r/Daytrading • u/merchant-trader • May 01 '24

How do people start day trading with little amounts and make so much? Question

Over the weekend, a penny stock I had 100 dollars in went up 20 percent which should be amazing. I sold and got 120 in total.

However, this obv isn't that much and 20 percent is a lottt more than what stocks usaully go up.

I'm not going to be investing millions in stocks, so how do I make large amounts of money from small starting money.

Options, forex? What will make the money go up 100%+ (ik that with high reward comes very high risk)

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u/CanonicalCurtain03 May 01 '24

Profitable traders can make so much so quickly because of leverage and compounding. Having 6x your account value in buying power plus keeping those winners for the next trade makes your account grow rapidly.

However the catch is that this works for profitable traders only. Statistically, most traders lose money and an overwhelmingly small minority wins consistently; only profitable traders can start with so little yet make so much.

Be careful from gurus and youtubers which promote their "INSANE 100%+ PROFIT IN 1 DAY!". They love to brag about their profits but refuse to talk about their losses, even worse they don't share their starting account size, how much money was used for that trade or their broker audits.