I Made One Trade and Doubled My Small Account transcript

What's up everyone? Welcome to day two of my brand new small account challenge. Today my account is up 118%. Guys, this really isn't that complicated. If you want to double your account, how do you do it? You don't wear just one lucky sweatshirt, you wear two. I doubled my account yesterday. I doubled it again today. The account is now up 550% in 2 days. Holy smokes. I started with just under $2,000 in the account yesterday, day one, today.

End of day equity will be about $11,000. That's what I'll have going into tomorrow. Holy moly, this is amazing. So, we are raising some money here. We're going to be donating that profit, everything I make to charity and you guys are helping because every time you hit the thumbs up or subscribe to the channel, it adds an extra dollar to how much we're donating. So, we've got a lot to cover today. I'm going to break down the trade.

It comes straight out of my master class that I taught just at the end of last week. I'm going to walk you through the stock I picked, how it met all five pillars of stock selection, my entry and my exit today. Kept it simple. I only took one trade. All right, let's jump onto the screen share and start breaking it down. So today up 118%. That's the P&L 5,6,962.75 on FLD. This stock had breaking news. So, account growth as of the end of day two, as you know, started with $1,995 in the account.

Today's starting balance was 5,000 bucks. I'm up 5,900. The new balance is $11,000. Now, this is before commissions. So, yesterday's uh today's starting balance reflects yesterday's profit minus commissions. This amount does not uh subtract commissions yet. I won't know the commission until I log in tomorrow. So, the account's currently up 552%. But, as you guys know, I have a goal of raising as much money as I can for charity.

So, that means I'm doing a couple things. Number one, I'm trading using leverage and margin, which is risky. I'm an experienced trader. So, remember, my results are not typical. But here's the update. We are now at $28,978.79 going to charity. And you guys are helping lead the way right now. This is incredible. I'm I'm trying to play catch-up here. So, when I uploaded my master class, I told you guys that for everyone that hit the thumbs up and subscribed to to videos and episodes during this series, you would be donating an extra dollar that I'll pay on your behalf for this uh fundraiser.

So, a donation to charity. So, you guys right now are already up to just under $20,000 and I'm at about $8,000. Yesterday, I made $3,000. Today I'm up just under well 6,000. So yeah, coming up to close to $9,000 for me right here. Okay, so that's a combined of about 28,000 and I've got a little bit of uh catchup to do. So do you think I'm going to be able to do it? Am I going to be able to beat you guys? Well, you're setting the bar pretty high and I appreciate you doing it because this is all for um a good cause.

Okay, so let's take a step back for a moment. Uh, and let me remind you for just one second that for me, the key to long-term success in the market is all about confidence. Confidence plays an incredible role. Now, you look at me walking down the street and you're like, "This is a man with a lot of confidence. Look at that shirt. It's unbelievable. I mean, I have to put on glasses. I can hardly hardly see with that blinding color." So, yes, I've got confidence.

Where has it come from? It comes from a track record. I funded my first account in 2001. That's more nearly 25 years ago. So, I've been in the market for a really long time. So, my confidence isn't just Now, some people can be confident, but they don't know what they're doing. So, that's a dangerous type of confidence. I'm confident, but it comes from a place of, well, I have a long track record. I know what I'm doing.

So the first step in building that self-confidence in yourself is to focus on the highest quality setups and the highest quality stocks. In my case, stocks because I'm trading stocks. But if you're trading forex or futures or whatever it is, the highest quality instrument. When you focus on high quality, trade the best, leave the rest, your accuracy improves invariably. it gets better because you're eliminating some of those just really garbage setups that you were chasing, getting emotional on.

So, a quality leads to higher accuracy. Higher accuracy leads to a higher profit to loss ratio. So, the profit to loss ratio are your average winners versus average losers. So, let's just say your average winners are $200 and your average losers are $400. That's going to be a problem. You would actually have to be right 66% of the time just to break even. That's not going to work. What if we flip it the other way? What if your average winners are 400 and your average losers are only 200?

Well, then in that case, you only need to be right 33% of the time in order to break even. And what you've essentially done is you set the bar really low because even if you're wrong half the time, your accuracy is 50%. You would still make money with this profit to loss ratio. So when I think about trading, I really think about it in terms of uh core components. You've got your accuracy, you've got your profit loss ratio, and then you've got your uh essentially like track record, your long-term um consistency.

So we start with accuracy. focus on trade the best, leave the rest. By doing that, your profit loss ratio will improve because you've increased the number of winners. You've reduced the number of losers. And some of those losers that you've cut out because you've gotten a little pickier would have significantly drawn down your average losses. So, yes, you will still have losers. Every trader does, including me. However, by focusing on higher quality setups and especially stocks that are liquid, it's easier to get out and just cut the loss very quickly. just be like, "All right, it didn't work.

