Hello, looking to get started in trading. Looking for for short term right now over long term - but my budget is limited to about $2000, when I say short term im talking less then a months time. Im not really looking to make a fortune, just looking to get my feet wet so to speak. Any words of advice? Any online companies that can handle this (I know some have large minimums) - give me your thoughts, im all ears. Thanks in advance.
oanda.com has no minimums and 20:1 margin. No annoying PDT rules, no commissions. Of course, they are a forex broker!
Read this thread http://www.elitetrader.com/vb/showthread.php?threadid=11957 and use the Elite Trader search function to search words like 'undercapitalization'. http://www.elitetrader.com/vb/showthread.php?s=&postid=170982&highlight=undercapitalized#post170982 If you do not realize that you are severely under-capitalized and putting yourself in a very very tough position to start with, I suggest you do as much reading as you can and try to get a sense of what successful traders think about appropriate capitalization. Absolutely not trying to discourage you, you CAN start with 2K and make it... it's just really really unlikely. Wouldn't you rather start with a better chance of making it (say, a 2 in 10 chance as opposed to 1 in 20)? I just want you to understand the probabilities involved as they relate to your ability to weather a losing streak.
Get a job, save more, get more information about trading. You can not trade on 2K if this is only what you have. Your thoughts will be fixed on this money it does not help to trading. Try to do adult'splay.
So just because I dont have like $50k to get started means I cant do it? Im not going to be trading to pay bills - but with the banks offering crap for returns I figure I gotta be able to make more then the 2% the bank will give me if I leave the money in the bank.
Can't do it? Not at all. However, with $2000, you are extremely unlikely to survive the learning curve which would allow you to get to the point where you could consistently beat those 2% returns. I have talked to a lot of professional traders and many of them have pointed out to me that if you start doing any kind of active trading and are breaking even after 6 months, you are doing very well indeed. You MUST be ready to lose money for the first xx months of your trading, just in case. You must be sufficiently capitalized to be in the game long enough to learn it. One of the worst mistakes a beginner can make is to fail to understand this idea. Could you be the 1 in 500 who start with $2000, never have a dip in equity and go on to make a living at it? Yes. But it would be gambling if you try to find out at those odds. It's almost like trying to find out if you win $500 on a $1 bet at the casino on a play which has a one in 501 chance of paying off. Nice for amusement, but it's the suckers who stand there pouring money into those machines.
If you're getting 2% at your bank, that is a good return, most banks are paying less than 1%. I'll say this to you as nice as I can (25 years experience) Stay the F**K out of the Market. You'll thank me later But for now, you can rant. Flame away.
Most of the people on Elite Trader are doing it for a living, and think of "short term" as anything under 60 seconds, and long term as anything over 60 seconds. Anything over 24 hours they don't think of as trading, they think of as investing. Yes you can definitely do better than the 2% year you will get from your bank. There are about 10 online brokers listed in the Brokers Rating section of the Home page on Elite Trader that will let you open an account with $2,000. www.MyTrack.com lets you open an account with $500.
yeah you're ok. www.interactivebrokers.com is a good broker with a 2k min initial investment. you can trade 100 shares for around $1.00 on commissions don't ever let one trade get out of hand and wipe you out, cut your losses short and save back enough for another trade you'll do just fine