AT #21: $500 to $74,580 Challenge Week 5

Read time: 3 minutes

Have you ever caught yourself trading desperately, chasing the next big thrill, only to lose money on a stock you didn’t even have a trading plan for?

“Man, I wish I would have jumped into this trade,” is a common phrase I hear from many traders. But the truth is, you can’t catch everything. It’s unrealistic to expect to.

All the profitable traders that I know have one thing in common: they trade the same setup and the same 1-3 tickers, and they stick to their trading plan.

Avoid chasing the dragon of excitement, you may only find boredom and emptiness lurking within.

But first, a real quick word from my sponsor…me. I’m offering a trading coaching service. Whether you’re just getting started or you’re a seasoned trader that could use some fresh eyes, I’m available to help.

Just reply to this email with some details, and we’ll discuss how (and if) I can help. Thanks!

In this Email

• Stats for the week
• Focusing on a single strategy
• Easy trading strategy

Stats of the week

• Number of trades: 6
• Profit: +$1,161
• PnL %: +36%
• Account value: $4,338
• Position size per trade: $500
• Tickers: $SPY | $QQQ

The account is now officially over $4,000!

Not only did the small account go over $4,000 but it’s now up 767% from the original investment of $500.

As traders strongly desire for a 10% monthly gain, I’ve soared over 750% in less than 22 trading days!

Focusing on a single strategy

When I was first starting my software engineering career, my boss asked me, “Ruben, do you think it’s more valuable to be jack-of-all-trades or to specialize in one area?”

I replied, “Be a jack-of-all-trades. I’d rather be useful in all areas of engineering.”

As my years of being an engineer grew, it turned out that being a specialist is more lucrative. Companies are willing to pay top dollar for experts who have a deeper understanding on the chosen field and can help them achieve their goals.

Trading is no different. As a new trader, it’s easy to get overwhelmed by the many trading strategies and chart patterns available. Subconsciously, I was making the mistake of not picking a strategy and mastering it.

Pick a single trading strategy and master the entry, profit-taking zone, and exit. You’ll be amazed at how much faster your account grows.

That’s how I’ve been able to grow the small account from $500 to over $4,000.

Trading Strategy: EMA9/EMA20 Crossover

I’ve shared this simple trading strategy before, which requires only two indicators. If you need a straightforward and effective trading strategy to get started, give this one a try.

You can find the instructions to the strategy in this tweet: EMA9/EMA20 Crossover​

I even threw in a extra bonus indicator to give you higher conviction on your trade.

This simple strategy is what yielded the 36% growth on the small account.

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.