Happy Friday, Evolvers!
What a crazy and volatile week of trading this was.
On Monday and Tuesday, the market was ripping, with the S&P 500 ETF Trust (NYSEARCA: SPY) up nearly 5% over the two days.
I thought we could be gearing up for a first green week next week, but those hopes were quickly dashed…
By Wednesday, the bears were back in control. And by today, nearly all of the early-week gains have been erased, with the SPY down 2.5% at the time of writing.
In other words … If you thought the bear market was over, you were wrong.
As encouraging as Monday and Tuesday’s price action was, it got sold off so quickly that it now seems relatively meaningless.
Furthermore, the SPY could’ve been in a near-term short squeeze at the beginning of the week…
As I’ve mentioned, $34.3 billion in SPY put contracts has flown off the shelves in the past month, giving longs a good reason to squeeze the index higher.
Regardless, that move is done, and now we’re back in bear territory.
Bottom line: I won’t be convinced of a bullish pattern disruption until I see a first green week with high volume on the SPY. Trade accordingly.
But enough small talk. It’s Friday, so let’s get to the Q&A…
“How long does it take to grow a small account to six figures? I’m so tired of trading my tiny account…”
First of all, know that you’re not alone. I get questions like this all the time.
That’s because most traders with small accounts are anxious to graduate to the big leagues.
Like you, they say, “I can’t wait until I have a large account so I can make bigger trades and larger profits.”
And to that, I reply, “Start small, but dream BIG!”
Sure, it’s fun for new traders to fantasize about trading with a huge account.
Better yet … if those traders work hard and focus on their strategies, one day they probably will take on big positions and bag bigger wins…
But that’s not how you should start thinking about your trading, especially if you’re just starting with a small account.
I’ll let you in on a little secret … a large account is a double-edged sword.
You see, not only can a sizeable account allow for bigger wins … it can also lead to much larger LOSSES!
The more you have to trade, the more you have to lose. It’s as simple as that.
So, please stop worrying about how long it’ll take to grow your account. Every trader’s journey is different.
The longer it takes, the more experience you’ll gain. Then, once your account reaches the value you’ve been striving towards, you’ll actually be prepared to trade that size professionally.
Look at me. I started with $50,000 and it took me almost a decade to reach the millionaire milestone. But today, I’ve got nearly $4 million in my account.
Bottom line: Starting with a small account can help protect you from your own worst instincts as an inexperienced trader.
“What do you like to do when you’re not trading?”
After a long, hard week of trading, I love to watch basketball (especially my favorite team … the San Antonio Spurs)!
But more than anything, I’m a family man at heart.
When I’m not making plays in the options market, I’m usually spending quality time with my wife and three children.
My kids are still young, so it’s very important to me that I get to share this time with them. And trading gives me the freedom to do so.
But no trading gain or incredible prediction can compare to the feeling of watching my children grow into incredible little human beings.
I think it’s critical for traders to have activities they love to do outside of trading. That way, when you’re not trading your A-game, you have an outlet to disconnect and decompress.
Take me, for example. I’m a trader by trade (excuse the pun) — but I’m a dad and husband first and foremost.
Occasionally, I let my subpar trading get to me. But, ultimately, those missed gains (or small losses) don’t matter.
What truly matters is that after a tough week in the markets … I get to come home to the most beautiful family on the planet.
Have a great weekend, Evolvers!
Study hard and come back on Monday ready to crush the markets.
And if you’re looking for some good weekend reading material, check out my brand-new ebook right here.