Most of my students aren’t trading millions of dollars, they’re working hard to grow small accounts…
And starting with a small account is something I genuinely respect.
Many traders jump in too quickly, aiming for big wins right away…
I’ve watched countless students get aggressive too early, blow up their accounts, and head back to their day jobs with their tails between their legs…
Now, I want to help ensure this doesn’t happen to you. Starting small and dreaming big is the best path to take…
Doing so will minimize the damage when you make those inevitable mistakes every new trader encounters.
Better yet, trading a small account will force you to learn how to avoid those mistakes moving forward.
With that in mind, let’s go over my six-step guide for growing a small account — even if it’s only $1,000…
Tip 1: Understand the PDT Rule
If you’re trading in the U.S. with less than $25,000 in your account, you’re subject to the Pattern Day Trader (PDT) rule.
This rule limits you to three day trades in a rolling five-day period. This rule is absurd, but it does have one silver lining … it forces you to be selective.
You can’t afford to waste your trades, so focus on finding A+ setups. Every trade counts, and being selective will pay off in the long run.
One great way to combat the PDT rule is swing trading. Click here to see how IRIS can help you identify quality swing trade ideas that aren’t subject to PDT problems.
Tip 2: Choose the Right Broker
One of the great things about recent years is that most brokers now offer commission-free trading or very low fees.
However, don’t just jump at the first free broker you find. Some of the best opportunities for small accounts are in OTC (Over-the-Counter) stocks, and not all brokers allow you to trade them.
It might be worth paying a small commission if it gives you access to a wider range of stocks, especially if you’re looking at penny stocks that have the potential to spike big.
StocksToTrade is my favorite because it has up-to-date market info, clean charts, built-in scans, and more. The platform is perfect for small-account traders. Try a 14-day trial of StocksToTrade for just $7!
Tip 3: Avoid Market Orders
There are two types of stock orders:
Market Orders are designed to be executed immediately at the best available price. You don’t control the price.
Limit Orders are executed only at the price you specify or better. You do control the price.
Never use market orders when trading, especially with a small account. Sending a market order is like telling your broker, “Give me the worst possible price.”
FOMO (The Fear of Missing Out) can cause some people to jump into market-order trades without thinking, but this is a mistake. Patience is key.
Always use limit orders, which allow you to control the price you’re willing to pay.
Tip 4: Wake Up Early
Success comes when preparation meets opportunity.
If you want to be ready to capitalize on the market’s biggest moves, you’ve gotta get up early and put in the work.
This means building a morning routine that keeps you focused, motivated, and awake.
Run your scans, check the news, and build your watchlist before the market opens. Take note of premarket movers that could break out further once the bell rings.
Preparation is crucial. If you’re not willing to put in the effort, you’re setting yourself up to fail.
This is why I go live every day at 8:30 Eastern for Pre-Market Prep. We break down the day’s most promising charts before the market opens, so you’re prepared for anything once the bell rings.
Commit to getting up with us before the market opens, and you’ll give yourself an edge over other traders who are (literally) sleeping.
Tip 5: Focus on the Best Times of the Day
The time of day can have a significant impact on price action, especially for momentum traders.
I often talk about the 9:45 a.m. and 2:00 p.m. windows. If a stock fails to break out by 9:45, it’s often a sign that it will fade for the rest of the day.
Conversely, the 2:00 p.m. window is great for breakouts, especially if the stock is holding above VWAP (Volume-Weighted Average Price).
Avoid trading during midday when Wall Street goes to lunch and the market slows down. Focus on 9:45 a.m. and 2 p.m. for the best chances to profit.
Tip 6: Study, Study, Study!
Finally, if you want to crush the stock market, you need to immerse yourself in it.
Study the markets, read books, analyze charts, and absorb as much information as possible.
Passion doesn’t come overnight — you need to create it by grinding every day.
When you put in the work, success will follow. Becoming obsessed with the process will help you shorten your learning curve and grow your small account faster.
Stick to these tips, stay focused, and remember — success in trading is a marathon, not a sprint.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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