x7 Dos and Don'ts 🤷‍♂️👨‍💻😉❓ of Trading in a Small Account

hey everyone what's happening in this video i'm going to talk about the seven do's and don'ts of trading in a small account much like trying to make a business out of a small food truck like this one right here it's certainly more difficult than a full-size food truck so trading in a small account it is not the same as trading in a big account and there are some important considerations that you need to make if you're in a situation where you're trading in a really small account whether it's five hundred dollars a hundred dollars or a thousand or maybe twenty five hundred whatever it is if you've got a small account this video is for you now to inspire you a little bit i'm gonna start a new small account challenge next week and i'm going to put a link right down in the description where you guys can check that out for those of you watching this maybe three weeks from now or a month from now or a year from now that link will get updated so you can get info on whatever's coming next so maybe it's another small account challenge i'm doing down the road maybe it's something else so check out that link if you want to learn a little bit more about getting started especially with a small account so let's start uh breaking it down here and before i do let me just reiterate as a reminder to you guys that in case you didn't know my results are not typical most beginner traders lose money most traders struggle and it's because trading is very difficult all right so um i don't want you to think that you're going to jump in and start making a ton of money on your first your first days or weeks with a small account because that would be an unrealistic expectation so i see some people tuning in here to the live feed thank you guys for tuning in i'm gonna go let the dog in the house and while some people filter in i'm also gonna do q a so you guys can start typing some your questions right down below all right awesome so you started with a hundred dollars good for you that's a very small account how much do i risk on each trade percentage-wise i will share that with you but let's start with uh the first of the seven do's and don'ts of trading in a small account so the first one is don't swing for the fences try to hit home runs or buy way way way out of the money option contracts or penny stocks that have a 95 chance of being worthless that to me is something that a lot of people have been talking about in the in the last year or so especially on something like gamestop you know putting a hundred dollars on a option contract that's so far out of the money with the hope of turning that hundred dollars into five thousand ten thousand or a hundred thousand dollars that's a lottery ticket type of trade ninety-nine percent of the time those trades will expire worthless you will lose a hundred percent of what you've put in it's a ho it's swinging for the fences hail mary home run pass sure when it works you feel like a hero but the majority of the time you're going to be a zero on those types of trades so if you're actually trying to start a career as a trader potentially swinging for home runs is not the way to do it so number one don't swing for home runs or put all your money into some way way way crazy trade whether it's a penny stock that you think is going to go to 100 or it's a option contract that to me is gambling and if you want to gamble there's things there you can go gamble but if you're wanting to be a trader you can't focus on gambling you can't be trying to turn this tiny account into a million dollars overnight that's not going to happen yes next week i will be streaming live as i get ready to do the small account challenge so every day next week i will do my live watch list for you guys so you'll be able to tune in for that those watching this a few weeks down the road or a few months down the road i may not be doing that right now but again check out the links in the description if you want to download my uh my ebook you can check out my ebook i've got a new guide to getting started trading you can check that out or you can just come over to my website warriortrading.com and you'll check out a ton of the resources and things like strategy terminology and all these guides that we put together for you guys who are wanting to learn more about trading all right so if number one is don't swing for home runs or go for hail mary passes then number two do take five or ten percent base hits now the problem that so many people run into as they say man i've got a 500 account taking a five percent base hit or a 10 base hit that's only 25 that's only 50 dollars what's what's even the point that's not enough money i'm looking to get rich and we'll talk about that in a second because that's not a realistic expectation my opinion and this is based on my career as a trader you know so take it for what it's worth you know i mean i'm my results are not typical i haven't had a typical experience trading but what has worked for me has been focusing on base hits day after day after day after day so five percent a day ten percent a day perhaps on each trade it doesn't necessarily mean the account is growing five percent a day because i may not put the entire account into one trade but focusing on these base hits is much much much more obtainable than trying to swing for home runs so for every home run you know where you you bought a stock at a dollar and you hoped it would go to ten well there were probably a lot of times where it might have gone maybe to i don't know a dollar fifty or a dollar twenty five and that could have given you a nice base hit and if you were holding for that home run you might have let it come all the way back down to zero right all the way back down to flat so taking those base hits lock it up and then look for the next