Day 7 of Trading at Webull with $2,000 transcript

What's up everyone? Welcome to day seven of my I I can barely say brand new anymore because it's not really brand new, but of my small account challenge of trading in a $2,000 cash account using Weeble. Today's day seven, and I've now taken a total of seven trades, 100% accuracy continues. But today was a small green day. Uh I think it was my second smallest green day, but you know what? Even though I kind of feel like it was a dud, you know, I showed up, I stepped up to the plate and I didn't get really much out of it.

Technically, it's a base hit. Another green day and that means a little more buying power in my account for tomorrow. So hopefully one of these days, you know, I swing and it connects and I can actually get a really nice trade like I did on day one. Day one of the small account challenge so far has been the best day. And yeah, I'll get another day like that at some point. But in the meantime, all of these base hits, they're definitely adding up.

And you know what? This is sort of the challenge when it comes to trading is deciding, am I going to focus on small base hits with high accuracy or am I going to try to hit a home run? Now, sometimes when you try to hit a home run, it means in the case of day trading that when you have that small base hit, you know, you you you kind of don't take it off the table. It's like if we're going to stay with a baseball analogy, you start to make a run for second.

You're sacrificing just staying safe on first, but you make a run for second and a miracle happens. You get to second and then you go for third. Are you insane? This, you know, what are you doing? And now it was all for nothing. And that can happen. So, uh, we're going to jump into today's episode, but definitely a topic worth, um, getting into a little more detail on is that choice between being a trader who focuses on high accuracy, which almost invariably means your winners get smaller, or being a trader who focuses on bigger winners, which means your accuracy usually declines.

Right now, which one am I focusing on? Accuracy. Why? Higher self-confidence. It makes you feel better. small winners, still they're winners. You feel good. You sleep well at night. You know you're making progress. Life is good. So, today is day seven. And as always, let's check in with the progress of the fundraising. All of the profit from these small account challenges are getting donated to charity. And every time you guys hit the thumbs up in these episodes, you can add an extra dollar to how much I donate.

I'm doing a dollar for-dollar match. So, all of my profits and then you can help me double that by hitting the thumbs up. So, thank you guys so much. We are now at over $189,000 raised for charity. I've already uh donated and written checks for $185,000, which means right now I'm sitting with a total amount due of about $4,400. So, if you have any suggestions of nonprofits that you think would be um good candidates, please feel free to put them in the comments.

I have been looking at those as I make the decision of uh where to donate this money. Okay, so now today is day seven. I'm up $456. I know it's a tough break. Um, now I I should say that I shouldn't complain too much because I I I also happen to be up uh quite nicely in my main account today. In fact, just shy of $40,000. So, you know, life is definitely good. But in the small account, um you know, the stock that I end up choosing was a little bit of a dud.

And this is tricky because the stock I made the most money on in my big account, I didn't feel I should trade in the small account because that stock was a little too expensive. I didn't think I could buy enough shares. I wasn't totally sure it was even going to work. So that first trade was a little higher risk, but then when it did work, then I started to size up and then next thing you know, it's, you know, a big winner.

And I thought, oh, should I break the ice on it now in the small account? And I just I I didn't. So, as of uh today, I'm up $1,570.34 in the small account challenge. Balance was $2,000 to begin. We're now at 3500 and accuracy is 78%. So, this is my growth since day one. 78% which is great. Um, seven trades, 100% accuracy. Average winners about $224 as you can see right here. Today's progress, not a lot, but like I said, all of these days count.

So ADTX hits our scanners. This is the stock I traded. And when it hits the scanner right here, the first thing I notice is that the float is very low. Now, WHLR is the stock that I traded this morning in my main account where I did very well. Now, I will have a separate recap um for that account. Actually, I I'll probably upload the main account first and then the small account second. So, you may have already seen it.

And in any case, um if you haven't, you can go back and watch it. But WHLR, this was very interesting. Um, and this stock actually I first noticed on our lowflat top gainers scanner right down here when it was at $3.70 and I mentioned it. I said, "Oh, I just noticed this stock popped up on our scanners." And I said, "You know, we've traded uh this one before. It's a real estate investment trust, which means it's a REIT." And real estate investment trusts don't usually make huge moves.

They're basically a publicly traded company that buys real estate and then pays out a dividend which is the uh the cash flow from that real estate prop from those properties. And so when they sell their shares on the open market, those all the money they raise goes towards buying more real estate. But you know, obviously real estate can be good, but commercial real estate has struggled quite a bit since the pandemic.

