Is it possible?

Is it possible to make a few hundred dollars a month from stocks with a small capital? In poker, you can play .5/1 with a few hundred dollars and make a few hundred/month. Is there an equivalent in the stock market?

I've tried reading some books, but mostly they're way above my head right now. I'm just a newbie and want to know if I can make that kindda money in stocks. The general idea I got from the books though is that money is made long term by putting in like $10,000 and getting like 7% return on it annually.

I started an investment simulator game online and was basically thinking about doing the following: Do my hw and research a stock then put about $2k in it and buy some shares. If the stock goes down, then I just wait for it to go up and consider it a long term investment (assuming my research and hw are right). If the stock goes up enough to get me like a $60 after the two comissions I paid to buy and sell, I sell the stock and net $60 profit. Is this doable? Am I just talking complete nonsense here? Any advice (even harsh ones) will be appreciated.

[AceHigh]

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Is it possible to make a few hundred dollars a month from stocks with a small capital?

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No. There is a ton of variance in stocks, it's impossible to make money every month with stocks. You could average a few hundered a month, but you couldn't make that money month after month after month.

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I started an investment simulator game online and was basically thinking about doing the following: Do my hw and research a stock then put about $2k in it and buy some shares. If the stock goes down, then I just wait for it to go up and consider it a long term investment

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This strategy is very risky. You could get you a few really big losers that ultimately wipe out your whole bankroll, even though most of your picks are winners.

Say you put half your money in Google/GOOG and Delta/DAL at the beginning of the year, you would have quickly sold out GOOG for a decent profit, but your DAL would have lost 78% or so. Avoiding the really costly losers is very important in stocks, a lot like in poker. Picking up a WorldCom or Enron every now and then will really kill this strategy.

http://finance.yahoo.com/q/bc?t=1y&s...q=l&c=goog

Well, I don't think I would have bought delta after 9/11 but wasn't there a lot of news and stuff about it going broke or something? If that happened when I have a stock, I'd just sell it right away before all my money's gone. Maybe even shortsell it? I dunno.

[Sniper]

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Is it possible to make a few hundred dollars a month from stocks with a small capital? In poker, you can play .5/1 with a few hundred dollars and make a few hundred/month. Is there an equivalent in the stock market?


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Yes, its certainly "possible" to make a few hundred dollars per month from stocks starting with a few thousand dollars.
You would primarily focus on short term swing trades.

Try reading The Master Swing Trader by Alan Farley, to get an idea of what that would be like.

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The general idea I got from the books though is that money is made long term by putting in like $10,000 and getting like 7% return on it annually.

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That would be long term investor mentality. To make consistant short term $, you would be fairly actively trading.

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If the stock goes down, then I just wait for it to go up and consider it a long term investment

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If you are trading, you are looking to be right immediately, or you get out. Sitting in a stock waiting for it to do what you expect (which it may never do) is just a waste of time. Move on. cut your loss quick, and find the next opportunity.

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If you are trading, you are looking to be right immediately, or you get out. Sitting in a stock waiting for it to do what you expect (which it may never do) is just a waste of time. Move on. cut your loss quick, and find the next opportunity.

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Isn't this daytrading?

[Sniper]

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Isn't this daytrading?

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You'll need 25K+ to pass the equity requirement for "Pattern Daytrader".

I was suggesting that you could accomplish your goal by swing trading... you would be looking to hold your position 2-3 days on average.

I deffinately don't want to be a daytrader as I heard bad things about their jobs (heard it was really hard and most go broke). How much do you think I'll need to start with to accomplish what I need (ie. a few $100/month)?

[Sniper]

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I deffinately don't want to be a daytrader as I heard bad things about their jobs (heard it was really hard and most go broke).

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I heard the same thing about poker players!

As a daytrader, you have to be prepared to go thru the same research, practice, analyse routine that you should as a poker player.

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How much do you think I'll need to start with to accomplish what I need (ie. a few $100/month)?

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The answer to this question, depends on how much time you are willing to put in to find the right opportunities.

Your starting goal should be to average about 2-3% on equity compounded each week as a swing trader.

you don't need 25k to daytrade, only thing is that you can only trade total cash amt

[Sniper]

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you don't need 25k to daytrade, only thing is that you can only trade total cash amt

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Once you are labeled a pattern day trader, you can not trade with equity lower than 25K.