Alright guys, so time for a midday market. Recap Here we are at the end of the week and this is a Day nine of the Small Account Challenge. So nine days in today is my second best day of the challenge. Yesterday was my best day with $1700 profit today.

I'm up seven hundred Ninety Nine dollars and 18 cents. So I'll finish the week with right under forty five hundred dollars in equity versus my starting balance on day one of Five Hundred Eighty Three Dollars, I'm up about six hundred and seventy percent at the same time I'm only about a fifth as a way to my first target which is twenty Five thousand dollars. So you know this is a marathon and I have been fortunate to get a couple of good trades here in the last couple days and that's definitely boosting up my buying power. You can see right here that my buying power is this right.

As of these gains is twenty Five thousand dollars. So I'm starting to be able to trade. You know with bigger size and that means that I can have days like today where I make $800 Pretty much you know easily in the first first hour of the day. So that's going to help me grow this account.

It's certainly going to make it easier for me, to, you know, build up the profits and make my way towards 25,000 But at the same time it also means that if I take three thousand shares or four thousand shares of a stock and I lose fifty cents, it's going to be a big step backwards. So you know this is the thing with trading if you lose half your account. If you go from a hundred thousand down to fifty thousand, you've got to go up a hundred percent to get back to where you were. So you know every time you take a step back, you've got to go twice as far forward in order to get back to break-even And that's the tough thing with you know having those types of setbacks is it.

It can take a really long time to get out of the hole. Now for me today: I Also finished my 29th consecutive winning trades. So you know that seems kind of ridiculous to have that many winners in a row. I Haven't had one loss in the share trader account, but it's because I'm employing a very specific type of strategy right now.

While the account is small, it's really important for me to get small winners and just keep stacking them up, stacking them up. So any time I'm up 20 cents I sell either half or the whole position. and to my staff at breakeven, that means if I get into a trade and it works even just 20 cents, it'll definitely be at least a small winner. Now for me.

I'm looking at setups that our momentum trades on small cap stocks priced between 3 and 10 dollars and I look to get in at the apex point. so you know on a stack like Na KD which we traded today which was you know, very volatile I got in this at Apex points where I expected breakouts and that's that's what we got. You know I'll show you one of the examples here. You know when I got in this you know for the break the first camel to make a new high right? here you know I got in at 310 expecting the break.

we popped up to 320. it didn't hold that level so I stopped out with about I think five cents of profit a small winner I got back in here for the break up to up towards 350 I got in, got a quick winner got out. So I'm getting in at the first camel make a new high of getting in at these apex points where I expect to see a lot of volume come into the name. if I get in and I'm wrong you know and volume doesn't come into the name then you know I'll take the loss and I'll stop out tight with 10 cent Lots But because I'm trading stocks that have really high relative volume I'm usually right and I'm usually looking at the same exact set up to thousands and thousands of other traders all around the world are looking at Na KD today.

let's just look any: KD has 11 million shares of volume today, so in terms of relative volume, it's got to be I can pull up my relative volume, leader scanner here, but you know it's going to be ridiculously high. It's probably one of leading relative volume stocks of the day. Let's see: I can pull this up in trade ideas. So volume relative volume leaders next.

and let's do it. Alright, so interestingly, let's see, we've got TB IO on there and D FF n. Let's want to make sure this is actually configuring for the right stocks. Just scroll down on this also and I've got to add some filters on this.

so let's look only for stocks between a dollar. Well, a dollar and ten dollars is fine. Cool. Stay next to learn Ten dollars.

So where's Na? KD Go alphabetical. Remember, relative volume is on a scale of one is average and you know anything above that is a multiple of average. So if you have a stock trading on five times relative volume is trading. Literally five times higher volume than it normally would trade.

I Don't know why this scanner is not working, but I can pull up I Could just scroll back here to mak D So Na K be trading on relative volume of 7600 times normal. That's crazy relative volume. That's crazy crazy high, right? 7600 times higher than average. So you know that that's a big deal.

And when I was looking yesterday at my trading stats, you could see that almost all of the stocks that I made a lot of money on in 2016 we're trading on five hundred percent or higher relative volume versus fifty day volume average. So you know that's me looking for that small handful of stocks each day that have the potential to make a big move to move twenty or thirty percent that have a catalyst. Or maybe they don't have a catalyst, but they're gapping up and this is what traders are going to jump on. You know it's not just me, it's thousands and thousands of traders around the world.

