How much money do you need to start trading (Class 17)
Summary
TLDRThis video script addresses the common query about the initial capital needed to start trading, emphasizing that it's not just about money but also knowledge and strategy. It shares the journey from a $36 account to over $800, highlighting the importance of demo trading to refine skills and strategies before risking real money. The speaker advises on the frequency of trading, the development of a personal strategy, and the significance of money and risk management, all while cautioning that the content is not financial advice but personal experience.
Takeaways
- 💰 Starting Capital: A trading account with $500 to $1000 is considered a reasonable starting point for beginners in the market.
- 📈 Growth Example: The script shares an example of turning $36 into over $800, illustrating the potential for growth with trading.
- 📚 Knowledge Over Capital: Emphasizes the importance of knowledge and skills over the amount of money for successful trading.
- 📊 Demo Trading: Recommends spending time on demo trading to avoid mistakes and build a profitable strategy before trading with real money.
- ⏱ Timeframe for Demo Trading: Suggests demo trading for a month to a year to find a consistently working strategy.
- 🚫 Avoid Overtrading: Advises against trading too frequently, recommending a few trades per week based on market opportunities.
- 🤔 Trading Misconceptions: Clarifies that making $100 per day is not a given and profitability depends on the trader's strategy and market conditions.
- 💼 Trading Strategy Development: Encourages the development of a personal trading strategy and the importance of confidence in one's approach.
- 🔐 Risk Management: Stresses the significance of money and risk management as a key differentiator between successful and unsuccessful traders.
- 🛑 Trading Psychology: Mentions that trading psychology will be covered in future classes, highlighting its importance in trading success.
- 🔄 Compounding Gains: Discusses the concept of scaling in and compounding gains once a winning strategy is established.
Q & A
What is the minimum amount of money suggested to start trading in the futures market?
-The script suggests that having a starting capital of $500 to $1000 should be enough to begin trading in the futures market, provided that the trader has the necessary skills and knowledge.
How did the speaker manage to turn $36 into $800 in their trading journey?
-The speaker started with $36 and managed to turn it into $800 by consistently making profits from trades, sometimes making 100% or more of the initial margin they were risking per trade.
What is the importance of demo trading before starting real trading?
-Demo trading is crucial as it allows traders to practice and develop a profitable strategy without risking real money. It helps in reducing mistakes when trading with real funds and is suggested to last from a month to a year.
How long should a trader spend on demo trading to find a working strategy?
-The time spent on demo trading can vary from a month to six months to a year, depending on when a trader finds a strategy that works consistently in a specific time frame.
What is the recommended frequency of trading for beginners?
-For beginners, it is suggested to trade less frequently, possibly taking two or three trades a week, rather than attempting to trade every single day.
Why is it not advisable to trade just because you want to trade?
-Trading just because you want to can lead to making trades without proper opportunities, which can result in losses. It's important to only trade when there is a clear opportunity in the market.
What is the role of money and risk management in trading success?
-Money and risk management are extremely important as they set traders apart from the losers and winners. Proper management can greatly impact the overall performance of a trading account.
How does the speaker emphasize the importance of confidence in trading?
-The speaker emphasizes that confidence in trading comes from spending time on a demo account and understanding the market dynamics, which helps in making informed decisions with real money.
What is the speaker's stance on following other traders on trading platforms?
-The speaker advises to follow other traders on platforms but to be cautious and not to take their advice as financial advice without doing one's own research.
What is the speaker's view on the role of trading strategy in making profits?
-The speaker believes that having a winning strategy is key to scaling in and compounding gains, as demonstrated by their journey from $36 to $800.
Why does the speaker mention the importance of not just trading and withdrawing?
-The speaker suggests that continuous trading and withdrawing can disrupt the compounding process of profits, and it's important to have a strategy for managing earnings from trading.
Outlines
💰 Starting Capital for Trading
This paragraph discusses the common question of how much money is needed to start trading, emphasizing that the actual amount required is less important than the knowledge and skills one possesses. The speaker shares their experience of growing a $36 account to over $800, highlighting the importance of demo trading to develop a profitable strategy and avoid common pitfalls. The recommended starting capital is between $500 to $1000, with the caveat that traders must be equipped with the necessary skills and should not overtrade. The speaker also warns against trading out of desperation and stresses the importance of recognizing and capitalizing on genuine market opportunities.
