Low capital investing
There was an excellent piece written on Move the Markets (sourced from Trader Mike ) on the risks of under capitalization and trading. Unfortunately, for many people who have day-to-day jobs (myself included), allocating large sums of money necessary to capitalize a trading account is simply impossible. Even for those individuals with money to fund trading accounts, capital restrictions in special accounts like ROTH/IRAs mean maximizing the benefits of these accounts requires special thought. So how can one work the market with a small sum on money? The following is a quick-and-dirty analysis on a couple of strategies available for low capital accounts. As Move the Markets highlighted, commissions are the biggest killer of small accounts. There are alternatives, such as zero commission brokerage firm Zecco . But the consequence of this could be stripped down services(?)[I can't directly comment about the usability of Zecco]. Other alternatives include the dollar-cost-average serv...