trade and that also gets you into the habit of trading more frequently uh number three don't change a profitable strategy that you may already have to accommodate fees or commissions that a broker might charge you this is a really common mistake that traders make they say well listen the way i trade let's say in a simulator i make money in a simulator but i buy a stock you know five dollars and then i added 510 i added 525 and then you know i sell half at 550 and another half at 575 and another half at six so all of that is you know five or six individual trades if i'm trading with a five hundred dollar account all of those trades at let's just say five dollars a trade now i'm spending twenty five thirty dollars just on commissions and the trade only had a potential to make fifty dollars you know which would have been ten percent so traders will get in the habit of changing what is working to accommodate a small account or and one of the challenges with a small account is that usually your commissions are a disproportionately large percentage of your profits my opinion is that i have a strategy that works and it it does involve being very active getting in getting out getting in getting out and so since i have this strategy that works if i'm going to trade in a small account why would i change a thing i really shouldn't change anything i should just do exactly what i've been doing will commissions be a larger percentage of my profits in the first couple weeks sure maybe they will they probably will but as the account grows then those commissions get smaller and smaller and smaller you know to the point that where they are now which is that they're a very small percentage of my total profits so i will probably trade a little bit less in the first week first two weeks of trading in a small account i won't trade differently in terms of how i execute the actual trades but i won't take as many trades in total and the reason for that is because during the small account challenge i have to focus on the highest quality trades less is more so i'm going to focus on the highest quality trades which means i might only trade once or twice a day in my small account each day so i might take one or two trades a day and then i'll put the small account aside and then i can trade the rest of the day in my main account if i'd like to if there's other opportunities right but for the small account challenge less is more so i'm not going to change the way i scale in or scale out i'm not going to change my hot keys i'm not going to really change anything i'm just going to trade the very very best quality setups each day so the only thing i'm adjusting is the quality standard and that's because in a small account you know if i start to have losses i just won't have a lot of room before i'm going to have to add more money into the account so uh the fourth of the do's and don'ts of trading in a small account is to prove profitability in a simulator before you trade with real money this is a problem that a lot of traders they get over excited and they jump into the market with real money and as a result they lose because they've never traded before they don't even understand necessarily how to execute trades what routes to use how to set their hot keys they're just throwing money at the market and in my opinion while there's something to be said for learning by doing and there's some value to that one of the problems is that mo you will lose money in that process so learning by doing is fine but in this case there's an alternative which is just as good which would be to trade in a simulator before you put real money on the line so if you trade in a simulator for a week for a month maybe for a month and a half and you've proven not just with one like you know home run but you've proven through a series of you know five trades a day and you know several weeks of trading that you actually are consistently profitable then you're going to go into trading with real money with so much more confidence and confidence is important because we know that part of being a successful trader is mindset so having the confidence that you are profitable trader it sort of makes you more likely to be profitable which is frustrating because well how do you possibly get that confidence if you're not already making money and you get it by practicing in a simulator all right number five do not use leverage or margin if you don't know how it works we've heard these horror stories of people on robin hood and you know various other brokerages using leverage on a trade which means they're trading on borrowed money and then they lose it and now they're not just at zero they're in debt they owe their broker that money that's a that's a huge risk factor you do not ever want to be in that situation so if you don't understand how leverage and margin works you should not use it at all now for someone like me i understand how it works i understand the risks and i'm willing to take those risks i can also afford the losses so i'm in a different situation so you may see me do something like use leverage or margin which is not for beginners but something that works for me so be very very mindful about how you use leverage or margin all right number six do fund the account with a little more money than you need to give yourself a cushion so if you're planning on funding a 500 account see if you can stretch it to 700. if you're planning on funding with a thousand can you stretch it to 1200 or 1500. if you're going to go for 2500 can you get it up to 3500 or 4500 can you give yourself a little cushion because if you have the just you know misfortune that your first day or your first two days are red days that happens that's part of trading but you know you want to be able to not right away be up against the ropes where you can't trade anymore or