Rama Vision Portal | Investment Management Company

How Much Money Does One Need to Start Day Trading?

Many people in most countries are growing more interested in day trading. During the Covid-19 pandemic, this type of trading exploded in popularity.

Even yet, a typical question that many people have is how much money they need to start day trading. We’ll look into this topic here and focus on some of the issues to consider.


Many brokers have reduced the minimum amount of money required in an account, which is ideal.

In the United States, for example, companies like Robinhood and Schwab have no minimum deposit requirements for their most basic accounts. As a result, you can begin investing with as little as $10. Some of these brokers’ margin accounts have a minimum balance requirement.

The same can be said for other types of accounts. Most cryptocurrency exchanges, such as Gemini and Robinhood, do not require a minimum deposit. As a result, they have attracted a wide range of traders, even individuals with limited financial resources.


Day trading is a high-risk activity. Indeed, many people have lost money on the market in the past. More than 80% of people who begin trading lose money quickly. As a result, there are a few guidelines that we advocate when considering trading.


To begin, only trade with money you can afford to lose. If you’re a millionaire, for example, having a trading account worth more than $100,000 makes sense.

However, if you are a student with a budget of $5,000 or less, we propose that you begin trading with a small account. To put it another way, you should not begin trading with funds you cannot afford to lose. This can result in significant losses and financial difficulties.


Second, before you begin trading, assess your financial status. For instance, consider whether you have cash on hand that you can use in an emergency. In other words, consider whether losing your cash will cause you and your family to face a major financial problem.

We always advise clients to keep money set aside for school fees and medical crises out of their trading accounts.


Third, think about why you’re getting into trading in the first place. Some people begin trading as a means of supplementing their current income. As a result, if their purpose is not to make a lot of money, these folks can have small accounts.

If you want to become a full-time day trader, on the other hand, you’ll need a relatively large trading account.


Many people inquire about the minimum amount to trade because they do not have a large sum of money with which to begin trading. Still, depending on your financial situation, there are a variety of strategies to trade in the market.


To begin, most brokers include a feature known as leverage. This is a type of margin loan that you can utilise to execute transactions.

For instance, if you only have $1,000 and your broker offers 1.30 leverage, you can trade with almost $30,000. When you have a margin, you can make more money than if you only had a cash account. When a trade goes against you, the risk of using this account is that you could lose a lot of money.


In the United States, another drawback of a margin account is that your broker may impose restrictions based on your trading style. If you open more than four-day trades in a week, for example, the broker can easily label you as a pattern day trader (PDT). Your account may be temporarily suspended as a result of this action.

Joining a prop trading firm is another approach to trade with a modest account. These are companies that offer you the capital you require to begin trading. Read our article on proprietary trading for more information.


Meanwhile, regardless of your financial situation, you should adopt risk management measures. Lowering your leverage, limiting the number of your trades, and always putting a stop-loss on your trades are all risk management measures.

Mohamed Hafiz
Investment Manager
Hafiz is a serial entrepreneur coming from the Engineering background and developed his Financial Services Career in Dubai. Have worked with multiple well stablished Brands in the financial Services in various Jurisdictions, and his passion of Business Development gave him an edge when it comes to Market-fit products creation.
Siddharth Bhan | Web Development Lead of Rama Vision

Siddharth Bhan

With his exceptional passion for technology and a deeper understanding of the current digital marketing trends, Siddharth has built a successful digital marketing agency from scratch.
He is assisting many startups in taking their business online, building a robust brand presence, and multiplying their income through tried and tested digital marketing strategies he has perfected over time.
He is leading the web development team making the user experience for Rama Vision Portal users better every day.
Khaled Guerbouz | Structured Products Advisor of Rama Vision

Khaled Guerbouz

Structured Products Advisor
A veteran in the Financial Services arena with more the 20 years of experience in the private banking sector between Switzerland, France and UAE.
Khalid brings sound of wisdom and profitability for clients when it comes to Structured Products and other Private banking advices.
Ahmed Mohsen | Big Data and Business Analysis Advisor of Rama Vision

Ahmed Mohsen

Big Data and Business Analysis Advisor
Ahmed Abdelwahab has worked in Software Engineering and Data Analytics Industry for 18 years.
Ahmed is the Big Data and Business Analysis Advisor of Rama Vision Portal, to collect, qualify, and mold data into an investment decision making panel.
The quality of Mr. Abdelwahab as an advisor is his passion to bring growth to unrevealed terrains.
As part of consulting in technology and business analysis, he has worked strategically to build up data governance platforms and supported government and private sectors to accomplish missions using bulk population.
Adnan Khan | Financial Technology Advisor Of Rama Vision

Adnan Khan

Financial Technology Advisor
A FinTech enthusiast and Expert with 18 years of experience in Financial Technology and Both Sell side and Both side Technology environments and setups.
Adnan Talks and walks the Fintech and forward thinking professional.
And when it comes to innovation and finding solutions; Impossible is not in his dictionary.
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Yaqoob Alhammadi Auditing

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They are a group of Chartered Accountants, Certified Public Accountants and Information System Auditors led by a young and dynamic professional whose vision and passion is complemented by a team of qualified, well experienced and dedicated professionals
Shaikh Khaled Bin Humaid Al Qasimi | Co-Founder of Rama Vision

Shaikh Khaled

Being a member of the ruling family of Emirate of Sharjah is not the only cutting edge for Sh. Khaled.
He has an admirable Entrepreneurship spirit, open minded and proactive Individual.
Despite his busy schedule he still manages to follow-up on his portfolio and investments, adding value by profile and network exposure as well.
Mohamed Hafiz | CEO, Co-Founder of Rama Vision

Mohamed Hafiz

CEO, Co-founder
Hafiz is a serial entrepreneur coming from the Engineering background and developed his Financial Services Career in Dubai.
Didn`t take him long to observe the gap in the market and start venturing into Fintech Industry with specialty in MENA market.
Have worked with multiple well stablished Brands in the financial Services in various Jurisdictions, and his passion of Business Development gave him an edge when it comes to Market-fit products creation.