Today is day one of my brand new small account challenge. This challenge will commemorate me crossing a huge milestone in my trading career. Just last week, I broke over $20 million in fully verified trading profits.
So, I made this big announcement. I uploaded a nearly 2-hour long master class of my small account strategy that I built my entire career off of. And I said, "Guys, I'm going to demonstrate how it's done in real time.
Monday morning, I'm resetting my account back down to $2,000, and you can watch over my shoulder as I grow this account. " Now, as I laid out for you in that master class, I have very specific criteria for the types of trades I'm going to take, where I'm going to get in, and where I'm going to get out. Now, the market has been pretty hot.
So, guess what? Today, the account is up over 157% in one day. I more than doubled the account.
The total profit as of right now, $3,1494. You can see it right there. I traded three different stocks.
I took a total of four trades, and these were on stocks that were the leading percentage gainers in the entire market at the times that I was trading them. BOXL currently up 224% on 185 million shares of volume. AGRI up 130% on 100 million shares of volume and QLGN up 73% right now on 48 million shares of volume.
We've got a lot to cover in today's class. We've got the slide deck. I've got some live trading archives.
And for those of you guys who are going to be asking some questions about which broker I'm using and how I was able to day trade with just a $2,000 account, don't worry. There will be a link in the description where you can get info on all of that and more. Now, let's begin with a little bit of a breakdown of kind of where we're at on this challenge.
All right, so we're going to jump into the slide deck here. And when I pull up the slide deck, one of the first things I want to talk about is really, you know, the goal for this challenge. I set a goal that each day when I came in, I didn't want to risk more than 10% of the account and I hoped that I could earn 10% in growth.
So that meant my goal today was $200 and my max risk today was also about $200. Now, as it turns out, even though I funded the account with $2,000, the broker took a platform fee and so I actually logged in this morning with $1,995 in the account. So that was my actual starting balance at the beginning of this challenge, which is still very respectable.
So there's the profit. the three stocks I traded, four trades in total, 100% accuracy. Not too bad.
Can't complain about that. So, this is the account growth as the end of day one. Starting balance, $1,995.
That's the same as today's starting balance since today is day one. There's the total profit on the day, a little over $3,000. As you can see right here, this is important to note before commissions.
So, I don't have the total profit after commissions until the next day, but I can tell you what my commissions will be approximately. I'm not going to put it in here because to the penny it might change just a little bit, but it'll be pretty close. So, it's based on the number of shares that I traded.
So, I traded uh this morning 16,000 shares. So, my total commission will be probably about $5. That's not bad.
I can I can tolerate that. All right. So, that means the account right now is up 157%.
And there's my equity curve. It's looking pretty good. This is off to a nice start.
But of course, let's not get ahead of ourselves. It's only day one and I've got quite a long ways to go. And by the way, this is all part of a big fundraising challenge.
So, here's the update. For those of you guys that missed it at the when I made the big announcement and I upload the master class, I said that all of the profit that I make during the small account challenge will get donated to charity. But you guys have a chance to double that donation.
I'm going to give you the chance to help me match it. So, every single one of you guys who hit the thumbs up in this series of episodes will be contributing one additional dollar. And every single new subscriber will also contribute an additional dollar.
So, that means you guys right now, this is actually pretty impressive. You're ahead of me because over the last 3 days, because I uploaded the first master class on Saturday, we've already gotten over 12,000 thumbs up. So, you guys have already set the bar high that I've got to make at least $12,000 to meet your match.
So, now I'm trying to catch up to you. I'm currently at 3,000. We've got a combined total contribution amount or for charity of $15,3434.
So, help me set the bar high by hitting the thumbs up for this episode and being a subscriber to the channel. Now, for those of you guys that want to be watching me live in real time, don't forget there will be a link pinned at the top comment for a two-eek trial. So, during the trial, you can actually watch me as I'm trading and as I'm growing this account.
Okay, so now let's take a step back and talk a little bit about the actual trades from today. What you probably know if you've looked at my metrics and watched my episodes before is that the best time of day for me to be trading is in the morning. So, I sat down this morning bright and early at about 6:45.