So traders, we're all looking for the same set up, those universal patterns, the bull flags, the flattop breakouts. If you just sit patiently and wait to get in for the first camel to make a new high, you know, on a pullback something like this. The place where you get in is typically where you're going to see a lot of other traders get in. That's where you get the volume spike, so it's kind of.

You know it's you just have to be a sniper with your entries. You have to dial it in so precisely really down to the penny that this is the exact price. I Want to get in this stock and here's my stop. It's a 10-cent stop.

If you're good at that, you'll do really well. Now you know. I've been in my shirt trader account really diligent about putting out profit targets taking half when I'm up 10 cents or 20 cents. adjusting that stops to break-even in my shirt trader account.

I haven't been as my speed trader GAM a big account I haven't been as aggressive with that I've been like yeah, I'll hold some of these positions and let them work I did that today on one trade on a KD and I was down like $3,000 in my big account. It came back up and I sold it for a $1700 profit. so you know it ended up working out. but I was definitely being a little bit more sloppy in that account while I focused on my small account.

And that's the challenge of trying to trade two accounts at once. When you divide your focus, not everything gets you know the best execution. So for me, I've got to do really well in the small account. That's where I'm putting the pressure on myself to perform and to be at my best.

Now speaking of putting on the pressure, yesterday obviously was a fantastic day. Best day of the year. Huge jump forward. $1,700 profit in a small account I was up 92% and I was thinking geez, Ross this is year you know As of yesterday it was like my 25th consecutive winning trade.

It's you know, day 8 of the hot streak. 8 consecutive winning days and here we are Friday and what is today? it's Friday the 13th and you know it's the end of the week And is this going to be the day that I go into the red and as I was getting dressed this morning I was like oh, maybe I should. Maybe that sweatshirt I was wearing yesterday was a lucky sweatshirt. You know maybe I should wear the same sweatshirt.

Maybe I should just wear the whole say the same whole outfit every the same. don't change a thing And you know traders I think can get a little superstitious kind of like you know, professional athletes. It's because we have to perform every single day we step up to the plate. We've got to be at peak performance.

We can't screw up. That's certainly the feeling for me that I can't have. You know I I mean I can I know that it'll happen. but I don't want to have a day where I go deep into the red and they make a big mistake.

And so you know today I was definitely feeling a little bit of that superstition. A little nervous just knowing that I'm I'm due for a red day I know that I am I'm due for a red day I'm due for a red trade and I know it's not going to take much to lose 400 bucks I mean it can happen so fast just as quickly as I made. you know 400 on those two trades I could lose it so that's the pressure. is getting to me a little bit, but you know I I'm wearing a different sweatshirt I'm wearing a different outfit and the good news is I'm closing the day green.

so day 9 is in the books. 29th consecutive wing trade up. six hundred and seventy percent on the small account and today I'm up about 20 percent. a little over 20 percent.

So this is a great way to finish the week. Monday we've got the day off Martin Luther King Day So no trading on Monday it'll be a short week next week and I'll pick back up on Tuesday You know, working towards that 25 thousand dollar goal and like I said, you know I'm only a fifth of the way there. So this is a marathon and if my target is to get to $100,000 I'm only five percent of the way there for four and a half percent of the way there. So these are you know, long-term goals.

But you know what? This is kind of what every trader needs to have. We're not doing this just to make you know ten thousand dollars by the end of the month so we can, you know, pay rent or something. I Mean we're doing this because we want to make a career out of trading the market. So you have to think of the long term.

You have to think of the big picture and you know my kind of long-term outlook that I talked about last night in my 2016 and view is that you know there are some things I'd like to do differently for 2017. I've set my goals of what I'd like to accomplish I'd like to improve my metrics I'd like to improve my accuracy. These things will take you know a little bit of time. It's not something I'm not going to expect that I'm going to be able to double my performance or you know, go from being sixty percent or sixty-five percent accurate to 85 percent accurate I'm going to set realistic goals, but at the same time I want to continue to improve I want to be someone who's trading and you know, thirty years from now.

I'm sure the markets will change I'm sure there'll be a lot of changes I'll have to adapt to. but I want this to be a career that I can count on for a long time and that means always working to make improvements. So I encourage you guys to do the same. You know, say well.

