What's up everyone? Alright, so in this episode I'm gonna introduce you guys to the newest member of the Hunger K club at Warrior Training his name is Jess and he's made over a hundred thousand dollars in verified profits day trading. The Momentum strategy that I trade every single day I Was able to meet with him in Miami last month he came down for an inner-circle seminar which was a lot of fun and I spent some time chatting with him. We even did a little interview which I'm going to show you some clips of during this episode and we were talking about the process of learning a strategy, the process of getting started trading what's which for him was kind of a funny roundabout way. and he's a pretty big seller on Amazon and eBay and he had a little bit of a scam.

What happened to him he had I Think he said he had over a million dollars in inventory and his account got froze so they froze his account I Think this was an Amazon his seller account and so all of a sudden he's sitting there with all this inventory, his accounts log and you know, the inventories in his warehouse. He has it, but he can't sell it and he realized how vulnerable he was because he was 100% dependent on that platform primarily. Amazon And so that's when he got into trading started to think that he needed to diversify his income a little bit. He's a really smart guy and he picked up on trading pretty quickly, but he made a lot of rookie mistakes, including one that he shares with with me during our interview where he actually had a trade.

He bought a penny stock and he was up over two hundred and fifty thousand dollars and he didn't take the money off the table, He didn't He didn't sell it, he didn't take the profit and it came all the way back down. He took one trade that he was hoping to become this homerun trade and it totally blew up. He eventually realized that to become a consistent trader long-term it's not about swinging for homeruns, it's about consistently hitting base hits. And so last month he decided to do his own small account challenge which is awesome.

He was inspired by a small account challenge that I did in this number which I was in the middle of when we were at our seminar in Miami And so what he did was he set up an account with the same broker that I've been using, the one the optional broker. He set up an account with a little less than ten thousand dollars in it, All right, and his goal was to see how quickly he could grow it. In ten days, he grew the account to over twenty four thousand dollars, averaging $1400 per day. So when I asked him do when he shared that with me and I was so impressed that I asked him if he would do a recap of that ten day challenge to take less than ten thousand and turn it into almost twenty five thousand.

And so he did it. He recorded it and there's a link right below in the description that you guys can click to watch his recount. so he's gonna break down the way he trades the small cap stocks. Now this is something that's kind of interesting and the reason I'm down here with a pool table.

So I was thinking about a little bit about how trading relates to pool kind of in a couple different ways. His small cap strategy is a variation of mine. He learned the strategy that I teach in the classes. He's of course watched me trading it over the last several years.

He's in the chat room, but he decided to put a little bit of his own spin on it and he trades less than me. He doesn't trade every single day. He's got a very specific criteria for what he's willing to trade, but when he takes those trades, he does really well and the results speak for themselves. A member of the hundred K Club which is fantastic.

And for those, they're curious The way we've set up the hundred K Club It's this badge of honor. So in the chat room, if you've made over a hundred thousand dollars and you verify it with your broker statements, you get that little hundred K Club badge next to your name. so every time you type people know that you're someone in the room that's actually made some money, some over at least over a hundred thousand dollars and hopefully you know what you're doing. So when it comes to learning how to trade, I Was thinking about playing pool a little bit because you know you come down here and every now and then it'll be someone that comes over the house and you know I set the whole table and and they've never played pool once in their life so you know the first thing is like shoot it you know.

So sometimes people lose so you need first you get a little technique of how you wrap it, keep it tight and then you know you'll have someone who's like, how do I start here wrong? No, absolutely not. That's not the way you play pool, but of course someone who's never played once in their life. They don't know better. Just like someone who's never traded once in their life doesn't know better when they try to.

You know, trade a penny stock. or you know TC stock. Those are the mistakes that I made. So it's a process first of learning.

You know kind of the rules of the game. how does this even work? All right? Well, you know we start with day trading stocks of real companies listed on NASDAQ Nicey. We start by hitting this ball first into another ball. You never want to get the eight ball in the pocket if that's what you're playing.

until it's until last You know that these are the things of course you learn as you play pool. And I would say like trading and like playing pool. Some people probably have a natural aptitude and you babe, maybe someone watching this video who has a natural aptitude for pool you know you've always been good at. Maybe it's the the math.

Maybe it's the angles, a little geometry. Whatever it is, it connects. Or maybe you're the type of person who you couldn't for the life for. You win a game of pool.

