What’s The Minimum Needed To Trade Penny Stocks?

My next 100% FREE webinar HERE in just a few days

…and also Here’s another birthday gift and here’s my 3rd gift for you in honor of my 36th birthday this past week and I HIGHLY suggest you take advantage of them ASAP

I get this question every single day and I’m sick of it. If you read my blog post “Answering 20 Penny Stock Trading FAQs” you’d know the answer is:

You need $2,000 in order to short sell, but my most famous student HERE started with just $1,500 and had to borrow $ from his parents to open up several brokerage accounts…I’m not a fan of borrowing money to trade, and since then, E*Trade has become a solid broker with a minimum of just $500 I believe to open an account, although you still need $2,000 to short sell.

Also, the vast majority of my students are over the age of 18, but if you’re under that age and are truly determined, get parental permission and my team will work with you…I started with a custodial account in my parent’s name, it’s not fun or easy, but it is possible.

Download the key points of this post as PDF.

Stop thinking in terms of minimums, if you’re serious about becoming a millionaire, you can’t cheat your way to success, my Millionaire trading challenge students aren’t created at Costco, coupon clipping doesn’t grow your wealth exponentially and selling shit on Ebay takes forever to build true wealth!

And, here’s a video answering 30 FAQs not just 20:

But, more important than all of the stuff about having the proper mindset, let’s get into the nitty gritty details of actual account minimums because there’s so many assumptions and BS floating around out there, it really disturbs me.

First off, you don’t need ANY money to start studying and you should focus on studying FIRST before trading as you must picture trading as being like a doctor and your account is your patient…and without the proper medical training AHEAD OF TIME, your patient will suffer and die.

Now you don’t need to go through a decade of medical training and rack up six-figure in student loan debt, but you do need to know how to plan a trade ahead of time for if you just throw your hard-earned money into the market, or into penny stocks, I guarantee you it’ll be a waste and a loss in no time at all.

So read this free guide FIRST, watch these free video lessons FIRST, watch this free 11-hour guide FIRST, watch these free video lessons FIRST, read this free book FIRST, watch all 800+ free videos here FIRST.

Yes, you have A LOT of studying to do FIRST before you begin trading…and yes, I know some people like trading and studying simultaneously so let’s talk brokers and minimums too.

Out of the brokers I use, E*Trade has a minimum of $500 to open account, but they’re not open to a lot of countries and I’m sorry I don’t work for them, I don’t even talk with them as most brokers hate me since I encourage people to have more patience than over-trade like brokers prefer in order to rack up big commissions.

There are new sleazy brokers that try to lure you in with no minimums and cheap or even no commissions, but as I warned here, they make money off you in other ways all the while providing you a disservice with unlimited trading, terrible executions and flawed lessons from trading that will cost you far more in the long run…and you don’t realize it until it’s too late…but they’ve become very popular by taking advantage of poor people’s naivety and cheapness.

Long story short, nobody didn’t get rich just by saving on commissions alone…I don’t mind spending a shitload on commissions if the broker can give me good service and solid borrows on penny stocks I want to short since shorting a lot of these pump and dumps is such a proven strategy.

As I said in “Warning About Using These Wrong Brokers“, I wouldn’t use an off-sore broker or any of these questionable hedge funds or prop firms as the risk of you losing your entire account without any insurance is too great.

Interactive Brokers, another broker I do use, is likely the best choice broker for most people all around the world, but their minimum is $10,000, although there’s a loophole if you’re under 26 the minimum is just $3,000.

I literally have thousands of emails from broke or near-broke people whining and complaining about these minimums and the truth of the matter is that broke or near-broke people suck to work with, they blame everything on everyone but themselves, and they’re almost all incompetent in one or several ways (hence why they’re broke or near-broke)…sorry to be brutally honest, but that’s the truth…and broke or near-broke people shouldn’t even be trading, you need to get your lives together and learn how to make a steady income in order to pay rent and for groceries etc….even the best traders know that the stock market cannot be relied upon for every day expenses and you don’t want to have to force trades in order to try to make enough money to afford next month’s rent!

So, it’s really no surprise IB has these minimums and I’m surprised they’re even willing to take on their current minimums, if I owned a broker, I’d have the minimum set at at least $30,000 like my high-net-worth broker (hit us up here if you want an intro, I don’t mention publicly because I don’t want them being overwhelmed like some small brokers have been in the past thanks to my hyena-like students) does just to not have to deal with the people who shouldn’t be trading anyway.

And no, you do not need $25,000 in order to trade stocks, that’s just the amount required by the Pattern Day Trader Rule regarding US accounts under $25,000 if you want to make more than 3 day trades per week, which you shouldn’t be doing anyway since there aren’t that many truly great plays for you if you have a small account…watch this video on ideal setups:

And, today’s video lesson I just posted HERE outlines the single most reliable intraday pattern right now which does not pop up more than 1-2x/week MAX.

