Trading with a Small Account — Step-by-Step Guide & Transcript

[00:00] If I only had less than $1,000 to trade with or even less than $2,000 to trade with, this is what I would do immediately. And these are the things that I would tell my younger self to do. Or these are the things that I would remind myself before I start.

[00:14] First thing I would tell myself, I would say, listen, trading isn't a side hobby, okay? It's not something that you do on a side. It's not a side hustle. Trading isn't a game, okay?

[00:27] If you're not going to put 110% in, do not start at all. Do not start. Trust me, it's a waste of time. Do not start trading because I can tell a lot of people think trading is something that they can, you know, catch on quick.

[00:40] Because I hear it when people ask me, hey, what do you do for a living? I tell them, you know, I trade whatever. Oh, can you teach me? You know, and it's like, bro, it's going to take a long time. You think me teaching you for an hour or, you know, one day is good enough?

[00:54] No, it's not a game. So I would tell myself, listen, it's not a game. If you're going to do this, go 110% in or don't do it at all. The next thing I would tell myself is trading isn't pretty.

[01:08] Get used to it. It's not pretty, guys. Some weeks might be really good. Some weeks might be slow. Or you might have down weeks. A lot of ups and downs in the beginning. You might be, you know, sad or lonely.

[01:20] You have no one to talk to. So you have to understand, trading isn't pretty. especially in the beginning but I'm here to tell you life is not pretty guys I mean life is not fair it's not but you still have to continue to go just because it's not fair just because it's

[01:36] not pretty doesn't mean you stop it just means that okay if you figure out what's really going on like am I doing something wrong and then you go from there because I'm telling you right now Murphy's law is real Murphy's law states that anything that can go wrong will go wrong and I'm

[01:53] I'm telling you right now, it will go wrong when it comes to trading, guys. It's a one in a thousand guarantee. So whatever you're thinking right now, trust me, it might even take you longer. So you're going to make a lot of mistakes. You might blow up some accounts, right?

[02:06] So it is what it is. Now, I would tell myself, hey, this $1,000 I'm starting with, I might blow it. Anything that can go wrong will go wrong. So it's a one in a thousand guarantee. Most likely, I'm going to blow this $1,000.

[02:19] But it doesn't mean that you're going to quit. It just means that, hey, it is what it is. Let me see what's going on and let me just re-up for more money and put it back in the market. But I'm telling you right now, I would tell myself it's a possibility I'm going to lose this $1,000.

[02:32] And the next thing I would tell myself is focus on self-improvement and strategy at the same time in the beginning. A lot of people will tell you, oh, trading psychology is worthless in the beginning and you don't need it.

[02:46] I would tell you that trading psychology is very, very important. and what people don't realize is trading psychology is not just when you're pressing the buy button and sell button. It's actually much deeper than that, okay? So if you have anger issues,

[03:01] do you think your anger issues will show up in your trading? And the answer is yes, okay? So that has nothing to do with trading Your anger has nothing to do with trading but when you start trading you going to start to see oh man you know I really have to get this under control So this is what I mean by you have to focus on psychology and trading strategy in the beginning

[03:22] both at the same time, because if you don't, it's going to be very hard to see some type of improvement. So focus on self-development and strategy. Now, the next thing I would tell myself is, listen, trade one strategy and do not switch at all, okay?

[03:37] because if you switch, you're going to basically start from zero again. So we don't want to just keep on switching strategies just because you're not doing good in the market because every time you switch the strategy, you're basically starting from zero.

[03:50] So we want to stick to one strategy and just master that strategy. So I would tell myself, listen, stick to one strategy, master that strategy, do not switch at all, only focus on that system. You have to tweak the strategy, then test it out again, then tweak it some more,

[04:04] test out again, add, subtract, add, subtract. That's how you make a good system because you can't just keep on switching trading strategies. It's not going to work out that way. So stick to one strategy. Do not switch. Just add and subtract, meaning tweak your strategy until it works the

[04:21] way you want it to work. Now, when it comes to strategies, I would just tell myself, listen, just keep it as simple as possible. Focus on simple levels like support and resistance, supply and demand. Okay?

[04:33] Those are levels that I look at every single day. Support and resistance has been working since the beginning. So, I'd rather focus on that. I don't want any new, you know, strategy or anything like that.

[04:45] Now, if you look at these, you know, levels people use nowadays, honestly, a lot of these levels line up with support and resistance. Plain and simple. Okay? So, I would just go to the source, which is support and resistance, supply and demand,

[04:57] and I would stick to that. also, when you're creating a strategy, please understand the direction on the market because if you don't you know it's going to be very hard for you to actually build a good system and see good results so a good example is let me

[05:12] show you all right guys so right here we're looking at nasdaq right nasdaq i traded and i traded five minutes so right here the market is going up right and all of a sudden you're looking at this and you're saying okay the market is bullish right now this is where right here this

[05:27] is where the market is open right so me when i first started out i would look at this and i would say oh my gosh i gotta go long right it's above the moving average it's above everything we make it higher highs i have to go long okay but you have to understand the conditions of the market

[05:43] this is not a long why because if you zoom out look to the left what do we see first of all we see you have resistance right here okay and also we have resistance right here so you don't want

[05:57] to just buy just because you see the market going up do we have anything to the left okay so this is what i mean by understanding direction understanding market structure understanding what the market is

[06:09] doing first before you even take a trade so when you build your strategy please look at this because this is going to help you create a great strategy that you can actually use and make profits from So this is a good example today. I saw this and I actually went short right here, right

[06:24] short right here and actually made a quick on this one Here a quick you know video right here Me getting out the trade and you look to the left I up pretty much

[06:36] $6,190 something dollars. So that was that trade. And it was all based on this understanding the structure. The next thing I would tell myself, I have less than $1,000 or less than $2,000 to trade with.

