The hardest thing to do in trading is growing out a smaller account, while the odds are stacked against you when being a trader as 90% of them LOSE money there are so many ways for you to get yourself in that 10% of traders who make money. Sure I was very fortunate my first trade netted me $92,000 in profits, although I tried to trade the same stock again on a dip and LOST another $15,000! But I learned my lesson, while I did get off to a nice start my $92,000 in gains quickly became $52,000 in gains. So I reviewed hundreds of my trades and seeing the mistakes I’ve been making over and over again I learned from them, and became a better trader from those losses. Yes, I have since made $300,000, currently up nearly $350,000 in 1.5 years, I now do not even trade with 10% of my profits so I can show people that you can grow a smaller trading account. $30,000 is a smaller account for me, bigger account for others, but in trading everything is about percents. I LOVE trading on a $30k account because it puts my back against the wall, falling under PDT is a nightmare, so every month I push myself and know I can’t fall under the PDT, while it is an aggressive tactic, it is working!
Some people say that I don’t have the crazy big gaining trades and my response is, if I was trading with hundreds of thousands of dollars, I’ll probably have those trades, but I don’t. The way I trade is part time, 90% of the time from my iPhone in school, so I trade looking for singles and doubles, don’t need Home Run trades that can possibly blow up your trading account. These are some of my tips:
- Always determine your risk vs reward before entering ANY trade if your risk is 10c and your reward is 10c do not enter that trade. Trading is all about finding superior risk vs reward on every trade, if my risk is 2-3c and my reward is 10-20c I’ll take a trade like that ANY day, so I can lose 2-3c up to 5 times, and one good trade will cancel all of that out. One the the biggest things I preach about is SMALL LOSSES ARE OKAY! You need to be very disciplined and cut your losses very quickly so they don’t amplify and blow up your trading account.
See Kahrlione’s AXN profit, banked 22% in ONE DAY on AXN! The greatest thing is I didn’t even trade AXN, I was so busy that day I totally missed it! My subscribers are applying what they learned and now know how to identify these patterns and profit off of it!
- Do not over trade, huge mistake so many new traders make, and even veterans. It is a mental mistake that is human nature, you want to trade, you want to make money everyday. It is probably the hardest lessons to learn but it is so vital to anyones trading success. It is okay to sit on your hands and have cash if the setups aren’t there. No reason at all to force a trade that you will lose on and opposed to making no trades and having no gain or loss for a day, you will leave that trading day RED. Only trade when the setups are there, let the trades come to you, trade the setups you like.
- Don’t be afraid to lock in profits, I am a very conservative trader, its okay to sell and take your profits. People get caught up in GREED saying this stock can run another 5-7c then I’ll sell, or well just freeze up. It is okay to take a profit, if you see a nice gain lock it in. One of my favorite quotes is, “You can never go broke taking a profit.” write that down and have it with you when you trade, use trailing stop losses, whatever it is just don’t be afraid to take a profit.
While this gain isn’t anything crazy, its someone trading with a smaller trading account, part time and successfully learning my strategy and applying it. I love seeing my subscribers succeed, and having the ability to impact them, Steven is up over $400 is his first three trading days using my strategy!
Trading can be very fun and profitable, but it can also be extremely stressful if you do not follow a strategy. I trade part time and was still able to grow my small account out by more then 25% last month alone. But my favorite thing is seeing my subscribers profit and become self sufficient traders because most of them trade part time as well! Here is access to my February recap video for blog readers and subscribers only click here!