How Much Money Do You Need to Start Day Trading?

how much money do I need to start day trading so this is a very popular question a lot of new beginner Traders have my first thing for everyone would be make sure the money you guys use to trade with is money that is yours money that you can afford to lose the reason being is the financial markets are extremely extremely risky and I will be the first to tell you guys like it is risky it is hard I know a lot of people kind of make trading so easy it's like a walk in the park

you go trade on the beach that is not the case it's extremely risky and your Capital will be at risk so if you are using any sorts of money be it a hundred dollars or ten thousand dollars please make sure that you guys are in a position to lose that money because I see so many Traders borrow money or use money that is you know for something else for rent or whatever the case is and they put themselves at such a disadvantage by trading with that Capital so that's number one now let's say you get

over the number one hump the question comes how much do I need to day trade now as I mentioned before you can day trade with five hundred dollars a hundred dollars two thousand dollars also depends a little bit on what capital markets you're trading right so if you trade stocks you have to keep in mind that you can trade with any amount but there is something called a PDT rule on a PDT rule you need to have 25 000 or more to take on more than three day trades in a five day period so just

to break down what is a day trade right a day trade is considered a trade that is opened and closed the same day if I open a trade on Monday morning and I close it Monday afternoon that is considered one day trade on a PDT rule I can only take three day trades in a time period of five trading days if I open a trade on Monday and I close the trade on Tuesday that is not considered a day trade so once again for people that are looking to trade stocks people that are looking to

trade equities you can trade with any amount but if you want to take active day trades you will need more than twenty five thousand dollars in your brokerage account now if you are trading options right one one way to offset this is to have a cash account so I see a lot of Traders that'll have five thousand dollars or seven thousand dollars in their day trading options what they will do is they will have a cash account and not a margin account for option trades your trade settle the next business day what that means is

if you take a trade Monday and you close it Monday that is one day trade but on Tuesday that day trade becomes available again the trade settles where in equities or stocks if you take a trade Monday and close it on Monday the trade does not settle until Thursday that's where people with cash accounts are able to utilize their cash more they can kind of I guess override the PDT Rule now if you're trading crypto if you're trading Forex if you're trading cfds if you're trading other financial instruments from what I know there's no like

restriction on what you can or can't trade in terms of cash value and even for stocks and equities as I was mentioning you can trade with any amount it's just with stocks there is the PDT Rule and even you know options there's the PDT Rule now when you go into Futures same thing Futures don't really have that level of restriction you can go and you can take on trades but it's just with stocks and options for what I've known so far you should be good the main thing I I would focus on if you're starting

to trade is keep your Capital size minimal don't start with a lot of money you don't want to start tomorrow and say I'm going to put in 10 000 in the market or Twenty Thousand or five thousand whatever whatever that number is for you without having a good foundation of the market a good foundation of yourself until those things are done I would start with minimal Capital just to get a flow of the market just to get an understanding of yourself and then I would look to put more money once you find a certain amount

of success with the capital you have put in initially last thing I would do as I mentioned early and then and I emphasize on this a lot is guys please make sure you only invest money that you can lose like please I see so many Traders invest money they can't lose and they put themselves in such a disadvantage and I hate hate hate to see that so make sure that is not you with that being said I hope you guys found value in this video I hope to see you guys get more involved in the

markets the right way and if you like this video please give it a thumbs up and I will see you guys in the next video thank you