Trading Stocks?

Question

How much money would one need or should need when trading and how does one get started trading stocks?

Any advice?

Answer 1

The more money a person has to invest, the better it is for that person.

THIS IS A S.E.C. regulation: To be a "day trader" or "scalper", one MUST HAVE AT ALL TIMES AT LEAST $25,000 U.S. cash in the trading account.

As soon as the balance goes below that amount, trading restrictions are applied. Those trading restrictions vary from broker-to-broker.

You can open a trading account with about $500 to $1,000.

With amounts less than $25,000, one should ask for to get approval to trade options, ask for a margin account and as "a speculator". Getting these designations permits the trader to do more different kinds of trades withg his/her money.

I haven't even scratched the surface. There are volumes more to learn about trading.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is ,my real last name!

Answer 2

stock market is first choice for the people who wish to make better money from the savings. Trade better make better is the best idea that works for stock market. If you are the first time investor then investment tutorial the best place for to. The tips and experiences being provided in tutorials are step-by-step guide for the first time user to be. How to trade in stocks is the best section that you may opt for. For further fundamentals you may seek other sections such as online trading, money making tips and so on. Also, experiences and updates by other traders also provide a firm base for stock trade.

I found Sogoinvest - the deep discount broker offering stocks trading at $3-$1. Also on the offer are fractional shares.

Answer 3

Ron Berue is correct with one exception. The rule is the NYSE and a NASD not the SEC.

True Day Trading can only be done in a Margin account and you have to keep a balance of at least $25,000 to be in compliance with NYSE and NASD, but some firms require more.


NOW read this if you never read another thing about day trading. http://www.sec.gov/investor/pubs/daytips.htm It lays the risks *WHICH ARE HUGE* out very well.

Also read this http://www.sec.gov/answers/daytrading.htm
And this it is a amendment to NYSE Rule 431 http://www.nyse.com/pdfs/im01-9Microsoft%20Word%20-%20Document%20in%2001-9.pdf

Answer 4

Read as much as you can. Start with;
Mastering the Trade by John Carter
The Disciplined Trader by Mark Douglas

These two books will give you a place to start.

Answer 5

You can get started for as little as $2,000 to open a margin account, but if you're interested in "trading" as oppossed to "investing," you should start with a minimum of $25,000.

A lot of web-based brokerages will enable you to "paper trade" and learn the ropes before committing real money. I heartily recommend this approach before you start risking real money. Try www.interactivebrokers.com or www.optionsxpress.com for starters.

And... good luck.

Answer 6

There's no minimum, but the commision fee's usually range from $5-30.