'Pennies: Going In Raw' Podcast Recap: Bouncing Back From A Down Week

Many new retail traders that have entered the game within the last year have lived by the motto, “stocks only go up.” But what happens when they don’t? On their most recent podcast, "Pennies: Going In Raw" hosts Hugh Henne and Dan Knight break down strategies for something investors have not seen a lot of in the last year: red days.

What Happened: On Feb. 23, Henne posted a screenshot of Twitter of his portfolio showing he was down almost $2 million at the open. Henne didn’t cower from this ugly site and instead got creative. By the end of the day, he was down $50,000.

“Part of it is knowing the market a little bit,” Henne said. “I trust my strategy, it flushes, I get confirmation and I hammer it. I’m always having cash on the sideline… something like Vislink. VISL is coming close to its market cap being the same as how much money they have on the street. I want $VISL to keep going lower… I know what it’s worth.”

Get Savvy: Henne and Knight also discussed how employing different strategies throughout a trading day can help minimize losses. On that big red day, Henne, who is primarily a fundamental swing trader, relied on technicals to day trade in order to make some gains back.

“Even those days I was trading SPY and Tesla options… when I’m good at options I’m good and when I’m piss poor I’m piss poor. That had definitely helped bring me back, I made a good chunk on TSLA and SPY,” Henne said.

Hugh and Dan also gave some insights on how hedging existing positions can help minimize big red days, as well as how scaling back some positions could be helpful to some traders.

“If a dip scares you, you either ‘A’ don’t know enough about it, ‘B’ don’t have conviction in it, or ‘C’ have way too much of your money in it,” Knight said.

Benzinga is a sponsor of "Pennies: Going In Raw."