I want to make short-term goals? You know, my goal for the week, my goal for the month. But I certainly don't want to do something you know detrimental to my potential long-term career like mismanage risk in a moment of emotional frustration and then blow up my account and I'm out of the game, you know. And that's something that we all know. it's not hard to lose three four thousand dollars with my small account, the whole accountant be gone, and it would be emotionally devastating to have to go back to Square One.

I Mean it Really? it really would be at this point. I'm nine days in I've been building this account for the last nine days. You know. think of it.

you're a home builder and you've been building a house for nine days and then someone comes along and knocks it down. You guys start over from Square one. I Mean you can only do that so many times before you just lose your mind. and unfortunately with trading, that's something that will happen on a fairly regular basis.

We build up, we build up, and then we get a little step back. Little step backs are okay. we've you know, got to be able to handle it, but we don't want to let those turn into deep deep draw downs and that's something I talked about also in 2016 reviews. my biggest draw downs of the year and some of the challenges that they had in 2016 with my trading.

But overall it was a great year. two hundred, twenty, two thousand dollars and so at the end of the year I cleared out all my profits star my account $583 and I set the goal to make I can $100,000 this year. So even though I'm going to be making less money than I made last year, I'll be doing it from a balance of just five hundred dollars and trying to prove the fact that you can make a living with an account that small. It's not about how much money you have, it's about the skill.

So you know you'll hear me say that a lot. But it's really true and it's important that you guys focus on, you know, getting the training and realize that it's not about having a lot of money, it's about learning. So you know this is where we are fit. Coming here, finishing the end of the week and between my two accounts them up about fifteen thousand dollars this week.

It's a great week. Now last week wasn't so impressive. you know last week I had a couple red days in my big account over traded ET RM about the small account did pretty well. So this is kind of a big you know big leap forward here for the month of January which is awesome.

We've still got two and a half weeks or looks like ten the only 11 trading days left in the month. But my goal? you know my actually like I had said my goal for the month was four thousand five hundred dollars in the shirt trader account because that would have been the same percentage of growth that I made during the entire month of March in 2016. So I've actually already hit that in nine days. which means I'll just kind of set my target - I Guess 8686 hundred is the same amount I made in March last year.

So if I can make that this year. with half size account I'll have doubled my performance and that would be that'd be pretty cool accomplishment. So in order to get there I would need to make $2,000 next week in 2000 the following week. So you know, averaging about four hundred dollars a day for the next ten days we'll see I don't know I mean I might have days where I'm breakeven or maybe where I have a loss.

Hopefully not too big of a loss. but if I have a couple days like today where I double my profit target then that can afford me some of those slower days. You know at the same time I don't hit $8,000 that's fine. that's that's totally 100% like a it's an arbitrary number.

it's just you know I could put it anywhere bullet. Let's just say eighty six hundred and see what I can do. two more weeks, hopefully the trading will continue to be on my side. This month has been or really this week has been incredible with the momentum stocks.

I mean we had my OS we have Sgml We have Na KD today two hundred percent by o P Not the biggest move, but you know, fairly volatile as well. G lbs I mean we're seeing you know, trade after trade after trade. just going parabolic. So it's a great time to be building a small account and it's kind of what I was hoping we would see in January traders would come back from the holidays and you know, jump in and get aggressive and you know Now we're now we're seeing that someone's saying gee, Lbs is halted here.

Let's see what the with the news is Halted News pending? So you know this. This is the interesting thing as well. let's see and yeah Osiris Nine Days. Oh yeah I mean nine Today's Day nine because we didn't trade on Monday the second because of the holiday.

So today's the ninth day and we've only got 11 days left in the year or in the month. Sorry because the markets closed on Monday So that makes it a short week. So that's Nine, Ten Eleven. But one thing we saw today on Na KD which is always a little scary is that the stock was halted with news of a secondary offering.

And you can see here how all of a sudden you know the stock went from. you know, a nice move up from whatever it was two dollars up to just under four dollars and then back down. and then this candle. Here, it dropped quickly, the news halted, and then it resumed.

