So, You Wanna Be a Day Trader? Here’s What No One Told Me (Until It Was Too Late)
- Obi Agu
- Jun 26
- 5 min read
Day trading. It sounds glamorous, doesn’t it? Sitting in your pajamas, clicking a few buttons, and making hundreds or maybe even thousands of dollars before lunch. No boss. No commute. Just you, your screen, and the sweet sound of profits rolling in. At least, that’s the dream they sell you on YouTube.
But let me tell you what really happens when you start day trading, especially if you’re starting with just $100. Spoiler alert: it’s not all green candles and early retirement.
My First $100 and a Dream
I still remember the moment I decided to try day trading. I needed money for my bills, kids, and to combat the rising cost of living due to the glorious consequence that is inflation. I had stumbled across a few videos of people flipping stocks like pancakes, showing off their accounts with five-digit gains. "You can start with just $100!" they said.
So, I did.
I deposited $100 into my brokerage account and thought, "This is it. This is how I change my life."
The first week, I made $8. I was thrilled.
The second week, I lost $27.
By week three, my account had dipped to $53. It hit me hard not because of the money, but because I realized how little I understood about what I was doing.
The Loss Potential is Real (and Often Understated)
Here’s something nobody tells you: You will lose money. It’s not an "if" but a "when" and "how much."
Day trading is not gambling, but it can feel like it when you’re unprepared. I had no strategy, no risk management, and no clue what a support level was.
Let me break it down for you:
If you’re trading stocks with low volume, the price can swing wildly.
If you don’t use stop-losses, you’re exposing yourself to massive losses.
If you chase a stock because it’s trending on Twitter, you’re likely the last to the party.
Losses add up fast, especially when you’re trying to "make back" what you lost. That mindset? It’s dangerous.
Research, Research, and More Research
I used to think research meant glancing at the company’s website and reading a couple of headlines. I was wrong.
Serious day traders spend hours each day doing research before they ever place a trade. That includes:
Pre-market scans for volume movers
Technical analysis on candlestick charts
Monitoring news sources for catalysts
Checking earnings calendars
Following sector trends
If you think you can make money day trading with a "gut feeling," you’re going to be very disappointed.
What Is a Pattern Day Trader (and Why Should You Care)?
In the U.S., if you make four or more-day trades within five business days using a margin account and those trades make up more than 6% of your total trading activity, you are flagged as a Pattern Day Trader (PDT).
The result?
You need to maintain a minimum $25,000 account balance or your account can be restricted.
If you’re trading with just $100, you’re using a cash account to avoid PDT rules. This means you have to wait for your funds to settle before trading again (usually 2 business days). It slows you down, but it also forces discipline, caution, and emotional control.
Choosing a Brokerage - Fees & Functionality
There are a LOT of brokerages out there. Not all are created equal for day traders, especially if you’re starting small. Here’s a breakdown:
1. Webull
Zero commission
Excellent charts
Paper trading available
PDT rules apply
2. Robinhood
Easy UI
Commission-free
Not ideal for serious charting or fast execution
3. TD Ameritrade (Thinkorswim)
Professional platform
Great for technical analysis
Zero commissions
PDT rules apply
4. E*TRADE
Robust tools
Zero commissions
PDT rules apply
5. TradeZero
Good for short selling
Some fees may apply
Offers offshore version for non-PDT restrictions
6. Interactive Brokers
Advanced tools
Low fees, but not zero
Ideal for experienced traders
My recommendation for beginners? Webull or TD Ameritrade. Although not listed, I preferred using Fidelity as a starter because of their restrictions because it protected me.
Scanners - Keep Your Eyes on the Market
A good scanner helps you find potential trades by filtering stocks based on volume, price, news, float, and more.
Here are some types:
Pre-market Gappers: Stocks moving on volume before the market opens
High of Day Momentum: Stocks breaking their daily highs
Volume Spike Scanners: Unusual volume alerts
Low Float Movers: Stocks with small float that move quickly
Popular scanners include:
Trade Ideas (Paid, powerful)
Finviz (Free and paid options)
Webull Screener (Free)
Benzinga Pro (News + scanner)
If you’re trading with $100, stick to free scanners or those integrated into your broker.
Understanding Candlestick Charts
Candlesticks are the language of the market. Learn it.
Here are a few basic patterns:
Doji: Market indecision
Hammer: Reversal signal after a downtrend
Shooting Star: Reversal after an uptrend
Engulfing: Strong reversal indicator
Combine these with volume and support/resistance zones to make informed entries.
Also, study:
VWAP: Volume-weighted average price
EMA/SMA: Moving averages
MACD, RSI: Momentum indicators
Practice reading charts every day. Screenshot setups. Annotate what you see.
The Mental Game is Everything
More than the strategies or indicators, your mindset determines your success.
You must:
Stay calm under pressure
Accept small losses without emotional trading
Avoid revenge trading
Be patient
Stay consistent with your rules
If you can’t handle losing $20 without spiraling, you’re not ready to trade with $200.
Why I Wrote How to Start Day Trading with Just $100
Everything I learned, I learned the hard way. I lost money, time, and confidence. But eventually, I built a system that worked for me.
That’s why I wrote my book, How to Start Day Trading with Just $100. I wanted to create a real, honest guide for people like me: ambitious, curious, and not rich.
In this book, you’ll learn:
How to pick the right stocks
The psychology of day traders
How to set up a simple yet effective strategy
Risk management techniques
Chart reading basics
Common pitfalls to avoid
Whether you’re brand new or struggling to find consistency, this book is your shortcut to the lessons that took me months to learn.
Get Your Copy Today
Grab the Kindle or paperback version of How to Start Day Trading with Just $100 by Obiamaka Ugwumba on Amazon:
Or get the instant download via Payhip here:
Start small.
Learn smart.
Trade with purpose.
You don’t need a fortune to begin.
You just need the right mindset, tools, and knowledge.
I believe in you.
Let’s build your trading journey one candlestick at a time.
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