How to Grow A Small Account WITH OPTIONS in 2020!

I recently put out a video on the best small account trading strategy and at the end of the video I realized I forgot some key details with option trading I'm a professional options trader I turned my premium options trading group every single week and this small account option trading strategy is gonna blow your mind in this video stay tuned [Music] so stop torturing yourself and subscribe to market moves brand new channel you won't regret it content comes out every single week to make you a better trader and today we're going to be talking about option trading especially with small accounts and the best way to grow an account this year in 2020 some of these strategies I've never ever revealed on the Internet and I will say these are the best option trading strategies you can use anywhere on YouTube I've watched tons of videos and nobody ever talks about this I'm going to be using two platforms today to show you the strategy one of them is gonna be Robin Hood completely free if you sign up with the link below you'll get a free stock and the other one is gonna be thinkorswim it's a highly professional platform I'm gonna show you a scanner that we're gonna be using to find out which options and stocks to play throughout the market so those are the two platforms are gonna be using and they I just want to make it transparent or a small account is and most of the time if you can afford $500 you can trade multiple different options and get some pretty sweet gains from that if you follow the right strategy so again small accounts can just be 500 dollars to get started but just know if you're gonna use this money you might lose it also only play with money that you're willing to lose because you're just in this market to learn and sometimes learning costs and you probably don't believe me you probably don't think you can make anything from $500 in the stock market I wanna prove you wrong in one text message from someone in my options trading group so this is one guy who's been in the group for about six months and he said I hit the 500 to 3k challenge meaning he started with $500 and his account value went up to $3,000 primarily trading options so he's with our group for 6 months he took a month break during Christmas and he's looking to rejoin so if you want 70s for free in the group click the link in the bio the point is the guy woke up everyday did the work possible to be great at this and he turned to count from five hundred dollars to three thousand and if you multiply that by ten it's 30 thousand dollars in a year enough to quit your job and actually do this full-time all I'm trying to prove to you is that this is not a mythical opportunity plenty of people have success every single month in the stock market with small accounts and we're gonna be using Robin Hood to show you what options are how to trade them and on Robin Hood if you don't know anything about options all you do is type in the stock you want to trade and let's talk about Amazon because this is a great example of why you can't afford Amazon options with $500 so you could this trade option button right here and then you'll see the options expiring this week just four days from now with Amazon are about $2,000 $1,800 you always multiply this number by a hundred and that's how much you have to pay for the contracts so unfortunately if you're a small account you can't be buying every stock you want and you can't be trading every single play that's why it's important to scan for the right ones for you in your situation and the ones you can maximize the most gains from it so I'm going to show you a way to do that on thinkorswim and why are we using thinkorswim well because it has the best scanning feature out there because you can scan for anything that has options in it so anything that's optional as they call it but the bad news is this platform is gonna crash in the next coming days if you guys don't smash that like button so make sure you save fingers swim and traders all around the world and smash that like button for us and first off I've made a scanner that we're gonna be using for options and this is something you guys can do on thinkorswim I'm gonna walk you through how to do it and why we're doing it and what it could produce for you so the first thing you want to do is click the Scan button on the top this is gonna open up this whole scanning feature where you can scan for anything possible a doji certain candlesticks certain volume unusual volume it's very cool and you can't do scanning til your eyes are you know green with stock gains but the first button you want to click is these skin but this is the optional option so this just means you can get something that has options so all optional right here it's gonna be in category and this just allows you to find stocks they can trade that have options on them because you know if you just scan for anything in the stock market you might find the best setup and the best possible risk reward I'm going to realize they don't have options attached to it it's a waste of your time and this is a small account option trading strategy so that's what we're doing today and the first thing you want to do is add a filter right here we're gonna click a stock filter so we add that and we're gonna click ask because that is the price of the stock and we want to make sure it's over $5 at least I'm going to delete that filter above me because that is just the process of me showing you how to put it in because the reason we're looking for stocks above $5 is because the options are not going to be cut in with commissions and more importantly if it's $5 you can get a decent move from it and you don't have to go too far in the money with options because one of the special things about options I'm going to show you this on Robin Hood is that when you have an option that is out of the money let's say it's I'm gonna use a roku actually so I just switched that so are the money as you can see options get cheaper I'm gonna go for this 149 option so let's say Roku magically jumps ten dollars how can you calculate how much you're gonna make as an option trader and this is how you do it right here you just go down $10 so from 149 we're going down to 139 but remember