So having a stock come out with that kind of news in the middle of the day in the middle of the day that it's spiking is little unusual. Typically we see companies really set type in news after hours which is why I don't like holding overnight, but the fact that we're seeing those types of headlines in the middle of the day, it would be something to watch for. And now gee, Lbs is halted Also, pending news. and you can see here on this one you know big squeeze up from $3 to $7 I Mean give me a break, it's ridiculous 135 percent.

but you know what that is. It's an opportunity and you can criticize with all you want. You could say oh, it doesn't make sense. It shouldn't go up, it shouldn't go up and that's fine.

You want some on the sidelines and do that. I'm sitting on the sidelines today I didn't even trade it today, but you know I'm just saying that is an opportunity and traders who you know want to be able to capitalize on it I Guarantee you this is a stock that went from $3 to $7 There's an opportunity in there to take a thousand shares and capture 20 cents. There's 200 bucks. you can probably do it once, twice, maybe three times and get $600 out of the name.

You increase your confidence. You can do it with 2,000 shares. You increase your confidence, maybe 3,000 You can keep scaling up to the point where when you have stocks like this, they move 100 percent. You're making you know four, five, six thousand dollars.

and I'm sure they'll be traders posting on Twitter and whatever else that they made thousands of dollars on the stock today. I'm sure there's students in the room that made a lot of money on this one today. I you know I hesitated, hesitated on it a little bit and then miss what I felt was the right entry, didn't want to chase it I Also felt like I'd already totally hit my goal for the day. it's Friday 13 to feeling a little superstitious.

Let's not push my luck, just you know, take the money, get out of the market. Yesterday by far was the day that I traded the most in my shirt trader account trading six different stocks and I was on. Let's see which trade was it I was down $160 yesterday on Apop on the trade that I got in right around 690. I was down by $160 on that one and I was like okay, let's give it a second.

IRD was up over a thousand on the day so I was like if I take a loss, you know I can handle it. Let's just see what it does and immediately it pops back up and I sold that one for you know, $100 profit. So but I was starting to get into the point of the day where I was like I might be pushing my luck I might be getting a little too aggressive and maybe I need to, you know, rein it in a little bit and that's the thing. Once you have a day where you're up, you know a couple thousand dollars, it's easy to get a little flop because you're like, ah, you know what's $500 I'm already up.

You know, three grand? Where is? you would never do that on a day when you know you're only up for five hundred. So there's two sides to that. You know on the one hand, on a day when you're up a lot, you can get a little complacent. On the other hand, on a day when you're up a lot, you can start to leverage the fact that you've got this big cushion and be more aggressive.

And it's a fine line between which which one you're doing. Because when you decide to risk a thousand dollars, say you're up three grand. you're like, you know what this is a quality set up. I'm going to step up to the plate I'm going to risk 1,500 on it.

That's more than I would normally risk, but the potential for 2 to 1 profit loss ratio is that I'll make 3 grand. if I make 3 grand. that's going to put me up $6,000 on the day. And this is the type of day where you know I have the cushion.

I can afford to be a little more aggressive and you know so I try to do that on my best days and by using that type of mentality of you know when the markets hot be aggressive. I'm able to capitalize like yesterday. make $1,700 Yesterday is one of those days where I could have said you know what you're up to 300 call it a day, shut it down but instead I pushed hard knowing that yesterday was the type of the type of day that's going to really tide me over during a slow period I may have a day. very likely I'll have a day in the shirt Raider account where nothing meets my quality standard to take a trade and I will not take any trades that day.

It's better to be breakeven than to be red much better. So you know if I get into something and or if I you know, look at this. Anderson I don't see anything worth taking I'll sit on the sidelines and if you know, maybe I'll take trade to my speed trader where I can you know where I've got such a big buffer I can lose a little bit and it's not a big deal, but with a small account you've got to be so you know, just meticulous about what you're willing to trade. So disciplined and you know that any lapse in judgment can really set you back.

So getting to the point where you can have that type of self control, it takes time. it took me a long time to get here and I'm doing better even now than I did last year at this time. so you know even have even a year later. Every year every six months you're getting a little bit better.

A little bit better. So I Try to remind traders that you know if you're feeling like you're not performing at the level that you'd like to be performing at, just remind yourself that the you and six months is going to be a little smarter and a little better than the you of today. So just rest assured that you know you don't have to take those ten, fifteen, twenty thousand Cher positions. Now you know that the U of six months will handle them better.

