I Reset My Account to $2,000 (AGAIN) Charles Schwab ThinkorSwim Challenge Ep 1

I have just reset my account back down to $2,000, 
which means my brand new small account challenge   starts right now. And this may be one of the most 
exciting small account challenges that I've done   in years because there has been a major shift 
in the market. A rule which was put in place on   February 27th, 2001, just after the dot bubble 
stated that if you were going to day trade,   you needed a minimum account balance of $25,000. 
On June 4th, 2026, that rule is repealed. It's   gone. which means for the first time in 25 years, 
I'll be able to actually day trade with a $2,000   account using a US broker. That is a huge deal. 
It's going to be a big shift for small account   traders like me and like many of you. So, if 
we jump onto the screen share, we've got a full   class today. This is going to be a deep dive. I'm 
gonna walk you through the choice of broker for   this small account challenge. I'm going to share 
with you the strategy including stock selection,   the exact technical entry points and exit points, 
and I'm going to share with you how I'm going to   be managing risk trading with such a small account 
because, as you know, trading is risky. So,   I'm going to go ahead and put this slide deck 
on full screen and we're going to jump in. Now,   if you've tuned in to previous small account 
challenges I've done, I've typically done one   of two things. I've either traded with a US broker 
and if I have, I have been, of course, subject to   the $25,000 pattern day trader rule, which meant 
I had to treat the account as a cash account. So,   if I had $2,000 in the account, I could take 
one trade per day with $2,000, or I could take   10 trades with $200. Doesn't really matter how 
you slice it, but I have $2,000. And once I run   out of that money, I can't take any more trades 
until those trades settle. Now, T1 is the current   settlement period. It settles overnight. When I 
was trading earlier in my career, it was T3. So,   if you took a trade on Monday, you wouldn't be 
able to trade with that same those same funds   until later in the week. So, it it was completely 
impractical to trade in a cash account. Certainly   impossible to try to day trade in it. But 
if you wanted to trade in a margin account,   you needed $25,000. So the second thing that many 
of you have seen me do during these small account   challenges has been to utilize the sort of um 
a cottage industry of offshore broker dealers,   broker dealers in the Bahamas, in the Caribbean, 
and various locations because the pattern day   trader rule was enforced by US regulators and 
so all US broker dealers had to follow it.   But if a broker was in Europe or the Caribbean 
or anywhere else, they didn't have to follow the   pattern day trader rule. So, a lot of US residents 
were going offshore to open their accounts,   which was one of the arguments in favor of 
repealing the pattern day trader rule was   that it was hurting US broker dealers and 
in fact hurting US traders as well because   exposing yourself to offshore broker dealers 
that may not have the same deposit insurance   and the regulations that we have here in the US 
was sort of an unnecessary hurdle that people were   uh going through. So the old technique in the US 
with a cash account with a tooth with any small   account was to treat it as a cash account and 
focus on taking one trade a day. So that's gone.   That's out the window as you know because of this 
pattern day trader rule change from February 27th,   2001 until June 4th, 2026. This is an article that 
I wrote about it right here um on entrepreneur and   these are articles that have been um on a number 
of other websites here talking about this rule   change. It's definitely a big deal. I've done a 
number of episodes talking about this rule change.   I was active in petitioning for this change to 
take place and actually um my attorney who was   working and representing me uh he wrote a letter 
to uh the regulators explaining our position and   that letter was actually cited in the official 
rule change as um as one of the the reasons that   this rule change should take place. So this is 
really good news for traders. It democratizes the   market and it levels the the playing field also 
between futures, crypto and um and forex which   by the way have never had a pattern day trader 
rule. So in any case this is exciting news but   what does it mean for the small account challenge. 
So under you know right now this account in fact   at Schwab which you could see I currently have a 
minimum equity call in effect. What this says is   that I can't trade in this account until I deposit 
more money because it's below $25,000 because as   of today I'm recording this video and they have 
not yet it's not yet June 4th. So we're still   under the old rules. So under the old rules with 
a $2,000 account that's a margin account. I can't   take any trades. My account's restricted. It's 
a bummer. All right. So with a margin account,   I can take an unlimited number of trades. And this 
is me trading in a margin account. These are 200,   300, you know, hundreds of trades a week. Look at 
this. 210, 367, 209, 129 trades, 216 trades. So,   is this what my first week with a small account's 
going to look like? No, it's definitely not going   to look like this. This is a lot of trading. 
And while this is okay for someone with my level   experience, this is not how I should approach 
trading in a small account. I should even though   I can take a hundred or even a thousand trades 
or 10,000 trades I suppose in one day that's not   what I should do. So it's awesome the pattern 
day trader rule is out the window and gone but   I still have to moderate myself in terms of how 
many trades I'm willing to take. At the end of the   day my goal is to produce profit and to produce 
it consistently. That means I have to follow a   set of rules. These rules are what create my small 
account day trading strategy and that is the topic   of today's class. We're going to begin number one 
with the choice of broker and I'll remind you that   not all brokers are created equally. So I'll 
share with you a fairly extensive um comparison   that I've put together comparing the top brokers 
based on a number of different criteria. So we'll   get into that in a moment. Then we're going to 
get into stock selection. Trade the best, leave   the rest, waiting for stocks that meet my five 
pillars of stock selection. Then we'll get into   the technical entry requirements, focus on the 
highest probability candlestick chart patterns.   Then we'll finish with risk management. Last, but 
certainly not least, the rules of knowing when to   walk away each day. I'll give you some recommended 
reading and I'll also include some downloads as   part of today's episode so you guys can walk 
away with not only what you learn in the video,   but also some PDFs that you can begin using 
in your own trading. All right, so with that,   let's go ahead and jump in. And let me remind you 
that everything I share with you when it comes to   strategy is based on my own trading success, based 
on my own trading history. In fact, it's the data   from over $22 million in trading profits. So the 
scanners that I use every single day, just as an   example, I've developed, they're customized for 
myself, and I customize them using my historical   data. So those scanners are searching the market 
in real time for the type of stocks that I already   know I'll make the most money on. So once I see 
these stocks right in front of me, then all I have   to do is execute on the trades. So, I share this 
with you because there's certainly some people out   there on social media, YouTube, and elsewhere 
that talk a big game about trading, but are   not actually trading profitably themselves. That 
That's a problem. To me, that's a problem. I think   it's important if you're going to teach trading 
that you can put your money where your mouth is   and actually execute on these trades that you're 
teaching about. And I do that every single day.   Now, I also want to update you on the progress 
on our fundraising challenge. As you know, all   of the profit from these small account challenges 
is getting donated to charity. And every time you   guys hit the thumbs up on episodes in this 
series, the small account challenge series,   I add an extra dollar to how much I'm donating 
to charity. We've already raised $278,000, which is phenomenal. And I've donated 279,000, 
which means I'm a little bit ahead of you guys, to   these various charitable organizations. I have a 
goal of donating money to one children's hospital   in every single state in the United States. 