the price of this is going to be 291 so about $300 if we go to the 139th we're gonna be looking at 750 so that's gonna be about 250 ish percent return with a $10 move now I'm going to show you what happens if you are buying something in the money basically deep in the money and you have that $10 move so if we have the one let's say the 140s if we move $10 for this we're gonna have a $700 option turn into we're gonna move down to 130 about 14 so that is kind of barely doubling so as you can see we're getting more returns if we're buying things slightly out of the money that's one of the strategies I'm teaching you right now we want to look for options slightly out of the money because then move in the money is pretty profitable and the reason we don't do this with stocks under let's say $5 cgc sorry ACB right now is trading at about 190 and these do have options let me show you what happens with this we have out of the money options costing $2 and commissions for thinkorswim is $1 so every time you buy an option you're losing 50% of that options value with Commission's and the deeper you go in the money obviously like I showed you before the less money you can make when it moves so for us to make if this is a 150 if this is training up 190 right now and it moves up $1.00 which would be pretty insane this 150 we'd have to go down two strikes to 140 and if we had a 40-hour option turn into a hundred and $40 option that's gonna be again about two hundred and fifty percent returns so same possible return as Roku the Roku only needs to move ten dollars for a hundred and forty dollar stock and this needs to move one dollar for a two dollar stock basically 50 percent return which is something you can't time it's something you can't predict my point is if you're looking to make money with options with the small account you can't be trading with stocks that are under five dollars and I would say you know seven to your thirty is kind of the perfect range maybe even a hundred if it's volatile enough now let's go back to the scanner feature because I just have one more study or filter we're gonna throw in there and this is a custom one so we're gonna click add filter and then we're gonna click study and we're gonna actually customize this we're not gonna use anything that's predetermined in there they have a bunch of cool things you can scan for it could be any candlestick pattern right here corporate actions crossovers popular studies we could do a MACD scan statistical studies all of this but I'm gonna do custom because I'm a programmer I know how to put in my own stuff and I don't have to use anything anyone made for me it's a custom and it's very easy I just want to scan for things with wide Bollinger Bands it's the easiest way to find volatile stocks it's the easiest way to make money as an options trader because you know you can sell options at some point if they're wide enough because volatilities usually gonna drop and when volatility drops you make money as an options trader and there's more videos in my youtube channel about selling options it's pretty amazing what you can do with that make sure you check it out but all we're gonna do is add the Bollinger Band width study and all you have to do is type that in and let's see if I just I'm just gonna do this all over again so you can see it live just type in study Bollinger Band width boom right there and we have the width right there attached to it and we're gonna say greater than and we're going to type in value and this is just gonna be 20 40 or whatever you want and that's it so I have any time the Bollinger Bands above 20 it's gonna hit this scan filter and the other thing you want to do is add the right timeframe so if you're looking to date rate the market you may want something in the hourlies section or maybe the 30-minute 15-minute section or if you're looking to swing trade over multiple days which I highly suggest everyone does if they have a full time job if they're super busy you would have to use this day in the weekly or maybe in the monthly charts so let's head to the 4-hour because that's the best of every world I love the 4-hour chart and you're gonna click scan right there I'm gonna show you one more tip that's gonna change your world if you hit this three bars right here you're gonna possibly if you want send them to your cell phone with this button so this is the notification button and if you click that when anything gets added to this it's gonna go straight to your mobile cell phone if you put your number in and all that stuff you can get emails if you want to but I already found a stock I like on here it's gonna be the one under my chart it's the first one that scanned and I just sorted these by price so all we have is 60 our stock called CRSP and we have this on my chart right here let me show you what happens from the stock we charted or the stock we scanned we get one with a wide bounzer band and lots of price action because as you can see the camels have been moving a decent amount you know every couple of days every five or so days we get maybe a 5% drop in the stock so when you have 5% drops that's where you can make one to 300% as an option trader now this is the hard part this is something I can't teach you right now but this is something that can change your trading forever i'ma show you what you need to do I need you to go in youtube and type in every one of these sentences and titles and watch videos on it I want you to watch videos on bullish candlesticks bearish and decisive inside candles common candles and then type that all the indicators read about them trade with them try to understand them and then lastly this is game-changing here understand charting and moving averages type it all into YouTube see what comes up because that's gonna help you turn your small account into a large account these are your evidence pieces to get into traits if you want to save yourself all the time you can buy my course with the link in the bio you'll get six months in my trading group you know I don't want to take your money but this is the quickest way for you to learn all this stuff because I see something on this chart that a small account could make a hundred percent from and if you spot it to congratulations but this is all you