Day 4 of Trading at Webull with $2,000 (Commission FREE vs Direct Access Brokers)

What's up everyone? Welcome to day four of my brand new small account challenge of trading in a $2,000 cash account using Weeble as my broker. Today is very

interesting because today I had what would be more or less considered a break even trade, but it's a small winner.

Now, what I think is most fascinating here is I tried to take the same trade at a direct access broker and it was a loser. And this right here is

loser. And this right here is highlighting the advantage of commissionfree routing. So with

commissionfree routing. So with commission free brokers, Weeble of course being one of them, I have quick fill on small order size. Obviously I

have no commission and I get some price improvement. So what that means is that

improvement. So what that means is that getting in and out at more or less the same price because of price improvement on the entry and the exit break even is actually a small winner. And because

there's no commission, I don't have to worry about paying commissions, right?

So, we take that same exact trade with a direct access broker right here, which I did at Lightseed. I got slippage on my entry. I got slippage on my exit, which

entry. I got slippage on my exit, which meant I couldn't actually be break even.

And on top of that, I paid commissions and fees. Now, I'll tell you, I've been

and fees. Now, I'll tell you, I've been using Lightseed for a long time, and you guys know that I really enjoy this broker. It has its benefits, especially

broker. It has its benefits, especially in a really hot market when I want to trade with big share size, but in a market that's a little softer, not being able to jump in and out as quickly

because of slippage and not being able to have break even trades essentially because of commissions, well, that's going to eat into profitability. So,

let's talk here about day four. So,

we're on day four of the small account challenge. And as of right now, to check

challenge. And as of right now, to check in with our fundraising goal, I have now raised over $177,000.

This is impressive. And thank you guys for hitting the thumbs up on these episodes because each time you hit the thumbs up, it adds an additional dollar to what we're donating to charity. So,

I'm going to do a live broadcast on Friday. And on Friday morning during

Friday. And on Friday morning during that live broadcast, I will be announcing the donations that I'm going to be making. So, I've got $32,000 right

here ready to get donated. And I'm

really encouraging you guys to give me some suggestions. I'm looking through

some suggestions. I'm looking through them. I'm vetting them. You guys have

them. I'm vetting them. You guys have already made some great suggestions, which I really appreciate. And so, I'm going to be doing those donations on Friday morning during my live broadcast

right here on YouTube. All right. So

stay tuned for that Friday morning.

Okay, so here's day four of the small account challenge. I've got $11.7

account challenge. I've got $11.7 on SPRC.

Okay, so yes, we can argue that this is more or less a break even trade. My

account is now up $1,111.82.

Every little bit adds up. So, the

account is up over 55% and I've got $3,11182 in the account. Of course, I funded it with $2,000. So, today's day four,

with $2,000. So, today's day four, accounts up 55%. I'm making good progress. But, you know, big picture, we

progress. But, you know, big picture, we look at the growth. Even though I'm maintaining 100% accuracy today, definitely thanks to the fact that I was able to profit even just a little bit

from a break even trade, my average winners are going down. That's because

on day one I had a really nice big win and then day two, day three, and day four the wins have been smaller. So,

still sitting obviously in in good shape. $277 average winner, but um but

shape. $277 average winner, but um but not as much as I'd hope for. And

actually, this reminds me that there's one cell that I forgot to update, which is right here, $11.7.

But that's actually just fine because we can step out of this for a moment and I can highlight for you the trades I took in my main account versus the trade in Weeble. So here in Weeble, I've got this

Weeble. So here in Weeble, I've got this one trade jumping in and out break even.

And I had this more or less the same trade over in my main account and I lost $2,600.

Now obviously I was taking a bigger position, right? So, taking more more

position, right? So, taking more more share size in my main account, but I got slippage on the entry, slippage on the exit, and then on top of that, I paid a commission. Now, the other stock I

commission. Now, the other stock I traded, AMBR, I ended up doing well on.

And it would have been awesome if I could have traded that in Weeble, but alas, I was out of cash because it's a cash account. Now, that's not Weeble's

cash account. Now, that's not Weeble's fault. That's just the way the rules

fault. That's just the way the rules are. With a cash account, you can trade

are. With a cash account, you can trade as much as you want, but when you run out of cash, you're done. And so today, I used all my buying power on that one trade and it was a dud. Okay, so if we

jump back into the slide deck here, let's look at my one trade from today.

SPRC, it hits the scanner. And the

second it hits the scanner, I look at it and I recall this is a stock that's definitely worth paying attention to.

