Day 3 of Trading with $2,000 at Webull (I'M UP OVER 50%) transcript

What's up everyone? Welcome to day three of my brand new small account challenge of trading in a $2,000 cash account using [music] Weeble. Today is another green day. I'm 3 days in. I've taken a total of three trades. And guess what? Accuracy 100%. I can't complain about that. But I assure you that won't last for long. I will eventually have a loser. It's all about keeping those losses as small as possible so I can live to trade another day.

All right, so let's go ahead and jump on a screen share and start breaking down my trades from this morning. Here's first of all our fundraising challenge update. We are at over $171,000 of money raised for charity. Thank you guys. All of the profit from the small account challenges that I've been doing get donated to charity. And I gave you guys the chance to help me double that donation with a dollar fordoll match.

So every time you guys hit the thumbs up, it adds an extra dollar to charity. So, we're over $171,000. I've donated $145,000 right here, which means I've now got $26,000 sitting in the bank ready to donate. So, thank you guys who have already left suggestions of organizations that you want me to donate to. I've made a list to them, and if anyone else wants to add a couple more, put them down in the comments below. I'm going to add them to the list.

I'm going to go through and I'm going to see which ones are the most popular because there's a number of organizations that several people have commented on. So, I'm doing my research on them to make sure I think that they're good. Okay. So, again, thank you guys for hitting that thumbs up. Let's keep raising money for charity and learning about trading at the same time. So, today is day three of the small account challenge.

Now, when I came in this morning, I had about $2,800 in the account. I'm up $291. That's awesome. More than 10% in one day. Only a little only like $10 more than 10%. So, it's like not even 11%, but it's it's fine. You know what? 10%, we'll just call it 10%. That's a solid day. If I could keep doing 10% today, I would be thrilled. But what we know about day two, day day two was a smaller green day. But, as I said on day two, it's a green day, and it's better just to lock up that base hit and live to trade another day than to get bent out of shape or worse, to hold what was a small winner until it turns into a loser.

That's a bad idea. Okay, so big picture account progress so far. I now have a total of $3,100.75 in the account. The account's up 55% and that gives me total profit from the $2,000 starting balance of over $1,100. Fantastic. So, this is the account growth since day one. Funded the account with 2,000 bucks, 291 today, 3,100 total. 55% growth. Three trades, 100% accuracy. Average winners $366 and there have been no losers.

Let's look at my trades from today. So check this out. The stock that I traded today was AT and it is the only stock that was on Ross' fivepillar scanner. So, those of you guys who have tuned in to other full-length episodes here, specifically my small account growth strategy master class, you know that I have five very specific criteria that I look for in a stock in order for me to consider it to be a quality. Aton was a quality.

So what I want to do in today's episode is I want to break down the threeinut window where I took this trade step by step so you can see exactly what was going through my mind as I executed this trade. Okay. So you can see our scanners right here. You can see the chart right here. What I'm going to do is I'm going to go ahead and I'm going to pull up the chart uh full screen here and I'm going to pull up my Weeble account right here.

Now I also can pull up my lightseed account because I ended up trading this in light as well in my big account which is great. This was a stock that I liked all around. So I traded it small account, big account. It was a good day. Can't complain at all. Okay. So where do we begin? Well, I suppose we could start with the fact that when I first sat down this morning, I was, how do you say disappointed? I was really disappointed. our leading gapper in the entire market was up 23% and I was like Lord give me strength during this difficult time where there are no gappers.

I was like guys I said this morning I said welcome month to Monday we are in the trenches and I am just going to hope that we have a stock that has news and this was at like 6:58. I said I just hope that I can be patient. My prayers were answered. I didn't have to wait long at all because at 7:03 a.m. only only five minutes later, 7:03 a.m. At hits the scanner and boom, the rest is history. But of course, we'll break it down.

Now, what had already hit the scanner this morning was EPSM at 4 in the morning and JXG at 4:43 in the morning. So, I actually had already looked at these stocks um yesterday when I was working on building my watch list for today. I had looked at my after hours top gainer scanner which is right here and I had seen that in the after hours session MFI was our leading gainer and it's a Hong Kong company that put out news of a private placement for $500 million to launch a digital asset treasury strategy.

