Ya. The unemployment rate is like at all time lows, any new trader need to consider that they could be pulling $50k doing something else. Also, working from home without a boss sounds awesome but its actually quite unfulfiling, there is quite a connection between people that are self-employed and depression. I did it for a long time and it didnt felt good at all, despite all the profits. Its for that very reason why I decided to rent a desk at a coworking place, just to have people around me, small talk, networking etc. I find it much better than working from home and 'living the dream'
If you have just open a $2000 account,what would you do?
- Thread starter Mpas
- Start date
Could this hypothetical expert in every market have become an expert without trading successfully? You are right. An expert should have a lot more capital than $2k. I don't think you could call yourself an expert without having traded up to at least $250k or so.
But let's say this expert just did 10 years in the pokey for fraud and embezzlement. Every cent he had, every posession, was taken from him. Can't get a job anywhere, even McDonalds. He does odd jobs, mowing grass, housepainting, cleaning boat bottoms, day work with a labor pool, etc and after a couple of months he has $2000 in hard won hard cash saved up. And he wants to trade. He already knows what to do! Either Forex, or a margin equity account with an offshore broker. He would trade his ass off and do a Ross Cameron and be up to a Mill in less than 3 years of trading. A newbie starting with $2k would be very protective of his money, if he was smart. The expert would tolerate a much higher risk level in the beginning in order to quickly trade up to $25k and move to a U.S. broker, and then trade a bit more conservatively. Actually he might do options rather than equities, now that I think of it. The main thing is, he would not be asking anyone else. He would already know what would work best for him. That's my thinking, anyway.
Fully agree. Then again, I kind of feel sorry about that guy if he has absolutely zero connections/confidence after trading at a professional level for a decade that would let him trade other people's money to rebuild his own capital faster with less risk.
I wouldn't bother trying to waste time trading a $2000 account, honestly. If that was all the assets I had to trade or invest, I wouldn't concern myself much with how to trade it... Just throw it into an index fund. My much bigger concern would be to get or keep a good paying W-2 job and working to build up my net worth.
Exactly, an expert would already have his/her answers and wouldn't need to be asking for advice from anonymous user names.
wrbtrader
Trouble with index funds, they are reliable and generally safe but a tad boring for a younger guy especially who may wish to exercise some brain muscle in an attempt to beat the indexes.
For those who live otherwise busy lives and can't be bothered with trading stress, yes, an index fund/s would be the way. In Australia most people working have a supperanuation fund and on average these return about 10% pa tax free with approx 9.5% of income going in on each pay day, so it begins to compound quite nicely. The superannuation providers give several options on which type of risk investment type you can take.
But $2k account size doesn't allow much luxury in spreading risk, just punt it on something speculative I guess, an expert should be able to handle the volatility I would think.
better off getting into a much higher margin business than investing. Order some cocaine from colombia then sell it to elementary school kids then sell the boys to organ dealers. Repeat it until you reach 1mn then invest
The biggest enemy for new traders is under-capitalization.
I prefer stay at home with my family or traveling, for networking and Smalltalk I have the spa, club and friends.