AT #18: $500 to $74,580 Challenge Week 1

Read time: 3 minutes

If any trader tells you need thousands of dollars to start day trading, they’re liars.

You can start with as little as $100, and grow that to an empire.

In the upcoming weeks, I’m going to show you how to turn a small account into the U.S. 2022 median salary $74,580.

I’m only 5 days into my public challenge to turn $500 into $74,580 in 1 year, and I’m already off to a good start.

In this Email

• Stats for the week
• Understanding my game plan
• Trading strategy

Stats for the Week 1

• Number of trades: 9
• Profit: +$474
• PnL %: +94%
• Account value: $974
• Position size per trade: $250
• Tickers: $SPX

Monday was a great day. Tuesday was a bad day. Wednesday and Thursday really blessed the account.

All in all, the account is looking healthy and taking $250 trades doesn’t seem to scary anymore.

First, you gotta understand my game plan

I can’t start a small account challenge unless I have a trading plan, and position size plan.

$500 is not a lot to work with, but with a proper trading plan that provides a great risk to reward ratio, you can really grow the account quite fast.

With that said, what’s my game plan?

My main goal for the month of October is to grow this $500 into $5,000 so I can properly add a position size strategy. Anything under $5,000 is hard to follow proper risk management because the account size is small.

Once you get to the $5,000 and even $10,000, you can risk more (appropriately) and go for base hits of 20% profit returns.

Accounts with less than $5,000:

• Risk a lot of capital
• Aim for high percentage returns

Accounts with greater than $5,000:

• Risk a great amount of capital
• Aim for lower percentages

If you have a small account of $500, and I trade with $250 to aim for a 30% return – $75 profit – is that going to get you anywhere? It will take forever.

If you have an account size of $10,000 and trade with $1,000 to aim for 30% – $300 profit – this will move a lot faster for you.

In trading, not every trade is the same, not every account is the same. So you can’t trade the same like everyone else. You have to adapt accordingly to your account size and risk tolerance.

My trading plan

The trading plan is simple. I’m only going to trade $SPX and $SPY on the basic principles of supply and demand and market structure.

It looks something like this:

I wait for price action to reach a level of supply or demand, wait for price to react. Once it confirms the direction, I will wait for a pullback to grab my contracts at a discounted price.

Once my trade is executed I aim my price target to be the previous swing low & highs.

Buy low. Sell high.

Conclusion

Most traders won’t be able to succeed in a challenge like this. They choose too many tickers to follow, they let their emotions get in the way, and ultimately fail follow their trading plan.

You’re going to be miles ahead of every one else when you stick with one ticker and follow your trading to the tee.

In the coming weeks, I’m going to be showing my ideas, where I believe the market will go, and trading strategies to growing a $500 account.

That’s it for today. See you next week.

PS: You can reply to this email to reach me or DM me on my Twitter account.