Small Account Trading Strategy | What I Would Use

If I was back to being a beginner day trader and just getting started in the markets with a smaller trading account, I know exactly what method and strategy I would use! When you are starting your trading journey, it is completely normal to have a smaller account that you will need to grow over time. There is no shame in this at all, and in all actuality, I would argue it is a good place to start. All traders have bumps along the way, especially at the beginning, so it's better to experience those bumps with a smaller account than a huge one! The one potential problem and annoyance is the dumb Pattern Day Trader Rule ("PDT Rule"). This is a government regulation that says you are not allowed to day trade stocks as much as you want if you have less than $25,000. It's truly a ridiculous rule, but it is what it is. The good news is, if you take the proper steps (as I will show you in this video), you can give yourself a whole lot of flexibility within your trading strategy. While I can't say you are totally avoiding the PDT Rule, this strategy does allow you the opportunity to side step it a bit. When you do it the right way, you can give yourself multiple "day trades" each and every day. Let me show you one step at a time how you can accomplish this. I'm confident that you'll quickly see why this is the day trading strategy I would use with a smaller account if I had to rewind time and go back to the start!
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[@danwhitley8392]

I wish I had seen this two years ago when I started. So much in here I had to lean on my own. Everybody starting out watch this now.

[@claytrader]

Thanks Dan!

[@yellow6100]

Why not just make a "small account challenge" where you record your deposit and strategy and then how you build it up from like 100$ to 1000$ or 5000$ or something like that?

[@sadiai3144]

yes please do that!

[@achaosg]

I'm starting with 1 Thousand my self. Seems to be a good small starting account to start with if you want to avoid the PDT Rule. I would also recommend using Capital Markets Elite Group. It's an off shore broker with multiple platforms IE: Steerling Trader, Das Trader etc. Live market and Software fees are about $125 a month that gives you level 2 access. You can start with a minimum balance of $500 which is a 1:1, Anything above that is a 4:1 Margin and 2500+ is a 6:1 Margin. Per Ticket its like $5.95 Commission and of course their are SEC/ECN fees. Overall, once you break the 25k-30k Mark you can then switch to a Free Commissioned Broker. They're the only off shore broker I know of to get around the PDT rule. Honestly, us traders should get together and have a petition to get rid of the PDT Rule........ At least lower is to about 500 Minimum Account Balance.... Dumbest rule ever...................

[@claytrader]

Thanks for the suggestion.

[@yellow6100]

@@claytrader You are welcome.

[@claytrader]

@@yellow6100 cheers

[@TheMusicMaker311]

Amazing!😉 great job as always!!

[@claytrader]

Thanks

[@GregBreheimCMT]

Yes Clay! Cash acct w/ options helped me get to where I am today.

[@claytrader]

Cheers

[@Marc-fo7sl]

Maybe make a small account challenge to spice things up a bit. I know newbies like me likes to see those things.

[@claytrader]

Thanks for the suggestion!

[@oneperspective8601]

Just started doing options this week, was nervous, but I just used some simple technical analysis. Options, gone right, really builds up 💰.

[@claytrader]

Cheers

[@investing4aliving940]

Great videos Clay! Lov'n the live trade videos you do as well.

[@claytrader]

Glad you like them!

[@tnttrading7503]

Hey Cley it would be great to see also a video hot to grow a small account on US small cap stocks 5-20usd/share.. i cannot understand how to scale up a 1000 usd account and same time use a 2% risk rule... Thanks

[@claytrader]

Did you watch this video?

[@Offsetter]

Micro futures, no PDT tax advantages and 5$ a point on the /ES, 2$ a point /NQ. Tradovate is about 500$ to 600$ to get started. The Greeks make options complex for a new trader just trying to perfect a pattern. Options are good for selling puts at prices you love on stocks you like based off fundamentals like everything money or for hedging a large position. You can get good at spreads, butterflies, ladders and condors after a ton of studying and practice. Definitely not for new accounts usually.

[@claytrader]

Yup, that's why I also offer this video: claytrader.com/videos/how-to-get-started-day-trading-with-only-100-and-zero-pdt-rule/

[@Aj23london]

You should do a small account challenge

[@claytrader]

Thanks for suggestion.

[@optionsgambler-jose4499]

just soaking up the knowledge from clay everyday I think my brain is starting to swell up lol. thank you brother for the great video today. what would be your top stocks to do options with in a small account? maybe share your top picks for small accounts options trading?

[@claytrader]

You just need to get signed up for the community! You're missing out!

[@dkengland2292]

Great video. My issue is that you discuss PTD rule and then ignore it by saying you can make 5 trades. Do options not fall under 3 trades a week? Thank you.

[@claytrader]

I literally discuss all of that in the video. Did you maybe comment before watching it all?

[@dkengland2292]

@@claytrader I watched the whole thing. 3 day trades over 5 day period but then you say to buy 5 option trades.

[@claytrader]

@@dkengland2292 No, I don't say that. I use that as a random example. I'd encourage you to relisten.

[@kaosaelee8832]

Keep up the great work clay...and for the trolls and idiots that love blowing their accounts, instead of rude comments why not ask something intellectual to help yourself

[@claytrader]

Your logic is solid lol

[@unequallytwisted]

I enjoy your videos.👍 Hey youtube algorithm, this guy rocks.

[@claytrader]

Glad you like them!

[@derickbarnwell2200]

Thank you for this is perfect!

[@claytrader]

Cheers!

[@shaned7650]

Are you talking about me clay? Cuz this is me right now

[@claytrader]

I hope it helps then!

[@itsmldvn]

It’s all of us 😂

[@claytrader]

@@itsmldvn not for long though!

