How much is enough to start trading?

Discussion in 'Trading' started by hermit_trader, Nov 30, 2002.

  1. I heard quite a lot of people said 10K isn't enough to trade. After trading for a few months, I feel it is OK. 10K for one T-Notes or NQ contract is very reasonable(some may even think it is too conservative). Even I have more than 50K in my a/c, sometimes I also trade one or two contracts only. This is because I feel the odds of the trade isn't good enough but still want to go for it, so I play small. One contract won't give you very good profit even you right for many times, but it is OK to start with such amount.
  2. Whatever you have ...
  3. You are right. But when I first learned how to trader, I was laughed by so many old guys that I didn't have enough money. I nearly gave it up. Fortunately, I moved ahead.
  4. i believe what is even more important than what you have amassed to place in your trading account is a steady income stream so you don't feel this is all i have and will have, and i have to make it with this or i am defeated.

    a steady income stream above living expenses to replenish your account should you draw down during the learning curve takes off you a lot of the psych pressure to immediately succeed, imo. that's what gives you the breathing room (unless of course you have oodles of cash to begin with, then the question becomes moot, doesn't it?)
  5. Magna

    Magna Administrator

    In practical terms that's not enough money to trade and make a living (assuming you're paying your own rent/mortgage, utilities, food, insurance, auto, etc. etc.) But is it enough to trade, and hopefully slowly build up? Sure.
  6. whowah


    If you make the assumption that you have an "advantage" in the game of trading then any amount to start will do, perhaps as little as five hundred dollars. I will also assume that you would size your bets accordingly and not overextend your bankroll.

    However if you do not have an advantage in the trading game no amount of money will be enough. Given enough time, eventually you will lose it all.
  7. There is almost always a way to position size for any account size. Without proper MM any account size is at risk.

    Good trading.
  8. But not for futures traders, particularly if some want to trade with as little as $2,000. There is a fundamental quantum of size= one futures contract. With stocks this is more correct, you can buy odd lots of shares, even one.
  9. I almost bought 1 share of ADSX the other day, but then I didn't do it, because the risk seemed too large for my account size.
  10. Brandonf

    Brandonf ET Sponsor

    I think it depends on what your goal is and where you live. For example if you live in Manhatten 100K a year is not too much. Where I live you can live like a king on 100K a year. Where my parents live you can live like a king on 50K a year, and where my grandparents are at you could live like a king for 30K a year.

    #10     Nov 30, 2002