Most small-account traders are anxious to graduate to the big leagues.
But you need to start small and dream BIG.
It’s fun to fantasize about trading with a huge account.
And if you study hard and focus on executing your strategy with discipline and consistency, one day you will take on big positions and bag bigger wins…
But that’s not how you should think about your trading, especially in the early days with a small account…
Because a large account is a double-edged sword.
It can allow for bigger wins, sure … but it can also lead to much larger losses.
The more you have to trade, the more you have to lose. It’s that simple.
Starting with a small account can help protect you from your own worst instincts as a newbie trader.
Today, I’ll show you how to start day trading with an account as small as $100…
So, you’ve got $100 in a brokerage account. How do you day trade with this small of an account?
I’ve been teaching for years how to maximize returns — while minimizing risk — in a small account. Even $100.
Look, it’s not easy to grow a small account. If it was easy, everyone would do it.
Day trading a small account involves carefully selected trades, focusing on strategies that allow for short-term profits with limited capital.
The essence of this approach lies in maximizing trade efficiency with precise risk management and strategic entries and exits.
You’ve gotta be very precise. There are four steps to doing so:
- Step #1: Select a few high-potential trades
- Step #2: Apply a disciplined approach to entry and exit points
- Step #3: Using risk management techniques (like stop losses) to protect your $100
- Step #3: Make the most of your limited capital by focusing on quality over quantity
And speaking of quality over quantity…
Start Small, Dream BIG…
I suggest limiting yourself to just two or three trades per week when you’re initially working to grow your small account.
With only $100, the odds are you’re using margin (leverage provided by your broker), which means you’re gonna be limited by the Pattern Day Trader (PDT) rule.
(The PDT rule is a regulatory designation for traders who execute four or more day trades over a five-business-day period in a margin account.)
A lot of people hear about the PDT rule and say “Only three trades in five days? I could never make that work.”
Listen, the PDT rule is a blessing in disguise…
It forces you to zero in on the best setups only and practically guarantees that you won’t fall victim to overtrading.
The fact remains that most weeks, there aren’t more than three to five stone-cold perfect setups.
This is especially true right now as the market is extra volatile.
So, don’t be discouraged by the PDT rule. It’s not as bad as it seems.
Now, you may be wondering how to discover those five perfect setups each week…
Well, that’s what we help people do every morning in Pre-Market Prep.
I give two LIVE trading webinars every day.
One is in the morning, before the market opens, at 8:30 A.M. Eastern. The other is at noon, or 12 P.M. Eastern.
The morning webinar helps us prepare for the morning runners. The noon webinar helps us recognize key volatility as we head into the market close at 4 P.M. Eastern. These are the hottest times to trade.
But the pre-market session is most important. A lot of the biggest spikers throughout the week start in the mornings.
And anyone who has eyes on them early is free to trade the price action.
Take a look …
Tuesday 4/16: WiSA Technologies Inc. (NASDAQ: WISA)
Like all of the runners on this list, we had eyes on WISA during our Pre-Market Prep.
The company announced an additional deal with an existing “multi-billion revenue company” for WISA’s audio technology.
The stock’s float was also attractively low. A low float means that there’s a low supply of shares. The low supply helps prices spike higher when demand increases.
Our goal is to find spikers with less than 10 million shares in the float. Those are the stocks that have the best chance of spiking. StocksToTrade shows that WISA has 1.4 million shares. That’s well below our goal.
The spike measures 520% so far … Take a look at the chart below where every candle represents one minute:
WISA chart multi-day, 1-minute candles Source: StocksToTrade
Take note of the current price consolidation around $6 … That’s a hint the price could continue higher.
Wednesday 4/17: INVO BioScience Inc. (NASDAQ: INVO)
INVO announced 4Q revenue for 2023 during after-hours on Tuesday.
By the time we had eyes on it Wednesday morning, the price had already spiked 120%.
The 4Q data showed intense revenue growth …
- Compared to the 4Q of 2022, revenue grew 397% to $1,381,754.
- The company was also able to lower operating costs by $0.1 million.
The total move measures 360%. Take a look at the one-minute candle chart below:
INVO chart multi-day, 1-minuter candles Source: StocksToTrade
In case you were wondering, StocksToTrade shows INVO’s float is only 2.3 million shares. Yet another big runner with a float below 10 million shares.
Detecting a pattern?
Thursday 4/18: Bio-Path Holdings Inc. (NASDAQ: BPTH)
I’m writing this watchlist before the market closes on Thursday … And BPTH could have spiked higher on Thursday.
It’s my #1 watch for Friday morning.
The company announced the completion of a trial testing its BP1002 effectiveness in Leukemia patients. And StocksToTrade shows that the float is only 658,000 shares.
This is a micro-float stock that already spiked 130% in less than 24 hours. And the chart shows clear consolidation midday.
Take a look at the chart below with one-minute candles:
BPTH chart intraday, 1-minute candles Source: StocksToTrade
Take the first step towards becoming a successful intraday trader and join us in the Daily Income Trader System today.
It’s where you’ll find our trading live streams!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
