Is $5,000 enough?
Hell, that won't even pay for a good lunch for me.
(That means no)
Hell, that won't even pay for a good lunch for me.
(That means no)
Is $5,000 enough to get started with trading?
- Thread starter icantoday
- Start date
Sushi and monkey brains again huh bigfat?
Michael B.
Michael B.
Indeed misctrader,
Your post separates the men from the boys - most posters wisecrack away like usual. You are about the only one to come up with a serious answer.
You rightly state:
" But ONLY IF you know what you are doing in futures."
Of course you can if you elaborated a strategy with a sufficiently small IDD (intraday drawdown). How to find one is another matter altogether, can be done though! No need to run to Props id you can do this. You' ll grow rich by yourself.
PS. Obviously, most wisecrackers " don't know what they are doing in futures."
Be good,
nononsense
Hi Icantoday,
So you want to learn to daytrade.
If you want to get your feet wet in daytrading with 5k, a way to get started is to open an account with IB - interactivebrokers.com.
Then subscribe to a realtime charting program and ask for emini futures data. I use realtick, there are others. Do a search on ET for best charting software etc.
Due to the Pattern Daytrader Rule that went into effect back in 2001 - you would need more than 25k in your account in order to daytrade stocks - less than 25k and you can only make 3 trades in 5 days - obviously that is'nt daytrading.
Emini futures is traded through the CME - Chicago Merchantile Exchange and is not subject to the PDT rules.
The CME website has info on both the S&P (ES) and the Nasdaq 100 (NQ) minies. Emini stands for electronic mini sized contract = 1/5 the size of the big contracts. (I trade NQ only and have become very familiar with how it tends to trade.)
Odds are that you will lose your initail stake. With IB you will need 2,000 in your account in order to initiate a futures trade - if and when your balance falls below 2k then you will have to make a decision, either to add funds or to take what you have left and find something else to do with it.
Chances are very high that you will not learn how to trade profitably with 5k. However, there is always a chance that you could. If you want to take that chance then have at it. Just be aware that most people never learn to trade with consistent profitabilty.
You are probably above average intelligence. That doesn't mean that you will be an above average trader. Trading can be and will likely be one of the most difficult tasks that you have ever undertaken. With that knowledge in hand, if you still wish to take the risk, be ready to set out on a long journey of learning.
If you have enough time, money and perseverance then you might realize your dream. Who's to say that you won't be a great trader. All traders have to start somewhere so have at it. You might end up making obscene amounts of cash from trading while having fun doing it. Just be ready to pay your dues. Chances are that 5k will be the tip of the iceberg.
Some have mentioned trading currencies - that too is an option for daytrading with 5k - if you elect to try that - I'd suggest playing one of the realtime games that most of the brokers have before you trade with real money.
In short 5k will most likely be an education installment. I am not trying to crush your hopes/dreams, I'm merely trying to let you hear some odds on what reality is likely to be. The odds of making a living from 5k are very very, slim to none. Let's just say none. A seasoned veteran might take 5k with all bills paid for awhile and grow that into an account that he/she could make a good living with. A newbie's chances of doing that are pretty near none.
You don't have to lose - if you can find an edge - write a plan to trade your edge - trade your plan and make money. Chances are that you won't do that from the start, though.
Best regards,
plumlazy
So you want to learn to daytrade.
If you want to get your feet wet in daytrading with 5k, a way to get started is to open an account with IB - interactivebrokers.com.
Then subscribe to a realtime charting program and ask for emini futures data. I use realtick, there are others. Do a search on ET for best charting software etc.
Due to the Pattern Daytrader Rule that went into effect back in 2001 - you would need more than 25k in your account in order to daytrade stocks - less than 25k and you can only make 3 trades in 5 days - obviously that is'nt daytrading.
Emini futures is traded through the CME - Chicago Merchantile Exchange and is not subject to the PDT rules.
The CME website has info on both the S&P (ES) and the Nasdaq 100 (NQ) minies. Emini stands for electronic mini sized contract = 1/5 the size of the big contracts. (I trade NQ only and have become very familiar with how it tends to trade.)
Odds are that you will lose your initail stake. With IB you will need 2,000 in your account in order to initiate a futures trade - if and when your balance falls below 2k then you will have to make a decision, either to add funds or to take what you have left and find something else to do with it.
Chances are very high that you will not learn how to trade profitably with 5k. However, there is always a chance that you could. If you want to take that chance then have at it. Just be aware that most people never learn to trade with consistent profitabilty.
