The technically correct answer to that is probably no different to a large account! But I know that the reality is not so simple.
For one, if you have a small account, you're probably also working full time. There is also the issue around the 'day trading restriction' on accounts below $25,000 (even if you're not actually day trading).
I think both of those are best circumvented by trading less and on longer time frames. And as Qullamaggie says, the longer the time frame, the more fundamentals matter - so I would look to CAN SLIM for that. Particularly the principles behind it: money flows to those stocks where good earnings are expected.
Thank you for this :)
My pleasure! I enjoyed putting this one together :)
Thank you Kay!
Do you have any advice about how to trade small account? “Micro account”- QQ
The technically correct answer to that is probably no different to a large account! But I know that the reality is not so simple.
For one, if you have a small account, you're probably also working full time. There is also the issue around the 'day trading restriction' on accounts below $25,000 (even if you're not actually day trading).
I think both of those are best circumvented by trading less and on longer time frames. And as Qullamaggie says, the longer the time frame, the more fundamentals matter - so I would look to CAN SLIM for that. Particularly the principles behind it: money flows to those stocks where good earnings are expected.
EPs are also a good option - requires very little screen time, and also offers good scope for longer holding periods. Also see: https://tradingresourcehub.substack.com/p/qullamaggie-stream-notes-18-may-2023
Hope that helps a bit?