Many people often ask if it is possible to start trading with an amount of INR 1000. The answer is yes. But there are many questions you have to answer before you understand how the Yes will happen. May all these questions be put in trouble too. But there is nothing to be afraid of. We are going to explain you very well.
Expectations behind this amount :-
Now I know what you think about it. You are thinking about how relevant to ask this question? Yes, this question is very important and relevant too. People come with unexpected dreams along with their amount. Expectations to earn 2000 every day with 10000 investment. They should understand that it is 20% in a day. 40000 in 20 trading sessions in the month which is 400% in a month. 4.8 lakhs in a year this is 48000%. It is difficult to make 48% in a year consistently is difficult for many mutual fund managers. You must understand it’s not a money machine. Even warren buffet made 19.8 % CAGR per year. This is why financial knowledge is important.
Managing 10k in the stock market :-
Many people think that lot of money can be made by big money. We cant make a lot of money with 10 thousand. It is quite true. But if you are not able to manage 10k in our portfolio, either for investment or trading, then how you will be able to handle big money. You should know that big money is more difficult to manage than small money. There is a line from a book (Beating the street) you can lose money in a very short time but it takes a lot of time to make money.
Is only 10k enough for trading :-
You can start your trading journey with 10 k. But we must have remembered whatever we discussed above. It is very good to learn trading and investment from this amount. And this also shows one thing our expectation from this amount can never be fulfilled. To make money according to your expectation. You have to invest more money partly from other sources. Along with that, you will also have to reinvest your profit amount. It is difficult to make 40 k with an investment of 10k. But when you know how to make small profits then you can make easily 40 k from your 4lakhs or 40 lakhs portfolio. And this can happen only if you regularly add money to your portfolio from different sources.
Trading is a Business: –
If we ask the same question like this, how to build a business with 10 k ? is it possible to do so?
The answer is the same. 1. What are you expecting, 2. how you will manage such investment without losing it, and 3. 10 k is enough for the business in the long run.
It is possible to make money from a 10k business like balloon wala do. But can we expect that the balloon guy can make 40 k in one month ? in the same way it is important that the balloon guy manages his money in the right way or not. If he spent all his earnings and invested money for his personal use without calculating then he will not able to do business for next month. If he wants to grow in his life in the same business then he has to invest more, and same way he has to reinvest his profit to achieve his vision and dreams.