Simple $100 SWING TRADING Strategy | Beginner Guide 2025

Summary

In this video, Carter shares practical strategies for growing a small trading account, starting with as little as $100. He discusses the challenges of trading, the importance of setting achievable goals, and how compounding profits can lead to consistent growth. Carter emphasizes the significance of understanding market trends, utilizing trading indicators, and finding the right tools, like fractional share brokers and charting software. He also demonstrates successful trades using a breakout strategy, highlighting how patience and consistency can yield long-term success for traders at all levels.

Takeaways

• 😀 Trading is difficult and requires dedication, similar to professions like doctors or lawyers, where success comes with time and learning.
• 😀 The goal of trading is to grow your account steadily—expecting to double your money quickly is unrealistic, especially with a small initial investment.
• 😀 The top 5% of traders make 3-5% profits monthly. For example, with $100, a 3% gain equals only $3, highlighting the slow but achievable nature of growth.
• 😀 Avoid trying to turn small amounts of money into large sums quickly. A $100 account is not going to become $100,000 overnight, and leveraging too much increases risk.
• 😀 Trading profits compound over time. After each gain, you can reinvest profits into subsequent trades to accelerate growth with compounding returns.
• 😀 Fractional share brokers, like Mumu, are essential for beginners. They allow you to trade with small amounts, even starting from $5, while offering key tools like charting, scanning, and AI to aid in decision-making.
• 😀 Look for stocks with an upward trend, as they provide better opportunities for growth. Buying on a stock's support level, during a pullback, can increase success rates.
• 😀 Use multiple trading indicators, such as trend lines and moving averages, to analyze stocks. These tools help identify support levels and potential buy signals, improving your chances of profitable trades.
• 😀 A breakout strategy is a valuable approach. By setting alerts for resistance levels and entering trades when these levels break, you increase the likelihood of successful moves.
• 😀 Consistency is key when trading. Focus on strategies that work over time, like identifying trends and using clear entry points, rather than looking for quick, high-risk wins.

Q & A

What is the main topic of the video?

The video discusses how to grow a $100 trading account, providing strategies, tips, and insights for both beginners and experienced traders aiming to improve their consistency and profitability.

Why does the speaker emphasize that trading is hard?

The speaker highlights that while trading has a low barrier to entry, the difficulty arises from the high failure rate among traders. Many people underestimate the challenges, leading to unrealistic expectations of getting rich quickly.

What does the speaker mean by 'treating trading like a doctor or lawyer'?

The speaker suggests that successful traders should approach their craft with the same level of commitment, discipline, and education that professionals like doctors or lawyers do. Trading requires a long-term mindset and continuous learning to become proficient.

How much do the best traders make on average per month?

According to the speaker, the top 5% of traders make about 3-5% profits per month, which translates to modest, consistent growth rather than quick wealth.

What is the significance of compounding in trading?

Compounding is crucial because profits made today are added to the account balance, allowing for larger profits in subsequent trades. For example, a 3% gain on $100 turns into $3, and the next 3% gain would be calculated on $103, compounding the account growth.

What are fractional shares, and why are they important?

Fractional shares allow traders to invest in stocks with as little as $5, making it possible to trade even with a small account. The speaker recommends using brokers like Mumu, which offer fractional shares and advanced trading tools to help traders succeed.

What is the breakout strategy mentioned in the video?

The breakout strategy involves identifying resistance levels on a stock's chart and setting an alert when the stock breaks above that level. This signals a potential upward trend, and traders can enter the trade with a stop loss below the breakout point.

How does the speaker use support and resistance levels in trading?

The speaker uses support and resistance levels to identify price points where a stock tends to either bounce upward (support) or face selling pressure (resistance). These levels help determine entry and exit points for trades, as well as stop-loss placements.

What role do trading indicators like moving averages and RSI play?

Moving averages help identify trends and act as support/resistance levels, while the Relative Strength Index (RSI) shows whether a stock is overbought or oversold. Both indicators are used in combination to confirm entry points and anticipate potential price movements.

How does the speaker recommend scaling up a small trading account?

The speaker advises setting realistic goals, such as growing a $100 account to $200 over the course of a year. Once a trader has gained experience and confidence, they can begin scaling up by increasing their account size and setting more ambitious targets.