Daily Recap: Learning and Profiting in Small Account Trading

Today, I continued to use the 1-minute and 5-minute charts to seek out good trading opportunities. Despite making a mistake, I managed to turn the day around with a solid trade, ending with a profit of $45.50 and bringing my account total to $1,260.79. Let’s break down the trades.

Trade 1: AMIX

I started my day with a trade on AMIX. Unfortunately, I was distracted by another stock and rushed into this trade. My entry at $1.77 wasn’t terrible, but my planning was off. I didn’t adjust my position size to account for a stop loss at $1.63, which was the low of the previous candle. Originally, I had calculated my position size based on entering at $1.70, which would have been more in line with my 2% risk rule.

Since I entered at $1.77, I had to raise my stop to $1.70. I got stopped out at $1.69 for a loss of $28.00, and then the price went back up. If I had the correct stop loss set, I could have let the trade ride up for a small profit.

Trade 2: VRPX

My second trade on VRPX was much better. I entered at $1.62 with a strict stop set at $1.55. As the price climbed, I moved my stop up, reaching a 1:1 risk-reward ratio, then 1:2, and finally 1:3, where I got stopped out at $1.83 for a gain of $73.50. I decided to move my stop to lock in these profits, ensuring a solid return. While I could have potentially let it ride longer for more profit, I was content with securing a 1:3 RR. With more available cash, I could have bought back in after a second pullback and continued to profit.

Lessons Learned

Today was a decent day overall. I learned the importance of properly calculating my position size before entering a trade. If I miss an opportunity because of this, it’s better to move on to another trade rather than rushing and risking unnecessary losses.