When I first dipped my toes into day trading, I made the mistake of thinking I could turn a small amount of money (around $250) into a fortune overnight. Spoiler alert – that did not happen.
Day trading isn’t like playing penny slots, it’s much more like high stakes poker. You need a decent amount of capital to weather the inevitable ups and downs without getting wiped out.
I started with a small account, thinking I could grow it steadily, but I quickly realized that my gains were being eaten up by fees. So to have a realistic shot at day trading success, you need enough capital to cover not only your initial trades but also any potential losses (and there will be many).
The exact amount is going to be different for everyone, but I’d be thinking $5-10,000 not $500.
RHTrader