If you have under $25,000 you can still hold a stock long or short every single night and even though there are added risks holding overnight, if you have the proper take on a stock like shorting the first red day on penny stock pumps like this, it can be very rewarding AND you don’t even waste one of your 3 day trades allowed per week.

Also, if you’re not based in the US the Pattern Day Trader Rule regarding accounts under $25,000 doesn’t even apply to you so don’t sweat it! I know many US people who think they should be free to trade as much as they like, and when I first started teaching I was against it too, but now after 10 years of seeing countless newbies screw up again and again and again and again and overtrade again and again and again, I’ve come to respect the the Pattern Day Trader Rule and agree with it…sorry to say.

If you want to trade a ton then go sign up here and utilize the new paper-trading feature until your heart’s content, it’s not real money, but you’ll learn a ton and hopefully get the degenerate trading trait out of you with this fake money so that you can begin your journey of controlled and disciplined trading.

And, it’s not just me who think this way, my new most popular trading challenge student also believe in patient, meticulous trading on EVERY trade:

…so 3 day trades and unlimited overnight trades per week is MORE than enough for you newbies.

So, there you have it, if you can’t meet the minimums of these brokers, save up…if you can, open an account and beware that 90%+ of traders lose so it’s your mission to study, study, study, study and study some more to up your odds of success and increase your knowledge BEFORE you risk your hard-earned money.

I’m not going to lie to you and say it’s easy to be my next millionaire student, but as more and more of my trading challenge students are proving, it is possible and the secret to our success is obsession and over-preparation.

It doesn’t matter if you start with ZERO, $1,000 or $5,000 or even $50,000, it matters far more how much you’ve learned after 6 months, 1 year, and 2 years…no matter what you start with you won’t make much in the beginning until you learn all the rules and practice good trading habits like these over and over and over and over and over again.

Practice makes perfect and remember even this now-famous penny stock trader wasn’t consistently profitable for his first 9-months so get any thoughts of immediate success out of your head entirely and commit to this as a marathon, not a sprint.

So, instead of worrying so much about account minimums, worry more about studying minimums and then think about how you can flip the scale and get to studying maximums so much so that the scale gets flipped upside down and you know so damn much, you’re not worried on ANY trade whether you’re risking $500 or $5,000 or $50,000 or $500,000.

This young man doesn’t even know how many hours/day he studies anymore, it’s become his obsession and now after a year his obsession is really beginning to pay off.

How many hours are you willing to study to be successful? How many nights out are you willing to sacrifice to become knowledgeable? How much money will you make AFTER you absorb all the knowledge there is to absorb and become truly masterful in this niche?

Posted in Basics

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67 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Eric

    There are NO minimums for success .. It takes as long or as little as it takes .. Emphasize repetition repetition repetition … Don’t try to cheat the process by slacking ,.. $200 and 1 hour a day are not going to cut it, but $2000 and 20-30 hours a week is a better start … Treat it like a job and put the time in ..

    If you noticed , Dux. Did not put a definite number on the number of hours he studied … You have to have quality hours over quantity…. 10 good hours beats 100 lazy hours any day of the week ..

    That is all .. Now go study people

  2. Sue

    None of these videos were working for me. They play for a few seconds then stop. I even went on you tube and same result. Very disappointed, I was looking forward to the material, by the titles they all seemed like they would be very educational.

  3. Slayer

    Do as Tim says and your answers will be answered.

    Wake up, smell the coffee and watch the videos.

    If you do not know the answers then you have not watched the videos and read what Tim writes. Everyone’s results are reflective of the effort they put in.

  4. Jeremy

    thanks for the post Tim, I just turned 40. Education is something I’ve learned will keep my mind young so i hope everyone studies hard and comes out on top.

  5. AJ Landegent

    2027 – I am a learner so with that said I need more $ to continue learning. My vision is that by this year I will keep learning but I will have the knowledge and skills to help others to achieve their goals. I will not be working for “The Man” but working for myself and others that want to learn.

  6. Shinee

    Hi Tim,
    I’ve been watching your videos and reading your posts last 7 months. I think trading is what I want to do next. It is very tempting!!!
    I am employed FT as portfolio admin, currently studying and saving. Hopefully 1 day we meet:), I really want to meet with you in person.

  7. Robert Basha

    Great Info Tim,
    This is a perfect place to direct new traders. Of course, hopefully they don’t already have bad habits and misconceptions about the world of stock trading. The biggest hurdle seems to be finding shares of the best short opportunities, but that challenge gives me a definite goal. With the proper education, discipline and execution of your strategy one could aim to make enough capital to join the secret broker!