And in any case, this is one of these companies where they have a pretty well-established history on the daily chart that they've just been going deeper and deeper down. So, they've done a number of reverse splits as you can see. The float is incredibly low. And, you know, it's just yeah, it's it's not been a super easy stock um in the past. So, when I saw that it was on the scanners, I thought, okay, interesting. Um, and then what I ended up doing was I checked the um, the short interest on it.

And when I checked the short interest, I noticed that the short interest on WHLR, uh, Wheeler U, real estate investment trust, um, was a staggering 108% of the float. And I was like, that is incredibly high. So, it ends up going um very quickly from about 350 um here up to 460. It dips down and it rips up to five and up to six. And I didn't buy it down here or down here when I was first looking at it, but I ended up getting in kind of in the middle at about five, getting profit as it went up to six.

And then I got another trade on it um in this area as it curled back up. So, and this was actually my bigger trade of the two. there was more volume at that point. I was able to take bigger size. So anyway, so that was my trade on WHLR and I thought uh high short interest, you know, that's also what gave us this unbelievable move, by the way, on SMX. I'm not kidding. This stock hit a high today of $435 a share. Unbelievable.

It was less than a week ago that this stock was down at $4. So, I mean, this is this is absolutely insane. It was up a,000% when it hit 40. It hit 10,000% return here in a in a week. How does that even happen? Well, that one also had a very well-established history of selling off with reverse splits and very high short interest and shorts got squeezed big time. So, when I saw ADTX hit my scan, the first thing I pulled up was the short interest.

And I noticed it was 67% which is still quite high. And so based on that, I was like, "All right, I think I should pay attention to this." So it popped up here. It dipped down. And now I want to show you something. This is kind of interesting. Um I uh I ended up fumbling on this one today. So I've got my account right here. This is actually the live archive. Um and I type in the symbol ADTX. So I type it in right there.

And then after I've typed it in, I click on it. It pulls it up. I pull up the chart. Right. So, I was I'd already kind of looked at it on one of my side charts and I press shift one and it says insufficient buying power. Now, that's confusing to me because my hot key for shift one and as [clears throat] you can see here was 938 shares. It shows that I could afford u right here on the buy button 879. So, I don't know exactly, you know, where it came up with 938, but the hot key that I was using, and I've I've since changed it.

Um, you go to hotkeys, you go to settings, uh, trade right here, and then all settings. I had started using a hotkey here to use 98% of my buying power. And I thought, okay, so that's going to basically do the math of my buying power times 0.98, and it's going to buy that number of shares. But this is the second time that it's uh calculated that incorrectly. So I don't know why that is. Um but instead I'm just going to have to change this manually each day to buying based on the amount of actual cash.

So I could use 3570, but I'm just going to leave it at 3550. I'll give myself 20 bucks of wiggle room. So that was kind of a bummer because if you see on the video, I pressed it right here. Um, and at that moment, um, let's see. So, ADTX. So, let's just play this for a second. Oh, you know what happened? So, I see what happened. Um, I'm going to back this up again. So, so let's look at this. So, this is actually interesting.

So, I type in ADTX once. I type in a second time, and you have to click it. I wish you could just type and enter cuz that's what I'm accustomed to doing. But I type it in a second time. I click and it shows 291 right here. So I press shift one and it must have been executing based on that price. No, actually it would it wouldn't have been doing that because that would have been more than a,000 shares because I've got $3,500 in here.

So, I actually don't know where that where I don't know what number it was pulling. I really don't. I I couldn't I I just don't know. Um, but in any case, I cancel the order. So, if we back that up, where was I trying to get filled out? Maybe it didn't even make a difference, but it's worth noting. So, we're at um 5758 right now. So, I type in 80x. I press shift one, and it looks like that was like around 78 or 81. And then I press it, and it fails again.

And we actually hit 409 here. And then I then I ended up getting filled it looks like as it dipped back down at 78. So this was very this was this was really kind of a sloppy trade unfortunately. Look, I mean this is this is the reality. Sometimes even with even with all of your experience trading, you sometimes will fumble your hot keys. And I I maybe I fumbled it a little bit today. I'm not really sure exactly what happened there, but I think I'm going to air on the side of caution and um I'm just going to switch to using the the actual um amount of buying power that I have.

So, next time I can get in because that went from about 378 all the way to 409 and I could have been in and out of that on 800 shares for 240 bucks. But instead, I ended up getting filled as it came back down and then it and then so that's where I got filled. So if we actually look at this, where I tried to buy was right here and it went to 409 and it could have actually gotten in and out for 200 bucks in a in a moment, but then it dropped it back down here and I got filled on the red candle and then it popped back up.

