So how much money do you really need to
start investing in the stock market?
Can you start with as little as 100 dollars?
That's what we're going to talk about
in this video.
Hi I'm Markus Heitkoetter
and I help people to make more money
have more time
and have more fun in their lives.
People come to me because they feel stuck
in their lives. They want to know what exactly
I did to become a multimillionaire
who is now traveling the world
and enjoying life.
And in case you're wondering...
Yes!
This here is a hotel
room! Right now I'm staying at a nice
resort right at the beach.
Here's a picture from my room when
I talk to people in my live events.
They often tell me that they want to
start investing in the stock market
with a little money.
They tell me that they want to start
with a little money for two
reasons. First,
they simply don't have the money to invest.
And second, they are afraid to
lose money when trading stocks
and that's why they want to start
with a small amount.
Let's talk about the second reason first.
First of all there's a huge
difference between the amount of money
that you're investing
and the amount of money
that you're risking when trading.
Let me explain.
Let's say you're buying stocks for eight
thousand dollars.
Actually let's be specific
let's say you want to buy
Apple stocks,
and let's say Apple is trading
around
$200. So let's say you're
buying five shares
of Apple for
$200. So that would be
$1000. Does this mean that
you're risking a $1000?
Absolutely not!
And here's why... The Only
way you would lose your whole
investment is when Apple
goes to zero.
And how likely is that.
Very unlikely.
Right? Now,
of course the price of Apple
could go down.
The stock could actually go
down to let's say $180.
So if Apple drops from 200 to
180 you would lose
$20 per share since
you have five shares
you would lose
$100.
And since you invested $1000
when you bought the five shares
and now they're only worth
$900 you would lose 10
% of your account.
Right? Now,
here's what I teach people that my live events
never risk more than
2 % of your account
on any given trade.
If you have
$1000 to invest you should risk
2% of $1000
and that's $20
and if you're trading
five shares this means
that you could lose
$4 on each share.
If Apple goes down
from $200 to
$196,
you sell your shares.
Why? Because You are wrong!
You expected Apple to go up
and instead the stock went down.
Why would you hold onto it?
Though you might say, but I have to
give the stock some room.
No!
If you want the stock to go up
and it doesn't do it,
then get out!
Don't hang onto a losing trade
because that is how most
people lose money in the markets.
By hanging onto
or losing trade for too long.
Now let's take a look at Apple
and see what happened after you bought
it for $200.
It went straight up.
And that is what you want.
You want to invest in stocks that move
up immediately
and make you money.
And if they don't?
Get out!
There
you go.
Always limit your risk to 2
% of your account size because
that is what professional traders
do. Leave a comment below
and let me know if this makes sense
or even better.
Leave a comment
and say I will never
risk more than 2% of my
account on any given trade
commit to this.
Now!
Let's talk about the other reason why
people want to get started
with a little money.
The reason why they ask about starting
with a little money is simple
they don't have much money to
get started with.
Well, here's the bad news when
trading it takes money
to make money.
Can you get started
with as little as a thousand dollars?
Sure.
But it doesn't make sense.
And here's why.
Don't fall for all the hype
about making 536%
on a single trade it doesn't
work this way.
Realistically, you can expect
to make 60 percent return
per year.
Sometimes it will be more,
and sometimes it might be less,
but 60 percent is realistic.
Now, let's say you start
with a $1000 account,
60% of one thousand
dollars is
$600. So you might make
$600 per year
or
$50 per month.
Now I don't know about you,
but for me that doesn't
make sense.
So right now you don't have
much money to start trading,
take some time save money
and while you're saving up some money.
Learn about trading.
Final Warning.
Do not fall for any
of the get rich quick schemes.
And it doesn't matter, whether you're investing
in stocks buying real estate
or running a business like
selling on Amazon
or something like this.
It takes money to make
money. If you're serious about trading stocks
and options you should have at least
$5000 dollars.
So if you need some stock capital.
Start saving.
And in the meantime keep watching
these videos and learn how to trade.
Leave a comment below
and let me know if you agree.
I hope you enjoyed watching this video
as much as I enjoyed making it for
you. And if you know anybody who might
like this video feel free to
share it and I'll talk to you soon.
Click on like and leave a comment.
Let me know what you think.
Make sure to subscribe to this channel to get
new videos automatically.
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