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How much MONEY do you need to Start Day Trading? (How to Day Trade for Beginners) - YouTube
Channel: Humbled Trader
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how much money do you need to start day
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trading this is perhaps one of the most
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commonly asked questions from beginner
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traders on my youtube channel and I'm
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just gonna break it to you right here
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day trading it's not as easy as opening
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a five hundred dollar Robin Hood account
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going on Wall Street bets on reddit or
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following some chatroom alerts or
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signals to grow it to five hundred
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thousand dollars in a month like reality
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just doesn't work like that
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so in this video I'm gonna be talking
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about realistically how much money do
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you need to start day trading well you
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should focus on with your small account
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when you first get started and also a
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realistic time frame and goals you
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should set for yourself as a brand-new
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trader entering the markets as always
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these videos take me a long time to make
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that's the time I could have spent
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cruising around my Lambos chillin on the
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beach and banking on my toilet so if you
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don't mind please remember to drop a
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like on the video I'd really appreciate
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you my friends like I mentioned many
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times before on this channel day trading
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is a business it's not a hobby and it's
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definitely not gambling well I mean it
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would be gambling if you're just
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throwing your money into buying whatever
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low float looks hot and sexy at high all
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that they break out when it's already up
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to hundred percent on the day since day
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trading is a business just like any
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business it's gonna require a lot of
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upfront capital to start and having a
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grow slowly so day trading is the same
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way
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it takes money to start I recommend
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opening an account with at least four to
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five thousand dollars that's a small
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account if you have less that's totally
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fine we'll talk more about some other
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options for you later on so hold on
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tight but just because now that you have
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an account open without four thousand
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dollars it doesn't mean you should start
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trading life and trying to make money
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right away you will go after you funded
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a small account shouldn't be trying to
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double or quadruple or make any
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money at all in fact you should treat
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that four or five thousand dollars as
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market tuition and expects that you
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probably lose at least fifty percent if
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not all of it slowly because just like
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I've mentioned previously as a beginner
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just starting to trade your focus should
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be on learning and observing the markets
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not trying to make money there's
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absolutely no way a beginner trader is
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really gonna sit there and learn about
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planning your trades risk management
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reading price action on the charts and
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learning about news analysis if he or
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she is too busy staring at the P&L
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number on the corner of the screen
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turning from green back to red dr. green
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and their newly funded small account
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making a profit and learning to trade
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are two separate goals while many
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experienced traders can multitask in a
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profiting from the market and learning
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something new every single day
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simultaneously it's very unlikely for a
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brand-new trader to do so there's just
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too much going on and too much emotions
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to handle I've heard this from many new
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traders I trade with every single day
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yes they are studying very hard after
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hours and on weekends taking notes and
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trying very hard to learn from a videos
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and webinars but come Monday morning
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when the opening bell rings all the
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material reviewed over the weekend just
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suddenly disappear altogether poof out
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of sight out of mind
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many beginner traders are asking how
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much do they need to start making $100 a
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day what's the minimum amount of money
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they need to start day trading and in my
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opinion those are the wrong kind of
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questions to ask those questions focuses
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on making a profit not focused on how to
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start learning as a brand new trader the
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right question to ask is how much money
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do I need to open an account to get a
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skin in the game and start observing the
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markets in real time and that's why I
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said to treat that four to five thousand
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dollars as market tuition
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just like going to school a college
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you're paying a tuition to learn a skill
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to become an expert at a particular area
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when going to college your focus on the
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education first so you can use that
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knowledge you learned to make money from
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that education in two to four years not
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right away I did exactly just that when
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I went to college and paid six figures
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in student loans winter study for four
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years and got my degree and starts
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learning and earning five figures and
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slowly higher towards six figures later
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on but you know what the funny story is
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my college actually mixed up my
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undergrad degree certificate with
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another Asians name well my friends
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actually so I got her certificate in the
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mail and she got mine yeah you heard
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that right
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my college actually messed up on that
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piece of paper that's worth six figures
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I know what you're thinking
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Hamlet Raider this is one of your really
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really bad jokes but sadly that's a true
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story so every year when they call me up
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and ask me for donations as an alumni I
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tell them no I'm not giving you a single
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penny until you give me my degree
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certificates with a correct name on it
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or unless you hit the like button at the
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bottom of the video ok back to my point
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sorry for that little side story that
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nobody asked for the point I'm trying to
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make is treat your first ever small
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accounts as markets tuition or as an
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initial admission fee to participate and
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learn from the market volatility every
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single day but seriously in comparison
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to a six-figure college tuition student
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loans debt a day trading markets tuition
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of only four thousand to five thousand
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dollars doesn't seem that bad but of
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course you'll never guaranteed to make
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money day trading just like graduating
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college doesn't guarantee you a high
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paying job nor does it guarantee that
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they'll spell your name correctly on a
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degree certificate but the odds of you
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becoming profitable day trading is
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significantly higher if you focus on
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learning
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and foremost before focusing on making
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money and really with that first small
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account the goal for any new traders in
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the first six months to a year is really
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just to use that as a way to learn price
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action and collect screen time yes I do
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advocate most people to pay per trade
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first but after a few months of paper
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trading and finding a focus it's time to
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start trading life with that small
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accounts by buying and selling small
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size of only 100 to 200 shares well you
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get rich quick without 100 to 200 shares
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no probably not but again that's not the
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point by trading those small share sizes
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they'll give you a real skiing in the
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game and you'd be able to start learning
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about all the emotional ups and downs of
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day trading the simulated trading
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wouldn't provide that's right
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you won't be banking Lamborghinis with
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those small share sizes but that also
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means you're less likely to incur big
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losses at the same time by just trading
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small and keeping the bleeding small
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that keeps you in the game to continue
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learning from the market versus if
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somebody starts trading big right away
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as a beginner he or she will most likely
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lose it all
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really quickly within a month or two and
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it's game over that ticket to
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participate in the market is gone again
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the focus for any new traders starting
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out is just to stay afloat for the first
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six months to a year depending on how
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much screen time you're able to collect
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every single day during the trading
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hours for me personally since I was
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trading only part time when I first
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started and I only had screen time from
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free market to about 10:30 to 11:00 a.m.
