A lot of people who prosper in day trading will tell you that it day trading would require to have a lot of funds as well as time to do it, which means not having a day job. Although this makes perfect sense, there are still other people who want to go and try day trading while they have a day job and with a not so big fund. Not having enough funds and having a day job is the factor that many people blame when they are not successful in day trading. Let us take a closer look at it.
Your Lack Of Funds
Day trading isn’t something you can learn overnight. No matter how many books or tips you read, you can’t simply learn everything about it in a short span of time. It takes time for you to master it and your experiences, either good or bad, will help you to improve in making new trading stragies that will work for you. To be able to start trading, you will need about $25,000 cash to be able to trade in a 5-day period. This is a requirement by SEC and when your account drops to an amount lower than it, you will not be able to trade and your account will be frozen for about 3 months. To prevent this from happening, you simply don’t need $25,000. You might need more than $30,000 because of the risk of having bad trades.
The Cost Of Going Into Day Trading
There would be some things you will read on the internet that people were successful in day trading and all they started out with is $5,000. Most, if not all of them are simply posting such things to encourage other people to try out day trading. What most people do not know is that you still have to spend for commissions and that can greatly affect your profit. It is best not to invest if you are just planning to start with $1,000 or less because it will all just end up paying for the trading commissions.
Aside from not having funds, another factor that can negatively affect your day trading success is your day job. Day trading, as the name implies happens during the day. Unlike other side businesses that you can work on during your free time at night, day trading will not be available at those hours. You just can’t quit your day job for day trading because you still don’t know if you would be successful at it.
The International Trading
In order for you to be able to day trade and still keep your day job, you can have the option of day trading in other international markets. They do not have the minimum requirement of $25,000 in your account but you should still make sure that the amount you put into it will still be able to cover the commissions. This also makes it possible for you to trade after or before your day job because of different time zones.