Small Account Beginning

Hey everyone, thanks for taking the time to follow my trades. Accountability is a huge help to my trading, and if I know my trades are public, I’m way less likely to take a stupid trade (not saying I still won’t lol).

Started with $2,855 on January 5^th

Goal:

Grow my small account to $30,000, although I don’t have a specific time frame in mind. I’d like to do that by the end of 2019, but will take as much time as I need to because I don’t want a time frame to affect how I take my trades. I will be as patient as I need to be, especially in the current market conditions.

Setups I am focusing on:

1.      OTC first green day – I’ve been having the most success with this pattern. Must be trading well above average volume, must have held a support level throughout midday, and must be closing strong near HOD

2.      OTC multi-month breakout – only when breakouts are working. Will watch for confirmation, then buy a pullback after the breakout. Again, must be trading well above average volume.

3.      OTC morning panic dip buy – I’ve only had experience with this setup once, so I will track these a few times before I decide to try it again.

4.      Low float listed stock, late day VWAP hold, having a volume perk (tight risk) – same as above, I’ll test this setup with small size and keep a tight stop before I decided to up my size.

I will focus on these patterns and these patterns only. Also, I will not chase these patterns. If I do not get in where I want to then I’ll wait for another setup, they repeat themselves all the time.  

I will pick my trades and size appropriately based on a multitude of things:

1.      How high is the current volume compared to the average volume? How high is it compared to last time the stock ripped?

2.      Is the stock liquid, easy to get in and out of?

3.      What is the risk/reward? Can I get in at a good price near support? Does this stock have room to run up?

4.      Is there a catalyst?

5.      Is it in a current hot sector? What are the current overall market conditions?

These are all very important points to consider before I take a trade. If a stock doesn’t meet most or all of these, I will size down or not trade it at all.

My plan:

1.      Trade the above setups with appropriate size. Have a set risk/cut point BEFORE I TAKE THE TRADE. If it comes down to my risk/cut point CUT LOSSES. Cutting losses quickly is vital to growing a small account. “Its ok to be wrong, it’s not ok to stay wrong”- Tim Grittani

2.      I will not chase. If I don’t get the price that I planned then I’ll skip the trade. These patterns repeat themselves all the time, I will not chase a setup and have a bad entry.

3.      I will reward myself and take profits along the way. If I pay myself along the way, that will relieve some of the stress that comes with being in a trade. Also, this allows me the opportunity to move my stop up to my entry price, so that if the stock comes down, I can break even on the remaining shares, and still have a profit on the name. A lower risk, stress free trade.

4.      Be patient. I must adapt to market conditions and sector shifts. I will stay patient and if my setups aren’t working, then I will not trade. This is a marathon, not a sprint.

Sticking to the plan is the most important thing. It’s ok if I lose money as long as I stick to the plan. The plan is fool proof. It is a method. The plan will not lead me astray as long as I stay disciplined. Following this plan will ensure that my wins are bigger than my losses, and with that, my account will grow.