Contrary to the belief of many, you do not need mega bucks to start trading. In fact, that is the beauty of trading options; the relatively small amount of capital required to start in this business.
You could start with even around $1,000 but ideally, a balance of $10,000 in your trading account will give you seed capital, funds to repair trades should the need arise, training, and, most importantly, a mental safety net. Should something go horribly wrong, you will still be able to trade the next day. Will you start trading the full $10k? Better not be! I recommend learning the material, then paper trade. Once you have 20-25 good simulated trades under your belt, then transition to real money starting with about $1,000. Gradually work it up from there as you meet with success.
So how does this compare with a traditional ‘bricks and mortar’ business? It doesn’t take long to surpass a $10k startup cost when you factor in overhead and operating costs, not to mention that you are physically tied to the business. Nothing is more portable than options trading, requiring only an Internet connection.
If I had a choice today of going through university/college (and yes, I did) to obtain a degree, going into a ‘traditional’ business, or learning to trade, it’s a no-brainer. I would master options trading without a second thought. Imagine where that could go!
Want to know more? Schedule a brief ‘one on one’ with me to plan your success!
Hugh Grossman, Head Trader at Day Trade SPY.
Hugh Grossman is the founder and Head Trader at DayTradeSPY and uses his vast experience to teach his methods to make consistent daily gains trading SPY options. Join Hugh in his interactive Trading Room to see how he regularly pulls in the profits!
Want to learn how to day trade SPY options? Join us in Hugh’s Trading Room – a program designed to fast track you to success. You will be able to watch Day Trade SPY traders, Hugh and Alex, daily in an interactive setting. Subscribe here.