We're right now up to I think 19 or maybe 20. So,   we're not quite halfway there, but maybe by the 
end of this series, we'll be able to cross that   milestone of donating to a children's hospital in 
every state in the US. So, that would be really   exciting. Thank you guys for helping make this 
possible. And let's go ahead and jump in with   number one, choice of broker. Okay, so you know 
there are dozens and dozens of different platforms   out there but they are not all created equally 
and that kind of makes sense. We're in a market   where it does u it's logical to specialize and 
so a lot of these brokers specialize in a certain   niche and they become very popular for traders 
within that niche and if you're not in that niche   then that's not the broker for you. You go to the 
broker that's within your niche and other brokers   try to be no pun intended a jack of all trades. 
They try to be a little bit of this, a little bit   of that. And when they try to do that, generally 
they're not they're not perfect for anyone. It's   not the best of both worlds. It's the worst of all 
worlds because they're not really good at any one   thing. They're just mediocre at everything. So, 
the king of mediocrity when it comes to brokers,   um, sadly is is probably gosh, I' I'd probably say 
it's Erade. Um, they are a broker that they used   to be good and then they just tried to be popular 
for everyone but not a specialist at anything and   they've really fallen by the wayside. Weeull 
is the broker that I used for one of my last   small account challenges. They were really 
good. However, in the last 6 months, they've   begun implementing restrictions that prevent 
you from trading highly volatile securities.   That is a problem for me and for all day traders 
who are specifically hunting for volatility. We   don't make money buying something at five and 
selling it at $51. We make something buying   at five. We make money buying something at five 
and selling at six or seven or eight. So if they   start restricting every stock that has volatility, 
then they're a broker that we can't use anymore.   So Weeble is off the table. Robin Hood, I did 
a small account challenge there. Their platform   is not up to par with what traders like myself 
need. Trade Zero, Interactive Brokers, Lightseed,   these are all interesting, but let me pull up 
my Excel sheet for the best broker. Really, the   question is in for me balancing performance and 
affordability. I need a platform that has really   strong performance, but I don't want to spend 
too much money on it. And that's really the main   issue. So, if I pull up my sheet here, my um my 
Google sheet, these brokers in orange at the top   offer uh direct routing. Direct routing means you 
can send your orders straight to the market. So,   you've got the exchange here. So, you've got the 
exchange right here, you've got you right here,   and you've got your broker right here. So, a 
direct access broker will let you send your order   to the broker and straight to the exchange right 
back and right back. But what a lot of brokers   are doing and however when you do this you have 
to pay a commission. That's the problem. The the   exchange charges you a commission and the broker 
passes it back to you. So this costs you money.   Now what a lot of brokers have ended up doing 
is offering free commission trading, right?   You've heard about that. And what happens is the 
broker doesn't send your order to the exchange.   They send your order over here to a wholesaler 
and the wholesaler executes your order offmarket   essentially and then sends it back and and it's 
free. Well, this seems like a great deal and it   is in a way except when you get into the nuance, 
you realize that the wholesaler is making money   and the reason the broker offers free commission 
is because they're giving a kickback straight   to the broker right here. So now the broker 
is also getting paid by the wholesaler. So,   the exchange is losing, that's for sure. But what 
about you? Are you happy or are you sad with this   arrangement? Well, I think that depends on who 
you are and what you're looking for. For me,   when I'm trading in a multi-million dollar 
account, I'm sad with this arrangement because   when I try to send big orders to the wholesaler, 
the wholesaler is like, um, 100,000 shares, uh, D,   let's see, and that's the clock ticking. D. Okay, 
we can't get you that. We can get you part of it.   And then I'm sad because I didn't get my whole 
order filled. Yeah, it was free, but I didn't   get the shares I wanted. When I go directly to 
the exchange, I get the shares I wanted. So,   for me, trading with a big account, I want to 
use direct access routing. But when I'm trading   with a small account, I want to use commission 
free because when I'm executing small orders,   the wholesaler gets them really quickly and it's 
no problem. So there's kind of an interesting   um spectrum here where I think commission free is 
great up to a certain point and if you stay with   commission free, you'll start having diminishing 
returns because it can't scale with your trading.   And on the other hand, if you use direct access 
too soon, you lose money and then here you start   to have a crossover. you lose money because the 
commissions are too high relative to what you're   trading. So, for this small account challenge, 
I'm going to be right here obviously with $2,000.   And so, it makes sense for me to use a commission 
free broker until I get to right about here. When   I start to level off, that's when it's time to 
switch. And then I'll just do an account switch.   So, on that day, I'll switch over to my uh one of 
the direct access brokers and then I can resume   this upward trajectory. So, I don't have to go 
down here and I also don't have to suffer in the   middle. That means I have to be willing to switch 
brokers kind of midway through the race, but I   have no problem doing that. And and you shouldn't 
either. You don't have to be loyal for life to   your broker. Your broker is a tool. They make 
money on you. They want you to use them forever,   but they're a tool. So, you use the one that's 
best suited for where you're at right now. So, for   this small account challenge, Weeble is one of the 
brokers I'd previously used. They were previously   a 7.5 on my score, the raw score of 1 to 10, 
but they've gone down to a six because of the   restriction that they're adding to a lot of these 
small cap stocks. Weeble is an excellent platform.   It's fast. It's easy to use. You can customize 
it. The platform right out of the gates doesn't   require anything additional. You don't have to add 
um you know thirdparty software. You don't have to   um really customize it all that much. I mean, 
it just it just works right out of the gates.   This is my Weeble account right here. And I love 
it. I I've been totally happy with Weeble. So,   it's such a shame that they're restricting trading 
in these volatile securities. It really is. But it   is what it is. So, their score has dropped. 
