Is $5,000 enough to get started with trading?
- Thread starter icantoday
- Start date
Depends.
it is too little to make it a self-dependant business venture. Point. Imagine you are good and make 20% per month....
....welcome to USD 1000, and out of that you have to live and grow the account. In my planning that would mean living of USD 250. NIIIICE.
NO WAY.
Add another 45000 and that would mean living of USD 2500 a month (assuming same profit, which - give that - is not that easy, especially for a starter). Now, who are you? For me living of USD 2500 a month is two steps backward. For some it is good. But then.... by that plan my account would grow by USD 2500 per month, too (25% of returns stay), I would hae USD 2500 a month to "invest" (pay credt on appartment back, invest in bonds or something to build a reserve) and would have some funds to pay costs (last USD 2500 are for taxes and trading costs, like internet, and my taxes would be USD 1900 on USD 10.000 profit, again depends on your country). And I do not need money to live from that.
That said, USD 5000 may be goood to start. Make sure you stay out of big deals and go with the smaller stuff - few shares if trading shares, mini futures when possible. It is a good start to "see how it goes", but it is definitely not enough to make a living or make it a worthwhile business venture
it is too little to make it a self-dependant business venture. Point. Imagine you are good and make 20% per month....
....welcome to USD 1000, and out of that you have to live and grow the account. In my planning that would mean living of USD 250. NIIIICE.
NO WAY.Add another 45000 and that would mean living of USD 2500 a month (assuming same profit, which - give that - is not that easy, especially for a starter). Now, who are you? For me living of USD 2500 a month is two steps backward. For some it is good. But then.... by that plan my account would grow by USD 2500 per month, too (25% of returns stay), I would hae USD 2500 a month to "invest" (pay credt on appartment back, invest in bonds or something to build a reserve) and would have some funds to pay costs (last USD 2500 are for taxes and trading costs, like internet, and my taxes would be USD 1900 on USD 10.000 profit, again depends on your country). And I do not need money to live from that.
That said, USD 5000 may be goood to start. Make sure you stay out of big deals and go with the smaller stuff - few shares if trading shares, mini futures when possible. It is a good start to "see how it goes", but it is definitely not enough to make a living or make it a worthwhile business venture
Once you make your first deposit of 5k and then your second, where are you getting the next chunk? Think 2 steps up would be a good plan if I were you... but if thats the good advice than its a shame someone didnt give it to me. Would I Just have deposited the 10k to begin with so to have more choices or drawdowns or confidence to begin with, probably. More than that it seems I would have been more careless than i already was. I thought i would put 5k in just to see where I am and what I can do and what will happen. IT seemed it was better than throwing it away.Like they said its for the education.But then the second 5k was still more lessons,and then more paper trading in search of more funds to get it right. So close yet so far away!
The education is expensive and endless it seems.
The education is expensive and endless it seems.
I trade a 5k account and take money out of it to live on somewhat. I also have a second job that helps but it is totally doable. I trade SPY and QQQQ options 99% of the time and make consistent small gains. It isnt much, but $200 a day is not bad for such a small account. I did however blow through many 2-3k accounts the first 2 years of trading. If you are serious and want to give it a shot, you need to be certain that you are willing to lose all of that money. It really comes down to your call, you will know if you can do it. Being scared is your worst enemy.