How To Grow A Small Account 📈

yo what up everyone in this video i want to talk about how to grow a small account or even a large account and how to find consistency if you feel like you're struggling and could do so much more now i've made a video like this in the past but i still stress these points to this day there's some good things in here that i'm going to show you the technical setups backing it keep an open mind and if you are seriously struggling or just want to grow your account try it out for a month let me know how it goes it's what works best for me and it's what i find to be the easiest now before we get into it if you want a very good resource i'm going to link my instagram in the description below at investor trade i post daily trading recaps on here along with very good trading tips and tricks that you're not gonna find anywhere else be sure to follow it you're definitely missing out if you're not link in the description below but now let's get right into the video so i stress this a lot if you want to build your account consistently i recommend trading and focusing on spy and qqq spy is the s p 500 etf and qqq is the nasdaq 100 etf you can trade any other related instrument for me i chart es but will trade spy options and i will chart nq the future and trade qqq options from a chart standpoint here is the s p 500 and here is the nasdaq forward slash nq now i'm going to get into why i chart them but still trade the options on spying qqq in a bit but they are the markets themselves for me it's less noise if i solely focus on spying qqq i find it to be extremely easy to read its context you can be laser focused on those names and you can learn their personalities pretty well now that's not to say there's other setups and other names i still trade other names apple amazon boeing facebook microsoft i still trade them i have experience but for those that are looking to grow their account find consistency you can learn a lot about yourself and a lot about the market and the psychology and the context by solely focusing on those names it's easiest to read the context and there's less emotions involved you become less emotionally attached if you're scanning for the next biggest setup and you want to be a hero trying to get something before it breaks out you're emotionally going to be attached to that subconsciously and subconsciously that's going to affect your performance probably to the downside versus actually benefiting you so there's less emotions involved in this because they're very liquid there's no spread they're very easy to trade and they are very very cheap so going to the option chain i have spy contracts loaded up on here as you could tell at the money going for about 90 cents to a dollar one out of the money you're going for about 60 cents and 30 cents so for every contract we buy it's going to cost us 100 times that so if we're buying it for 60 cents one contract is going to cost us 60 bucks if you were to look at the volume i mean that is crazy volume on spy 260 000 contracts we're trading today same thing on the put side you know 140 000 contracts and as we go down the list the further out of the money they are still very liquid and they have a very high open interest this is going to either be a it's going to be easier to get an in and out of these positions b it's going to be harder to manipulate and c we can easily get a large position without affecting the market due to the liquidity and we aren't going to lose a lot on slippage as you could tell these spreads are extremely extremely tight i mean a one cent spread or a two cent spread is nothing you can easily market order in these and not get screwed on slippage where other stocks for example let's just say amazon on a low liquid on a low volume day you could be down a dollar on slippage as soon as you hit the buy button so there's not a lot of spread very liquid it's very easy to trade they are also smaller size and these names will yield a higher percent gain with less risk now i'm going to get into an example in a bit but if i were to pull up spy calls today let's just say at demand now i'm going to link this chart up with this now these charts are identical the top left and the bottom and the top right if you were to buy spy calls at demand for a dollar and 43 cents by end of day they went up to about four dollars and 20 cents so that 140 investment which is the most you can lose would have turned into 430 30 bucks for a 200 gainer obviously from low to high no one's going to get that amount the point i'm trying to make here is smaller size with these names yields higher percent gains and less risk because they are so cheap and if we time the market correctly we can get higher percent gains now also there's three expirations per week compared to one per week for other equities if we were to look at apple for example we would have an expiration for every friday these are seven different seven days until the next expiration where something like spy or qqq every monday every wednesday and every friday we will have an expiration so if you know options and know how theta works and know how closer to expiration for scalping how powerful that is you could seriously take advantage if you time the market correctly it's all about having a strategy as well because in my opinion es and nq since they are the future contracts which is why i chart them they work very very well with supply and demand pricing balances due to its highly liquid nature they are the or the s p itself is one of the most liquid markets in the world so with supply and demand pricing balances it works extremely well we're going to get into this example but if we were to buy puts at supply these went down into demand where we bounce back into supply that's obviously a perfect ideal world doesn't happen like that all the time but it works extremely well and when it doesn't work well it's easy to avoid because you recognize certain conditions when to be a spectator when to sit on your hands and there's pretty much a lot of setups i don't want to say every day because some days i you know you have to be a spectator