Now, Trade Station's a little bit higher.   They're direct access broker. I can't use them. 
That's going to be too expensive. All of these   ones down here are out. Robin Hood, Fidelity, 
Interactive Brokers. For a v variety of reasons,   they underperform on my testing and I wouldn't 
use them. So then we start to move up here. Well,   these ones are all out right here. I can't use 
any of these because they're direct access. Now,   Trade Zero International is an interesting 
an interesting option. However, I wouldn't be   inclined to use an international broker even 
though they have a commissionfree offering.   I would be more inclined to use a US broker. And 
so here we have Schwab. And you'll notice that we   have Schwab on here twice. Schwab is in this 
column here with Thinker Swim. And Schwab is   in this column here with Dash Trader. You can use 
different trading platforms with Schwab. And when   you use Dash Trader, I rank Schwab at a 7.45. When 
you use uh Thinker Swim, it's ranked at a 4.9. All   right. So, we've got to dig a little bit deeper 
into what all that is. So, I'm going to hide this   for a second. So, when it comes to Schwab, they're 
not the fastest, but they're also not the slowest.   This is where they rank right here. These right 
here were direct access brokers, including Trade   Station and including Interactive Brokers because 
you can route direct with Interactive Brokers. So,   Thinker Swim was the fastest of the commissionfree 
brokers. It's faster than Weeble, Robin Hood,   or Fidelity, which is great. I didn't test E Trade 
because at this point, they're kind of they're   so late to the game that people really aren't 
using them. Now, the way I set up this testing,   this is my own um personal testing. And the 
way I set this up was I funded accounts with   all these different brokers. I executed trades 
and I timed them. And so, I went into my video   editing software right here, and I just measured 
uh from start to stop how long the trade took to   execute. And so, you could see the first one was 
lighteed trading. That's the broker in New York   that I've been using for more than a decade. And 
they're really they're really fast. I like them,   but they're expensive. I mean, it's all relative. 
It's uh cost of business. It's money well spent,   but it is expensive if I if you're doing a small 
account challenge. And then we have at the very   bottom the slowest one, which was Fidelity, which 
was unfortunate because they're great for a lot of   things, but when it comes to day trading, they're 
they don't really excel. So, that's how I did the   the speed test comparison. So, Think or Swim, or 
I say Thinker Swim, but I mean Schwab is not the   fastest, but it's also not the slowest, but they 
do have a very compelling offering because they   are such a popular broker. Remember, Schwab bought 
a trade and it brought all its customers there.   So, Schwab is huge. They're the biggest US broker 
dealer. And because of that, when you execute your   orders with their wholesaler, the wholesaler 
is so big that they can accommodate a lot of   orders going through, even a little bit on the 
bigger side, not all the way to how big I trade,   but a little bit bigger. And you get something 
called price improvement. So, the way it works   with a wholesaler, not to get into the weeds, but 
on an exchange, stocks can trade $1050 by1052 like   that. But a wholesaler is able to split the penny. 
Exchanges are not allowed to split the penny,   but wholesalers can because they're on alternative 
trading systems, which are not exchanges.   So that means they can give you if you're let's 
say you're a seller, you could sell at 1051.1 and that 0001 is called price improvement. It's 
not a lot of money, but these pennies add up   over time. And maybe maybe on on one of those 
trades you get 0003 on 10,000 shares, that's   $30 of price improvement. So, if you had 10 trades 
in one day and you got $30 of price improvement on   all of them, that'd be an extra $300 of profit in 
your trades because of price improvement. And so,   that's when you sell. Now, if you buy, instead of 
paying um so 51 was on the bid and 10 uh 52 was   on the ask, you might be able to get in slightly 
below that for instance at 10519. So you save,   you know, maybe 10 bucks or whatever it is on 
your entry. So and and this is the thing. You   say you make a sliver, the wholesaler makes a 
good chunk, and the broker makes a good chunk,   but you still make a sliver. And the the real 
person who loses is the exchanges over here. Now,   if the exchanges don't want to lose anymore, they 
will either block the alternative trading systems   from trading down below uh the 1 cent spread 
or they will allow themselves to trade down to   1/100th of a penny. But until that happens, this 
is the relationship that we have. So, because of   that, Schwab has become well and not just because 
of that, but Schwab has become the biggest broker   in the United States. And as a result of being the 
biggest broker, their wholesaler is is trade is   um filling so many orders that they actually claim 
that you get price improvement on 98% of your   orders and that they offer seven times the shares 
versus the displayed quote. So that's actually   really interesting. Seven times the shares versus 
the displayed quote. So what that means is that if   we had 1051 by 1052 and there was a 10,000 share 
seller on the ask right there just for the sake of   argument. We'll just keep it simple. What they're 
saying is that they have times 7 in liquidity. So   that's because the wholesaler they're saying the 
wholesaler has extra shares. So if you want to buy   you can take 10,000 you could take 70,000 because 
the wholesaler has those shares available. Now,   that might not really be the case up to 70,000 
shares, but in the case of, let's say, a 1,000   share order, you could easily probably get 7,000 
shares at 1052. Whereas, if you were using another   broker that doesn't have such a good wholesaler, 
you would end up paying a little bit more to get   all those shares. It's only a,000 shares on the 
ask, but you want to buy 7,000. That means you've   got to buy the 1,000 at 52, you know, let's say 
the 3,000 at 53 and um the 3,000 at 54. So now   you've got a blended average of like you know 10 
50 uh you know 53 whatever 53 and a little bit   right 53.3 let's just say. So, if you were using 
the wholesaler and you got in at 1052 um with   the whole size, the whole 7,000 shares, maybe you 
even got a little price improvement, you got in at   10519, that on on 7,000 shares versus being in at 
10533, you know, you're talking about, you know,   a a meaningful difference. I mean, that's $70. 
