How much money you need to trade the stock market

In many sources you will find information that you can start stock trading with any amount. And it is true that brokers - companies that provide access to the stock exchange - often have no restrictions on the minimum amount for opening a trading account. In fact, the limitation on the amount to start trading is imposed only by the value of the exchange instruments themselves: shares, futures contracts. At the same time, there is such a variety of instruments on the market that it is easy to find those in which you can invest and .

But in order to save up and earn something serious, with small starting capital, it will take a very long time. But this is no reason to postpone stock exchange investments until better times. You need to start small and work not only on your investment account, but also on your financial plan.

If you answer the question of how much money you need to start stock trading correctly, it is as much as your financial plan allows you to allocate. To calculate this amount, you need to analyze your income and expenses and invest only the difference between them.

Then you need to analyze your property and understand what in its structure is an asset, i.e. it brings money into your personal or family budget, and what is a liability and takes money out of your wallet. It is better to get rid of passives, and the freed amounts can be placed on an investment account.

Also it should not be forgotten that the key to successful trading is to have - a reserve of money equal to the expenses for 6-12 months. It is necessary to minimize the risks of withdrawing money from the brokerage account in case of unfavorable life circumstances. Often stockbrokers think that if something happens, it will be possible to take money from the brokerage account. As a result, they do so, preventing their own trading strategy from working properly. A financial safety cushion can be placed on the stock exchange, but invested in conservative exchange-traded instruments, such as reliable bonds, rather than stocks or other risky instruments.

We already know that some restrictions are imposed by the value of securities. It is worth adding that another limitation on the size of the first stock exchange account can be imposed by the presence of costs of trading. These are commissions of the exchange, broker, depository, and consultants. If you plan moderate trading, then, taking into account the average tariffs on the market, you will stop paying much attention to these costs, when the account will be about . If you are planning active trading, i.e. you are going to make transactions several times a day or a week, the commissions will be less tangible for your account when it reaches the size of .

Once again, it is not necessary to wait until you have this amount, just be attentive to the choice of broker and tariff plan. And also study modern market opportunities, because there are instruments (futures, , PAI), buying which you can spend a minimum of money on commissions, but make an investment in a dozen or even a hundred securities at once.

In conclusion, even a small portfolio is a big opportunity. And do not expect a miracle - your portfolio will not grow 1000 times by magic. Be patient, work hard, constantly study new investment opportunities, and then everything will work out!