you have to go and fund the account or you get a maybe in one instance um you could get your account auto liquidated where you go below the balance and then you just close out your position and so you didn't even have any room to work so for instance if you have a broker that has a minimum account balance of 350 dollars and you fund it with 350 dollars the second you get into your first trade just because of the spread if you buy a stock at 550 on the ask the bid is probably 5.45 so if it drops down even one penny you are below that brokerage's minimum account size and they will liquidate your positions so you don't even get a chance you get z i mean your your only chance would be that you got in something and it was immediately going up while you were getting in which we would love to have happen but that's just not the reality that's not how it always works all right so number seven do not expect to get rich quick or generate any significant income from a small account do it for the enjoyment of learning the financial markets and for learning the skills of what it takes to be a trader and it's proof of concept that you're understanding how to do it so you can fund a bigger account so let's get back to the food truck now running a business out of this food truck right here would be extremely difficult but could it be proof of concept could i bring this food truck right here down to the farmer's market and sit inside and could i sell baked cookies out of the front of it for two dollars each or something like that you know what i bet i could and i bet a lot of people would line up because this cool this thing is pretty cool so that could be the proof of concept to begin to reinvest right now if i go down there and it's a it's a flop i i sell no cookies then okay this all cost me a lot less than the full food truck so that's the whole idea with doing a um a prototype doing that proof of concept just testing it out does this even work now i don't have a i don't have a hot kitchen in here in fact i don't have wheels or even an engine but uh and i don't have a license in this case you know you probably need some type of license to serve food out of this i don't know i'm not really sure with trading fortunately the barrier to entry is is pretty low in fact it's a lot lower than a food truck i mean it truly is this is just like being honest now if you were going to talk about which had a higher likelihood of turning a profit a food truck or a trading account you'd probably have to say a food truck because we know that the vast majority of traders lose money but i don't know what the metrics are on food trucks maybe the vast majority of food trucks lose money too but we know that getting a truck painting it like this and you know doing it all up i mean that's got to be like 50 000 at least maybe 75 100 000 so what's the startup for a trading account the startup capital it certainly could be as little as 500 for a prototype but if you're actually going to try to make a serious go at it probably more like 5 000 7 500 10 000 you got to make sure you've got a computer you've got to make sure you've got good internet speed you know so there's some upfront cost maybe you buy a couple extra monitors things like that but all in i mean right now it again it's hard for me to say because my experience is so unique if i went in right now with maybe twenty five hundred dollars in computer equipment a computer and three uh monitors with two hundred dollars a month internet service and a five thousand dollar trading account i don't have any question that i would be able to very quickly turn that into twenty five thousand seventy five thousand hundred thousand and then just be smooth sailing from there but again my experience is not typical so it's hard to say what your most realistic startup costs would be for trading and given that most traders lose money you just know that you're coming into something um you know where you've really got a bit of a headwind so maybe let's talk about that for a second and so i hit the seven do's and don'ts of trading in a small account i wanted to kind of get those at the beginning and then do a little q a here and remind those of you guys tuning in and i see you on youtube thank you everyone who has tuned in and hit that thumbs up looks like over 20 of you have hit the thumbs up button which is awesome so now if you haven't already hit that thumbs up button it takes like a second um so i i want to remind you guys that next week so i'm starting my small account challenge in um in one week so a week well a week from tuesday so a little over a week but next week to get you guys excited for the small account challenge i'm going to live broadcast my watch list every morning right here on youtube so if you're not already subscribed to the channel make sure you subscribe that way you get the notification when i go live i do uh last year i did live broadcasts every morning for like i don't know it was like six months when we were in covet lockdown so you know i do have periods where i stream pretty regularly and then i have other periods where i'm traveling and not streaming as regularly so i've been traveling for sort of the first part of the summer i'm gonna be here for a little bit for the small account challenge and then i'm going away again uh in august so anyways so make sure you tune in here um for that and then yeah let's just hit some um uh so q a and i guess the the reason most traders fail so why don't you guys throw out a couple reasons that you think traders fail why do you think most traders lose money i can give you a couple of reasons off the top of my head the first you know and i've i've met so many people over the years that have talked to me about trading i the first is that they come into the market with no experience which was the same as me i came into