Are you referring to “stock trading” or “stock investing”? Because there is a huge difference between the two.
If you really mean “trading” then unfortunately you I have bad news for you. You won’t get rich quick. You won’t be able to trade successfully in a small account. You may have some success but long term, you probably will experience a boom bust trading – making money, losing them, making them again, losing them… etc.
Many people overestimate their short term abilities and think they can make it trading while being undercapitalized. But, trust me, I tried myself many times, until I gave up and got back to more decent, conservative investing style.
So, I use trading and options (love options) to monetize my stock holding but I no longer use them as trading only. If you want to trade, you really need capital, if you do not have the capital, fees, commissions, rules and regulation (such as PDT) will ruin you. Plus, a small mistake will cost you a lot. If you make a trade with $500 risk in a $5,000 account vs. $500,000 account, the pain will be very different and very real… And with that a fear will enter your mind and that fear will make you causing more mistakes and more losses.
And, if anyone tells you that they are making money consistently winning all the time, they are certainly lying or not revealing everything. More over, we are in a strong bull market and in a bull market, everyone is a genius.
But if you mean “investing”, building your wealth slowly over time on a limited budget, then it is achievable. Open an account with a broker who charges no commissions so you can be buying as little as one share of a company and all that for free and start depositing your deposits every month and start buying share by share and build up your portfolio. Start buying up to 5 companies and accumulate until you reach 100 shares of each. Once you reach 100 shares of each company, you can start using options. You can start selling covered calls to generate even more income. And if your calls get assigned you just start selling cash secured puts… Sounds easy, right? Well, not necessarily. It is not a quick rich scheme so you still will have to work hard.
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