What's up everyone? All right? So today is day three of the small Account Challenge. Now as you guys know, I got off to a really rough start on day one. Day one, I was so excited for the small account challenge. I jumped in, traded big size.

first trade was a winner, got back in for more, started losing, and then I just kept trying to get back to that. You know that that high that I was at, which was a little over a thousand bucks. I recognized stepping back that I was way too aggressive and that I wasn't approaching this in the right way for a small account. Now, granted, you can approach a small account in a million different ways and that did produce profit, which is good, but I think one of the goals here.

you guys as students and and those out there on Youtube and Facebook. You said Ross, We want to see you do another small account challenge. Let's see what you can do. I said all right, I'll do it.

So the idea here isn't really for me to trade just with a small account the same exact way that I trade in my big account. because what do you learn from that? So I think the idea here and what I've really honed in on the last two days is taking one trade a day. One good trade. That's it.

Discipline. Had one trade yesterday, made 274 dollars on it. It was a good trade. It wasn't a great trade, but it was good.

Uh, one trade today made eleven hundred dollars. It was a great trade. tomorrow. I don't expect to do as well as today, but I hope you do a little better than I did yesterday.

So if I make 400 500, that would be fantastic. Obviously I have to say that my results are not typical because I'm not a brand new beginner trader trading in a small account for the first time ever. This is my fourth small account challenge and I've been training for a long time, so I'm already coming to the table here with a lot of experience that equips me to trade this, uh, confidently, aggressively, and the profits that follow. If you're out there thinking about doing a small account challenge, you should assume you'll lose money.

With that assumption in mind, trade in a simulator before you put real money on the line, prove you have what it takes to make money, and then if you do, you can consider flipping the switch to real money, but only if you first proven profitability in a simulator. So with that said, uh, today was a good day. I'm I'm very happy with the profits and a question that I was kind of asking myself and I'll talk about during the recap is, how long should I keep focusing on one trade a day? I think it's the right approach for the first few days of the small account as I build it up maybe the first week or two weeks, but then at a certain point if I only take one trade a day, I am limiting how much profit I can make, The market certainly offers more than one good opportunity a day for my strategy on most days, and if you think about how to calculate how much profit I would make, it's my percentage of success, my average profit per trade, and then how many trades should I take. So if I only take one trade a day, then you know if I'm making 300 per winner, I'm making 300 a day if I'm making 300 per winner, but I take 10 trades a day.

I'm now at 3 000 a day or something like that. So you have to factor in your factor in your accuracy, but something like that, So you know I. I'm thinking that one trade a day is most important when the account is small, because it forces me to increase the quality threshold to focus on really good quality trades. So therefore, my accuracy will be higher during the time that I need it the most.

As I get further along, it's possible that I could get to a place where I could just actively trade because the account is large enough, the buying power has grown, and I can afford a loss if I have a loss because I got a little too aggressive. But of course I will also benefit from the profits that come with over trading. perhaps on some days, I think for right now for the rest of this week. Certainly, And for next week, I'm going to focus on one trade a day in the small account and then trade normally in my big account.

And that way I'm kind of getting the most best of both worlds. Uh, you know, at a certain point I might start being just generally more active in the small account, but then it's kind of like a small account in big account. I'm trading it the same way. What's really the point there? So the nice thing about trading in my big account if I'm trading in my retirement account is that those profits are tax free and that's a plus.

That's that's really a big plus. So anyways, um, that's the intro for my small account challenge. Recap Update: Day three. I hope you guys enjoy it.

Hit that thumbs up if you do and I'll see you for tomorrow for day. All right everyone. So uh, we're gonna break down the small count challenge. Uh, today is day three and I'm finishing up one thousand, one hundred, forty two dollars, and twenty two cents.

One trade on Dbgi, one entry, one exit. That was it. Very simple. Uh, this stock Dbgi uh, ended up hitting a high today of 880..

my entry was at Uh 662. So in at 662 and out at 705. that was it. Uh, so this one had news.

Uh, a headline. A Pr that hit right At 9am and it squeezed from six dollars to 691.. And you can see the headlines. There was this headline that was posted right here that I guess is maybe was an algorithm or something that picked it up because all of a sudden it spikes up.

So what I did on it is. I bought the dip. I bought the dip right here. At 62 it hit a low of 44.

I got in at 62. my stop was 20 cents. Well I was thinking initially 10 cents. but I knew this one.

