What is the minimum investment amount required to generate income from Forex or stock trading?
It’s BOTH capital and experience…
Scenario 1 — Capital WITHOUT experience — you have some previous success from another business/industry and you think it will automatically transfer to trading, but you take huge positions in stocks/forex that quickly move against you. Your account balance quickly declines. Wasn’t this supposed to be easy?
Scenario 2 — Experience WITHOUT capital — you know what to do, you know what to look for, you know when to cut your losses, you know when to buy and sell, but your capital only allows you to buy 100 shares at a time and one a good day, you may make $100/day, you can only place 3 trades a week.
Scenario 3 — Capital AND Experience — you know what to do, you know what to look for, you know when to cut your losses, you know when to buy and sell, your capital allows you to buy 1,000+ shares in 10–12 different companies, you are past the PDT limit of $25k and you make $10k-12k per month — some months more, some less.
Boom. EXPERIENCE + $100k for day trading (or $200k for swing trading). Hope that helps.