the market with no experience basically i mean i guess that a little i knew a little bit about the market some people come in and they don't even maybe know what a stock is so i guess maybe i'm taking for granted what i knew coming into it but i came in without a lot of knowledge i certainly wasn't a um you know i wasn't like i didn't have my license i never worked at a hedge fund i didn't have like any of you know any of that financial education so i came in and i was overconfident and i threw money into the first penny stock that i heard of thinking that you know i would make a couple thousand dollars on it and the worst thing happened to me which is that i made money there's a a joke that i heard someone say um so question is uh when you go to las or have you ever have you ever uh do what is it um when you go to las vegas are you lucky do you have good luck he said yeah i have good luck i've never won and that's good luck because when you start winning and you start making that money you start getting a little greedy you get excited you start to get overconfident and it might in trading just be pure luck that your first trade is a winner because some of my first trades were winners pure luck but that got me hooked and then i started sort of chasing the the next big winner but i didn't know what i was doing and i started losing money and i lost on one trade i lost like fifteen thousand dollars and it was devastating it was for me at the time it was devastating and at that point i was like wow i've lost this much money i can't i can't walk away from this until i've recouped that amount of money and so i got myself off to a start in trading of this emotional roller coaster of trying to recoup losses and feeling guilty about how stupid i was to have lost so much money on a penny stock and so my first 18 months was just a lot of trial and error and it be the so for me i was able to afford to continue trading and that was partly because i was younger i didn't have kids you know i didn't have the things that maybe cost people a lot of money and for someone else might force them to say listen i i can't keep doing this not making money i got to go get a real job so i think that one of the second leading causes of failure if the first is overconfidence and jumping in the market with no strategy or skill then then one of the others would be the fact that they cannot afford the learning curve they can't afford to get through the learning curve of not making money a year and a half two years or even three years of not making money think about how much you're learning during that time if you work as if you have an apprenticeship if you're in you know a residency and you know you've gone through med school you know your first few years you're not making a lot of money at all you really aren't but you know you're gaining knowledge you're gaining this skill and you know at least in that career that that has a higher likelihood of translating into something long-term with trading there's no guarantee of that but at the same time you recognize that the more you learn the more you practice and the longer you can keep your head above water without blowing up your account the longer you keep your head above water the better the likelihood that at some point you're going to learn to swim that's not really based on a lot of statistics that's kind of just based on my feeling of of of the learning process and and how it worked for me so i was able to afford to keep my head above water for a long period of time while i was practicing and making mistakes but learning from mistakes and so on so forth now i would say another cause of failure is a lack of of aptitude and and perhaps lack of um actual um emotional and actual like intelligence there are people that i've met out there that you can kind of tell do not understand the market at all and and are just do not seem to move at a level where they could even maybe ever understand it and there requires a it's looking at the markets kind of like a mirror looking back at you and it's gonna tell you whether or not you're actually fit for this there is some basic level of intelligence both book smart um but also emotional intelligence that's that's required to be able to be successful and and not not everyone has it and that's something that you've got to kind of learn you know from your own experiences about is that is that the barrier um and i hear i see some of you guys commenting on fomo you know the fear of missing out absolutely i mean that that but that ties into emotion so the type of things that and i i this happened to me even on just on friday so on friday i was up forty four thousand dollars on the day which is phenomenal uh but then i lost 16 000 on my last trade so i was up only 28 000 and and i was feeling like man i'm only up 28 000 sucks i can't believe i just lost 16 grand on that trade and the trade i lost 16 grand on you know half an hour later it had gone all the way back up so i stopped out and then it went all the way back up and made new highs it actually went up like four dollars a share without me and i was like my god i cannot believe i'm the guy that lost that much on that stock only for it to go up without me maybe i should get back in maybe i should try to get back that 16 000 i lost and it took a pretty high degree of emotional strength and discipline to say it's not worth it it is what it is and i'm grateful for what i have and actually truly be grateful for that 28 000. is it 44 no but it's 28 and that's a fantastic day but chasing that win trying to get back that loss next thing you know i could go from up 28 to up 22. lose another six grand then from up 22 another trade i lose 10 grand now i'm up only 12. one more trade now i'm up only 3 000. then i check my commissions and i realize i've spent two thousand dollars in