Day 6 of My New Small Account Challenge | Recap by Ross Cameron transcript

[Music] what's up everyone all right so today is day six of the small account challenge and i'm continuing to make some good progress which is great i want to break down for you a couple things during this recap i'm going to talk about the challenge that i'm having right now with restricting myself to one trade a day it is so hard for me because i see more opportunities and i want i have this urge probably as anyone would have to grow the small account especially when we have days where it's really slow i feel like man i should have traded more on the day where it was hot i left so much on the table and on the other hand it's so important for discipline to take one trade a day because most beginner traders lose money most beginner traders with a small account are probably going to blow up that account so if you could take just one trade a day you can reduce the emotional kind of impulses the the emotional traps in the market with with fomo with fear with greed with revenge trading and everything else you know if you're only taking one trade a day you're not going to be in a scenario where you made 500 and then on trade two you lost it all because those types of events can trigger that emotional response where you start revenge training to make it back so one trait a day is the small account way it is slow and that's part of the deal when you have a small account you have to take it slow so you know here we are i'm on day six i started the account with four thousand three hundred and thirteen dollars uh i'm up right now this morning at 5 827 so i'm up like you know 1500 bucks not including today that's in the last five days but that is a 300 per day average which is phenomenal it just so happens that today was only 132 and yesterday was only about 100. so the last two days have been a little slower but you know that's the ebb and the flow of the market and that's been partly because the stocks that well it's been a little slower last couple days and the stocks i've traded have been a little higher price have to trade with smaller share size and um that's a little bit of a challenge although actually yesterday i did it uh have a trade with um a thousand shares on a lower price stock so it's just in any case it's just the ebb and flow so um the second thing that i just wanted to um give you guys is a link down below to download a pdf of my small account pre-trading checklist eight items are on the checklist things that you need to do check off yes or no before you start trading a small account and nine of my favorite chart patterns so those are chart patterns that i encourage you to print out and put around your trading station so you can see them and have that positive reinforcement that these are the type of patterns i should be focusing on good quality a quality patterns now i know that at some point here i'm gonna have a red day right i've had six green days in a row in a small account i'm gonna have a red day at some point however because i'm taking just one trade a day if the trade goes red i'm gonna cut it that's it i'll be red and that's it is what it is i got to be ruthless and cut that loss as quickly as possible that's number one but number two because i'm only taking one trade a day my quality standard is pretty high that's probably why my accuracy has been higher but it also means that if i end up having a loser it's going to be a loser on a stock that was a really good quality setup and i think that will increase the likelihood that it'll be a small loss or maybe even like negligible break even maybe i'm up only 16 or i'm down 16 or something like that that's it's not a big deal at all now once you start lowering the quality threshold so you can take more trades and get more aggressive you start taking on more risk and that's often where things can start to go off the rails and then very quickly can lead into that emotionally impulsive trading so as a reminder in case you didn't already know trading is risky take it slow don't try to blindly follow me or anyone else trade in a simulator test yourself practices simulator that's your first proof of concept because if you can't make money in a simulator you've got no business trading real money so train a simulator first build up your track record and then consider flipping the switch to real money but with small size trade with small size once you've proven a track record there then you start increasing that's the right way to get started unfortunately probably 99 percent of people do the exact opposite they jump into real money right away big money they start losing they get angry they get frustrated it just compounds it gets worse and then they become a statistic of another failed trader don't let that be you all right hopefully you can learn from some of the mistakes that i made when i was getting started so uh with that i hope you guys enjoy the recap make sure you download the small account pre-trading checklist along with the charts those are part of that same pdf i hope you enjoy it and i will see you guys uh first thing tomorrow morning for day seven of the small count challenge all right hit that thumbs up i hope you already have but if you haven't hit the thumbs up please subscribe to the channel i'll see you guys tomorrow [Music] okay so today is day six of the small account challenge one trade one entry one exit i m n m so my trade on this um was uh 250 shares in at 22.97 out at 23.50 for 132.50 i sort of