Can You Get Started With $100? (Stock Market For Beginners)


Hey, it’s Clay at claytrader.com. So, can you get started in
trading, can you get started in the stock market as a
beginner with just $100? I wanna respect your time, so I’m gonna answer that question
right from the start here. Yeah, you absolutely can,
in fact, on the screen here you can see how I started
an account with $100 and now that account
is valued over $6,000. With all that being said from a transparency and
disclosure point of view, does this happen over night? Is this a situation
where, hey, I have $100 and then two weeks from then, you’re out shopping for your
Tesla and beach side mansion? Unfortunately, no. I get it, a lot of people
out there imply that. It’s a great sales and marketing ploy. But the truth of the matter is no, that’s not how it works,
it does take time. And that’s really the
first thing to point out and first note to make is, yeah, you can get started with
$100 but and the but is, you need to go into this
with a realistic mindset, you need to go into this with a framework of how things actually work
and the fact of the matter is, as, kind of, maybe
anti-climatic as it may be, it just takes time but if
you are able to accept that and if you’re okay with that, then, yeah, you can definitely get started with $100. Preferably, you start with more than $100. So, that’s something to keep in mind as we go through some numbers here that, had you started with
even a little bit more, the numbers add up that much quicker. But we’re gonna use $100 from the baseline to show that it is definitely possible. Now, a little distinction here. There are two forms that
you can go about this from a money management point of view and that is active income
versus passive income. What you see on the screen here is actually from a passive
approach and in fact, in a couple weeks, I’m
gonna be putting out a video of how this actually occurred, how I created this
source of passive income so, keep an eye on the
channel for that video. But you can also take an
active income approach and that’s what I wanna go over here, is how you can be active
and still grow that $100. But I also don’t wanna talk in theory, I wanna use actual, real world numbers and I wanna take a real world
example so that we can see how this would’ve played
out in the real world. There’s nothing worse
than just sitting there like you’re in school
and you have a textbook and you’re like, “Okay,
well, that’s great, “that’s all theory though, “can we take some real world examples?” So, that’s what we’re gonna do here. For some quick context, at claytrader.com, I offer a subscription service
and part of that services is, I send out my weekly scans and alerts and this is one of those from that scan. So, I bring that up just so you know that this was actually sent out to members and this all played out in the real world and it’s also giving us some
actual numbers to work with. So, the alert here was just based off of the fact that the price had come down here and bounced off that level on
two separate occasions before. So, that’s kind of besides the point. What I’m really after though
is, let’s look at some numbers because with numbers, we
can see and you can kind of just visualize much better, how the $100 would begin to grow. So, in this case, as I
mentioned up here, 2.90 and then down there, you
can see once again, $2.90. So, that’s $2.90 per share. So, if you wanna buy one
share, it would cost $2.90 and because you would
be starting with $100, well, there you go, you
can definitely afford more than one share. So, let’s walk through those numbers. First thing first, I hear quite a bit with beginning traders that
are new to the stock market and they think that they need
some sort of finance degree or degree in mathematics. No, nothing like that. So, very happy to report that
yeah, none of that is required as long as you can use a calculator, do some basic addition,
subtraction, multiplication then, as you’ll see here,
the math is very, very easy. So, the first thing you
need to just figure out is, okay, well, how many,
that’s the first question, how many shares can I actually buy? So, what will this $100 buy
me when each price per share, as we just talked about is $2.90? So, let’s plug those numbers
in and you just put $100 over $2.90 and that’s how you do it. You just divide, pull out the calculator. The good news is though
that, in all actuality, online platforms, online
apps that you can use, they’re gonna do all this for you. But it’s always good to know
just in general, how it works. So, that’s the basic way
you would go about it. So, after doing the basic calculation, you would be able to purchase 34 shares. So, at this point, let’s
jump into the real world and see how these results
actually played out for members of the community that would have partaken in this. But for us as a reference
point in using an example, we’ll use these numbers, like I said, as they actually occurred in
the real world of trading. What you see on the screen,
if you’re not familiar, it’s just called a technical chart. I offer lots of other videos on this but this is just gonna serve as a purpose to see how the stock price, off or acted and then, what it offered up from an actual trading perspective. So, just gonna kind of
go through things here. That green line down there,
represents the $2.90 mark. So, you can see, the price
eventually went down there and then, two days in a
row, would have allowed for the $100 to be put to use at $2.90. So, let’s just see how the
price played out after that. So, you can see it begins to move upwards, always a good thing. Moves up some more,
moves up that much more, always a good thing. And then continued to
go up that much more. And so far, it’s gone up as high as $4.33. So again, $4.33 is as high as it went up. That is what it’s being represented by that area right there. Again, $4.43. Once again, very happy to report that there is nothing complicated
at all going on from the math. A basic calculation that
we all learned how to do way back in elementary
school, some subtraction. And the numbers you just need to know are, what did you sell your shares
for, so, the selling price and then you just subtract out what you purchased those
shares for, so again, in this situation,
that’s that $2.90 number which we’ve been talking about. So again, very simple. What did you sell the
shares for, what price and then you subtract the
purchase price from that number. So, there we have our numbers,
again, $2.90 right there. Maybe you’re saying, “Wait a second, Clay, “you said the price went as high as $4.43 “and right here, you only have $4.15.” Very good eye if you were thinking that. But the one thing to keep in mind is, it’s very hard to make the perfect trade, meaning, you sell right at
