Small Account Challenge: Turning $280 into $3,400 in 3 Days
I successfully flipped a small US stock account tenfold! In just three days, I turned a starting capital of $280 into $3,400 USD, a roughly 12x increase. To dispel any doubts about the legitimacy of these results, I'll log into my brokerage account and share my broker statement, followed by a Q&A to address common questions.
Brokerage Account and Profit Breakdown
Here's the login page for my brokerage account. I will be blurring out my name and account number for privacy. As you can see, my initial deposit was around $280. The profit earned over the three days is as follows: Day 1 - over $400, Day 2 - over $1,700, and Day 3 - approximately $1,000.
The statement details which stocks I traded and the associated fees. For instance, on a specific day, most of my profit came from VCIG and WETO. Other stocks yielded small gains or losses. Overall, the account balance reached over $3,400 after these three days of trading. These figures also include expenses such as stock borrowing fees, commissions, and ECN fees.
Trade Analysis with Tradervue
I use Tradervue, a popular real-time analysis tool for US stock traders. It connects to my brokerage account and automatically extracts my daily trading data, providing statistical analysis.
Here's a summary of my net profit and loss (P/L) for the three-day period. We can also examine my daily profit trends. For example, on the first day, I began trading around 7:00 AM. I had made around $200 after my initial trades and reached over $800 around 10:00 AM. I could not close out at that time so I traded until 12:00 PM, ending the day with over $500 in profit. After deducting stock borrowing and other fees, my net profit was over $400.
The second day resulted in over $1,700 in profit after deducting commissions and other expenses. The third day's P/L peaked around 9:00 AM with a profit of over $1,800. I concluded the day with approximately $1,000 in profit.
Q&A Session
Now, let's address some frequently asked questions.
Stocks vs. Options
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Question: Do you trade stocks or options?
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Answer: I only trade US stocks, focusing on shares rather than options.
Long vs. Short Positions
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Question: Do you go long or short?
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Answer: I utilize both strategies. However, with a smaller account balance, I primarily took long positions initially because shorting typically involves higher costs.
Why a Small Account?
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Question: Why use a small account instead of trading with more capital?
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Answer: In the past, when I shared my profits, some people claimed I could only achieve those results with a large initial investment. So, I used a small account with less than $300 to prove my trading abilities and inspire others with limited capital.
PDT Rule and Day Trading
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Question: Isn't there a $25,000 minimum balance requirement for day trading?
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Answer: That's the US stock market's PDT (Pattern Day Trader) rule. Since I use an overseas brokerage, I'm not subject to the US PDT rule. Therefore, I can day trade even with an account balance below $25,000.
Multiple Accounts and Selective Sharing
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Question: Do you open multiple small accounts and only share the profitable ones?
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Answer: As you can see from my statement, I executed over 100 trades each day. I engage in manual day trading. This high trading frequency indicates that I'm not simply betting on a single direction but relying on a consistent strategy and rhythm. My profits are built gradually through individual trades.
Future Plans
I plan to upgrade this challenge with a goal of increasing my account 100x. I want to grow my $280 to $28,000. If you're interested, follow this series.