How much money do I need to start trading?

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Old Dec 2, 2008, 10:30pm   #1
 
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How much money do I need to start trading?

First to say, I am a total beginner watching Online Trading Academy DVDs to get educated and inspired. What is the minimum amount of money to start day trading? I live in a poor country so 200-300 $ a month in profit would be great to me!
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Old Dec 2, 2008, 10:52pm   #2
 
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Find a demo platform to test your strategy out, first.
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Old Dec 2, 2008, 11:00pm   #3
 
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Well, assuming you are a good trader (which you won't be as a beginner) and also assuming that you get a return of about 50% a year on your account (a very generous assumption)... then you need a starting capital of around $10,000 to get a $250 a month return. Plus extra if you want to increase your capital as well (a necessity unless your capital is already massive).

More realistically... the starting sum depends entirely on what you are trading. Not sure if you can spreadbet in your country, but you can start spreadbetting with around $200, although i'd expect this to be wiped out fairly quick as a beginner. You can also trade FX with these kind of amounts. You won't get the kind of money you are after from this though! Not for a long time, and that's assuming you are good! In your first year you should be aiming to just not lose too much. At the beginning, survival is the key. In order to survive you need to be able to withstand a string of losses. Hence, although you can start with $200, i'd recommend at least $1500. And take that as a training fee- don't expect to make money.

From my experience, when i did start making money, it was inconsistent and in small amounts. One month i might make around $100, the next month i might lose $75, month after i might make $500. Over time this has evened out some but inconsistency still remains to a certain extent. This is not like a job where you sit down and work 8 hours and collect a regular salary. I can't stress this enough.
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Old Dec 3, 2008, 12:28am   #4
 
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ciguli started this thread I live in eastern european country and plan to trade on US markets (NASDAQ) through online platform (Think or Swim, AmeriTRade). I can only invest 2000-3000 $.
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Old Dec 3, 2008, 10:52am   #5
 
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That's not a bad sum to start with. You say "invest", I say "risk".
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Old Dec 3, 2008, 11:05am   #6
 
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Quote:
Originally Posted by shadowninja View Post
Find a demo platform to test your strategy out, first.
Agree entirely.

Some people argue that this won't give you realistic "psychological" exposure - and that may well be right for some individuals. However, I've found demo trading to be quite realistic in this respect and it's helped me greatly in developing a disciplined mental approach. It certainly got me properly trained in "cutting losses" which demo account showed as one of my weak areas.

IMHO If you can't crack it on a demo then you're not ready for real (and if you are ok on demo it doesn't necessarily mean you'll be ok on real !)

Good luck (though a disciplined trader doesn't rely on that).
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Old Dec 3, 2008, 11:07am   #7
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Originally Posted by ciguli View Post
First to say, I am a total beginner watching Online Trading Academy DVDs to get educated and inspired. What is the minimum amount of money to start day trading? I live in a poor country so 200-300 $ a month in profit would be great to me!
lots of newbie breaking this rule, but i still saying this anyway.

do not put any real money until you can profit consistently for 3 months from demo..
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Old Dec 3, 2008, 11:26am   #8
 
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ciguli started this thread Ok.. people.. thank you!

I know I am still not ready to trade for real and I know there is a long and painful learning process. I am ready to spend years training my trading skills and to risk all of my trading money.

I just want to know if 2000 - 3000 $ money is enough to start trading online? This is the maximum amount of money I am able to put down to trading. And also, I am ready to possibly lose all this and not to be dissapointed. I look at this as my scholarship.
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