Need Guidance on Starting with Small Account

VinceField

Junior member
38 0
Please advise me! After completing my studies and gaining some experience paper trading, I plan on opening a small day trading account. My funds are somewhat limited and although I have the $25k to put into a margin account, I didn't want to tie up that much of my savings. I would be more comfortable with a $10k account, but the problem is the pattern day trader regulation. It seems to get around that, I would have to have a cash account. In that case I wouldn't be able to short sell and I would have to make sure there is enough settled cash in the account to make a trade, which could impede the frequency of my trading.

I only plan on risking 1% of my account on any given trade, so I'll be starting off small and perhaps I won't be buying enough to be affected by the cash settlement rules.

I want to trade enough to qualify as a trader (TTS) by the IRS so I can receive some tax benefits. I suppose this would mean at least one trade every day of the week.

Any suggestions and recommendations would be greatly appreciated.
 

absence

Junior member
42 7
Why don't you start with less than that? That is lot. You can try between $1k to $5k just for the starter and avoiding the mismanagement of money.
After that, you can gradually increase the funds if you are able to make profit
 
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vlakis

Newbie
3 0
I would advise you to start with a much smaller amount. So you would be able to understand whether it is realistic to make a profit, and how big a profit. And then you can invest more.
 

VinceField

Junior member
38 0
I would advise you to start with a much smaller amount. So you would be able to understand whether it is realistic to make a profit, and how big a profit. And then you can invest more.
I put 3k in my account but I'm only paper trading until I develop a consistent strategy.
 
 
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