Are you ready to start the year fresh and grow your small account from $500 to a million
in 6 months. Just kidding, there's none of that marketing crap BS here. If you want to
set realistic goals to grow your small account in 2020, here are the 3 important tips to
follow.
Remember that time when you followed taht alert and made a thousand dollars? And the
next day when you try to repeat the same thing but lost $2k instead? Believe me, i’ve been
there and done that.
As someone who has been through the same struggles and lost big buying breakouts and bag holding
losers. I wanna share some realistic tips to help you get started with growing your
small trading account.
Im confident to say that these tips will apply to traders of all levels from complete beginners
to experienced, to the lamborghini gurus who never lose.
And no before you ask, I’m never going to take 1000 steps back to grow my $500 small
account from scratch. Why would I do that? Unless I have a $5,000 DVD to sell.
So if you’re ready to start the year fresh and builld your small trading account, make
sure to destroy that like button to have a profitable 2020.
First and foremost, we cannot improve our trading in the future, for the rest of 2020
if we do not go back and analyze the past, which is how we did in 2019. And analyze both
our strengths and weaknesses.
For myself, after reviewing all my trades from 2019, I see that one of the biggest downfalls,
is not having the patience to let my trades work. A lot of times after 3 to 5 minutes
I get impatient with a trade and I either cut it for a small loss or a small win. Only
to see the stock breaking out and run 1 or 2 more points according to my original plan
after I exited the trade.
Maybe its because im a millennial im young, or so my grandma tells me, but i really need
to work on patience in trading, and probably the same way in dating.
Some really good examples are this CLVS long trade. If you are on my email list for the
free weekly watchlist, you probably remember me talking about this ticker once or twice
in my emails. And looking back, I had a really good read on the stock, and I was watching
and observing this stock for about 2-3 weeks.
But as you can see with a lot of my long trades on this stock, I go in to buy the dips and
sell offs, only to bounce it for 50 cents a dollar. And all the while the stock was
going parabolic on teh daily chart from $10 to $17.
And its the same thing with this BPTH and JMIA short. I didn’t let it work according
to my own plans. Only to see the stock dumping after I had already gotten out for a loss.
And I know what some of you might be thinking, its okay to take small losses or its okay
to take small wins, profits profit. But I think in the bigger picture. If you always
take small wins and small losses, and not have any big winners. Your true risk reward
ratio on your trading pattern is 1:1.
And ideally, we want a ratio of 1 to 3 risk reward, both on the potential trading setups,
and the actual wins and losses from your trades. So i think that's something worth making note
of. And fortunately, adding to make my winners bigger is one of my strengths from 2019.
It was a goal of mine at the beginning of 2019 to start adding bigger to my winners,
and cut my losers small with starter size. While my weakness is not being patient enough
to let many of my small losses and small wins turn into big wins, some of my most notable
bigger trades in 2019 were from adding bigger size to the winners when I recognize that
this is an A+ set up, and the stock has a lot of upside on the daily chart. Which allows
my overall risk reward on my trades to be a lot better than 1:1.
So my question to you is, have you gone back and reviewed your best and worst trades of
2019? Are your weaknesses such as chasing breakouts, not cutting losses quick enough,
or too biased at all times long or short?
And What are you strengths and things that make your bigger winners? Are you able to
switch bias quickly from short to long when a low float stock is squeezing with volume?
Or did you really digging into SEC filings this past year to add to your conviction when
playing penny stocks.
So its extremely important to go back and analyze how you did in 2019 with a birds eye
view. YOu want to lean into your strengths and enforce
them in 2020, while reducing your weakness and taking measures to prevent repeating the
mistakes thats creating those big losers again.
Let me know in the comments what are some of your strengths and weaknesses. Because
chances are, you and I all have had similar experiences in the past.
From Buying chat room alert,s chasing breakouts, bag holding a loser. Ive done it all. I’ll
be happy to provide some feedback from my own experiecne not as a guru, but as a trader
who is not perfect. And lets work on them together.
Now i know what you’re all thinking, ok humbled trader enough with the bad jokes,
what is that one strategy that will help you grow your small account? What is that secret
sauce. Well yes I will be talking about some day trading strategies that are suitable for
small accounts later on, i really think there bigger emphasis should be on building good
trading habits.
Which is a the next tip for growing your small trading account in the new year. And its one
thats the most overlooked in an ocean of quick easy money of day trading marketing. In my
opinion, there is no day trading strategy that is the secret sauce. There is only good
trading discipline.
Because lets be real here, it doesn’t matter if you have the best trading strategy in the
world, if you do not have the discipline to execute those so called lamborghini setups
or patterns.
The stock market is a beast that's ever changing, everyday there's something different, especially
when you’re trading volatile penny stocks. So it makes sense to keep the few things you
have in control constant and grounded.