commissions over trading revenge trading i'm really only up a thousand on the day and then i realize i've gone from up 44 to up only a thousand and i'm livid i'm furious and now you've started this emotional sort of feedback loop that gets bigger and bigger and bigger learning to recognize that that is a trap that so many traitors fall into and learning to see it coming and say i'm not falling into that today it's so important now the fact is i will still at times fall into that trap i'll think that i'm better than that that i can i can i could try to get back maybe i'll i'll make back a little bit i could try to take one more trade and sometimes i'll finish the day back up you know 35 38 or even 40 or 50. i'll be back to my highs and i'm like okay i guess it worked but on those days where i start slipping lower and lower and lower i have to cut it before i give it back what is a very common experience for beginner traders i would say sort of this is a typical learning curve for beginner traders they start trading with real money they make a little then they start losing quite a lot they get frustrated they get disappointed and so they're like okay i need to trade in a simulator they stopped trading real money for a little bit they're down in the account but they trade in a simulator for a while they train the simulator they start producing some profitable metrics and they're like okay i'm feeling good about this i'm gonna flip back to real money they go back to real money they maybe have some good trades they start to get their groove they have like three maybe four good days or whatever this is sort of you know a story but you know i'm just kind of telling you sort of what i've seen happen and then on day five they all of a sudden are down everything they made in the last four days and rather than just cut the loss they refused to give back those four days because those four days represent emotionally that i'm turning the corner i've actually got something and taking that away is even worse than the money and so rather than just cut the loss they then hold and average down and then in that day big loss back to the simulator for another month good month good decent month and then back to real money and same thing happens again and you know what that's what happened to me when i was learning i didn't flip back and forth with a simulator but i would have five days eight days ten days of decent trading and then i would have one day where i'd give it all back so 10 steps forward and then you know 10 steps back in one day and it was so devastating and then i would you know i what i would always do is i would sit down and say where did i go wrong today where did things go off the rails and i would look at my metrics i would look at what i had done and i'd usually be able to say i should have walked away right here that should have been a red flag and the more times i i saw those triggers and ignored them but but recognized them after the fact the better i got at seeing them as they were coming towards me and so what started to happen for me as i turned the corner is i would have 10 green days or whatever it was not necessarily but you know 10 decent days and then i'd have one day where it was starting to go red and i would say you know what i'm going to stop it right here so instead of having given back all of the profit of the last x number of days i would give back maybe 25 of it maybe 30 maybe 50 and then i would start building again and then inevitably another 10 days out what 15 days out i'd have another red day you know a couple maybe two red days and i'd give some back but for me it went from um sort of being on this curve i'll just kind of go like this of sort of up and down up and down up and down up and down sideways to up and then down but not quite as much up a little bit more and then down up a little bit more and then down and it was sort of this really slow ramping back up and one of the things i've talked about a lot was my turning point was one of the last times i blew up a small well it wasn't it was a twenty five thousand dollar account but i took a five thousand dollar loss and it was the beginning of august and what happened was i had a goal of making five thousand dollars that month a thousand dollars a week right so if i could make 200 dollars a day a thousand a week five thousand a month that for me that was all i needed to live comfortably i didn't need hundreds of thousands of dollars just fifty sixty thousand dollars a year i know that's but that's what that was my goal at the time and so in the first week and i think it was a thursday or friday i just had a trade i don't really remember the trade but i just had a day where things went off the rails and i lost 5 000 bucks and so i was down 5 000 and i was devastated because my account was like right i think it was like 25 or 26 000. so now it was down at like 21 i was below the pattern day trader rule the pdt rule so i wouldn't be able to day trade and this was years ago before i even knew about offshore brokers so i wouldn't be on a day trade until i put more money in the account and so that night i poured over all my trading metrics and i was just looking like man what is going on why is this keep happening and what i realized was that the greed chasing those big winners had me trading a lot of really risky stuff i was trading a lot of like breaking news you know news would come out and i would jump right in it sometimes you'd hear news come out like let's just say you heard news come out that like warren buffett takes a stake in you know bitcoin or something like that you know something crazy like that all of a sudden you know that the market's gonna react to it so some breaking news headlines um you know really get the market going and so i was i was kind of always looking for these headlines because they