I'm out." So, abandon ship, bail out, take a loss. Okay. So, then profit loss ratio improves. So, now accuracyy's gone up. Profit loss ratios improved. And this is what feeds a positive track record. So, then what does that do? Does that feed improved accuracy? Not necessarily. I mean, it improves your confidence a little bit. It does something else, but that something that's very important that track record. That's your consist.

That's your track record of profitability, your consistency. It does improve your self-confidence. And when you've got higher levels of self-confidence, you're going to increase your position sizes. You're going to feel comfortable taking more risk and taking more trades in total, which means you're going to be making more money. This is a positive feedback loop. This is where I want to see you guys get to in your trading.

So, how do we get on a positive feedback loop? It all starts with accuracy. And sadly, and I hate to say it, but what happens for a lot of beginner traders? A lot of beginner traders begin with a negative feedback loop. So, what does the negative feedback loop look like? Your first trade is a loser. You lose money. And how do you feel? Sad, right? Maybe there's a tear. You're sad. You're bummed out. You're frustrated.

Maybe you're angry. You're really annoyed. You feel like you're just going to explode. And the best way to make this, you want this feeling to go away. This feeling is bad. We want to eliminate it. So, how do we eliminate this bad feeling? We've got to make back the money that we lost. So, how do you make back the money you lost? Well, to take more trades. But wait a second. Now, you're trading from a place of emotion.

You're trading from a place of desperation. So, what's going to happen? Most likely, you're going to lose more money. you're going to get even more angry, upset, and this is that negative feedback loop. This is a downward spiral. This is where a trader blows up their account in one day. I've seen it happen. And in fact, I've had spirals myself where I've gotten on emotional an emotional tilt. I've become emotionally compromised and next thing you know, I'm just It's unbelievable how quickly you can lose money.

So, this is the reality of trading. It all begins with that positive uh that track record. That's that that's your source of data. That's your source of truth, that what you're doing works. And as I always say, you should never put real money in the market until you first develop this track record in a simulator. That's what the simulator is for. So, if you can't make money in a sim, you've got no business putting real money on the line.

So, let me remind you guys, those of you who want to watch over my shoulder during this trial, during this challenge, you can do a two-eek trial here at Warrior Trading. It's two weeks for 20 bucks. As part of this challenge, I am documenting my entire process, including giving you guys PDF resources. So, there is a link in the description and pinned at the top comment of this episode where you can download all of those PDF resources.

They include my small account worksheet and my small account trading plan. And then you can also do a two-eek trial where you can watch over my shoulder as I'm growing this account in real time. Okay, so let's get into it. I'm gonna jump out of this slide deck. I'm going to hide that and we're going to take a look at my trades from today. So, I sat down this morning. This is a view of the market at about 7 a.m. All right.

So, it's actually uh 6:57 a.m. to be exact. 657. I sit down. I'm looking at the market and our leading gainer is SLE. SLE. Now, this is an interesting stock. In fact, it's actually moving a little bit higher right now. So, this is our real our real-time view of the market uh in this window. So, SLE is currently up uh 227%. But, as you can see, at 7 a.m. it was below the volume weighted average price and it was selling off.

This is a stock that began moving after hours. It went from like $3 to 10 bucks. Just a fantastic squeeze. I love seeing that. U but obviously it pulled back a little bit, squeezed higher, pulled back a little bit, and then at 4 a.m. it popped up to 14 and then has been selling off. So, I think you could argue that this was the front of the trend and now we're on the back side. Now, the back side of a trend as it's stairstepping down, we'll still have bounces as you can see, but that's about all they are, right?

So, the trend is still going out. So, this is not really my favorite setup. Now, if it got back to the highs and held that level, maybe I could work with it. But in any case, uh when I sat down at 7 a.m., so this is back to 7 a.m. Uh SLE was the leading gainer, but um even though it had news and everything else, I wasn't able to trade it. It just it wasn't going to work for me. It was not set up uh well, this was IPDN, but uh SLE was just not set up well.

It was below the volume weight average price. So I'm sitting down. I'm looking at the scans. We had SLE, we had SSKN, we had IPDN. IPDN as you can see on the chart here also was below the volume weight average price moved after hours and then now is kind of on the back side coming back down. So I said nope I don't want to trade the back side of this move. I'd really rather focus on trading the front side. So I've got my platform here.

You can see the starting day equity $5,51.97. That's yesterday's profit minus the commission which gives me buying power of $30,000. Yes, I have six times leverage and I can day trade with as little as $2,000. This is an international broker dealer. All US broker dealers are required to enforce the $25,000 PDT minimum. There is a proposal for that minimum to be changed to $2,000. And so, the reason I started with $2,000 was to kind of test out and show what it would look like to day trade with 2,000 bucks.

