Another common question I get asked frequently is how much should I invest in my portfolio per trade?
Let's say you have $2,000 in your account and you see a trade you want to get into.
I generally recommend looking for a minimum of about $500.
When you first started in trading it can be a little more difficult and feel a little bit riskier when you're investing your hard-earned money.
So again, with $2,000 I would say invest 25% of that, which comes out to $500.
As your account grows and you reach closer to $10,000 I'd recommend scaling that percentage back a bit.
When you feel more confident putting in more money, you probably won't even need the general guideline
Your number one key before you actually start is virtual trading.
There are many platforms out there, but my top recommendation is Sure Trader.
They set up the real market scenario for you on a real trading platform and you can practice with fake money to invest and test out your skills.
I always recommend you practice your theories and techniques on a virtual trading platform before you start putting in real money.
Start off with a minimum of $500 and about 25% of your portfolio max.
I wouldn't go higher than that.
Many people lose their interest in the stock market or lose a lot of money because they've put their entire savings or portfolio in the trade and haven't considered proper risk management.