Day 4 of the Small Trading Account Challenge | Ep. #4
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We have come to the end of the first week of the Small Trading Account Challenge. I’ve successfully grown this account by 106% and will start Monday with about $1200 in equity versus my $583.15 starting balance. One of the things I said on Day 1 was that the first 5-10 days would be the hardest. Right now I have to be so careful about which stocks I’m willing to trade because I literally can’t afford to make mistakes. One mistake could set me all the way back to square one. Fortunately, I’ve had a little bit of good luck this week. Out of 11 trades, I’ve had 11 winners. 100% accuracy is exactly what I needed to start this challenge!
Today I began to use scaling strategies a little bit. Buying in 2 blocks and selling in 2 blocks. This allows me to be a little more aggressive with position sizing, but it also doubled my commissions. Because I sent more orders commissions amounted to 30% of my profits today. I need to be careful about scaling too early because the commissions will cut into my profits.
Going into next week I will continue to be extreme selective about what I’m willing to trade. Trade the best and leave the rest!