AT #30: $500 to $74,580 Challenge Week 14

“I want to build confidence in trades” – Client

Are you one of those traders who feels lost, and your confidence fading away to the point that where you want to quit?

I’ve been there. But all it took was having a strategy that told me 3 things.

In this email I want to cover what my trading strategy has to tell me, before I execute a trade.

In this Email

• Stats for the week
• How to build confidence in your trade

Stats of the week

• Number of trades: 6
• Profit: +$1,346 PT
• PnL %: 0%
• Account value: $121
• Position size per trade: $500
• Cash position: $2,611
• Tickers: $QQQ | $SPX

Even with 2 losing trade, the week turned out to be profitable with 4 winning trades that were bangers. Each trade size was near the $500.

How did I come out super profitable for the week?

Because my trading strategy is focusing on high r-multiple opportunities – netting me three monster wins: one 110%, another 115% and a whopping 151%!

When I was analyzing my 2023 performance, one major thing stood-out…

$QQQ was consistently delivering the lowest risk and most stable, profitable growth among all the other tickers.

I mean, why spend time, energy, and money on tickers that are not providing consistency.

$QQQ is my jam going for 2024, and I will not be messing with inconsistency when steady gain are right there with $QQQ.

Just to be clear, I haven’t risked any real capital since December 21st. These are all paper trades, which is my way of testing and gather data before I dive in.

13 paper trades in, I still need more data. Any trader who is modifying or testing new strategies should aim for 50 paper trades.

But I will adjust to more attainable 20-paper-trade goal. Once those 20 trades have been analyzed, I’m diving back into the small challenge account.

How to have confidence in your yourself

Leaping into trades without the three pillars is a recipe for anxiety, and lack of confidence in yourself.

You trading plan should have the following:

• An entry point
• A stopping point
• An exit point

These three pillars will reduce your anxiety as you will stop wandering in a dark maze.

These three pillars will provide a clear plan that tells you when to enter, where your boundaries are, and when to walk away.

Another way that I build confidence in myself, is that I journal my trade in real-time.

Journaling allows me to dissect my thought process. I can evaluate whether my trading strategy is aligned or if it needs adjustment.

Here’s an example of how I took notes on my $QQQ trade above that hit 110% in profits.