How much money do you need to start day trading? This is perhaps one of the most commonly asked questions from beginner traders on my youtube channel and I'm just gon na break it to you right here day trading, it's not as easy as opening a five hundred dollar Robin Hood account going on Wall Street bets on Reddit or following some chatroom alerts or signals to grow it to five hundred thousand dollars in a month like reality, just doesn't work like that. So in this video I'm gon na be talking about realistically how much money do you need to start day trading? Well, you should focus on with your small account when you first get started and also a realistic time frame and goals you should set for yourself as a brand-new trader entering the markets. As always, these videos take me a long time to make that's the time. I could have spent cruising around my Lambos chillin on the beach and banking on my toilet.

So if you don't mind, please remember to drop a like on the video. I'd really appreciate you. My friends, like I mentioned many times before on this channel day trading, is a business. It's not a hobby and it's definitely not gambling.

Well, I mean it would be gambling if you're, just throwing your money into buying whatever low float, looks hot and sexy at high. All that they break out when it's already up to hundred percent on the day since day trading is a business just like any business. It's gon na require a lot of upfront capital to start and having a grow slowly so day trading is the same way. It takes money to start.

I recommend opening an account with at least four to five thousand dollars. That's a small account! If you have less that's totally fine, we'll talk more about some other options for you later on so hold on tight, but just because now that you have an account open without four thousand dollars, it doesn't mean you should start trading life and trying to make money Right away, you will go after you funded a small account shouldn't, be trying to double or quadruple or make any money at all. In fact, you should treat that four or five thousand dollars as market tuition and expects that you probably lose at least fifty percent, if not all of it slowly, because just like I've mentioned previously as a beginner just starting to trade, your focus should be on learning And observing the markets not trying to make money, there's absolutely no way a beginner trader is really gon na sit there and learn about planning your trades risk management, reading price action on the charts and learning about news analysis if he or she is too busy staring At the P & L number on the corner of the screen, turning from green back to red, dr. green and their newly funded small account, making a profit and learning to trade are two separate goals.

While many experienced traders can multitask in a profiting from the market and learning something new every single day simultaneously, it's very unlikely for a brand-new trader to do so. There's just too much going on and too much emotions to handle. I've heard this from many new traders. I trade with every single day.

Yes, they are studying very hard after hours and on weekends, taking notes and trying very hard to learn from a videos and webinars, but come Monday morning when the opening bell rings, all the material reviewed over the weekend just suddenly disappear altogether. Poof out of sight out of mind, many beginner traders are asking: how much do they need to start making $ 100 a day? What's the minimum amount of money they need to start day trading and, in my opinion, those are the wrong kind of questions to ask those questions focuses on making a profit not focused on how to start learning as a brand new trader. The right question to ask is how much money do I need to open an account to get a skin in the game and start observing the markets in real time, and that's why I said to treat that four to five thousand dollars as market tuition, just like Going to school a college you're paying a tuition to learn a skill to become an expert at a particular area when going to college your focus on the education first, so you can use that knowledge. You learned to make money from that education in two to four years, not right away.

I did exactly just that when I went to college and paid six figures in student loans, winter study for four years and got my degree and starts learning and earning five figures and slowly higher towards six figures later on. But you know what the funny story is. My college actually mixed up my undergrad degree certificate with another Asians name. Well, my friends.

Actually, so I got her certificate in the mail and she got mine yeah. You heard that right. My college actually messed up on that piece of paper. That's worth six figures.

I know what you're thinking Hamlet Raider. This is one of your really really bad jokes, but sadly that's a true story so, every year when they call me up and ask me for donations as an alumni, I tell them. No, I'm not giving you a single penny until you give me my degree certificates with a correct name on it or unless you hit the like button at the bottom of the video. Ok back to my point.

Sorry for that little side story that nobody asked for the point I'm trying to make is treat your first ever small accounts as markets tuition or as an initial admission fee to participate and learn from the market volatility every single day, but seriously in comparison to a Six-Figure college tuition, student loans, debt, a day trading markets, tuition of only four thousand to five thousand dollars, doesn't seem that bad but of course, you'll never guaranteed to make money day trading just like graduating college doesn't guarantee you a high paying job. Nor does it guarantee that they'll spell your name correctly on a degree certificate, but the odds of you becoming profitable day trading is significantly higher. If you focus on learning and foremost before, focusing on making money and really with that first small account, the goal for any new traders in the first six months to a year is really just to use that as a way to learn price action and collect screen Time, yes, I do advocate most people to pay per trade first, but after a few months of paper trading and finding a focus, it's time to start trading life with that small accounts by buying and selling small size of only 100 to 200 shares. Well, you get rich, quick without 100 to 200 shares.