  8. Ken Smith

    Very good read! It is not about the money for me it’s about being consistaint at what I do that will lead me to better things in life! I don’t have a big account. I have been trading with TOS paper as well as studying trying to get consistaint while I boost my account on TOS live once I get that 1500 amount I should be able to take what I have learned from TOS paper and apply it to the TOS live side. Thanks Tim Sykes for the motivation and all the study material you provide to us each and everyday.

  9. Noel

    Blessing Blessing! Every blog post is just soooooooo great, full of information! Thanks! Study study study, over and over and over again!👌

  10. Kenny Bailey

    Thanks Tim. Working in Iraq, I have evenings off when the market opens and that helps a TON to study and learn. Plus the DVDs, video lessons, everything. Thank you again Tim for making this possible.

  11. Jeffrey Borja

    Thanks for the “How to Grow Your Small Account Exponentially” video! The example you used – a $2,000 account – is EXACTLY what I’m starting with in my E*Trade account. Still studying my eyeballs out. Paper trading next. Then going live. Excited to be a part of The Challenge, see you in the chat room!

  12. Greg Halliwill

    Anything good in life comes from hard work. It helps you appreciate it more. Tim thanks for what you do. You are one person that I would definitely listen to. Been following you for months and no BS. Most of what you say is good life lessons. Keep going!

  13. Jo Ann

    I couldn’t have said it better myself Greg, thank you Tim for all you do!! I totally agree Tim, I’ve got a great deal of studying to do, the links on this page looks to be a great start! I also plan to take advantage of a couple of your DVD’s during your bday sale. Thx again, looking forward to the upcoming free webinar. 🙂 #KnowledgeIsPower📈

  14. King Ramza

    Thanks Tim. All your efforts are greatly appreciated. I will continue with study and hit singles until the home run comes to me.

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  16. Paul S

    Tim Sykes Rocks,

    I kick myself daily for making several dumb decisions in the past. I looked at Tim’s website in 2015 and was just blown away . “if its to good to be true it usually is” But Tim has proved that to be wrong. He is one of the few that has made millionaire students and has a huge following accompanied by positive comments and verified results.

    Here is my story so far and its not the end yet.

    It all began in 1992 when i first invested in a ASX listed company Striker Mining SKR. Was working on a offshore oil rig West Australia and had just got paid and a friend said buy some SKR, so I went to a broker (first time dealing with a man in suit) I want to buy $11,000 of SKR @.09. His reply was DON’T DO IT YOU LOOSE YOUR MONEY. I did it anyway and sold 4 months later @ .27, whoopy nice profit. So, then i was addicted , would get the news paper everymorning, draw candle charts on charting paper. (no internet then) and just look at the volume and buy. I turned that 9K eventually into 128k . One day I got a phone call from the same broker saying I should buy Equatorial Mining at .27 ,this was the first time I listened to this guy and my first BIG loss. -87,000. Ouch. Brokers SUCK. I then recovered around 700K over the next 10yrs. I was working in Cambodia a friends charity school building a new roof. No Internet, So gave my portfolio to a broker and said sell everything dec 1st 2007. He didn’t and once again lost 90% of the portfolio. Brokers SUCK, Brokers help you go Broke.

    Then I got caught up in the FX trading thing and tried that for a few yrs to no avail. It was just a big scam and very dangerous to be involved in, STAY AWAY. Now its 2015 and am looking at Tim Sykes website as well as some others not really knowing which direction from here. Haha. I will have a look at trading futures . So I enrolled in two courses one $6000 USD the other GoldenZoneTrading, Sean Kozak. $7000 USD Sean is the ultimate saleperson trading a sim account. what a joke. I realized it was a sim account after about 6 months of questioning him and noticed the plaform order tab was grey on Ninja 7, if trading live its white.. I also purchased all his software , multiple monitors (6), Falcon trading computer. Alarm number 1. Sim Trading. Alarm 2. I was having all these platform freezes, data bottlenecks. Impossible to trade with. I addressed these issues with GZT and was informed it was my computer or me. After 2yrs 6 months of complaining about computer freezes and bottlenecks to GZT it was a relief to speak with many other GZT traders encountering the same problems. Yet why did it take GZT two yrs to admit there were issues in the software code? And totally waste my time? This happened June 2017.

    Point is – if I’m following BAD information, MISINFORMATION, and people who don’t know what they’re talking about then it seriously hurts me! Instead of filling my mental reserves of good information I’m learning garbage and to add insult to injury…. Paying for it. That’s the real scam, not the money lost. And that alone equals 2yrs6 months of a wasted time..

    So here I am, back reading Tim’s sight when I should have never left. The big question is do I take the Challenge? After spending so much bad money and have basically crushed my accounts do i have the energy and finances to be the first Challenge millionaire from downunder?

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