how to trade frequently with $500?

cnon

Junior member
16 0
Hey guys;

I have an account in investopedia and alphaseal and i want to start trading with my own little money-$500;however transaction fees are so high-around $9-For example, Even if i put all my money in one stock and lets say buy 20 GE, i have to pay $18 as a total fee which is equal to 3.6% of my portfolio.How can i make profit with this crazy cost?I saw lots of people advised trading even with small money but this is the most significant issue i think.
 

Pferd

Active member
132 16
with that amount of capital you can only trade Forex mini-lots. And only the most liquid ones. But if you have a streak of bad results, which may happen, you will deplete your account rather quickly.

If you don't have the possibility of bringing more capital or new money every month, I would recommend paper trading until you save enough (a couple of thousand should be OK to start).

Otherwise you might end losing the 500,- US$ and not get anything in return in terms of experience and hours of trading. Will be a complete waste of money if then you have to stop trading real for few months.

Hope this helps.
 

Chartsy

Experienced member
1,129 82
Hey guys;

I have an account in investopedia and alphaseal and i want to start trading with my own little money-$500;however transaction fees are so high-around $9-For example, Even if i put all my money in one stock and lets say buy 20 GE, i have to pay $18 as a total fee which is equal to 3.6% of my portfolio.How can i make profit with this crazy cost?I saw lots of people advised trading even with small money but this is the most significant issue i think.
Sogo trade- $3 commissions
 

cnon

Junior member
16 0
with that amount of capital you can only trade Forex mini-lots. And only the most liquid ones. But if you have a streak of bad results, which may happen, you will deplete your account rather quickly.

If you don't have the possibility of bringing more capital or new money every month, I would recommend paper trading until you save enough (a couple of thousand should be OK to start).

Otherwise you might end losing the 500,- US$ and not get anything in return in terms of experience and hours of trading. Will be a complete waste of money if then you have to stop trading real for few months.

Hope this helps.
It clearly helps.What if i invest in a portfolio and wait the results at least one month and do this for 6 months.Then bring my tracking record to the employer.Will it work?What do you think?
 

cnon

Junior member
16 0
Sogo trade- $3 commissions
I will check it out but even $3 is also high.Buy+sell makes it $6 and it will still represents a significant percentage of my budget.
 

Pferd

Active member
132 16
It clearly helps.What if i invest in a portfolio and wait the results at least one month and do this for 6 months.Then bring my tracking record to the employer.Will it work?What do you think?
Sorry, I don't understand what you mean with a portfolio.

But in any case, if your results are positive you don't need to worry about an employer, you can trade on your own. But that (bringing record to employer) it's a completely different question and subject than the one asked at the beginning of this thread.

So, I am a little confused to say the least....:rolleyes:

What do you really want? Trade on your own or trade for a firm? If what you want is to trade for a firm that rather depends on your age and your studies. If you are under 25 and your background is in mathematics/physics you may have a chance. If not, forget it.
 

cnon

Junior member
16 0
I think everyone wants to trade for himself but most of the time capital is the main constraint.I am 26,MS Finance student and have a bachelors in Economics.Why do companies prefer physics?Math makes sense,in my opinion a good trader has to know macro economy,monetary policy,behavioral finance and able to understand financial statements vs...
 

Pferd

Active member
132 16
I think everyone wants to trade for himself but most of the time capital is the main constraint.I am 26,MS Finance student and have a bachelors in Economics.Why do companies prefer physics?Math makes sense,in my opinion a good trader has to know macro economy,monetary policy,behavioral finance and able to understand financial statements vs...
Fundamentals are less and less important these days, as most of the trading is automated, therefore -no disrespect- a background in Economics or Finance is almost of zero interest for trading firms, as nowadays there are so many people with those studies out there that they can find hundreds who will work for them for free on these subjects. They don't bring anything to trading. If ever one brilliant student appears, don't worry, the firms will find him an employ it, but we are speaking here about the top ot the top of those students. As they will say....economists are very good predicting the past, which in trading amounts to no importance.

You just need to have a look at which level let's say the Nasdaq and some of its components are today to realize how little fundamentals have to do with the actual price of a share today and therefore with trading.

Sorry to be negative.
 

cnon

Junior member
16 0
Thank you for this helpful comment.I really don't know the percentage of economics or finance guys in trading firms and i respect to algorithmic trading;however i am curious about how do they evaluate the stock whether it is under/over priced.In addition,how do they make predictions about the price in short or long term?You don't need to sell your stock in the same day,you can hold it for 3-6 months.I believe software programs can't explain all the movements in the market.
 

Pferd

Active member
132 16
Nowadays is very easy.....More QE stocks up. No QE stocks down. That's all it matters these days.....
 