if your edge isn't present but pretty much their setups especially in the past week week and a half there were setups pretty much every single day and if you capitalize on them we're gonna do a hypothesis in a bit you could have grown a small account into a very large one in a short amount of time and recently there's been a lot of volatility which is a beauty to this as scalpers as day traders trent traders volatility is our best friend so when there is volatility there's large price swings that's when we could think outside the box and trade different ways and really capitalize on large price movements with option trading you know how crazy the options could go up or go down when there is volatility and when there is large price swings so last week this volatility actually the past two weeks the volatility in my opinion brings very good trading setups as long as you could call an audible and be flexible and adapt to the current conditions what i mean by this is the past two weeks we're seeing a lot of different action than what we have been seeing let's just say a month ago so you need to recognize this as a trader adapt and react accordingly and you could take some very good trading setups for example nq rejected supply up here two times beautiful setups those days to the put side last thursday and friday then sold off into this demand zone we're below it now we caught a bid and then the market started aggressively selling off this also formed the new supply zone in this area over here and every single day from the week of september 13th to september 17th every single day we touched the supply zone and sold off from it we also had demand a little lower in this area act like this is a green box right now so we were contained in a very tight range of supply and demand on a longer time frame every time we came into the supply zone it gave us a good setup to the downside with the added benefit of volatility myself and i know other peop members in the discord strive completely in these conditions and this is where we make the most amount of our money and where our account will grow tremendously obviously there's going to be smaller imbalances inside as long as you do not let your emotions get involved and make it less noisy it could you could really simplify your trading and really wean out bad setups to good setups and journal collect data and know what works for you the best size up on it and grow your account but i want to get into an example on the s p 500 and we're also going to get into examples on nq as well to get more context of the first setup let's go over the pre-market plan i post these every single day in the discord we were watching the s p we had this 4462 demand zone that i'm watching if we could hold at the open if we pull back into it if we get below it we could sell off into the four four four five demand zone where we can play puts into that level we'll get into that and an upside plan was if we could get above 4475 and a break of a downtrend line because we don't have supply for about 20 points higher so there's a lot of different setups especially with trading the s p 500 and trading nasdaq you can seriously get creative and find so many different entries and find an edge based off of your personality and your style so the first actual trade that i saw off of this was once we bounced off of the 44627 from the pre-market plan i mean that was the low from the first one minute candle and we got a 13 point rally into the supply zone so if i were to pull up the option chain and go to spy for the 17th the 447 calls at that point on thursday let me minimize this and i am going to load up the uh 447 calls here let me remove this and let's just look what these contracts did so in the first minute i have these two charts synced up the low of the spy 447 calls was about a dollar and 17 and they went to a high of a dollar and 94 cents so that is a 90 or 65 return in a four minute period if you buy 10 contracts just going to call it conservatively let's say we buy 10 contracts at 1.35 right here and we sell once it hits supply at a dollar ninety our thirteen hundred dollar investment if we buy ten contracts is now worth nineteen hundred bucks and we're making a six hundred dollar profit from a thirteen hundred dollar investment that's forty percent in three minutes strictly from demand into supply now what i talk about getting creative is maybe you were looking to short the market let's just say maybe you missed this demand zone and you were looking to short the market in hopes of it to come down once you got selling confirmation at a supply zone you always need confirmation no matter which way you play the market let's just say we wanted to play the 447 puts now if we miss the call entry go over here let me pull up the puts remove this now once we hit supply these puts had a low of a dollar and 74 cents and they went to a high brief high about 20 minutes later for four dollars and 47 cents so 1700 investment is now 4 400 bucks that's a 154 percent return in 20 or 30 minutes and you can see there's not going to be a liquidity issue look at the volume down here on these contracts i mean that's very very high volume and that's something you want to see when you're trading because it's less um it's it's harder to manipulate if you are a large institutional trader market makers um and it's easier to get in and out of your positions with either market orders limit orders because of the liquidity being so high and we obviously had a sell-off now let's just hypothetically another example say we missed the supply zone sell-off and we're trying to capitalize on this selling pressure but we missed the entry at the high from the pre-market plan i was willing to play puts below this demand zone i normally don't like playing puts below demand it really depends on the context of the market but because we had nothing supporting us below this low and this will the law was made off of news we really had a white space below this demand to trigger into the next one so maybe instead of planning a break you could have played once we retested this area and old support