One of the dumbest things I hear from people is that you need a lot of money to get started in the stock market.
If you’re a newbie, then a small account is an advantage.
Because trading is hard…
If you start with a high five-figure or six-figure account and you have no skills, knowledge, or experience…
Guess what’s going to happen?
You’re going to lose A LOT of money.
You’re still likely to lose money if you start with a small account, but at least it will be something you can bounce back from.
The question then remains, can you turn a small account into something substantial?
I turned mine into millions of dollars…and dozens of my students started small and built their accounts into seven figures…two into eight figures.
Here are three things I showed them that helped take them to the next level.
Table of Contents
#1: Set The Right Expectations
No one walks onto a basketball court the first time and thinks they’re ready for the NBA.
But when it comes to trading…social media has distorted everyone’s reality.
All these phony accounts posting big wins and making it look easy…has newbies believing they’ll make millions right out of the gate.
My two top students who have made more than 8-figures…didn’t make money in their first year.
Then you need to think longer term.
Instead of looking for results in months two or three…start forecasting what years two and three will look like.
This is important because it emphasizes learning.
Your goals early on should be focused on learning setups, mindset, strategies, catalysts, market psychology, and risk management rules.
Forget about your PnL.
That’s why starting small is such an advantage.
Because your only concern should be on acquiring knowledge and getting better.
#2: Know Your Constraints
Everyone is different, right?
Some people have to study at night or on the weekends.
Others can only allocate a fixed amount of time to trading.
And if you have a small trading account, you’re limited to the number of trades you can take each week.
Whatever your deal is…you must determine what strategies will work best for your constraints.
The cool thing is, the farther you get in your journey and the more success you achieve, the fewer constraints you have.
For example, I can travel the world year-round…and to some of the most beautiful places on the planet.
#3: Develop The Right Rules
Ever heard the phrase it’s hard to teach an old dog new tricks?
Your first few years in trading is where your foundation will be built.
That’s why you must develop the right rules.
For example, my number one rule is to cut losses quickly.
Yes, my number one rule is focused on risk management.
Too many newbies are focused on the wrong things.
Risk management is critical to your long-term success.
But that’s not all.
You also need discipline.
How do you stay disciplined?
One way to do that is by outlining what your favorite setups are.
Once you’ve learned how a setup works and you’ve proven that you can consistently make money trading it…then you focus on that setup.
So many newbies are trying to catch the next FOMO trade they find in a chat room or on social media…they never learn any setups.
They just know how to chase bad plays.
Of course, most of them lose.
It’s a slow process…but take it from me. It’s worth it. You want to become a rules-based trader in the beginning.
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