AT #20: $500 to $74,580 Challenge Week 3

Read time: 3 minutes

Most traders are happy with a trade returning 30% in profits, but what if I told you can make your first trim at 60 to even 80% return?

If you ever looked at my Tweets, you’ll see that a lot of my trades are +100% return, a majority of the time.

This is because I set realistic price targets that make contracts go from OTM (out of the money) to ITM (in the money) – or at least ATM (at the money).

In this Email

• Stats for the week
• How I set out price targets
• My favorite swing high & low indicator

Stats of the week

• Number of trades: 12
• Profit: +$525
• PnL %: +24%
• Account value: $2,695
• Position size per trade: $500
• Tickers: $SPX | $SPY | $TSLA

This week was wild. On Monday the account went to $3,100.

By Wednesday, it dropped to $1,500 – I was not mad, but just a little sad.

Thursday I recovered back to $2,800 and by Friday the account went as high as $3,200 but gave back profits and the account came back to $2,695.

Twice this week, I took the account over 500% in gains, I can smell the $5,000 account value coming soon, it’s not far away.

I did something this week which resulted having this crazy fluctuations – I sized up on my trades from $250 to $500.

Why? Because I’m confident in my trading capabilities, and I want to grow this account to $5,000 sooner than later.

I did have a couple hiccups in my trading early in the week; all due to being impatient. Patience is key to my trading strategy.

It’s what allows me to have reduced capital loss and a high reward ratio. I ended getting into trades early and averaging down, and as a result it costed me a loss of capital – especially since I trade zero-day SPX contracts.

Most traders wish for 10% bump increase in their trading account on a monthly basis. As of right now, my small account is above 400% from the original investment 3 weeks ago – and it even went as high as 542%.

Setting price targets

The way I set my price target is by looking at the last swing high if I’m in longs. Or swing low if I’m in shorts.

Let’s look at the chart below.

This chart has a few smaller swings, when price action looks like this, I’ll make those trimming points.

When you see small swings like the ones above, it can represent resistance points – so be wary and take some profits.

Other times, it’s just there’s no resistance areas and it’s a straight shot down/up.

See in the image above how there’s no smaller swing lows and price just cut through it like butter.

TradingView Indicator for Swing High & Low

Finding swing highs and lows can be difficult at time especially during choppy & volatile days. The best TradingView indicator that has helped me reduce that problem is a indicator named Swing high low support & resistance.

Link: Swing high low support & resistance​

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

PS: What’s the #1 thing that made you want to check out this newsletter?

Reply and let us know. I read every reply.