struggled to find something appropriate for the small account today i don't didn't really want to be trading a 22 23 stock but uh it was the one that made the most sense at the time so um i'll just move this right here so imnm was actually our leading gapper this morning gapping up 45 with a news catalyst that um they're um this medication they're working on neutralizes the cova delta variant in pre-clinical testing okay so this is a catalyst that i thought would be strong given the fact that the delta variant has been part of what led to the biggest red day in the market um since like october so in months over six months okay so i am nm um my bias on it was to the long side and the question was where's a good entry so as i was watching it in this area here i actually took my first trade on it um right around here the break of 23 23 30. uh that was in my big account that was earlier so i traded it first my big account and that was a risky trade not really suitable for the small account i just kind of jumped in as it was squeezing up here and we got this nice move up to 24. so then i was thinking okay well maybe i can take a small account trade on it sort of right in this area here on this pullback so it pulls back and if i sort of move this make this a little bit bigger i was thinking about taking an entry right here and i say you know what i don't think i could do it it's it's too extended on the five-minute chart and it already kind of had its first pullback on this red candle here so i liked the idea of it and i couldn't do it in the small account um it ended up going up to 24.37 so it did give about 50 cents from the bottom there up to the top went without me and then it started pulling back here and i watched it right here off 23. and i was tempted to take that trade right there you know why because the previous breakout was 2294 right here so i thought okay look it's coming back to that level of 2294 if it holds that level and bounces off it excuse me then um that could be a great setup so oftentimes previous resistance becomes support and in fact it did bounce off 20 2293 and it popped here up almost 50 cents up to 23.57 so that one went without me and i thought oh man okay again so now i've had two chances at it for the small account and i passed on both of them it then dips down again so um let's see it pops up here first to 24 and um then it comes all the way back down right here and this right here was where i got in at 2297. so i said you know what it's coming down to this level again i missed it once i'm not going to miss it a second time so punched along there 250 shares which is the most i could afford so my account right now has 5827.92 so this is the progress that i've made uh over these last six days my start my first day i started with uh it was around four thousand three hundred dollars i think on day one let me just confirm i i don't remember um to the penny but i i can i can get it for you here so let's see so day one last week um what was that how much was i in um [Music] oh now i can't remember if i do have it um [Music] so okay sorry so uh 413 dollars four four four thousand three hundred thirteen dollars and six cents so 43 1306 so now i'm just curious um what i'm what i'm at so uh five thousand eight hundred twenty seven dollars and ninety two cents minus forty three thirteen o six is uh one thousand five hundred fourteen dollars and eighty six cents divided by five is an average of three hundred dollars a day so that's been my average over the last five days well today i'm only up 132 so obviously my average is going to come down a little bit after including today's profit but that's fine so in any case um so i got off on a little bit of a tangent there but i bought 250 shares which was the most i could afford because i'm trading with my cash balance i'm not using leverage in this account so i took the dip right there and it popped up here um and i held through this little dip it came back up to 2366 but it was not able to break through that 66 level which was a double top and resistance so unfortunately that was uh that was it and then it sold off and really kind of um pulled back a bit more then got back above the v web and then sold off at the open so here's the thing um so i'm on day six here i've had six green days in a row but today for instance uh the other stock i was watching was nrbo i was watching it pre-market i was watching it on this micro pullback right here at about uh 407 and i said all right well how many shares of this can i buy and of that one i was able to buy closer to 1200 shares so if i could make just 10 cents a share i'd be up 120 bucks and i was tempted to take that trade and i didn't take it so i didn't take that trade it goes up from 408 up to 420. so 12 cents a share you know that would have been 10 cents 120 and then i was watching it kind of again in here and it pops up a bit more up to and then i was watching it again right here over 28 we got to move up to 37 and then there's a little false breakout right here and then at the open we got this squeeze uh right here from 420 up to 430 and the break of the pre-market high 428 gave you gave us a nice move there up to 450. so all that's to say i saw a few other opportunities today that i was tempted to trade uh some of them i i didn't take just because i was hesitating and then after i'd taken my one trade on imn i said well i've already taken my one trade you know i one trade a day it's a small account way and that's true but for how long is that