I had the intention that, you know, well, you know, that I would start trading right around 7:00 a. m. and that hopefully there would be a couple of stocks that were on the scans that looked really good this morning.
So, my first order of business is to find stocks that are moving. These are my five pillars of stock selection. I already walked you through all of these in a lot of detail during that master class.
So, I'll put a link at the end of this episode to that class for those of you guys to watch it who haven't already. But just to summarize, I'm looking for stocks that have high relative volume, that are up at least 10% already, that have a news event, and that are priced generally between 2 and 20. The float should be less than 20 million shares.
So, those are the criteria that I'm using. Let's get into the scanners. When I sat down this morning, the scans were kind of interesting because we had some stocks that had made some big moves in the afterhour session back on Friday.
That was a little bit surprising to me. So, QLGN was one of them. This is a stock that began moving, as you can see, after hours on Friday and then boom, Monday morning 4:00 a.
m. right here, it shoots even higher. So, I did trade this and and we'll break down the trades I took on it, but this is one of the first stocks I was looking at uh pre-market this morning.
One of the second that I was looking at was BOXL. Now, BOXL also began a little bit of a move after hours, but really started to move in earnest in the early pre-market session. However, this right here is about 6:30.
And as you can see, it kind of sold off here coming into 7 a. m. We're going to back this up.
We're going to go full screen on it just for a second. And you can see this big spike right here was at 7:45. So when I sat down at 7 a.
m. , BOXL didn't really look that good to me. So what does it mean for something to look good to me?
Well, the stock needs to meet all five pillars of stock selection, but then I need to be able to establish where I'm actually going to buy and where I'm going to sell. And that's based on some specific patterns. Now, there were a couple problems with uh some of these stocks.
So, AGRI, this is a stock that I also traded, had breaking news, but you can see it began the move after hours on Friday, squeezed a little pre-market, and then by 7:00 a. m. it was selling off.
And then suddenly, boom, look at that move. Unbelievable. Okay, so that was the first trade that I took.
And we should probably focus in on this stock. Now, before we do, let me show you the actual example of the setup that I was looking for. So, I'm focusing on the micro pullback.
I'm going to read this to you in a second, but let me show you the micro pullback. So, stock popping up, dipping just for a moment, and then pushing higher. That's what I was looking for.
So, the first spike is caused by breaking news. The dip is just a momentary pullback, and then this is where traders come in to ride that momentum higher. So, that's what I was looking for.
Now, if you're asking yourself, why does this work? The rapid move up attracts traders and this is especially true when the move is driven by breaking news as it was in AGRI's case. Number two, the first pullback formed is by profit taking people who are maybe taking a little profit who were holding before the news came out and maybe some short sellers who are covering the position or or or who actually taking a short position hoping it drops back down.
But what I found is that if at least 50% of the move holds then we're usually in good shape for a move higher. Okay. So what does that look like?
So all of a sudden, boom, you get that big green candle. So now let's sort of draw an imaginary 50% retracement line. So as we start to dip down, and it's natural to expect a little bit of a pullback after a big move.
We dip down. If we drop all the way down here and we keep going lower, that's no good. I can't take that trade.
It's not going to work. All right. If it comes all the way down to the 50% retracement, and sometimes it could be, you know, over the course of a couple of bigger candles, it sort of drops like this and then like this here.
We'll just drop fill this back in and then the next candle bounces right off this level. Then I'm taking a trade down here and I'm okay with that and I'm looking for a move back to the high. I may be a little concerned about resistance at the high.
Sometimes that's considered a double top, but nonetheless, as long as it holds the 50% mark, I'm gonna I'm gonna draw the conclusion that the buyers are strong in this particular setup. So, holding the 50% mark and then for me, I typically buy that first pullback right here and I buy the second pullback as well. But after the first and second pullback, I want to be careful about not overstaying my welcome.
All right. So, in the case of um this particular trade from today, I'm going to back this up. I'll move my slide deck up here.
So on this particular trade today, AGRI spikes up. Suddenly we get this massive surge higher. All right.
