Yesterday marked the first day of my Small Account Challenge in the Millionaire Roadmap. It’s where I take a small trading account ($8,132) and try to build it up to $1,000,000.
Sounds crazy… or like some sort of marketing gimmick…
But it’s not.
In fact, I’ve done several of these challenges in the past. And while $1,000,000 might sound like a lot to most folks… my average trading profits over the last five years has been significantly greater than that.
Now, I’m not telling you this to brag… but more so to let you know that I have a process to turn my latest Small Account Challenge into a success.
Furthermore, I teach the mindset needed to grow a small account. And show you how to break it down in levels– so that you’re not overwhelmed and stressed out.
Three Stages of Turning $8,132 into $1,000,000
If you haven’t heard yet, I’m taking on my final Small Account Challenge. This small account challenge is going to be a little different… I’m going to try to replicate the success that I had when I got my first million.
Here’s a little background: I started with $15,000 and tried to trade alone… only to realize I didn’t know a whole lot about trading and my account dwindled down to just $8,132.
At that point… I wanted to quit… but I actually found Jason Bond and became his first Millionaire Roadmap student… and I knew I just needed to remain goal-oriented and I would make my dreams turn into a reality.
In just a few short years, I turned that initial $15,000 (keep in mind I was down nearly 50% at one point) into $7M… the first million was the hardest, and the others were a lot easier.
I didn’t make my first million overnight, however… I had goals along the way… and today, I’m going to show you some of the steps I’m going to take to turn $8,132 into $1,000,000.
Develop the Right Mindset
The first thing you need to do is have the right mindset. You see, when people think about turning ~$8,000 into $1,000,000 in the markets… they think they just need to hit one massive trade and they’ll become an overnight success…
… or they think, I just need to make a series of trades in a short period and that $8,000 is going to magically double multiple times until you get to $1M.
However, you can’t think like that… and I’ve experienced that first hand. You have to be calculated.
The way to think about it is turning $8,000 into $25,000… then $25,000 into $250,000 and then $250,000 and beyond.
When you break it down this way… it actually simplifies your trading. You see, along each step of the way… I’m using different profit buckets – different money-making strategies.
Level 1 – Growing from $8,000 to $25,000
The first goal in this challenge is to turn $8,000 into $25,000.
Why did I break the small account challenge into three parts?
Well, there are levels to trading… and there are some strategies that you can’t use depending on the amount of capital you have.
You see, when you have a small account… you can’t really day trade. More specifically, you can’t place more than 3 day trades within 5 trading days.
Chalk that up to the Pattern Day Trader (PDT) rule. Basically, if you buy and sell a stock the same day more than three times within five business days, you risk your account being frozen.
So how do we prevent this from happening?
Well, we simply swing trade. What that means is we buy a stock and look to hold it for 1-3 days. With swing trades, you can build your account up fairly quickly because you can take 10 – 30% profits in such a short period
This provides us with strict guidelines and allows me to focus on one of my most profitable strategies to get to $25,000 so I can “unlock” some more profit buckets.
For example, one of my strategies is the catalyst runup… in which I spot multiple catalysts and pair them with a chart pattern. Generally what happens is I buy the stock and it starts to move higher into the catalyst.
For the most part, I will be sticking to this strategy until I can build this small account up to $25,000… and I’m going to keep things real simple by focusing on four chart patterns. The goal here is to grind the portfolio higher.
Level 2 – The Road from $25K to $250,000
Once you advance and get to $25,000… things get a little bit easier.
Well, after you get to $25,000… you “unlock” a lot of different trading strategies out there. The best part is once you get above $25,000 you get rid of the pesky Pattern Day Trader (PDT) rule.
You see, the PDT rule only applies to those who have a trading account below $25,000.
So once you get above that threshold, you can trade a little bit more actively and take on more catalyst trades.
Basically, you’ll have more profit buckets – you can swing trade, day trade and even have longer-term holds. In other words, you’ll have more ways to make money and maximize your returns.
Ultimately, you can be taking trades that help you generate returns like this…
Thereafter, as I build that account up and get closer to the next stage… I can add another profit bucket into the rotation, like my options strategies…
The first two levels will be the ones where you’ll actually see the most progress. Once you get over the $25K mark… and the $250K market… you’ll start to realize how much opportunity is actually out there… and the last stage can actually be smooth sailing.
Level 3 – $250K and Beyond
Once you get your account up to $250K… a lot of doors open.
You can still stick to your money-makers – for me, that’s mainly catalyst trades, options, swing trades, and day trades.
However, you can add even more profit buckets into your trading arsenal. That means you can do longer-term investing, selling puts and calls, taking on different types of options spreads trades and look for new ideas and strategies.
In this stage, you’re really honing in on your skills and becoming an expert in trading… and that’s when you hit home runs like this…
If you have a small account… it’s possible to turn it into a 7-figure account. All you need to do is develop the right mindset, a winning strategy or two, and then break it down into stages.
If you’re serious about joining me as I build my small account up to 7-figures, then for a limited time… we’re opening up the Millionaire Roadmap application process, all you have to do is click here for details.
Don’t wait for this account to reach five and six figures first… get in on the ground floor and let’s take on this journey together.
[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.
Source: BiotechBreakouts.com | Original Link