Is the Dollar Cross the Perfect Trade for Small Accounts?

Yesterday my Rubicon Trading System alerted 14 stocks. I almost didn’t know what to say.

I’ve been trading dollar cross plays, the setup that the Rubicon Trading System alerts, for years. So, I know it works and I know the statistics.

As soon as I saw the announcement last fall that the PDT was coming to an end, I thought it would drive the market bananas. Especially small caps.

But even I’m surprised by the sheer number of dollar cross plays we’re seeing.

Make this trade at 9:30 a.m. on Monday…

The Big Picture

If you took yesterday’s 14 stocks and spread them out over a month, that would still be a lot of dollar cross plays.

As I said before the end of the PDT rule, new traders and those coming back to the markets will gravitate towards the lowest priced stocks.

Now, the mentality of the average trader is…

• Get rich quick
• All in every trade
• Double your money
• And buy a Lamborghini next week…

It’s unfortunate, because very few choose to do it the right way. That’s why I work so hard.

You’ve heard the numbers before: 90% of traders fail. But have you ever wondered why?

It’s because 90% of people don’t treat this seriously. They think it’s a game or it’s fun. But not you, my friend.

Maybe you’ve tried trading before, but you got frustrated because of the PDT rule. I’ve told new traders for years to trade with a cash account so they didn’t have to worry about the PDT.

Now, there’s a lack of flexibility with a cash account. You can trade all your cash and you have to wait a day. But as a new trader, that’s not a big deal. Especially when you start to understand that…

The Dollar Cross Is the Simplest Strategy Out There

You’re not going to trade every dollar cross play. And I’m not suggesting that you’ll win every time when you do. That’s not how trading works.

But the dollar cross is so simple that anyone can learn it. There’s more to it than price alone, but the basic idea is:

• Buy when it crosses $£1
• Set a tight stop, say $0.89 (and respect it)
• Set realistic targets, like $1.10, $1.20, or as high as $1.30

Are you going to get rich making $30 on 100 shares of a dollar cross play? No. But if you trade with a plan and do it enough times, you can start to trade 200 shares. Then 300, 400, or 500.

That’s how this game works for people who take it seriously.

My Take

It’s a struggle to get this setup across to people because it’s so simple. I meet traders who will go all in on an extremely complicated tool. It’s the “computer says” mindset. The more complicated, the more they trust it.

But when it comes to this simple strategy they just look at it and say “it can’t be that easy.”

My friends, with all the newbies trading margin accounts because there’s no more PDT, I think we’re going to see a lot more Rubicon plays.

Remember to always trade with a plan, respect your stop, and be happy when you hit your target. You’ll see what I mean when you check out the charts below…

Watchlist

Boqii Holding LImited (NYSE: BQ) provided several dollar cross opportunities yesterday:

Now, the first move was the most straightforward because the momentum was there and nobody was crying yet. Later it was a lot of chop.
VS Media Holdings Limited (NASDAQ: VSME) also crossed the Rubicon in premarket yesterday and went near vertical into the $5s before a pullback:

Again, I’m not suggesting you hold that long. But more experienced traders could’ve scaled out of VSME for a nice win.

Get excited and watch for dollar cross plays because they’ll just keep coming.

On My Radar

• Consumer price index numbers came out yesterday. I still think most of the selloff is big money going to cash for tomorrow’s SpaceX IPO.
• Who says humans are unpredictable?
• The “Anti-Nvidia” trade? It’s starting to look like the old Mac vs Windows
• Anthropic just released a new model called Fable 5 to the general public. It’s Mythos with guardrails.