Now, it's possible in a few months that that rule will change. it'll take effect and you could do an account I could do a small account challenge here in the US with $2,000. But in the meantime, I'm using an international broker. Okay. So, at this point, I'm sitting tight and I'm being patient. I don't see anything that I like for 7 a.m. So, what do I do at 7 a.m.? I'm watching the top of the hour to see if there's any breaking news.

So, here we have 659 659 and 54 seconds. 55 56 57 58 59 7 a.m. Boom. So now we're sitting here at 7 a.m. All right. So at 7 a.m. I'm watching to see if anything pops up. Sadly, nothing does. We end up having GLTO that starts to squeeze. I observe that GLTO is below its 200 moving average, which is here right around 484. It comes into this level as sort of a resistance point. It also has no news. It's an international company, but Denmark, it's not Hong Kong, it's not Chinese.

Denmark not known for having, you know, shady companies listed on the exchange, but nonetheless, it's it's just not holding up well. So, um, and it's easy to borrow. So, it ends up popping a little bit higher here, but I say, you know, I just don't think I can chase it. So, I end up skipping on it. I say, I'm just going to leave that one alone. So, then we're going to fast forward a little bit further. Now we're sitting at 7:05.

So we'll jump forward a little bit more. Looking at the hot keys there. So now we're coming to 7:30, bottom of the hour. So 7:30, I'm watching to see if we're going to have any breaking news. And at 7:30, bottom of the hour, we really don't have anything that looks that great. We had SNGX that popped up. I pull that one up and I observe that it's um a biotech company and it's below the 200 moving average. I type in the level two.

I look at it, I'm thinking about it. Uh, I decide not to take the trade on it. I just don't feel like it's quite strong enough and it needs to break and hold over three. So, no trades on that one. And then that was the only headline at the bottom of the hour. So, now I'm waiting for 8 a.m. So, 8 a.m. comes up. In the meantime, we had DXF, uh, DXF that popped up on the scanners, Chinese company with no news. We had SLNH that was on the scanners. 21 million share float.

Kind of a grinder, but I just didn't think that that was going to work super well. Left that one alone. Shared the link for members to check out the hotkeys and download my layouts. Those are for Warrior Pro members. Soar pops up. This is a a transportation sector company, you know, some charter jet something or other. It doesn't seem like the type of sector that's going to um go very far, no pun intended, or fly high.

Definitely no pun intended. So, that was a no-go. All right. So, then all of a sudden, we have uh 8 a.m. um FLD hits my scanner. So, you can see right here 8:03 LD hits my scanner. Hits the scanner and I observe that it's got the flame, which means it's got news. It's got a 13 million share float, which is a little higher than I'd like. So, I'm like, "All right, well, let's see." I click on it. I pull it up and I see Stripe and Visa to Power Fold's new Bitcoin rewards credit card.

And I'm like, "Okay, a Bitcoin rewards credit card." This is definitely on sort of theme for what's been working. It's not a private placement, which is the headline I'd really like, but crypto has been a really strong catalyst for a lot of small cap companies. So, I'm pulling it up. I'm watching it. It goes all of a sudden to five. I'm like, "Oh my gosh, here we go." So, I type in the level two. I have to delete it.

I sort of typo there. So, I type it in. I look at it. I I adjust the chart. When I adjust the chart, I see that it's blue sky over 14 right here. So, now I'm like, "Okay, this looks really interesting." It pops up to six. I have my order entered for 4600 shares. That's using 90% of my buying power approximately. So, all I have to do is press the enter button, and I'm waiting for a dip. So, right here, I'm waiting for the dip.

It dips down for just a moment right here. Dips down and I punch it. I press the buy button right there and I fill. You can see the fill is sort of incremental. I fill its first like what was it like a 100 shares and then like a little bit more and a little bit more. So, so I sent the order. So, I'm filling right there 232 shares and then I filled 361 and then I've got 1,100. I I don't really know why that's the case.

Um, that feels like a little bit of a slow execution. And then all of a sudden, I've got the whole order filled. So, I'm in at 568. This is now what a micro pullback. This is straight out of the master class I taught uh just last week. I'll put a link at the end of today's episode where you can rewatch that class. All right. So, this is a micro pullback right there. So, now I'm in and I'm looking for this candle to pop up through the high.

That's the back of my target. Okay. So, now we're in and I'm looking for that squeeze higher. We're up 60% on the day. Now we're at 65. We're at 70. We're at 71, 72, 79. Now that we're at 690. Okay. So now the question is, will this break 7? 86. It kind of stalls here. You see there's a little bit of red on the tape. The time in sales. So now I'm watching and I'm wanting to hold. I'm wanting to see a break. But here, look at this tight spread.