So this is awesome. I mean, this is what we love to see. The only thing I'll say about it is that, you know, I I kind of it happens so fast that it can be hard or nearly impossible to be in like down here before the move because there's no way you would have known that.
Now, I'm going to remove all my drawings so you can see this better. So this is where I took my first trades. Okay.
So it pops up right here as you can see from 480 all the way up to 580. And then look at this. That is an example of the micro pullback.
It's sideways consolidation. You've got your support level down here. It starts to pop up.
It does kind of double top for a moment. It dips down and then it surges higher. Then it pulls back right here.
And that is another micro pullback. And this is the one where I was a buyer. I would have been happy to be a buyer right here.
I was just too slow. This thing moved fast. So it squeezes up, dips down, pushes higher.
So how did I even know this was happening? The way I knew this was happening was because of these scanners right here. So what these scanners are doing is they're searching the entire market in real time for stocks that are spiking.
Now, in order for a stock to be spiking has to be moving up a certain percentage with a certain amount of volume. You know, there's certain criteria that a stock needs to meet. But in this case, it met those criteria and we got that big squeeze.
So, let's back this up here all the way to 7 a. m. So 7 a.
m. boom, AGRI is on the scans as you can see right here. So, it's hitting the scanners.
It's pushing higher. Okay. So now what I'm going to do is I'm going to show you a little sneak preview of my live trading archive.
Now live trading archives are typically reserved just for Warrior Pro members, but I'm going to show you uh what this looked like. So let me just grab this video. All right, so this was day one, of course, today from the small account challenge.
All right. Now, by the way, before I show this to you, let me just uh talk for a moment about brokers. Because this trade that I took right here, how many shares did I buy?
I bought 1,527 shares. So, you're probably thinking, wait just one darn second. 1,527 shares.
And at what price did I get filled at? So, the price of that order was at $75 right here. So, wait one darn second.
Times $75. We're totaling out here over $10,000. Ross, you goddang liar.
You said you started with $2,000 in the account. Well, first of all, I said it was 100 1,995 to be exact. But I'm using a broker that offers margin and offers leverage.
So, I actually have times six, which means I have about $12,000 in buying power. So, for this small account challenge, my goal is to grow the account as quickly as I can. That means more money getting donated to charity.
This is a good thing. So, I'm going to use that leverage, but I have to use it responsibly. You always hear me say this, trading is risky.
Easy come, easy go. As quick as I can make a thousand bucks, I can lose a thousand bucks. And those numbers can certainly get bigger.
So the way I approach this is using this leverage. This is capital that I have at my disposal. So I have this capital right here that I can choose to use.
I don't have to use it, but I can choose to use it. So when I looked at this setup, what I said to myself was, what is my max loss? How much am I risking on this trade?
And so with an entry at about $75 a share, I was buying what's called the break of a whole dollar. $7. These are very critical psychological levels.
It's very common that stocks will run into resistance right around half dollars and whole dollars. So this was the whole dollar right here. This was just under the next whole dollar right here.
And so I bought right as we broke over seven. And I said to myself, I'm going to get in here at 705 and it has to hold seven. So, what that means is if it dropped back down and it looked like it was going to break seven, what does that look like?
There's a lot of selling on the bid. So, all of a sudden, you're seeing a lot of red going through, a lot of sell orders. Then I would exit.
Realistically, I might have gotten 5 cents of slippage and been out at 695. So, that means how much was I risking on this trade? Now, I'm a trader, so I'm always thinking about risk.
So, 1527 * 10 equals approximately $152 of risk. Now, it's true that I used about $10,000 of capital, but I was not risking $10,000 because in that moment, I owned something of value. I own something of value worth exactly what I paid for it.
Now, maybe I sell it for a loss worth 10 cents a share less than I paid for it, but more or less we're within the same range of approximately what I paid for it. So, my risk on this trade was $152. Now, if you watch my master class on how to grow a small account, I said that I would be focusing on 10% risk and 10% reward.
So, I'll risk 10% to make 10%. Now, that's that's being a little bit conservative. uh you know some traders are going to take more risk, some are going to take less risk etc.
