Ok, this is going to be a page where I talk about starting with a small account, $1,000, and growing it from there. I still have not written my post about my 3% per day goal, but I will get there. For now, let’s talk about my small account challenge.
Let’s define a small account. Small account = $1,000 starting capital.
There are a few reasons why I’m using this amount:
- It’s a round number (I like round numbers)
- That’s how much I have to start trading with
- It’s a good amount that many people can start trading with
Those are the most logical reasons. I have this account setup in Ustocktrade, but you could set it up anywhere. However, with this small of a dollar amount, I would highly recommend either Ustocktrade or Robinhood since you will be doing simple trades (something any beginning trader can do since I myself am a beginning trader) and you don’t want to get eaten alive with fees.
Many experienced traders have told me NOT to set a profit goal (for example, a dollar amount in X number of days). I want to average 3% per day. But I do have a mental goal of $25,000 so that I can transfer that money from Ustocktrade into a regular broker where I won’t have to worry about the PDT rule. I don’t have a date set for that, just simply a mental goal to get there.
Small Account Challenge Day 1
Today I made one trade, an overnight hold from Friday on $YTEN. I actually only have $750 in my account right now because another transfer of $250 hasn’t made it into my account yet, so I only took a position size of 350 shares.
I was actually holding most of the day as well and sold at an unusually late 3 pm. But when the market opened the stock went down and I was determined to make a profit since I’ve traded this stock before and I knew it would bounce. That’s not a winning strategy, however.
Profit = $14.45, or 2%
My extra deposit will be available today so I will trade tomorrow with a full $1,000 small account!