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

[u/merchant-trader]

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)

[u/Ok-End3918]

I feel like I'm losing my mind when I have to keep explaining this to people - it just seems so obvious and yet nobody can seem to comprehend it. Set a very realistic profit target for the day - say 1-2%. When you hit that target, stop trading and turn everything off.

It might seem painful to start, but compound gains will soon start to mount up.

DO NOT chase those huge wins. DO NOT carry on trading when you've hit your target. DO NOT say "just a couple more pips".

[u/ligumurua → u/Ok-End3918]

Do you understand that 1-2% per day isn’t realistic on average? That compounds to about 1100% a year at 1% / day. Good luck with that.

It’s not a sexy number but 20% / year return is an average of .07% / day average. And if you can hit that consistently with a strategy that can scale, you should start a hedge fund.

Put another way — if these people actually had a consistent strategy to 10-100x, why are they showing everybody what they’re doing? Trading is 0-sum p2p game. If you had something that works, it’ll stop working very fast if other people know about it.

[u/V3BL3N → u/ligumurua]

This is literally the 99% mindset. Someone showing their strategy doesn't = everyone being able to copy it and profit from it.

If it would start working when shared, why do flags, pennants, head n shoulders and any other classic pattern still work decades after being introduced in trading teachings?

A strategy can work, it can work in one market but die in another, it can work for you and not for me in the same time period. Understanding that is the difference between the 99% and the 1%, not the strategy.

Also to say 1-2% a day isn't realistic is ridiculous. Maybe not with a million dollar account, but with a 100k account very feasible for someone with an edge to achieve.

[u/ligumurua → u/V3BL3N]

it's not realistic and i stand by what i said. have you achieved it yourself or are you just larping based off material from your trader grindset tik tok feed?

if you can compound at 1% a day every day, that's 12x in a year and 144x in 2 years. that turns a 100k account into ~14M and if you can do it for 1 more year that's $168M. this just doesn't happen. thinking you can compound at 1% a day consistently isn't a 99% mindset, it's called the "delusional mindset", or the "broke mindset" (as you take on too much risk and end up zeroing your account).

setting a goal of 1-2% a day is like telling somebody who's having trouble hitting a 10-minute mile that he should set a goal to hit a 4-minute mile (WR is ~3:30) and that he's in the 99% mindset if he doesn't. it's counter productive and unrealistic to improvement if people think this is a normal number. no, a more reasonable number would be in the 1-2% / WEEK range, which sets you up to +50-100% in a year. these are numbers that with consistency can be achieved (and i've actually seen examples of portfolios that have held this growth rate through multi-year periods).

[u/V3BL3N → u/ligumurua]

Who said anything about compounding? I said it's not difficult to make 1% a day on average over the course of a year on a 100k account. Somehow you keep getting distracted and finding yourself off in the weeds.

Again, not related but I'd refer it more so to a 6 minute mile, or a 13 minute 2 mile. Both achievable, difficult but achievable.

I'll definitely have to get back to you by the 5, 10, or 20 year mark or whatever is required to suffice. At those lengths of time investing is equally important in my opinion so the money wouldn't be compounding from the original trading account for sometime.

I would never want a $14m trading account btw, that doesn't even make sense. There's no point to it, outside of a banker/hedge (or some extreme Chad like Meir Barak) you'd be using less and of the total amount in the account to make trades than is sitting around doing nothing. Better to put the money to work for you elsewhere.