could produce bigger winners and um i i lost sight of the fact that for me my consistency was on stocks that had a few things in common they usually had high relative volume they usually were gapping up pre-market which is why that pre-market watch list is so important they usually had um yes some some type of some type of catalyst not always though but usually some type of cattle they were usually priced between like 2.20 a little lower price they usually had a lower float and usually they were the leading stock in terms of percentage gainer on the day in the entire market and that meant that a lot of people would be watching that stock and if i just focused on those stocks and stopped getting distracted with the you know shiny objects over here and there i realized i would actually do a lot better and so i got myself to be more disciplined on trading what i i believed that i knew would be more consistent and that was the beginning of the turning point for me now it didn't mean that i didn't still have occasionally you know a big loss because i did but the time the space in between those big losses was longer because i was focusing on stocks that for me just seemed to be easier to trade and the profits were beginning to accumulate and so you know that was my learning curve that was stretched out over a very long period of time so i i believe if you're a trader out there who says um you know every six weeks or every month i seem to give back my entire profit of the previous month you are not alone and the fact that you had two weeks three weeks four weeks of generating profits that to me tells me that you're learning something because that can't just be luck if you have three weeks of trading every single day and you've you've got profit from it that can't just be luck there has to be some skill in there so now what you need to tighten up are the red days get them smaller spread them out as much as possible they will still happen listen you know a week and a half ago i had a 17 day consecutive green streak in those 17 days i had made about 350 000 i'll say again my results are not typical and just for the heck of it i'll put up my disclaimer here just as i begin to tell this story so i made 350 000 give or take in those 17 days and i was kind of trying to get a new set a new record of consecutive green days that's what i was thinking about consecutive green day record you know how many green days in a row can i have and so um when i on the thursday took my first trade or whatever it was and i was down 10 000 i was like this is not good um being down 10 000 after making 350 grand is insignificant in percentage-wise it's like 2 percent or whatever it's it's it's not a big deal but i was not willing to stop there i said no i refuse to stop there i'm going to keep trading the next thing i knew i was down fifteen thousand twenty thousand twenty five and then i took a big trade and lost on that big and i was down 37 000 on the day i fell into the trap the next day i lost 25 000. the day after that i lost 8 000. three red days in a row and in those three red days my losses were whatever 37 so round up to 40 60 65 63 so it's about 70 000 70 000 in three red days you know the these i talk about these numbers these are big numbers um you shouldn't assume that you'll you'll be trading at this level you may never trade at this level i have a willingness to take a pretty high level of risk some of the trades i take in terms of uh amount of money on the line will be hundreds of thousands of dollars in the trade now you'll see me when i do the small account challenge i'll obviously scale that down and i expect based on the last small account challenges that i've done that i'll be able to find profit through the small count challenge with smaller size be smaller profit but but yeah so i i do trade aggressively so being down 70 000 is like whatever it is what it is but in that in those three days i gave back about 20 of the profit from the previous 17 days so 17 really good days and then two big red days three red days and now i've gotten myself already back to you know high of high of the month in the last four days so i recoup the losses pretty quickly which is good but uh but it you know red days will happen and they still happen even to me so let's see um all right so let me do a little um qa um yeah you know the thing for me is once i start to get into that kind of aggressive mode i will start chasing low quality setups and it's like this isn't this isn't the market to be chasing low quality setups this is the worst thing i could be doing but you know i do it anyways and i just get more and more frustrated and it just turns into a downward spiral by the way i should say um i do not trade uh other people's money anyone that puts comments down below of like hey some people make imposter accounts of me all the time every day and they say hey send me your money i'll trade it for you my name is ross cameron and i do not invest money for any of my students i will teach you the strategies that i trade but i do not invest for you so anyone making that claim or pretending to be me and messaging you that is a imposter and they're going to ask you to send bitcoin and you'll never get anything back so just be mindful of that fyi public service announcement so um let's see so the gamer stream says i turned fifty thousand sorry five hundred sorry fifty dollars into six thousand and then into twenty five thousand and then found ross and have become a very disciplined day trader i owe a lot to ross as a um as a lurker here for years on the youtube channel thanks thank you for saying that good for you you deserve a pat on the back 50 is a tiny account it's great so do i swing trade the answer is no not really here's the challenge with swing trading while it's appealing for people that are still working you