I'm learning to trade slowly and gradually. If one was to skip the prop shop route altogether (not saying its the best thing to do, just IF i was), what is the minimum capital I should have if I wanted to position trade and swing trade equities. Would 200k be sufficient ? More ? Less ? I know it depends on the person, but I'm a complete newbie here. Also, do most pro's trade on margin ?
In general it takes about $1-$3million trading capital to take part in Pairs, opening only, mergers, etc., but you can put up $20K or so and use our money to trade with, keep 100% of your profits. Keep the rest of the money safe. FYI, Don
200k principal is much larger than most traders start with. the sec requires you maintain a balance of 25k for compliance giving you the ability to trade daily. it also comes down to your need to survive off generated profits.. if you don't need to generate funds initially to pay your monthly liabilities then you might start at trading one trade at a time 100shares to refine your trading style. It is not about the money but being correct in your assumptions. adding a zero at a later time then becomes more of a comfort level allowing one to maximize on the trade. also 100shares is not going to deplete your principal and you can chalk it up to your education expense. our traders here on a 25-30k account generate 300-800 dollars daily. You may also want to study a few basic option strategies ie straddle ..and play the stock in between to min a losses. You may also want to research the stocks to know its beta and if/how many times it has split so you understand how the stock breathes otherwise young traders get caught up watching the money versus being comfortable with the trade. If I were young again, personally I would do as Don from Bright has suggested and use other people's money.. preservation of your capitial should be your first objective..making money your second. here I remind the traders that having a money goal is dangerous..just trade..trade staying within your risk management will produce profits..and don't forget to leave some money on the table I would also assume that going with someone like Don would be beneficial as you would have some support and op's to different trading style.? good luck, knock em dead w