You don't get it, it just doesn't. It doesn't feel right. and trading is a lot like that. A lot of people pretty quickly will recognize whether or not they have that sort of natural aptitude.

Now if you have the natural aptitude and you feel like it's working, then it's a process of getting good of practicing. So let's go ahead and let's see what happens. Okay, there we go. All right.

we got one in, all right. So what are we? So we're solids era so we got this guy in the pocket. number four, good ol' number four. Now it starts to get into a little bit of strategy and so you know I have a strategy for trading right? I'll look for stocks that are moving up quickly.

just does the same thing we're looking for the same type of stock. With pool, you have a strategy. So now of course it's you know. Do you go for the easy ball? Do you go for the more difficult one? How do you set yourself up for the next? the next turn? These are the things that in my mind really relate to trading.

because it's strategy and no - no - pool players are going to be identical in the way they play. probably just like chess. No - chess players are going to be identical even if one learns from another. So I think you guys will really learn a lot from Jess and get a sense of kind of his spin on the momentum trading strategy.

and when it comes to scaling up a strategy of course for me. I Started in January 2017 with my tiny account right $583 I've grown it to over a million dollars and I have proven that even with a tiny account. Now although the results are typical and I have a lot of experience trading. For me, it was possible to take $500 and grow at first to five thousand and then to ten thousand, then to twenty five, then to fifty to a hundred and then from there it was just a matter of time before I crossed that million dollar level.

Sometimes traders will say Ross if you're such a good trader, why you know, Why did you start with fifty eight thousand and turn it into a hundred million And so I'm gonna answer that question and it's an issue of scalability. You can scale a strategy from a five hundred dollar account to a five thousand dollar account and even to a fifty thousand dollar account. but you will not see the same exponential growth. So in other words, from five hundred eighty Three dollars to a million bucks I was trading with an average of eight thousand shares.

So if I started with five thousand with a goal of turning it into ten million, I would have needed to have been trading with an average of a multiple of ten eighty thousand shares, right? Not Eight Thousand Eighty thousand. And if I'd started with fifty Eight thousand dollars and I wanted to grow it to a hundred million, I would have needed to have been trading with an average of 800,000 shares. And as you scale up, you start to see diminishing returns. So I've proven that it's not very difficult to scale from five hundred to five thousand dollar accounts.

That's fairly easy. There's a lot of liquidity in the market, but when you get higher and higher, your returns get smaller and smaller and smaller. In fact, they can even get to a place where they start to diminish because of slippage. So there is a sweet spot in the market.

There's probably a sweet spot with a lot of different things. There's a little bit of a sweet spot with how you play pool with how you play chess. and for Jess he's been building his strategy and kind of developing his own spin on how to trade momentum. There's definitely been a sweet spot that he has really found.

So what? I'd love for you guys to do and I'm gonna put in a clip right here of me and Jess talking in Miami about his journey and his strategy. So watch this and then we'll jump right back over here. Um well. I Started a few years ago with you guys I've been trading for a while now and there's a lot of hit and miss, you know, Big gains, big losses? Yes.

and so my turning point was when obviously I started with you and my trades got just very refined and once they're refined I could I could take those huge losses. it was huge, bid those big winners and really and shrink them down and even my twinners got small but with small losses? Yeah, yeah, no. and then from there I was able to focus on okay now I'm gonna I know how to take the small loss and if I start really accelerating like my large gains. Yep, yep, that's awesome.

Yeah, so you joined us having three years of trial and error and then how long did it take you after joining? before you start making money it was systole it was about I was I would make I would still make money but I would still lose money and from there I probably about a year maybe here in a few months and then I started really stacking on my profits. Yeah, and that again is you know we talked about that blessing and curse in the market that you know the the curse is that you can spend three years struggling to make even a hundred dollars a day. which feels like I'm not trying to drive a Lamborghini I'm not trying to aim crazy I'm gonna try to make a hundred bucks. Why is it this hard? And it's that hard because you won't make it consistently to that consistent strategy.

And then once you have it, the only difference between a hundred a day and two hundred or three hundred four hundred is slowly increasing your share size. You know, cuz now you've got something that's proven successful. Yeah, and that's a lock you like? Oh why only take you know, 100 shares? but I make a little bit like this? you can. You can take that and run with it and that's how you get to that nice neck.

