When I first started trading, I only had $15K to trade with… and fast forward to today, I’ve generated more than $8,000,000 in career trading profits — and more than $1,000,000 in 2020 alone.

The thing is, it wasn’t just a straight shot to profitability for me. In fact, I made a lot of common mistakes… and that led me to lose approximately half of my $15K account.

It wasn’t until I went back to figure out what I was doing right and wrong — that I discovered what was eating at my account. It’s one common pitfall I believe traders should avoid at all costs… and it’s known as:

 

Style Drifting

 

What’s style drifting?

I believe it’s the number one factor that can ruin accounts. If you diverge from your trading objective or strategies, then you would be considered a “style drifter”.

Think about it like this, mixed martial arts fighters have a specific style… and if they deviate from that, they may get beaten. The same goes for trading, in my opinion. That’s one common pitfall I fell into when I first started trading.

I basically traded whatever moved. However, I knew in order to become a better trader, I needed to set some guidelines for myself and find an edge.

That’s when I developed strategies that focused on catalysts. In other words, I looked for reasons why a stock would move. Thereafter, I created a concise trading plan and executed… and that’s when I started to become profitable.

To this day, I still follow the same approach.

The thing is, I know the struggles of being a trader with a small account… and the one thing I wish I knew when I first started was to take things slow and just focus on one trade idea a week.

Let me show you how it works.

 

Case Study: My One Trade A Week Strategy

 

The strategy I’m using is called Fast 5 Trades.

Let me show you how it works.

It all starts with an idea. Thereafter, I look for key areas where I believe it’s advantageous to buy and take profits… I also know where I want to stop out, in case things go against me. My goal is to generate double-digit percentage returns (or more) in 5 days or less.

Here’s how one of those trade ideas look…

 

 

As you can see above, I had a thesis… and the catalyst here was the company was working on a Covid-19 vaccine at the time. On the chart, it looked strong to me. Basically, the bull flag pattern was forming and I was looking for a move higher.

 

Chart Courtest of StockCharts

 

Shortly after I made my moves in INO, here’s what happened with the stock…

 

Chart Courtest of StockCharts

 

I was able to lock in a quick 6.85% winner and played it safe.

 

 

When traders focus on just one trade idea (or a handful) with an edge, I believe it can help to avoid style drifting. 

If you want to find out how Fast 5 Trades works and take it for a spin, then click here and check out this exclusive offer.

 

Author: Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.

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