I might have to give a little bit more room. So my account today and I'll just put up my account values had three thousand, One Hundred and Ninety Nine dollars. So this was uh, where my account sat today. Which means with six times leverage, I can day trade with up to nineteen thousand dollars.

So what I did on Dbgi uh, is I pulled up, uh, my window right here and I pressed shift one shift one twenty Six hundred shares 26.50 Well the order was actually, uh, it was a little bit less than that. Actually, No, it was. It was about right there because this is, uh, about the same price Right now. it's up 23 right now.

So I jumped in with in it with 20 25 2600 shares, my total shares traded are 23. Uh, what is it 2308? So or 5308? So 5308 divided by two. I'll just tell you, 5308 divided by two. So it was 26.54 that's how many shares I bought 2 654 shares.

So that was using about 90 of my buying power, which no doubt is aggressive. And what I have said, uh, generally with small account challenges is that you shouldn't be aggressive. You trading on leverage if you don't know what you're doing. So for most beginner traders and this is why my results are not typical, because I'm comfortable using that Leverage and most beginner traders would never be comfortable doing that.

which is the right thing. So the only difference there is that as a beginner trader, this might have been a perfectly acceptable trade, but your share size would have been much smaller. So while mine was 2500 shares as a beginner, you might have said I'm just going to do 50 shares. Maybe I'm just going to do 100 shares or something like that.

So I was in this at 62. It pops up here to 707 and I say you know what? Take it off the table. I took it off the table and that was my trade right there. done for the day.

I wasn't expecting it to be such a good trade and such a quick trade, but that's what it was. What's interesting is I did the same thing yesterday. I took one trade and it was a short trade. Also a couple a minute or a couple minutes long and I made 20 cents a share.

I bought 1200 shares of uh, the stock that I got into and I made 20 cents which put me up about 275. You know that was just how much the stock broke out on that setup. Today I took a similar setup, but I got, uh, 50 cents, almost 50 cents a share from 60 up to seven. So 45 cents a share? That was more than I expected and I was grateful for that and took my profit at that point.

I said, okay, that's my job. One trade a day, I'm done for the day. I'm not trading in a small account again and I didn't take any more trades. So I have two fees, two dollars for my buy order, I don't get charged for my cancel order and I have two dollars for my sell order.

So two trades, one entry, one exit usually and I had put a profit target order. but then I canceled it and just hit the bid when it broke over seven. So I I was happy with that. Now as it turns out, I sold Dbgi.

I suppose you could say too soon since it went all the way up to a high of eight dollars and eighty cents. So if I had held it through this pullback, above V app and into the open, well, I actually could have made like five thousand dollars on it. But that's not the small account way. the small account way.

is to get in, get green, get out. It's not to hold something for 15 20 minutes while it goes up to a high of 8 18 and then back down to a low of 743. There's there's no way I would have held up to that high and then back down to that low. That would not be the right way to approach a small account challenge.

So a small account challenge. One trade a day. Hopefully it's a green trade and if it's not, if it's a red trade, I just cut my loss really quickly. I get out and then I can come back to the next trade on the next day.

So today, if I had been read, I didn't want to lose more than three hundred dollars. Three hundred dollars would be, uh, ten percent of my account. So I was willing to risk about ten percent of my account. So with 2500 shares, I knew I was risking about 10 to 15 cents a share, roughly.

and I felt that that was reasonable on a six dollar stock. Uh, you know it did dip down there just for a second. Um, and then as it curled back up from there, it was pretty much in good shape. So I actually got in just before the dip and I was like, uh oh, this might be my first loss.

I had my hand right over the cell button and it didn't trigger my loss. and it popped back up and I said okay, good, let's let it run. So got that nice squeeze up to seven consolidation and then from there it continued. So I traded in the small account for one trade and then I traded the rest of the day in my main account and in my main account.

Did I trade Dbgi on that break of the open? You bet your butt I did. I'm up. Thirty four thousand dollars Dbgi 22, 000 carve 7 800 Carve left some money on the table for sure. Definitely left some money on the table on this one.

Uh, but I got green on it. You owe any. I got green on that one too. And cohn, I got a small trade on a lot of volatility in the market today.

So um, anyways, so that's more of the the large large account kind of main account. Very brief. uh, recap. But uh, today's day three in the small account.

That was where my focus and attention was on the first trade and I will be doing the same exact thing tomorrow. I will have a red day. At some point I'm gonna have a trade whether it's tomorrow or at some point next week. I don't know when, but I will have a a red day.

