How Much Money Does a Trader Need To Start Trading?

TheLastBear · Apr 2, 2013, 1:55am

Quote:

Originally Posted by the hare

if the U.S. Securities and Exchange Commission says you need a minimum of $25,000 in order to executes 4 (or more) day trades in 5 business days then that's what you need. Try opening an account and exceeding the limit and see where it gets you !

Not everything is under your control. Similarly, if your MM rules tell you to open 1.27 lots, but if your broker only allows you to open 1 lot, or 2 lots, then you cant follow your strategy if you really want to trade with that broker, unless you increase your deposit by a factor of 100, and trade 127 lots, or don't follow your strategy and face the consequences.

Fair enough, but that is one reason traders should not trade within the US as such limitations are simply ridiculous. I have long moved my accounts offshore and I know that is an entire new debate. Those who don't mind the U.S. regulatory system have no reason to relocate.

I would recommend to anyone to chose a broker where the trader can execute the desired trading strategy rather than be limited to what is offered or forced by the regulatory system to change the strategy.

For me it boils down to strategy, but in the end it is an individual decision and as long as the trader is happy with what is being offered I assume it is all good.

GTOptions · Apr 2, 2013, 3:25am

You should open an emblematic account with at least $10,000 if you are short-term trading outside the US (each exchange may have dissimilar necessities). With smaller accounts than this, fees can happen to a very large difficulty to conquer.

Scalping · Apr 7, 2013, 2:31pm

Best answer would be to know when to cut your losses in any open trade.

brettly · Apr 9, 2013, 5:29pm

Been trading on a demo account for only 2 weeks with very small amounts. Looking to start with real money, so just reading through this thread.. $1000 start would be the minimum? and 2-5% trades (20-50$)? Currently using Plus500 and no fees (or barely)

malaguti · Apr 9, 2013, 5:39pm

Quote:

Originally Posted by brettly

Been trading on a demo account for only 2 weeks with very small amounts. Looking to start with real money, so just reading through this thread.. $1000 start would be the minimum? and 2-5% trades (20-50$)? Currently using Plus500 and no fees (or barely)

I'd say wait a bit longer on your demo, if you are still positive after another month or two then you might have something. Dont rushwith your real money, markets will always be there tomorrow. But 1000 is a good amount. Thats how I started...after I had a good strategy that is

brettly · Apr 9, 2013, 6:49pm

Quote:

Originally Posted by malaguti

I'd say wait a bit longer on your demo, if you are still positive after another month or two then you might have something. Dont rushwith your real money, markets will always be there tomorrow. But 1000 is a good amount. Thats how I started...after I had a good strategy that is

Yea malaguti.. i have every intention of staying with the demo for 2-3 months at least. Have made a few losses and gains (minor) and trying to act with the vitual money (25,000) as being only 1000

. Moreso trying to see which forex and shares im interested in working with, and what their pattern of highs and lows is doing over time. It can be volatile and guess work ive noticed but you have to follow and understand some patterns.

TheLastBear · Apr 10, 2013, 11:00am

Quote:

Originally Posted by brettly

Yea malaguti.. i have every intention of staying with the demo for 2-3 months at least. Have made a few losses and gains (minor) and trying to act with the vitual money (25,000) as being only 1000

. Moreso trying to see which forex and shares im interested in working with, and what their pattern of highs and lows is doing over time. It can be volatile and guess work ive noticed but you have to follow and understand some patterns.

I just hope you wont fall into the same pattern as most who think they can actually learn how to trade in a demo account. They do so good and when they go live they go bust as a demo account will not teach you how to trade.

brettly · Apr 11, 2013, 5:09am

Quote:

Originally Posted by TheLastBear

I just hope you wont fall into the same pattern as most who think they can actually learn how to trade in a demo account. They do so good and when they go live they go bust as a demo account will not teach you how to trade.

So a real account will?

Apr 2, 2013, 3:25am	#58
GTOptions Rookie Member Member Since Feb 2013 5 Posts	Re: How Much Money Does a Trader Need To Start Trading? You should open an emblematic account with at least $10,000 if you are short-term trading outside the US (each exchange may have dissimilar necessities). With smaller accounts than this, fees can happen to a very large difficulty to conquer.

Apr 7, 2013, 2:31pm	#59
Scalping Rookie Member Member Since Apr 2013 10 Posts	Re: How Much Money Does a Trader Need To Start Trading? Best answer would be to know when to cut your losses in any open trade.

Apr 9, 2013, 5:29pm	#60
brettly Rookie Member Member Since Apr 2013 10 Posts	Re: How Much Money Does a Trader Need To Start Trading? Been trading on a demo account for only 2 weeks with very small amounts. Looking to start with real money, so just reading through this thread.. $1000 start would be the minimum? and 2-5% trades (20-50$)? Currently using Plus500 and no fees (or barely)

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