Possible to become a success with 5k?

ok ... here is my 2 cents

unless you have some defined "edge" backtested

on paper or developed "real time"
with the smallest possible trades using "real money"

you have only the slighted chance to make it with such limited capital ... now if you are found to be a "quant" genius
or have some personality trait or are an incredibly hard worker that would make you
a valuable asset to a prop firm ... and you really
read and understand what the best "prof traders"
do right ... even if at first glance it seems like
gobledeegook to you ... then do not do this
for too long ... unless you are a glutton for punishment
and do it for a hobby or instead of gambling somewhere

good luck
 
If you go to a prop firm with reasonably low commissions and good leverage, and you trade 100 share lots of equities and limit yourself to a maximum loss of $50/day, even if you max out your loss every day you get 100 days of trading experience. If you're disciplined enough to stick to your stop limit, you'll probably have days where you're positive or you at least don't reach your limit so you're likely to get at least 150-200 days of trading before you burn out your capital; maybe by that point you'll have figured the game out well enough to start making money and size up, or maybe not, but at least you'll have extensive experience. If you've done all that and you're starting to get it, having to take a break from trading to work your ass off to get another 5k to use to make it "for real" and give yourself another 200 trading days... you should make it, if you have the drive... and trading suits your personality.

Day traders with leverage can get a tremendous (multiple thousands of percent) return on an account with a few k...
 
If you are under capitalized and are serious about trading.

1) First try to paper trade your signals and develop a consistent approach.
2) When your results get consistent try real account with small bets then comes your another 3 level WWF challenge face to face with .....
fear, greed and ego.... all 3 against you same time.... if you win this battle then I would say 5 k is good enough start.

All this will take time...

welcome to simulated thread
http://www.elitetrader.com/vb/showthread.php?threadid=83867
 
I think starting with $5k is OK. Just don't expect to quit your job or plan to be rich instantly.

The way I figure, if I can successfully make 3-5% per month consistently, and I add in extra money into the account per month, in 5 years I would have a decent size account. But even if I get 3-5%, the first 3 years, you are just making peanuts because of the small stake and cannot sustain your cost of living.

The hard part is to increase your trading size as your account grows large, (most people have cold feet), and start with the right size lots when you first start with your 5K. Obviously, a successful edge and strategy will be needed. You need to be very patient because your success needs to be measured in years. And when you first start, you need to start very small. You need to be risking a low % of your account per trade, and thus making very little per trade as well. Most people go big relative to their starting capital, and blow it all up. Making $250 per month doesn't seem hard to many people because they are trading larger size. But with 5K, try trading a small % of your account and making $5-$10 after fees...then keep repeating it until your account grows 3-5% per month. Most people will not be able to trade that low. They want the action! They don't want to waste all their time, and make peanuts.
 
5k AND WHAT TO DO WITH IT ???
Load up in the next day or so on as much leverage as your Broker will allow and BUY shares of APPL !! I have been watching it for sometime now and trading in and out of it. And this thing has a decent probability to shoot way upward with MacWorld next week.

Iam calculating about a $10 per share appreciation by end of next week. You probably can buy about 150 shares of APPL with 5k with Margin at your Broker. That would be about a 30% return on your totally equity account in just a week.

No guarantee but very probable that money will be made if you get in it the next day or so. If this stock does start turning against you cut loses quick and move on. A 2% stop loss would be advised making your dollar max loss right about $250.
But if it starts running upward let the gain run and implement trailing stops.
Remember its a numbers game, you can have 8 small losses and make it all up and much much more with just two BIG daddy trades that you let run and run !!!
From my own experience in the last 7 years this is how the BIG and consistent money is made !!


P.S. please dont load the boat on AAPL Options though. You will set yourself up for disaster if there is a sell off next week.
 
Quote from jimmygold:

P.S. please dont load the boat on AAPL Options though. You will set yourself up for disaster if there is a sell off next week.
More...
So buy puts :)
 
(How can you have only $5000 and be 33 years old? This post is spam. Moderator please close thread. Thanks.)

I know lots of people with negative net worths in their 40s. It happens...credit cards, bad divorces etc...I don't think everyone is a millionaire.
 
especially not in this day and age...many still "struggle" relatively speaking, because the expenses are nearly as even as the job they work (ala they barely have much leftover to save as "extra", whether or not they buy crappy consumer stuff and the like....)
 
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