So it just it's just share size. I Think one of the reasons that a lot of people end up failing is because they think because they're trading with a hundred shares that they should be making a hundred dollars a day. Really crazy When the reality is, if you're trading with a hundred shares and you're making twenty bucks a day, that's 20 cents a day out of the market. You take a thousand shares.

That's 200. Today you take 10,000 shares. That's 2,000 Now you're making half. Yeah right, You don't need to be making $1 a share out of every stock.

I Mean it depends on share size, but if you're trained with 100 shares and you make $20 a day at the beginning, it feels like you're not even covering the Asians And that's why people often adapt a strategy for trading with a tiny account. But it's I Mean essentially, they're trying to achieve something that even really successful traders typically. which would be, you know, a full dollar share out of market every? yeah? I'm such small size? Yeah, yeah. So when we were in Miami All right guys, Well this is the day that I was really afraid of.

Trading in small accounts is really difficult. Everyone knows that I Started with five hundred and twenty dollars in my account last week a week ago and today I had eleven hundred dollars in the account. I'd been making some good progress. The account was up over a hundred percent.

We know what happened today I blew up the account I got a little aggressive that stock hadn't watching for the last few days. I jumped into it and first I was up three hundred dollars, Four hundred, five hundred, six hundred dollars. Then those up seven hundred has up Eight hundred, nine hundred, a thousand dollars. Eleven hundred and I finished the day up $1300 Oh I Blew up my account.

You didn't think I really blew it up, right? I Blew it up a BB account in one day I Blew up my account which was pretty crazy, right? You guys who've been watching the videos for a while? you know what? I'm talking about in one day I Doubled my account. Now that's speaking of scalability in the market. I Was able to double my account in one day because the account was small and the stocks that I was trading had the potential to give me that that big move. So it was achievable.

That's scalability with a fifty eight thousand dollar account. Would I be able to blow up my account in one day? double it in one day. Probably not without taking a lot of risk. So if you want to consist growing account over a long period of time, you're not gonna be thinking about what kind of penny stock can I buy at ten cents and sell at 20 cents to double my money.

You're gonna be thinking about lots of small base hits and it can be a little bit hard at first to really embrace that mindset. But let me let me put it to you another way: how many thousand dollar winners would you need in order to make a million bucks? Do the math right. You make a thousand. A hundred times you've made a hundred grand.

You make a thousand. Two hundred times you've made two hundred grand. So it'll take you one thousand, one thousand dollar winners to make a million dollars. Now of course, in a perfect world, you would just have a thousand winning trades in a row and that would be yeah.

The reality is that you might have four one thousand dollar winners and then you might have two one thousand dollar losses and then four more one thousand dollar winners and a few more losses. It's always a few steps forward, a few steps back. That's how it's always been in my career. But if you focus on basis in you have the strategy down.

You've proven that you're profitable both in a trading sim and we're training with small size with real money then building a career as a trader. It's really a matter of time for all the students that are part of the hundred. K Club It's to me not really a question of will they you know, make a million dollars trading. It's just when that happens.

may take a couple years, may take five years, Maybe it takes ten years, but even if it takes ten years, that's still them making a hundred thousand dollars a year trading the momentum in the markets. So I Hope that Justice Story has inspired you guys a little bit. I've been so impressed with him. He's a really an incredible trader in a lot of ways.

He's he's better than me because He's more discipline I struggle with being disciplined. That's the thing that I struggle with the most. It's the emotions. So I'm really impressed with him I Hope you guys do click that link, download and stream his recap of turning an account less than ten thousand dollars into twenty four thousand in ten days.

Fourteen hundred dollars a day and he was trading small size. So again, even if you had an account with three thousand or five thousand, it's not to say you wouldn't be able to take a lot of the same traits. I mean I train on leverage I'll have you guys know that I don't think he was using much leverage during this challenge. so I hope you guys enjoyed his breakdown of his small account challenge.

and I will see you guys for the next episode. Of course we'll be back at it first thing on. Monday actually not. Monday Tuesday Morning Presidents Day is on Monday Alright, I'll see you guys on Tuesday Bye everyone! Hey, did you know that I Go live every single morning between 9:00 and 9:15 to stream my pre market watchlist.

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