Start-up Capital - Loans, etc...

Quote from SicilianTM:

Seems simple enough, now all anyone has to do is "get" 50K or preferably 100K. :confused:

I am about to trade with a borrowed stake. I used a low interest credit card advance, which is good for the life of the balance. As part of my plan though, I have set myself up with several part time jobs that just cover my living expenses by working afternoons and evenings, mostly outside of market hours. These jobs would interfere with a full time 9-5 though, so doing both is not an option.

I also have some backup living expenses saved. I can make nothing from trading for quite a while and still be fine. The goal at first is learning to grow the account, slowly increase my position sizes, and someday reach a level where I could support myself from trading. Until then, any gains no matter how small are acceptable. Even breaking even or small losses are acceptable for a time as long as I'm learning.

If I fail and lose the whole stake, I'll have to pay it back at a rate of a few hundred dollars a month for a few years. That would suck, but it seems the same result to me if I had saved that money for a few years and lost it. Plus I get to start now, instead of years from now, and I feel I have to act while my situation allows it.
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Why are you in such a rush to risk using real money? To increase your probability of success as a trader, seek to reduce external pressures, not increase them. Unless you know you can make consistent profits over an extended period of time, using borrowed money will only substantially increase the pressure to perform. Trading is hard enough as is, don't make it harder.

Sincerely,
Daryl
 
Quote from Worldcrusher:

Why are you in such a rush to risk using real money? To increase your probability of success as a trader, seek to reduce external pressures, not increase them. Unless you know you can make consistent profits over an extended period of time, using borrowed money will only substantially increase the pressure to perform. Trading is hard enough as is, don't make it harder.
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My personal situation dictates that I strike while the iron is hot. I am not the OP, he may have a different situation. My early attempts at trading, from 1999-2002 were not successful. I had no idea what I was doing. But I've been learning as much I could without having real money on the line for the last 8 years. Now that, for the first time, I can make a living outside of market hours, it's time to go live.

The pressure to perform will ALWAYS be there. My current situation where I just make enough to cover my bills can't last forever. Either I succeed at trading, get a 9-5 job (which I hate), or start some kind of business. For me, the additional pressure of paying back the borrowed money is not that great since the montly payment is very small.
 
Quote from baggerlord:

You can go prop with 5k.
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I am under the impression that this is NOT the case with equities. If you have info on any LEGITIMATE arcade/prop firms that allow a deposit of only 5k, please let me know.
 
Quote from BillySimas:

I am under the impression that this is NOT the case with equities. If you have info on any LEGITIMATE arcade/prop firms that allow a deposit of only 5k, please let me know.
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Bright Trading.
 
Quote from BillySimas:

I talked to Don Bright on the phone a couple weeks ago and he told me I needed 15k minimum.
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They must have raised it then from back in 05 when I was looking around.
 
Yeah there has been a lot of cracking down lately on that. Don Bright does seem like a very honest guy, he told me he'd give me any info he had on other prop firms that asked for less than 25k, many of them have been shady with payouts and what not. I'm in Chicago so there is no shortage of them here.


Quote from krazykarl:

They must have raised it then from back in 05 when I was looking around.
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What is the reason you want to trade stocks?? I'm guessing it's because that is the only market you're familiar with. If that is the case, then I would definitely say you need to study up more and learn what every market is all about before you dive in. Forex.com is a fantastic place to start once you do trade real money, you get 100:1 leverage and I think the minimum deposit is next to nothing, like $500. As an example, the euro might move an average of 100 pips (1 cent) in a day, a mini account at forex.com would let you trade 1 min-lot where $1=1 pip. So if you sat on one position for an entire day, you would only be risking around $100 on average (verry ballparkish figure, don't quote me on that). It's a great place to learn and the barriers to entry are nil, you can fund the account with a credit card and start trading the same day.


Quote from mdhtrader:

Thanks again Daryl, you've been a huge help/moral booster.

Do you (or anyone) think Forex would be a good place to start as well?
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Quote from BillySimas:

What is the reason you want to trade stocks?? I'm guessing it's because that is the only market you're familiar with. If that is the case, then I would definitely say you need to study up more and learn what every market is all about before you dive in. Forex.com is a fantastic place to start once you do trade real money, you get 100:1 leverage and I think the minimum deposit is next to nothing, like $500. As an example, the euro might move an average of 100 pips (1 cent) in a day, a mini account at forex.com would let you trade 1 min-lot where $1=1 pip. So if you sat on one position for an entire day, you would only be risking around $100 on average (verry ballparkish figure, don't quote me on that). It's a great place to learn and the barriers to entry are nil, you can fund the account with a credit card and start trading the same day.
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I'm somewhat familiar with forex, has a friend thats doing it. I have been looking into it a little here and there, definately need to do more research though...I just like stocks better but I am going start with forex..who knows maybe do both eventually, we'll see what happens..
 
all the professional master traders trade futures

Quote from mdhtrader:

Alright, so I want to get into trading. I know this is what I want to do for a living, as I know I have the discipline and dedication to succeed and that I want to go with a prop firm. Problem is, I don't have $20-30k anywhere. Parents aren't rich so can't go there...and saving this amount will take too damn long even though I live way below my means...

So my question...do you think banks, gov't, etc have a loan or something out there? Considering its day trading would it be difficult to obtain? Ideas?

Anyone with experience, advice (or even an amount I could borrow, heh) would be greatly appreciated.

A little about me: college degree, good credit, eagle scout (for what its worth.)
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