[@stevcass1822]

Options are wild , i had Tesla 650 lottos last week. Bought them at $198 sold them for $1000 each. Now if i wasn’t a decent trader and just held through all those gains they were eventually worth 5k each a day later. Being a decent trader of course i took the 380% gain or whatever it was, hindsight is fun though 🙃

[@claytrader]

Sounds like you are gambling more than actually trading.

[@stevcass1822]

@@claytrader no, they were lottos. Tesla chart last week was looking nice too. Nice consolidation good risk/reward. Looks good again too

[@claytrader]

@@stevcass1822 right, "lottos" would be gambling lol

[@stevcass1822]

@@claytrader yeah, it’s not something i do often. Usually about .2% of my entire account as well

[@claytrader]

@@stevcass1822 so my point stands then, in regards to those "trades", you are "gambling" not actually trading lol...

[@dlaa3832]

Great video. Very helpful.

[@claytrader]

Cheers!

[@dandelions907]

Do i need 100 shares though to buy the contracts?

[@claytrader]

No

[@homeshine6939]

HI Clay for your useful information

[@claytrader]

Glad it was helpful!

[@b0wserbear901]

I'm trying to figure out how I would be able to make 5 trades a day, with a $5000 account. You barely even mentioned the PDT rule. Does that not apply to options on a cash account?

[@claytrader]

I'm guessing you commented before even watching the video?

[@b0wserbear901]

@@claytrader I'm guessing you responded before even reading the question lol. I get it, you get a lot of jerk's in your comment section. But this was a legit question. I find your videos very helpful and watch a lot of them. Perhaps I should've rewatched it, I might have misunderstood.

[@b0wserbear901]

@ClayTrader I guess I did misunderstand. I do appreciate you taking the time to explain it again. Thank you.

[@claytrader]

@@b0wserbear901 cheers

[@sicZ32]

solid video. thanks again bro

[@claytrader]

Thanks for watching.

[@JeKMout]

What's the best broker for cash account option trading?

[@claytrader]

This: claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/

[@marcwatson819]

Hey Clay. 1 question. What if i don't want to risk so much per trade. Doesn't that go against a good r/r ratio? Please explain. Thanks.

[@claytrader]

Make it whatever you feel comfortable with. Only you can answer that question.

[@TheRealdeel73]

Yeah I have about $1000 to work with. Might have to be very small amounts if I'm gonna go the options route.

[@claytrader]

Or you can just pick up a part time job and get more than $1,000.....

[@TheRealdeel73]

@@claytrader oh really??

[@claytrader]

@@TheRealdeel73 yeah, you seem to not realize that is an option...

[@TheRealdeel73]

@@claytrader oh yeah I do. Just not going to be able to do that right now. So that's why I'm here trying to research.

[@claytrader]

@@TheRealdeel73 why can't you right now? everyone is hiring...

[@johngrier5949]

I need to learn how to sell shares of stocks I don’t own and I didn’t borrow.. this would be very lucrative like how citadel does it

[@claytrader]

Step 1 would be to take off your tinfoil hat.

[@johngrier5949]

@@claytrader gotcha… I usually wear my joe and the ho must go hat

[@claytrader]

@@johngrier5949 must be tinfoil underwear then

[@sadiai3144]

hey can you make a demo account on think or swim n show us how to options trade because TOS level 2 looks nothing like your lightspeed one and its quite confusing, i think i would do better on your platform but i dont have the 25k needed for it so im stuck with TOS.

[@claytrader]

Thanks for suggestion! Those videos already all exist here claytrader.com/takecontrol

[@sadiai3144]

@@claytrader are you planning to do a sale on your course anytime soon prefferbly around 500? i dont have that kind of money and the some that i have saved will be using for capital.

[@claytrader]

@@sadiai3144 you could do this: claytrader.com/takecontrol/trading-freedom-pathway-how-it-works/

[@Vive428]

Does a one day settlement mean 24 hours or just the next day at 12 am?

[@claytrader]

The next day the market is open.

[@Vive428]

@@claytrader Thank you 😊

[@claytrader]

@@Vive428 you're welcome

[@CR250RidR]

Ugh… I’ve gotten my ass handed doing options multiple times

[@claytrader]

You're using the wrong strategy then.

[@Alexthepony]

If you are so busy trading stocks, why sell a course and consistently post content to promote it.

[@claytrader]

My answer: claytrader.com/videos/the-mindset-of-poor-people-how-to-build-wealth/

[@Alexthepony]

@@claytrader most of your money comes selling courses and making youtube videos. your not a skilled trader which is why little of your money is coming from that.

[@claytrader]

@@Alexthepony correct. As I've said many times, my biggest stream of income is via my real estate portfolio and claytrader.com business. I guess that's how you define "skilled".... if "skilled" in your mind is making $100,000 per month, then you are correct, I'm not "skilled". Anyways though, thanks for watching and I hope you get into more of a wealth building mindset than your current one that seems to have you offended that someone is choosing to build multiple streams of income.

[@Alexthepony]

@@claytrader you just sent me that message during critical hours of the market open. Wouldn't you rather spend that time trading than reading your comments?

[@claytrader]

@@Alexthepony "hours"? I was done within the first hour and made $430. I'm plenty happy with that. Cheers.

[@guillermo2708]

If someone has a small account means that is new in this business so that person doesn't have much knowledge trading stocks and what to talk about options 👎

[@claytrader]

If someone is "new", they should be learning first. i agree lol

[@PEELAWEE]

The title is completely wrong It’s should be how to waste 15 min of your life

[@claytrader]

Sorry to disappoint.