starting as a trader

I was recently asked if $200 is enough to start a trading portfolio.

thats a good question...how much is enough?

there are many ways to answer this, some people would say $100,000 is the minimum if you want to make a living from it, others think $20,000 can get you started etc.

I think the answer depends on each individual's circumstances, but I would say the Absolute minimum is $2000, but even then you are making it extremely difficult for yourself.

here's some of my thoughts on it.
-whatever the amount is, it should be money you can afford to lose when you start out.
-you must remember that you pay brokerage on each trade.
-if you make 20% in your first year you are doing great...in fact if you make any money in your first year you are too :-)

so lets assume you do have $200.
20% of that is $40, so at the end of a good first year you may have $240.
but if your brokerage is $10 per buy and sell, thats taking most of your profit away.

if the amount is $2000, your target for year one is $2400, and the brokerage of $10 per trade is more manageable as long as you dont trade often.

so if you only have $200 to start with, I suggest you keep saving, and in the meantime do some imaginary "paper" trades...thats when you go through the whole process of trading on a piece of paper, do some imaginary buy one day and an imaginary sell another, and see what lessons you might need to learn before you start using real money.