4 ms·

You can't really daytrade with $200, most brokers require at least $1000 to start an account. You'll also be limited to 4 or 5 roundtrips until you get dinged b

You can't really daytrade with $200, most brokers require at least $1000 to start an account. You'll also be limited to 4 or 5 roundtrips until you get dinged by an SEC rule that limits day trading to accounts with at least 25k equity and margin capabilities. Don't start trading with an IPO stock or anything that's bound to be volatile, it's just a bad idea in general.

Lewisham 15y ago
Bummer. My Get-Marginally-Richer-Very-Quickly scheme is ruined!
- trotsky 15y ago
  It's really for the best. Trading like that it's much easier to end up on the wrong side of than it appears from the outside. Take that $200 and put it in a roth ira or similar - you 20 years from now will appreciate it.
  - nostromo 15y ago
    This is generally good advice, but I'd point out two things: 1) It's only $200. Even the most conservative investors will often put aside 5% or 10% of their portfolio for active investing. 2) 10 years ago, the S&P 500 was around $125 a share, and is now about $130. If we have another decade like that, $200 invested in the S&P 500 10 years ago will be a whopping $216 after being invested 20 years -- barely keeping ahead of inflation.
    - trotsky 15y ago
      I agree it's not always good advice, but I do think it's good advice for someone without investing experience and of limited means when they ask about day trading a stock on its IPO day. You can of course actively manage your investments in a roth just fine, but cap gains don't incur a tax liability.
    - jerf 15y ago
      This infographic is so good I just can't resist whipping it out every time it's even remotely related to the conversation: http://www.nytimes.com/interactive/2011/01/02/business/20110102-metrics-graphic.html http://www.nytimes.com/interactive/2011/01/02/business/20110...
      - nostromo 15y ago
        Fantastic link, thanks! I'm amazed that money invested in 1928 was negative in real dollars if withdrawn in 2011. It's also interesting how devastating inflation can be -- notice how the great depression and the dot com bubble look mild compared to stagflation in the 1970s.

Lewisham 15y ago

Bummer. My Get-Marginally-Richer-Very-Quickly scheme is ruined!

trotsky 15y ago
It's really for the best. Trading like that it's much easier to end up on the wrong side of than it appears from the outside. Take that $200 and put it in a roth ira or similar - you 20 years from now will appreciate it.
- nostromo 15y ago
  This is generally good advice, but I'd point out two things: 1) It's only $200. Even the most conservative investors will often put aside 5% or 10% of their portfolio for active investing. 2) 10 years ago, the S&P 500 was around $125 a share, and is now about $130. If we have another decade like that, $200 invested in the S&P 500 10 years ago will be a whopping $216 after being invested 20 years -- barely keeping ahead of inflation.
  - trotsky 15y ago
    I agree it's not always good advice, but I do think it's good advice for someone without investing experience and of limited means when they ask about day trading a stock on its IPO day. You can of course actively manage your investments in a roth just fine, but cap gains don't incur a tax liability.
  - jerf 15y ago
    This infographic is so good I just can't resist whipping it out every time it's even remotely related to the conversation: http://www.nytimes.com/interactive/2011/01/02/business/20110102-metrics-graphic.html http://www.nytimes.com/interactive/2011/01/02/business/20110...
    - nostromo 15y ago
      Fantastic link, thanks! I'm amazed that money invested in 1928 was negative in real dollars if withdrawn in 2011. It's also interesting how devastating inflation can be -- notice how the great depression and the dot com bubble look mild compared to stagflation in the 1970s.