I recently reached two major trading milestones — $8M in career trading profits and more than $1M in 2020 alone… and the first half of 2020 isn’t over yet.
I’m on pace to have my most profitable year as a trader… ever.
After hearing about my trading success I received an overwhelming amount of questions from my readers, and one question I saw that kept popping up was, “Is it possible to grow a small account?”
The short answer — yes, it’s possible… but it’ll take dedication and an edge in the market.
Now, when I first started out trading, I was a recent college graduate drowning in debt. The worst part of it was the fact I lived in LA with a salary of less than $40K a year.
The thing is, I never had dreams of becoming a trader… I actually studied biology at UCLA, and when I graduated, I actually found a job at a real-estate firm — talk about a wild path. However, after staring at a mountain of debt, I knew I couldn’t continue my life in that fashion.
That’s when I found the stock market and saw it as my ticket out.
So I saved up $15K, which came from birthday money, my job, and just not splurging as a kid in his 20s. Of course, if you don’t know, a $15K account would be considered small in the market.
What’s worse is when I first started trading stocks, the market pummeled me and I lost about 50% of my account… and I even thought about quitting the game forever.
However, I knew as a trader, I would need to go through some growing pains along the way… I wanted to prove to everyone that I could make it in the stock market, even with a small account.
So how did I build a measly $15K into more than $8M in career trading profits?
I Played To My Strengths
Of course, if you’re just starting out trading, make sure you’re comfortable… and if you’re going to test any strategies — I think it’s helpful to paper trade first, then start off slow if you do decide to put real money behind the strategies.
What worked for me was I went through all my trades, and I figured out what worked and what didn’t. Thereafter, I just cut the losing strategies and focused on the winners.
Now, there was one commonality between my winning trades — they primarily focused on catalyst events.
Basically, I found reasons that a stock might move… and it ranged from corporate action, news events, earnings, upcoming catalyst events, etc.
When I figured that out, I realized I just needed to come up with a thesis, a timeframe I wanted to hold the trade for, and a detailed trading plan. If I knew this early in my trading career… who knows what would’ve happened and how much I would be up now.
If there’s one thing I could change when I first started out trading with a small account… it would be to only focus on a handful of trades and not try to be a gunslinger and become an overnight success.
Now, I pride myself as being known as The People’s Trader around here… and in order to help traders with small accounts — I want to teach them how to focus on just one single trade setup.
That’s when I came up with my strategy to uncover what I believe to be the best trade ideas out there.
Step 1: Find a catalyst that can move the stock.
Step 2: Pair it with a chart pattern.
Step 3: Develop a trading plan and execute it.
I call this strategy — Fast 5 Trades. My goal here is to get in and out of a position (it could be a stock or options idea) in 5 days or less, with double-digit returns.
If you want to learn more about my high-conviction trade idea strategy, then click here to find out what it’s all about.