I Shouldn’t Be Alive – How To Stay Alive With Only $200 Left In Your Trading Account

I was wiped out from a stupid pink sheet penny stock scam and was down to my last $200.

I managed to come back from that dark time.

Now I'm going to teach you to do the same.

With only $200 in your account, commissions eat up a huge percentage. That is why you can't trade as frequently as you did when you had more money in your account.

You need to hit a 40% to 50% or greater payout winner because of commissions.

You do that by buying a high risk cheaper stock.

Stay away from the pink sheets or the OTCBB. I'm talking about stocks that are traded on a major exchange that trade anywhere from $1 to $12 and have good liquidity (trade at least 1 million shares a day).

You need to have a stock screener that lets you see what sectors are doing well. These are the sectors that institutional money is flowing into. These are the sectors you want to buy in.

Right now if you were to run that scan, you could target either energy, gold and silver mining stocks, or foreign stocks. This is where the smart money is flowing.

You want to buy high and sell higher. No buy low sell high and no contrarian "this things going to turn around so I'm buying into a downtrend" stock or sector.

That's it. Like many things in trading, it sounds simple but actually executing this strategy is very hard for most new traders.

What kills most traders is that they don't know how to analyze the markets. They have preconceived notions about what "should" be doing well. What they "think" the market is going to do. What stocks they made money in "in the past".

Reality check. You're an idiot. You lost all your money playing certain stocks in the past. Now in the present, you're going to go back and play those same stocks? WTF?

It sounds so stupid but that's what losers do. They have stocks they are more "comfortable" with, stocks they have an emotional attachment to, and when things get rough, like a child running back to mommy, they run back to what is familiar.

Another reality check. The stock market isn't your mama and it isn't your daddy. The stock market is comprised of a bunch of masked people you are trying to take money from who have no intention of giving it to you. In fact, their trying to take every last penny you have!

Case in point. A fellow trader lost over $700 in the market last week. I told him he needed to be very careful with his next pick. He told me no worries. He was going back to his money stock Novell (NOVL). He said this stock has never failed him yet. It sounded more like a baby running back to his security blanket to me. I said what about the energy sector or the gold and silver mining sector? He said I don't know those sectors but I know tech. Tech is going to lead us out of this bear market and so tech is the place to be. I asked him how long he was planning on holding Novell (NOVL), he said as long as it takes.

Notice how he justified not analyzing the markets and buying what the smart money is currently buying: "I don't know gold and silver but I know tech". WTF?! Then get off your lazy arse and get "to know" gold and silver because that's where the money is currently being made! Geezzz, some traders are so clueless.

Notice that he also used the logic that tech is going to be the sector that leads us out of this bear market. That is true. But WHEN that's going to happen no one really knows. What we do know, from listening to what the market is telling us, is that tech is not leading the market yet. Gold and silver mining companies are. Foreign stocks are. Energy companies are. Tech is not.

It wasn't a surprise that Novell (NOVL) under performed gold and silver mining companies last week.

These are the kind of mistakes you can't afford to make any longer when you are down to your last $200.

The market doesn't care what "you think". The market doesn't care whether "it makes sense" to you or not. The market doesn't care if you went to college or where you work. The loser is too busy within his own narcissistic mind trying to "make sense" of things rather than listening to what the market is telling him and reacting accordingly.

Narcissism is the biggest obstacle all new traders must overcome if they are to day trade for a living.

I hope you enjoyed this article and feel free to leave any comments you have below. Thank you and happy improved trading.

Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)

I was wiped out from a stupid pink sheet penny stock scam and was down to my last $200. I managed to come back from that dark time. Now I'm going to teach you to do the same. With only $200 in your account, commissions eat up a huge percentage. That is why you can't trade as frequently as you did when you had more money in your account. You need to hit a 40% to 50% or greater payout winner because of commissions. You do that by buying a high risk cheaper stock. Stay away from the pink sheets or the OTCBB. I'm talking about stocks that are traded on a major exchange that trade anywhere from $1 to $12 and have good liquidity (trade at least 1 million shares a day). You need to have a stock screener that lets you see what sectors are doing well. These are the sectors that institutional money is flowing into. These are the sectors you want to buy in. Right now if you were to run that scan, you could target either energy, gold and silver mining stocks, or foreign stocks. This is where the smart money is flowing. You want to buy high and sell higher. No buy low sell high and no contrarian "this things going to turn around so I'm buying into a downtrend" stock or sector. That's it. Like many things in trading, it sounds simple but actually executing this strategy is very hard for most new traders. What kills most traders is that they don't know how to analyze the markets. They have preconceived notions about what "should" be doing well. What they "think" the market is going to do. What stocks they made money in "in the past". Reality check. You're an idiot. You lost all your money playing certain stocks in the past. Now in the present, you're going to go back and play those same stocks? WTF? It sounds so stupid but that's what losers do. They have stocks they are more "comfortable" with, stocks they have an emotional attachment to, and when things get rough, like a child running back to mommy, they run back to what is familiar. Another reality check. The stock market isn't your mama and it isn't your daddy. The stock market is comprised of a bunch of masked people you are trying to take money from who have no intention of giving it to you. In fact, their trying to take every last penny you have! Case in point. A fellow trader lost over $700 in the market last week. I told him he needed to be very careful with his next pick. He told me no worries. He was going back to his money stock Novell (NOVL). He said this stock has never failed him yet. It sounded more like a baby running back to his security blanket to me. I said what about the energy sector or the gold and silver mining sector? He said I don't know those sectors but I know tech. Tech is going to lead us out of this bear market and so tech is the place to be. I asked him how long he was planning on holding Novell (NOVL), he said as long as it takes. Notice how he justified not analyzing the markets and buying what the smart money is currently buying: "I don't know gold and silver but I know tech". WTF?! Then get off your lazy arse and get "to know" gold and silver because that's where the money is currently being made! Geezzz, some traders are so clueless.

Notice that he also used the logic that tech is going to be the sector that leads us out of this bear market. That is true. But WHEN that's going to happen no one really knows. What we do know, from listening to what the market is telling us, is that tech is not leading the market yet. Gold and silver mining companies are. Foreign stocks are. Energy companies are. Tech is not. It wasn't a surprise that Novell (NOVL) under performed gold and silver mining companies last week. These are the kind of mistakes you can't afford to make any longer when you are down to your last $200. The market doesn't care what "you think". The market doesn't care whether "it makes sense" to you or not. The market doesn't care if you went to college or where you work. The loser is too busy within his own narcissistic mind trying to "make sense" of things rather than listening to what the market is telling him and reacting accordingly. Narcissism is the biggest obstacle all new traders must overcome if they are to day trade for a living.

I hope you enjoyed this article and feel free to leave any comments you have below. Thank you and happy improved trading. Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)