PDA

View Full Version : Obtaining capital to start trading. "Plan."



akivojuqerupe
08-10-2015,
Hello again. In this scenario I'll have to share a little about myself if you don't mind.

My name is Isa, I'm getting to the point where I'm becoming pretty confident that I won't be losing a lot of money from the get-go. I've been doing pretty good on simulators. (You can read my previous post to kind of get an insight of where I'm at.)

So the next objective is obviously to obtain enough capital to begin trading. Here are some solutions that I have found.
-I'm 21 and I have paid off any small existing debt that I had, other than a 300 dollar balance on a credit card. It's still below 30%. I keep it revolving to try and develop credit. Does credit affect margin by any chance?
-I worked at Toyota recently as a salesman, I'm no longer employed due to logistics reasons. I have enough saved up to get me through another month (thanks to not having any debt I have a pretty decent income to debt ratio, about $800 dollars in bills monthly) well even if I was working a min wage job. I plan on working here very soon of course. "I've taken the time I have off to study the stock market as it is something I'd like to pursue."
SO that's my living situation.

-I have about a 2k tax return coming to me.
-As soon as I begin working at a little local store I'll assume min wage. So that's $7.80x8 (assuming full-time) x 5 x 4.3 = $1341 - $800 = we'll say saving roughly 500 monthly so as long as I have the discipline to do so.
-So in 3 months we'll go with me having 3k.
-I have a lot of little shops in walking distance so I could sell my car. I have a 97" BMW 540i. I got it for 3300, I figure today I can sell it for 3k and be okay without it.

I'm looking for a solution to get to 10k. If I got to 6k what kind of requirements do they look at when trading on margin? Credit score I assume? My fico isn't grand but it's average I suppose.

Also I found this guy http://kylestarter.com/ and he's raised 25k! Idk if he's good within the stock market realm but he's a heck marketer if he can get 25k.
I was viewed 320k times on youtube when I was 16, making low quality computer tutorials on how to install Linux. Is there anyway (and is it frowned upon) to build a system like he has. I know I'm not confident enough to offer financial strategies but I'm sure I can come up with something in return.

AND FINALLY. Please excuse me for anything ignorant I might of said, I'm 21 years of age and I am putting in an effort to learn. I say things in order to get a reaction and hopefully some sense of direction. Thank you for reading.

Akimtiuvd
08-11-2015,
There are no credit requirements for margin. But I believe the minimum capital requirement is 2000$. Sounds like you are on your way. If you're going to take some shots take them while your young. And keep it small. Good luck.

ajalgsbt24
08-12-2015,
Acstudio said: ↑
There are no credit requirements for margin. But I believe the minimum capital requirement is 2000$. Sounds like you are on your way. If you're going to take some shots take them while your young. And keep it small. Good luck.
Thank you. I find that complimenting, I was researching and it says margin is ideal for short term investments. Which is ideal for me as I'm looking to trade. Also some brokers do up to 50%, I'll have to become familiar with a couple brokers so I can check out buying power and interest rates.

akehuhar
08-13-2015,
Acstudio said: ↑
There are no credit requirements for margin.
Brokers can and do pull credit reports on margin apps sometimes to see how likely you are to pay them back in the event you lose more than you deposited. Not every margin application is approved. That said, Isa is probably fine.

Straight from TD Ameritrade's agreement form:

I understand that TD Ameritrade may obtain a current consumer or credit report to determine my eligibility, or continuing eligibility, for credit or for other legitimate.......
Most brokers have a similar language in their contracts.

aixuzayimau
08-14-2015,
Isa, If you are serious about making a living from trading eventually, I suggest this:

Save 5g's. Study, Study, and study some more in the mean time. Get a night job so you can watch the markets during the day. Ideally, bartending. It gives you a social life too so you aren't always stuck in front of a computer screen or asking if they want fries with that.

Once you get 5k, get a proprietary trading account. They will give you an education class superior to free info on the web; and sponsor you to take the series 56 exam. Upon passing it, you'll be licensed to trade that firms capital. As long as you put up the first 5k they give you the margin for the rest, usually $25k to start and will increase as you prove you can make them money. Of course the firm does take a cut of your winnings, but hey you are trading their money. It does make day-trading real stocks (those blue chips) much easier than trying to gamble on penny stocks with smaller account size. Most prop shops have remote trading access (trade from anywhere) but you will have to find a local agency that does the license testing when the time comes. Good Luck & Happy Trading.