How Big a Trading Deposit You Need to Live Off Trading
Sooner or later every trader realizes that the size of the deposit matters for stable, profitable trading on the stock market or Forex.
Obviously, the bigger the deposit, the easier it is to make a bit of money (if you count in a fixed amount rather than in percent). And it’s just as obvious that far from everyone has enough money for a decent deposit.
So how much money do you need for trading to become your main income?
Gleb Zadoya’s calculation
You can estimate the deposit for stable trading using trader Gleb Zadoya’s calculation. His numbers work out to withdrawing about 2.5% of the deposit per month:
| Monthly withdrawal you want | Deposit you need |
|---|---|
| $1,000 | $40,000 |
| $3,000 | $120,000 |
And that’s assuming you have a profitable strategy, strong nerves and you stick to your trading plan.
I agree with Gleb: the numbers are quite realistic. Someone will say they have a 5 or 10 thousand dollar account and withdraw several thousand every month. Well, it happens — but rarely.
The main trap of a small deposit
Most often, a small deposit pushes a trader into taking huge risks — and blowing the account. There are plenty of online experiments in “growing” 5 or 10 dollars into a million, but they remain just that — experiments.
Trading on the stock market and Forex carries a high risk of losing money.