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How much money do u begin with if u want to play the stocks for a living

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Not applicable
How much money do u begin with if u want to play the stocks for a living
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Not applicable
Generally, the more money you start off with, the longer it will take to loose it all...thats if you spread it around. If you are a novice, dont even think about trading to pay the rent!
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Frequent Contributor
Well... depends on how much you want. Say, x. Now the amount you need to start with (y) is y=x*100/z, where z is the percentage growth you can do per time unit. This is very discouraging, because if you need 30k per month (before tax) to survive, you'll need R300k and the ability to sustain 10% growth per month, every month (not possible).
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Super Contributor
I will never rely on warrants or shares to earn me a living BUT I would retire financially secured with a well diversified portfolio. There was a guy that asked a similar question sometime back .. He had 20k and wanted to leave his job and become a millionaire.. How crazy can u get.
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Frequent Contributor
I've been trading for 4 years and have become a rather pessimistic trader (I started off as a optimistic, aggressive speculator... gambler?). I don't believe in technicals anymore (sorry guys). I think a pattern emerges, say a reverse h&s. All the bulls see it and start to jump for joy. "The market will rise! The market will rise!" So, they all buy and lo and behold, the share skyrockets... Then later on they see a upwards wedge forming... "Hmmmm...", they think to themselves... "this is bad... very bad... this share will tumble. I better get out." So they all sell and stand in wonder at their own accomplishments when the share tumbles. The market makes the news, its not the other way around... The only way, I think, is to buy fundamentally, for a really long, long term. IMHO.
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Not applicable
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Regular Contributor
Dont play stocks. It is very very hard work
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Super Contributor
I'd suggest starting with 10x the amount you'd like to end up with.
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Not applicable
You looking to "play" for a living? Then teh stock market i snot for you. Trading is hard work, requires nerves of steel & you need to be able to stare down the devil witin yrself. I couldnt get it right, so now I buy good long term stocks with high dividend yields. If you need R10k / month then take a share's div ie GND with R1.36 div / share = you need to buy 7353 shares @R12.18 = R89,598. Then you need to really hope like hell that the forward div's remain at that level or improve. OMO
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Frequent Contributor
Bluberi, I think you need to multiply that amount by 12 if you want 10k per month, so need in the region of a million.
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Super Contributor
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Valued Contributor
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Super Contributor
I reckon to live comfortably off dividends you need in excess of 3 mill plus - not all shares have a DY of around 10%, and those that do will probablyt drop - unless most of your portfolio is in Prefs. I work on an average of around 4-5 % DY for shares as a benchmark, which gives your around R 150 K tax free if your shares consistantly give 5%. Which is not that much cash actually if you have 3 mill. That amount wont pay for the annual overseas trip. Playing is the wrong term to use - either trading or investing its going to be hard work. And now is not a particularly positive time for either, although with huge nuts a danglin' there are bargains to be found!
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Super Contributor
Sorry, are you another person caught in the marketing of all the people saying you can make a living from trading? Notice these ads all come when the people have lost their money, and they are looking for new sheep to fleece. This market will kill you with it's volatility and swings. Invest in training, good books (ask Simon), for at least two years, and then the market may be stable enough to trade.
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Regular Contributor
Whatever the amount you settle on is, be prepared to loose it.
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Super Contributor
10k x 12 months = 120k. 120k divided by R1.36 = 88235 shares. 88235 x 1200c/share = R1 058 820 needed IF GND maintains its div. If GND increases its div by 20%, then you will need R882 353. If GND decreases its div by 20% then you will need R1 323 529.
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Super Contributor
Blik do you reckon one could withdraw 2% of ones capital to supplement the div yield? Say 6% forward div yield + 2% capital withdrawal, allowing a net withdrawal of 8% annually in arrears.i.e about R 6700 per month per million. Is this sustainable in your opinion?
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Frequent Contributor
if you want to play the market then you need enough money to retire now PLUS whatever you want to play with. its a bit like gambling i'm afraid.
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Regular Contributor
First mistake: you used the word "play"...
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Not applicable
I'm not Blik, but I'd say yes in bull markets. I wouldn't want to take any capital in bear markets though. I'd rather have some non-equity investments (cash, bonds, rental income) to see me through a bear market.
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