It started as a fun challenge, just to prove to the naysayers that it could be done. And that we could do it without much difficulty. The first time we did it was April to July of last year, when we took $2,000 and turned it into $10,000. We didn’t even break a sweat!
Through popular demand, we did it again. Starting with $2,000 on Sept. 25, we churned it up to $10,000 with the goal of hitting that target by Christmas Day. It was all witnessed before a huge live audience in our daily Trading Room, many of whom took part in the trades with us.
Allow me to present some details, starting with the fact that the earlier you develop a profit cushion, the easier it is to absorb any losses. Mentally, this is paramount, especially as you get closer to the final few days.
For the record, the stats included the fact that we had six days in which we did not place any trades. Whether I was away, not feeling well or simply could not fully focus, it was better “to stay out of a trade wishing I was in, than to be in a trade wishing I wasn’t.”
Then, we also had some losers. The first couple minor setbacks were due to the fact that the original reasons for being in the position had vanished. Sometimes, it’s best to get back into the position of cash. You do not need to always be in a trade. It was no big deal. We were well ahead in our plan.
The next two losers came on either side of Thanksgiving, attributable to trying to push the envelope to get ahead of the game before the holiday weekend. Due to fear, we dumped some losers so as to not tie up precious capital.
A third loser occurred on Dec. 14, resulting from a psychological term called the goal gradient effect. In short, when the end is nigh, people are motivated to go faster. In the aviation world, we call it get-there itis. This is depicted by the determination of pilots to reach a destination even when the conditions for flying are very dangerous. It is also the same phenomenon that compels bone-wary marathoners to sprint the home stretch – this is why you see so many ambulances posted near the end of long-distance races.
But we sharpened our pencils and pulled out all stops in the final phase, ramping up our profits to hit our end goal at $10,269 on Dec. 21. That final segment also brought us back to the basics, keeping our wits while seizing the opportunities as they presented themselves. As long as we had capital, we would entertain a trade, but only if all the boxes were checked.
The rules were simple: trading only what we had available in our cash account, following our indicators and taking only reasonable, attainable daily gains. One key tool that we used was the spreadsheet, where we monitored our progress and were held accountable.
The fascinating thing I noted was how much interest this project had garnered, mostly from those sitting on the sidelines.
And if you are wondering if we are going to do it again, well you’re in luck!
The next challenge is set to take place on Monday, Jan. 29 in our Trading Room. That is where we show each of our trades in a real market environment in real time. All the details are there; no stone will be left unturned in our quest to quintuple our capital… turning $2,000 into $10,000 in three months!
Our Trading Room is much more than simply displaying our trades. We actually teach what we trade and trade what we teach. Veteran trader Ahren Stephens demonstrates his deep dive analysis by accurately forecasting where he sees the SPDR S&P 500 ETF Trust going. He applies his many years’ experience by bringing to life his exceptional clairvoyance of the market. I examine both the fundamentals and technicals using my evidence-based techniques.
Together, Ahren and I make our recommendations, proving that “when our indicators unite, our trades ignite” is not just a saying; it is truly an adage DayTradeSPYers live by.
If you are ready for your final phase of learning and earning, click here for details and join our ever-popular Trading Room, daily, 9:20 to 10:30 a.m. ET. That is where the third Turn $2K Into $10 Challenge will take place.
If you are still on the fence about joining, please click here to join us on our free Sunday Night Intro to Trading live session at 8 p.m., ET. We will discuss the next challenge in great length and give you all the information you need to join the challenge.