Um, which is the the variation there between   wholesaler or direct access. Again, like I said, 
if you want the shares filled and you're trading   with as big of size as I'm trading, then you do 
need to use direct access, but for everyone else,   um you know, using commission free, it it 
has a very compelling offering. So, in fact,   these commission free brokers are required to 
file SEC reports, and they actually state how   much price improvement you get. And so Schwab um 
says you get $14.32 average price improvement on   orders up to 5,000 shares. That's the average. Now 
some of these brokers, you know, it's a little bit   confusing trying to interpret them. Um Erade says 
$8.83 average for orders up to 10,000 shares. Um   Trade Station was $34 average. Trade Zero's not 
published. Weeble was a dollar or yeah a $18 per   share. So they kind of quantify it a little bit 
differently, but nonetheless um from the from the   latest uh reports that I got, the only broker that 
offers more price improvement is Fidelity, which   is great. $24 for up to a thousand shares. That's 
really impressive. But Fidelity's platform really   isn't good for trading, which means the fumbling 
you would do trying to get in and out would offset   whatever you make in price improvement. So 
more liquidity and price improvement are   um two of the compelling reasons why I'm using 
Schwab for this small account challenge. It's   hard because we've always sort of called Think 
or Swim, Think or Swim, even though it was a   merit trade and before that, you know, it's it's 
a platform, but the broker is Schwab. But there is   a downside. Thinker Swim as a platform does not 
offer customized hotkeys, customized level two   halt levels, resumption quotes for stock holds. 
So, if you use Thinker Swim, and many of you do,   you've probably noticed if you've tried to use 
it pre-market, you're really fumbling around.   You've got to change your time and force has to be 
to extended hours. You've got you can't use market   orders. So you can't do buy market, sell market. 
You can do buy ask, but if the stock is moving   quickly, you might not get filled. So the platform 
is very finicky. It's not easy to use. You can't   customize your hotkeys. And so this creates a real 
challenge. Similarly, I suppose to fidelity. Now,   with Thinkorswim, however, or Schwab, there 
is an alternative. You don't have to use   the Thinkorswim platform to trade with Schwab. 
Schwab offers or allows you to API with a number   of different third-party trading platforms. So, 
these are trading platforms. They're not brokers.   They're just the front-end software that you use 
to execute your orders. So your orders are still   executing through Schwab, but instead trading 
on Thinker Swim, you're using, in this case,   Dash Trader. Now, this is a solution, but there's 
a cost, and the cost is $150 a month. Now,   I'll tell you guys right now, I have no affiliate 
relationship with Schwab, with any broker for that   matter. I have no affiliate relationship with 
Dash Trader. So, use what you want, don't use   what you don't want. I am just sharing with you 
the tools that I think make the most sense for   this challenge. So $150 a month allows me to use a 
commissionfree broker which is awesome. So I save   certainly more than $150 a month on commissions 
and I get to benefit from price improvement and   I get to benefit from the improved liquidity. So 
these are the pros and the con is $150 a month and   I can live with that. So Drader is a ju it's just 
a trading platform. They're not a broker dealer,   but it's a trading platform that can be used 
with dozens of different brokers. In fact,   what's very interesting is that all of these 
direct access brokers offer Dash Trader. Dash   Trader is considered more institutional level 
sophisticated professional trading software. So,   you can use it with all of those brokers. Most 
of the commission free brokers don't let you use   these thirdparty platforms. They want you to use 
their, you know, homegrown housebuilt software.   But Schwab is a little different. Schwab doesn't 
care if you use a third-party platform to execute   the trades. They're just happy that you have your 
money there. And so this creates a win-win for us   right here with Schwab. All right. So, we're going 
to put a nice border around Schwab for this. We're   going to go make it we'll make it purple. All 
right. So, we should probably make it blue because   that's the color that they use for their platform. 
So, we'll go blue and we'll make it a little bit   bigger. All right. Uh, we don't need to go for all 
of them. We'll just go like this. All right. Well,   that's fine for now. We'll just leave it like 
that. So, this is the Schwab column. So, this is   the platform that we're going to be using or I'm 
going to be using for this challenge. And so, with   Dash Trader, if you go over to the Dash Trader 
website, you can sign up to Dash Trader. It's very   easy to do it and you can integrate it straight 
to your Schwab platform. So over here on DAS,   we click subscribe and you could choose whether 
you're going to subscribe for Interactive Brokers,   Schwab. You could use their simulator. It's around 
$150 a month, I think. Let's check 200 a month,   but you don't need all that data. 150 a month 
for basic data. And that's level two, but doesn't   include everything. And that's the same as what it 
is for Schwab. So you go over here to Schwab. You   click on Schwab. And then you just go down to $150 
a month. And boom, you can sign up with PayPal and   you're good to go. After you sign up, you send 
the authorization to Schwab and it allows you to   begin executing your orders on Dash Trader. Now, 
for those of you guys who have used it before,   you know how this works. For those of you who 
haven't, it's desktop software, so you download   it and you run it right on your computer, which is 
great. That makes it very lightweight. You don't   have to worry about your browser crashing. It just 
runs. It's It's software that's been around for a   long time, and it's been really good for me. Now, 
what I'm going to give you guys is instant access   to my Dash Trader layout. So, you can download my 
layout and install it. My small account strategy   PDFs are also included in this download. So, I'm 
going to pin a link to the top comment and put it   in the description so you guys can download 
this layout. So, what you do is you load my   layout. When you load my layout, this is what it 
looks like right here. I have it customized with   these colors and this font style and everything 
else to be exactly the way I like it. Now,   the next thing we've got to do is we've got to go 
add our hotkeys. So, we're going to jump to the   next slide and I'm actually going to pull up the 
platform right here and I'm going to show you how   to set up these hotkeys. So, I'm going to go to 
tools. I'm going to go over to setup. Actually,   I'm going to go to hotkey script and I'm going to 
click on hotkeys. Now, these are the hotkeys that   come included. To be honest, I probably don't need 
most of them, but I'll I'll leave them for right   now. They're not causing a problem. I'm going to 
add a new item. The new item I'm going to add is   buy hotkey. So, what we're going to do is we're 
going to go down to the to uh actually I'm going   to go over to the order script right here and 
I'm going to choose that this is a buy order.   I'm going to type in the share size and I'm going 
to do the share size based on my buying power.   So, if I use 50% of my buying power, that means 
my trade would be for $1,000 on my first day,   which would be fine. I could take 10 trades with 
$1,000 if I want, and I'll be able to trade as   much as I'd like. Now, if I want to increase this 
to 75% or 80%, whatever, or 25%, decrease it,   that's fine. But, I'm going to set my share size 
to be based on how much buying power I have.   Then I'm going to switch my symbol and I'm going 
to let it be whatever's on the actual level two   window. I'm going to change the price to the ask 
and I'll give a little offset of 5 cents. Oop,   not 50. I'll do 05. For my big account, I do 10 
cents, but for this one, I'll leave it at five.   You select your account. You then choose your 
route. I'm going to choose a limit order. I'm   going to choose the time and force, which is day 
plus. I'm going to say load and send right there.   I'm going to build the script. Boom. And the only 
thing I'm going to need to add would be my account   number. And then it'll execute. For the hotkey, 
I'm going to go shift one. And that'll be in order   to execute. When I press shift one, commit. Boom. 
