Hi, I have probably lower than average starting funds of around 5k. What is the best thing for me to trade? I have been paper trading for a year and think im ready to concentrate full time. Should i focus only on cheapers stocks, trade futures, what?? your advice would be appreciated. thanks
I would recommend options on corn. Pretty low cost & lets you get your feet wet. Educate yourself regardless of what you choose.
Open an account with Interactive broker or any other cheap commision broker and trade the spy or dia. Do like 20 shares at a time and gradually move up. Or you can do forex. $5k is perfect size to take a plunge into forex. Day trading across forex, stocks, and futures is pretty much same aside from little idiocycracies.
i already opened up a trading account with a direct access broker.... i have traded live for about 8 months, but took a little break to brush up my skills and i feel that this time i am way more mentally prepared. im setting a goal of $100 a day for starters...in the past ive only traded stocks and a lil of the s&p futures...
brush up does not cut it. You need to know exactly how to make money. It is a jungle outthere. Meat eats meat, and only meat. Read RFT's financialtraders blog for more.
Do you plan on using leverage? 5k is workable as long as you take it really slow. If you daily target is $100 then what is your max daily drawdown?
no i will not be using leverage. u make a good point...if my goal is 100 then doesnt leave me with much stop limit per day for this plan to be reasonable.. i think i'll have a stop at $50 per day for starters...not including fees
I do not think $5,000.00 is lower than average...you can really trade anything and make serious $$$...it really ALL DEPENDS on your appetite for risk/reward...you can DAYTRADE many products with your $5k Some real thoughts... 1-yea, you can really do nothing with stocks with $5k 2-can do something with QQQQ or SPY options though 3-of course emini SP, emini Nasdaq or mini Dow 4-Gold 5-Forex..find a good credible broker Also...I've found that paper trading or demo/sim trading is NOTHING like real/live trading with your real hard earned cash...something to think about... do not despise your 5k...you can make some serious cash with it!!!. ***I would suggest knowing where you want to be per day $$$ and get literally CONSUMED with 1 stock, 1 option, 1 future, 1 Forex currency cross, 1 commodity etc.. these are just my thoughts and do not trade off of them...oh yea...for you to paper trade for 1 year shows you have great self-control...stay with the self-control...
I dont understand how you are ready if you don't have an instrument selected. Do you expect to make a decision on what to trade and then because you did one year of paper/live trading (on whatever random instrument) you will be able to pick up anything and start making 100 a day? I am confused