Day 6 of Trading at Webull with $2,000 transcript

What's up, everyone? All right. Well, guess what? Today is day six of my small account challenge of trading in a $2,000 cash account using Weeble as my broker. Yesterday was day five. I locked up a solid green day. Just about $200 yesterday. Did it again today. $200 a day. That keeps the 9 toive job away. So, I am thrilled with that. In fact, $200 a day was my goal. When I first started trading, I was, you know, really focused on getting in, getting green, getting out.

I'm going to mute my scans right now. We've actually got some stocks that are hitting my scanners, and I'm taking a break from trading. This is one of the challenges with the small account challenge. Well, it's a cash account. I'm limited to how many trades I can take just based on my buying power. So, my approach is that I focus all my attention on one really good quality setup. I use all my buying power on that trade.

I try to extract as much profit as I can and then I'm done for the rest of the day, at least in the small account. Now, don't worry, I trade in my main account as well. We can go over a couple of those trades during uh today's breakdown and recap. Okay, so let's start high level. Today's day six, and as always, I like to begin by sharing with you our progress on this fundraising challenge. We've raised a lot of money for charity, and we are now up over $185,000 raised.

I've already donated $185,000 to these various organizations, but you guys have the opportunity to help me double the donation with a dollar for-doll match. So, every time you guys hit the thumbs up, I am adding an extra dollar to how much I'm donating. So, all of the profit from the small account challenge is getting donated, but you guys are helping me raise more money. So, thank you guys for uh being part of this challenge and thank you for the suggestions on these organizations because a lot of these came uh straight from you guys uh on YouTube.

Okay, so today is day six. This is the stock I traded. HO up $216.89. That's not too bad. So that's the P&L right there. Um current account is now up $1,52529 since uh inception. That's a 76% return in six days. So I started with $2,000. We're now sitting here at uh 30 a little over 3,500 bucks. So this is great. So how did I approach? Well, and this is the account growth since uh day one. I've taken a total of six trades and currently maintaining 100% accuracy.

Although I had one trade on day four. I believe it was day four. Um maybe it was day three. I think it was day four, which was more or less a break even trade. And this one was kind of interesting because in fact it's a trade that I took in my uh main account and it was a small loss on it. in my main account. I don't benefit from price improvement and I don't have commission free trading. So, a break even trade with Weeble can actually be break even or maybe even a small winner.

The one that I'm referring to was I think it was an $11 winner. But that same trade in a uh direct access broker, that type of account, well, you're you're going to end up losing uh on the commission on it and you don't get the price improvement. Today's another uh similar example of that. So, still maintaining this 100% accuracy, which is good. right here. Actually, uh, six trades and the average winners right now are about $254.

So, $200 a day. I think that's terrific. Okay, so how did I find Hto? I found it right on my scanners right here. This was the first alert. Um, as you can see right here, it started to pop up and it moved very quickly as it squeezed up the scan. Now, when this stock first hit my scan, it also hit one of my other scanners right here, Ross' five pillar alert scanner, meaning that it met all five pillars of stock selection.

We had breaking news on it, which was actually down here at 7:30. That was good. So, we had news. The price was between well between 2 and 20. Uh, of course, for the small account challenge, I'm kind of gravitating a little bit more towards the lower price range because I can buy more shares and get a bigger return. relative volume was extremely high. The float was very low. The percentage change on the day was already up more than 20%.

So, it was squeezing. And so, I went ahead and and I jumped in. Now, in this case, my entry, we squeezed up. We pulled back and I jumped in right here as it rallied back up, which was for the break over the half dollar. I keep kind of talking about those half dollars and whole dollars. We got into quite a bit of detail about that setup during my um my full length master class on the small account growth strategy. So, buying that little dip right there and then getting in for the breakthrough $450.

We broke 450 and we went right up to $5. Now, the only problem is, you know, we do the math. So, I had, let's see, about a little under $3,500 in the I had $3,300 in the account uh this morning divided by $4.50. So, I was only able to buy around 700 shares of this stock. So, in order for me to produce a return of $216, I need to make about 30 cents a share. Now, my goal is really more like 20 cents a share. And I expect that, you know, on a higher price stock, I just won't be able to buy the full thousand shares to make 200 bucks.

But I'm still focusing on those 15 20 cent winners because my metrics tell me that that's consistently what I'm pulling in terms of profit even in my big account. So I don't want to set the expectation that in my small account somehow I'm going to outperform in terms of either percentage gains on trades or on cents per share. So I just sort of set the expectation at 20 cents a share. And so realistically on this 140 bucks was kind of what I was thinking getting in at 450 and happy to get out as it popped up.

Now, it ended up hitting 470. It dips and then it squeezes right here up to a high of $490 and up to $5. It didn't hold over that level, however, and ended up selling as it came back down. I didn't get the best exit. So, at one point, I was actually up um well, I guess almost 400 $350, but I wasn't able to lock all of that up. Um I chose to hold and give it a second and I ended up selling as it came back down, which is a little bit unfortunate.

Now, I also took that same trade in, well, actually, I got in a little higher in my main account. I sort of in my main account, I ended up getting in up in this area. So, it pulled back and I was looking for that push back up over five right here. But, you could see how we got this false breakout right there, and it ended up reversing. So, I missed the good entry in my big account, and I So, I ended up losing $1,300 on it in my main account, but in the small account, um, you know, was green 200, which is which is fine.