But this is what I went with for this small account challenge. And so that means my goal was to makeund well to on this trade one to one riskto-reward. If I made $152 that would have been a good trade.
I actually did a bit better than that. So let's look at that trade. But this is also going to call into a question a couple of different things because I had a little bit of a problem on the execution.
Now, for those of you guys who are curious about which broker I am using and why I chose that broker, I will put a link at the top of this episode. That link will be uh it'll send you to a page where I have a standalone video that's going to talk about the broker I chose, which by the way, I have no affiliate relationship, so I don't get paid. There's no economic incentive for me to use this or for you to use the same broker as me.
I really don't care. But from an ethical standpoint, I want to make sure you're using the best brokers out there because when you use the best tools, it just puts you an advantage over traders who are using lower quality tools. So, I really want to encourage you to use tools that I think are some of the best tools out there for active trading.
So, make sure you check out that episode. Okay. So, where I bought here, uh, we had this little micro pullback right there.
And so what I decided to do was get in and I pressed the buy button at exactly, let's see, I pressed the buy button at uh $6. 78. Let me pull up my order so you can see it.
So if you look at my trades right here, these are my trading windows. Uh and this is a level two window. So this shows us the depth of the market.
So this is what I'm really using for executing the trades. The charts are helping me find that the exact entries and exits. And then I'm I'm pressing the buy and sell button right here and right here.
Okay. So, right here was where I took my first trade, or at least I tried to. I sent the order for what at that point was,500 shares at 678, and I didn't get filled.
Why? Well, it just popped up without me. It just went a little too quickly.
So, I'm using hot keys in my trading. And hotkeys, what they allow me to do is execute trades as quickly as I can press the buttons. So, shift one was the hotkey that I was using.
And what shift one does is it enters an order in this window using 90% of my available buying power. So that way I can see how many shares I could afford to buy. Now some stocks end up getting restricted by the broker.
So even though you have 10 or 12,000 of buying power in your account, they might say you can't use borrowed money on this trade. We think it's too risky. You can only use, you know, your cash balance.
And so I didn't want to trade a stock that was restricted to only using the cash balance because I that same trade would have only been like 200 or 300 shares. So instead times six, I want to use that leverage so I could take the 1500. So that was important because if I waste my time trading stocks I can only buy 200 shares of at this point in in my challenge, it's not going to help me grow the account.
And and the goal is to grow the account. grow the account, donate the money to charity, and show you guys how it's done. So, first order I send there, I type in my hotkey, I press shift one, and it comes up with um 1588.
So, 1,588 shares right here. And so, it fills that in there, and I'm looking at it, and by the time I clicked buy, in an instant, it was like 685. So, it jumped without me.
So then I I cancelled that order and I had to cancel that order because that order was using up my buying power. So I cancelled that order and then I pressed shift one again and immediately sent the order and I got filled at about 7:05. Now the prices you see here are based on the price of the order that as I sent it.
It's not based on my actual execution price. So when I send an order, I usually send the order to buy with an offset. So 10 cents above the current ask to ensure that I can get filled and 10 cents below the current bid to ensure that I get filled on the sell side.
So these include that offset. So on the first order I send the order for AGRI and I have to cancel it. So this order is sent, accepted and then cancelled and cancelled cancelling and canceled.
So then I sent a new order for 1,500 shares 1527 at 705 and I filled at 7:05 right here. So 705 was basically exactly where I filled and I filled the 1527 and then it immediately squeezes as you can see here up to a high of 789. It taps $8 and I was holding the full position.
So I didn't take any profit off the table. In fact, I was like this thing is incredibly strong. So I'm just going to give it a second.
it dips down and then when it bounces back up, I took the profit off the table sort of right here at about 760. Uh, and it was just before it popped back up here. So, I I kind of left a little bit of money on the table, but nonetheless, it was still a good trade.
So, let me show you. This is the clip of the live trading archive from this morning. Okay.
