Small Account Challenge Day 1 PART 2 from -30 to +$500 transcript

[Music] hey everyone all right well um a little bit of a turn around here i went from down uh 30 on the day to green i'm going to guess by 500 because my commissions are 150 in in commission fees and then i traded 46 000 shares today and i believe i'm going to pay approximately 46 000 shares times .0039 for direct access routing which is 179 179 right there and 40 cents so i think i'm probably gonna be up um about 500 so i'm up 825 before fees and commissions and fees and commissions account for like 30 of my profits today i'll be up i think around 500 after fees and commission something like that we'll see so when i did my first recap i was sitting up 194 on the day before fees and commissions but down i thought 25 or 30 after fees and commissions and so i was able to um make approximately 625 dollars so where'd that 625 dollars come from this afternoon it came from osat so the market has just closed it's 4 p.m and the last trades that i took were on osat and they were actually right here on this afternoon one o'clock squeeze that we got so as i was watching this chart i was sitting here and i actually i had a meeting at i think it was from one to two and or was it twelve to one now i can't remember it was twelve to one and then i was yeah it was twelve to one and so as i was sitting here during the meeting i kind of like looked over and i was like god dang it this thing's breaking out without me it's going to 925 950 960 it pulls back it pops up a little higher and i thought you know what i i'm just gonna i'm just gonna punch it so i bought a thousand shares and um warrior pro students you'll see the live well you'll actually see some of the live trades uh from this and you'll see all the executions that are in the live trading archives and part of chapter 16 for the small account challenge all right so you guys will be able to go over that in detail but for those of you guys watching this recap on youtube and facebook um the first entry for me was at 10. and the reason i did that i bought for the break of 10 and sold uh at like 10 let's see where was it um it's raining outside come on girl you're soaking wet uh let's see so oh where was it um yeah so it was right here i'll just i'll just show you so right here i got in at ten dollars and i sold at 10 12. and then i got back in at 10 10 and sold at 10 19 and then i got back in at 10 46 and sold at 10.55 and i just kept doing that i'd get in and get out with 10 cents i'd get in and get out with 10 cents so it's just taking these sort of small gains off the table which for the most part is um the momentum strategy it's a it's usually a good way to um to trade these ones i i buy high but then i try to book the profit pretty quickly and then take that profit off the table by the way those you guys tuned in on facebook and youtube uh please hit the thumbs up uh for the live broadcast here and hit the thumbs up for a small account challenge so it is uh day one of the small account challenge but uh part two so day one afternoon part one was not so great part two uh that's come together here a little bit better all right so anyways um so i kept trading it as it went higher and we got a high and my best exit was at um let's see uh 75 i show 75 and the high was 1080. so that's not too bad at all 5 cents off the high was a pretty good exit there so i was kind of trading during my meeting which is not really always the best thing to do when you're half distracted but it was a good setup so the reason i did not buy it at 925 was twofold so let me just remove all these drawings for a second so and let me just switch the five minute chart just to make it a little easier to read so my first trades on it were pre mark and we had some nice some nice trades on that uh then it pulls back we got a red to green so i went from up 11 about a thousand dollars 1100 um and then i went to back to break even on the day uh up only 12. and then i got to up about 7 800 and then i was up only 195 and at that point i did my recap and i realized i was probably down 30 after commissions and um i noticed that we had this kind of uh w pattern here this double and then triple top at about 9 15 9 17. and i thought i thought man if that thing breaks what's the target target would be high a day and in fact it ripped right to high a day and i bought the momentum trade on the break of 10 we got that squeeze up to 10 30 and then 1064 1073 a pullback dip trade and then up to 1080. pull back was looking for more and then it just faded my last trade on it was a winner though which is which is nice and i was kind of thinking optimistically maybe we would have one more opportunity for a trade up over 10 50 and 11 but that didn't end up happening which is fine this was our i believe it was our leading gapper today and what i did like about it on the daily chart was that it had pretty much no resistance until 1450. so had a nice daily chart uh was the leading gapper total volume today was 86 million shares of volume which is quite a lot of volume and i traded 46 000 shares so i bought 22 000 and then sold 22 000. so those are my total trades on it those are my approximate fees my ecn fees have not been added yet i'll see what they what they end up being tomorrow but i definitely felt this urge to try to get back to you know being up 1100 i don't really feel like this was my best um first day of a small count challenge uh you know i i don't know so you know as i'm sitting here it's four 407 so the market's closed i'm not going to take any more trades so i'm finishing here 825 dollars 15 cents um 675 15 cents after my uh my two dollar per trade commission and then the ecn fees of 46 shares times .0039 is going to be around 179 so i'll be up probably around 500 today my goal was to make 250 that was my goal and i thought it was a little aggressive but i set my goal at making 10 the account has 2 500 in it so i thought if i could make 10 percent that would be a great first day if i had a 500 account my goal would have also been 10 which would have been 50 bucks uh so you know that was the goal but then when i was up a thousand and then gave back half and was up only 400 all i was thinking about was i was just up a thousand i want to get back to up a thousand and i just kept kind of chasing that number and and that's what got me um over trading today i think the better way to trade and then i obviously did a poll at the beginning of the day today i said what do you guys think i should do should i go big and try to double the account one day or be aggressive or should i go really small and it was pretty split it felt split i mean it wasn't an official survey so i don't know but it felt split kind of 50 50. some people were like go small and some people were like go big man so i ended up going bigger and you know that that paid off i guess but i i don't feel