Hey there, everyone! Ross Cameron here, and today is the beginning of a new adventure for me as I start a small account challenge. This is day one, and I’m excited to share the strategy I’ll be using to grow this account. In this blog, you’ll get a better idea of how I am approaching this challenge
Getting Started with Limited Tools
As I started out my small account challenge, the first few trades were a big deal. I’ve done a small account challenge a few times in the past, so I wasn’t feeling nervous and breaking the ice with my very first trade was awesome. To make it feel more like starting from scratch, I’m using just an old laptop with a few broken keys and a cracked 24-inch monitor. It’s about making the most of what I have, something a lot of people can relate to when they’re starting out.
Account Setup and Taking Advantage of Leverage
I started with only $1000 in my account, and although that may seem like a really small amount, there’s a method to the madness. By using an international account, I have the advantage of having more buying power through something called leverage. It’s a way to make the most of my money when trading. In my first trade, I was able to buy 600 shares of a stock for $6.50/share, which meant I used after my first trade with 600 shares at $6.50, which meant I was using almost 4x leverage on my $1000 account since the position cost me about $3900. While leverage helps to increase profit potential, it also increases your total risk and must be approached very carefully.
Small Account Strategy: Keeping it Simple
This challenge means I have to change up how I usually trade. It also means I need to be really careful because one wrong move could wipe out my account. I hope that by showing how I trade with this small account, it’ll inspire others who are also starting out with a small account.
The plan for this challenge is to find stocks that are going up and jump in at the right time. I’m not expecting to make a lot of money each day; I’d be happy with just $100. It’s not about hitting a home run every time, just making steady progress.
My strategy hinges on pinpointing stocks that exhibit the following traits:
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- Trends: I keep my eyes peeled for stocks that have been steadily ascending throughout the premarket and into the market open.
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- Big Movers: I love to trade stocks that have had big moves because it tells me the stock has the potential to move. The bigger the move, the better!
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- Volatility: High relative volume and news that sends shockwaves through the market signals potential volatility, and that’s my playground.
Using What’s Available and Why You Should Care
If you’re interested in seeing how I’ll be trading in this challenge, you can check out a PDF I made about it here. It goes over the strategies I’ll be using and might be helpful for anyone else who’s just getting started with a small account. I’m really looking forward to sharing this journey and hope it can show others that even with a small account, success is possible if you approach it the right way. Thanks for being a part of this with me!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
You can learn more about Ross Cameron on his websites, RossCameron.com and Tirekickers.com
Check out Ross’s articles on Entrepreneur.
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