I Tried Day Trading w/ $1,000 AGAIN

it's been ten months since my first video on day trading with one thousand dollars and well it's time to do it again first let's do some housekeeping if you haven't watched my first attempt i'll add a little link up here but it is my most viewed video on my channel so i'm guessing you've probably seen it basically in that video i started off on a hot streak and grew my account from 1 000 to 3 600 before imploding so this challenge has been a spectacular failure but at least you know now what not to do also i got a lot of questions on that video even though i thought i covered a lot of these in the beginning of that video let me go over it one more time i will be trading futures which isn't subject to the pattern day trading rule this is a usa rule for margin accounts trading stocks and options that basically states that you must have at least 25 000 in your margin account to be able to make more than three day trades in a rolling five day period that means futures forex and cash accounts are not subject to this rule and that's how i can day trade just one thousand dollars second the broker i'm using is tradovate in my opinion their platform is pretty solid for trading futures there are commissions and fees but that's kind of the nature of the beast what i like is in order to do a day trade on the e-mini s p you only need 550 in your account whereas a platform like td ameritrade requires at least 6 600 third there are several things i did wrong in that video the biggest mistake was being over leveraged with only a thousand dollar account i shouldn't have been trading the nasdaq or s p e minis i should have stayed with the micros which are one-tenth that of the e-minis and then worked on building my account up while minimizing my risk fourth i was doing a lot of quick scalp trades on the nasdaq i was generally looking at such small time frames and i think i should have really zoomed out looked at the bigger picture to determine my plan of action i also didn't do much prep for the day before the market opened which is kind of vital for any successful trader to do and fifth when i'm in a trade you can see my position at top of the chart a red negative number means i am short that many contracts and a green number means i am long and it will show you the dollar amount that i am up or down in the trade right below and again the platform i'm using is trade of eight not an affiliate no referrals nothing in it for me just letting you know so since that challenge i spent the vast majority of the spring and summer learning and studying more and more mostly focused on stock options since that is where i am most comfortable and have seen the most success futures however is a completely different ball game and i haven't really dabbled much more into it since my last video on it so i reloaded my account on trade of eight with one thousand dollars to try and document the process one more time here we go [Music] all right we're now about 30 minutes in no trades yet just watching the price action and waiting for a good entry i start off my first day of the challenge trading micro nasdaq contracts which is 1 10 the size of your standard e-mini futures contracts all right got the first trade of this challenge done it was a an hour after market open pretty short and sweet on the micro and q lots my first trade was a small nine dollar win which i guess i forgot to screen record wow we're off to a great start but at the bottom we can see i traded four contracts paid 244 in commissions and fees and had a net profit of 6.56 after holding the trade for 34 seconds very small profit but um just wanted to take a little bit wait and see how the rest of the day shakes out next i tried buying two contracts anticipating a move higher and i didn't have my brackets set up correctly which automatically sets my stop loss and take profit levels so i manually exited the trade once it turned against me looking back at it i'm not really sure what i was thinking watching the playback of that trade i find pretty embarrassing but uh there you have it i took a 42 loss off a bad setup so i can't be surprised by that took another l and then the nasdaq broke below previous support so i entered a short position first with two contracts and as it started working in my favor i sold short and additional two contracts the yellow line on my chart is v-wop so my plan was to exit there as sometimes price can bounce off of it i ended up with a 74 win on that trade in hindsight i wish i would have maybe left one contract as a runner since the nasdaq dropped 50 points in two minutes and as you can see i left a fair amount of money on the table but i had a plan and i stuck to it so i can't really be upset with that that trade put me up one dollar on the day but after fees and commissions i was still down 11 i took another nice trade going short as the selling pressure looked strong and i was anticipating a retest of the previous low [Music] that was good for 25 after the test of the previous low i waited to see if buyers were going to defend that area or sellers were going to overpower them when price failed to break above the 615 level i shorted it again my profit target was one standard deviation away from b in retrospect i wish i would have entered closer to that rejection point at the moving average but that's okay we can see price bounce off of my target so i'm pleased with that scout this brought me up to about 73 profit after commissions and fees and then i took another trade short after price consolidated around my last exit unfortunately i got shook out of this trade i was thinking buyers were supporting that level so i just scratched the trade for close to break even and then it dropped 20 points like i originally was anticipating now unfortunately i over traded a bit and should have just walked away with a nice 7.3 percent gain on my account but i ended up finishing the day with almost 50 dollars in gross profit but because i traded too much the fees added up and i was left with about 18 in net profit the next day at market open i watched and waited to see if price could break out of previous resistance the buyers kept trying to push price up but sellers around the 15 600 level were too strong so i was ready to sell short took a quick seven and a quarter points in 12 seconds for a 29 profit i then took a trade long off of a pullback again i must have forgotten to screen record it but that was my last good trade of the day earning 34 after that i stopped seeing things clearly because i'm blind and took several bad trades and then i took a trade off the micro russell which in theory would have been a fine trade but price came down stopped me out and then continued on without me classic in hindsight it just needed a few ticks more in breathing room and i would have been fine i then took a revenge trade on it you already know how this is gonna go took a 50 loss there just took hit after hit that day and tried selling short near the end of the day but didn't get my order filled missing out on a pretty nice sell-off i closed wednesday off down 215 that one hurt thursday opened up with some