oh, yeah, and with the other half, $50,000 allow for the commute expense, lunch expense, machine / software / training / chatroom expenses, cell phone and high speed access expenses, oh yeah, and with the other half, allow for the trades slippage, trade throughs trade failures where you breakeven except for commissions trade gains that don't yield all that could have been earned... yeah $250,000 should be enough.... now that really raises the bar on the discussion,,, where did we start at? $5,000
If he starts trading futures (or any other highly levered instrument) with 5K his risk of ruin (RoR) is probably 95%. If he trades with less leverage with his 5K then he has a chance to lower his RoR to about 75%, and lengthen his learning time from days/weeks to month/years. Not good odds of success but there is always a chance.
It may very well be that most people starting with a small account don't end up making it, but IMHO this has nothing to do with the actual amount of money. Rather it is because most of those people didn't have the correct preparation/education for trading, where as those with more money will more often spend more money on getting educated. Therefore: someone with $5000 has almost the exact same chances of making it as someone with $50,000 who has the same education that he does. If they know what they're doing or have someone good coaching them, they'll both make it. If not, they both won't. All the best, Phil
True. The point has got lost on this thread. You can dick away $100,000 as easily as $5000. It is about wanting to win. Start with $5000. A small amount tells you continuously you cannot afford to lose much. It is very very self disciplining to work a small amount into a bigger amount. It is a test of yourself. Go to it.
Have you ever played poker where one guy has a huge bankroll and everyone else at the table has a small bankroll? The big fish can push the little fish around because one wrong move by a little fish means he is out. Of course, one or two good breaks and the little fish isn't so little anymore... But in any endeavor involving money there is a minimum critical mass necessary to have a good chance of a successful campaign.
His experience is probably more typical than not for *successful* traders. Yes, one can trade with $5,000, but shouldn't expect to make enough to live on. Trade the QQQ, SPY, or some other non-leveraged vehicle and learn the process. Don't be too disappointed if you've made little progress after several years. The experience will either "keep energizing you to do better" until you get it, or bust you out and make you quit.