What does that mean? It means that an institutional investor gave them $500 million to go buy cryptocurrency and they've got to hold that cryptocurrency on their balance sheet and that investor now has shares in the company which essentially secures their $500 million. So when crypto was at all-time highs, that was a fantastic headline, but crypto's down like 20% off the highs. So no one really cares about that headline.

So the stock didn't really do that well. Okay, so I'm ignoring that. Also, it's Chinese. And we have to take those Chinese stocks with a little bit of a grain of salt because we know that they can be a bit tricky. So, then the next stock was JXG. Well, this one's also Chinese. I can see the country code right here. And so, I had seen it after hours. It had moved up a teeny bit. And then, look at that. At 4 a.m. it spikes from $450 to $7.

I would say that was an ALGO spike. Algo spikes are something that I teach about in our full length classes here at Warrior Trading. So then we had EPSM yet again a third Chinese stock and that one popped up as well at 4 a.m. but like JXG it's been kind of unwinding since. So neither of those were worth trading. So I was sitting here trying to muster the strength to you know not punch the keys unless something looked good.

And then ding ding ding I get the audio alert on my scanners that AT has triggered my high a day momentum scan alert which means the stock has hit a new high. Currently, it had at that moment 1.4 million shares in the float and 2.5 times relative volume. Even though it was only up 30%, the volume was already 2.5 times higher than what is normal for that stock even with light volume here. So, I pulled up the stock and immediately I saw that they had a headline.

I checked the headline and I saw that it's a acquisition. And if you recall uh two weeks ago uh for those of you guys that tune in to recaps every day, two weeks ago we had GLTO. And GLTO was a stock that had acquisition news and went from $5 to $26 a share. And I made $65,000 on it. It was phenomenal. And then we had another stock that same day that had an acquisition headline and also made a big move. So, when I saw AT hit the scanner, knowing that there was nothing else that was possibly competing with it that looked better and I saw that it had this acquisition headline, I was like, "Okay, you know what?

This is something that I should probably pay attention to." So, I pull up I pull up I click basically I click on it right here. Doing that pulls up uh the chart loads the stock here in my stock quote window. And at that point, this is what I was seeing. And then what happened was it hit 383 right here and then you see it dips down to 359. So what this was right here, this presented as a micro pullback. It's a little cup formation here and a small handle.

A little cup and handle. It's not a picture perfect pattern, but on the right stock, a stock that meets five pillars of stock selection, I was willing to pull the trigger. So, we'll pull up my Weeble account here, and you'll see that I sent my order, and I got filled at $3.64. So, that was right about in here. I bought this dip. Now, how did I buy? I pressed shift one. Now, initially, I had shift one set up to buy with $2,800 worth of stock because that's how much money I had in the account.

So, if I go to hotkeys, I go to settings, we go to trade, we go to all settings, and we go down to here. I had previously had this set at $2,800. It was cash, $2,800. Like that. And then someone said here in the comments, they said, Russ, you don't have to change it to the cash amount each day. So, today I was going to change it to $3,100. They said, just use 98% of your buying power. 98%. And it's just going to execute the order based on 98% of your buying power.

And I was like, that's genius. See, I didn't think that was going to work. I had tried it and I thought that it didn't work, but it appears that that it does work. I guess the only Yeah. So anyway, so maybe I made a mistake before, but in any case, now I've got that set up. So if I press right now, shift one. I press shift and I press one. It's going to send an order right now to buy 929 shares of this stock. Now, I don't want to execute that order right now because I've already taken my one trade and it's telling me if I buy right now with unsettled funds, I have to hold it overnight.

I can't sell this position until the previous one settles. So, I'm going to cancel that order. I'm not going to send it. But this morning, I came in and I had $2,800 of settled cash. So, I pressed shift one. I bought $2,800 worth of stock. The order was for 10 cents above the current price and I filled at 364. And that's actually really cool because that means that my limit I pressed the buy button at 364 and my limit was 10 cents above the offer and so I filled the whole order at 364 with no slippage.