have to do we're gonna go to drawings and we're gonna actually draw on this chart so we're gonna draw a trendline and I see something about here that is obvious and this is five years in the making I've done this for a long time that's why it's obvious for me this is a trend line going down and as you can see we keep bouncing off of it and we just recently bounced off it right now so what do you think is gonna happen now off of this I do think we're gonna get a larger bounce coming into the market and the next couple days because of these three bounces and you know we could also argue that this could be a channel as well a channel going down a channel that could possibly be a touch to the top pretty soon so how much can we make with what options do we use what do I do if I have a small account is there all questions I'm going to answer right now so as you can as you can see the stock is trading at about $60 the top of the channel is going to be $65 about 66 that's gonna be actually a 10% move in the stock that is massive you will make a lot of money if you can nail that move and again I just talked about something very simple that is a channel it's a trend line and it's all in this charting section so you just type that in on YouTube and try to learn it trend lines are right here and then channels I still probably should add a video about that down the line but this is something that I think most traders can understand and eventually draw from themselves another piece of evidence I see in this trade is we have a Bollinger Band this Bollinger Band is actually holding price from falling lower so we have two pieces of evidence to tell us the stock is going to pop so here we are trying to figure out what's going to happen the first thing I say as a trader is how long is this gonna take and we're looking at the daily chart do I think of the next three candles so we can touch $66 I'm gonna say yes and because of that I think as an options trader you have to be more safe than sorry so multiply that by four let's say it takes 12 days to hit that price you go to your options section and you want to open up your trade grid or your options chain and like I said 12 days if you want to be risky you can go to 4 but that doesn't leave you too much room for error or sideways movement 12 days will be next week and again if you have $500 which you'd be looking slightly out of the money for these options so we're looking at calls right here and we're looking at the these ones are trading at let me actually go to Robin and I think it's just cleaner better to look at and again we're looking at Chris crisper and we're gonna look at those options so again if you have $500 we don't want to trade your whole account we just want to trade a third of it or maybe even half of it and I think as you get more money you want to have smaller and smaller percentages use per trade but as you can see these calls as we go further out are just about half of our account size so I'm going to use this 61.5 option trading at about 190 again our profit zone is 6 points away from here and just like I showed you before all you do is subtract 6 dollars from the 61.5 call that's gonna leave us around 56 dollars so I'm gonna go all the way down to 56 and boom that's gonna give us 520 that is a huge percent gain again it's about 250 is percent so 520 minus 190 so you're gonna make 330 dollars off of a $200 play about a 150 percent return actually I'm not going to calculate things on the spot don't quote me for this stuff but again huge returns off of a small account so just taking these just taking this one trade if you use two options basically a hundred percent of your account I don't recommend that you would have made six hundred and sixty dollars from that so your $500 account would now be one thousand and one hundred dollars roughly and just based off of everything I told you in this video the way to use your small account to make large gains is to scan for the right stocks to trade once you find stocks with wide Bollinger Bands plenty of room to move within the price then you want to understand what patterns you can find I'm going to show you one more trick before I stop this video because this is gonna change your trading forever if you have thinkorswim they have a powerful feature where they actually put the patterns on your screen for you now if the click is these show patterns button and sometimes you know they find places for them sometimes they don't and as you can see I click that button and they did put any patterns on my screen all of these patterns though they're possibly throwing on channels up channels down rectangles all this stuff should in theory show up if the algorithm spots it and TD Ameritrade but I just don't see anything right now is try to zoom out to the weekly chart where I don't see anything try the 4-hour chart and again don't see anything so this is why you have to be your own eyes in the market you have to understand how to chart how to read Bollinger Bands how to read moving averages price candlesticks if you can't you can't rely on the algorithm do it for you but in theory you know thinkorswim should throw this up if you type in the right ticker and the pattern should pop up so here we are with just a bunch of crazy patterns for the s py and if you like thinkorswim you're gonna love this 30-minute in-depth tutorial on how to use it in the video to the right of me check it out when you first get started out in the stock market the very first thing you have to figure out is which platform you want to start trading on and if you make the wrong decision you may be missing out on certain

Channel: Market Moves - Matt Giannino

Views: 21,349

Rating: 4.9280424 out of 5

Keywords: small account options strategy, small account strategy 2020, robinhood small account strategy, robinhood advanced small account strategy, option trading small account, best option strategy for small accounts, small account, small account options trading, small account day trading, small account trading, robinhood app, growing a small robinhood account, day trading robinhood small account, robinhood, stock market, day trading, 2020, small account 2020, matt giannino

Id: b23czxoJjRk

Length: 18min 48sec (1128 seconds)

Published: Thu Jan 09 2020