how to grow a small account?

Author

Pete Tan
January 06, 2026

In partnership with

I get this question in my inbox at least once a day: "Pete, how do I actually grow a small account without blowing it up?"

Most people think the answer is finding a "penny stock" that goes to the moon. But that isn't investing; it’s gambling. If you want to build a six-figure account and actually keep it, you need a system that scales as your balance grows.

Here is the exact 4-phase roadmap I used when I first started to take an account from $5K to $100K in about 2 years.

Phase 1: The Foundation ($5K → $15K) 🧱

  • Strategy: Sell Credit Spreads (Target: 10% Monthly)

  • The Logic: When your account is small, you need high-probability wins. Spreads allow you to be "wrong" on the exact price movement but still collect premium as time passes.

Phase 2: The Income Engine ($15K → $30K) ⚙️

  • Strategy: Cash-Secured Puts (Target: 5% Monthly)

  • The Logic: Now that you have a cushion, you stop "betting" and start acting like the house. You only sell puts on high-quality stocks you’d be happy to own.

Phase 3: The Multiplier ($30K → $60K) 📈

  • Strategy: Add Covered Calls (The Wheel) (Target: 8% Monthly)

  • The Logic: This is where compounding gets aggressive. You are collecting rent on the way down and the way up. You’re playing both sides of the market.

Phase 4: The Wealth Accelerator ($60K → $100K) 🚀

  • Strategy: Buy LEAPs on major dips (Target: 12% Monthly)

  • The Logic: You’ve earned the right to use leverage. By buying deep-in-the-money, long-term options, you control 100 shares of a great company for a fraction of the cost.

The Secret? Don’t skip the steps.

Most traders fail because they try to execute Phase 4 (buying options) with a Phase 1 account size. They take too much risk before they’ve mastered the mechanics. Master one phase before you move to the next.

Ready to execute this plan for 2026?

If you want the specific tickers I use for these spreads, the exact strikes I'm selling, and the live guidance to navigate these phases safely, come join us in Stock Market Genius (SMG).

Here is one of our members who hit 81% profit in 2025!

To help you get started, I’m running a $150 off promo for the month of January. You can lock in your annual membership for $609 (usually $759) and get access to our 2026 trade alerts, the deep-dive research, and our private community.

Let’s build that account together.

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

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The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.