Small Account Trading Challenge: First Month Overview

Introduction

Presenter: Cameron, a full-time trader with over a decade of experience.
Focus: Deep dive into growing a small account from initial deposit to over $166,000 in 20 days.
Purpose: To demonstrate the challenges and strategies in trading with a small account, especially in the first month.

Strategy: Essential for success; beginners should start in a simulator, not with real money.
Internet Accessibility: Trading has become very accessible due to the internet.
Systematic Approach: Traders need a clear, systematic approach for stock selection and trade execution.
Minimal Viable Product (MVP): For day one, a basic strategy is necessary.

Momentum Trading (Primary)
- Definition: Buy stocks moving up and sell at a higher price.
- Execution: Buy on pullbacks, sell higher.
Counter Trend Trading
- Definition: Buy low, sell when stock curls off the bottom, or short stocks going up.
- Complexity: Difficult for beginners due to the need to predict momentum shifts.
Range Bound Trading
- Definition: Profit from stocks in tight ranges using complex options strategies.
- Relevance: Not suitable for small accounts.

Criteria: Up at least 10%, high relative volume, news catalyst, price under $20, low float (under 10 million shares).
Volatility Focus: Necessary for quick profits; small-cap stocks are preferred.
Scanners: Use real-time scanners to find top percentage gainers.

Initial Days: Focus on building a cushion; start with small trades, 2 trades per day.
Cushion Building: Important to mitigate risk; account can be blown with one mistake.
Breakout or Bailout: If a trade doesn’t show immediate success, exit the trade.
Intraday Chart Analysis: Use five-minute, one-minute, and ten-second charts for entry points.
Daily Chart Analysis: Look for levels of resistance and support.
Trade Setups: Focus on pullbacks, dips, and breakouts.
Discipline: Essential to only trade high-quality setups and walk away after achieving daily goals.

Pressure: Both internal and external; important to manage emotions.
Emotional Cycles: Understand and manage frustration, revenge trading, and stubbornness.
Books Recommended:
- Trade Mindfully by D. Gary Dayton
- Thinking in Bets by Annie Duke

First Week: Consistent small gains; building confidence and buying power.
Scaling Up: Gradually increase position size as account grows.
Equity Curve: Slow, steady gains with occasional large wins.
Challenges: First phase (first week/month) is the hardest; focus on base hits.
Profit and Loss: High accuracy (80%+), good profit-to-loss ratio.
Experience and Confidence: Gained through practice, focus, and learning from past trades.

Warrior Pro Curriculum: Comprehensive course for learning trading strategies.
PDF Guide: Available for detailed small account strategy and broker recommendations.
Scanners: Free and real-time scanners to identify potential trades.

Key Takeaway: Base hits and disciplined trading are critical to growing a small account.
Additional Resources: Links provided for further learning and tools.