How much capital do you typically need as a trader to live on your own?
- Thread starter Lethn
- Start date
I started with £15k in my trading account and 6 months living expenses set aside. It was tough when my account dropped to £10k after 3months, but I was able to scrape through somehow.
When it really matters you learn how to manage risk under pressure...or not...
I figured that if I started with £100k+ I would have more to lose...what if I dropped £50k, would I lose my nerve?
But more than that, I just hated my job and couldn't wait till I reached £100k savings
However, in many ways starting with smaller capital and reaching £100k is better than starting with £100k because you also have some proof that what you are doing is working once you have reached £100k...psychologically you are better shape, knowing that you can always make money from a low starting point.
If you had £100k but no experience probably better to trade for a couple of months with only a fraction of that.
When it really matters you learn how to manage risk under pressure...or not...
I figured that if I started with £100k+ I would have more to lose...what if I dropped £50k, would I lose my nerve?
But more than that, I just hated my job and couldn't wait till I reached £100k savings
However, in many ways starting with smaller capital and reaching £100k is better than starting with £100k because you also have some proof that what you are doing is working once you have reached £100k...psychologically you are better shape, knowing that you can always make money from a low starting point.
If you had £100k but no experience probably better to trade for a couple of months with only a fraction of that.
yeah if you lived with your parents...
I shared a flat with 2 people actually.
Quote from sprinter:
under a bridge with restaurant dumpsters close by for meals?
I guess ghosts don't need much cash anyway.
No, just a bit of simple economizing. And I had a commute back then, nowadays you can work from home. Just do basics like:
1. Spend zero on booze, cigarettes, restaurants, snacks/sweets/candy etc.
2. Get very cheap accommodation - house-sitters (people employed to keep rich people's empty houses from squatting/burglary/vandalism) can live somewhere for free or even get paid a bit for it. House-sharing in acceptable areas (working class non-ghetto) is cheap.
3. Don't own a car.
4. Eat cheap but not unhealthy food e.g. fruit, bread, cereals, milk, canned food, pasta, vegetables etc.
Your only necessities are a computer, internet, food, water, electricity, heating, accommodation. Costs today for that:
Computer: 100-200 second hand
Internet: 10 per month
Food: 40 per week
Water: 40 per month
Electricity: 40 per month
Heating: 40 per month
Accommodation: 50 per week (can easily be lower with some creativity)
Total cost = around 6-6.5k. There is room for a few savings there as well.
Remember, this is fixed costs. Not discretionary spending. IF you are making ok profits, then sure you can spend some of it. But it's best to have low overhead so you don't have to make a huge % return just to meet your nut.
PatternRec
Guest
Though what he intends to trade makes a big difference in the amount needed.