became new resistance so let's just say we could have played puts at 959 right here stop maybe above this high going back to the option chain just pull up the 445 puts go over here to my chart you know we could do this all day long 9 59 the contracts were let's just conservatively call it at 9 59. conservative let's say we got in at ten o'clock contracts were at two bucks nice liquidity i mean over a thousand contracts traded on this one minute period on these puts five minutes later not even four minutes later these went up 30 so our 2100 investment now is 2 600 bucks in four minutes if we're buying 10 contracts right at this demand zone and obviously we moved further into this demand zone where we could have capitalized these contracts you know absolutely exploded and now let's just flip it again let's just say we wanted to play calls at this demand i don't want this to get repetitive but this had a beautiful bounce out of this 4445 demand zone and look what happened by end of day we had a clean rally into the supply zone at four four seven five so let's just say we wanted to play the i don't know 445 calls at this demand zone pull these up here now instead of puts we're playing calls at the demand zone the low at that demand to the high at supply the low was a dollar so we buy 10 contracts it's costing us a grand by end of day at supply those contracts that were at a dollar are now at three dollars and 40 cents for a 210 gain in a few hours you know obviously no one's going to sell it or buy at the bottom no one's going to sell it the high so you got to be conservatively but even catching a portion of this move let's just say we the first touch of demand let's just say right these were a dollar 28 and 10 minutes later 30 to 1.70 you're trading 50 contracts 100 contracts right it's costing you 5 grand 10 grand you can easily make three grand five grand seven grand on a quick trade as soon as you scale up your contracts if you can become consistent growing a smaller account one contract three contracts all you have to do is increase your size and when you increase your trading size your account is going to increase and your profits are going to increase as well which is why i always stress to focus on the process the rest is history profits are irrelevant because of how scalable trading is focus on consistency with small size first and your account could grow exponentially once you control your emotions understand these points and just scale up your position sizes here's an example on nq and qqq now like i said earlier there are tons of setups if you get creative with it you could play the upside you could play the downside you could scalp some days you could trend trade some days you could get an all-day fader to the downside some days you could get an all-day runner to the upside so just get creative it's so liquid and there's tons of opportunities as long as you think outside of the box and use market context so here's nq qqq i said we're in a very large balanced range where i'll be using supply at one five six three six and importantly one five six six zero seven four and nine seven as the upper extreme level we must reject these zones and hold below where i will look to play puts obviously we had a few other supply and demand zones on different occasions for an example i think there was a zone in this area over here i also think there was a zone in this area so you're not gonna sell at the bottom sell at the top and buy at the bottom there's obviously gonna be roadblocks intraday i'm just illustrating how crazy these options are and the limitless amount of setups you could take so let's just say we wanted to play puts on qqq you know these had a low of 74 cents let's just say we buy one contract it cost us 74 bucks that's the most we could lose if we get a quick push down now our contracts are at a dollar thirty let's just say we break we get below vwop op 1.30 conservatively that's a 75 gain and by end of day these went up you know 200 percent our 70 investment is now a 220 investment and then the next day which is even crazier because it was friday the day of expiration if we look at the nq chart so that aggressive drop to the downside also formed a new area of supply so we have actually extra confluence more of like a big brick wall defending this area uh we bounced off demand overnight and we on the way up we also created demand i think in this area in this area as well so obviously this chart is naked from the extremes but if we were just a short at this not short play puts at the supply zone the low was 36 cents and let's just say we got to the first demand zone at 10 o'clock these contracts went up 167 percent one contract 36 bucks is now 100 and then by the end of the day these went up 1197 obviously no one's getting the low to the high i just want to illustrate the power of the strategy the power of same day or close to expirations they absolutely explode if you time correctly no one you know i've never got an eleven hundred ninety seven percent return um as an all-day fader to the downside no one's ever gonna get that if you're expecting that it's pretty unrealistic you have to get a portion of it your gains will slowly add up a 500 account you make a 200 profit on it now you got 700 bucks you now 700 bucks turns into 1100 and 1900 and you just build up as long as you practice risk management your losses are smaller than um your wins you understand how um supply demand works and you trade your edge and your setups and do not let your emotions or noise get involved you can make your losses minuscule risk to reward standpoint it's in our favor and i only take trades that are in our favor

Channel: Carmine Rosato

Views: 8,001

Rating: 4.9483871 out of 5

Keywords: carmine rosato, supply and demand, ricky gutierrez, learn plan profit, ross cameron, warrior trading, tim sykes, day trading, stocks, stock market, day trading recap, trading recap, thinkorswim, tdameritrade, how to grow small account, small account challenge, find consistency in trading, profitable trader

Id: IviTPb89TQY

Length: 21min 4sec (1264 seconds)

Published: Fri Sep 17 2021