See every trade made live on screen with our desktop sharing trade room. Learn to trade like a pro . Click here for details on how to get started for free.
This was a question that was asked to me on Quora but a question I get asked many times ” Can people get started in trading, and be successful, with minimal funds. Below is the full question and answer. Also feel free to follow me on Quora here
Q: I am 23 years old and would like to start a business with a capital of 10,000$. Day trading is the business option that I have chosen. How should I proceed?
A: LOL you must be scared Sh*tless from all the negative answers below. Sure day
trading can be challenging but name one start up business thats not. One lesson you
have already learned here at your young age is that there are a thousand people to
quickly judge your idea and capabilities and very few that will encourage you.
First let me answer the most important question. With 10,000 you will fall under the
SEC regulation pattern day trade rule also known as PDT. PDT designation is for
traders who trade four or more day trades (opening and closing the same position in
the same day) over a five-day period. An individual deemed to be a pattern day
trader must hold a minimum of $25,000 in equity in their account before being
allowed to day trade. This $25,000 equity amount must be maintained in the account
at all times.
You solution to this PDT rule would be to join a Hedge Fund or a prop firm. These
places will not only provide you funds to trade on but they will also provide
training to you. Not only that but these firms have protective risk parameters set
for you so you wont “blow up” your account. Their job is to protect your capital,
not feed you to the wolves like the popular online retail brokers do. In my opinion
this would be the best way to proceed from this point. You will have a direct
relationship with proven winning traders that will pass their knowledge on to you,
not a customer service rep that has to “go get the manager”
Lets now talk about some good stuff! As an operator of a live trade room and a hedge
fund I can tell you there are many people your age who have started with less than
10k and within a few months are making in excess of 15,000 pr month and a select few
are millionaires before 26. I can also tell you that there are several that blow
through that money in a week. The difference is the ones who educate themselves,
commit to the learning process and simply refuse to be held down will succeed. The
whiners, excuse makers and pikers will not last but then again they wont make it
anywhere else either. I can not stress the education part enough. The ones who
invest in education first have a much higher success rate, ten fold.
You have one unbelievable advantage right now and that is your age.You have time on
your side and no matter what the outcome may be for you, you will learn something
that will stick with you forever. Your youth and hunger can drive you to
unimaginable success. Make no mistake to be successful you will have to be driven
and study like mad but if you do that chances are you will have a life that others
can only dream of!
Doug
The original write up can be read here
You might enjoy these other posts
Is Emotional Capital The Worst Capital?
How Fast Can You Turn Your Trading Around
5 Huge Losers That Became Successful
What I Learned From Grenadeing My Account
5 Things You Must Do To Be Successful
5 Of The Wealthiest Trades In The World
* TheLincolnList.com website is for educational use only. Any opinions, news, research, analysis, prices, tweets, posts or other information contained on this website or any hosted public/social outlet is provided as general market commentary, and does not constitute as investment advice or a solicitation to buy or sell any security of any type. TheLincolnList.com does not take into account your personal circumstances so please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general information provided by TheLincolnList.com
Trading stocks has large potential rewards but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest or trade the financial markets. Don’t trade with money you can’t afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. For the avoidance of any doubt, TheLincolnList.com does not hold itself as a Trading Adviser (CFP or CFA).Given this representation, all information and material provided by TheLincolnList is for educational purposes only and should not be considered specific investment advice.