Small accounts (PDT) and new traders thread: with the help of @Tac__6 (Love this dude!)

I wanted to do a write up to try to help some of the newer traders with smaller accounts that either struggle or just want to learn discipline in the market. So, here you go!

Those sweet sweet Twitter calls:
If you see a call made on a ticker, take the time to look at the overall picture. If the stock has had a major run and your entry point doesn't make sense, put it on a watch list or paper trade it to see how you would have done.

This helps you not blow up your account by jumping in on every single thing you see mentioned, but it gives you the chance to simulate a trade and will help you build confidence once you decide to use YOUR money!

When a call is made its not always an indication that a new position was taken by the call maker, it could be just a simple heads up for the ones that have an established postion in that stock...the chart tells all!

" You wouldn't buy a car without thoroughly inspecting it and obtaining as much information as possible before purchasing, so why buy into a stock that you have no history on just because someone said to." -Me

Learn your positions:
So you've seen a call made, took a confident entry, and now your locked in! Watch that trade, watch price action, watch volume, and learn the chart. You should know where you bought in, the lows and highs of the stock for the day/week/month/etc, support..

and resistance, gaps to fill, and have a plan of where you want to exit. That exit plan could be a dollar amount or percentage gained. For goodness sake... not every call is going to run 100% everytime!

But taking 20% gains or a $100 win is so much better than holding that ticker because you think it's 'GoInG tO ThE MoOn', and then realize the run is over and you're still holding that trade and now stuck in with a 10% loss. Don't be greedy, the market has no feelings and will..

gladly take your money.

No poo on the floor:
Keep your account clean and protect it!
Small accounts need to be managed like a business. You can't take on more clients than your business can handle.

Why take postions in 20 different tickers, only because 20 different people on Twitter made 20 different calls. You need to hold a few (2-4) postions and focus on those trades. The positions you carry need to have a set percentage of your account in them.

And that doesn't mean 100% of your account 100% of the time in one ticker. How about 15- 20% of your account in each ticker you purchase. Ex: You own 3 postions and dedicate 20% to each = 60% of your account in use.

That leaves you 40% of your account (settled funds) to be used for a possible day trade, or if you thought you made good entry on a call and didn't, you now have funds to average down in positions and make that bag a little less heavy.

As your account grows and you build that confidence in you're choices, those positions may get larger and you may have more than just a hand full.

Watchlists:
We talked about simulated (paper) trading based off of calls...

Now set a watch list for those calls. Make a watchlists named Twitter plays, previous runners... Or even my calls (stocks you like, that you pick). Set price alerts for them. Ex: abcd is trading at 0.86 after a run up from hype or rumor.

You're wanting to take postion at 0.56 (support level). Set an alert to notify you if abcd goes below 0.60. Now you've been alerted that Abcd might be a play you want to jump in (of course verify the chart, check for negative filings, etc).

This let's you keep an eye on tickers you've seen people mention or post DD or even tickers you've personally seen have a huge run that you missed. A lot of times if the hype, rumor, catalysis is still circulating...

Another run up is possible. Now that you've studied these tickers on your watch list and you've set price alerts for entry.. Now you're ahead of the crowd, not chasing the ride!

All in all:
Play smart! This is your hard earned money that your using in the market.

Ready carefully: Never put in more than you're OK with losing. The market can be brutal and it has no regards for feelings or emotions. If you wake up, look at the market and say 'I just don't like the way it looks today'... Then don't play!

There is nothing wrong with just watching..or once again paper trading that day. Ultimately, to get good at stocks you have to be immersed in the market. Watch it daily, read the news and see how it affects the market, and study charts! Lastly, you will not get rich overnight.

I know that is a common thought, especially when you see people posting $10,000+ gains a day. Those guys have paid their market dues, they have been beat down before, and they have had red days or blown accounts. But.... they got back up and tried again. They didn't accept the L

and quit. The learned to be smart and protect their accounts.

I hope this helps someone. And as always, best of luck to everyone, and God bless!