Sometimes when you get a tight spread, it can mean that the trend is beginning to change. So, if I show you here, if this starts squeezing up really quickly, you'll have bigger spreads. And then the candles start getting a little smaller, a little smaller, a little smaller, a little smaller, and the spreads are getting tighter. And what's about to happen is a drop. And then you can get big spreads while it's dropping.

And then the the slowdown, you know, sort of slows down a little bit and the spreads start to get tighter. And then all of a sudden, you start to reverse and move back up. And then the spreads can open up again. So, we have these periods where stocks are either in um sort of a consolidation range or they're in, you know, a breakout or a breakdown range. So, when we're in consolidation, the spreads can often tighten. So, for me, tightening spreads on a stock that's pulling back can be a great indicator that it's time to get in.

Tightening spreads on a stock that's near the high, that can be an indicator that we're about to roll over. So, now I'm getting a little nervous. So, I'm seeing 97 on the ask and then it dips down for a second. There's some selling at 92. So, there's a little bit more selling. So, I decide to take it off the table. I I'm worried that it's not going to be able to break seven. So, we see 7 96. There's some sellers there.

So, it's like it just cannot quite break through that level. So, this ended up being a trade of one entry, one exit, $5,962.75. Now, this, you know, this is a setup that was not as strong as a PLI or sorry, a PPI. This was not a private place uh private now PP a private placement. Um Oh, see, I've got myself all turned around. We've had these private I guess just private placement. We've had these private placements into um these a lot of these small cap stocks where you know all of a sudden you get a $550 million private placement.

So let's see um CWD go back to this one. So CWD we go back a little ways. So what was the day we got that private placement? There it is. So oh that was a different one. Let's see. There was another one that we had. Um, what was the other one that was a big one? AGRI. This was pretty nice. AGRI was from just um uh just yesterday. So, AGRI right here. So, this had this $550 million capital raise. So, that's a big one.

So, in any case, um I'm looking for these private placements. That's the headline where a institution gives a company a huge amount of money and with that money they're directed to buy cryptocurrency and now that company essentially becomes a vehicle for that cryptocurrency. So this wasn't as strong as that but at the same time you know it wasn't it wasn't bad. Uh and I thought it had some good potential. So it ends up dipping down.

We've got a topping tail here right at the $7 mark. it dips down and then it ends up bouncing back up. So, we go through this period of consolidation and during this period, I'm kind of watching and asking myself, is there going to be another opportunity on this? Now, on the one minute, you can see that we've got a topping tail candle right here. I don't love topping tail candles, but you can see on the 10-second, we're sort of consolidating in this range.

So, we go sideways a little while longer. Right here, we're on a pullback. And then, right, let's see. right there. We dip back down and then we have that bottoming tail candle right there and we kind of pop back up. The net result is that through this period and there's a little false breakout there. We're more or less going sideways. So, you know, it's it's holding its level, but it's not rallying back through seven.

So, then this was the spot where I really wanted to see if we were going to be able to break back over 650 and squeeze back up to seven, and it wasn't able to do it. So then, you know, at a certain point, I'm like, "All right, well, it seems like it's not happening." This is our FLD chart, which note it had rallied a couple days ago and then sold off. All right, so you know, kind of right back to that resistance level there at 7, which was a fine trade, but obviously didn't hold up as well as I would have liked.

So now at this point, I'm waiting to see will we get anything else at 8:30. So, now coming to 8:30, bottom of the hour, another 30 minutes go by and we've got a couple stocks that pop up. APDN, there's a couple others, but nothing that I felt really excited about. So, didn't take any trades there at the bottom of the hour. IBG pops up. It's lower priced. It hardly gave a pullback. Ends up squeezing up 238%. That didn't give me a setup.

And so as we went closer to the open, next thing you know, I'm like, "All right, let's see if we get any news at 9:00 a.m." And 9:00 a.m. top of the hour, there was nothing. And so with that, I said, "All right, I think that's going to be it for me." So I locked it up. Up 118% today, up 550% in the last 2 days. The account is growing. We've now uh we're up to what was it? $28,000 for charity. I think that's fantastic.

And you guys can help increase that number by hitting the thumbs up, subscribing to the channel, and hey, if you want to watch me trading live, check out that two-eek trial. Two weeks for 20 bucks. You're going to get a ton of value out of it, especially right now as I'm doing this small account challenge. So, I'll remind you, as always, hey, my results aren't typical. Trading is risky. Easy come, easy go. I've been doing this for a long time.

So, what I want to encourage you to do if you're a beginner trader is to practice these new strategies in a simulator before you ever put real money on the line. Manage your risk, take it slow, and I'm looking forward to seeing you guys back at it bright and early tomorrow morning.