So, if we're looking at this here, uh, I'm going to put this on u mute just so it's quiet. So, I'm watching this um right here and I'm going to back that up. So, we're just going to back it up.
Okay, so AGRI has hit the scanner. I pull it up and I see that we've got the news catalyst right here. So, all of a sudden, boom, boom, boom.
I'm moving quick. I'm seeing the stock popping up. I'm wearing my lucky shirt.
Now, by the way, did you not know that this is my lucky shirt? It is. This is my lucky shirt.
I wear it for good luck. And I did think to myself, this is a really hot market. And I asked myself, you know, is there a chance that I could double my account in one day?
And I said, if there's a will, there's a way. Uh, but c certainly the only way I could do such a outrageous feat would be to double up on the good luck. So wearing not one but two of my lucky sweatshirts.
See, you you don't want to underestimate luck. It's it plays an important role. Now, skill is important as well, but a little bit of luck doesn't hurt.
So, I wore my double lucky sweatshirt and of course, as a result, direct result doubled my account in one day. So, AGRI um squeezes up here. Now, I guess um my video is sort of hiding my video in the corner, so you can't see, but if I hide that, you'll see that I'm also wearing my lucky sweatshirt while I was trading.
And there it is, confirmed. Okay, so we'll put that video back. All right.
So, uh, so I pull it up. I type in the symbol AGRI and I press shift one. So, see, it prepares the order at 678.
Now, at that moment, it was at 662, 666. So, it was at a price where that 78 was still okay. So, then I send it right here and it goes to 89 without me.
Gosh darn it. All right. So, I missed the trade.
Okay. Okay. So then I wait and I get in right there for the break of 7 and I said as long as it holds 7 I'm holding tight on this.
We go to 730. We go to 740 770 780 $8 a share. Oh my goodness.
So I'm up a,000 bucks on this right now. And at this point I'm so in the driver's seat. Okay.
So I sort of have two ways I can play this. On the one hand I could say the goal was to make $200 today. So, as long So, my mental stop, my max loss on this at this point should be $200 of profit.
So, if this comes back down to 725, I should sell the position 720. But, as long as it holds above that level, maybe I should let it ride and see what this thing wants to do. So, that's the approach that I took.
I said, let's let it ride for a second. Let's see what this wants to do. So, it dips back down a little bit and then it comes back up.
dips back down a little bit more and I'm like, okay, you know, this is to be honest, dipping down below the half dollar. It's a little more than you'd like to see it pull back, but again, I have a cushion on it. So, I'm holding and I'm watching it off 750.
And there you go, back to 770. And here we go. I take the profit off the tables.
It popped back up and I sold a little too soon. All right, it is what it is. I sold a little too soon.
As of right now, it's up 239%. So it is our second leading gainer of the day. The leader is QLGN which will end up being one of the next uh trades that I take.
So I So that was my first trade on AGRI. Now to watch the second trade on AGRI and to watch the trade on QLGN and to watch the live trade on BOXL, you'll have to be a Warrior Pro member. So I'm going to reserve those for the members.
But that gives you a little taste of that first trade. But no uh not to worry because I am still going to walk you through those other trades. Okay.
So, uh AGRI, I break the ice here. I get my first trade in and out. And in that moment, I you know, I I felt great.
I was like, there you go. That is the biggest green day I've had at $800 on day one of a small account challenge, I think, ever. I mean, that was a really fantastic day.
So, I felt really good about that and this was still going higher. So, I was like, okay, you know, let's keep watching it. So, it squeezes higher, as you can see here, up to the peak of 957.
Then, it dips down right here, and then it squeezes up again. So, as it squeezes up, I observed topping tail candle here, topping tail candle here. It peaked right here at about 1050.
It dips down, and this was my next trade right there. So, what I did on that, uh, that's a little bit of a more complex trade. Uh, but I bought I bought the dip right down here for first candle to make a new high and as it popped up to 1050, I took my profit.
So, that was my next trade right there. So, then it goes sideways right through here. It ends up squeezing up to 11, but I'm already out of it.
And I was wondering if it was going to pull away, but some topping tails. Then it dips down, but then rips back up really quickly. Didn't feel it chase.