It's got a low float. It's up um currently 30% on the day. It has

breaking news, which is identified by the flame right here. And the relative volume is already 47. That is, if you know my five pillars of stock selection,

I'm focusing on stocks that have relative volume of at least five. So

here we go. This has relative volume of 47. That's fantastic. Even though the

47. That's fantastic. Even though the total volume is light, the relative volume is above average, and it's because they have news. Now, many of you guys know this. I had the pleasure of

having an endoscopy this summer. So when

I saw the headline was to acquire a treasury of patents for an innovated endoscopy, I thought, you know, that's actually somewhat interesting. It it

kind of, you know, hit me in a personal way. I was like, yes, this is a this is

way. I was like, yes, this is a this is this is right up my alley. I can

understand that. So as it squeezed up right here, it hit a high of about 330.

It dips down just for a moment inside this candle. So that candle has that

this candle. So that candle has that bottoming tail right there. So, it dips down just for a moment and then it squeezed up and I punched it. I pressed

the hotkey, shift one, I punched it, I'm in and it pops up and I'm like, great, this is what I was looking for. But what

happened is it popped up here and then of course when I bought it in my main account, I got slippage. So, I'm filling at the top of these candle wicks in my main account and as you can see, it

doesn't end up pulling away. It just

sort of stalls out here. So I got out right here more or less and as I said this was a break even trade. So I was able to basically jump out and I got

some price improvement. Now let's talk a little bit more about the price improvement just for a second. So if we look at price improvement and by the way just so you guys know I have no affiliate relationship with any broker.

Lightseed Weeble no broker. So whenever

a broker comes to me and says hey Ross you know we want you to promote our broker on your YouTube channel or something like that. What I'll sometimes say is, look, that's great. I appreciate

that. Any money that you would give me as an affiliate, you know, commission, give that to the, you know, to to the people that sign up in some way. I don't

care what it is, but but find some way to give it back to them. So, with

Weeble, uh, you know, I I'm I'm happy to promote them because actually I think they're really a fantastic broker, and they're not paying me to say this. So

over on Investipedia right here, um they analyze payment for order flow, which is the price improvement that you get when you route uh with these commission free

brokers because they route your order through a wholesaler. And so um Investopedia noted that Weeble had the highest share per share payment for

orderflow price improvement of almost 1 cent per share. Almost 1 cent per share.

Now, let's go back and look at my order.

How many shares did I buy? 932.

So between the buying and the selling being up $11 here, I would have to attribute possibly all of that to price improvement. In fact, this might have

improvement. In fact, this might have been even with small size a loser with a direct access broker. So there, you know, I mean, look, direct access brokers have a place. I use that. I

still use it for my big account. I've

made more than $20 million using a direct access broker. when the market's hot and you want to trade a big size, absolutely. But as we've talked about um

absolutely. But as we've talked about um in some of my other episodes, especially for members over at Warrior Trading, I think there's sort of an interesting relationship here where a commission free broker and we'll use we uh blue for

for a commission free broker, a commission free broker, even with an account with like a $100 and you start trading with 10 shares, you start benefiting from price improvement. So

even though your account will grow very slowly, you're not at this disadvantage with a tiny account. Whereas with a direct access broker, you start with a

small account of, you know, whatever it is, $100. Well, we'll just start at the

is, $100. Well, we'll just start at the same same spot. And because you're not getting price improvement, you're paying commission, and you're going to have platform fees, you're actually going to be losing money, right? So when can you

start making money? Well, not until you can start taking bigger size, which means you really need to start with a bigger account up here. you know, you just unfortunately if you stayed at this account balance, your account actually would probably just keep dwindling like

this. So, if you could start with like

this. So, if you could start with like $1,000 or $5,000, you know, then you can kind of hit the ground running and start to make progress, but it just it the stakes are a little bit higher with

these uh direct access brokers. Again,

they have their benefits, especially the ones that offer leverage and and there's international brokers, as you know, that offer leverage. Uh even if you've got

offer leverage. Uh even if you've got only a $2,000 account, a lot of international traders like that, but you know, then you're trading with an offshore broker, and that comes with its own challenges. So, anyways, th this, as

own challenges. So, anyways, th this, as it turned out, felt like a really appropriate topic for um for today's uh recap. And it's a brief one because

recap. And it's a brief one because look, I mean, it was only one trade and and there wasn't really a whole lot to talk about. I mean, I jumped in. We had

talk about. I mean, I jumped in. We had

news on it. It was popping up and then it kind of failed. So, for those of you guys that found this interesting, I hope you hit the thumbs up. Again, your

thumbs up, add an extra dollar to the donations to charity. I will be doing a live stream this Friday morning, so you guys can tune in right here on YouTube.

And I'll be giving you my market commentary. I'll be doing some Q&A. And

commentary. I'll be doing some Q&A. And

I'll also be um announcing which charities I'm donating to. And uh for those of you guys that haven't already checked out my full length episode on the small account growth strategy, I'll put a link to that right here at the end

of this episode. So make sure you guys check it out. And thank you as always for tuning in. And I will see you back here for the next episode real soon. And

reminder, as always, trading is risky.

My results aren't typical. And there's

no guarantee you'll find success.

Whether you trade on your own, you'll learn from me. So please take it slow and manage your risk.