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.
Growing A Small Trading Account? Check this Out
When multi-millionaire trader Mark Croock first started trading, he was an overworked and underpaid accountant…
So he knows what it’s like to start small while wanting to massively grow your wealth as quickly as possible.
That’s why he just recorded a step-by-step training that reveals what he believes is the best options trading method for someone trading with a small account.
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!
$127k in just 24 hours?! 😳
Did you catch the Shadow Trades Summit with Tim Sykes and Mark Croock?
Mark pulled back the curtain on his shadow trades strategy…
Detailing step by step how he was able to make $127,000 in just 24 hours, during the middle of a market crash!
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.
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.
Trading with a small account teaches me important lessons.
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!
Want to be alerted to hot trade ideas before anywhere else?
Breaking News Chat is the alert service that traders can’t get enough of. Two former financial analysts scour the Stock Market and news for stocks that could potentially spike and alert the room allowing you the chance to get in on the action.
Check out the alert for NRDY on August 23rd:
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