stock market is worthy???

Question

how much i can earn approximately with an investment of $2000 to the stock market and play daily buy and sell

Answer 1

First of all, SEC regulations require you to maintain a balance of at least $25,000 if you do three or more day trades (buying and selling the same security on the same day) in any five-day period. Therefore, with less than $25,000, you would have to hold overnight, which doesn't seem to fit your objectives.

However, assuming you did hold overnight, the problem is that round lots of 100 shares at a time sell much better than 50 or 25 shares. With $2,000, you could only buy 40 shares of a $50 stock. $2,000 would almost force you to buy penny stocks - but only 10% of penny stocks succeed, while 90% go nowhere or go bankrupt. With only $2,000, you wouldn't even have access to margin (most brokerages require a minimum of $5,000 for a margin account).

Let's assume, however, you buy slightly lower-priced stocks (there are many good ones at $20-30), and hold them at least a day.

As a beginner, unless you get lucky, I guarantee that you will lose 25-50% of your money in the first year. It doesn't matter what you buy, or who you listen to - unless you're mentally, emotionally, and psychologically prepared - you will lose money. If it were that easy to make money, as everyone says, everyone who do it.

On the other hand, once you've mastered a few simple strategies, in a strong bull market you can get pretty lucky and double your money every 6 months. There are traders who do better than this, but they are mostly day traders (day traders make and lose money faster than anyone else). Also research on the web for Nicolas Darvas, Jesse Livermore, William O'Neill, and Dan Zanger, or read Stock Market Wizards by Jack D. Schwager for inspiration.

I would suggest taking some of the $2,000 and buying books on the style of investing that most appeals to you (in general, either value or growth).

Lastly, avoid newsletters, tips, spam e-mails, investment services, and any company that offers you more than 2x leverage overnight and 4x intraday (any company offering better than this is not a legitimate brokerage, but something called a "bucket shop" whose mission is to bankrupt you as fast as possible).

NEVER ENTER THE STOCK MARKET TO GET RICH QUICK.

Answer 2

The stock market has had a huge move up since March while the economy has only taken baby steps towards recovery. The US is in record setting deficit territory and the projections for future debt levels keeps increasing. I totally disagree with Lexi that there isn't much risk in large stable stocks. If losing 70% in two years didn't provide a lesson, she wasn't paying attention. This "recession" may well turn out to be more of a global re balancing, with the USA becoming a smaller player in the global economy and India, China, Brazil, Australia and other developing economies becoming the growth engines of the world. In the US, Japan, and Europe, we have declining work ethics, bloated overspending governments and aging populations. The risk for US stocks and the US dollar stay high for the foreseeable future. Concentrate on your college studies and maybe keep some internationally diversified mutual funds for money not needed in the next 5 years. Trying to short term trade with money you will need for books and tuition and living expenses would be a big mistake.

Answer 3

The top day traders can double their capital in 1-2 months but you have to get involved in the market for at least 2-3 years b4 you can do this.

7 reasons you lose in day trade:

Failure to follow your gut instinct, instead of listening to others who are giving you their advice which might be right for them, but not right for you.


Failure to realize that this is a "capital appreciation" game ONLY. There is no other purpose, beyond growing your capital.


Failure to be smart when the market gets stupid. This means that you keep your cool, your emotions in check, and keep this game in perspective. Failure to get out when you should also can ruin your profits in the blink of an eye. "When" you should get out is up to you.


Failure to double down when a stock you hold goes lower, but you believe or have a feeling of certainty it will recover. Doubling down means buying more when a stock goes lower, so that you can make more when it returns to the original level you may have bought it at.


Failure to pay attention to the message boards, believing they are all nonsense. Bzzzt, try again. Like all things, take the best stuff and forget the rest. The web based message boards are a great place to gauge the emotion of the market for a particular stock.


Failure to follow a system, making decisions on random changes and failure to execute trades when your system is telling you to preserve capital by cutting a loss short.


Failure to take this game very seriously. This is a business or can be. That includes doing your research, studying, stalking wealth by becoming the best expert you can be.

Answer 4

No-one makes money by playing daily buy and sell, except by pure dumb luck. If you throw enough darts at the wall, one of them will hit the bullseye! You just don't hear all the day-traders who lost their money bragging about it.

Think about it, if you really could make cash day-trading, that would imply the market was something less than 'efficient', and the whole capitalist model would collapse, along with Western Civilization!

With an investment of $2000 into a broad base of market opportunities, you can expect to reliably double your money every 6-10 years.

Answer 5

The stock market is worthy to loose your money and peace of mind.

Answer 6

Not much, buying and selling daily you'll most likely end up losing money due to the broker fees.

Answer 7

You need at least $25,000.00 USD to daytrade by Law.