It was starting to get a little more expensive. And then the MACD crosses into the negative. So moving average convergence divergence indicator, which I talked about in my master class, crosses negative right there.
And so I was like, well, that's going to be it for the time being. Maybe if it goes back to positive, I consider it, but for the time being, I'm done. So then I am sitting tight for a little while and watching QLGN.
So QLGN, this is a this is an unusual setup for me to trade. um and and partly uh even more so on day one of a small account challenge, but I was already up 1300 on the day. So, I had a nice cushion.
So, QLGN I was watching in this area. It was still our second leading gainer and I felt like, you know, it feels obvious. And so, I said, I'm going to take a stab at it down here.
So, I bought it had already popped up and popped up and so I bought down here. It ends up popping up here to a high of 950 which was great. Now again on this one it was a relatively small position about 1,500 shares but got that 3040cent move locked it up and just like that all of a sudden boom I'm sitting up now over $2,000 on the day.
So let's see the profit on QLGN $1,16. 81. This is a stock that uh more or less met all five criteria of stock selection.
the exact chart pattern was not as bullish as I would typically trade, but because the stock was up so much on the day, I felt that it was worth taking the risk and I had a cushion. And so now I was also thinking to myself, I'm up $1,300 on the day. My goal was 200.
So in theory now I can take $1,100 of risk on my next trade. If that pays off and I make $2,200, then all of a sudden this day is getting huge. and and so I could on the one hand continue to take progressively more risk on each trade as long as I can make sure I walk away with that minimum daily goal that I set for myself.
And so I sort of did that and then I said, but on the other hand, it would be pretty devastating if I go from up, you know, 1300 back to flat or potentially red. So maybe I should take my foot off the gas a little bit. So you know, that's kind of that that challenge that we all face.
Now, as the day has gone on, QLGN has uh sort of sold off. So, I haven't been super impressed with that price action, but BOXL ended up putting in a really nice squeeze right here. So, I pulled it up as it was popping and I thought, well, I don't know.
You know, I'm not sure if this is going to work. It had this high of four and it it curled up right here and it broke through four and I just I was like, I don't know. I've traded this one before.
It's has been choppy in the past. I don't know if I can trust it. It ends up breaking four, going to 450, going to five, 550 to 6, 650 to 7 to 750.
And I just watched the whole thing happen. I said, I can't chase it up here. I've got to wait.
That was the right move. So, it pulls back. It dips back down.
We had this ascending resistance line right here. And when it broke that level right there, I took a trade. So, that was where I got in the break of ascending resistance.
And that was a nice trade. We got a squeeze here up to about well a high of 867. So I still ended up making some money on it.
I didn't chase it here. I had to be calm, cool, collected, and wait for that setup. So that was a break of ascending resistance right there.
And then there was also, if you see the bottoming tail, I'm going to copy and paste this trend line to here. Back it up. And I'm going to show you where that was.
Going to go to auto. So that was right here. So this was our trend line that I was watching.
That yellow line, resistance, resistance, resistance, resistance. It broke it here. Then look, it comes back down.
It retests it and previous resistance becomes support. Bounced off that level and then it pushes higher. So really nice, clean setup.
I mean, this was solid. So, if you are curious about which broker I'm using for this small account challenge, make sure you download you check the link at the bottom of the description and pinned at the top of the comment where you'll be able to watch and download that standalone episode where I'll share with you my broker. I'll share with you my hotkeys and just break it all down for you.
For those of you guys that want to join in on this challenge with me, there's two things you can do. Number one, by hitting the thumbs up or subscribing to this episode, you're helping match the total amount of money that I'm going to be donating to charity. We're currently at $15,000.
Let's get that number as high as we can. Secondly, you want to watch over my shoulder as I'm trading, you can join the two-week trial for 20 bucks and watch these first two weeks of the small account challenge, which may be in this market the most exciting part. So, make sure you guys check it out.
And let me remind you, as always, that trading is risky. My results aren't typical. So, please manage your risk, take it slow, and practice in the simulator before you put real money on the line.