selling on the nasdaq i sold two contracts right around v wap which looking back at this it was just not a good place to enter if i wanted to short it i should have done it around the 670 level so that i could exit the trade around b-wap watching this back in hindsight i just have to roll my eyes at my past self and learn from my errors starting with a 60 loss on a small account after a big losing day is no fun so i went down to trading just one micro contract and here i got the trade right this time i shorted this at the 666 level and exited just above vwop for 15 points it was a pretty unremarkable day of trading trying to catch moves throughout the day and either taking a small profit or more often little 10 to 15 losses each time i ended up in the red about 62 by the end of the day friday was kind of similar i realized i was falling into old habits of trying to scalp little moves instead of waiting for higher probability setups i get a little tunnel vision and look for quick little moves that really don't have the type of risk versus reward that i should be looking for i had a decent trade going short on mes but i got a little greedy and moved my take profit level to v-wop price retraced so instead of keeping my levels as is and taking a 60 profit i end up taking an 18 loss which was really disappointing i ended friday with a 54 loss so my first week back to the futures ended up being a disappointing one losing a total of 335 dollars and 90 cents for my 1 000 account next week i want to be more patient and wait for better entries to try and turn things around monday was fairly uneventful i took a couple of losses looking for the nas to drop lower but got stopped out twice for close to a 75 loss i didn't get any good trades on tuesday and ended up with another red day i didn't trade on wednesday due to some other things i had going on so when thursday came around my account was almost half gone [Music] and then it was half gone then i took a look at crude oil it was bouncing off the demand zone i had drawn out with my finest crayons i bought two micro contracts [Music] as the trade worked in my favor i'd moved my stop loss up to ensure i'd give back minimal profit i closed out the trade for 139 of profit i was pretty happy with how things went that day and ended up with a 70 win rate and a little over 100 profit after commissions and fees friday was another uneventful day i only took four trades and just about broke even so to end my second week i just about broke even on the trades but after fees and commissions i still lost 42 on the account i'll get them next time [Music] monday was pretty uninteresting tuesday was interesting but in a bad way and my screen recording software crashed after the first couple of trades but pretty much every trade just went against me i took 16 trades and lost 215 the next day i caught a little early morning breakout for a nice profit and took just one loss and kept that to only ten dollars i finished the day up 45.62 cents thursday and friday i traded pretty minimally i finished the week with a 55 win rate but my losses were simply too big i lost another 156 on the account my fourth week was kind of just the same as before my win rate stayed about the same but my wins simply just aren't big enough to outweigh my losses and all the fees associated with placing each trade far too often i'm getting shaken out of my trade and moving my stop-loss into profit far too soon and the main reason is i'm afraid to lose money while filming this challenge and that actually causes me to stop out of a winning trade for just a few bucks when i have a losing trade however i don't move my stop-loss which then causes my winds to be too small and my losses to be too big so a 54 win rate doesn't really mean much when my risk to reward is just too small week four ended down another 240 dollars all right another week of trading is over let's see how i did with my account dwindling dangerously low i dialed back the amount of trading i did i traded mostly micro es contracts i took a total of 10 trades and finished with a 60 win rate and a 73 net profit for the week since there's only two days left in november i decided to go ahead and finish off the month with monday and tuesday of the next week i locked in a 66 win rate but one of my biggest issues continues and that's taking these small little scalp trades where i move my stop loss just above break even and take these little gains which just racks up a lot of commissions and fees so from trading alone i had about 200 profit but it was far too many trades costing me 163 dollars of that profit which dwindled it down to just 35 and 52 cents of net profit for those couple days so after about five weeks of trading futures i traded my 1 000 account down to 307.86 for a total loss of 692.14 and honestly it was a pretty frustrating month of trading mostly because i realized what i'm doing wrong but for some reason it's been super difficult for me to correct these errors one aspect i found particularly in lightning was my actual gross profit and loss from my trades throughout this challenge i only lost 188 dollars and 25 cents for my trades the bulk of my 477.30 went to trade of eight and the and bankroll exchange fees that come along with futures i had a 58 win rate throughout the challenge trading really comes down to planning patience and execution throughout the day it really becomes a challenge of keeping your head clear and emotions out of the trade if you're afraid to lose you'll cut your winners too soon your stop losses may be too tight and in general it'll be hard to ever see any decent gains on your account when you trade like that but i will say having screen recordings of me actually trading and then going back through them it really helps me to see where i'm going wrong and of course having a journal where you track your trades and note why you entered a trade is all really helpful when you're trying to plug the holes in your trading on your path to becoming consistently profitable now i know this video was probably less exciting than my last attempt since i only traded micros this time around but with a small account it is important to have better control over your bankroll and not get too wild over leveraging for me i'm looking forward to going back to options trading but before i do i decided to go head to head with a professional features trader so you can see for yourself how a pro does things and i'm willing to make a fool of myself yet again for the cause so make sure you're subscribed here hit that notification bell so you'll be notified when that video goes live it'll be soon and if you do me a favor and hit the thumbs up button on this video that'll help ease the pain of my failures that's all for this one see you in the next one [Music] you

Channel: Daniel Inskeep

Views: 1,020,848

Keywords: personal finance, daniel inskeep, making money online, day trading, trading, stocks, futures, trading futures, daytrading, tradovate, how to day trade, stock market, day trading for beginners, stock trading, i tried day trading

Id: INdq_cb7L18

Length: 13min 26sec (806 seconds)

Published: Wed Dec 08 2021