To start swing trading stock, you only need to have in your account an amount equal to the maximum between the minimum the brokerage firm requires to open a brokerage account with them and the stock price for 1 share of the stock you like to swing trade.
For instance, if the brokerage firm requires $0 as initial investment to open a brokerage account, and you want to swing trade Walmart stock and the stock price at the time of your chart analysis is $82 a share, you just need to deposit $82 in your brokerage account with any fee amount if the brokerage firm charges a fee for purchasing stocks. And you are ready to place a swing trade by purchasing a share of Walmart stock.
When you purchase a small number of shares of a stock, it is good to set your minimum profit low. When the stock price increases and you reach the minimum profit set, you can sell the stock to lock in your small profit minus any fee you need to pay the brokerage firm. That small profit will increase your original capital. For instance, if the stock price went up to $85 a share and your sell it, you make a profit of $3. After fee, you might have a profit of $2.50 or more. Your account will grow from $82 to $84.50. You repeat the process with another stock, or you wait for Walmart stock to pull back and when it starts to go up again, you purchase it again.
After a month or so, if you save another $82 and transfer it to your account, then you have enough to purchase 2 shares of a stock that costs around $82 a share.
Slowly your account will start to grow as you continue to invest more of your paycheck in your account to swing trade with and the profit you generate from swing trading.
Further, you will fine tune your swing trading strategy to align with your risk tolerance level, your personality type, and your financial goals.
By setting your profit low, you will swing trade often, which in turn, will allow you to practice your swing trading strategy a lot.
If you qualify for a Roth IRA account, you can open it as well and swing trade in your Roth IRA account tax free. When you have enough to purchase multiple shares of a stock per trade, you can trade in your brokerage account. Keep in mind that profit generated in your brokerage account is taxable income and you will report it on your individual income tax return Form 1040. But trading in your brokerage account allows you to create a stream of income you have access anytime besides your paycheck from your job.
Conclusion: How much money is needed for swing trading?
In conclusion, you just need enough to purchase one share of stock you want to trade to start swing trading after you meet the minimum requirement to open a brokerage account or a Roth IRA account with a reputable brokerage firm.
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