Now we add a new hotkey. We're going to add a new   one for sell. We're going to go again to the 
order script wizard. We're going to put it on   the cell side. We're going to do share size. So 
position times half. This is going to be symbol   price. I'm going to do bid. /// CORRECTION: IN THE VIDEO I MADE A TYPO AND PUT THE OFFSET FOR -50 CENTS. IT SHOULD BE -.05 FOR 5 CENTS /// limit route. We're going to do the same time and 
force of day and we're going to load and send. So   what this is going to do is it's going to sell 
half of my position and I'm going to put that   on control X which is the hotkey I like to use 
for cell half. I'm going to now commit to that.   I'm going to now open this item and I'm going to 
make a copy. So sell full would be just selling my   full position. Take away that. That's control Z. 
Commit. And then I could do another one here. This   one was cell half. And then another one here. Open 
this one and duplicate. Make a copy. And this will   be cell quarter. And I do control Q. Oops. Crl + 
C. No, that's right. Crl C. And I'll set that to   0.25. Commit. And now what I have is a hotkey that 
will allow me to trade in and out. So what I can   do now I already have an account here with um with 
Schwab. So what I can do is I can go ahead and   execute this order. I'm going to this doesn't have 
any volume. So I'm going to switch over to Ford.   We'll just switch to Ford. I'm going to press 
shift one and the order is going to send. Oops.   Gosh, that's too much buying power. Okay. Well, 
that's fine. I was again I wasn't expecting to use   that much buying power, but it's fine. I've got 
10,000 shares of swap. All right. So now what I'm   going to do is I'm going to press control QRL X to 
sell half. And there we go. I sold half. I'm going   to sell another half. Another half. And another 
half. Okay, there we go. So I lost 200 bucks,   but it's a good demonstration. All right, so now 
what I'm going to do is I'm going to jump in here   and I'm going to add one more hotkey. And the 
hotkey is going to be cancel all orders. So I go   over here. Um, for this one, I can just go to this 
dropdown for trade and then let's see, cancel,   and then cancel all for the symbol. All right. Um, 
and so I'm going to add this right here. And I'm   going to set it to control Q. Commit. Boom. And 
now, just like that, I have an order that will   cancel. So if I do if I put an order down here of 
a thousand shares for instance down right there   and it's just sitting there I can press control 
Q to get out. So control Q and I'm out of that   trade. So that makes it that makes it easy for 
me to get in. It makes it easy for me you know   to cancel my order if if I don't get filled. So 
having those cancel orders are important because   if you have orders out, you know, you put 10 
orders out or whatever the case is, and then   suddenly they're not filling, you can't put out 
more orders without first canceling these orders   because those orders are using up your buying 
power, right? So you can't put out orders for   more than your buying power or they won't fill. So 
you've got to make sure you cancel orders quickly   if they don't execute. That way you could place 
the next one. Okay, so now let's jump back into   the slide deck for u the next slide. Now you're 
up to speed with the layout. You've been able to   uh add some hotkeys. And now I want to share with 
you a feature that most people don't know about.   Dash Trader allows you to execute in more than one 
of your Charles Schwab accounts at the same time.   So if you have two accounts, you could execute 
the same exact trade in both accounts at the same   exact time. That is really interesting. But what's 
the use case for even having two accounts? The use   case is that many traders, including myself, have 
both a taxable account, which is the account you   would use for trading for income. If it's if it's 
profit that you take out right away, it's cons   it's considered income. And so so it's taxable. 
But a lot of us also set up a retirement account   so we can save for long-term retirement, right? 
at the same time. So using multi-account syncing,   you can execute the same trade in two accounts 
at the same time. So you don't have to choose,   do I trade in my taxable account today or do I 
trade in my retirement account. You could trade in   both of them on every trade you take. So I'm going 
to share with you how you set up your hotkeys to   do exactly that. And now what we're going to do is 
we're going to go back to the hotkey script. We're   going to go over here and we're going to create a 
different buy hotkey. Well, we could use the same   one. It's fine. All right. So, I'm going to do 
this. Um, and I'm just going to do shares. I'm   going to do 500 shares. All right. So, we're going 
to do um the last item that we had to add was the   account number. All right. So, I'm going to add 
first account number. Um, and then I'm going to   copy and paste that right here. I put a semicolon 
right after the first send. And then I switch to   my second account for the second one. Just like 
that. So, what I'm going to be doing here is   executing an order in two accounts at the same 
exact time. Both are for 500 shares. Both are   the same price. Ask plus five. And u the time and 
force is the same. So, I'm going to copy. Well,   so I'm going to just going to go copy. I'm going 
to paste this because I'm going to need to add   these to my sell orders as well. So, I'm going to 
cut those and I'm going to commit. All right. So,   now let's try to execute an order. So, let's 
switch to a different stock. Let's do we'll   do this for right now. Okay. So, let's do shift 
one. So, I do shift one right here and I filled   both at the same time. So, these are two different 
accounts. So, they're both in. And look at this   price improvement. One is in at 17665. The other's 
in at 17669. So, one has a little bit more price   improvement versus the other. Interesting. Now, 
when I go to cell, I just set up the hotkeys   exactly the same as you already saw, except that I 
create a second version. So, cell full, we'll just   do this. So, we'll go and copy these two account 
numbers. So, this will be the first one right up   here. And then we'll copy this. Oops. Undo. Copy. 
