How Much Money Does a Trader Need To Start Trading?

This is a discussion on How Much Money Does a Trader Need To Start Trading? within the New to Trade2Win forums, part of the Reception category; I aim to make 20-30% a year, whilst aiming to keep drawdown below 20%. I could of course shoot for ...

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Old Nov 9, 2010, 10:11am   #17
Joined Jan 2009
Re: How Much Money Does a Trader Need to Start Trading?

I aim to make 20-30% a year, whilst aiming to keep drawdown below 20%. I could of course shoot for a much higher profit "target", but I'm doubtful of my ability to handle the increased drawdown that this would entail.

Last edited by timsk; Dec 6, 2010 at 3:24pm. Reason: Housekeeping
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Old Nov 15, 2010, 7:56pm   #18
 
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re: How Much Money Does a Trader Need To Start Trading?

I started at a prop company that allowed me for 1 to 60 and then 1 to 100 leverage, the minimum was $2000.00 day trading equities. i have not 9 thousand with them and i just put a side a year of my mortgage with the rest.

Trading US equities.

Trading i think is the only profession where you can make this kind a moves, the overhead is practicable $0 and is all about you, not have to deal with employees or litigations or advertisement.

It is possible!, what i did not mention above is that i spend the first month watching at the real time data...... not a single trade in the first month. The prop allow me that crazy leverage which also was the reason of my success. I need to thank ritzy capital. But guys if this is what you love, you may suffer at the beginning but it is worth it!!!!

The freedom that i gave to my family is amazing!! and not better time now, that i have a new born on the way. 2010 ROCKS!!!!
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Old Dec 12, 2010, 3:48pm   #19
 
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re: How Much Money Does a Trader Need To Start Trading?

I still did not see a clear answer to the question in this topic "How much money do you need to start daytading" And by starting daytrading I mean quitting your job & live off daytrading alone as your sole income.

By this standard, I would think I would need about 300.000 Euro to do it. Making a 10% net annual return would result in 30.000 Euro which is about my net annual income from my current employer, including pension, holiday pay, profit sharing benefits and tax returns.

What do you guys think? Is this a realistic figure? Looking forward to reactions from people who are actually trading for a living themselves.
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Old Dec 12, 2010, 9:50pm   #20
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re: How Much Money Does a Trader Need To Start Trading?

Here's a question, say you have a very small account and double it in several months, then double it again in several month, then again...you see where I'm going with this obviously...

If you can double 1000 why cant you double 100K? Is it psychology? Does the greater amount of money cause fear/greed to make you stray from your rules? If you have a winning edge shouldn't that pay out no matter how much you trade with? And if it is strictly a function of psychology wouldnt it be worth it to invest some of the earning from the system into some form or high level coaching or education?
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Old Dec 13, 2010, 10:37am   #21
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re: How Much Money Does a Trader Need To Start Trading?

Quote:
Originally Posted by Willem30m View Post
I still did not see a clear answer to the question in this topic "How much money do you need to start daytading" And by starting daytrading I mean quitting your job & live off daytrading alone as your sole income.

By this standard, I would think I would need about 300.000 Euro to do it. Making a 10% net annual return would result in 30.000 Euro which is about my net annual income from my current employer, including pension, holiday pay, profit sharing benefits and tax returns.

What do you guys think? Is this a realistic figure? Looking forward to reactions from people who are actually trading for a living themselves.
Hi Willem,
Welcome to T2W.
Please see post #2 the 'Long Answer' - as it specifically answers this very question in considerable detail. In a nutshell, IF your trading results show a return of 10% - and you require Euros 30k p/a to live off - then you're correct in thinking you'll need an account funded to the tune of Euros 300k.
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Old Dec 16, 2010, 2:00pm   #22
 
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re: How Much Money Does a Trader Need To Start Trading?

My point:

Nobody will tell how much you can use in trading except yourself. Be fearless and face your as a trader biggest nightmare - YOU LOSE ALL! So what you will do what will feel, what you will tell your friend and wife! With what amount you will be able to say : Not a big deal! That is your amount you can start trading. It is different for everyone and not always depend from your bank account statements.

Emilio
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Old Dec 20, 2010, 4:09am   #23
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re: How Much Money Does a Trader Need To Start Trading?

the advices are very important but i think trade is not a easy job on the contrary it is really very hard so before you start you must do many preparation in advance such as Preparing long-term work .it is not only physically but mentally
hope everyone can do it well
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Old Dec 22, 2010, 4:25pm   #24
 
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Re: How Much Money Does a Trader Need to Start Trading?

Quote:
Originally Posted by meanreversion View Post
I aim to make 20-30% a year, whilst aiming to keep drawdown below 20%. I could of course shoot for a much higher profit "target", but I'm doubtful of my ability to handle the increased drawdown that this would entail.
This is right point! trader can handle any profit, drawdown is the limit for trader!
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