Day 2 of the Small Trading Account Challenge | Ep. #2
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Alright everyone today is day 1 of my penny stock trading account challenge. The penny stocks I’m trading are all going to priced between $1-3, but I’ll also trade stocks between $3-10. During the next few weeks my sweet spot will be stocks priced between $3-4 because I will have 6x leverage with my Suretrader Account and I can still afford to take at least 1k shares. If I get above $5.00 I can’t take $1k shares, and below $3.00 they don’t offer leverage. So with the sweet spot between $3-4, today I’m walking away with $187 profit which is a 26% gain. That means my account is up about 65% since I started trading it yesterday! I’m finishing today with nearly $900 vs a starting balance of $583.15. Not bad for 2 days work!
The Small Trading Account with Suretrader
With my Suretrader account I have to be very careful about commissions. They add up fast! My commission structure is $4.95 per trade then .00495 per share above 10k shares. I’m also paying ECN fees of about .003. That adds $3.00 for every 1000 shares. So today I took 4 trades, $19.80 in commissions, but with 4k shares it added $12.00 in ECN fees. That means $31.80 in commission. After commission I’ll keep $187.91, which overall, is a great day. It’s just a shame that commissions are over 10% of my profits right now. This is part of the deal with trading with Suretrader. Commissions are higher than brokers like Ligthspeed or Speedtrader, but it’s the only firm where I can day trader with $500 without being restricted by the Pattern Day Trader rules (see PDT definition here). Despite the high commissions, last year I took $1k and turned it onto $8653 in 1 month. So this year, with a 50% the account size, can I take $583 and turn it into $4400? We’ll see!
Trade side by side with me during this challenge and lets see what is possible! I believe it’s possible to make a living with a $500 trading account, and my goal is to prove that to everyone during this challenge.