And those things are, your premarket planning process, your morning routine before you even
sat down in front of your computer, and after you’re done for the day, do you have a routine
of reviewing your trades or going to the gym, or, watching Humbled Trader’s YT videos
and smashing those like buttons to guarantee you a profitable 2020.
For me, I have a rigid premarket planning process, which I shared in these 2 videos.
And in general I have a set daily routine everyday from 7:00AM market time to around
6:00pm, 2 hours after the market closes. Yes that does mean I wake up at 4am everyday on
the west coast here unfortunately. And i'm technically working 11 hour days.
I don’t know man, when I signed up to those day trading guru DVD’s they promised me
I can make millions of dollars working only 1 hr a day and trading from anywhere in the
world, drinking on the beach, driving in a lambo, or sitting on the toilet.
Now 6 years later, its just me, alone at home, with no beach or lambo in sight. I want my
refund. Ok ok to be fair, now i do own not 1, but
2 toilets, so those DVD’s are worht it.
So its important to establish a constant routine that you can repeat every single day, it doesn’t
have to be for the entire day like I do, because im OCD, and I have no life. But you should
at least have a routine for the hours that you are trading, even if thats just 2 hours
in the morning before you go to work or school. I had done exactly that myself, and I’ll
be making a video on that topic soon.
Also I highly recommend reading the book Atomic Habits by James Clear, which I mentioned in
this video recommending my top trading books. Give this a watch, it’ll help a lot with
your trading psychology and setting good trading habits for 2020.
Now the next tip i have for you to grow your small trading account in 2020, is to focus
on just 1 or 2 strategies or set ups that you are good at, and block out everything
else.
If you are a better long trader on low float penny focusing on bounce strategies after
a stock sells off to a previous support level, then just wait for those set ups to occur.
It doesn't matter if other traders are making millions of dollars on social media shorting
penny stocks or following chat room alerts, if that works for them, that's great. But
if that's not a strategy that makes you money, then its a potential distraction.
Vice versa, if you’re a better options trader who can make consistent money on covered calls
or naked puts on blue chip stocks, then stop jumping around from small caps or OTC’s.
The truth is, there are many different ways to make money in the market, but its too easy
for beginner traders to get overwhelmed by what everyone's saying out there and experience
analysis paralysis.
I had the same problem years ago, I started out by trading only penny stocks. I was chasing
breakouts one week, tryign to catch the falling knife and tryign to short paraboolics the
next week. I was literally everywhere but going nowhere.
Then i finally stopped. Took a step back, and went back to paper trading.
Only after I started focusing on one set up at a time, that I found that I was really
good at longing mid cap stocks that have positive catalysts such as biotech data and good earnings.
And thats what my focus was for the first year.
And while I was building my small account with that one strategy I knew I was good at,
I had another paper trading account open on the side and practicing to long small cap
penny stocks. And i would go back on Thinkorswim On demand to continue practice trading on
the weekends.
And thats my suggestion for you, find 1 focus and become very good at it, maybe its studying
SEC filings on penny stocks that have potential dilution such as at the market offerings,
and then swing those stocks short.
Become an expert at that one set up that you can repeat every single day, then only then,
start branching out to a few other strategies by paper trading.
The truth is, What works for other people may not work the same for you and I. You have
no idea the amount of messages and comments I get on a daily basis, telling me I should
try this strategy, this spreadsheet, or that im missing out by not trading options or buying
that amazing 100% success rate indicator.
We are all different traders. I trade momentum on small caps and mid caps from $1-$50 both
long and short, and thats what makes me money, and therefore is what I talk about here on
the channel. Thats my focus.
And thats the reason it’s almost impossible to copy someone else’s trading strategies
or mirror exactly their buys and sells. There is no strategy that’ll guarantee you 100%
success rate, 100% of the time. Unless, you have a chat room with thousands of sheep following
your buy alerts at high of the day breakouts. Nah… nobody with the most basic moral compass
would do that.
I have a few strategy videos here on the channel that is suitable for traders with a small
trading account. Such as the large cap gap up strategy and the longing the bounce set
up strategy. These videos shows you the general framework and some tips and tricks. But its
up to you to take pieces of what I talked about in the video, and fit them into your
1 trading setup that is suitable for yourself as an independent trader.
I will be making more videos on strategies and set ups that is suitable for both small
accounts and part time traders. So if you only have the time to trade 1 or 2 hours at
the open, make sure you subscribe and ring that notification bell. Because theres going
to be a lot of practical day trading videos coming soon, without any of that lamborghni
fluff, instead you jsut get some bad jokes.
As always, if you enjoyed this video, dont forget to destroy that like button. Also im
thinking of doing a Q&A video soon and will be opening to answer both trading and non
trading related questions on instagram story, if you wanan follow me there.