[RagingBull Elite]( Evening, co-founder of RagingBull Jason Bond here. Trading penny stocks with a small account is very difficult. PDT rule, FOMO and drinking the Kool-Aid. I call it the penny stock paradox. Iâm well known for teaching people how to trade penny stocks. Itâs my options strategy, the $2,000 Small Account Journey thatâs become my most popular service over the last year. Why? Its rising popularity stems from addressing core issues when growing a small account. Penny stock problem #1 The dreaded pattern day trade rule. If youâve ever traded with less than $25,000 you know what I mean. The problem! Itâs Friday and youâre riding a big win on a penny stock and want to sell before happy hour. What a wonderful way to end a week that saw you crush 3 day trades in your small account. Enter the dreaded pattern day trade rule. If you sell that winner, your account, suspended from opening any news trades for 90 days. That's one quarter of the year! So you hold until the following week. At which point the gains have not only evaporated, but the loss wipes out the prior week's gains. In the $2,000 Small Account Journey Theta or âtimeâ decay works in our favor. Rewarding overnight holds or what I call swing trades. Penny stock problem #2 Fear of missing out on explosive penny stocks is a major problem for small account growth. My edge in the $2,000 Small Account Journey is better than penny stocks for trying to grow a small account. Ever chased a penny stock breakout? You know, bought the top, watched it dump, and take a huge loss? Yup, me too. Fear of missing out (FOMO) preys on our emotions and works against our goals. Itâs natural to get caught up in the excitement and penny stocks are notorious for doing this to traders. Itâs not your fault, but if you keep making the same mistakes, can you expect to get an edge in the market? Let alone grow a small account? Penny stock problem #3 I love penny stocks. But they are dangerous for the trader desperate to grow a small account. Because monster breakouts lead to FOMO. Which leads to chasing. Which leads to catching the top. Which leads to drinking the âKool-Aidâ. "Drinking the Kool-Aid" refers to a trader who thinks a doomed stock has high rewards. Which leads to bag holding. A bag holder is a trader who holds onto poorly-performing stocks, hoping they will rebound. Remedying losses, versus focusing on realizing gains, is the root issue here. Bag holders tend to lose money by being the last owners of a failing trade. And they miss out on new opportunities watching their account bleed out day after day. Now I love penny stocks. It's one of my biggest services. They are great for the retail day and swing trader i.e. big fish in a small pond. But NOT for trying to grow an account under $25,000, let alone $2,000. Thereâs a better way. And itâs what I teach in the $2,000 Small Account Journey. Here are step by step instructions to getting started. - Get a $2,000 margin account We donât ever trade on leverage. The broker requires this type of account to trade spreads. - Create a 3-7 stock watchlist with earnings winners on the best companies in the world Take META for example. Anytime the stock dips over the next quarter you can bet itâll get bought up by algorithms. I look to sell puts into dips below the 10-day EMA and Keltner Channel mean while referencing the bullish chart pattern. If the market enters a downtrend like it did in April, sell calls on weak stocks like TSLA. Think about it for a second. A short put vertical spread is neutral to bullish. An earnings winner like META with strong guidance is NOT likely to fall apart. Know these 4 bullish chart patterns. Enter at or below the 10-day EMA (blue line). Rinse and repeat. - Learn what a short put vertical spread is a.k.a. Bull Put I assure you this is an easy order to make and once you learn it, you canât unlearn it. - Understand probability of buying versus selling options A bull put spread means Iâm SELLING a put and buying a put at the same time. So do option SELLERS have a trading edge? A CME study covering 3-years showed an average of 76.5% of all options held expired worthless. Three key patterns emerge from this study: - On average, three out of every four options held to expiry end up worthless; - The share of puts and calls that expired worthless was influenced by the primary trend; and - Option SELLERS still come out ahead even when the seller is going against the trend. In fact, of put options alone, 82.6% expired worthless. The last point on put options illustrates why this strategy Iâm teaching you to grow a $2,000 balance is so effective. All we do is SELL put spreads and ONLY on stocks that smashed the predicted move. Starting to add up? The study suggests an 82.6% chance of winning these trades. Coupled with earnings winners (bullish trend) and itâs starting to click, right?! - Understand the time decay of an option Options are time-limited, expiring trades. Near expiry, the trade âspoilsâ with less chance for buyers to make a profit. In the final 30 days, the rate of decay picks up speed, with the steepest decay occurring in the final 5-7 days. This âtime decayâ is why 76.5% of all options trades expire worthless and of put options alone, 82.6%. - Know the economic calendar This helps us know when big moves in the market are likely to occur. For example, think about how interest rate decisions move the market.  Summary. I taught you how I make my trade plans and execute my trades. The beauty is, I put all that information into a daily watchlist for you. Then, before I enter and exit trades, I send you what looks like a text right to your smartphone. Like these wins on NFLX and NVDA today I alerted to subscribers' phones. Results not typical. Trading is hard. Nothing is guaranteed. This is my favorite strategy for trying to grow a $2,000 balance, or any balance under $25,000. And Iâm not alone. As a personal goal Iâd like to get one of these balances to $100,000. I love trading penny stocks. But in my professional opinion the only way to do this is with options. Notable performances ($2,000 - peak) $2,000 into $31,856 April 24, 2023 - August 4, 2024 (102 days) $2,000 into $43,768 November 13, 2023 - April 4, 2024 (143 days) I want to point out that those arenât typical and that some of my balances will go down. And that I cannot speak for my membersâ performance, as results may not be typical and trading is HARD. And I cannot guarantee you will make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade. Are you with me? 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