You are wondering how much money is required for stock investment and how much money is best to start with.
Especially for beginner traders who are new to stock investment, it should be worth knowing about “how much budget should start stock trading” and “what percentage of deposits and savings should be invested”.
So, this time , I summarized how much money beginner traders will invest in stocks and what is the ideal initial amount of funds for buying and selling stocks .
If you read to the end of this page, you will find a guideline for the initial amount of stock investment and the best way to buy and sell stocks for each budget.
Table of contents
- 1 The average initial fund for beginners is 300,000 yen
- 2 Win rate drops with a small budget
- 2.1 You can’t buy major stocks with a small amount of money
- 2.2 No chance to earn
- 3 The royal road is to gradually increase the investment ratio
- 3.1 Ideal way to increase the investment ratio
- 4 Stock investment method by popular budget
- 4.1 100,000 yen
- 4.2 1 million yen
- 4.3 10 million yen
- 5 How to win almost by investing in stocks
- 5.1 Who is a stock investment adviser?
The average initial fund for beginners is 300,000 yen
As you can see in this headline, the average budget of individual investors who are engaged in stock investment for the first time is said to be about 300,000 yen .
When you hear this amount of “300,000 yen”, does it seem like you can manage to prepare it?
By the way, even if you cannot prepare 300,000 yen, it is not impossible to invest in stocks.
This is because you can find stocks with a price of around 30,000 yen per unit (100 shares) in the stock market, and there is also a system called mini stocks.
In particular, the latter mini-stock refers to stock that can be purchased from one-tenth the unit number of the original stock.
As long as you can buy in 1/10 unit units, if one unit is 100 shares, you can buy from 10 shares.
So if you have a limited amount of money to invest in stocks, I would like to consider using mini stocks.
By the way, when the manager first worked on stock investment, the amount of funds was 450,000 yen.
This 450,000 yen is more than the average initial fund amount for stock investment beginners, but now that I think about it , I think I should have increased the fund a little more .
I would like to explain why this caretaker is now a little regretful that he should have increased his funds.
Win rate goes down with a small budget
Earlier, if you wanted to reduce the initial amount of stock investment, you said that you could reduce it to tens of thousands of yen, but if the initial amount of funds is small, the winning percentage of stock investment will decrease.
The reason why it can be said that ” the winning rate of stock investment is low when the initial funds are small” is that if the initial funds are small, the stocks that can be bought are limited and it becomes difficult to manage the funds.
I will introduce the contents of these two disadvantages, “the number of stocks that can be bought is limited” and “it becomes difficult to manage funds”.
You can’t buy major stocks with a small amount of money
First of all, I don’t think there is any need for supplementary information regarding the former options for stocks that can be bought.
This is because there is a big difference in the price per unit of each stock, so if the initial funds are small, you can only invest in stocks with the stocks that can be purchased with that small amount of funds.
By the way, Toyota’s stock, which is one of the best companies in Japan, has a unit price of around 7,000 yen per share, and each stock has 100 shares, so there is no initial fund of at least 700,000 yen. I can’t buy it.
Even in the extreme case of Toyota, the unit price per share of a leading company that leads each industry often exceeds several thousand yen, so it is desirable to prepare an initial budget of at least 300,000 yen considering the range of options. is.
No chance to earn
By the way, if the initial funds for stock investment are too small, it becomes virtually impossible to manage the funds that are very important for stock investment.
This is because stock investment cannot be diversified if the initial amount of funds is small, and the funds in the securities account are almost empty when one stock is bought.
If this happens, even if you find a good brand, you will miss the opportunity to buy it, so you will lose the opportunity to make a great profit.
You can invest in stocks even if you have a small amount of initial funds, but you need to keep in mind that a small amount of initial funds increases the risk of missing opportunities .
The royal road is to gradually increase the investment ratio
I mentioned earlier that it is best to prepare enough funds for stock investment, but it is a little foolish for beginners who are not accustomed to stock investment to spend a large amount of money on stock investment.
Besides , since there is a risk that beginners will make “painful mistakes” that beginners tend to make, it is not wrong to start investing in stocks with a small amount of money.
However, it is highly likely that you will not get the results you want if you are involved in stock investment with a small amount of money just because you are a beginner, so it is a good idea to keep your budget much smaller.
Considering this point, I would like to consider increasing the ratio of investment in assets if we gain some investment experience .
How to increase the ideal investment ratio
By the way, the ideal way to fluctuate the ratio of investment and savings is ” reasonably steadily “.
What this means is that you will start investing in stocks from 5% of your deposits and savings, but as you get used to investing in stocks, gradually increase the ratio of investing in stocks from 5% to 10% and from 10% to 30%. It is.
Ultimately, it would be ideal if the percentage of assets invested in stocks exceeds 40%. By that time, you should have already graduated from stock investment beginners, and the proportion of funds to be invested will increase, so the winning percentage of stock investment will increase dramatically.
Beginners start small, but as they graduate, increase the proportion of money they invest in stocks .
This is one of the winning methods practiced by the majority of successful stock investment beginners, so I’m afraid you can’t adopt it.
Stock investment method by popular budget
I think I’ve talked many times before that “it ‘s best to have a large amount of initial funds in stock investment” and “in stock investment, the number of options you can take depends on the amount of initial funds “.
Given this premise, the optimal investment technique for stock investment depends on the amount of initial funds to be prepared. To help you understand this, we will introduce the best investment methods for each of the three types of investment funds: 100,000 yen, 1 million yen, and 10 million yen .
The first thing we will discuss is stock investment of 100,000 yen, but this is a one-point concentrated investment.