That's a good thing. Then it pops up here and it breaks as you can see over 3.95 and it breaks over four and I took my profit right up here as it broke over four. Now when I when I sold you can see my limit price is 3.89. Now, my sell order is for 10 cents below the bid. So, we go back in here to the hotkey. We check my sell order. So, my sell order on this hotkeys. I use control Z to sell. Sell full position, 100% of the position, 10 cents below the bid.

So, that means the bid must have been $3.99 when I sold and I filled at 403. So, I actually got four cents of price improvement on this trade, which was fantastic. So, in total, I ended up making $291.56. Now, as it turns out, the stock pulled back and it dipped all the way back down here to 84. And I'm glad that I took my profit because, you know, that was green and I got in and I got out quickly and I paid myself. It ended up curling back up.

I took that trade there in my main account. That was a good trade. and then pulled back again and then it curled up one more time and I got another trade in my made account. So, in hindsight, should I have just bought here and held all the way to here? And the answer for me is no. Because right here, this could have easily gone back to red and then I would have turned a winner into a loser. So, I got to tell you guys something.

When I funded my first account, it was 2001. During those days, well, I didn't really know what I was doing. I took the approach of just buying shares of companies I knew, and I thought I would just hold them. and I only had $1,000 in my account and so I didn't make much money at all. Right? The market was moving very slowly and I was buying large cap stocks. So fast forward to when I got back into the market. It's the great recession.

The job market's terrible. I've just graduated from college. I'm in the job market and guess what? There's no jobs to be found. Even as a four-year graduate, four-year college degree graduate, you were going up in a job interview against someone that had a master's degree and had 5 10 years of work experience for the same job. So that's when I got into trading. And I'll tell you that between 2010 and 2019, that decade of trading, more or less, during that period of time, we had commissions.

They were typically $10 per trade for every transaction. If you took 10 trades in one day, you'd spend $100 in commissions. So what did that result in? People traded less because it was expensive to trade. Less trading means less liquidity. Less liquidity means bigger spreads. And and honestly, we didn't have as much volatility. we didn't have bigger moves. So during that period of time when you had a winner, you paid yourself.

You took the profit off the table because the alternative was going and getting back in the line to get a regular job at $15, $16 an hour, maybe as a college graduate, maybe. Unless you want to do manual labor, which you could get $20 an hour, but then what was the hard work of getting your degree for? So, I was in a position during those years where I came in every day and I had to be so aggressive about looking for one opportunity and paying myself.

My goal was 20 cents per share with 1,000 shares. That's $200 a day. 200 a day. That keeps the nineto-ive job away. And it was just survive till you thrive. And it was that was a time where we were in the trenches. Now, the pandemic obviously changed things. The pandemic, we had a surge of volume in the market. And all of a sudden, people were no longer thinking about just surviving off 20 cents a day. People were like, "I want to make a $100,000 in a single day." And of course, you had people that came in, they'd buy a position, it would keep going up all day long, and they cashed in.

They made a ton of money. But a lot of those people learned the hard way that when the market cools off, you got to reset. You got to go back to taking those base hits. And that's what I still do. I still take those base hits. So, even on the days where I did clear six figures during the pandemic, it wasn't from one entry and one exit. It was from a ton of base hits. I'm a base hit trader. That's the way I learned. I learned in the trenches.

And so, when I'm doing these small account challenges, it feels just the way it was, you know, when I was starting all those years ago. Except today, we have commission free trading, which is awesome. We have T1 settlement. Cash accounts settle overnight. And soon we know that the pattern day trader rule by FINRA has been approved to be reduced to $2,000. So we've got a lot of good things on the horizon. It's an exciting time to be trading.

It's an exciting time to be learning about the market. So this is my recap for today. I want to thank you guys for tuning in. I hope you hit the thumbs up to add an extra dollar for the match for charity. And I'm going to put a link to my episode here on the small account growth strategy. My full length master class that's going to walk you through the approach that I take every single morning. Reminder, trading is risky.

My results aren't typical. So, please manage your risk and trade in a simulator before you ever put real money on the line. I'll see you guys live streaming bright and early tomorrow morning.