Small Account Day Trading
A small account in the trading environment is considered as an account managing very less capital as compared to other large professional trading accounts. It is a type of an account, wherein the capital can still be used by a trader for conducting day trading.
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It is quite obvious in the industry that not every trader can afford a large account. Most people in the world don’t have the financial capacity to raise enough money for a large account. Therefore, the majority of traders would have to rely on small account day trading.
It’s not easy with a small trading account
Even if your trading account is a small funded account, managing a small account is not a walk in the park. Small day trading accounts come with quite a few limitations apart from the lower capital availability.
The first limitation is the selective number of trades. Since there is an inherent risk involved in conducting any day trade, a small account in day trading would only provide a very limited number of trades for a trader due to small capital and commission or fees.
For example, if a small account on a day trading platform charges a flat-fee or commission of $5 per trade, then $10 are already blocked for the trader, taking 2% of a $500 account, for instance per each buy-sell order.
The second challenge is risk coverage. Large accounts have enough capital to cover a losing trade with a chance of booking profits to cover the loss in future trades. However, with small accounts in day trading, a trader does not have enough cushions against trade mistakes.
The third and equally important limitation to review for small account day trading is the psychological effects it has on the trader. When a trader knows he or she can afford to lose only a single trade before they lose enough money to convert their account as untradeable, the amount of stress it builds on trader is quite immense.
However, no matter the challenges, if a trader wants to become successful, the first key to managing a small account in day trading is control! The first thing a trader should learn is to avoid going in too early in the game.
For traders to be successful on any small account on a day trading platform, they should be selective with the trades, evaluate good risk-rewards combination and follow an utter disciplined approach in every trade.
Tradenet’s Education Packages
With Tradenet, students have a variety of programs and courses to choose from, some offering the student eligibility to apply for funded accounts with investment firms.
The ‘Intro Program’ offered by Tradenet enables the student eligible to apply to a $14,000, in a funded trading account with a maximum drawdown of $700. Apart from the student being offered to receive 70% of the net profits they generate, the course features a self-study course, live day trading chat room, trading book, and demo trading account, in addition to many other perks.
The ‘Student Program’ program is designed for a more advanced traders, compared to ones enrolling for Intro Program. The program offers an opportunity for a trader as he becomes eligible to apply to a $80,000 funded trading account with a maximum drawdown of $4,000. The program also offers a trader to receive 75% of his or her net profits. Apart from all the features of Intro Program, additional features of this course include one month of mentorship session and three months of star trader course.
The ‘Expert Program’ program is for the aspiring traders who want to start building strategies around day trading goals. The program offers an opportunity for a trader as he becomes eligible to apply to a $160,000 funded trading account with a maximum drawdown of $8,000, with the opportunity for the trader to receive 80% of net profits. An additional feature offered on this program three months of Forex trader course.
The ‘Pro Program’ course offers all the tools which a professional day trader requires to plan and execute successful day trading strategies. The program offers an opportunity for a trader as he becomes eligible to apply to a $240,000 funded trading account with a maximum drawdown of $12,000, with the opportunity for the trader to receive 85% of net profits. Apart from all the benefits of Expert Program, it also offers a six month long top trader course.
The Bottom Line
For any trader looking for small account day trading, Tradenet provides a complete package not only in terms of quality learning courses and content but also in terms of the eligibility to apply to funded accounts.