Small Share Size Challenge:

Where you can only use the amount a starter would be using. For me it was $5,000 Account.

 

    So this morning I was challenged to trade with a smaller account size than I usually do($40,000). I accepted this challenge for 2 Reasons. 

One: To figure out if size really matters or if it just affects your strategy. And..

Two: To learn a new way of trading because a $5k Account is very different than a $40k Account. $5,000 is harder to do the mental math when it comes to fast paced placing of orders. With $40k You can just multiply 0.1-$11 by a multiple and there ya go.

 

    My first trade of the day was $RELV. I was doing my morning research just like any day and I came along this stock that had dropped from $4.00 a share to 0.85! Like what does that? Especially in premarket? I put it on my watch list and when the doors opened it was just hovering around 1.00. I set a stop limit order at 1.16 - 1.12 (above the VWAP) When it triggered I was unaware until I saw it at 1.60. I got out with $1508 and $1478 Profit. So yes you can still make loads with a smaller account. But this happens when?...1/10 of a time? If I was using my normal account I would have banked $10k(yeah thank you very much, person who challenged me lol). 

 

     My second trade of the day was $NVFY. It didn't really know what it wanted to do, so it stayed at around $4.00 a share. Until it dropped and hit my stop limit order and it cruised along down to 3.85 where I took profits of $135. For this small account... and really any account $100 is pretty good to be taking on 1 trade. For my normal account it would not because I still have School and I can only trade in the mornings and get 1-4 trades in. 

 

     My final trade of the day was $VHC. At first I got a loss of $30 because I entered incorrectly so quickly got out. Once I saw it going back to where I was suppose to get in...I got in at 4.43 which it than came down to 4.17. I got out at 4.20 for $207 in profits. So I am up $1820 today with trading this account. That's almost average for my $40k Account. Plus I had an overnight trade that I banked $3200 from(Check my page to see updates everyday). So in total: $5000! I just doubled my money if you count the $3200 trade. 

 

     In conclusion, Yes. You can still bank with a small account but you need a good strategy. I can use my same strategy that I use for my $40k account but I had to modify it a bit. The bad side to it is it's harder to think of share sizes(on my wall as well). Lastly, you can compound this account from $5,000-$10,000-$20,000-$30,000-$40,000! I might open another account and try to do this......................Until next time. Bye Traders.