Tips for trading stocks with small amount of money?
I’m a business student and currently signed up for an online trading website with a small amount of(the minimum $500 it required) deposit. I just wanted to experience how the stock market works and hopefully make a few bucks. I diversified my investments into 3 different companies and they’ve been doing pretty well these couple of days.
However, it charges me $7 every transaction no matter how many shares I buy/sell.So I feel I’ll be happy if I break even by making $14(commission to buy&sell) but I’m still losing money on all of them since the gain on each stock did not exceed $14 which will be taken out from my account balance automatically.
I understand I need more experience and knowledge but is there such thing as strategies for trading stocks with small capital? Should I not have diversified my investments? Or should I invest more money since the $500 won’t take me anywhere?
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about 1 year ago
You need capital to take up those stock you bought until you had made net profit from your trading. Otherwise your gross profits will go to your trading charges.