Paste right there. Semicolon after the send. And   now, um Oh, we didn't want to go 50 cents. We 
wanted to go 5 cents. Sorry about that. All right,   that's fine. So, there we go. And commit. Okay, 
so now let's go control Z. Ctrl Z. And it's going   to sell both positions at the same time. Now, as 
you can see, there's a slight variation between   the two. I notice that when I'm trading uh usually 
for these demonstrations where I'm getting in and   out and it's like basically at a break even point. 
But when a stock is going up 25 cents, 30 cents,   40 cents, they usually align pretty closely. And 
so I've used this and you guys have seen, well,   those of you who are members at Warrior Trading 
have seen me demonstrate this. I did a long   uh several months of doing this, not every day, 
but but quite frequently and showing traders how   it essentially allows you to double up your 
profit, but also double up your loss when   you're losing. So, while this probably isn't 
something that you're going to be doing on day   one of a small account challenge, this is another 
compelling reason why Schwab is a good candidate   for relatively small account traders. You can have 
your small account and you can set up your Roth   IRA. Remember, when you're trading in a Roth 
IRA, you pay tax on the initial contribution,   but then all of the profit that it produces will 
be tax-free when you begin taking withdrawals at   retirement age, which is 59 and a half years old. 
So, what to me, what is the downside of setting   up a Roth IRA and just taking the same trades in 
both accounts? The only downside is coming up with   the money to do it initially to set up the the 
two accounts. you've got your main account and   then an extra, you know, $3,000 or 6,000 to set 
up your Roth IRA. But if you could get past that,   then to me, it's a no-brainer because I'm a big 
proponent of making sure you're saving for later.   Save for retirement. Save for later. Especially 
when the market is really hot. And because Schwab   advertises that you get six times or seven times 
the liquidity versus the displayed quote, trading   with two accounts is not an issue because there's 
more than enough liquidity for you to buy shares   in both accounts. So boom, that's to me it just 
makes so much sense. All right, so we're going to   minimize this. We've got all the positions closed. 
So cost $247. No big deal. Doesn't matter. Happy   to do it just to give you guys that example. All 
right, so now we'll go back into full screen here.   So the plan will be to use Think or Swim. Now I 
will say that my understanding is that Thinker   Swim will will on certain stocks offer leverage 
the ability to trade with borrowed money. But   on many of the small cap stocks that I like 
trading, they won't be offering leverage,   which has already been the case for a long time. 
So if I had wanted a broker where I could grow my   account as quickly as possible, I wouldn't use 
Schwab. I would use one of the offshore brokers   that are still offering six times leverage because 
using leverage would allow me to grow the account   faster, but that's not going to be the right fit 
for most beginner traders. And so that didn't feel   like the right place to start. And I would argue 
that a lot of beginner traders would probably have   preferred to just use Weeble because we wouldn't 
have had to go through this whole demonstration   of setting up the API with Dash Trader and how to 
use the hotkeys. But Weeble started restricting   stocks. So now Schwab has become really the 
the best uh candidate for a small account   trader. And I know it requires a little bit of 
um learning a new platform, but it's to me pretty   straightforward. It comes pretty quickly and it's 
going to benefit you in the long run, especially   if you end up making that switch to a direct 
access broker later on because then you're already   going to know how to use the software. Okay, 
so now number two, stock selection. We already   talked about number one the best broker for day 
trading that not all brokers are created equally.   Now let's talk about stock selection. So when it 
comes to stock selection I want to reiterate it's   very important not to overtrade. A lot of traders 
fall into the trap of overtrading and it gets them   uh it it causes unnecessary loss. So my focus 
and philosophy is trade the best, leave the rest,   and wait for a stock that meets my five pillars 
of stock selection before executing any trades.   So that's what I'm going to walk you through right 
now, those five pillars of stock selection. And   this is all based derived on data from over $22 
million in trading profits. I'll say again, my   results aren't typical. There's no guarantee that 
you'll find a result similar to mine. I've been   trading for a long time. So, I want you to manage 
your risk, take it slow, and you should always   practice in a simulator before putting real money 
online, right? Test it out. At Warrior Trading,   for those of you guys who don't know, we do offer 
a simulator for our members, our Warrior Pro   members, so you can practice the new strategies 
you're learning in a safe environment before   going live. So, just putting that out there. 
