$2000 - what to look for?

[wally_]

Quote from traderNik:



hi dottom

Yes, IMHO it really is. Overwhelmingly unlikely.

Have you ever heard about AIM by Robert Lichello. My friend used it when he started trading. He made money even during the big decline of 2001-2002 being always long. Used properly will help you make money. Most people here talk about probabilities. BIG WORD that could scare everyone. Ask them what they know about money management schemes. Try this link to get familiar with AIM: http://www.aim-users.com/

Of course, you have to be very disciplined in both your strategy and money management. Otherwise you will probably not succeed even with $20,000.

 

[dottom]

Quote from traderNik:

Yes, IMHO it really is. Overwhelmingly unlikely. Just ask a discount broker. Out of 20 people who try, how many do you think are still trading after 6 months? I mean still in the game, not up $400.

About the same % as those with $20k who will blow out or hit a drawdown and give up.

As I said, it's all about risk and expectations. If the original poster is only looking to earn 15-20% on $2k (i.e. not looking to make a living), I think this is more than feasible.

In fact, many people who know NOTHING about day trading will make 15-20% on the $2000 they just plunk into a mutual fund or their 401k.

My point is to expect to earn $400 from $2000 account is not at all unreasonable. Just keep his costs at zero and learn some sound strategies, it can be done.

 

[FanOfFridays]

dottom

"Just keep his costs at zero and learn some sound strategies, it can be done"

Agreed. The costs at zero part, though... very tough. There is a certain cost associated with learning, right?

Your point about 20k+ beginners blowing out is well taken. I can't imagine that the statistics for 20k+ beginner blowouts is significantly lower than those for 2k beginners. But I bet it's slightly lower. I guess I would prefer that extra edge, if there's a reasonable possibility that you can get it happening.

I wear seat belts for the same reason.

But if I had no seat belts in my car, would that keep me from driving? No way

 

[freealways]

ChildsPlay you said : "Hello, looking to get started in trading"

You haven't told us whether you have done any studying, whether you own a software package and/or books, whether you have had a 'paper' test drive as yet.

Getting to know what is going on comes before putting your money on the line.

I am sure that if you need some advice or suggestions in the preliminary area there will be some good souls who would be happy to oblige (after all it IS X-mas today


Jack

 

[harrytrader]

With so low capital avoid trading in traditional futures market. You can try spread and options dealers (for example see the banner I have on my site) but if you are inexperimented you could lose your money as well. The base management rule is to risk less than 2% of your capital. With 2000$ you can then risk up to 40$ on each bet. You can do that with spread and option dealers without being annoyed by daytrading pattern limitation for capital under 25000$.

Quote from ChildsPlay:

Hello, looking to get started in trading. Looking for for short term right now over long term - but my budget is limited to about $2000, when I say short term im talking less then a months time. Im not really looking to make a fortune, just looking to get my feet wet so to speak.

Any words of advice? Any online companies that can handle this (I know some have large minimums) - give me your thoughts, im all ears. Thanks in advance.

 

[Monsoon]

PDT and futures?

 

[Miki]

The most important thing for the (under funded or not) budding trader is to remove the positive expectancy from your trading – kiss your money goodbye as soon as you place it with your chosen broker.

Don’t think of trading in terms of winning and losing.

Think of it in terms of: How much fun can buy for my money elsewhere?

Pretty soon you realise that the entertainment value you get from trading by far outlasts the one from any holiday you can think of.

At the same time, think of the myriad of emotions you will go through and the sheer pleasure of being able to rub shoulders with some of the greatest traders on the world.

The money, you will inevitable lose, pays for the privilege of: learning (about yourself as well as the business of trading) and having the opportunity to do so much with so little.

Losing little money and gaining so much experience is more that a fair deal!

So, lay you fears aside and take a plunge – its only money – there is much more to life than that.