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Day Trading Basics - How Much Is Needed To Start A Trading Account?
To learn more visit http://daytradervideo.com Again the topic of this video is day trading
basics. Therefore anyone with more experience can skip this altogether. In the last video
we talked about how much money was required to start trading and we left off at how much
we actually need to deposit in our trading account. I specifically left this off because
there are quite a few factors that affect just how much will be required for your trading
account. So, let's begin first with asking yourself
a few questions. Once you know the answers to these questions you'll have a better idea
of how to determine just how much exactly you'll need and you'll understand day trading
basics. The first few questions are:
Are you going to begin doing this full time? or
Will you still have another job while you learn how to do this?
These questions are pretty important because the answer will determine how aggressive you
can be with your money management. If you are planning to do this full time then
you're going to need enough to have six months of reserves and a healthy amount per contract
which we will discuss below. So, overall you're going to fall on the very conservative end
of the spectrum and the reason being is that you are giving yourself a shot and if it doesn't
work out you're going to need to find another way o producing income for yourself.
You can even take this a step further and be even more conservative by considering if
you are still young and whether or not you're just supporting yourself or an entire family. If the answers
to both of those are yet then you will need even more money to set aside.
If you have another job well then you can be more aggressive because you can afford
to reload your account if you manage to lose some money.
The second thing that you'll need to ask yourself is what kind of personality do you have? Are
you more
on the aggressive side or conservative side. If the answer is more aggressive then you
can probably get away with as little as $2.5k per contract. If however you have a more conservative
type of personality then you'll want to go for a safe $5k per contract. Again these are
estimates as I have students that started with as little as $2.5k. Hope you enjoyed
this episode teaching you day trading basics.