So, number one, I do the best on stocks that   have five times above average volume today. You 
can see that metric right down there. 500 times.   Five times higher than average is where I've 
made the most money predominantly. Number two,   I've done better on stocks that have higher volume 
today. Number three, I've done better on stocks   that are up more than 10% today. So why would a 
stock be up 10% on more than 25 million shares of   volume? That's five times higher than average 
because the company has breaking news. Nine   out of 10en times, that's the reason the stock 
is moving higher. Now, in this current market,   there's been a lot of stocks that start to squeeze 
up on no news, and people speculate that somebody   knows something. And of course, we don't really 
know the truth behind that. But there is some   theory to trading stocks that are moving up with 
no news because there's speculation about what   the news could be. But generally, it is either 
that the stock has breaking news or that people   believe news is coming that creates this big surge 
of volume. I also do the best on stocks between   two and 20. These are stocks that can offer larger 
percentage returns for small account growth. You   can buy a stock at $2 and sell it at four, you're 
up 100%. You buy a stock at $200, you're not going   to get it, it's not going to go to $400 in one 
day. That very rarely happens. And if it does,   it's on a extraordinarily volatile stock and 
it's just not likely. But getting moves from   50 cents to a dollar, $2 to $4, $4 to $8, those 
are more common. And so my sweet spot is between   $2 and and 20. Below $2, I don't do quite as 
well. I usually avoid penny stocks. And when   it starts to get a little more expensive, I also 
don't do as well. I find it a little harder to   manage risk. So the and then the fifth uh pillar 
of stock selection, I'm going to put all these in   a list for you, is that I typically do better 
on stocks with a float of less than 10 million   shares. Stocks with smaller floats typically make 
bigger moves because they have a greater imbalance   between supply and demand. That imbalance is 
what creates the momentum. So to break it down,   this is a stock here that went up 432% on 300 
million shares of volume, but the float, the   total number of shares available was less than a 
million shares. So people were buying and selling,   buying and selling, buying and selling, buying and 
selling all day long. It was a frenzied surge of   momentum. The stock went from a low of $2 a share 
to over $16 a share. This is a phenomenal move,   but it's not even close to the biggest move I've 
ever seen. So, here are my five pillars of stock   selection. Number one, the stock should already be 
up 10% on the day. Number two, five times relative   volume. Number three, there should be a news event 
moving the stock higher. If there's not, then I   may trade it knowing that there's the perception 
that news is coming, but recognize it's a little   higher risk. Number four, most traders prefer 
stocks between two and 20. So, that's where I'm   going to focus. And number five, the float should 
be less than 10 million shares. Boom. Those are   our five pillars of stock selection. And lastly, 
I trade the best in the morning. That's typically   when I make the most money. That's also typically 
when companies are putting out breaking news. So,   that makes a lot of sense. Okay. So now, if you 
guys download my suite of PDFs, even if you don't   use the Dash Trader layout, it'll include 
the stock selection, five pillars of stock   selection printout. So you can print that out, you 
could save it, begin using it in your own trading   starting today. All right, so we've talked about 
the broker, we talked about stock selection, boom,   boom, boom. Let's talk about the technical setup. 
So I have very specific candlestick chart patterns   that I use in my trading. I've uploaded fulllength 
training classes right here on YouTube that are   walking you through how to read candlestick 
chart patterns. Candlesticks are the universal   language of the financial markets. And it doesn't 
matter if you're trading forex, cryptocurrency,   uh you're trading futures, or you're trading stock 
like I am. All of these financial instruments can   allow you to view their historical price action 
and current price action using candlestick charts.   So, it's a universal language. When you learn 
to read the signals in this universal language,   you'll be seeing buy and sell marks all over 
the chart. You'll be visualizing it because of   the patterns that you'll see. So, my favorite 
pattern is a pullback pattern. A stock that's   surging up just after breaking news that's now 
having its first pullback. The first pullback   is the moment of truth. Does the stock roll over 
and people give up on it and it goes all the way   back down? If that's the case, I don't take a 
trade. But if it stops going down, bottoms out,   and then the first candle right here makes a new 
high versus the previous candle, that is my entry   indicator. And so my entry is the first candle to 
make a new high, which is right there. The moment   it breaks, I don't wait for the candle to close. 
It's the moment the price breaks that trigger. And   my stop is the low. It's as simple as that. Max 
loss, that's my entry. Profit target is a retest a   high a day. If we have a stock that's only pulled 
back a teeny bit, like maybe it's like right here,   and this would be like the entry for the first 
candle to make a new high right there. Well,   that's probably not going to work very well from 
a risk-to-reward standpoint because I'd be risking   too much and my target a high a day is so close 
right here. I don't have enough to gain. So,   that doesn't work. So, this is the pattern, but 
it's important that I'm able to manage my risk on   it. We'll talk about risk management more in the 
next section. So, that's the entry right there.   First candle make a new high. Profit target is 
a high a day. I don't sell just because I've hit   my profit target, though. I hold at the latest 
until the first candle closes red going back   down. But because candles can squeeze up quickly 
and drop quickly, if the price starts going down   and we start seeing a red candle forming, I don't 
have to wait for the candle to close. Remember,   candlesticks are based on periods of time. So 
on a one minute time, on a one minute chart,   each candle is one minute of time. So every 60 
seconds a candle's closing and a new one opens.   So we might only be 10 seconds into the next 
candle, but if it's diving down and going red,   I'll see the c current candlestick shape is red 
and I'll exit my position. I can always get back   in if there's another setup. So now this is 
a little animation of what this looks like.   The stock starts moving up. Now, as a stock is 
moving up, I'm using my stock scanners. These   are the stock scanners that have been programmed 
using all of my historical data to search for the   type of stocks I make the most money on. So, 
when I get an alert from the scan, I pull up   the stock. I see it squeezing higher. I check to 
see what the news catalyst is. We have a news feed   uh built right into this software. So, here 
we've got the news feed. I can see the company's   in Japan. So, I get to see, all right, this is 
where they're from. This is what they're doing.   The stock squeezes up fine. I missed that first 
move. I'm sitting patiently waiting because the   stock could drop all the way back down here and 
I don't want to get in at the top of this green   candle. I got to wait for it to pull back. So now, 
right now, that could be my stop. And right there,   if this next candle goes green, that's my entry 
right there. What happens? It goes green. That's   my entry. That's my stop. Okay. Then we're looking 
for the squeeze through the high of day. That's   the high of day. Awesome. And I keep holding as 
much as I can and as long as I can until it starts   to roll over. First candle to make a new high 
on an actual chart here. The three candles up   pulling away a little dip. That's the low. That's 
the first candle to make a new high. That's the   rally through the high a day. That's the top. This 
candle started to drop back down. That's the red   candle. That's the final exit. Notice the volume 
profile. These volume bars represent the number of   shares traded in each candlestick. So the volume 
increasing lighter selling on this red candle and   then the volume coming in again. The MAC D is 
a technical indicator that I use. It compares   the relationship between moving averages. 
When the moving averages are moving away,   the MACD is open. When the moving averages 
curl and cross against each other like that,   the MACD goes negative. Momentum traders trade 
when the MACD is positive, which it was from here   through here. We don't like to trade when the MACD 
is negative. We're trading against a headwind.   In this example here, we've got a pop up, a 
pullback, first candle to make a new high.   Squeezes up, pulls back again. This is a new 
high, but it's not a really great pullback,   unfortunately, because it it didn't dip down. It 
dipped down enough, but it it didn't it didn't   give you a first candle to make a new high where 
it was well below the high of day. But the rally   in volume is great to see. And even if it's not 
picture perfect, it's certainly a nice move. Now,   what about on this one? This is the example where 
we get that rally up, the red candle, and it just   comes all the way back down. Now, if I'm going 
through this quickly, it's because I'm aware of   the time and I want to make sure we squeeze in 
as much as we can. So, uh, but this gives you   a good flavor of the way I trade and also the way 
I teach, if not in a bit of a compressed version.   Light volume buying, high volume selling, not 
good. Right here, light volume buying, higher   volume selling, not good. right here. Nice rally. 
