Need Guidance Getting Started with Small Account

Discussion in 'New Member Introductions' started by VinceField, Sep 24, 2020.

  1. VinceField

    VinceField Member

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    Please advise me! After completing my studies and gaining some experience paper trading, I plan on opening a small day trading account. My funds are somewhat limited and although I have the $25k to put into a margin account, I didn't want to tie up that much of my savings. I would be more comfortable with a $10k account, but the problem is the pattern day trader regulation. It seems to get around that, I would have to have a cash account. In that case I wouldn't be able to short sell and I would have to make sure there is enough settled cash in the account to make a trade, which could impede the frequency of my trading.

    I only plan on risking 1% of my account on any given trade, so I'll be starting off small and perhaps I won't be buying enough to be affected by the cash settlement rules.

    I want to trade enough to qualify as a trader (TTS) by the IRS so I can receive some tax benefits. I suppose this would mean at least one trade every day of the week.

    Any suggestions and recommendations would be greatly appreciated.
     
  2. StockJock-e

    StockJock-e Brew Master
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    You do not need to be a daytrader to make money.

    You can just as easily trade 2-3 times per week and be more successful than a daytrader who is trading 50x per day.

    The point I am making is that everybody tends to find their path in time. Some people fall into active trading right away, others get there over time while others go the opposite way!.

    Get your feet wet, start getting a feel for the markets and your favorite stocks, do not feel pressured to enter a trade, there are always opportunities!
     
  3. VinceField

    VinceField Member

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    Thanks for the response. I've researched and done some studying on the various types of trading. I feel more attracted to intraday trading. I'd rather get in and out than wait for days biting my nails hoping the stock moves in my direction.
     
  4. A55

    A55 Well-Known Member

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    Interesting. Some of us wait decades.

    Shop around for a brokerage to fit your needs. This may present you with the opportunity to go to a brokerage. Talk to someone about how to set up an account to fit your needs. A human being will probably be better than a phone app account opened online.
     
  5. StockJock-e

    StockJock-e Brew Master
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    Well, Im attracted to Swedish supermodels, but that does not mean Im going to land one! :D

    Dont worry about the style of trading, get your account funded , pick 2-3 stocks that you understand, follow the action, step into them slowly.

    You will find that not everything is as it seems when you start using real money instead of daytrading.
     
    VinceField likes this.

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