Our first trade in the SMALL DOLLAR ACCOUNT CHALLENGE was stopped out today. Our stop price was $1.54 and our long MRNS could just never continue momentum after we entered. Total loss was $37 bringing our account value from $200 down to $163. Ticket charges accounted for $13 of our $37 loss. Until we get this account built up ticket charges present an obstacle that will just have to be dealt with. After we double up a few times they will have a small affect as they were 6% of our account value on this trade.
At the end of the day today we put our cash back to work. We went long 260 shares of BPMX @ .59. Our initial stop loss is .49. We will keep you updated as this trade plays out.
There are 2 things I want to point out here as you get familiar with our trading style:
1- We will always obey our stop losses as discipline is the key to long term success. Having a defined risk lets you live to fight another day.
2- We will fire away as good trading opportunities setup.
Thank you for following along and it would be great if you left a comment below with your thoughts and opinions on our small dollar account challenge. Questions are always welcome also!