like it was the best first day so now i'm kind of thinking about what should i do tomorrow you know when i come in tomorrow i'll have i guess closer to 3 000 in the account and can tomorrow i sit down and kind of be a little bit more moderate a little bit more kind of like as if i just could i pretend like tomorrow is my first day of a small account and yeah i funded it with 3 000 said 2500 but trade tomorrow basically the way i think you should trade day one of a small account so here's my opinion of how i think you should trade day one of a small account what i think would be the right way to approach it would be number one i already talked about the seven um the seven rules of or seven do's and don'ts of trading in a small account so so number one is um don't well this actually was like number four or whatever but one of the rules was don't trade with real money unless you've proven you're profitable in a simulator that's number one that's first and foremost so obviously if you're thinking about trading real money you should already have at least a month hopefully a couple months maybe even six months of profitable trading under your belt in a simulator but on the first day with real money uh first of all the day before you should have while the market was open set up your hotkeys and kind of practice trading so i can drag this up here so we're in after hours right now so so that could be for instance can i put an order to buy you know check my hotkey does my hotkey work okay is it populating the right share size if i do 100 shares and i put an order at you know 889 does it go through yes does my control cue cancel order work yes it does okay so you know you kind of just get yourself oriented make sure the keys are working and then on the first day that's the moment of truth does this act you know am i actually gonna does the order go through correctly if i press the buy button right here at seven or eight twelve do i get filled do i when i press the sell order on the ask do i get filled and so since that first day is a little bit of you know is everything does this engine fire does it run for that reason i think it's important to go with really small size like 100 shares could i have done that today uh i could have done that today and i would have um i would have noticed pretty quickly that my computer seemed to be running on like very high cpu because i was recording as well as um trading and running the charts so my computer felt like it was a little slow like i would click and it was kind of just like a little slow so i might have been you know better to experience that with small size than with full size but today i went in with full size so that would kind of be my two cents would be start with like you know 50 or 100 shares and the first day of real money is just like make sure there's nothing broken with the platform and that the keys execute properly and that you don't have any big lag and that you know everything feels right and then day two is like okay let's step it up with a little bit of bigger size day three a little bit of bigger size day four bigger size day five bigger size and then you just kind of scale up from there this is my second time using this broker for a small account challenge it's my fourth time doing a small account challenge so the only thing that's kind of an adjustment for me right now um since i have traded on this software before is just kind of adjusting from on friday i was trading with like half million dollar positions and today i'm trading with you know 2500 but six times leverage so i've kind of gone back to with a much smaller account and the the first area that that got me was when i tried to do a dip trade and i went in with full size on the first entry and then i couldn't afford to add as it went a little lower and then it came back up but it ended up being break even or whatever it wasn't it didn't end up working because i wasn't able to add so you know so anyways i'm not really sure i'm going to see how i feel tomorrow i'll see what the market looks like you know if we have something that's hot like osat was this morning then i'll probably try to trade it aggressively but honestly today i should have walked away a lot sooner and if i had i'd have almost a thousand dollars of profit so what i had initially said was i think i'm going to try to take just like one really good trade each day and then just flip and trade in my main account for the rest of the day and for me i today i had that one really good trade and then i added back and then that's when i started to lose a little and then i started to chase to get back what i had lost and then i was just totally fixated on getting back to up a thousand which never ended up happening so i think tomorrow regardless of share size the better approach is probably just to take one one trade in this account um maybe two and then just stop but probably just like one trade just get in have one good trade and then just put it aside for the rest of the day and then as a beginner trader what i would kind of suggest is like take one trade if you get green take that profit and then trade in a simulator for the rest of the day um and on the other hand if you go red then be red cut your loss immediately and keep the loss small and then come back again another day so you know today yeah i kind of went from zero to four times a daily goal then to back to zero to three times a daily goal then back to zero and then to two times a daily goal so i had multiple opportunities when i could have shoulda woulda stopped right then and there and just been like i'm done but instead kept trading and that is the biggest challenge not just with a small account but with any account size it's the emotion it's that chase it's trying to get back what you lost and and the pressure of you know day one of a small account this is my first day of trading with real money uh you know if that's your case you know first day of trading with real money i got to like you know make this work so that pressure can sort of cause you to do some funny things so i think easing into it is the better approach maybe even for for me because i would say that the the rules that i set out for how i was going to trade today that i kind of laid them out on friday i was like okay if i give back half my gains i'll stop trading um i did that and i kept trading i gave i went from up a thousand gave back half was up 500 and then kept trading so it's hard man it's really hard i i'm not going to say it's easy it's hard it's hard to have the discipline to follow those rules and that's something i struggle with you know even still today so anyways um so that that's that's what i wanted to just kind of update you guys on this is where i finished the day um not not really the day i was expecting i was hoping for like a really nice clean like one good trade and i'm annoyed of myself that i went