So wife and I have a substantial amount of money, about half with Vanguard in a managed IRA account, the rest with Voya at our work 401k. (Wife likes the managed account)
How much money is good to start playing the market with. Want to invest for fun and hopefully profit. Retired so I have some extra time to study and learn. Suggestions ?
Right now have about 200 K in cash - stable value funds at our work 401k. Manager at Vanguard suggests a small amount, say 5 percent. Thoughts ?
dvl2700
I guess I would ask myself how much I would be willing to completely lose and if it would impact you and your wife's longer term financial goals. You said trading rather than investing so I am assuming that you would be doing shorter more speculative trades, options etc? Nothing wrong with having some fun and exploring and learning if you are using money you can afford to lose.
For trading, use the same amount of money you would feel comfortable going to the casino with and placing a one time bet on red or black on the roulette table....
Sounds like your emergency fund and investing is going well, so may as well learn how to trade and try to turn a profit....
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Are you looking to daytrade, swingtrade, longer term?
Lots of good stock options. Nkla long term and CAPR is a good buy now at 4 and some change medical trials for covid-19 are positive FDA approval coming stock will climb like crazy 5 - 10k would be a good start.
Looking to swing trade, short term stuff. Reading up on options and trying to figure those out. Was thinking play money that I could afford to lose. Wife calls me a "cheap rat bastard" and I am dutch so figure I don't want to loose too much. Is $5,000 good for starting ?
dvl2700
If you want to trade options go to TD Ameritrade and watch their options educational series. It is very good. Just make sure you understand what can happen in certain scenarios. Big thing is you don't want to be naked and get assigned unless you have the cash or securities in the account to cover it. I.e you sell 100 covered calls on Amazon at $2200.00 and its trades at expiration at $2,300.00 then you ned to come up with $220,000.00 to cover it. I'm just putting this out there because this is the most important risk to consider if you decide to trade options. You can do it with much less risk and smaller amounts but make sure you watch the educational videos and talk to your broker as you enter the order.Originally Posted by dvl2700
That's a good start to learn. You'll learn a ton as you start trading with it. Swings is a good way to start also.
I started a few months ago with 2500 just to play. Learned a bunch but don't do much day to day. I'm still ahead, so that is good!
Dave
how about today lol I think 1-2k is a good starter. I started with 1k and saw account that year up over 40k. Depends on your risk tolerance. 100 bucks a day is actually damn good money on fun money. It’s very easy to do if you set stops. You hold for gold and you’ll get slaughtered. If the stock or option goes over your price target, set a trailing stop and don’t change it! Money can be made. I started just a few years ago, and I’ve been decimated and I’ve paid shit off. Learning everyday.
That is one of the best pieces of advice to a new trader. Don't get greedy, and don't hold too long. Whenever you're target is hit, set a stop or sell.
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