Well, thank goodness. And I got out on the green candle, but only for $45 of profit. So, you know, I I don't know what to say. It's just it's the way it goes and you live and you learn. And this is also one of the reasons why it is really important when you're trading in use using a new platform or potentially using a different broker. You know, you could many brokers offer multiple platforms. So, you could switch platforms and be with the same broker or maybe you're doing an entire broker switch.

But it's a good idea to kind of, you know, put the platform through its paces a little bit with small size because hey, I don't care that it happened today. It's a good lesson. it happened with small size. I've got a solution for how I can avoid it happening again. And so, we're good to go. Right? If that happened with 10,000 shares, I might not feel the same way. I might be more more frustrated. So, it keeps emotions lower when you go through these sort of bumps with the smaller size.

Now, at the beginning of this episode, I was talking about this sort of relationship between two traders. And I'm going to give you kind of the um so I have I actually have and you might not know this. Um I have two alter egos. Um one is named um Randy right here. Um Randy, this is going to be a picture of Randy. This is his face right here. And Randy is a nervous fella. And then this right here, you know this fella, this is Rambo.

And Rambo is really aggressive. Uh Rambo is a maniac. And I actually have, let me grab it here. Um so I actually got a um the Rambo. This is from Sylvester Stallone. Um it's actually real. This is the real Rambo bandana. Now you don't see me wearing it very much. I for what it's worth, I started wearing this before, you know, Roaring Kitty was wearing his. Um, but then I didn't, you know, I'm not trying. I, some people were like, you know, D, so I stopped wearing it.

But my Rambo bandanna here, um, you know, this this came out a lot during, um, 2020 during the pandemic, and I had a lot of days where, um, I was just crushing it. You know, the biggest day of my career, nearly half a million dollars. I was taking huge size. The market was unbelievable. And so, you know what's interesting though is if we look at that year, if we if we actually take a a little bit of a deep dive and we look at that year, let's look at 2021.

So, in 2021, I made um a bit under 5 million. I think it was about four 4 million something foreign and change. And so, I'm going to pull this up here. We're going to do a report for 2021. And what I want to show you is let's see um I want to compare. Well, first we'll just do high level. Um, so we'll just do detailed. So I'm going to do uh last year and then we'll just change it to 2021. So we're going to talk about the difference between the trader who focuses on home runs and the trader who focuses on base hits.

So 2021 $4.3 million of profit. Okay. Um this year, as you know, I'm at um I'm actually at about um 6.2 million. So this year has been better. So, we're going to compare all of my winners and all of my losers. So, first we're just going to do year-to date right here. So, this year has been uh Randy Ry's been the the in the driver's seat this year. Um you know, last year was a good year. Um but, you know, I've I just I just felt like more conservative.

I didn't want to, you know, mess up. I was really grateful the market was so hot. So, this year I have $8.2 $2 million in winners and $1.9 million in losers. So, it gives me a total of six. So, my profit ratio here essentially, I mean, you can kind of look at it like this, um, currently is um, is 4:1, right? I've got a really nice profit to loss ratio when you average it sort of over the whole year. And that's been focusing on, you could say, you could argue base hits.

And so, what have my average winners been? My average winners have been well you might say only $3,500 and I'm not saying that's not bad but you know 3500 is you know average winners average losers has been um $2,000 and so you know even here you can see the trade trade basis you know nice ratio and it's been 18 cent average winners and 15 cent average losers share size um obviously bigger on the winners because I do have a strategy where I take starter size and then scale up as I'm u making more money.

So now let's look at uh 2021 as a point of comparison. This was a year where you know we had the GameStop short squeeze. Uh I was being super aggressive. The market was unbelievably hot. And so here I actually had $9.6 million in winners. Wow, that's awesome. Although you can see my average winners were actually $2,300. Now on the losing side, uh-oh, I had $5.6 6 million in losers. So now that paints a very different picture.

My average losers were actually 2600. My average winners were 18 cents a share, the exact same as they are right now, but the the losses were 26 cents a share. So they were significantly bigger. So now so we just sort of cut this board in half. So here we had um $2,300 winners plus 18 the exact same. And then minus 24 cents. No, sorry, it was 26 cents and this was $2,800. So what has happened between these two years?

So this is like um you know 1.5 uh kind of to one. So between these two years, I did have some some really big home run trades, but I was stepping up to the plate pretty much every day to try to hit, you know, a grand slam. And although I hit a few, I also had a lot of strikeouts. You know, people don't talk about how many times, you know, Babe Ruth would strike out. They talk about the home runs, but he would strike out a lot.

