Hello folks! So by the end of this video, you will have the actionable steps and concrete pathway to start growing your small account in 2020. This video will be perfect for folks of all different experience levels that are looking for a fresh start. now. While I do always recommend, folks start with giving themselves proof and not promises of profitability by at least starting with a paper trading platform and proving themselves there.

This video will assume that you've already done that and you're ready to start growing your small account of real money. So how is this video going to break down? Well, Number One, we're going to start with what to trade with a small account, what should you be trading with your small account and of course how to work around the PDT roll and some of the other restrictions that come with having a small account and Number Two numero Dos, we are going to be talking about how to violently but professionally exploit these opportunities. Number three, we're going to be talking about what type of skills you should be focusing on as a trader because in the beginning skills matter more than capital And number four, we are going to be finishing the video with some market psychology and some beginner psychology to get you right in the head so that you can actually stick with it and grow your account in a efficient way. Because at the end of the day, folks know small account guide is complete without actually teaching you how to turn that small account into a large account.

But the only thing that I ask of you in return for all of this is your firstborn. I Just want your firstborn. Just kidding. Of course, all you need to do is hit that ravishing like button.

So to start as a beginner trader, the size of your couch doesn't really matter. it's about how you trade with it. There are some advantages of having a larger account, but when you're a beginner, those advantages are almost null. For the most part, a beginner with, say, five hundred dollars in a beginner with fifty thousand are still both beginners.

at the beginning stage, having more money doesn't mean that you have more skills, and in fact, having more money in the beginning means that you have more to lose. And because most beginning traders end up blowing their accounts, that's a huge issue. However, on the other hand, if you have too little and your goal is to achieve one percent growth per day, if you have a one dollar account, you're not going to get very far. It doesn't matter if you're able to reach your goal or not.

one percent growth per day isn't going to get you very far, but one percent on a large count is going to get you a lot farther. So for purposes of this video, let's go ahead and assume that a small account is 500 dollars. We're going to set a $500 minimum for where you're starting with a small account. So if you're trading with an account size of $500 where or what is it that you should trade? What opportunities should you be focusing on? Well, you're going to want trades that can help you build up your account as efficiently as possible, but also trades that are going to allow you to quickly build your skill set.

And efficiency is very important here because if you have $500 you're going to be under the PDT rule which of course limits your day trades to 3 / 5 day period. But that is fine because that doesn't restrict your swing trades so you could focus on more swing trades. Okay, so for efficiency, we're going to go ahead and lay out a sample schedule of what I prescribed. folks.

Now, this isn't a concrete example, but rather a solid schedule or spreadsheet as to what an average set of opportunities should be looking like for you as a beginner trader with a small account. Now, the first few weeks of growing your account, your hands are going to be tied behind your back. You are a Russian without the vodka. At this stage, you do not have a ton of capital and what you do have you need to protect.

You also can't take many day trades nor Shuji so you want to make sure to be careful with how long you're holding each position. So you should be choosing one to two excellent and conservative day trades per week and one or two excellent and conservative swing positions. You can also use a margin account to get around the settlement times, which can be a little frustrating because if you're buying in and out of positions, you need to wait for the capital to settle. but a margin account can help you with this.

and if you find swing training to be more time convenient for you, you can choose to focus more on swing training. It just depends on the type of schedule that you're employed and what it is that your goals are. But for most of you, a combination of swing trading, a little bit more heavy on swing trading, and then some day trade, it's going to be the best way to grow your account as a beginner, but either way we do trade like spoiled brats and that means only take any most conservative of set us. These usually come in the form of overreaction planes.

That means plays that have traded solidly and then got beat down on Bad News International. In signs of recovering, Clb is a fairly strong example of this. It got beat down to overreaction lows at 36 5 and then had clean running up since every react is an overreaction, but there's different ways to play this. The most conservative would have been waiting for a confirmation after oversold zombie longer term time sharp.