📊 Trading Confidence and Risk Management
The second paragraph focuses on the importance of confidence in trading and the necessity of risk management. The speaker shares insights from their personal trading experience, including the benefits of practicing on a demo account before trading with real money. They discuss the high-risk nature of leveraged trading and the comfort gained from being adept at trading on a sports account, which involves buying low and selling high. The speaker also touches on the psychological aspects of trading, such as the impact of money and risk management on the success of a trader's account. They stress the importance of doing one's own research and not blindly following advice, concluding with a teaser for the next class on trading derivatives on decentralized protocols.
Mindmap
Keywords
💡Trading
💡Futures Market
💡Demo Trading
💡Account Balance
💡Profitability
💡Risk Management
💡Leverage
💡Trading Strategy
💡Psychology
💡Overtrading
💡Compounding Gains
Highlights
The initial capital needed to start trading in the futures market is suggested to be between $500 to $1000.
Having the required skills for profitability is emphasized over the amount of money for starting trading.
The speaker's personal journey from $36 to over $800 showcases the potential of trading with a small initial investment.
Demo trading is highlighted as a crucial step before live trading to develop and test trading strategies.
The duration for demo trading can range from a month to a year to find a consistently working strategy.
The importance of not overtrading and only trading when there is a clear opportunity in the market is discussed.
The misconception of needing to make $100 per day is debunked, emphasizing the importance of realistic expectations.
The speaker shares personal experience and emphasizes the value of learning to trade independently.
Developing one's own trading strategy is presented as key to being profitable in the market.
The role of experience in trading success is highlighted, with the speaker noting years of personal trading history.
The importance of confidence in trading, gained through demo trading, is underscored.
The speaker warns against listening to gurus or materials that may not be applicable to real trading scenarios.
The necessity of money and risk management as a fundamental part of successful trading is stressed.
The psychological aspect of trading and its impact on an individual's trading performance is mentioned.
The speaker shares insights on trading with leverage and the importance of understanding market dynamics.
A reminder that the content provided is not financial advice, and individuals should do their own research is given.
The potential for scaling and compounding gains with a winning strategy is discussed, illustrating the growth from a small initial investment.
The next class's focus on trading derivatives on decentralized protocols is previewed as a continuation of the trading education.
Transcripts
all right so how much money do you need
to actually start trading when we
started this video series we started
with only 36 dollars and we have since
turned that into 800 or at least above
800 so how much money do you need to
start trading that question has been
asked more than 20 million times on the
internet and it actually makes sense
people are curious to know how much
money do they need to deposit to their
broker or their trading account to
actually start trading and making money
trading the futures market now maybe the
question should be how much of knowledge
do you have to actually start trading
and be consistently profitable on the
market and to answer that question we
have to dive into the whiteboard and
look at all these bullet points that
i've created for you let's get started
all right so how much money do you need
to start trading well if you have a 500
account
to 1000
this should be enough for you to
actually start trading on the market
obviously
you need to make sure that you have all
the skills that are required for you to
actually be profitable on the market
that's why demo trading is a next key
point that we want to talk about but the
reason why i'm having 500 to a thousand
bucks is simply because you know that's
a reasonable amount to start with now if
you've been watching throughout this
course you realize that we started with
36 dollars
and as of recording this video we've
since tended to 800 dollars so you can
see 36 dollars to 800 is a huge amount
right but the reason why we're able to
be successful now if you've been
watching throughout this course you
realize that we've been closing you know
sometimes hundred dollars per trade even
though we started with 36 dollars so
sometimes we'll make 200 150 100
of the initial amount that we're
actually risking or our initial margin
that we're actually risking so in order
for you to be consistently profitable on
the market you need to first spend some
time
demo trading now maybe you also
wondering how long should you be demo
trading for well anything from you know
a month to six months to a year until we
really find a strategy that seems to be
working you know almost all the time in
a specific time frame depending on what
what type of a trader you are so spend
some time demonstrating checklist 14 of
this video series where you can actually
demonstrate cryptocurrencies on the
futures market or derivatives market so
make sure that you spend some time on
class number 14 and actually
the more time you spend on demo trading
the less mistake you'll make on a real
account because right here when you're
