The first question that we always ask ourselves when we decide to invest in stocks is how much money I need to start investing in stocks and many types of questions that related to the same topic, so before we getting started we have to determine our goals, are you looking for money? Or you need money for living or Etc.
Every one of us has a different ability to invest in stocks someone can trade with more money and another can trade with a small sum of money.
This article is going to answer all the questions that in your head, easily and simply.
For example: let’s say that you need to reach 200$ per day and this is your goal, I’m not saying that this is a weak goal or strong goal it’s just a random example.
The amount of money you have is 200$, to be more specific we can get the percentage when we divide 200$ / 200$ that is equals 100% and this percentage is very big for beginners as you need to double your money.
If we think about it, you have 200$ and you need to make 200$ per day so you have to be the best stock trader in the world to get this goal daily.
This time, we will use a different example, as this time we are going to say that, you have 2000$ and you need to make a 200$ daily, now what is the percentage of this equation?? The percentage is going to be like this 2000$/200$ = 10%, and this is not impossible as for the example we mentioned above, as using 2000$ to gain 200$ per day is easier than having 200$ to gain 200$ per day.
What about if we say that we have 20.000$ and we want to gain 200$ per day in this example the percentage is going to 1%.
The question now is what is the closest to reality example from the above?
As for me the last example is the closest to reality, let me tell why?
If you look at the examples above you are going to see that the amount that was always fixed is the money you have and the changing was in the amount you will gain.
The percentages tell that it’s much easier to make 200$ daily with 20.000$ than making 200$ daily with 200$.
Note: at these examples we do not recommend you to have 20.000$ but we were explaining how investing in stocks process works, there are many investors have 200$ and they make more than 2000$ per month all we need from you is putting these percentages in your mind, because you may need it later, you can pick what percentage you need, and you can work on it hard.
From my point of view starting with 4000$ is fair enough, you can start with a small sum of money and then you can add more and more money later.
We always recommend you to ask yourself how much percent to make 200$ daily and how much money you have to gain this sum?
You have to be sure that when you invest much money you will gain more money.
Hope you find this article could simplify the process of investing in stocks and wait for more useful articles.