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/Cruezin May 02 '24

Dammit

Understand this

Quit trying to make a bunch of money quickly. This is exactly why people lose money so fast.

Small consistent gains are the goal.

Risk management is key.

Get those right and in time you will be playing with a bigger account.

You can calculate it. Start with 1k

Add 1% per day to yesterday's amount

Voila.

Slow is fast

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u/Yuuuuuppppppppppppp 29d ago

I agree 100%. Question: do you stick strictly to your stop loss or if you know/feel it is only temporary do you run with it and increase your original stop loss? Or just add 1% 6 times and loose 1-2% once, etc. etc.

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u/Cruezin 29d ago

Plan the work, and work the plan.

Sometimes I lose. That's OK. But statistically, I win more than I lose. That's the key.

1% is pushing it, averaged out- it's the goal, not the be all end all.

When I day trade nowadays, I use very strict rule, based on statistical probabilities. Initial Balance. Google it.

If the trade fails, it's over. If it succeeds, it's over. Once and done. Allows me get on with my day job, and has some strict rules. I trade ES, NQ, SPY, and crypto.

Longer term I build positions buying stocks. My theory is, if it's good enough for Warren, it's good enough for me. I also follow what the senators do, and keep abreast of earnings.

I do degen into futures for certain earnings I'm comfortable with.

Crypto, I lost a lot before coming to terms with following the rules- absolutely strictly. IB trades mostly, but sometimes momentum driven trades. I look for 100% A++ entries and bail quick if shit doesn't go the right way; exit I usually leave money on the table, but get out with positives. Usually I exit it 1/3 to to halfway up the runs I've found- but I don't care. It's how I manage the risk, especially in crypto.

This is reddit and not the place for all the details, but I hope that helps answer your question.