Not just a red trade, but a red day. So uh, the red day will be because I took that one trade. I got in it 660, it dropped down to 6 45 or whatever it is and I stopped out and that was it. I said, all right, I'm done.

I'm down 300 bucks. That's that's the luck of the draw. It's the way it goes. If I can continue to focus on good quality news Catalysts: This one was a Gaps third leading Gapper.

It was on the Gap scan had news everything else. If I can continue to focus on good quality catalysts, the right price range Stocks I think are very obvious in the market that traders probably across the entire market are watching. I think I will do well. I think my accuracy will be higher taking one trade a day.

you might say Russ. If you're doing so well with one trade a day with your small account, why don't you just do one trade a day in the big account? Well, for me to have made thirty four thousand dollars on one trade, uh uh. and in this case of a forty cent winner, it wouldn't really be possible. So I would have had to have bought like 75 or 80 000 shares and then 40 cents is like 30 000.

It's not really realistic. Uh, on some stocks it could be. but generally it's probably not. So yeah, you know, 100 000 shares and 30 cents? That's that's not going to work.

So at a certain point in order to make more, you do have to increase the frequency of how often you trade, but at the beginning of a small account challenge. And this is true for me right now because right now my goal is not just to show you kind of, you know, just for the heck of it how I would approach this, but it's also to grow this account. I don't want to blow up this account. I don't want to cut it in half in one day.

I want to continue to grow the account. I don't have much of a cushion here. I funded it with 2 500 bucks. I'm up 700 in the account before the trades from today.

So now I'll be up about seventeen hundred or eighteen hundred. Okay, that's good. That's good progress, but I need about five ten more days just like the last few days to continue to build up the account balance to build up that equity. So then when I have those first losses or I start trading more actively and then I have a day where I go from green to red, I can afford and sort of absorb that loss.

And it's not a big deal. So right now it's definitely the time to be disciplined in my main trading account. I can afford to. You know, I can afford to take a 10 000 loss, a 20 000 loss.

I can afford to be really, really aggressive, fly too close to the sun and be up 75 000 and then lose half. You know those types of things can happen to me, and they do happen to me. So the decision there is Um for me. If I was willing to make less money, then yeah, I guess I could just take one trade a day in my big account.

But most most day traders, once you get into the groove, you're going to probably trade more than once a day. But again, having said that, depending on what you said is as your goals, one trade a day and limiting yourself to that could be a really great um, you know, approach for discipline. I take one trade a day. That's it.

One trade a day. And clearly you know with a three thousand dollar account, to have a day like this for me is pretty pretty darn impressive. I'm I'm pretty happy with that. That's a 33, uh, growth in the account in one day.

Uh, again. Disclaim: Again, my results are not typical. This is my experience trading. I've been doing this for a long time, so you shouldn't expect that you're going to have that same success.

You should trade in a simulator, practice in the simulator, and then if you start to find success in a simulator, that's when you start to think about flipping the switch and going live. But I do think there might be something to capping the number of trades. but I also think that for someone like myself over the last year, if I had capped the number of trades I took, you know to three or four trades a day, I just I know I would have made a lot less. And I think most active traders.

I think probably if you have active traders that are working at some like you know, fund or whatever where they're doing a lot of active trading, they're going to trade a lot more than just once a day. they're going to be trading a lot because they know you know at a certain point it's what's my accuracy, what's my profit loss ratio, and what are my average winning trades. And then the question is okay to make more money. There's two things I can do: I can trade more frequently, or I can increase the share size on every trade I take.

You can increase your share size up to a limit and then you just start to cap out on how big you can go. And that could be based on your account size based on the the price of the stock, the spreads of the stock, et cetera et cetera. So the one that's um, you know you have to kind of decide where you're at if you were starting with 100 shares. In my opinion, to make more money, your approach wouldn't want to be just to take more trades, it would be to increase share size.

But once you've hit 5 000 or 10 000 shares, then it may be a very real consideration that to make more money, I need to trade more frequently so I don't know. I'm just thinking out loud, but uh, this is day three of the small account challenge so a good day. I'm happy with it. Very similar as yesterday one trade and that's it.

I'll do the same thing tomorrow, so thank you guys for tuning in. I'll be back at it first thing tomorrow morning. All right, see you in the morning And that right, there was an entire video with no ads. I don't monetize my Youtube channel with video ads, which means you guys get to enjoy the content.

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