So maybe you just say right now, I'm going to keep myself in kind of trade or rehab, keep the position sizes 2,000 shares and smaller and then you know, graduate from this at a set time in two months, I'll graduate to 3,000 shares and and just sort of slowly build your way up because if you go in, go in just swinging, swinging, swinging, eventually you're going to strike out. and I've kind of been thinking that with my sure trader that I should. Maybe that maybe Yesterday I was being too aggressive I was asking myself that you know but my first two trades you know were $200 profit each got myself up $400 on the day and then I had a cushion and next trade, 2,000 shares risking only 200 bucks. So I was risking only half of my profit I made six hundred dollars, made thirty cents and then I was up eight hundred and from then you know that last thousand was easy.

So you know I think that yesterday was fine. but I just don't want to use too much of my buying power and and do something crazy today I was looking at Na KB when I first came up and I put out my order I press shift 1 and the order went out or the order populates and tells me how many shares it's going to be. It prepares it and then I can press ENTER and it was like 10,000 shares I was like no, no, no, that's crazy Clearly my buying power went up overnight a lot because of how much I made yesterday now. I would have been able to actually get filled on that order because this was a stock under $3 so I wouldn't have been able to take that much size.

but it was a reminder that make sure you double check before you press that Buy button again that you're not going to ggressive and you're not positioning yourself to. if this goes badly, have a big step backwards. Alright guys, so so that's it for the week. Great job everybody! I Know a lot of you you know have been loving this momentum.

We've been having a lot of fun and I hope that it continues into next week and we can continue the month really strong. Alright so if you guys have any questions, feel free to ask again. I'm going to upload this to YouTube and it's going to go on the podcast on iTunes so you guys can listen in several different places and then ask me questions and I'll make sure I comment back Yeah! Tom a good pre market scanner I'm using trade ideas for the scanner and I I love it I mean they're great and Scotty yeah I'm using load not send for my hotkey script so it says yeah it says it says load so it prepares it and then it shows this little window and I can show you actually right here. All right.

So let's just press shift 1. So right here I Just pressed I just pressed the Buy button it's set trying to send an order for 14,000 shares and it says buy enter I've got a press the enter button to actually send the order and then I can press the escape button to cancel it out. So yeah, that's that one. they're prepared order and so I can see you know when I press that that shipped one with my hockey how many shares it's trying to populate and then I can tell myself too many or yeah, I'm okay with that.

Let's do it. It's game time, let's see and yeah Julie I mean for me: I was during the first couple days I was using max buying power and when I started with $583 I knew that if I had two losses or even maybe just one loss, I'd have to go add more money to the account. But you know that's the reality of having a very small account. you're You know you're right above the minimum, so you kind of need to get off on the right foot right away.

and I was fortunate that I was able to fortunate. But I also chose stocks that were the strongest and you know I was able to to make money. So I and I think that was a you know that was the the right way to do it. Just trade the best quality setups and then, but those profits quickly.

But yeah, when I first started, I had about six hundred dollars. five hundred eighty-three So six times six is thirty six hundred. So I had like you know, thirty four hundred dollars in buying power. Which meant on a three dollar stock, I could buy a thousand shares.

And so my very first trades in the small account. Let's see, I bought twelve hundred shares of a Llt and I made eight cents which was ninety six dollars and I buy a thousand shares of KP o R and I made five cents which was fifty dollars. So my first day I made a hundred and twenty four dollars after commissions 124 dollars start the next day at seven hundred bucks. The next day I took one trade on Evie Okay, a thousand shares made seven cents.

seventy bucks. Second trade was a thousand shares of Hm NY Fifteen cents I made $150 and I was up a hundred eighty-seven That was a good day. That was a great day for the small account. Needed that fifteen cent winner I Would've loved to have had twenty thirty cent winners, you know, but I just wasn't having any early on.

so you know I just continued to build the account. like that. small trades, small trades using all of my buying power. So I could buy a thousand shares with these three four dollar stocks, but keeping really tight stops knowing that if it drops down ten cents, I'm just going to bail on it.

Alright guys, so with that, I will let you guys go enjoy the rest of your day, enjoy your weekend, and I will see you all first thing on Tuesday morning. Alright, thanks guys! I'll see you soon. Let's be honest, if you made it this far, you must have really enjoyed that video. So what's stopping you? Subscribe right here and get email alerts any time I upload new content.

Until then. happy surfing.