Need Guidance on Starting with Small Account

[VinceField]

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.

 

[VinceField]

I would suggest starting with a thousand dollars instead.

I started with 3k but I'm only paper trading until I develop a consistent strategy.

 

[vlakis]

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]

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.