know full-time jobs and can't be sitting in the market it's really hard to generate like sort of like historical data on your strategy with swing trading because each each trade takes days you know or even weeks to unfold so it could take like a year of sort of simulated trading swing trading to really know whether or not you're profitable and then of course the market's always changing so you might have been profitable swing trading this year because of gamestop and amc in a simulator and then you switch with real money and we don't have those types of moves and then you're not profitable so swing trading for me feels like um it just feels to me at this point a little too a little too difficult to really have a high degree of confidence in based on just the challenge in the market sort of the uncertainties in the market that's just my opinion you know if you not to say that you won't see some nice traditional patterns but when you get into doing that on large cap stocks it requires more money so in terms of swing trading small cap stocks that's where i think there's always going to be a bit of a challenge so yes so the small count challenge i'm starting next uh in about a week is going to be twenty five hundred dollars uh i won't be broadcasting live on youtube for the whole uh for the small account challenge i just will be broadcasting that to my students at warrior trading i will broadcast them next week as we sort of get ready for that challenge my students already know which broker i'm using i'm not gonna talk about that broker in this video because my suggestions on brokers change from time to time but my students know which broker i'm using nice ashton it's all about following the rules he said you've inspired me to trade better to follow my rules and follow my trading plan if it wasn't for you my account would be nowhere thank you well it's you're the one there pressing the button so you um give yourself a pat on the back can i turn 20 into a million i don't know i mean twenty dollars the problem is the type of brokers i mean i don't even know which brokers would open an account for you with 20 bucks the the challenge would be the first i would say the challenge would be the first 500 you know getting it up to a thousand that would be the challenge once once i'm above that level then it wouldn't be um it wouldn't be too hard so increasing position size without being scared so that's definitely an emotional conditioning issue the you know if you're typically trading with a thousand shares going up to five thousand is it's five times bigger position size there's a lot more risk on the line it's gonna be more stressful so increasing slowly is in my opinion the best way to do it so going from a thousand to eleven hundred to twelve hundred to thirteen hundred fourteen hundred fifteen hundred just a hundred shares and it may take weeks but that's the best way next thing you know you're trading with two thousand shares and it's like no big deal for me i'll have days where i have 28 35 40 000 shares and it's it doesn't i mean depending on the stock obviously if i did that on gamestop i would be stressed out but on a lower price stock it doesn't doesn't stress me out really um let's see so if i trade for example a million shares in in one day and it shows six trades on that day then well let's just let's just say 10 trades if it says 10 trades just keep the number easy then that means i bought 50 000 shares and sold 50 000 shares so that means i traded 100 000 shares in one trade and then i did that nine more times so whatever your total number of shares is as long as you're if you're a day trader then it means you bought half of that amount and you sold the other half right so your both your buy and your cell count towards the number of shares you've traded thank you guys for tuning in thank you who have hit the thumbs up or shared this video with a couple friends looks like we've now got about 30 little over 30 percent of you have hit the thumbs up which is great thank you guys for doing that so options well i have traded options over the years i i don't gravitate towards them because here's the thing there's a opportunity cost you can only focus on so many things at once and while there is certainly an opportunity to trade cash secured puts or covered calls which or or spreads which would be my two favorite my favorite type of options trading those would have a higher degree of producing profit for me than trading far like out of the money calls or puts um the the amount of buying power that's tied up to take that trade those trades is usually significant with a a put spread or a cash secured put for instance unless you do it as a spread and then you just have the challenge of okay how much money is this actually going to produce and how much focus am i putting on it and that's taking away then from the ability to focus on something else and so since as a day trader i'm averaging right now about twenty thousand dollars a day for me to average even five thousand dollars a day with options trades i would have to be taking some fairly large positions we know that most options expire worthless so there'd be a lot of risk there even if i did cash secured puts or i did spreads it's just another thing to focus on so this is where i think it's good to try to be a specialist in your strategy and not try to do a little of everything it takes sometimes doing a little of everything to learn what you're good at and what is easier for you for someone else doing um weekly options contracts for covered calls or cash secured puts could be a great way to make a little money and that could be less stressful than trying to actively day trade the way i do so it's not to say what works for me works for everyone but that's just you know again just to answer your question of why i don't trade options