$5000 Account. PENNYSTOCKS under $5 Trading Challenge. Can we DOUBLE this Account?
Channel: SKY MAN CAN DO
Date: 2021-07-17

$5000 TRADING ACCOUNT (Only buying stocks under $5) CAN I DOUBLE THE ACCOUNT? HOW LONG WOULD IT TAKE??

$5000 ACCOUNT STOCK TRADING CHALLENGE 

I have deposited $5000 into a stock trading account where we would enter the financial markets and only purchase stocks under $5 (pennystocks by some definitions but not junk stocks) to see if we could grow the account and how long it would take to double the money. We are not doing the Guru Stupidness,⁸ but on the other end the S&P500 is out of the picture, we're not using Warren Buffet's strategy but attempting to manage on the basis of buy low sell high. This isn't Berkshire Hathaway we don't have the money or time to just buy and hold or hodl. We are generally using small market cap stocks. Our aim is to trade in and out, to show if you can LIVE on the profits if you did the  same  on a bigger scale. To see if you had $50,000. or $100,000. or more; If you could quit your day job and make a living trading sensibly. 
I would update all positions via YouTube video once or twice a week and Report the ACCOUNT'S BALANCE 

THE RULES
1.)This is not a Day Trading Challenge. 

2.)We're not trying to see if we could turn $5000 into a million dollars in 6 months.
 
3.)We're using FINVIZ to scan every single stock under $5.

4.)Browsing through just front page daily chart on FINVIZ's we'll use a very quick and basic VISUAL TECHNICAL ANALYSIS to either discard or choose stocks for  further assessment. 

5.)Stocks that have been on a continuous downtrend or have made a massive downward move within the last year without recovering ground would be eliminated.

6.)Our preference would be stocks that have been trading within a range between an almost fixed support and resistance. THIS WOULD BE ACCEPTABLE EVEN IF IT'S EITHER IN A SLIGHTLY UPWARD OR DOWNWARD TREND OVERALL.
We would also look at stocks that have had a number of consecutive RED DAYS; ESPECIALLY THOSE THAT ARE NOW POSTING THEIR FIRST GREEN DAY OR DAYS. PROVIDING THAT THE STOCK HAS A HISTORY OF HARD PULLBACKS AND EXTREME PEAKS (A formation that in pretty common in Pharma/Bio and Health Care type of Stocks.

7.)After our initial ANALYSIS we would visit each stock's page on FINVIZ for basic fundamentals and to disqualify any Stock that is in TROUBLE,  approaching bankruptcy or facing legal challenges. 

8.)After reviewing the above criteria on FINVIZ I've narrowed the field down to 150 stocks that I would save on my STOCKTWITS WATCHLIST on my phone. These 150 stocks would become  our stock market which we would review on either a quarterly or a semi-annual basis. ALL OTHER STOCK MOVEMENTS WOULD BE CONSIDERED TO BE NOISE AND WOULD BE IGNORED.

9.)We would trade in and out of any of these stocks providing that funds are available from either positions we have sold for a profit.

10.)We will NOT SELL OUT OF A POSITIONPREMATURELY TO BUY INTO ANOTHER THAT APPEARS TO BE HOT.

11.)Our initial purchase of any stock would be limited to 200 shares until the account grows. 

12.)EXCEPT for stocks that are trading for under $1 which we would allow up to an initial purchase of 500 or for shares which are trading under $0.50 which we would allow an initial purchase of up to 1000 however we would only buy anything under $1. if we think there is a definite opportunity present but in general we would stay away from shares that are just hoovering above $1 or less. Maybe in future we could do a $1000. ACCOUNT PENNYSTOCK CHALLENGE; only buying stocks for  under 

13.)Wherever possible the target is to purchase shares that has already bounced off of resistance and the price has either approached,is approaching or has just crossed the 200 SMA in on upward direction. 

14.)Even though the account offers 6 to 1 leverage during active trading  hours and 1 to 1 leverage overnight; we would generally only trade with 70% of the CASH value of the account leaving 30% available to strengthen positions where we think its a benefit to lower our average. 

15.)Our goal is to set a minimum sell target at the time of purchase based on what we see as a realistic single cycle between the support and the resistance. Once this target is reached: we would either place a stop somewhere  under it but in profit and manually follow it up moving the stop upwards in increments or we would sell off 60 to 80% at or above the targeted sell, hold the remaining balance and follow the remaining holding with the said incremental upward stop-loss. 

16.)NO SHORT POSITIONS WOULD BE TAKEN. This challenge is about buying and selling positions for profit; maybe we can do a $5000. ACCOUNT SHORTING CHALLENGE in the future.