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Minimum capital to make $30,000 per year in the stock market?

Discussion in 'Stock Market Nuts and Bolts' started by steelcat, Apr 10, 2014.

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  1. steelcat

    steelcat

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    what is the minimum capital for you to make $30,000 per year in stockmarket

    :)
     
  2. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: what is the minimum capital for you to make $30,000 per year in stockmarket

    If you can do this with $300k, year in and year out then you can manage money professionally...:xyxthumbs

    Think about that for a bit;)
     
  3. banco

    banco

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    Re: what is the minimum capital for you to make $30,000 per year in stockmarket

    Far easier to do it with 300 k than millions.
     
  4. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Re: what is the minimum capital for you to make $30,000 per year in stockmarket

    +1, or even billions...:eek:
     
  5. So_Cynical

    So_Cynical The Contrarian Averager

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    Based on my 5 year average, 185K - but more realistically 225K would do it low risk.
     
  6. pavilion103

    pavilion103

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    Trade futures instead :D

    Nah I don't want to give anyone ideas :p
     
  7. Julia

    Julia In Memoriam

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    Re: what is the minimum capital for you to make $30,000 per year in stockmarket

    Would you like to expand on that?
     
  8. Wysiwyg

    Wysiwyg Everyone wants money

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    No one has mentioned that skill, know-how or a proven system is required. Then the amount of capital will be known.
     
  9. VSntchr

    VSntchr

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    Re: what is the minimum capital for you to make $30,000 per year in stockmarket

    Likely referring to investment opportunities which are not available to large sums of money.

    Buffet famously quoted that he would guarantee a 50% return on $100k* (*I think it was 100k?)
     
  10. MichaelD

    MichaelD Not fooled by randomness

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    Essentially an unanswerable question and a bit of "how long is a piece of string" as it depends on how and what you trade.

    Some here could do that easily with $10,000 or less.
    Some here couldn't do that with $300,000.
     
  11. systematic

    systematic

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    ...and you're not going to know what you did make until later on (after the fact) anyway.

    My opinion: whichever 'method' you're looking at using to extract that 30k from the market...you should have an idea of what your expected return is going to be based on quantitative measures, not mere guesses. i.e. That simply means that your method(s) expected returns have been measured (whether by you or not).

    You then move forward with it, at the same time accepting that your reality will only be one possible result in a range of possibilities. (i.e. All I mean by that is that you accept that the expected result is not set in concrete).

    All that said; you should therefore be telling us how much you need to make 30k, based on your expected returns.
     
  12. Julia

    Julia In Memoriam

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    Thank you for your comment, VS. I'm hoping to have an answer from banco who made the original statement, however, and/or CanOz, who endorsed it.

    I don't, e.g. see why you couldn't invest $1M (or multiple millions) at the going deposit rate at any bank and achieve the $30,000. The fact that there would be much left over is irrelevant.
     
  13. steelcat

    steelcat

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    you can lose your pants for trading future.
     
  14. steelcat

    steelcat

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    Some here could do that easily with $10,000 or less.
    please give me some detailed information.:)
     
  15. MichaelD

    MichaelD Not fooled by randomness

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    Sigh. Why is that the phrase that captured your imagination?

    Learn to trade. There is no shortcut. Educate yourself. There are numerous threads here both in the Trading Systems/Strategies forums and the Derivatives forums.
     
  16. beachlife

    beachlife

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  17. qldfrog

    qldfrog

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    that is basically what I lost with a wrong timing on future
    so even billions would not have help
     
  18. Julia

    Julia In Memoriam

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    banco and CanOz: might I reasonably still hope for a response here ? Seems a shame that you're reluctant to let us know why it's easier to make the $30,000K from $300K rather than millions.
    I think the OP was asking the question in good faith.
     
  19. CanOz

    CanOz Home runs feel good, but base hits pay bills!

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    Once you are so big you can no longer cover your moves so easily and in many cases you can move the market with your trades.
     
  20. tinhat

    tinhat Pocket Calculator Operator

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    Assuming a very conservative portfolio and assuming the $30,000 income is gross (inclusive of imputation credits), here is an example portfolio i threw together with one minute of thought:

    Code:
     investment stock gross yield  dividend 
     60,000.00 	 cba 	7.12%	 4,272.00 
     60,000.00 	 anz 	7.40%	 4,440.00 
     60,000.00 	 wbc 	7.50%	 4,500.00 
     60,000.00 	 wpl 	8.17%	 4,902.00 
     60,000.00 	 tls 	8.20%	 4,920.00 
     60,000.00 	 wes 	6.62%	 3,972.00 
     60,000.00 	 wow    5.59%	 3,354.00
    -----------------------------------------
     420,000.00 			30,360.00 
    
    Total return (gross): 7.23%
    
    I've used the price at market close last Friday. I've taken the lower value of the Reuters Thompson broker consensus forecast dividend yields for FY14 and FY15. I've grossed them up to include the imputation credits.

    If the $30,000 of income is net of tax then you would need $600,000 for the above portfolio.

    I would expect this portfolio, over time, to appreciate in capital value with the cost of living at a minimum.
     
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