more i think day trading vicky does require a high degree of mental strength because you get knocked down so often we all do as traders we get knocked down we have to get back on the horse you know if you have 10 green days and then in one day you lose everything you just made it takes a lot of mental strength to get back on the horse that next day and so i think that um yes day trading does require a very high degree of discipline a high degree of mental strength a high degree of emotional intelligence i don't think that i i'm not even where i am now um as solid in some of those areas as i'd like to be and i've been doing this for a long time so it brings into question for me whether i'll ever get to um the point of having just like impeccable discipline and i'll never chase a stock that's overextended you know i mean it's just it's very hard it really is it's a it's a big challenge you know trading um it's it's fun but um but there are certain certainly times where it feels very stressful and it's not a lot of fun so i think that you have to have a passion for it and that passion is what will keep you know keep you going through the the frustrating times you know for me having an amazing year like i had last year you'd think well gosh this guy's got no reason to ever be bummed out about trading he's you know big picture makes good money but you know in these little windows where over the course of three days i have three big losses and give back 25 30 of what i've made in the previous 15 days whatever it is it feels very you feel defeated you feel you've just gotten kicked in the face so it doesn't matter how many championship rings you have or belts you have or whatever it is when you get knocked down it hurts and it's not fun it doesn't matter what level you're at it's not fun so um you know but i i really do i enjoy trading and more often than not trading is gratifying because the market more often than not um at least um the way i trade it is um produces profits so momentum trading buy high sell higher that's my strategy i'm aggressive and um if we if we do go into a long sustained bear market or something like that or not even a bear market but we just see for some reason uh trading volume decreases significantly if we saw i don't know some new regulation the financial transaction tax stuff like that um you know that that could change the market i suppose but but those are all ifs and you can't just spend all your time thinking about that so right now the market's hot i'm going to keep trading i'm going to be aggressive i've got my small account challenge starting in a week those of you that want to learn a little bit more about day trading i'm going to give you a link here um let's see um where is it uh i'm going to give you i'm going to give you two links i'm going to give you one link right here to check out the small account challenge that i'm going to be starting in about a week let's see and i'm going to give you another link if you'd like to attend the replay of my last workshop my free day trading class i'm going to give that to you right here and i'll just pin that to the to the comments so you could actually watch that today if you wanted to at um 1 pm eastern it's the replay so that replay runs um right now every day and while it's running we're still inviting students to join our classes so we would love to have you join i mean i'm obviously biased about warrior i think we have a fantastic curriculum we've got the warrior starter class which is our introductory day trading course and we have the warrior pro course which is the sort of flagship class it includes the starter but also includes all of my advanced strategy development classes and we had a phenomenal winter school program that we taught just this last year recorded all the classes so all the classes in there are brand new and they just came out so well so you guys i think are really going to love that many of you are already students so i know you're tuning in here today but um so thank you for uh for for tuning in and your comments on your experience in the classes but uh yeah i we really try to go above and beyond to give you guys great experience and uh we've um we've been able to develop a fantastic community of traders who are all looking at the market in similar way looking for momentum and it's a really awesome community so i know you guys really enjoy it and i i enjoy tuning in every morning and seeing you guys so thank you for that all right so um i hope you have a fantastic day i'm going to let you go we've been streaming here for a little less than an hour so it's been a nice broadcast but i'm really looking forward to seeing you um in in the in the chat room i will be broadcasting tomorrow morning so make sure you've got your notifications turned on you've subscribed to the channel and hit the notification bell so i'll be broadcasting my watch list each morning this coming um this coming week as we get into the small account challenge starting the following week all right so any questions that i missed uh you can feel free to ask them during my next live broadcast which will be tomorrow probably around 8 30 8 45. okay thanks you guys i'm gonna put my disclaimer up one more time and i'll see you all tomorrow morning you

Channel: Warrior Trading

Views: 125,563

Rating: 4.944931 out of 5

Keywords: day trading, day trading strategies, trading strategies, how to day trade, beginner trading strategies, momentum day trading, stocks, trading, how to trade, stock trading, penny stocks, pdt rule, shares, float, volume, candles, profits, Wall St, finance, brokers, Ross Cameron, warrior trading, day trade warrior

Id: wNllo3gydng

Length: 53min 18sec (3198 seconds)

Published: Sun Jun 27 2021

Reddit Comments

[u/Niso81]

These are not accurate if the market you are trading in is manipulated.