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How I Made $500 With ONE System, ONE Setup & ONE Security

As mentioned in my previous blog post, How Much Money You Need To Make $100: 6 Trading Sessions For Inspiration, I will continue to push my trading to the next level, and I invite you to join me as I explore, develop, and share my vision of day trading.

I am scaling up my position sizing while narrowing my focus.

How I Made $500 With ONE System, ONE Setup & ONE Security

ONE SYSTEM

My system has been under development ever since I commenced full-time trading in October 2020. There have been several iterations and pivots, but the system utilized today briefly entails the following:

  1. Process for taking profits/losses.
  2. Process for recognizing trading setups/patterns.
  3. Process for determining system invalidation.
  4. Process for mitigating system interference.
  5. Process for system-wide failure.

It is not just price action but also psychology that plays a significant part in the system.

ONE SETUP

I have narrowed my focus on Reaction Zones (RZs), specifically RZ Break Re-tests. These include two forms: RZ Breakout Bounces and RZ Breakdown Rejects.

This setup allows me to take advantage of opportunities when the market goes up and down.

This setup is determined by price action at its core. As such, it requires becoming skilled at reading price action and adapting quickly.

ONE SECURITY 

I have traded various stocks, from small-cap stocks like penny stocks to large-cap stocks. On the options side, I have traded both illiquid and liquid options. For me, the securities that offered the most consistent opportunity day in and day out were SPY options.

MY TRADES

These are all the trades I took consecutively to achieve the goal of making $500. Making $500  in the stock market may seem insignificant, as others can make this amount quickly with a significant position size. 

However, this blog post is concerned with making $500 systematically over time, starting with the lowest starting capital and documenting its evolution.

The most challenging aspect of trading consistently is retaining profits and having a consistent system that does so over time.

Below, I have focused on adhering to ONE system, ONE setup, and ONE security. As with anything, adhering to something 100% is not feasible, but constantly recalibrating back to the basics or baseline is essential for minimizing variable drift. Also, allowing for some wiggle room allows for innovation too.

Here are my exact trades, as documented on my X profile. I share a recap of my trading session with the wins/losses, general thoughts, setups, and next steps. I also included a few trading session recordings that reveal my process in real time.

Options Trading SPY 8/13/24

Options Trading SPY 8/14/24

Options Trading SPY 8/15/24

Options Trading SPY 8/16/24

Options Trading SPY 8/19/24

Options Trading SPY 8/20/24

Options Trading SPY 8/21/24

Options Trading SPY 8/22/24

Options Trading SPY 8/23/24

Options Trading SPY 8/26/24

Options Trading SPY 8/27/24

Options Trading SPY 8/28/24

Options Trading SPY 8/29/24

Options Trading SPY 8/30/24

Options Trading SPY 8/30/24 + Trading Session Recording

Options Trading SPY 9/3/24

Options Trading SPY 9/4/24

Options Trading SPY 9/5/24

Options Trading SPY 9/5/24 + Trading Session Recording

Options Trading SPY 9/6/24

Options Trading SPY 9/6/24 + Trading Session Recording

Options Trading SPY 9/9/24

Options Trading SPY 9/9/24 + Trading Session Recording + Commentary

How I Made $500 With ONE System, ONE Setup & ONE Security
Net Profit from 8/13/24 to 9/9/24

It took me 19 trading days to earn $500, utilizing an average capital of $599 per trade. I used anywhere from 1 to 4 contracts for each trade. I am still adjusting and experimenting, but this highlights my growth process in this current phase.

NEXT STEPS

I hope you found this overview of my process helpful. Please check out my Options Trading Guide: The $500 Foundation, a comprehensive overview of how I made the $500 highlighted in this blog post. 

 In the 20-page guide, I cover the following essential topics:

  • Basics overview of options trading
  • Detailed discussion of my charting elements
  • My pre-market preparation process
  • A comprehensive breakdown of my setups/patterns, rules, and a detailed overview of my 5-factor system

I will continue to evolve and push my trading to the next level, and as always, I invite you to join me as I explore, develop, and share my vision of day trading.

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