Day Trading Starting Capital
How Much Is Enough?
Day trading is expensive and can be quite overwhelming at times. Aspiring traders need to be aware of the right mix of risks, rewards, strategies, and capital to become successful. Traders often come up with questions like the required day trading starting capital or how much capital do I need to start day trading as there is no defined and fixed amount.
It is often required for day traders to start day trading with low capital. It is because day trading is very risky and new traders may end up losing all their money due to lack of knowledge, experience, and required skills. Even if a day trader makes ten profitable trades, a single losing trade is enough to make the trader out of position and wipe out the entire capital.
On the other hand, too little capital will also restrict the moves of new traders and not give them enough opportunities to explore growth. Leverage is a viable alternative; however, it is a double-edged sword and can amplify risks as much as it increases the potential of profits. Therefore, traders must know of the optimum day trading starting capital.
Most Day Traders Lose a Lot of Money
Day trading is an alluring business. Many newbies think that it is the best way to make quick money. The reality is, however, entirely different. Only 5% of day traders end up being successful and profitable while the remaining 95% are unable to climb up the learning curve and lose most of their starting capital.
Is There A Way Out?
There are no shortcuts to profitable day trading. Day traders must follow the proper route towards day trading, the one that starts with the right education. Day trading starting capital must, ideally, be the capital invested in obtaining good and full-rounded education. So, to answer how much capital do you need to start day trading; the capital can be as low as $500 to pay for an optimized education and training course.
Education is the most significant aspect of learning day trading. New traders must arm themselves with the basics of trading, including the fundamental and technical aspects, trading psychology, and the study of technical indicators to enter and stay in the trading business for long-term.
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How Much Capital To Start Day Trading
Trading is not a profession that can be learned in one day or one week. It takes months of dedication, hard work, training, execution, and right education. Thus, the most significant investment to start day trading is the investment in gaining the right training and education.
With Tradenet’s education packages, new traders can start their trading journey with capital as less as $500. Aspiring traders can begin by enrolling themselves in the Intro Program of Tradenet. The program costs $500 and includes a self-study course with an online trading course, numerous learning units, training videos, interactive sessions and tests, and a service duration of 12 months. The course also entitles the students to access to live trading room of Tradenet, the best-selling trading book, and a demo trading account.
Thus, new traders not only get to learn the theoretical aspects of trading but also practice and execute the practical nuances with top traders. The live trading chat room allows them to mirror live trades of master traders like Meir Barak and Scott Malatesta, ask questions, when required, and learn better trading strategies.
Additionally, traders will also get to access a demo training account for 14 days to get familiar with the trading platforms and advanced trading features. They can test all the trading platform functions before trading live with real capital.
The students of the education packages at Tradenet are also eligible to apply for private firm funded accounts. When traders feel prepared enough, they can also apply for the Tradenet Trading Challenge. The ones who qualify, receive a $10,000 demo trading account and have to generate a $500 net profit to pass by the end of the challenge. Traders who pass the challenge, adhering to the terms and conditions, win access to a $14,000 funded account.
Thus, the journey that starts with an education package at Tradenet, can lead to a funded account with no risks and up to 70% profit split. It is accompanied by live mentoring from top traders and access to learning videos, books, and study courses by Tradenet.
As a bottom line, the amount of day trading starting capital boils down to the simple $500 cost of the Tradenet education package. Traders with excellent skills and potential do not need more than this small amount to be able to start trading without any risks through a funded account.