If youāre a novice trader (1-3 years experience). Still working toward consistency, still not fully profitable - this question is for you.šš»šš»šš»šš» please answer
You might have some winning days, but you also still face those tough days that wipe out an entire weekās progress. So hereās a real question:
Does seeing all those āmotivationalā screenshots of $2K+daily gains (times 5 or 20 funded accounts) actually help and motivate you?
Or does it quietly distract you⦠make you feel like a failure, like youāre the only one who hasnāt āmade itā yet - even though youāre showing up every day for months and months, trying your best?
Does it make your own journey feel boring, too slow, even shameful?
Does it truly inspire you⦠or does it annoy you and pull you down? How itās effects your trading journey?
Iām genuinely curious - what do you really feel inside when you see that stuff?
Iāll share my own feelings and experiences about it later..
380$ for a day. Day 16 š . Who is waiting my red day same as I do? Lol
The main thing is when it happens to keep it healthy. But for now Iāll take my beautiful streak. Itās been a while I havenāt had that long green streak
Day 15 on a green streak. How long it going to last š¤ Iām preparing every day. But it keep going: another 500$ day. It adding up. 3 more days for this month.
How itās going on your side?
#daytrading