How Much Should We Invest To Start Trading

Here are some basics of trading if you are just getting started trading.

When it comes to Investing, we should Invest only the money which we’re willing to lose.

Before Investing we should always do our own research as there is a high risk-reward ratio involved.

Before moving into a real brokerage or trading accounts always start with paper trading.

Many companies have a paper trading account, they’re gonna fund you with some free virtual money and hence there will be no monetary risk involved.

Instead of losing real money, it’s better to start with paper trading until you develop and prove yourself that trading is your cup of tea.

Okay, So How Much Should We Invest to Start Trading?

First of all, we should check how much returns we want to find out how much money we can put in into the trading account.

There are different perspectives that matter i.e. whether you’re doing this as a Full-time Trader or whether you’re doing this for your quick account growth.

according to the internet study, there are three different styles of traders. One that pays themselves weekly

One that pays themselves monthly

the other that pays themselves yearly with the help of compounding.

So first find out which style of trading you want to pick up.

You must understand the concept of compounding.

Once you’re good enough to be profitable, Just assume that you’re starting with 1000$ with the growth rate of 2% per day, trading 3 days in a week and 4 times in a month and Your monthly average growth will be 24%. Just remember that you cannot touch this specific growing account. If you do, then you’re removing a specific percentage of that particular account that is being compounded. This will lead to breakage in a compound interest account.

Even a monthly growth of 24% is insane right? You can take it out monthly to payout yourself, I personally recommend to pay yourself monthly and yearly based on your style, by this compounding method. The trader must also note that there must be consistent profits and you need to be very realistic while setting your goals. Even a little growth 5-10 % growth monthly is also very good. So here first we need to find out what style of trader do we prefer. So, Determine whether you want to have a monthly growth and pay yourself or grow your account annually with the help of compounding. Below I’m mentioning a trading plan

MASTER PLAN :

– Deposit 1000$

– 2% Growth per day

– Trading 3 times a week

– 4 weeks in a month i.e 3DAYS*4= 12 days in a month

RESULTS = 13000$ at the End of the year.

THIS IS THE POWER OF COMPOUNDING.


DISCLAIMER: WE (BEING INVESTED) ARE NOT A FINANCIAL ADVISOR OR FINANCIAL EXPERT. THE WHOLE INFORMATION IN THIS BLOG IS TAKEN BY INTERNET OR BY OUR OWN PERSONAL RESEARCH AND STUDY.

THIS BLOG MAY BE CONTAINED SPONSORS CONTENT AS WELL, SO BEFORE READING THIS BLOG WE (BEING INVESTED) SUGGEST YOU TO DOING YOUR OWN STUDY & RESEARCH BEFORE DOING ANY INVESTMENT.

AFTER READING THE BLOG WE HAVE NO RESPONSIBILITY OF ANY LIABILITY & PROFIT & LOSS OF ANY INVESTMENT, ANY LEGAL INJURY OR ANY TRADING.

THIS BLOG IS JUST MADE FOR EDUCATIONAL & ENTERTAINMENT PURPOSE

TRADING AND INVESTING IS A RISKY THING TO DO AT OWN RISK, DON’T PUT MONEY IN MARKET WHICH YOU CAN’T AFFORD TO LOSE.

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