Hello, I'm a student and I have savings of around $600. I want to invest it in the stock market. I want to know what strategy should I go for? Meaning should I start day trading, swing trading or Invest it for the long haul? Which strategy will be the best for me keeping in mind I'm a beginner, I haven't invested a single penny in my life till now and I have college studies to do. Also according to your experience which strategy will yield more money in 10 years? Also, I want to know How much minimum time per day is required for day trading, swing trading, and long term investing. Thank you, have a nice day
Day trading stocks requires $25,000 to not deal with PDT. More (ideally $100,000) is required to get portfolio margin. Swing trading can be done with any amount depending on your time horizon. The total market return is around 10% per year. Best strategy is to purchase an index fund or an ETF that tracks the market (VYM for example) and leave it there. When you get out of college and get a big boy job then you can worry about trading. The power of compounding requires you to sit on your hands. You don't have the capital to begin investing in individual stocks that have any chance of real growth. You can only afford lottery tickets right now. If you put $500 into an index fund returning an average of 10% per year and only put $50 dollars a month thereafter into it you'll have a little under $11,000 in 10 years. Now imagine what you can do with more.
Invest in a date or two of a rich man's daughter because you seem to be looking for the quick and easy way to riches. And date night is cheap nowadays, Netflix and Dominoes.
It's never too late, but the way you ask, is equal to : medics forum : ,,hey guys, i want to become a doctor, i wonder, should i try removing a heart or eyes first ?'' (maybe, bit too-over dramatic, but the point is obvious) If you don't care about those $600, then just waste it on Starbucks, tho if you do, buy books for it, and loots of coffee, and go get that knowledge. Then install sims/demos and practice for 6 - 18 months, or until, you triple your account. And only after that, think about doing something with those $600.
The stock market returns about 10% a year on average, so that's 60 bucks for you at the end of the year (commissions not included) and $1,556 in 10 years if you keep re-investing, assuming the market does not switch to bear mode. Not even beer money. The fastest way to grow a small investment is to trade the Forex market, but the risk is higher.