Do you want to do stock trading but you don’t have much capital to invest? Welcome to this little guide where we want to present you a practical and intelligent way to start with a small amount of money and become over time a capable and effective stock trader, increasing your capital step by step, but constantly.
If you only have € 20 with which you want to start investing in the stock market, this small project offers you as a series of useful indications to capitalize on this sum to the maximum, certainly you cannot expect to become a millionaire within a week starting from just € 20 , but you will see that something can always be done on the stock exchange even starting from minimum figures.
If you started looking for a method like investing only 20 euros in the best way, I am sure that google has suggested a series of viable options, some good, some less so.
If you are interested in the stock market, financial investments and, therefore, the fascinating world of online trading, you could use 20 euros to buy a professional ebook to start training and we at Investireinborsa.org believe it is the best thing to do.
If you are interested in this last aspect, I want to point out to you that for a few weeks you have the possibility to download a really well done manual to learn how to take your first steps on the stock exchange.
Investing in the stock market 20 euros: is it possible to do so?
Well, theoretically yes, today thanks to the fact that the exchange has become accessible online, aspiring traders from all over the world can decide and manage at will when, where and how to invest. The problem, if anything, is that it’s not possible to start a trader’s career with just € 20, but wait, if you’re thinking that you need a few thousand euros to become a trader you’re wrong in the same way.
You can easily invest a small amount of money on the stock exchange, but the main problem is that if you intend to do it online, or the only place where it is really feasible and convenient, you can’t start directly with € 20, but you’ll need some extra money.
As you will know the only way to have access to financial markets on the internet is through the brokers that offer this kind of services directly on the net, but they do not allow their customers to start trading starting from figures lower than 100 € , so although you can always decide to risk up to 20 € the initial deposit must always be at least 100 € or 200 € (vaia depending on the broker).
The good news is that it is your money and your only one that you can take back when you want – however pay attention to the disclaimers and terms and conditions of each platform – these may vary.
Moreover, becoming a client of a broker that offers you the possibility to invest starting from € 100 very often means entering the world of online trading in the best way, provided that you are able to choose your financial intermediary for good.
How to best invest 20 euros in the stock market?
To best use € 20 you must first study a good variety of possible assets on which you would like to invest. Brokers often offer you dozens if not hundreds of assets and securities on which you might decide to invest, but the best thing to do is to select only a few, at most 2 or 3, because going further would only be confusing in your head.
So consider many options initially once you have discarded most of them, choose a maximum of 2 assets where you think you could be successful in investing.
The next step will not be to immediately invest your 20 euros, but to start studying. Throwing yourself immediately into the fray would be deleterious indeed, if you “lose” 10 minutes at least instead of doing analysis and understanding how your underlying moves then you can greatly increase the chances that your trade is successful.
You can do technical analysis very quickly and in less than 10 minutes you could understand what is the right time to open a market position with excellent chances that you deserve credit with a considerable profit.
How much can you earn by investing € 20?
Let’s say that if you only have € 20 available, the gains cannot be too high, but in the end, if you are using a very volatile asset with good daily flares then you will see that the chances of profit are high .
For example operating on the Forex we say on the pair of Euro Dollar Currencies, or Japanese Yen Dollar, you could attend important daily excursions, but the best thing is to establish a precise profit target around 10 maximum 20 pips (minimum possible variations on the trend of price of an asset) if these pipes are registered in the right direction of purchase or sale your earnings could even be of some tens of euros daily.
Reading these small market movements that you need to get your daily income is easy, just use a small investment strategy.
Be very careful, however, because starting from 20 euros the risks on the investment could be fatal to you very soon if the market moves in the opposite direction compared to what you expected it could end up losing part of your capital and therefore you have to be careful to close in hurry your market position and not worry about it too much. A mistake that all beginners make is to remain in the market even when they lose while in reality it is stupid. Only profits must run, losses must be cut as soon as they arise.