How Much Money Need To Start Trading I Beginners I Stock Market Ideas

How Much Money Need To Start Trading?

What's going on everyone welcome back to another Post. In this post, I'm going to talk about a question that a lot of people have asked me how much money should I start when I get started in trading?

1. Account Size

• So when you get started in trading obviously the more money you put in the more money you're gonna make a right but the more money you put in the more risk you're probably gonna take the more risk you take the more money you're going to lose that's the down the bottom line now when you start out me personally.

•  I recommend everyone starting out with small amounts of money be it one to Five to Ten thousand Rupees and not anything more I do not put anything more the reason I say use ten thousand maximum.

•  Because when you start out right you want to fill out the market and you want to feel out how your emotions play out you wouldn't see how your emotion step in and you want to work on that now.

        For example:

•  If your someone that has been paper trading and paper trading once again for people that don't know is when you trade the real markets with fake money so you're kind of just practicing which is great it's a great way to start. 

2. Demo Trading Account.

• But paper trading is not the same as trading with real money you could paper trade right now and you can do phenomenally well but as soon as you're putting real money you're gonna notice your trading is going to take a major shift and you're gonna go oh what just happened the reason for that is trading is all a psychology game it involves very high emotions.

• Those emotions step in when you put in real money so you can transition from paper money and you can say wow I've been trading with ten or twenty or thirty thousand in paper money and I've been doing well.

•  So what I'm gonna do is I'm gonna open up a real account with ten or twenty or thirty thousand and I'm gonna fund it why because I'm paper trading I've been doing well now let me tell you with that that yes paper trading helps you to an extent. 

• But when you put in real money it becomes a whole different game so now with that being said the whole goal is when you start out with less, I would recommend Five thousand not more than ten thousand.

• Right the whole goal is for you to kind of figure out where your motion stepping the whole goal is for you to figure out when you put in real money what happens do you get fearful do you get greedy right do you get hopeful.

• What happens what emotion steps in so you want to figure that emotion part-out by putting money in why because I'm paper trading you're not gonna understand the full concept you're only going to understand the full concept when you put in real money. 

3. Expectation of Trading.

• So once again how much money should you start out with the money you should start out with my opinion 10000 I think it's a good number now the second thing does not put in money that you need.

• So for example if you are starting with 10000 and let's say in four months or five months you need that ten thousand for whatever cause it may be it college be a rent better bike anything doesn't put it in the market just don't why because now every trade you make you're going to make it based off emotion. 

• Because you're gonna think about that 10grand and you're gonna think about how you may need it in two months how you may need it in three months and that's going to affect your trading in a very negative way. 

      For example,

•  let's say you you need the ten grand for rent in a month or two months three months right and you automatically present yourself this idea that hey I'm gonna put in 10grand and I'm gonna double my money which is obviously right the moment you put that 10 grand.  

• The trade goes against you you're gonna say oh man you can start panicking because now you're like oh I need this money so you're not going to actually trust your setup you're not actually going to trust your plan and you're gonna react off emotion so whatever money you do put in make sure it's money you don't really need in the next few months.

 4.Comfort Zone.

• It's money you can keep in the market and actually trade with and be comfortable with and the money once again that you put in to make sure it's not a lot make sure ten thousand not more yes obviously once you get better at trading you can slowly add more and more money.

• But when you start out, in my opinion, start out with less thank you so much for Reading guys please like and subscribe to my Page. If you guys have any questions comment down below I will see you guys in the next Post.

                                         Thank you!

 Radhakishan Damani's holdings and portfolio in 2020