Best Amount To Begin With?

Discussion in 'Stock Market Education' started by teastocks, Sep 27, 2014.

  1. teastocks

    teastocks Well-Known Member

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    The more that I read e more that I see it is better for you to have more money to begin with because when you have more money you are then able to make better decisions in the long run and you would not be making decisions based on feeling as you may see yourself losing money. Am I correct?
     
  2. Profit5500

    Profit5500 Senior Investor

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    Its tough to say the $100 is not enough to start with since you got those fees to tackle. I would just focus on getting up to 25k like what JR said. Just having $100 is not enough to deal with.
     
  3. springbreeze

    springbreeze Well-Known Member

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    I agree with Strykstar. Definitely start with what you can lose. Think of it as gambling. The more you invest, the more you will earn. But the more you invest, the more you can lose.

    My other advice is if have a hundred or 2 to invest, go ahead, do it, try it out. The longer you save to reach a desired amount, the longer it will take for you to jump in and start learning through experience. That way when you have more money to play around with, you'll have a better idea of where and how to invest. And that means less mistakes.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I didn't mean that he should wait until he has $25k to do anything. Not what I said at all.

    If he's got a couple hundred or whatever, I think he should consider possibly opening up an account (probably a Roth IRA if he qualifies) with that and consider perhaps either investing in an index fund or perhaps a share or 2 of few good stocks if he's done his homework and feels comfortable picking stocks. And add to the account as much as possible!

    The $25k is what the US govt requires to pattern day trade. I don't think people in general should pattern day trade. Even if they have lots of money and are quite advanced, day trading is a losing proposition for most who try it.
     
  5. teastocks

    teastocks Well-Known Member

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    25k just to day trade. Now that is a lot of money. I am thinking maybe I should wait until I get about $5000. Then I should be good to go.
     
  6. gmckee1985

    gmckee1985 Senior Investor

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    $100 definitely isn't enough. If that's all you have to work with I wouldn't do any investing yet. You just don't have a lot of potential to turn that into a lot of money. You need to build up more of an investment fund. What you have right now clearly isn't enough. I don't know about $25 K, but you definitely need to invest a few thousand in order to get any type of return on investment. Make sure to do a lot of research beforehand.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I started with zero in my first retirement account nearly 21 years ago. I just started putting a little each paycheck into it automatically, and it soon became worth quite a bit. I have continued to do this with other employers and now as someone who is self-employed.

    I now have what most would consider to be a large amount of $ in my retirement accounts, in addition to other $ I have also accumulated in taxable accounts, thanks to me busting my butt working and putting investing ahead of high living and buying or renting "stuff". :D

    The tax-advantaged accounts in particular are very useful to the small investor.
     
  8. cameronpalte

    cameronpalte Well-Known Member

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    Definitely agree with this $100 isn't much and will not get you far - especially with a $7 transaction fee to buy and sell you need to make 14% to break even.
     
  9. jdroc

    jdroc Guest

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    Whatever you can afford to lose!
     
  10. JR Ewing

    JR Ewing Super Moderator Staff Member

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    You definitely don't want to be trading.

    Buy and hold, adding as much $ to it as you can each paycheck.

    Most likely in a Roth IRA account if you qualify.

    If you start with $100 and add $100 each week, in 30 years you'll end up with roughly $825k minus fees if you average the 10% the S&P has in the past few decades.
     

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