Often I come across younger people that want to learn how to trade, or people that just don't have hundreds of thousands to work with. They have less to work with, but plenty of passion and drive, so I frequently hear the question: how do I get started with $X amount?
There is no doubt that it takes money to make money in the markets. Part of the reason this is true is because with more money you don't have to risk as much. As you grow, your risk level is not linear. The more you have, the less you need to risk to continue to make more, so those that have more money really have an advantage.
Let's start with the most obvious answer to learning on a budget: the simulator. Now, don't laugh this one off just yet. I have a love-hate relationship with simulated trading, but it can be a godsend. For learning how to place orders, calculating share sizes and testing them out, and general trading lingo on the technology, simulated trading is 100% the way to go. It's a great option for getting comfortable and making all your mistakes without costing you anything.
Now, for actual trading, I'm not really a fan. There is no simulator that can replicate the real world exactly, and human nature will cause you to not be honest about your losses in the simulator as much as you would be forced to when dealing with actual money.
Another consideration is the product you are choosing to trade. Yes, learning to trade Apple
Trading options has become quite popular in the last 10 years and you will find that many are trading right along side of you. If you are clever enough, you can circumvent the pattern day-trader rule and day-trade options with less than the $25,000 minimums. Just be careful here, as options are a completely different animal.
