The Power of Small Wins in Trading
How focusing on capital preservation and small gains can lead to massive long-term success.
Hello Trade Warriors,
I want to take a moment today to spark an important realization—one that’s vital to long-term trading success: the power of capital preservation. It’s one of the most crucial, yet often overlooked aspects of trading.
I’m breaking down Capital Preservation into two parts:
Small Wins Add Up 👈 You are here
How Not Losing Is Winning
Today's post is about celebrating small, consistent wins, and in the next post, we’ll explore the power of not losing.
Small Wins: My Experience with Capital Preservation
Recently, I reviewed my Robinhood account, enjoying a day’s profit. I’m trading with a smallish account—around $3K—and Robinhood’s % profit tracking stood out to me. It’s easy to see your daily, weekly, and monthly percentage gains, which helps me stay focused on capital preservation and consistent growth.
Here’s the lesson I learned: Small, consistent wins matter.
I’ve trained myself to be thrilled when I gain 2% in a day. It might not seem like much, but when I hit that target, I stop for the day and recharge my mental energy.
Imagine making 2% every trading day on a $3K account. It would compound into half a million dollars by the end of the year. While that’s not entirely realistic, 1-3% per week or 5-10% per month is—and that’s powerful.
The Power of Small Gains
Small percentage gains add up fast. Think about it: if you stay disciplined, that same half a million can be earned in just 3-5 years with steady compounding. You could go from a small $2K account to half a million dollars in a relatively short time. All it takes is discipline, patience, and the ability to stop when you’ve hit your target.
Action Plan
Set a daily target: Aim for 1-2% on a small account, and be satisfied with those wins.
Know when to stop: Don’t let greed push you past your target. Take a break once you hit your goal to preserve your mental energy.
Think long-term: 1-3% per week or 5-10% per month is realistic and, when compounded, can lead to massive gains over time.
(Bonus) Make regular deposits: Boost your strategy by contributing regularly. Even $100 a week or per month can amplify your gains and accelerate your progress.
Summary:
Small wins might not seem like much, but compounded over time, they can transform your account. Don’t underestimate the power of consistent progress.
Up next: How Not Losing Is Winning—why preserving your capital is just as important as making gains. Stay tuned!