A lot of people don’t realize the true opportunity for small-account traders …
Everyone wants to trade like Jack Kellogg.
He started my Challenge just before the 2020 rally and is currently sitting at $12.1 million in trading profits.
Some of his trades right now are CRAZY!
But before I show you, remember that we’re trading in a red-hot 2024 market and Jack is trading with a huge account compared to the $7,500 he started with
Here’s a profit Jack pulled last week, starting stake of $144,690:
He logged the trade on February 22 but the actual pattern was a gap up overnight into February 21.
Here it is overlaid on the chart …
Making $23,000 in one day sounds nice. But do you have $144,000 to use for that potential profit?
Probably not …
Like I said, everyone wants to trade like Jack Kellogg. But it’s not that simple.
You can use the same patterns and the same strategies, but here’s the reality:
You’re in a better position to profit than Jack.
I know that sounds backwards.
Here’s why it makes sense … Get excited!
Liquidity
This strategy is only scaleable to a certain point. I learned that early in my trading career.
These small-cap stocks can spike +1000% and follow common trade patterns. We can make A LOT of money trading them.
My career profits of $7.5 million are proof of that. As are my millionaire students like Jack Kellogg.
But when we start to make a lot of money, our position size can only grow so large.
Jack likely had enough money in his trading account to buy more shares of LUNR if he wanted to …
But 13,000 shares is already substantial for a stock that only has 9 million shares in the float.
When Jack was buying LUNR on Thursday, the stock was only trading between 50,000 and 100,000 shares every minute.
To get out of a trade, we need enough demand for the shares we’re trying to sell. If we buy too many shares of a small cap stock, the price could drop as we sell into comparatively thin volume.
Big stocks like NVIDIA Corporation (NASDAQ: NVDA) are trading 3 to 6x the share count of small cap stocks, anywhere from 300,000 to 600,000 shares per minute.
Small-account traders can get in and out of +1000% small-cap stocks because we’re buying fewer shares.
It can lead to substantial profits for us. But from Wall Street’s perspective it’s small potatoes.
Yesterday @Jackaroo_Trades gave a GREAT webinar for https://t.co/occ8wKmT5U students where he talked about how he likes slow movers like $SOUN $FNMA because he takes big size and these faster movers he can't get a good position on…99.9% of traders have small AF accounts where…
— Timothy Sykes (@timothysykes) February 23, 2024
For those interested in higher liquidity plays …
There ARE opportunities for small account traders among higher priced stocks.
It all depends on what works for YOU!
Profitable Niche
I’ve used the same process to trade for over 20 years.
And over the last 15 years, I’ve taught the same process to my students.
I use these patterns to trade volatile penny stocks because that’s what works for me …
But my students have used these patterns in multiple market sectors!
- Mid-cap runners.
- Options.
- Crypto.
- NFTs.
This framework keeps manifesting in the market because human beings are predictable during times of high stress and mania.
It’s human psychology. All we have to do is recognize the momentum and build ‘safe’ positions around support and resistance.
Of course it’s easier said than done. But anything worth having never came easy.
Watch my trading live streams to accelerate your learning curve.
There are stocks following these patterns RIGHT NOW.
It’ll continue all week. And next week. And next month. And next year.
What are you waiting for?!
Start learning the process for small-account profits!
Cheers.
Leave a reply