{"id":1550,"date":"2018-12-31T07:00:10","date_gmt":"2018-12-31T15:00:10","guid":{"rendered":"https:\/\/www.steadytrade.com\/?p=1550"},"modified":"2019-04-05T11:56:08","modified_gmt":"2019-04-05T18:56:08","slug":"ep-78-trading-a-small-account","status":"publish","type":"post","link":"https:\/\/www.steadytrade.com\/ep-78-trading-a-small-account\/","title":{"rendered":"Trading a Small Account"},"content":{"rendered":"\n<div id=\"backtracks-player\" data-bt-embed=\"https:\/\/player.backtracks.fm\/st\/steadytrade-com\/m\/ep-78-trading-a-small-account\" data-bt-theme=\"dark\" data-bt-show-description=\"false\" data-bt-show-comments=\"false\" data-bt-show-art-cover=\"true\"><\/div>\n\n\n\n<p><script>(function(p,l,a,y,e,r,s){if(p[y]) return;if(p[e]) return p[e]();s=l.createElement(a);l.head.appendChild((s.async=p[y]=true,s.src=r,s))}(window,document,\"script\",\"__btL\",\"__btR\",\"https:\/\/player.backtracks.fm\/embedder.js\"))<\/script><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The competition is getting fierce in The SteadyTrade Paper Trading Challenge! <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In case you\u2019re not up to date, here\u2019s the current state of affairs. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Earlier in the month, during the <\/span><a href=\"https:\/\/www.steadytrade.com\/ep-75-high-on-weed-stocks\/\"><span style=\"font-weight: 400;\">\u201cHigh on Weed Stocks\u201d episode<\/span><\/a><span style=\"font-weight: 400;\">, hosts Tim Bohen and Stephen Johnson announced the first contestant to be eliminated. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">At that time, the rules of the competition also changed. In order to keep challenging each contestant, their respective account balances were lowered to just $1,500.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Suddenly, everyone was under the PDT (pattern day trading) rule, which limits the number of day trades that can be executed per week to three per five-day rolling period. This means that every trader has to be extremely tactical in choosing their trades.<\/span><\/p>\n\n\n\n<p><a href=\"https:\/\/www.steadytrade.com\/ep-77-pdt-hangover\/\"><span style=\"font-weight: 400;\">Last week\u2019s episode<\/span><\/a><span style=\"font-weight: 400;\"> offered an immersive update on Stephen Johnson\u2019s teammates Liz and Jude, who have been learning a lot and honing their skills bigtime. This week, we\u2019ll explore how Tim Bohen\u2019s remaining teammates are doing:<\/span><\/p>\n\n\n\n<p><i><span style=\"font-weight: 400;\">Note: <\/span><\/i><span style=\"font-weight: 400;\">Teammate Josh was unable to join this update episode, but we\u2019ll add an interview at a later point!<\/span><\/p>\n\n\n\n<p><b>Cara:<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">According to Cara, the self-titled \u201cJesus freak girl,\u201d the first few weeks with the lowered balance have been \u201chorrible\u201d. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Following an initial $40 gain, she went on a losing streak and was down over $300 at one point. However, on the very day that the episode was recorded, things started to turn around for her, and her losses are now just about $50 thanks to a winning short selling opportunity.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the episode, Cara discusses her approach to short selling a stock that has a history of a \u201cred to green\u201d move, and Tim offers constructive criticism to help her improve her approach. Every trader will pick up some valuable tips! <\/span><\/p>\n\n\n\n<p><b>Chris: <\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">He\u2019s made $1,115 in profits, which is, according to Tim, \u201cinsane\u201d (in a good way)! The very first day of the new challenge, he got into a very sweet short and was up $200 right off the bat. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">It was a great start that gave him lots of confidence. However, in spite of things going well overall, he has experienced his share of challenges. As he puts it, \u201cthe PDT did get me good one day\u201d. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">He explains how he identified a great setup, but how he experienced the huge and inimitable frustration of not having any trades left to execute when you\u2019re under the PTD rule.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">This adds to a greater discussion of trader survival techniques when contending with the PDT and how it kind of forces traders to be much more careful and calculated with rationing out their trades. <\/span><\/p>\n\n\n\n<p><b>WTF About PDT?<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">How does the PDT work? Basically, it\u2019s a limitation for day trades for traders with small accounts where they can only execute three day trades within a business week. So, if you were to make three day trades on a Monday, you can\u2019t make more until next Monday. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the episode, you\u2019ll get a greater explanation of the PDT, including what it actually is, why it exists, and how you can continue to profit in spite of (and possibly even because of) it. <\/span><\/p>\n\n\n\n<p><b>Tim\u2019s Team Review<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Tim is the first to admit: Had this been the same time last year, he would have expected to see some big numbers for this challenge. However, considering the constraints, he\u2019s extremely impressed with his team\u2019s work.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the episode, he offers his tips for success moving forward. Will his team pull ahead of Stephen\u2019s? Only time will tell! <\/span><\/p>\n\n\n\n<p><b>Moving Forward<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">To close out the episode, Tim, Cara, and Chris discuss what the rule changes should be for next month. An even lower account \u2026 or perhaps one very close to crossing over the PDT threshold? <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Do you have an idea for what might be the most compelling challenge? Feel free to leave a comment on this post with your thoughts! <\/span><\/p>\n\n\n\n<p><b>Got a Pressing Question?<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Do you have a question for Tim or any of the contestants? Visit the <\/span><a href=\"https:\/\/www.steadytrade.com\/submit-your-audio\/\"><span style=\"font-weight: 400;\">\u201csubmit your audio\u201d<\/span><\/a><span style=\"font-weight: 400;\"> portion of the website to ask us anything.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Thanks for tuning in to the SteadyTrade Podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders!<\/span><\/p>\n\n\n\n<p><b>Did you love this episode? Be sure to leave an <\/b><a href=\"https:\/\/itunes.apple.com\/us\/podcast\/steady-trade-the-profitable-side-of-trading\/id1275946076?mt=2\"><b>iTunes review<\/b><\/a><b>!<\/b><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/Y101-2WsQCo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The competition is getting fierce in The SteadyTrade Paper Trading Challenge! In case you\u2019re not up to date, here\u2019s the current state of affairs. Earlier in the month, during the \u201cHigh on Weed Stocks\u201d episode, hosts Tim Bohen and Stephen Johnson announced the first contestant to be eliminated. At that time, the rules of the [&hellip;]<\/p>\n","protected":false},"author":2283,"featured_media":1554,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trading a Small Account - SteadyTrade.com<\/title>\n<meta name=\"description\" content=\"Trading a small account. The competition is getting fierce in The SteadyTrade Paper Trading Challenge! In case you\u2019re not up to date, here\u2019s the current state of affairs. 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