trading your real money you don't want
to be risking or making too many
mistakes because
in that case you can actually blow up
your entire account and ban everything
all right so how often should you trade
again you get this misconception
by most traders that you know make
hundred dollars per day
it's not like that because if you're
just getting started it's less likely
that you'll be profitable trading each
and every single day so you may find
that sometimes you're taking maybe two
or three trades a week which should be
good enough i mean if you make hundred
percent a week or whatever the case may
be you should be profitable on your 500
account you can turn that to 2500 to
even you know five thousand dollars so
really take some time demo trading and
don't over trade only trade when you see
an opportunity in the markets don't
trade because you want to trade that's
the reason why actually people lose a
lot of money because they trading to pay
rent or they behind on their mortgage
whatever the case may be and they begin
to see trading opportunities that do not
exist so the more time you actually
spend you know outside of the market and
watching and that's when you actually
get to see a very very good trading
opportunities obviously if you do
develop your own trading strategy that
will actually work so how much money can
you make already i showed you that from
a 36 dollar account we've tended to 800
obviously that takes a lot of experience
i've been doing this for a very long
time i've been doing it for years and
luckily for me and i was never touched
by anyone because what i found is that
most of
these gurus or material online that
teaches you how to trade
they teaching you you know the good
basics but those things are not
applicable when you're actually trading
on a real account so that's what i found
so i'm actually glad that i learned to
trade by myself again i am not you know
a pro trader i'm not the master of
or the jack of all trades i don't know
if that's how they say it but i've
learned i was privileged enough to
actually learn and understand everything
and how everything works and trust me if
i can learn you could you can probably
learn it too that's why i created this
entire course to help you uh by fast
forwarding that pace of learning again
i'm not saying skip
you know by fast forwarding i'm not
saying you should be skipping some sort
of like uh lessons within the course or
within your trading journey also follow
other people within these platforms that
are doing the very same things but just
be careful when you're listening to
people again none of these things are
financial advice i'm just sharing with
you what i do when i'm actually trading
again to be actually profitable when you
trade you need to be very confident
that's why you know it's very important
to actually spend some time
trading on a sport account because when
you're trading with leverage they you
know they're high risk but when you're
trading on a sport account unfortunately
on a sport account you can short the
market so
that's why
you know made me very comfortable on the
markets because before i traded the
futures market i was very good trading
on a sports account again on a sport
account you'll buy low and sell high
that's basically just what you're doing
and maybe if you wanted to short the
market you can bring that on leverage
but with a lower leverage maybe one to
two x and take advantage of shorting the
market but when you're trading on a
sports account technically
you're not losing unless obviously you
you're buying like a meme coin or
anything like that because
you know even if the price can drop but
it will most likely go and retest their
previous highs so that you can break
even and all that stuff so spend some
time you know on a sports account get
comfortable with sell orders limit
orders and all that stuff money and risk
management should have probably been the
number one on this list because it's
extremely important for those of you who
are just getting started to get your
money right to get your mindset right
again trading psychology is something
that we're going to be touching on in
future classes as well so money and risk
management really set you apart when it
comes to you know the losers and the
winners because that's what's going to
have a great impact on your overall
account so make sure that you check out
plus 15 plus 16 i believe that's where
we go in depth with understanding money
and risk management and how i manage my
money and my entire trading account
again this is not financial advice i
just share with you what i'm doing on my
personal capacity so always do your own
research don't just listen to me so
to answer this question more directly
how much money do you need to start
trading
500
is a reasonable account for you to
actually start making money again if you
are very experienced you can take 500 to
10 000 even hundred thousand dollars i
mean we showed you here with 36 dollars
and turning that into 800 i don't know
how many percentages that but that
actually shows that once you have a
winning strategy then you can obviously
start scaling in and compounding your
gains and do not just trade and withdraw
again not financial advice you do what
you want to do with your own money in
the next class we go in-depth with
understanding you know trading the
derivatives markets or rather the
futures markets on a decentralized
trading protocols so go ahead and click
on the class coming up next i'll see you
there goodbye for now peace
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