This is because in the current stock market, about 70% of all stocks have a unit price of over 100,000 yen. Therefore, if you are going to invest in stocks with a fund of 100,000 yen, such a method will be the royal road .
- Find a brand with a low unit price
- Buy a brand whose price is likely to rise
- Leave until the target sale unit price is reached
- Sell when the stock price rises to a certain amount
- Then buy a new brand again
- Repeat steps 1 to 5 to raise funds to 400,000 yen
Among the points listed here, the most important point is to repeat one-point concentrated investment and aim for 400,000 yen .
If you increase the funds to 400,000 yen, you can have a few stocks of about 100,000 yen but have surplus funds.
If this “increasing the amount of funds to 400,000 yen” can be realized, the strategy can be changed from concentrated investment to diversified investment, and the winning rate of stock investment will further increase.
1 million yen
Next, I would like to take up the case of investing in stocks with a certain amount of funds of 1 million yen.
The best investment technique in this case is to leave 30% to 40% of the 1 million yen in reserve and maintain the position of 30 to 4 stocks with the remaining funds.
The ideal ratio is 4: 6
By the way, the optimal allocation ratio for surplus funds and investment is 4: 6 .
In other words, the surplus funds will be set at 400,000 yen, which is equivalent to 40%, and the remaining 600,000 yen will be used for stock purchases. Naturally, this 600,000 yen investment destination is not a specific brand, but it is desirable to have 3 to 5 types.
By the way, here is the basic procedure for starting a stock investment with this 600,000 yen fund.
- As a general rule, choose long-term holdings
- Specify the selling price for the purchased issue
- Sell at that unit price
- Keep holding until the unit price is reached
- Purchase a new brand as soon as it is sold
Ideally, the selling price, which is the key point, should be 5% to 7% down on the loss cut line and 10% to 20% on the profit line .
If you maintain this stance, even beginners in equity investment can aim for realistic returns with minimal risk of loss. As a result, it is expected that the total amount of 600,000 yen invested will increase each time the stock is bought and sold repeatedly, as long as the stock is selected correctly.
Surplus funds of 400,000 yen are important
Then, what to do with the remaining 400,000 yen is to leave it as a surplus force when a chance comes.
The reason why it is good to secure surplus force is that there is a timing when stock investment is likely to produce stocks that are expected to increase in price.
For example …
- The soaring period of the Nikkei average like the bubble period
- When the Olympic Games were decided
- A period of social change such as the Great Earthquake
At these times, some stocks are expected to increase in price.
Finding the stock and winning at once when you win is very important in stock investment. In other words, while always trying to make a solid investment, we will boldly raise funds at the right time.
In order to take this stance, it is desirable to always leave about 30% to 40% of the investment funds .
By the way, if it is difficult for you to find a stock that is soaring or to search for a stock for long-term investment, you have the option of getting the help of an investment adviser.
With the help of this investment adviser, the manager himself purchases the winning stock without the hassle of searching for the stock himself. You can read more about this investment adviser here.
10 million yen
The last case is to invest in stocks with a large amount of 10 million yen.
The key to winning a stock investment for a beginner who has turned this large amount of money into a stock investment is not to work on the stock investment at his own discretion .
Humans are vulnerable to loss
The reason why we do not recommend investing in stocks on your own is that the large amount of funds causes a huge loss due to small price movements of stock prices.
For example, suppose you invest 10 million yen in a specific stock as it is. If the value of the brand purchased in this case drops by 8%, 800,000 yen, which is 8% of 10 million yen, will disappear.
No matter how important the loss cut is, if 800,000 yen disappears, whether you are a beginner or an expert, you will try to recover.
If that happens, you will not be able to make calm decisions, and the risk of making a big mistake in equity investment increases.
If a beginner buys or sells stocks on his own judgment in a situation where he cannot make a calm judgment, there is a high probability that it will lead to unseen results. Considering this situation, I would like to avoid investing a large amount of money at my own discretion among beginners.
Talk to a professional and avoid being alone
What you would do if you didn’t manage it yourself was to listen to the advice of professional equity investors.
This stock investment professional is generally referred to as a stock investment adviser, and you can hear about winning stock information, advice on trading timing, and in some cases various investment-related problems.
With the help of an investment adviser, you can think of an optimal stock allocation strategy of 10 million yen, and the risk of making a huge loss by making a selfish investment decision is almost zero.
It is good when you win by managing a large amount of money of 10 million yen by yourself, but if you continue to lose, you will not be able to make a calm judgment.
Considering these points, it is wise for beginners to work with stock investment professionals with the help of stock investment professionals when managing large amounts of funds.
How to win almost with stock investment
On this page, we have introduced the guideline of initial funds required for stock investment and the best investment strategy for each starting fund.
This page is about to end, so I would like to supplement the best investment strategy for stock investment that I introduced earlier.
What is the supplementary point is that the method of producing results by investing in stocks is very simple. In fact, regardless of the reserve fund, if you repeat “buy a stock whose stock price goes up and sell it when the price goes up”, you will naturally generate profit.
Given this essence, don’t you think that finding stocks that can be expected to increase in stock price on a regular basis is the most important point in stock investment ?
Of course, it is very difficult to find stocks that are expected to increase in price on your own, but anyone can achieve it with the help of a stock investment adviser.
Who is a stock investment adviser?
In the first place, what is a stock investment adviser? As I mentioned briefly earlier, a professional investment adviser who consults on stock investment.
If you sign a contract with them, you will be introduced to long-term holding-type stocks that are expected to increase in price over the long term to short-term stocks that are expected to surge in the short term.
Not all of them are correct , but if you are a good investment adviser, 70% of the stocks introduced will be correct . If you repeat the trade of 7 wins and 3 losses for a certain period of time, you can steadily increase the funds.