[06:50] I would tell myself, do not go for a home run every single trade. because it's very tempting to do that when you have a small account because you think that if you make $50, you know, that's not good enough or if you make, you know, $30 or even, you know,

[07:05] you know, $80, whatever, or even $100, you might feel that that's not enough, okay? You want to make more because you have a small account. You probably want to go to that account fast so you don't say, oh man, I want to go for home runs because, you know, if I can make, you know,

[07:18] you know, $500 today, man, that would be a lot of money. But you don't want to do that, okay? The best thing is to just grind it out, guys. Little by little, every single week, every single day, little by little, and eventually

[07:31] you will get to the point where you are, you know, risking or making the amount that you want to make. But when you first start off, do not go for home runs. I would tell myself, listen, do not go for home runs.

[07:44] It's a waste of time. It's a waste of time because every time I would try to go for a home run, guess what? The market will come back, either stop me out for a break even or just stop me out, period. So I wouldn't do that. Now, the next thing I would tell myself, man, listen, nobody is coming to save you.

[07:59] Do not look for anybody to hold your hand and save you. It's not going to happen, okay? And I can tell that a lot of people want me to hold their hand and save them, and it's not going to happen, guys.

[08:12] You have to understand that trading is an individual business where you have to show up every single day. You have to do the right things. So it's based on you. You know, you can't rely on anybody.

[08:25] And not just trading, guys. In life in general, stop depending on people. Okay? Nobody's coming to save you. You have to save yourself. It's just what it is. It's how life works. Yes, that's not fair, but that's life.

[08:38] Okay? Nobody saved me, you know, in the beginning when I was struggling. So I had to just grind it out every single day. So you have to understand, nobody's coming to save me. I would definitely tell myself that. Now, the next thing I would tell myself, this is a big one.

[08:52] Stop looking for daily income. Look for monthly income because I'm telling you right now, every single day is not going to be a great day. Or even every single week is not going to be a great week. But if you just do the right things from the first all the way to the 30th, you can actually have a profitable month.

[09:10] Okay? because your first two weeks might be just horrible or whack or even break even right but your last two weeks might be great and those are the weeks that's really going to make you your profit so stop looking for daily income or weekly income start looking for monthly income

[09:27] okay because you have to switch your thinking i understand that some of you guys work a nine to five so automatically think you know about a weekly paycheck and unfortunately in trading it not like that Some weeks are going to be horrible It going to be whack It going to be just you not going to make money or it going to be break even And some weeks are going to be great so you have to understand that be prepared for that so stop trying to look for

[09:51] that daily and weekly income just focus on the monthly income now the last thing i would definitely tell myself listen if you have less than a thousand or even two thousand in your trading account get good at correcting your mistakes immediately because if you wait too long number one you're

[10:07] to develop a lot of bad habits. And number two, you're going to just lose money because you're not correcting your mistakes. So you have to get on top of your mistakes the next day. Do not wait next week or do not wait, you know, two weeks from now, the next day, the very next day. All right.

[10:23] Let's say you had FOMO today. Beck, tomorrow, my purpose is not to make money. The purpose is to literally not FOMO at all tomorrow. Okay. So that's what I'm going to do. And this is what

[10:37] you do every single week. You want next week to be better than last week. So every single week, you have to correct your mistakes. You have to be on point. Stop thinking about dollar signs, okay? Stop thinking about the dollar signs. Think about the process. Think about correcting

[10:51] your mistakes. And that alone is going to help you grow your small account. You know, whatever you're starting out with, it's going to help you grow your small account because you're not really focusing on the money. You're just focusing on trying to do the right things. And

[11:03] that's it. Discipline, guys. Discipline, right? Because at the end of the day, you are your result, meaning that you create your own reality. It's you. You can't blame anyone else but

[11:16] you, okay? So you are the reason why, you know, you broke the rules. You are the reason why you moved to stop-loss. You are the reason why you lost, you know, half of your account

[11:28] today is you. Stop blaming the market. Stop blaming, you know, a video that you looked at yesterday. Stop blaming gurus. Stop blaming anything. Just blame yourself. Because once you

[11:40] can actually look in the mirror and say, you know what, it's my fault. Guess what? You are in control. You can't control anything else, but you can control yourself. You can say, all right, it's my fault. Let me focus on the things that I need to do in order to actually take my trade

[11:55] to the next level because at the end of the day, you only have you, right? So, focus on what you can do and go from there. Make sure you correct your mistakes. This is what I would do. I'm

[12:07] telling you right now, if I had a small account, I would be very, very picky, very picky, very disciplined. I'm not trying to play any games because I understand that I can't make a lot of mistakes in my small account. I can't. You know, it's going to hurt me. It's going to damage

[12:20] me. I remember me making a whole, just blowing my account, right? And then I had to just stop trading for a little bit, save up some more money, put money back in my trading account,

[12:32] and guess what? I would blow that money, and it's a fear. It's the same cycle all the time. So guys, you have to have that self-discipline. You have to be on point. You have to be very picky. Can't make a lot of mistakes. Can't do it. So this is what I would do if I have less than $1,000

[12:47] in my trading account. And I think you should do the same thing if you have, you know, a small account too, right? So if you enjoyed this video, you know what to do. Thanks a lot.

[12:59] Talk to you guys later.