The #1 question we get asked and also for most, the biggest barrier to the world of trading stocks, how much money do you need to start with? We think its the biggest misconception about trading because most people think that you need a lot of money to make money. You don’t have to be one of those people. When you start reading books about trading you might always think the same thing and end up getting discouraged.
So how much do you actually need to open an account and start trading? The answer may surprise you but the minimum amount to start trading without limitations is $300. Is it really possible though to make money with only $300? That depends on many factors but most important is what kind of trader you want to be. There are many different styles of trading and the amount of money you have can effect what kind of trading you can do. Also most brokers offer margin. So depending on what amount you start with your broker may offer you more money to trade with. It can get complicating and to be honest, trading with margin can add more risk and stress. We can help you determine whats best for you at DTI.
You may have also heard of the pattern day trade rule (PDT). Most brokers within the U.S. require a minimum of 25k to day trade stocks with. If you have less than that, you will be restricted from selling stocks the same day you buy them(in its simplest terms, its a little more complicated than that). Avoiding the PDT rule gives you a huge advantage because there are many times that you buy a stock and it rips the day you buy it. If you’re under the PDT restriction then you won’t be able to sell it that day and hope that it holds its gains the following day. That’s where you can rely on DTI. With us you can start with any amount under 25k and start trading with no restrictions. Once you get over 25k, you can transfer back to a U.S. broker if you want.
Those are the minimums and restrictions that you need to consider when starting to trade. The next part is probably the hardest and that’s becoming a consistent and profitable trader. If you’re new to trading your next step should be learning how to read charts.
What you do from here will depend on how much money you start with. Many traders subscribe to newsletters. There are many to choose from and they all offer something different. Other traders learn one strategy and stick to it. Remember you will never be right 100% of the time, but winning more than losing is the only way to stay in the game.
Contact DTI today to speak with a trading specialist that will walk you through all the necessary steps and help you reach your goals with valuable tools and information.