And so, I was striking out a lot. And when I was striking out with full size, the loss was big. And so, yes, I was having winners and that was fine, but what I was doing in in this period of time, what I was I was trading more or less with like a fairly fixed um share size. So, fixed share size on pretty much every every trade. So you could see here obviously my winners uh my losers there so average so it's like you know 11,000 shares approximately and here you know the winners were like 12,000 shares approximately whereas here you can see that the winners are closer to 20,000 shares and the losers are down here at more like or 13,000 approximately.

So in any case, h how did this transformation happen? And this transformation here was the result of making a a very affirmative decision that there was a type of P&L that I was sick of. And so 2021, you look at that year and even though, you know, I did pretty well, it was like this, you know, up until, you know, 4 million. And so in 2024 and even 2023 when the market cooled off quite a bit, I said, you know what, I want to kind of um, you know, bring this down a little bit.

I don't want to be on the roller coaster anymore. I want to smooth this out. So 2022, I was like, I can't keep doing these roller coasters. I need to kind of smooth things out. And so 2022, I slowed down a little bit and I focused like that. And 2023 actually was a little bit slower, but I didn't have the roller coaster. And then 2024 was a little bit hotter up here. And then all of a sudden 2025, you know, was really hot and I've come all the way up to here.

But I haven't had very many of these big dips. Now, I will say I had one blip in um beginning of October. So I did have one bigger blip which was a bigger draw down um and that was the result of I would say emotional hijack. I got stubborn. I got frustrated and you know I ended up um you know having a little setback but nonetheless this was an affirmative decision to be much more thoughtful in the way I was trading to focus on hitting base hits getting in getting green getting out and also taking starter positions.

And so if I take a starter position and it doesn't work then I just jump out of the trade and I'm out. If I take a starter position and it's working nicely and I've already got a profit cushion on the day, then I often will add to the position and I'll let it ride a little bit more, which is not exactly swinging for a home run because I'm not being reckless. I'm not being super aggressive right out of the gates. But once I've sort of got the all clear, I'm already green on the day.

I'm in the driver's seat. I say, "All right, let's see what this thing wants to do." And so today is a great example of that in in my main account. Um you'll see today that I'm green on um I guess it was three of the stocks I traded or two of them. Uh the one stock I'm red on I'm down a thousand bucks, you know, which is completely tolerable. And then the other ones I'm green on and I'm up almost 40,000 on the day. So you have a decision to make when it comes to trading.

Do you want to focus on having really high accuracy? In which case, your average winners will likely typically be a little smaller early on until you're able to scale up, you know, or do you want to be more of that kind of home run trader where you might lose, you know, three or four days out of the week, but then it's that one big day that gives you, you know, kind of the um, you know, that that makes up for it. So, it's a personal choice for me being a little bit more riskaverse and a little more nervous.

You know, Ry's like, "Listen, let's pump the brakes on this. I don't know. I don't want to I don't know. I'm not sure this is going to work. Go with smaller size to start. Let's really test it out." And you know, look, Randy doesn't get the notoriety, but um but but I think that's a part of my strategy that has actually really paid off and this year has really demonstrated that. So, I'm really proud of this year. This year is actually for me and this is again focusing on my big account, but the philosophy is the same um you know for the small account because the small account would grow and you know then I would be in a nice place to implement some of these uh scaling strategies.

This year is actually the best profit to loss ratio I've ever had of total gains and and losses. So you could argue I made less this year. I had less in total profit this year than I had in 2020. And yet my take-home is 50% higher because I was better at keeping the losses small. That is very interesting. And this is the philosophy of the small account growth strategy. Keep your losses small and lean into your winners.

So again, thank you guys who've been tuning in here for this small account challenge series on YouTube. I hope you do hit the the thumbs up because every dollar gets added to charity. Uh and you know, every thumbs up is a dollar, so it's it's for a good cause and we're learning about trading together. And if you found value in today's episode, then I hope you also consider subscribing to the channel. I'll put a link to my full length episode on the small account growth strategy here.

And I'll be back at it bright and early Monday morning. And if you haven't already checked out a two-eek trial at Warrior Trading, it's a great opportunity to come check it out. Two weeks, you can watch over my shoulder and you'll actually get access to the same software that I use in my trading every single day. I kind of call this my secret weapon and it is, but it's not really that secret because you guys all have access to the same tool that I use.

So, when you're doing your twoe trial, you'll get your own version of this. You can adjust the charts, the scanners, you can listen to my chat room, my vi audio video broadcast, and really immerse yourself in the community. So, thank you guys as always for tuning in and I'll see you for the next upload real soon. And I'll remind you, trading is risky. My results aren't typical. So, please manage your risk and always practice as a simulator before putting real money on the line.