Trading on Robinhood, Our goal.

It's time to start our first adventure. It's quite humble, no pun intended, but it will reflect the same amount of success as as any other stock trading account. At the beginning of this week I started a Robinhood Account, with a small amount of $100. Throughout the next couple months, together we are going to grow the account through small consistent profits.

It's important to remember the PDT rule. In the US of A, any account under $25,000 may not place more than 3 day trades in a 5 trading day period. A day trade is the purchase and sell of the same stock, in the same day. This week I made 3 day trades, therefore I can not complete another day trade until 5 trading days after my first day trade. I can still buy today, and sell tomorrow with no issue of course. This rule will always apply to my account unless I grow it up to $25,000.

Our three goals for this process are very important, and are nothing but pure fundamentals.

1 - Manage Fear, including the fear of missing out and the fear of losing money.

2 - Manage Risk. No trade will risk more than 10% of our account. Because this is a smaller account we are using a very large risk tolerance.

3 - Take good, planned trades only. The margin to profit should heavily outweigh the margin to lose.

As stated above, I've already placed trades this week, and received a 7% increase on the account using the above fundamentals. Click here to go to this weeks recap, and see how we made Humble Money.