Starting with $10k

Quote from bone:

I have a client who just went live 3 months ago with a $10K account at Advantage Futures and he's doing very well swing trading futures spreads. They are very, very cheap to margin and carry overnight. Having said that, he is an experienced OTC energy trader who trained with me off-hours in exchange futures spreads so he was really well put together before he hired me.
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Before when I mainly day traded all the time, I had very little energy to do much in commodity spreads. But now I have others day trading for me, I spend all my time working on spread trading and loving it. Now granted, like anything, if you don't understand what you are trading, you can lose even more than straight positions. But the margins are like Bone said very cheap and profit to margin is very nice for those starting out.

And like any other instrument, got to backtest 10-20-30 years of data for swing to long term trading.
 
Quote from mtt:

Ted28:

I recommend peer-to-peer or social lending.

http://www.lendingclub.com/

http://www.prosper.com/

Rates are good but investments in consumer notes are not asset-backed securities. I think the quality of the notes with Lending Club is better. Prosper is okay.




The new kid on the block in social lending:

https://www.uhaulinvestorsclub.com/

Rates are not as great as above but investments are asset-backed securities.



For humanitarian types that want to help the world.

https://www.microplace.com/

I don't recommend competitor Kiva because they do not pay interest back.


Invest in small amounts regularly and diversify. Scrutinize everything before investing in a note and do your homework.
For every 10k you invest, you can see several hundred dollars back per month. Expect a default rate of 10-20%. Continuously invest small amounts and diversify to protect yourself. Do not think A credit people are the best or safest to invest in. They can default more than those with worst credit too. You are dealing with all sorts of people so scrutinize and diversify.
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Thanks, that's good advice! Also, thanks to everyone else, that was good advice from the other people who posted!
 
As you honestly admitted, you are still honing your trading skills. Believe me, being honest about yourself is much more important than the size of the staring account.

Some people have already suggested that you do paper trading, backtesting, etc. before starting again. I completely agree with them. Today, paper trading has become much easier and, moreover, it could already give you some reward. Have you contemplated the possibility to start a simulated account on resources like Collective2? (www.collective2.com). They have some quirks, but usually they do a good job at simulating a trading environment. As I said, if your system does well you could already raise some money from subscribers within the first few months and then, if it really works, you could quit leaving everyone in despair! :D
 
As you honestly admitted, you are still honing your trading skills. Believe me, being honest about yourself is much more important than the size of the starting account.

Some people have already suggested that you do paper trading, backtesting, etc. before starting again. I completely agree with them. Today, paper trading has become much easier and, moreover, it could already give you some reward. Have you contemplated the possibility to start a simulated account on resources like Collective2? (www.collective2.com). They have some quirks, but usually they do a good job at simulating a trading environment. As I said, if your system does well you could already raise some money from subscribers within the first few months and then, if it really works, you could quit leaving everyone in despair! :D
 
$10K would be like a dream portfolio for a small trader like me. I would really consider this very much seriously and make money which is very much sufficient for me with this kind of capital money.
 
Although this amount is not possible for me to accumulate but I can manage such amount and even bigger amounts. I have done some good in my 2 years and now I can manage funds.
 
Quote from Ash1972:

I'm sorry, but how can any normal person living in a Western country not manage to save up $10K?
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If someone didn't land a job right after college, then continued years of unemployment. Unrepayable student loans puts someone at negative worth to start.
Just trying to repay that loan would be damn near impossible, let alone trying to save 10K.
 
Quote from arturo100:

As you honestly admitted, you are still honing your trading skills. Believe me, being honest about yourself is much more important than the size of the staring account.

Some people have already suggested that you do paper trading, backtesting, etc. before starting again. I completely agree with them. Today, paper trading has become much easier and, moreover, it could already give you some reward. Have you contemplated the possibility to start a simulated account on resources like Collective2? (www.collective2.com). They have some quirks, but usually they do a good job at simulating a trading environment. As I said, if your system does well you could already raise some money from subscribers within the first few months and then, if it really works, you could quit leaving everyone in despair! :D
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Thanks, I will try that too! That really seems like a neat system and has its opportunities too. I hadn't heard of that before, but I am interested in it. I agree too that paper trading and backtesting are good tools too!
 
Quote from Ash1972:

I'm sorry, but how can any normal person living in a Western country not manage to save up $10K?
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Apparently you never met my ex wife, she was remarkably adept at spending every dollar that I brought home...magically 18 months after I divorced her, I had about $35k in my savings account.
 
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