Small Account? Do This!
Hello there, VWAPians!
You may have noticed that I’m always on air.
Whether it’s on Money Morning LIVE every day at 8:30 a.m. ET RIGHT HERE, or in my Warlock’s World, I’m NUTS about being live with my trading community.
CLICK HERE FOR TODAY’S WARLOCK’S WATCHLIST
And while I may get into some fun and wild antics, like Tarzan Tuesday, I’m always paying attention to my Warlock’s World members or our friends in the big room.
Yesterday, I broke some hearts talking about how difficult it is for our friends with smaller accounts to trade VWAP.
I’m not going to lie, It’s difficult.
I know that everyone wants to SLAP this market using VWAP.
So if you’re one of my friends with a trading account on the smaller side, there’s a couple of things that I recommend that you do.
The first thing would be to sit back and learn as much as you can.
Smaller accounts are in such a difficult situation because they’re limited – it’s hard to put on significant size in any trade, consecutive losses can have a larger impact, etc.
To make up for these limitations, many traders turn to options to be able to afford trades on stocks that their smaller accounts otherwise wouldn’t be able to get exposure to.
The tricky part is, options are much more risky to trade than stock.
They can have a wide bid/ask spread, making it easier for market makers to rob you when using market orders.
So if you’re just getting started and prefer to trade options, wouldn’t it be wise to take the most consistent, highly profitable trade that exists?
In Warlock’s World, that’s what I’m showing you.
Trades based on 1-minute VWAP on stocks that are “in play” tend to give multiple trading opportunities all day.
That’s the reason why I like trading $10 stocks like Tilray (TLRY) like I have the last few days – everybody can join in.
TLRY was back in play again on Monday
TLRY provided a great opportunity for everyone – my whales and my minnows and everyone in between – to join in on the fun.
You can hear more about it right here.
In Warlock’s World, I teach DISCIPLINE.
For my smaller account players, the window for error is that much smaller, increasing the importance of discipline.
So why not focus on the highest probability trade on Earth?
VWAP breaks on stocks that are in play or have reported earnings.
VWAP will save you. But the first thing you have to do is save yourself.
I can’t push the button for you. As 8-Baller would say: I’m not your broker.
But what I am is the Warlock. And what I can do is continue to teach my Warlock’s World fam how to trade VWAP like the BEST.
I hope to teach YOU there soon!
Kenny “The Warlock” Glick
March 29 2022
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