You can then buy in at confirmation and sell out upon validation and that would have taken several days as you could see and would have been a swing trade. So you can see that there are opportunities in both swing and day trading when it comes to overreaction place. Alternatively though, you could have also day traded this as we saw a strong day of price strength. But while these specifics are hindsight analysis, the truth is that every overreaction follows the same general pattern.

It's just that the little specifics are different. We have a beat down, we have overreaction laws, and then we have a correction. Everything follows the same pattern because every reaction and the stock market is an overreaction. The only difference is the time span of the beatdown, any time span of the correction.

So keep that in mind folks, and you're going to have a good time. Wve is a good highlight of this. It shows how this is a different type of overreaction, but it's the same sort of formula overall. Wve It got beat down to oversold and stayed flat for several days.

We did see an initial push, but it was only in the last two trading days that we saw a fare correction up seven or eight percent. And these opportunities do happen all the time, folks. And if you're having a hard time finding these, you need to get yourself in a good trading group at Zip Trader Circle, which is our free Facebook group. We post these opportunities literally every single night for free.

Alternatively, for folks who even want more information, we post tickers with explanations in our nightly watch lists on Zip Trader You. But even so, our nightly watch lists on Zip Trader Circle are completely free. so you have no excuse to miss these opportunities. But you also can't hold these for too long with Md or we had a beat down.

And then we had literally one strong period of buy Natick confirmation and selling out at validation. But we hit overbought And likewise, we saw this initial correction get eaten away and over salt. So you need to buy in a conformation and sell out at validation. That's how the strategy works and that's how you need to employ smart trading practices.

Okay, so for the first stage of growing a small account, I would say that you should be focusing primarily on overreaction plays because those are the most conservative and most frequent that will allow you to grow your account. And if you're trading with a concrete trading plan involving confirmation and validation and having a concrete understanding of your elevating versus your deprecating factors, then you're probably going to have some good wins and some good losses. And overall, if you're a beginner, you're probably going to lose money for the first couple periods of trying stage one, but keep repeating and honing in on stage one until you get to stage two, which is around the two to three thousand dollar accounts lines mark. The thing is that as a beginner trader, you do not yet understand the difference between a good conformation and a good validation.

A good entry point and a good exit point, so you need to take your time and understanding exactly what drives the price, action, and what exactly drives the price to deprecate. But anyways, once you've grown your count to two or three thousand, you have the skillset to accompany that. It's time to move on. Now This is where we move on to more opportunities.

You can now afford to put in more money per over reaction opportunity, but also to take advantage of some more intricate opportunities as well. We love opportunities here at Zip Trader At this stage I'd start putting more money into Catalyst plays. My favorite type of Catalyst play is of course FDA approvals because they post their dates of their upcoming approvals months ahead of time. but that way you can plan for it two different ways that you could trade.

FDA approvals. You could trade off the pre anticipatory run-up or you could trade off the post run up as a beginner. The best way to handle these is by trading me pre anticipatory run-up. For example, D Rrx is one of our top penny stock picks due to their announcement coming out, but we never know for certain whether or not the announcement itself will be positive or negative, right? And they just drop all of a sudden.

So all of a sudden. the price action can react heavily and in Dr. Rx's case, it was negative. So the way handling these is buying in before the news upon elevating factors.

Not all stocks are going to have pre anticipatory run ups, but the ones the D we're going to have strong elevating factors. Many of these will run up in anticipation before the news and this gives you the opportunity to right. D Price Strength: Like a surfer, we love riding price strength and once you get better at this, you can then start taking more advantage of trading me post news, right? So ITC I had a positive announcement and it ran out massively. This was another one our first pick from our top penny stocks video for January 2020, but this ran up massively, but it could have broken down too so you could see exactly why.

It's so important to start with the more conservative option, which is trading the pre anticipatory run-up. But the point is, at stage two, you're focusing on two different types of plays, your over-reaction plays, and of course, your catalyst place. It's at when you start becoming more acquainted with discipline right, discipline, understanding me long term versus the short term, and understanding exactly when to get in and when to sell out. If you do, however, complete this stage poorly, you're going to be sent back to stage one and you're going to have to start all over again.