No, probably not, but again, that's not the point by trading those small share sizes they'll, give you a real skiing in the game and you'd be able to start learning about all the emotional ups and downs of day trading. The simulated trading wouldn't provide. That's right. You won't be banking Lamborghinis with those small share sizes, but that also means you're less likely to incur big losses at the same time by just trading small and keeping the bleeding small.

That keeps you in the game to continue learning from the market versus. If somebody starts trading big right away as a beginner, he or she will most likely lose it all really quickly within a month or two and it's game over that ticket to participate in the market is gone again. The focus for any new traders, starting out, is just to stay afloat for the first six months to a year, depending on how much screen time you're able to collect every single day during the trading hours. For me personally, since I was trading only part time when I first started - and I only had screen time from free market to about 10:30 to 11:00 a.m.

market time before I head out for work here on the Pacific West Coast, it really took me a whole Year, just to start understanding, what's going on in the market, I was not profitable after one year. I was in deep red, yes, but I was staying afloat and learning a lot from screen time. I finally understood how to price action. Why certain low floats would run where others would dump and what kind of news really matter for both the small caps and the large cap stocks, if you're interested in learning how I traded part-time, while working a full-time job, feel free to check out this video later? So that was my personal approach, but there are many new traders I trade with every single day who dove straight into trading full-time.

Well. I genuinely think that a bad idea if the trader has a lot of savings reserved for living expenses for the next six months to a year. It could be a sound move depending on each individual situation, but the key is that these traders recognize quickly, but they need to focus on learning first, with small share sizes. Instead of trying to make money.

That's the whole point of having living expenses saved up before going full-time, and it's only by prioritizing learning, first and foremost before making money to pay bills. Those traders grow extremely quickly and was able to find the focus and have a very solid understanding of day trading price action within six months now, once if you have less than $ 4,000, yes, you can still sign up with a broker that allows less account minimums To open but make sure they give you live data simulated trading. My suggestion is still the same: focus on learning with real-time paper trading and collect screen time, but at the same time continue working your job and save up. So he can fund your account much bigger in a couple of months when you're ready to go, live, there's really just no points of trying to make money with a 500 to a thousand dollars small account a lot of beginner traders think just because they're under the Pdt restriction or don't have the capital to day trade life.

That means they shouldn't show up to the markets. These are the people who only focus on making profits as a beginner trader and not focused on learning and growing. You can still learn with real-time market data with weeble for free. Well, I do not recommend using them to trade with real money.

They offer life market data paper trading and that's a great way for beginner traders to start learning, while saving up the capital to fund their account major um. As for the traders who already have good income in a capital to start with an account over twenty five thousand dollars, that's great. That means they do not have the PDT rule restriction, but my recommendation would still be the same. In fact, it's even more important that these traders, starting out with a big account to treat small first and learn.

You don't want to be in a situation where you're, starting out with five thousand shares chasing the high of the day, breakout on the low float and suddenly get dumped um, and your big account of twenty seven grand is now down ten grand. Just because you have a big trading account and no PDT restriction doesn't mean you don't need to learn the proper steps of day trading before trying to make money. I'm sure somebody will be saying this in the comment section. I know this person and it turned a five hundred dollars small account into insert a very impressive figure in six months.

Right, I'm sure there are people who can do this, but those are traders with five to ten years of experience. They already know their setups. How to day trade and how to read price action as a day trading beginner, which is a few weeks to a few months of experience. It would be extremely unlikely to mimic a pro's trading success right away and before anyone asks no following cherrim alerts you buy and sell will not work.

That being said, if you're interested in the four steps to start learning today, trade feel free to check out this video on how to get started. If you enjoy day trading, videos like these remember to drop a like and subscribe. Thank you guys so much for watching. As always, and the humble trader and I'll see you guys next week, hey guys thanks for watching, I hope you enjoy the video and the bath jokes.

If you want to see more day, trading content make sure to subscribe and follow me on Twitter and Instagram for more. If you'd like to trade with me daily and get my free weekend, watchlist and trading journal make sure to check out the links below for more resources. Stay, green, stay, positive and I'll. See you guys next time,.