George A

Active member
147 11
Hey guys;

I have an account in investopedia and alphaseal and i want to start trading with my own little money-$500;however transaction fees are so high-around $9-For example, Even if i put all my money in one stock and lets say buy 20 GE, i have to pay $18 as a total fee which is equal to 3.6% of my portfolio.How can i make profit with this crazy cost?I saw lots of people advised trading even with small money but this is the most significant issue i think.
Hi cnon,
Pferd summed it very nicely in his words .
Quote """"
with that amount of capital you can only trade Forex mini-lots. And only the most liquid ones. But if you have a streak of bad results, which may happen, you will deplete your account rather quickly.

If you don't have the possibility of bringing more capital or new money every month, I would recommend paper trading until you save enough (a couple of thousand should be OK to start).

Otherwise you might end losing the 500,- US$ and not get anything in return in terms of experience and hours of trading. Will be a complete waste of money if then you have to stop trading real for few months.

Hope this helps.

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If u have done enough studies and accumulated sufficient knowledge ,I would also suggest FOREX , then i also would HIGHLY recommend demo trading first with 1000 to 5000 dollar account , trading standard contracts ($10 per contract ) OR mini lots ($1 per mini lot ) , and put ur theories to the market , and i would NOT advise u on trading live UNTIL you can double OR triple that account , and feel u r comfortable with ur level of experience to go with ur knowledge , as one can NOT be without the other .
Wishing u all the best of luck .(y)
Cheers,
George
 

George A

Active member
147 11
Thank you for this helpful comment.I really don't know the percentage of economics or finance guys in trading firms and i respect to algorithmic trading;however i am curious about how do they evaluate the stock whether it is under/over priced.In addition,how do they make predictions about the price in short or long term?You don't need to sell your stock in the same day,you can hold it for 3-6 months.I believe software programs can't explain all the movements in the market.
Hello again cnon ,
Just reading your words above , can NOT help BUT to stick my nose in for YOUR OWN benefit , SO i hope you do NOT mind .
1 . Have you does any studies with trading ???
2 . How long have u studied for ???
3 . If you have done, have you tried to apply it to market action and see IF u have the right knowledge to be able to call turning points ????
IF you have NOT done 1 and 3 of the above ,, YOU MUST NOT trade , please , look after your money , the market is very cold blooded , and has NO feeling for anyone , and it is bigger than any tsunami you may have even seen when it start moving , so do NOT under estimate its power ad yet its gentleness ONCE you learn how to get into step with it .
If the answer to 1 and 3 is NO , and you do NOT know where to start , then i am more than happy to direct you to great studies , please feel free to private message me .and NO ,,, i am NOT a coach , and neither belong to any education program , as i am a fully self taught , but love helping .
Cheers,
George :cool:
 

George A

Active member
147 11
I think everyone wants to trade for himself but most of the time capital is the main constraint.I am 26,MS Finance student and have a bachelors in Economics.Why do companies prefer physics?Math makes sense,in my opinion a good trader has to know macro economy,monetary policy,behavioral finance and able to understand financial statements vs...
In my humble opinion , AND from my experience observing market actions vs ............... ,,,,
This market's actions (currencies , as thats what i trade and follow , hence can NOT comment about other markets ) IS mathematically calculated , AND harmonically balanced to the highest order . and far from a Sunday afternoon casual park stroll.
And , news are made up and promoted to suit the occasion of THEIR intentions .:-0
Cheers,
George
 

cnon

Junior member
16 0
First of all,thank you for your attention.Second,i have bachelors in Economics and pursuing a finance master right now.I had an experience in Forex while i was junior but unfortunately i lost my small amount of money and then i never tried it.I traded some currencies in long period,so it is meaningless to count it as a trading.To be honest,i just have an demo account in Alphaseal.com,i have been doing well(in top 50 in overall U.S.)but i just focus on the news and buy Starbucks if it rains in Brasil.I mean i don't know algorithm trading or any kind of this stuff.

I am reading some books related to behavioral finance and WSJ-Economist vs...

That's all:whistling
 

George A

Active member
147 11
First of all,thank you for your attention.Second,i have bachelors in Economics and pursuing a finance master right now.I had an experience in Forex while i was junior but unfortunately i lost my small amount of money and then i never tried it.I traded some currencies in long period,so it is meaningless to count it as a trading.To be honest,i just have an demo account in Alphaseal.com,i have been doing well(in top 50 in overall U.S.)but i just focus on the news and buy Starbucks if it rains in Brasil.I mean i don't know algorithm trading or any kind of this stuff.

I am reading some books related to behavioral finance and WSJ-Economist vs...

That's all:whistling
That is NOT a problem cnon .
Demo accounts are priceless , and they are THE best option for anyone one they are starting out , as they give a person trading real market feel without the pressure of money losses , which is the best environment to be in in the beginning till one get their knowledge level up to standard .
Anyway , IF u feel u want to learn about technical analyses , please feel free to let me know and i can help u with the direction to go .
Cheers,
George:cool:
 

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