Most traders with small accounts are anxious to graduate to the big leagues.

They say, “I can’t wait until I have a large account so I can make bigger trades and larger profits.” 

And to that, I reply, “Start small, but dream BIG!”

Sure, it’s fun for new traders to fantasize about trading with a huge account. 

And if those traders work hard and focus on their strategies, one day they probably will take on big positions and bag bigger wins…

But that’s not how you should start thinking about your trading, especially in the early days with a small account.

Because a large account is a double-edged sword…

You see, not only can a sizeable account allow for bigger wins … it can also lead to much larger LOSSES.

The more you have to trade, the more you have to lose. It’s as simple as that.

Bottom line: Starting with a small account can help protect you from your own worst instincts as an inexperienced trader. 

Keep reading and I’ll pass on some wisdom I’ve learned about small-account trading…

Start Small, Dream Big

Few traders have a high win rate at first, regardless of account size. (I know I made a lot of dumb mistakes before I started trading a consistent strategy.)

However, foolish newbies still believe they can throw a bunch of money into a large account, chase my alerts, and become a multi-millionaire.

This is DEAD WRONG. It’s a recipe for disaster.

Instead, I encourage everyone reading this to start with a small account. Hit singles. Be consistent.

Only after you’ve proven your ability to increase a small account by several multiples should you consider trading larger sizes.

Now, you may be wondering…

Why should you listen to me about growing a small account? 

Well, because I’ve proven I can do it time and time again…

You see, I embark on an annual Small-Account Challenge, where I force myself to trade with a limited amount of capital. 

Then, I see how high I can take the account value in a short period.

Earlier this year, I took a small account from $10,000 to $130,000+ in a little over a month. (I’m very proud of that accomplishment…)

But you wouldn’t have needed $10,000 to do something similar…

You could’ve turned $1,000 into $13,000, or $3,000 into nearly $40,000 using a very similar strategy.

Conducting these challenges helps to sharpen my skills. But most of all, I do them for YOU.

And I couldn’t achieve the gains I do in the short periods I do without the power of options trading in my arsenal…

Why Options are the Answer for Small-Account Traders

If you’re trying to grow a small account — options trading is the fastest way to do so.

That said, you must be cautious. Let your winners ride and cut every loss immediately.

No one understands this concept better than my top student, Jenny Smith! 

She’s a shining example of how you can potentially take a modest account and grow it into a small fortune using the power of options trading. 

Click here to read about Jenny’s INCREDIBLE trading journey!

But beyond that, why specifically should traders with small accounts utilize options contracts?

• Leverage: Each contract represents 100 shares of the underlying stock, causing the percentage shifts to be amplified compared to the moves in common shares. One perfectly-timed options trade could potentially turn your small account into a big one.

• Defined Risk: When buying options, you can never lose more than the amount of premium you spent to enter the trade. This allows you to create a defined-risk strategy around options contracts with far more upside than the vast majority of common-share trade.

• Variety of Strategies: Strategically, trading common shares gives you only two choices: buy or sell (long or short). But the options market is like an all-you-can-eat buffet of potential trading strategies. 

Of course, in theory, options are riskier than common shares. 

This is because options contracts are depreciating assets. The majority of them expire worthless by their expiration date.

But if you focus on your game plan and time your trades with precision — options can exponentially grow a small account in a very short amount of time, much faster than trading common shares.

Final Thoughts

Trading with a small account teaches me important lessons.

If you’re anxious to grow your account quickly, slow down. Keep things in perspective. Zoom out and look at the big picture. Understand where you are in your trading journey.

If you take things one step at a time and approach each step of your journey with discipline, you’ll be well on your way to your dreams of one day trading a massive account.

I’ll say it once more…

Start small, dream big!