I have about $2500 saved up and ita been collecting dust under my bed for last few months... Never invested i did some paper traddding but lost interest fast cuz it wasnt real money so i want to invest but wondering if options is the right choice?
Results 1 to 5 of 5
I have about $2500 saved up and ita been collecting dust under my bed for last few months... Never invested i did some paper traddding but lost interest fast cuz it wasnt real money so i want to invest but wondering if options is the right choice?
$2500 saved up what to do?
SuperMiguel said: ↑
I have about $2500 saved up and ita been collecting dust under my bed for last few months... Never invested i did some paper traddding but lost interest fast cuz it wasnt real money so i want to invest but wondering if options is the right choice?
Maybe, maybe not. For me it was the perfect choice. Trading options allows me to manage my risk at entry while staying very small. And staying small allows me to spread my risk around many more positions than when trading stocks by themselves.
It's a learning process. Even if you throw 2500 into it and lose it you will hopefully learn lessons that will effect you the rest of your life.
I don't know who your broker is but the first thing to do would be to make sure you can get your fees down to around 1.50$ per lot or less. It is very hard to manage many small positions if you are paying much more than that.
As a novice myself. I can tell you that most, if not all brokers don't let beginners trade Options.
Normally you need to reach Level 2 status before you can trade options or trade on margin.
I'd say you'd seriously be best served buying $2500 worth of Gold and putting it back under your bed
for another 10 years.
EDIT: After rereading that. I wasn't trying to be a jerk or mean. That's my honest opinion based on my limited knowledge of both his specific situation and the way the market really works.
"Normally you need to reach Level 2 status before you can trade options or trade on margin."
You can get a certificate from Dough.com by going through the Doughjo training videos and answering the quizzes with at least 70% accuracy and TDA will automatically grant you tier 2-3 status without ever having made a trade.
And I think one would learn much more about investing by losing 2500$ in trading than they ever would by just buying something and holding it for 10 years. The lessons you learn will be worth much more over a lifetime than just holding it.
[QUOTE="Acstudio
And I think one would learn much more about investing by losing 2500$ in trading than they ever would by just buying something and holding it for 10 years. The lessons you learn will be worth much more over a lifetime than just holding it.[/QUOTE]
I disagree. But I suppose it depends on the individual.
If a complete beginner, which is what this gentleman sounds like to me, tries to take $2500 and just learn. All he or she is going to learn is that he/she should have used that $2500 to educate him or herself before they started messing around with something that they truly don't understand.
That's why I suggested gold for the person. Because it WILL go up in value over 10 years. And it won't burn and be lost if there's a fire. Unlike the cash he stated he has stashed under his bed.
