Stock Trading With Under $1000

Posted by Nick Niesen on November 8th, 2010

The biggest obstacle for many people getting started investing is they just ?don?t have the money? to get started with. Fortunately, with the advent and progress of online trading, stock trading has been opened to almost anybody, including those with very limited funds.

How can you get started trading with under $1000 startup capital?

With online brokers, you?ll no longer be laughed at for opening an account with limited funds. In fact, most brokers will welcome your business, as they have nothing but bytes to lose from an extra trader.

Stock traders with limited funds are no longer limited to just penny stocks and stock options. If you only have $200 to invest, how could you afford to invest in all those expensive stocks? In the past, you may have been forced to invest only small cap stocks, which tend to be very volatile, or try to guess the market with stock options.

Now however, with online brokering you can actually purchase fractional stock. With a fractional stock purchase, you?re basically buying a part of a high priced stock. Just like buying a full stock in the company, the rising and falling of that company?s stock will dictate your profits.

With the advent of online stock trading, limited funds are no longer an excuse not to get started investing. Although the door is open to traders of almost any level, it?s still true that only the most educated traders will make any consistent profit in stock trading. As in all other businesses it's the omnes who can hang around long enough to work out what works and what doesn't that will make the money. I see far too many "traders" blow their account within 6 months and off they go looking at other businesses to make their "fortune" in. Is this you?

Educate yourself and start investing ? It may be the best decision of your life.