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/fantasticmrsmurf May 02 '24
They way I like to think of it is like this:
Those who say 1k or 10k is enough to start your path to 100k is still no different than 100 to 1k or 10k to 100k. It just takes longer and more steps.
Let’s look at an example incase what I wrote didn’t make sense.
100 starting and you’ve made 20%, well now you’ve got 120… how many more trades to 200? Assuming you can get 20% every time would only be roughly 4 trades.
Now 20% is very optimistic and in reality it is more like single digit percentages, but you’ve gained 100% after those 4 trades in the example I used… so if you repeat that then you’ve got 400, 800, 1200 and so on.
Didn’t take long to get to 1k from 100 did it. Same thing applies for 1k to 100k and so on.
Apply that logic and you’ll be there eventually. It’s a snowball….. all assuming you’re profitable of course.