How Much Money Should You Start Trading Stocks With

There's a couple of factors to balance. So this is a really important discussion.

The first thing is when you start.

You need to start with enough capital so that you'll pay attention to it, treat it seriously, but not so much that it freaks you out. So let me just make up some numbers, okay? I have no idea what your situation is. I don't know what everyone's situation is. It doesn't matter. Let me just illustrate. Let's say you've got a million dollars tucked away somewhere that is passively invested.

Right now and.

You'Ve never traded before.

It'S just invested and you're going to start trading systematically. There's no way you're going to take your million dollars and start trading it with, with your system one, right? That would be crazy. It would be so stressful and you've got too many lessons to learn to do that. But let's imagine that you've done your back testing and you've paper traded for a couple of weeks and you're confident.

With the process and you like, you're comfortable with the system and you could imagine yourself taking, I don't know, $25,000.

And trading with your first system with $25,000.

Just for argument's sake.

If you can.

Do that and trade it mistake free to learn the lessons of going live.

While you're doing that, you would work.

On, okay, what is my portfolio mix going to look like over the next.

Six or 12 months? What am I going to phase it into?

So with this hypothetical million dollars, let's say. And look, everyone, just think about this. Scale these numbers according to wherever you're at. Maybe it's $5,000 you're starting with, you've got $50,000 to invest, or maybe it's $5,000 and you've got $10,000 to invest, or maybe you've got $5,000 or $1,000 and that's all you've got.

Okay?

It's a difference. It's a different implementation plan for each of them.

It.