Many people believe that trading requires a huge bankroll, but that’s simply not true. With just $100, you can start trading and gradually grow your account over time. Thanks to recent changes in the settlement period (now T+1 instead of T+2), you can trade every day with a cash account. Here’s how:
1. Trade with a Cash Account
Since the settlement period for trades has been reduced to one day, you can use a cash account to trade daily with your $100. This allows you to stay active in the market without the need for a margin account or pattern day trading restrictions. Unlike margin accounts, cash accounts ensure that you are only trading with the money you actually have, reducing the risk of overleveraging and accumulating debt.
2. Focus on Small-Cap Stocks Under $10
With a limited budget, it’s best to focus on stocks priced under $10. This way, you can buy more shares and take advantage of small price movements. Small-cap stocks often have higher volatility, creating opportunities for quick gains. Research is key—look for companies with a strong chart setup, good technical indicators, and positive news catalysts. Keep an eye on liquidity and volume so you can enter and exit trades efficiently. To ensure you’re picking the right small cap stock to trade, I recommend Trade Ideas - a scanner that tells you in real time which of these stocks is gapping up.
3. Pick a Commission-Free Broker
Since your capital is limited, avoiding commissions is crucial. Here are some popular commission-free brokers:
Webull – Commission-free trading with extended market hours and advanced charting features.
Fidelity – Offers great execution and commission-free trades with a strong research platform.
TD Ameritrade – No commissions and a variety of trading tools, including ThinkorSwim.
E*TRADE – Provides commission-free trades with excellent customer support and educational resources.
4. Use a Simple Trading Strategy
With limited funds, a smart strategy is key. Consider:
Swing Trading: Holding trades for a few days to capture market moves based on technical indicators.
Day Trading: Entering and exiting trades within the same day to minimize overnight risk. Focus on high-volume stocks and set clear stop-loss levels.
Trend Following: Identifying and trading in the direction of market trends, using moving averages and momentum indicators.
Breakout Trading: Buying stocks that break through resistance levels on high volume, signaling a potential price surge.
5. Manage Risk Like a Pro
Protect your small account by following these risk management tips:
Risk no more than 1-2% of your capital per trade to prevent large losses.
Use stop-loss orders to exit losing trades quickly and protect your capital.
Avoid emotional trading; stick to your plan and don’t chase losses.
Diversify your trades rather than putting all your capital into a single stock.
Keep a trading journal to track your trades, strategies, and lessons learned.
6. Take Advantage of Demo Accounts
Before trading real money, practice on a demo account. This helps you get comfortable with the platform and refine your strategy without financial risk. Demo trading also allows you to test different strategies and build confidence before committing real capital.
7. Follow Market Trends and News
Staying informed is crucial for making smart trading decisions. Follow financial news outlets, earnings reports, and economic indicators to anticipate market movements. Consider using platforms like Bloomberg, Yahoo Finance, and MarketWatch to stay updated on stock performance and breaking news.
8. Use Your $100 to Buy a Prop Firm Evaluation
Another great way to leverage your $100 is by using it to purchase a prop firm evaluation. Proprietary trading firms offer traders the opportunity to trade with significantly larger capital once they pass an evaluation process. One of the best options available right now is Apex Trader Funding, which provides access to funded accounts if you can prove your trading skills.
Apex Trader Funding is currently running a sale, allowing traders to get started with an evaluation for a discounted price. With my exclusive discount code BOB, you can get an even better deal. If you pass the evaluation, you’ll be able to trade with a much larger funded account, giving you more potential for profit than you would have with just your $100.
This is an excellent option for traders who have solid risk management skills and want access to more capital without putting their own money on the line.
9. Gradually Scale Up
The goal is to grow your account over time. Reinvest profits, continue learning, and maintain disciplined trading habits. Even a $100 account can turn into something bigger with patience and smart decision-making. Avoid withdrawing profits early and focus on compounding gains over time.
Final Thoughts
Starting with $100 might seem small, but with the right approach, it’s possible to build a solid foundation for trading success. Take advantage of the one-day settlement period, focus on small-cap stocks, use a commission-free broker, or consider purchasing a prop firm evaluation with Apex Trader Funding. Choose the right strategy, manage risk, and stay disciplined—your journey to profitable trading starts now!