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market time before I head out for work
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here on the Pacific West Coast it really
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took me a whole year just to start
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understanding what's going on in the
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market I was not profitable after one
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year I was in deep red yes but I was
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staying afloat and learning a lot from
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screen time I finally understood how to
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price action why certain low floats
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would run where others would dump and
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what kind of news really matter for both
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the small caps and the large cap stocks
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if you're interested in learning how I
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traded part-time while working a
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full-time job feel free to check out
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this video later so that was my personal
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approach but there are many new traders
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I trade with every single day
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who dove straight into trading full-time
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well I genuinely think that a bad idea
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if the trader has a lot of savings
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reserved for living expenses for the
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next six months to a year it could be a
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sound move depending on each individual
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situation but the key is that these
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traders recognize quickly but they need
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to focus on learning first with small
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share sizes instead of trying to make
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money that's the whole point of having
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living expenses saved up before going
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full-time and it's only by prioritizing
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learning first and foremost
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before making money to pay bills those
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traders grow extremely quickly and was
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able to find the focus and have a very
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solid understanding of day trading price
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action within six months now once if you
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have less than $4,000 yes you can still
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sign up with a broker that allows less
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account minimums to open but make sure
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they give you live data simulated
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trading my suggestion is still the same
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focus on learning with real-time paper
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trading and collect screen time but at
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the same time continue working your job
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and save up so he can fund your account
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much bigger in a couple of months when
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you're ready to go live there's really
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just no points of trying to make money
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with a 500 to a thousand dollars small
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account a lot of beginner traders think
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just because they're under the PDT
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restriction or don't have the capital to
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day trade life
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that means they shouldn't show up to the
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markets these are the people who only
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focus on making profits as a beginner
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trader and not focused on learning and
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growing you can still learn with
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real-time market
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data with weeble for free well I do not
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recommend using them to trade with real
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money they offer life market data paper
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trading and that's a great way for
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beginner traders to start learning while
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saving up the capital to fund their
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account
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major um as for the traders who already
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have good income in a capital to start
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with an account over twenty five
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thousand dollars that's great
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that means they do not have the PDT rule
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restriction but my recommendation would
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still be the same in fact it's even more
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important that these traders starting
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out with a big account to treat small
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first and learn you don't want to be in
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a situation where you're starting out
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with five thousand shares
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chasing the high of the day breakout on
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the low float and suddenly get dumped um
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and your big account of twenty seven
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grand is now down ten grand
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just because you have a big trading
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account and no PDT restriction doesn't
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mean you don't need to learn the proper
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steps of day trading before trying to
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make money I'm sure somebody will be
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saying this in the comment section I
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know this person and it turned a five
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hundred dollars small account into
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insert a very impressive figure in six
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months right I'm sure there are people
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who can do this but those are traders
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with five to ten years of experience
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they already know their setups how to
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day trade and how to read price action
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as a day trading beginner which is a few
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weeks to a few months of experience it
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would be extremely unlikely to mimic a
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pro's trading success right away and
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before anyone asks no following cherrim
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alerts you buy and sell will not work
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that being said if you're interested in
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the four steps to start learning today
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trade
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feel free to check out this video on how
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to get started if you enjoy day trading
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videos like these remember to drop a
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like and subscribe thank you guys so
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much for watching as always and the
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humble trader and I'll see you guys next
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week
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hey guys thanks for watching I
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hope you enjoy the video and the bath
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jokes if you want to see more day
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trading content make sure to subscribe
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and follow me on Twitter and Instagram
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for more if you'd like to trade with me
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daily and get my free weekend watchlist
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and trading journal make sure to check
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out the links below for more resources
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stay green stay positive and I'll see
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you guys next time
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