Pull back. First candle makes a new high. Rally,   pull back. First candle makes a new high. Rally, 
pull back. First candle makes a new high, but   it's right underneath the high of day. So, it's 
hard to manage risk on that trade. Right here,   we rally. First candle makes a new high after that 
rally, and it squeezes higher. Rally, first candle   makes a new high after that rally, and it squeezes 
higher. So, this is a day where I was up over   $100,000, and I was trading these pullbacks. Pull 
back, pull back. Little pullback there. Might have   lost on that. Got back in. Got back in. This one 
went from $8 to almost $12.50 a share. That's an   incredible move. I mean, that's amazing. $4 a 
share. It's a 50% move. This one, $278,000 in   one day. Boom. Boom. Pullback, pullback, pullback, 
pullback from a low of $4 to a high of $40 in one   day. This is a stock that had breaking news. The 
news was received well in the market. high volume.   MACD was open right there. It went negative. I 
didn't take any more trades after that. Boom.   Let it go sideways. Only trading it again if it 
can curl back to the high. This is a more modest   win here. $30,000. Trading the leading gainer 
in the entire market. So, getting that extra   reference point there. This using our scanners was 
the number one most obvious stock in the market.   First pullback. Second pullback. Nice. This one 
right here. First pullback. Second pullback.   This was um the leading gainer in the market as 
well as you could see right there. So found this   stock right on the scanners. Another nice rally. 
I mean these are just like backto back great   examples. Pullback, pullback, pullback, pullback, 
pullback. Once you see it, you can't unsee it.   So let me give you a pop quiz and test your 
knowledge. Is this right here a good spot to be a   buyer? Pull back. Pull back. Right up here. Check 
your MACD. MACD is negative. That's not a spot to   buy. The lid, the pop is shortlived and then it 
rolls over. No good. What about right here? MACD   is about to cross over. That doesn't look good. 
Looks like you already had a couple nice pullbacks   and now it's coming back down too much. Pops up 
for a second. Doesn't go back to the high of day,   which would have been our target. What about here? 
MACD is negative, right? High volume red candle   right there. No trade. Correct. What about here? 
MACD is positive. So, do we take the trade? High   volume selling. That's no good. We don't take the 
trade. What about here? MACD is positive. Volume   profile looks good. We take that trade every day. 
Boom. That's a nice trade. What about here? Oh,   this is a nice one. All right. So, I I don't have 
the thing covered up yet, but that's okay. So,   high volume, little pullback. MACD is positive. 
Nice trade. What about this one? We rally up. Now,   granted, this is a little higher, but it's still 
not nearly as high as the green. That's a place   I'm a buyer. We get a nice trade. What about 
this right here? The MACD is coming down. This   is a little bit of a topping tail, but the MACD 
tells a story. I wouldn't take that trade. I   wouldn't trust it. Number four, let's talk about 
risk management. When it comes to managing risk,   trading is a career of statistics. And you can 
set the bar low and make it easier for you to be   profitable, or you can set the bar high and make 
it more difficult. Setting the bar low means that   you always think about risk versus reward. You 
risk a dollar to make $2. And when you trade like   that, you've only got to be right 33% of the time 
to break even. But when you risk $2 to make only   $1. You'd have to be right 67% of the time to 
break even. And that's not sustainable. It's very   important to keep losses small. The name of the 
game in trading is risk management. Keeping losses   smaller on average versus your winners. keeping 
red days as few and far between as possible,   having less than your green days and keeping red 
days as small as possible. The first element of   risk management is trading aquality stocks. 
When you trade the highest quality stocks,   you invariably avoid some of the unnecessary big 
losses that draw down your profit loss ratio. You   focus on high accuracy that feeds a better profit 
loss ratio that feeds consistency. you do that.   Consistency is a strong track record that creates 
self-confidence. Self-confidence creates more   profitability because you feel good taking bigger 
positions. This is a positive feedback loop and   that's what I want to see you on as a beginner 
trader. It all starts with focusing on quality   over quantity. Now, it's important that you also 
know when to walk away, which is why I'm going to   give you some recommended reading. These two books 
by Annie Duke, Thinking in Bets and The Power of   Knowing When to Walk Away, Quit. These are books 
you should listen to on audiobook is totally fine.   They're there. It's it's all text. There's not 
it's not much visual to it, but these are great   books that you should read because knowing when to 
walk away is the discipline that separates winners   from losers. It's always better to leave money on 
the table versus giving back profit. So, I walk   away if I give back more than 20% of my profit 
because I want to keep the rest in my pocket.   I walk away if I have three sizable losses in a 
row. I walk away if I haven't taken a trade in   over an hour because the market's cooling off. And 
I I want to practice getting green and leaving.   It's important. It's important to build that track 
record for yourself. Now, I've tried to squeeze a   lot in in less than an hour here. If you've 
learned a ton and you want to keep learning,   we have a two-eek trial at Warrior Trading, 
which means you can watch over my shoulder as I'm   trading. You can also use the software I use every 
single day and really get a feel for what it's   like to be a member of our community. And you'll 
also have access to a selection of classes from   my fulllength Warrior Pro curriculum. For those 
of you guys that just want to check out a couple   more episodes I've got uploaded on YouTube, I'm 
going to put links to them right here and right   here. I would love for you to check them out. And 
reminder, every thumbs up that we get on episodes   in this series will be an extra dollar donated 
to charity. We're currently at $278,000 in funds   raised for charity and donated. Would love to get 
that over 300,000 on this episode. So, I hope you   guys hit that thumbs up and reminder as always, 
trading is risky. My results aren't typical. So,   manage your risk, take it slow, and I'll see 
you back here for the next episode real soon.