How much money do you need to start trading (Class 17)

Summary

This 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

00:00

💰 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.

05:01

📊 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.

Keywords

💡Trading

Trading refers to the act of buying and selling financial instruments such as stocks, futures, or currencies. In the context of the video, trading is the core activity that the speaker is discussing, emphasizing the need for knowledge and strategy to be consistently profitable. The video script mentions starting with a small amount and growing it through successful trading.

💡Futures Market

The futures market is a financial exchange where participants can buy and sell standardized contracts for the future delivery of an asset at a predetermined price. The video script discusses the importance of understanding the futures market when considering starting a trading career and the potential for profitability within it.

💡Demo Trading

Demo trading is a practice where traders use virtual money to simulate real trading scenarios without risking actual capital. The script highlights the importance of demo trading as a means to develop and test trading strategies before applying them with real money.

💡Account Balance

Account balance refers to the total amount of money available in a trading account. The video script suggests that a balance of $500 to $1000 is a reasonable starting point for trading, underlining the importance of having sufficient funds to engage in trading activities.

💡Profitability

Profitability in the context of trading means the ability to generate a profit consistently. The speaker emphasizes that having a profitable trading strategy is more important than the amount of money one starts with, as seen in the example of turning $36 into $800.

💡Risk Management

Risk management is the process of identifying, assessing, and controlling risks involved in trading. The script mentions that proper risk management is crucial for distinguishing between successful and unsuccessful traders, highlighting its importance in the overall trading strategy.

💡Leverage

Leverage in trading allows traders to control a larger position in the market with a smaller amount of capital. The video script discusses the benefits and risks associated with trading on leverage, especially when starting out with a small account balance.

💡Trading Strategy

A trading strategy is a specific approach or plan traders use to make decisions in the market. The video script stresses the importance of developing a personal trading strategy that works and spending time on demo trading to refine it.

💡Psychology

Trading psychology refers to the emotional and psychological factors that influence trading decisions. The script briefly mentions that trading psychology will be covered in future classes, indicating its importance in maintaining a disciplined approach to trading.

💡Overtrading

Overtrading is the act of making too many trades in a short period, often driven by emotions rather than a solid strategy. The video warns against overtrading, suggesting that it can lead to unnecessary risks and potential losses.

💡Compounding Gains

Compounding gains is the process of reinvesting profits to earn returns on returns, which can accelerate the growth of an investment. The script uses the example of turning $36 into $800 to illustrate the power of compounding gains in trading.

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