My trading plan for 2020 is gonna be a little different. I’ll get into that in a moment.
First…
Happy New Year!
And thank you. I’m grateful for everybody who reads this blog, for my students, employees, and family. Each of you has helped us to help more people. Through Karmagawa … and also through teaching people about the stock market and my niche strategy.
Now, let’s make 2020 the best year ever!
Table of Contents
My Trading Plan for 2020
In the past, I’ve started each new year with a small account. I re-start my trading accounts with just $12K every January. Read this for more about how I put myself in a figurative prison to start every year.
Why $12K? Because that’s how much I had in my account when I started trading in high school. But it’s also WAY under the PDT rule, which limits anyone with under $25,000 in their trading account from taking more than three trades per week.
The reason I go back to a small account every January is because most students only have small accounts. It forces me to be a better teacher — to focus on the process. And teaching the process is important.
One of the biggest lessons I can give you is this…
To Do Big Things, You Have to Start Small
When you want to do big things, you have to start small. Whether it’s in the stock market, giving back through charity, or any other part of your life … start small. Then scale up. Find what works.
Let me give you an example…
With Karmagawa, we made two documentaries in the last two years. That works. And now I have a lot of trusted videographers who can help me. And I’m grateful for that. We started small. Now, as it continues to grow, other people can take on more. And I’m grateful for that.
Start Small and Focus on the Process
If you’re just starting as a trader, it’s better to start small. You shouldn’t expect profits right away. Instead, you should focus on learning. You should focus on paper trading using StocksToTrade. Focus on the process.
All my top students did this. Tim Grittani, Mark Croock, Michael Goode — they all worked hard on the process first. The up-and-comers like Huddie, Jackaroo, Kyle, and Dominic … they’re the same. (And there are many others who prefer their privacy.)
So, my trading with a small account helps those of you with small accounts learn the process. And I’ll keep doing it.
But there’s also…
The Next Step
In an ideal world, you learn how to grow a small account. But what happens next?
As you grow your small account, you gain experience. You gain knowledge. You get comfortable risking more on a trade. If you focus on the process and follow the rules, eventually you start making bigger profits.
And this is where trading can get really fun.
When there’s an amazing play, with big volume and the right catalyst (and you already have a solid process) it’s possible to make pretty incredible money. It’s exciting.
Some Are Already There
It’s pretty cool that I now have students at so many different levels of experience. Yes, there are a lot of beginners. But I also have several millionaire students. Others trade with $500K, $200K, or $100K accounts.
For those students, watching me trade the last few years hasn’t been as useful as it is to those with small accounts. And I’ve thought about this a lot. More on that in a moment.
First…
… I have a confession to make.
Trading With a Small Account Is Boring
I admit it. It’s boring. You have to remember I’ve been trading now for over 20 years. So while trading with a small account helps those of you with small accounts learn the process…
… I haven’t had my heart race much lately. It’s difficult to get really excited about a trade.
So I’m making a shift in 2020. To be better. On all levels.
Optimizing My Process for 2020
Every year I try to optimize my process. I always try to improve as a teacher. I’m refining. Even when using social media to spread awareness of charity I’m working to optimize.
So here’s what I’m gonna do…
Because I’m trying to optimize my process…
… and because I have students trading with small accounts and students trading with big accounts…
… and because I want to give more to charity…
I’m Trading With Two Accounts in 2020
The last year I traded with a big account was 2014. That year I made over $840K in profits — trading big. But I’ve been teaching for over 10 years now so a lot of people have asked for this.
This video explains a little more about my decision to trade with two accounts in 2020:
Before you read the rest of the post … I’ve changed my mind. I’m going to start the big account with $500K instead of $1 million. Keep reading to see why — it’s a good lesson.
Letting Myself Out of Prison — At Least Halfway
So unlike the last few years where I basically checked myself into prison in order to trade with a small account, this year I get to do both. Most of the time I’ll trade with a small account. But every now and then…
… when there’s an amazing play that scores high on my Trader Checklist guide…
… and I want to trade big…
… I’m gonna go bigger.
Trading Plan 2020: Bring Back the Fun
The fun of trading is when you make a lot of money. When you can make $30K or $50K in a day — that’s exciting. When I trade with a small account, that’s just not possible. It’s tough to make more than $1K or $2K a day. (That’s not bad money. It keeps the real job away, right?)
So my trading plan for 2020 … let’s just say it’s gonna be interesting. Especially trading from some of the countries where I barely have internet. It’ll be exciting to risk a bigger position size and have the internet go off. Here’s how it’s gonna work…
How Trading Two Accounts Will Work
Let’s start with the numbers…
The small account will start the year with $12K — just like in past years. That account will be under the PDT rule. The big account will start with $500K, and I’ll be free to go big when the right play comes along.
At first, my trading plan was to go with a $1 million account to start the year — as I said in the video above. Thing is … I’m rusty trading with a big account. I might take it up to $1 million at some point. But first I’m gonna find my footing with $500K because trading big is very different from trading small. Read this for more about trading a small vs. a big account.
Some Thoughts About the $500K Account
I’m not saying I’m gonna go all-in with the $500K account. It’s not what I teach. And, frankly, it would be crazy considering how rusty I am trading a big account. But I might put $50K into a trade. Or even as much as $100K. And with those kinds of trades, I can make a lot more — $10K, $15K, maybe even $20K in a day.
But I’m gonna be very meticulous. Those trades won’t come around every day — or even every week. But every now and then a beautiful, ideal supernova will come along and I will go big.
With Bigger Positions Come Bigger Risks
I’ll still take losses. Just because I decide to go big doesn’t mean it’s a gimme. There are no guarantees that I’ll win. So be prepared. Along with bigger wins, you’ll see bigger losses. Of course, I’ll still try to cut losses quickly, but with bigger positions come bigger risks.
We’ll Track Both Accounts
We’ll track both accounts, and just as in years past, all the money I make from trading will go to charity. (This year I made roughly $125,000 — all going to charity.) Big account, small account … I’ll just add it up at the end of the year. And that way, 2020 will be a little different.
How My 2020 Trading Plan Will Affect Alerts
I’ve always said it’s a bad idea to use my alerts to get into a trade. That goes for anyone’s alerts, not just mine. I alert so you understand my thought process. Trading with two accounts won’t be any different.
When I send out an alert I’ll say, “This is the big account” or “this is the small account.”
About Video Lessons
I’ll make video lessons for the big account and the small account. And they’ll go right into the video lesson library. (That’s now over 6,000 video lessons and counting.) So no matter what level you’re at, as long as you’re a Pennystocking Silver or Trading Challenge member you’ll be able to watch the lessons.
Why I’ll Trade With Two Accounts in 2020
It comes down to serving everybody — all my students — in the best way possible. I’ll trade the small account so you can learn the process … and then the big account for people with big accounts. But also for my own personal entertainment.
Plus, there will be more to give to charity at the end of the year…
It’s an Honor to Give Back
I’m really excited to trade with a big account again. One of the main reasons is so I can give back more with my charity, Karmagawa. We’ve now donated over $4 million in the last three years.
As always, for those of you who support us — thank you. If you’re interested in getting some of the new Karmagawa merch at a 50% savings…
Go visit the Karmagawa store and use the code: happyholidays (all one word, all lowercase).
Welcome to 2020!
Again, Happy New Year! I hope you’re excited to make 2020 an amazing year — I am. Hopefully, you had a good New Year’s Eve and you’re ready to get back to work.
Enjoy today … but also study. When the markets re-open tomorrow morning … it’s gonna be fun!
What do you think of my 2020 trading plan? Comment below, I love to hear from you!
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