Is $5,000 enough to get started with trading?

[dhpar]

I agree with paulds11 despite his offensive/abusive attitude - that discredits it right out of gate.

But in general it is better to start smaller because you will likely blow your account few times. It is better to learn the ropes on as small money as possible - and $5k is about the right minimum amount.
At the end of the day you can always pump in more later...

 

[Paulds11]

Quote from dhpar:

I agree with paulds11 despite his offensive/abusive attitude - that discredits it right out of gate.

I can understand your feelings in that regard. At the same time this is serious. People who are new need to know in clear terms that some statements here are nonsense, I have not been overly offensive or abusive to anyone that didnt deserve a stern dressing down for the foolishness of the comments aimed at the new guy... Sorry but I need to be emphatic, to champion that cause...

 

[Paulds11]

Quote from wiesman02:

Great post Paulds

Thank you so much.. Im glad you connect with it Sir..

 

[TheDamo]

Quote from icantoday:

I have $5,000 that I can justify using in a new business venture. Is this enough
to get started with day trading? If so could you please suggest a service I should start with (Ameritrade, Cybercorp,Realtick,Rediplus,etrade etc.)

I would greatly appreciate your suggestions.

Ken

I could trade my system with $5k or $5m and still make the same returns in terms of percentages.

The rules of my stategy would not change at all, but 5k would be the absolute minimum I could probably use.


Thanks

Damian

Professional U.S. Share Trader

 

[MattF]

Paulds...indeed well informative and repeating some major points that come up time and time again...which some still can't get.

Although, say in futures one can start with less then $5K to get the account open, $4-$5K is a very nominal amount to work with in a balance of time and just above bare minimum amounts traded (risking low in the 3-5% range on each trade starting), and with the idea of making a respectful profit to start vs. making virtually peanuts and then losing that amount in one or two bad trades....then either adding more to it later, or if successful, compounding the profits to add more into your trades.

Besides, anybody can blow up an account with any amount in it.

 

[Paulds11]

Quote from TheDamo:


The rules of my stategy would not change at all, but 5k would be the absolute minimum I could probably use.

Thanks

Damian

Professional U.S. Share Trader

BANG.. Perfect Damian, beautiful Newbies... "hey you...Pay attention at the back".... the amount of pips he makes is not neccesarily affected by the size of the lots, or cash he puts on the trade... its not about the money perse its about the pips.. that why when you here someone ask "how much can I make" you know the poor person is in newbie mode and requires some assistance, or simply isnt getting to the hub of the matter.

Truth is if your new.. your going to spend a lot of time either on the technicals or the fundamentals in order to define your entry points and exit point strategies and then continually refine them untill you reach profit.

(In many ways me saying this helps me absolutely see this is how exacting I must be if Im going to make this trading a success)

Thanks Damian.. your a beacon of light for the newbie

Paul

 

[Paulds11]

Quote from MattF:

$4-$5K is a very nominal amount to work with in a balance of time and just above bare minimum amounts traded (risking low in the 3-5% range on each trade starting), and with the idea of making a respectful profit to start vs. making virtually peanuts and then losing that amount in one or two bad trades....then either adding more to it later, or if successful, compounding the profits to add more into your trades.

Besides, anybody can blow up an account with any amount in it.

MattF.. sure it is a small amount granted.. but hopefully by then when one realises that theyll be in a position to fund the account theyd have gotten the point and realised ahhh I need to know and understand technicals...

The guy Alex from Puretick says it very well in one of his videos... If you want to become a Doctor, Architect or similar, what makes you think 1 week of training is enough to jump into the markets and start winning?... thats a slap in the face to all those who make it consistently after much effort, education and pain... its the same here... and the income from trading blows any other form of income potential in any trade, industry or profession when one looks at its acceptability to a wide range of people... not even IT is as big as an industry compared to money traded in the markets globally... best some of those guys dissin everything about learning and money size get swatting on technical analysis if you ask me..

any way thanks
Paul

 

[fearless9]

This question can be taken in two ways.
.... will a Broker open an account with 5K
and permit me to trade.

.... can I trade my system with 5K

The answer is the same for both.

Sadly, if you need to ask, then you are not ready to start trading.

 

[Algorithm]

Quote from icantoday:

I have $5,000 that I can justify using in a new business venture. Is this enough
to get started with day trading? If so could you please suggest a service I should start with (Ameritrade, Cybercorp,Realtick,Rediplus,etrade etc.)

I would greatly appreciate your suggestions.

Ken

Simple answer: No

To get started in investing with some trading: Yes.

Good Luck!

 

[eagle]

Gee, by the time the thread was started, the guy would have already became TheRedInc today.

Quote from wmb:

What will you do if you lose the 5k and another 5k? What does everyone suggest than, where do your funds come from then. you know your not going to want to walk away from the 10k. Btw whats wrong with borrowing the funds?