Beginner’s Guide : How much money to invest in Stock Trading ?

How much money should I invest ? An important question that gets repeated by first timers when planning to start daytrading.

The common misconception is that you will need a large amount of capital to start trading in stocks. This article will help you realize  that it is wise to start with as little as possible. Please note that, we are talking about day trading in shares and not investment.

A beginner’s mistake that gets discussed most often on stock trading forums. About the beginner transferring all available funds to the trading account and loosing it.

“More than CAPITAL, You need to first invest TIME, “

Before you can master daytrading, “more than CAPITAL, You need to first invest TIME”. Your success does not depend on the amount of capital you bring in. What you learn through every mistakes made in your trading career is what counts.

Learning from mistakes means sacrificing. Sacrificing all or a major chunk of your initial funds while you are still learning the stock market.

Few first timers to the stock market are familiar with the term leveraging on stocks. Once you are in, you will learn daytrading is using leveraging to the most potential benefit.

How much to invest in daytrading

How much money do I need to start daytrading ?

Initial capital of 10,000 INR, is an ideal sum of money to open your trading account.

An amount of 10,000 INR in your trading account will give you the buying power of 1,00,000 INR. The Intraday leveraging facility from your broker lets you multiply your buying power.

The first 90 days is the cut off time where 80{323544ffa4e7a5aa23388d63e86002a095a70a0cd35f73644a238e7406151557} of the day traders will loose even their shirt and quit.

Your First goal should be to wade the tides of the markets and survive the market for the first 3 months loosing only as little as possible.

On completion of the first 3 months, you will learn a lot about the risks involved with daytrading.

The experience you gain during the first three months gives you the maturity to make an informed decision. The maturity required to make a self review to see if daytrading is right for you.

The First Goal should be to survive the above 3 months. To survive without loosing your initial capital or “loosing your marbles“.

If you do manage to survive, consider it a big accomplishment. Achieving this first goal is the hardest part towards becoming a successful daytrader.