How much money do you need to trade?

Have you ever wondered how much money you need to get started trading? If you know the difference between long term trading and short term trading, you might understand that there's a different requirement to make it interesting. There are also good products and not so good products to trade in.

If you're just starting out, you should try to trade in the least expensive products, to limit your risk. You also might not have a huge trading deposit. Most people think of trading stocks when they think of day trading. I think day trading stocks can be really expensive. Robin Hood or Interactive Brokers require something around $25,000 to day trade stocks for it to be interesting. Futures trading can be quite expensive, depending on the trade, because of the margin requirements. I think that mini futures are realistic for beginners. A one point value is only worth 5 EUR, for example. This allows you to not risk more than 1% of your trading deposit on any given trade. A professional broker's margin requirement still might be quite high.

Trading Contracts for Difference, or CFDs, are interesting but are controversial, especially in the United States. These can be very difficult to trade, so definitely be careful trading them. But, they are nonetheless a good place to start.

Many of my students come to me after having traded in Forex. Forex has the advantage of a low barrier to entry. You can start Forex trading with $20, but of course you are likely to lose all your money if you're not extremely careful (and probably even then). I recommend staying away from Forex trading altogether.

So, what's the number? I think, the absolute minimum to get into day trading is something like $500 to $1000.

Check out my webinar for information about my trading education programs:

https://my.demio.com/ref/ASrUQ9YAZ2FBII8E

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Видео How much money do you need to trade? канала Thomas Kralow