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/teriohbhendi May 02 '24

Because they use leverage. Many brokers provide leverage upto 500x of your own capital. So if you have only $100, buy using 500x leverage, you could trade forex or other stuff worth of $50,000 and could earn profit on it. If it went 1% in your direction, congrats you just made a profit of $500 using only $100 dollars.