the small account way until your account's not small anymore until your account is big enough that you could afford to trade a little bit more actively and start taking a little bit more risk so at 5 800 my account is still pretty small it probably makes sense for the first 10 days of this challenge at least to do one trade a day and then maybe from day you know 11 through day 20 two trades a day maybe i don't know i'm just thinking out loud then maybe from day 20 day 33 trades a day i don't know but at a certain point you are going to probably be limiting how much money you could make by restricting yourself to one trade a day on the one hand and then on the other hand restricting yourself to one trade a day is really good for discipline when you have a small account it's so easy to fall into the habit of over trading and giving back profit and churning commissions and then falling into one of the emotional traps of trading of revenge trading you know you're up 130 you take a trade you lose 75 and now you're trying to get back to up 130. you spend the rest of the afternoon trading generating you know possibly hundreds of dollars in commissions and then losing more and more and more getting more and more frustrated and thinking man i wish i had just stopped when i was up 132 dollars clean and simple one trade and i'm done so you know the fact is trading is very difficult and it's risky for a lot of different reasons but one of the biggest challenges is that emotional component of fomo anger frustration and trading from a place where you're emotionally fueled and if you cap yourself at one trade a day it's hard to get emotionally fueled over one trade and and even if you do you're like well i have this rule it's one trade you know it's one trade a day so what you know what can i do i got my one trade yesterday i made like 100 bucks i got my one trade today again it's like 100 bucks is this slow progress absolutely it feels very slow to me to be making only a hundred dollars a day these last two days but from a 5 800 account a hundred a day is fantastic that would if i was consistently doing it be twenty five thousand dollars a year if i just stated a hundred a day but of course once the account grows over the first few months up to ten thousand or fifteen 000 then using that same using my cash balance i'd be able to start taking bigger trades and that one trade a day could be um more profit so then there's i guess the other scenario is do i just continue taking one trade a day knowing that every day i'm able to take a slightly bigger trade a little bit bigger a little bit bigger a little bit bigger and then by the time i'm on day 15 or day 20 and the accounts at 7 500 or 8 000 or nine thousand or whatever it might be that one trade a day is going to be a little bit of a bigger punch you know obviously if i had taken this same trade with 2500 shares i in theory would be up a hundred uh thirteen hundred dollars you know so and that would be a terrific day so i don't know whether the right approach is just to continue with one trade a day and let the account just grow slowly i think that's probably from a discipline standpoint uh very good and from the standpoint of most beginner traders lose money most beginner traders will blow up a small account so if you restrict yourself to one trade a day and you get 10 days in 14 days in 20 days in without blowing up your account i feel like that's already a pretty impressive achievement and i think you probably got there because you restricted yourself to one trade a day you know if once you take the restrictions off you just start over trading inevitably one of those days you're going to end up doing something stupid you're going to take 15 20 30 trades because you you got fomo and nothing's stopping you and then you really get yourself into a jam so i i think i'm just feeling a little impatient with the slower progress but you know 100 a day is really good and slow and steady is the name of the game this is a marathon it's not a sprint so if i start increasing to three four five ten trades a day that's when i'm kind of getting into more of that um you know more of the the sprint of trying to race to grow the account i can race to grow an account if that was what the goal was to see how fast you can grow an account i've done that before i could do that again i think the purpose of this challenge was to show account growth uh without using leverage without being so aggressive and to trade in a way that would be admirable for a beginner trader and i think one trade a day is the way so anyways uh today's another day in the books day six making a little bit slow progress here it just so happens that the momentum has been on a little bit of the higher price names and therefore 250 shares i've got to get 50 cents to a dollar a share to um you know have a have a nice winner an rbo you know i guess i could have gotten a little something on that and maybe been up a little bit more today but right now one trade a day is good training this is the right way to approach a small account and the account is still small so that's it for day six and i'll be back at it first thing tomorrow morning for day seven and that right there was an entire video with no ads i don't monetize my youtube channel with video ads which means you guys get to enjoy the content but do me a favor please hit that subscribe button and give me a thumbs up and let youtube know that this channel is the channel to watch if you want to learn about day trading