At least three times A week I'm getting the question "How Much Money Do You Need To Trade?
so that's what we, gonna talk about today!
Alright, welcome to Coffee With Markus
and yeah
I'm almost have to say welcome back. I was a little bit under the weather in the past few days.
so I was not able to do Coffee with Markus but it's good to be back.
so several times a week, I received the questions Markus, how much money do I need to trade?
and often people ask me the question are coming from a standpoint.
I don't have much money right now, but I wanna make some money.
so um I thought
what we talk about it today, we're trying something new and I have my ipad pro where I can draw on
and through the magic of technology I can predict this onto your screen.
so, let's see how this works. Um. Let me switch over
there we go, so um just a few days ago. I received the question from Kim so let me let me draw a Kim.
so Kim is not very happy right now, so this is my my drawing skills.
How good I can draw? Anyhow, so comes that I don't have much money right now. I mean the financially
difficult position, but I wanna make money with trading, okay how much money do you have right now?
And she said, right now, I have a hundred dollars and you know what my goal is to trade for a living.
So my idea is to make a lot of money. Be happy and hopefully make I don't know maybe
a million dollars and so the question is, is this possible?
and as you can imagine, the answer is NO! This does not work. You need money to make money.
and let's talk about it. How much money
you really need to get started with trading?
someone to switch over here, and so based on my experience,
the minimum amount of money that you need is a thousand dollars and, if you have
a thousand dollars then you could be trading binary options.
The binary options only traded at nadex. Nowhere else. Then we'll talk about this here in a moment.
So you only trade at nadex, but you can't trade Binary options with a thousand dollars
if you have let's see $2,000.00 to $5,000.00 so between two and
five thousand dollars this is when you can start trading options, so this possible to trade options
between two and five thousand dollars. If you have anywhere between $5,000.00 and and $10,000.00.
of course, you can still trade binary options and then you can also trade futures and futures are fascinating to trade.
Now, if you have a $10,000.00 or more, then it makes sense to trade stocks.
just looking in my screen of my scrambling here to see if you could do that, uh um so if you see
for, for most people, I recommended that they are somewhere in this area.
so to to five thousand dollars or five to ten dollars because then you can trade options and futures.
Now, how much can you expect to make with this? so what we talk about this in another coffee with Markus.
but, let's talk about this, you have been attending one of our "Rockwell Boot Camp" that we doing various cities then you know that it is
possible with the right "Money Management"
to grow a five thousand dollar account.
Now, I always say I want you to focus on making 100 dollars per week
so this, 100 dollars per week on a five thousand dollar account. Now, do you
believe that this is possible? I absolutely
believe that it is possible. It is possible to make a hundred dollars per week on a five thousand dollar account, keep in mind.
You will have winning trade and you will have losing trade, but the idea is that you make more
money on the winning trade, than you lose your losing trades. So let's say you risk a hundred dollars.
You try to make 200 dollars and this where on average. I believe it is absolutely possible
to make 100 dollars a week. When you do this and
when you let me use another color here, I have several colors here, let's do this one.
and when you use the concept called
"Money Management"
Money Management then it is possible to turn $5,000.00 into $41,400.00 within one year.
Now, does this make then now you can make a living trading?
of course not, right?. I mean with $41,000.00
I mean now you have just a larger, account size but the cool thing is now you take the $41,000.00 an turn it into a $150,000.00 $200,000.00
and this is how you can grow an account. that is not happening overnight and everybody who tells you differently
is a liar, right? it will take some time, so I here, if usually takes one year to grow, a $5,000.00
account into a $41,000.00 account but from there it can grow into a $150,000.00.
So, a realistic time frame a realistic time frame to really trade for a living is 3 YEARS.
right?. So just be aware it's not happening over night and everybody who tells you differently
based on what I know is a liar.
I mean people tell you, you can retire within a year, NO!
it's not possible. so, let's go back so Kim's situation where she said. I
only have a $100.00 you see with a $100.00 there's only two things that you can do.
First, you can absolutely start practicing right, because I mean trading is a skill and
therefore you wanna make sure that you practice your skill and it will takes several weeks until
you're good with practice, now, what else can you do with a hundred dollars? nothing.
what You need to do is 2. Save More Money
and I mean it just reality. Let's be real here
right? I mean, I could sit here and say all yeah
My Gosh you will turn hundred dollars into ten thousands of dollars and hundreds of thousands of
dollars, but that's not how it works.
just save some more money and start practicing.
This is really really IMPORTANT. right? because you need to have this skill, costing about it.
even if you're able to double, let's say hundred dollars within a year. What happens? a $100.00
turns into $200.00 . Is this exciting? NO! of course not, so this is where you're still
turns into two hundred dollars is this exciting no of course not so this is
unhappy, right?. But, when you start let's say with two thousand to five thousand dollars, then
you have a chance to grow your account into a decent account size and then within the next three years
you do have a possibility to possibly be financially free.
right? so, this is where I just wanna make sure that you have realistic expectations when it
comes to trading and you see there's one more thing that I wanna mention here.
It Takes Money to Make Money. I mean, it is just the reality and it
right now all the have is a hundred dollars or a few hundred dollars
that's the other thing,right. I mean uh let's talk about because I said in the beginning,
only open a binary options account with nadex. If you have less than a thousand dollars. Yes, there
might be brokerage Is this you say, We take your
money but these are bucket shops. I mean might as well kiss your money goodbye
because when you give your money to these buckets shops you'll never see it again,
any serious broker is requiring at least a thousand dollars, some of them require two to five thousand dollar for a
reason and now you know what the reason is.
Let me come back on camera here.
There we go, alright hope this making sense because I wanted to
answer the question "How Much Money Do You Need To Trade?
And more importantly, How Much Money Do You Need to trade for living?
So, hope this helps! If you LIKE this video HIT LIKE,
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and I will talk to you very soon.