And then we ended up having another stock that popped up on the scanners, ARTL, and I made 14,000 on that in my main account. Again, trading right at a half dollar and a whole dollar. So, I actually um I'm pulling an example of that to add to the classes. But, uh but nonetheless, I wasn't able to trade that stock, which ended up uh you know, putting in a nice move in the small account because I'd already used up all my buying power.

So, one trade a day, six trades in. One of the plans that I put uh all of our um new members on uh who are going through the Warrior Pro curriculum is a one trade a day plan. Uh and something that you do before you trade with real money. So, if you're thinking about putting real money on the line, I want you to pump the brakes, slow down. I want to remind you a couple things. Number one, the market's not going anywhere.

So, please take your time, practice as a simulator. the these are the phases right here um that I think I might have mentioned in my last episode. So, uh alpha phase is when you're just trading in the sim and you're gaining a ton of experience. You're trading every single day as long as you can, as many hours as you have time for. And then the beta phase right here is when I put you on this one trade a day plan, taking one trade a day for 10 days.

The goal is that you're green on six or more trades, 60% accuracy, and at the end of those 10 days, you're net profitable, which means the four losses that you have are small enough that you know they're they're tolerable. So, if you succeed at the beta phase of 10 trades a day, sorry, 10 trades, one trade a day for 10 days, then you proceed to trading it with real money and you do another 10 days of one trade a day.

If you are successful with real money there, then you start to scale up to trading with bigger share size. Typically during the alpha phase, every trade is 100 shares. Whether it's a $2 stock or a $20 stock, you just do a 100 shares on every trade. You gain a lot of experience. You a you end up being able to aggregate a lot of your trading history. So all of that data you can mine and that helps you understand what you're doing well with.

Now data mining is something that's very important and everyone can do this. If you've been trading, even with real money, even though you probably shouldn't have been if you don't have the uh strategy and the track record to do it, you can go in and you can track your trades. So, when I go in and I track my trades, one of the things that I'm looking at, and I'll show you right here, I go, let me show you one month. Um, I'm going to show you um March right here.

Let's see. March, was it 30th? Yeah. Okay. So, I'm going to show you this month right here in March. Uh, this was uh March of 2024. In this month, I made $20,000. It's kind of a slow month. This was even in my big account. Um, you can see my profit to loss ratio. Average winners were 742, average losers were,00. And my accuracy was 64%. Okay, so on the surface, we would look at this and say, look, hey, I'm green. You know, could be better, but look, you're green.

But then we dive a little deeper, and there's a couple things I noticed. I scrolled down and I noticed that I was losing money on lower volume stocks. Hm, that's interesting. I was making money on higher volume stocks, as you can see right here. So, that was an observation. I also noticed down here that I was losing money when I was trading stocks that were down. Interesting. I probably should avoid those. So, now I switch over to price and volume and I noticed I was making good money on stocks between two and 20, but I was losing on everything else.

So based on these um observations in my data, you know, which were clear as could be, I I could see obviously that um there were some patterns here that I needed to address. So I made the commitment for the next month that I would do a couple things different. I said, "All right, so moving forward for the month of April. What am I going to do differently?" And I said, "Number one, trade only stocks between um uh yeah, sorry, it was two and um and 10 and be very cautious outside that range." Number two, I said, um, focus on higher volume stocks.

And number three, I made another observation from my metrics based on time of day that I was doing well between the hours of 7 a.m. and 10:00 a.m., but I was losing money when I was trading outside those hours. Earlier I was losing and later I was losing. So I said number three 7 am to 10 a.m. and this was these were the three areas I focused on moving into the month of April. So my data was showing me an area that I needed to make improvements.

So then we look at the month of April and I think this went to the 30th. Yep. So the month of April I made $45,000. I doubled my profit. My profit loss ratio improved um back to about even. My confidence certainly improved. We look at the days and times and you can see that I traded well except for a couple of trades I took a little bit later in the morning which I regretted but I only lost 2600 on it so tolerable. The price was trading 2 to 10 and then once I had a few weeks of doing well at the end of the month I started to venture out made another 1,800 bucks over there and I focused on stocks that had higher relative volume right here and as a result I ended up having a much better month.

So, one of the things that is really important is that while you're in um the beta phase, you're in the beta phase or you're in uh the alpha phase, that you're aggregating all of your trading data. So, you can go back and you can look at what you're doing that's working and what you're doing that's not working from all of that data will be lessons. So, I encourage you if you've been trading for some time to export all of the trades you've taken them taken, import, and start breaking down the data.

And this is always a lot of fun to me because when I do it, what I'm looking for is is there a subset within all this data where I'm actually profitable because it's possible that you could have a month where you're red because you've got all these subsets that are losing. But if you only traded, let's say, between 7 a.m. and 10 a.m. and you only trade stocks between $5 and $10, that that little pocket is where you're doing well.

And so then what do we do the next month? We just lean in on that area because if you can find one little area of the market where you're producing consistency, that right there can help you survive. Trading, it's about survive till you thrive. Keeping your head above water. So even just this this little little spark, this little nugget that's working, that's something you want to really pay close attention to because we can build that into something bigger.

All right, so it's all about following the process. Remember, profits are the byproduct. So, for those of you guys who have been tuning in to this small account challenge, thank you as always. I hope you hit the thumbs up. I'm going to put a link to my full length episode right here on my small account growth strategy. So, if you haven't watched it, I encourage you to check it out. And I'll remind you as always that trading is risky.

My results aren't typical. So, please manage your risk and always practice this simulator before putting real money on the line. I'll see you for the next upload, day seven, real soon.