Starting capital?

Hi guys.
I am new to the stock market and havent made the decision of wheather i want to trade or not? Im still saving up my money and measuring my options.

What is a good starting capital for buying stock?

Thanks

filoflavaz said:

Hi guys.
I am new to the stock market and havent made the decision of wheather i want to trade or not? Im still saving up my money and measuring my options.

What is a good starting capital for buying stock?

Thanks

Click to expand...

I reckon about $10k though i started with less.

nizar said:

I reckon about $10k though i started with less.

Click to expand...

Same here. You have probably chosen a good time to think about it too, There is a great deal of value out there ATM.
Also, consider signing up to the ASX as you will be able to play their game/s to test your skills.

Cheers

I started with 2k :

Now looking back, I think a bit more, maybe $15k would have been a terrific start.

Just my opinion, don't go out of your way to find too much starting capital. And don't forget: only invest what you are prepared to lose. (though you would have to be extremely unlucky to lose it all

I started with $1000. For me this was good because I could afford to lose that but it was enough that I started to follow what the market was doing and also paying attention to what causes the price to change. I studied market theory a few years back and it's amazing how different the real world is to what academics think should happen!

Anyway, the main problem is that the smaller your initial capital the greater return you have to make just to cover brokerage. For example, I use E-Trade which charges approx $33 per transaction. That means that just to break even your shares would have to rise to $1066 - if you're in it for the long term e.g. 5 years+ then that probably wouldn't be too bad but if you're hoping to get in and out quickly (i.e. trade) then you'd probably need more capital to avoid your profits being eaten up by brokerage fees.

As mentioned previously, the current correction has reduced the price of many company's shares from what they were a few months back so might be a good time to get in - although who knows how much further the market will fall???

Have fun!
Kloid