Day Trading for beginners, part 1: venture capital to get started on day Trading

Probably you are quite well in life outside the trading day so let's help losing your day trading newbie status as soon as possible.

Let's start with how much money you need.Ultimately, no matter How curiosity or enthusiastic may about creating $ 100 k + per year as a day trader, you need a few dollars to get off the ground; it takes money to make money, as the old saying goes.

And if you have the necessary risk capital available (through venture capital money might be able to miss, no money you need to pay for the mortgage or your kids education), and then the rest is simple.

Remember: venture capital is money you may be able to lose. without exception! If it has gone, it went and I still placing food on the table, living in your current residence and otherwise pay all the Bills. If you break this rule you're guaranteed to fail in day trading.

So how much capital is enough?

I day trade futures himself.I think you'll need at least $ 5,000 in risk capital available (preferably $ 25,000) to perform more Futures occupations with your own money.You can make $ 100 k you first year starting with $ 5,000, but is unlikely.Therefore, I recommend 25,000 $ as a starting point if you're really serious and If you're in stock, you will need still more capital unless you're day trading penny stocks. a minor your account limits to trading the dollar higher costs in inventories and this is not good.Also, there is no such leverage stocks as futures traders, which also limits how you can make assimilation, of course, you can get some leverage day trading options on stocks.This will reduce your capital requirements but $ 5,000 still is the minimum that would commit. otherwise, you're simply too vulnerable to getting rid of the trading day game before you even get started.

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Brian Heyliger is one day successful futures and swing trader who specializes in the P & S e-mini, Treasury bonds and other markets with high-probability, high-profit.

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Article submitted on: November 06, 2010

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