That's fine because starting over means that you're going to have more chances to hone in on your skill set. But if you do do the stage well, you will be able to move on to stage three. Now, stage three is the last stage of having a small account. You won't be a youngster after this stage.

At this stage, you'll be using everything that we already integrated you over. The reaction plays your catalyst plays, but you're going to be adding one more type of play and that is your morning market runners. Now for folks who are choosing to focus more on swing trading, perhaps you're just going to edge more into the other categories, but for purposes of this video, I Do suggest that you have a combination of swing and day trading as a beginner and morning market runners are almost always going to be more in the day trading category because it is in the morning and then you sell out and you're done in the first couple hours. but every morning there are stocks that run up in the first few minutes or pre market and then they just keep going until after market open.

For example, AMD has a strong upward trend, but they also have a comeback pattern of going from oversold to overbought again and again. And if you look back at AMD, you can see that it tends to aggressively sell-off or aggressively run up at the first 20 minutes or so of market open. That means that simply identifying your price strikes and measuring you're elevating factors can allow you to ride up and then sell out at validation. And the days where it has more deprecating factors.

It's going to go down right. so make sure that you understand exactly how to analyze them. Is it oversold? Did it open in an upward or downward direction? Evaluate your elevating factors. We have tons of videos on how to analyze and evaluate elevating factors, so make sure that you're educated on that.

Okay, so this is where it gets a little bit more interesting. So at stage 3, you've already grown your account to about $10,000 and that means that we have more opportunities to avoid the PDT rule. The PDT rule remember, limits your day trades to 3 / 5 day periods. So how we avoid this with a $10,000 account is by separating the capital if you divide your $10,000 amongst three different brokers all of a sudden.

now you have not three-day trades, but nine because it goes per broker. So three times three equals nine. But now you can use four or five of these extra trades plain morning market runners and the others in Catalyst and Reaction place and you can repeat this process until you get to 25,000 which is the end of the small account growth stage. Okay folks, well, a few things to keep in mind in closing the process of growing your account from five hundred dollars to twenty five thousand is quite extensive and it is going to be time-consuming even for the best of traders.

In reality, a lot of folks find that once they've proven themselves to themselves all of a sudden, they get to the stage where they're at maybe like ten thousand dollars and they're like, okay, well, it's going to take me a very long time even with my skill set to get to twenty five and they start adding more capital. But the purpose of this guide was to show you exactly how to go from five hundred dollars to a large account or a medium account of twenty five thousand. The truth is, once you are more confident in your trading abilities, you will probably start finding other ways to put capital into the account so that at the end of the day you are making more money per trade. Because if you're trading with 500 dollars, even if you can get 1% per day, it's not very much.

and it does grow quickly. But still a lot of people are going to start putting some of their own capital in. That is just the reality. But I Do recommend just focusing on growing your skills that as a beginner and growing your account without using more of your own capital.

The goal of training with a small account. Truthfully, it's not to build the small account, but rather to build your skill set so that when you have a large account, you can effectively trade it. Starting small is great because it teaches you the importance of position sizing and money management. This will be helpful for when you have a large account and you need to figure out how to allocate your capital to tons of different opportunities and all these different moving pieces.

So keep in mind when you are growing your small account, don't be too anxious to grow it because at the end of the day, this is the stage where you're focusing on building your skill set and your sustainability as a traitor, because those are the things that are going to be with you for the entirety of your trading career. Okay, so with all of that being said, I do want to go a little bit deeper into the market psychology and the personal psychology when it comes to day trading within the stock market. One of the biggest psychological tips that I can give you in terms of not blowing up your small account is to not treat trading as a random gamble. Trading very much is a probability game, and that means that it is a structured gamble in the short term, and thus it's very easy to get caught up in thinking that all the movements are random.