You are probably above average intelligence. That doesn't mean that you will be an above average trader. Trading can be and will likely be one of the most difficult tasks that you have ever undertaken. With that knowledge in hand, if you still wish to take the risk, be ready to set out on a long journey of learning.
If you have enough time, money and perseverance then you might realize your dream. Who's to say that you won't be a great trader. All traders have to start somewhere so have at it. You might end up making obscene amounts of cash from trading while having fun doing it. Just be ready to pay your dues. Chances are that 5k will be the tip of the iceberg.
Some have mentioned trading currencies - that too is an option for daytrading with 5k - if you elect to try that - I'd suggest playing one of the realtime games that most of the brokers have before you trade with real money.
In short 5k will most likely be an education installment. I am not trying to crush your hopes/dreams, I'm merely trying to let you hear some odds on what reality is likely to be. The odds of making a living from 5k are very very, slim to none. Let's just say none. A seasoned veteran might take 5k with all bills paid for awhile and grow that into an account that he/she could make a good living with. A newbie's chances of doing that are pretty near none.
You don't have to lose - if you can find an edge - write a plan to trade your edge - trade your plan and make money. Chances are that you won't do that from the start, though.
Best regards,
plumlazy
Quote from plumlazy:
Hi Icantoday,
So you want to learn to daytrade.
If you want to get your feet wet in daytrading with 5k, a way to get started is to open an account with IB - interactivebrokers.com.
Then subscribe to a realtime charting program and ask for emini futures data. I use realtick, there are others. Do a search on ET for best charting software etc.
Due to the Pattern Daytrader Rule that went into effect back in 2001 - you would need more than 25k in your account in order to daytrade stocks - less than 25k and you can only make 3 trades in 5 days - obviously that is'nt daytrading.
Emini futures is traded through the CME - Chicago Merchantile Exchange and is not subject to the PDT rules.
The CME website has info on both the S&P (ES) and the Nasdaq 100 (NQ) minies. Emini stands for electronic mini sized contract = 1/5 the size of the big contracts. (I trade NQ only and have become very familiar with how it tends to trade.)
Odds are that you will lose your initail stake. With IB you will need 2,000 in your account in order to initiate a futures trade - if and when your balance falls below 2k then you will have to make a descision, either to add funds or to take what you have left and find something else to do with it.
Chances are very high that you will not learn how to trade profitably with 5k. However, there is always a chance that you could. If you want to take that chance then have at it. Just be aware that most people never learn to trade with consistent profitabilty.
You are probably above average intelligence. That doesn't mean that you will be an above average trader. Trading can be and will likely be one of the most difficult tasks that you have ever undertaken. With that knowledge having been told to to you, then if you still wish to take the risk, be ready to set out on a long journey of learning.
If you have enough time, money and perseverance then you might realize your dream. Who's to say that you won't be a great trader. All traders have to start somewhere so have at it. You might end up making obscene amounts of cash from trading while having fun doing it. Just be ready to pay your dues. Chances are that 5k will be the tip of the iceberg.
Some have mentioned trading currencies - that too is an option for daytrading with 5k - if you elect to try that - I'd suggest playing one of the realtime games that most of the brokers have before you trade with real $.
In short 5k will most likely be an education installment. I am not trying to crush your hopes/dreams, I'm merely trying to let you hear some odds on what reality is likely to be.
You don't have to lose - if you can find an edge - write a plan to trade your edge - trade your plan and make money. Chances are that you won't do that from the start though.
Best regards,
plumlazy
Good advise plum,
Let me add that by far the best approach is not to try anything before you know what you are doing. This requires above average mental discipline: it may take years.
How to find out what you need to know is up to the practicioner. You are not going to find this in ET wisecrack posts.
Good luck Icantoday,
nononsense
nononsense,
thanks for the compliments. However, I like to add that in NO WAY do I say that $5K is sufficent for you to make a living or get rich or even pay your bills!
But if you are so new, then perhaps it's best to plan out what you are going to do. But I know you wouldn't anyhow. So, go ahead and plunk down the $5K and lose it so you'll know how hard trading is.
And even if you are an expert trader, $5K is not enough to live off! But I'm saying an expert trader can generate minimal cash flow from even a $5K acct that a newbie will flush out in weeks.
What is the right amt to generate a living? It all depends on many factors - trading skills, types of instruments, risk mgmt, position sizing, types of volatility,etc.
But $5K is unlikey to be that number...