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

Davo · Jul 13, 2004

Quote from virgin:

Instead of going with www.globalfutures.com take

www.eminilocal.com.

Better rates and they use the same servers as Global namely the ones of RCG

Thanks Virgin! I'll look at eminilocal. I use Global and pay 5.50 RT total, but I had to work them for that rate.

Miki · Jul 13, 2004

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

Your answer to my question will answer your question:
Will $5,000 loss hurt you?

Stealth Trader · Jul 13, 2004

Quote from TraderRuss:

You can day trade with $5k or less with an offshore broker because they do not have to follow NASD trading rules. I use www.alldaytraders.com

I have used them for about 4 months now and have not had any problems. I only have about $6k in my account with them and I get 4 to 1 margin and day trade multiple times everyday with them.

The only other way you can do it (day trade) with that little is through a prop firm.

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Interesting. I notice that http://www.alliancetrader.com is a sponser of this forum and that they have a "not intended for U.S. citizens" disclaimer beneath their ad. I was unable to find any information on their site regarding that disclaimer, therefore, are those of you using them residing in the U.S? If so, I wonder how long before the SEC steps in and tries to shut the practice down. All in our good interest of course!

st

TraderRuss · Jul 13, 2004

Quote from Stealth Trader:

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Interesting. I notice that http://www.alliancetrader.com is a sponser of this forum and that they have a "not intended for U.S. citizens" disclaimer beneath their ad. I was unable to find any information on their site regarding that disclaimer, therefore, are those of you using them residing in the U.S? If so, I wonder how long before the SEC steps in and tries to shut the practice down. All in our good interest of course!

st

I use http://www.alliancetrader.com and I have asked them about that US persons statement. They claim they cannot direct advertising toward US people because they do not follow US rules. They say they have spoke to both the NASD & SEC and what they are doing is completely legal. They will accept US clients, as long as those clients find them. They just don't "target" their ads toward US people.

I and several of my friends are all in the US and we use them. I've had an account there for months and have had no problems so far.

Stealth Trader · Jul 13, 2004

Quote from TraderRuss:

I use Alldaytraders.com and I have asked them about that US persons statement. They claim they cannot direct advertising toward US people because they do not follow US rules. They say they have spoke to both the NASD & SEC and what they are doing is completely legal. They will accept US clients, as long as those clients find them. They just don't "target" their ads toward US people.

I and several of my friends are all in the US and we use them. I've had an account there for months and have had no problems so far.

Thanks!

st

tradewiz50 · Jul 14, 2004

Quote from TraderRuss:

I use http://www.alliancetrader.com and I have asked them about that US persons statement. They claim they cannot direct advertising toward US people because they do not follow US rules. They say they have spoke to both the NASD & SEC and what they are doing is completely legal. They will accept US clients, as long as those clients find them. They just don't "target" their ads toward US people.

I and several of my friends are all in the US and we use them. I've had an account there for months and have had no problems so far.

Add me to the list. Happy to be a client of theres. As TraderRuss said they don't cater to US citizens but they will take you on as a client.

In the end you are responsible for your P/L accountability with the IRS since they don't report to them.

Transact Futures · Jul 14, 2004

I am not sure if people have said this but $5000 is not enough for a new trader. You would be better off spending it somewhere else. If you want to learn how to trade you are better off with $20-$25,000 and joining one of the rooms like Woodie or Marketshaman. They will help you learn the trends and help get in or out of the market.

If you do want to trade with $5000 and want to trade futures the $5 dollar Dow is a great market to start with. A small tick and some good volitility.

lojze · Jul 14, 2004

Quote from Stealth Trader:

Thanks!

st

Commissions are not quite impressive....

And misc. fees are horrible ...

When does it make sense to use this broker?

How about insurance? Are they insured?

Where else are they different than Greentree and others in this area?

Cheese · Jul 14, 2004

Quote from Transact Futures:.. If you do want to trade with $5000 and want to trade futures the $5 dollar Dow is a great market to start with. A small tick and some good volitility.

Agree.

But the newbie needs to research. Study and study. One lot only for token trading. Make one loss: stop trading for the time being. Now more study.

SteveD · Jul 14, 2004

The simple hard cold truth is you cannot trade with $5,000 and make money. You will lose the 5Grand. My opinion has always been:

My rules of "daytrading"

Must have direct access screen

Nothing but equities, anything else is a suckers game. The small trader cannot compete. Moderate liquid equities offer the best imbalance for the small trader to take advantage of.

Indices: You are trading against computers the size of a Buick!!

Commodities: Do you think you know more about a product than the companies that actually use the commodity.

Metals: See commodities

Must live in US. Any where else and you are out of the "flow" of the game. Don't understand the nuances of the market.

Now, if you actually learn something then the $5,000 is a cheap education for a very rewarding career. Compare to college cost!!

SteveD