There is a certain percentage of randomness to it because it's a probability game. But since trading is a probability game, that means that sometimes it is going to reward bad behavior. Sometimes it's going to penalize behavior. In most fields, if you do poorly, it's easy to figure out what you did wrong.

But in this field if you did poorly, you might even get rewarded because if you make a really bad trade and all of a sudden just by chance it goes up. all of a sudden you're like whoa, Well, that worked. But in every other field, if you do something poorly and it doesn't work, then you're like, okay, it didn't work, but in the short run, when it comes to the stock market, you tend to get feedback from the market that has nothing to do with actually the work that you're putting in. The other day, one of our zip traders messaged me we'll call him Tom just to protect his name but Tom was very excited he had made a large profit on one of our catalyst plays I think it was ITC I or something like that but he had made a large profit and then I went in and I asked him what he did right Tom was super excited and very happy about what he did, but he had no explanation as to what he did right.

He had no explanation as to how it is that he made the profit other than he knew that it was an FDA approval date. So I responded to him and I said look, friend, ouch, you just lost that trade. You made a terrible trade and he's like what? no And then he sent me a picture of his province and I was like I see that you made profits but you just lost a ton of money. He was probably really confused and thought to himself, hey, Charlie you're stupid I Just made tons of money What do you mean I Lost money on this trade I Don't care if you send me a picture where you made five hundred thousand on a trade I Don't care if you made five million on a trade.

your term profits are often just disguised long-term losses. If you didn't make that trade with a sustainable trading practice, you just lost money. It does not matter how much profit you make. If you're not doing it in a sustainable way, then you're just going to lose money.

Are you trying to win on one trade, or are you trying to win over all? What is really the point is making a lot of money on one trade if you lose it on the next train. So my suggestion here is to look at the market from a long-term perspective, track and use the overall direction of your account as sort of validation as to whether or not you're doing well or doing poorly. It does not matter how you do on individual trades, it matters how you do on many trades. But don't let your failure get in the way of future success.

Okay, and last point, There is really never a point where you've made it. As a trader, You may feel the need to validate yourself with a big P&L or a big piece of account growth. But the truth is that your success in the market is not determined by your P&L or your account growth. It's determined by the long-term consistent effort that you into it.

Just because you may have made tons of money this month does not mean that that's going to carry over into next month. You need to keep putting that same level of dedication in terms of hard work and discipline as you did in order to earn that in the past. I'd Also suggest folks who are trying to grow a small account to stay away from people. Pleasing Said So many people hate on the stock market or say that trading isn't a real job.

There's a huge temptation to show off your results or brag to others when you are starting to make money. But the problem with this is the very same people that doubted you and doubted your ability to make money. Trading will now doubt your ability to continue being successful at it. Well, now say that you just got lucky and they don't think you'll continue to be successful in it because it was all luck and had nothing to do with work ethic and this cycle of people-pleasing never ends.

There's never a point where people are going to say oh wow, he's successful. It's always like oh hey, wait a second, it was luck. The cycle if people please, he never ends. So I encourage you to grow your small account, not to prove anything, but rather to show yourself that you love the challenge, that you love the game, and that you want to continue doing this because it's something that you find intellectually rewarding.

Being results-driven is a big motivating factor, but make sure that your results driving is actually driving your effort and not your need to get more attention or please others as traders. The truth is, we trade alone and when you're alone, the best thing to do is focus on yourself and what you can do better. Okay folks, well I Do hope that this video is helpful and has set you on the right pathway to growing your account in 2020. If you have any questions whatsoever, feel free to reach out to us in the comment section below or join our free Zip trader Circle Facebook group if you need some structured guidance and growing your accounts.

we also have Zip Trader you and this is the private tutoring chat that I work with each and every single day. You can find out more about that by going to Zip Trader, you calm or clicking the link in the description below. But anyways, folks have a great day and I'll see you in the next video.