kind of back in for a second trade and then that start then things started to unwind from there so the discipline to follow the rules and today i um i just i kind of had that i think euphoria of wow first trade was awesome heck yes i'm going back in for a second trade the market's so hot and then you know just like that started giving it back so you know it's these small account challenges which you guys asked me to do uh students often ask me to do these um i'm not doing these because i want you to think that this is a typical result that this is what you should expect to gain for yourself my results are not typical my experience trading is not typical this small account challenge right now is it's impossible for this to be typical i've been trading for so long 99.9 of people who start a small account will not be in the position that i'm in right now today so this is not typical uh but if you wanted to see how someone who's been trading for a long time does it i'd love to see warren buffett trade in a 500 account it would be entertaining so to the extent that this is entertaining for you i'm happy to provide you with a little entertainment and to the extent that it's even educational i'm happy for you to learn as much as you can from me but i i just want you to to know that at the very beginning that and that's my disclaimer my experience is not typical my results are not typical and as a beginner trader you should expect to lose money and that was um the seven of the uh number seven of the do's and don'ts don't expect to make money overnight don't expect to make anything overnight a small account is a prototype it's just kind of a test to see whether or not you can even be accurate and make some money and then if you can then then that would be the time to consider you know continuing and so on and so forth but you don't even get to trade in my opinion in a uh prototype small account like this until you first proven profitability in a simulator so you're you know you're a couple steps away from from even getting to here but thank you guys um for tuning in yes easy come easy go boy uh trading is is difficult and the markets can be extremely frustrating but it's just like i don't know playing playing some game some sport sometimes you win sometimes you lose you always want to win and when you lose it motivates you even more to come back stronger the next time and when you win but you don't feel like you did as well as you could you still want to get better so it's this kind of performance skill and game that is i find to be very mentally stimulating and so this is the aspect of trading that i think is it gives so much um richness to life because you know a job where i would just like go in and have like a nine to five and just do the same thing all day every day i feel like would be really hard for me for a lot of reasons and this is every day is a little different and every day challenges me even after doing it for as long as i've been doing it so that's where i could see myself continuing to enjoy trading for um many many years to come so and anyways um just to throw that out there so thank you guys again for tuning in that's it for me just wanted to do a quick recap small account challenge part two from minus 30 to plus 500. let's call it 500 but ultimately i'll know when i log in tomorrow and i see what the balance is i could be a little off there because i know the fees um on a small account they're disproportionate and they're pretty they're pretty big look at the rain outside it's really coming down we've got a that's just this big rainstorm that's coming through so i'm glad my my internet has held up um but yeah i would say and one of the things i talked about so i'll just why don't i just run through the seven do's and don'ts again just for those that didn't um didn't hear them the first time so um the seven do's and don'ts of trading a small account number one don't swing for home runs or put all your money in out of the money option contracts have a 90 chance of expiring worthless or some random penny stock that you hope is going to go up like 10 000 those are lottery ticket type of trades and most lottery tickets expire worthless right every now and then sure maybe there's you know you get a lucky lottery ticket but uh but that's not a that's that's gambling that's pure luck and this is a skill that you're trying to learn so you can't base it on luck uh number two do take base hits so for my trade at 820 taking profit as it squeezed up to nine you know that's taking 10 off the table that's 80 cents that's a good solid base hit that's really solid but 5 to 10 percent in my opinion are solid base hits don't change a profitable strategy to accommodate fees and commissions yes fees and commissions they're they're just part of the deal and when we look at my um my small account challenge let's see results i'll just put this up here so in 2017 i started a account with 583 dollars in it and in fact the tr the 2500 that i deposited into this account uh is a profit from that initial 583 dollars so from 583 dollars and 15 cents uh over the last four years 17 18 19 20 and now into 21 coming up on five years i have spent nearly one million dollars seven hundred fifty thousand dollars in fees and two hundred twenty thousand dollars in commissions so about a million dollars right here in fees and commissions the gross profit is right now 8.8 million making the net profit 7.9 million so you know i like to look at the gross profit because that's the the total amount i've made but you know you take the commissions off of that because that's that's that's the net so in any case fees and commissions uh are part of um just part of the deal i'm sure even you know hedge funds whatever they have some sort of fee and commission on the trades they take so whatever level you're at and those are probably even you know bigger than mine i would assume on a billion dollar type of trades so let's see number four do prove profitability in simulator before going live number five don't use leverage or margin if you don't understand how it works this account does have six times leverage on it and margin making it very risky high risk of blowing up the account number six do fund the account a little bit of a cushion in case the first day maybe is a red day number seven don't expect to get rich quick generate any significant income from a small account do it for the enjoyment of gaining some financial literacy and learning some skills of being a trader okay so um with that thank you guys um for tuning in trade safe i'll be back at it tomorrow morning i won't be streaming on facebook or youtube for the small account challenge but if you'd like to join us in the community we'd of course love to have you so tune in if you'd like but make sure you manage your risk because trading is risky all right thanks so much and i'll see you guys tomorrow you