the very top of the movement before it goes back down. Is that possible? Sure, it’s possible but for accuracy sake and just to keep this as honest
and realistic as possible, we’re not gonna assume that
you made a perfect trade. So, let’s just assume that
you sold it at $4.15 and sure, it did ultimately end up
going to 4.43 but again, very difficult to make the perfect trade. So, for our numbers, we’re gonna use the
selling price of $4.15. And that would give us
$1.25 profit per share. So, for each share you
own, you are making $1.25. And then the last step here, we need to figure out the total profit. So, how much did you actually make? How much did this $100 generate for you? How much did it put into your pocket? Once more, very, very
straightforward math. You’re just gonna take, well,
how many shares do you own, again, how many shares
did you actually buy? And then you’re gonna multiply
that by the profit per share which we just calculated. Thinking back to that
first calculation we did, hopefully, you remember that number but we were able to buy 34 shares. And then, as we just calculated, the profit per share was $1.25. So, 34 multiplied by 1.25. And that would leave you with
a total profit of $42.50. 34 shares, you made $1.25 per share and that equals $42.50 in total profit. Now, this is where things
get really interesting and quite frankly, really powerful. But think about it, the $100
yeah, that’s no more, why? Well, because we got that $42.50 profit, your total account value
would now be worth $142.50 so, there has been some growth. You have grown that $100 to now having a total
account value of 142.50. I wanna take this one step
further though so you can show just how these gains can
build upon one another. Now, to keep the numbers simple so we don’t have to go through
everything all over again, let’s just use the same exact situation as far as that stock
that we watched play out but let’s just assume that
you had actually started with 142.50, that way, you
know all the numbers already. But 142.50, now putting that into play and let’s see how much of a
difference that extra which, doesn’t maybe seem like
a whole lot, $42.50 but let’s see what that would actually do. So, quickly going
through the numbers here. First off, that number
should look very familiar, that was the price per
share in our example, $2.90 but the one difference here being, instead of using that $100,
we’re now using 142.50, which means that we can now instead of the original amount of
shares we could buy, we can now actually get 49 shares. So, think about that. First time through, you
could only get 34 shares. But by just gaining another $42.50, that number is now up to 49
shares that you could buy. So, from 34 shares on our original example to now, 49 shares,
that’s a big difference. To finish off the math, we
have our 49 shares, again, just keeping the numbers the exact same. That $1.25 would be the profit per share. Remember, we’re not assuming that anybody made a perfect trade but still able to get
$1.25 profit per share. Now, all of a sudden,
because you had 49 shares instead of the 34, that would generate a
total profit of $61.25. So, that quick, now all of a
sudden, generating profits, not in the $40 range
but up in the $60 range. Now, where would that leave the numbers? Well, at this point, again,
we no longer have $142.50 in your account because you
need to add in that $61.25 that we just calculated, which means, the new account value would be $203.73. So, you start with 100 but then it grows and then it compounds. Maybe you’ve learned in school
about compounding interest and just the idea of compounding. Well, this is compounding
in the real world and it’s the best topic
really that they should teach a lot more in school because you just witnessed it right here. This is compounding in action,
compounding in the real world and you can see right here,
there is a growth coming. Now, again, are you
gonna be able to go out and buy your Tesla with $203.75? No, you’re not gonna be shopping
for mansions on the beach. But my goal here was to show you that there is growth occurring and that you can make growth happen. At this point, I’m assuming
you’re thinking, “All right, “that’s awesome, Clay that
you can actually grow. “But how do you even buy stocks,
where do you buy stocks?” Well, that’s where you would
need an online brokerage or an app, app brokerage, same thing in the world
of the stock market. And what I would recommend is Webull, I’ll put a link down in the description. And the cool thing about Webull is, they’ll actually give you a
free stock if you use that link. So, just keep that in mind
that, if you wanna get invested, if you wanna start to grow then, Webull is a great choice to use for that, link down in the description
box and you can check that out. Also, there are lots of
other videos on the channel that walk you through how to buy a stock, what is the stock market, how do stocks make you
money and of course, hopefully, I accomplished a
lot of that with this video but I do offer a whole lot of other videos for beginning traders and
those looking to get started in the stock market, on
the channel as a whole. So, on that note, definitely be sure to
subscribe to the channel and you can check out whenever
I’m releasing new videos. Like I said, today, we
talked about active income and how I grew that $100 to
over 6,000 but in the future, I’m gonna be releasing
how exactly I did that through passive income. So, by subscribing, you’ll know exactly when that video is released. So, hopefully, you learned some things. If you have any questions,
I’m here to help, leave those down in the
comment section down below or if you have any
suggestions for future videos, I would love that too. But if nothing else, if
you enjoyed this video and like me to keep making
videos such as this then, hit that like button and
also leave me a comment below and just say, “Clay, thanks,
please keep making these,” and I will devote my time to doing these. And also like I said, just make sure to subscribe to the channel so that you can keep up to date on all the other videos that
I release in the future. So, thank you for hanging out. Get out there and start growing. Keep things from a realistic standpoint but it’s possible as
long as you go in there with a grounded in reality perspective and you have a strategy in place and you go about things
in a very wise way, which again, that’s what
the channel is designed for, to help you go about all
this to approach the market and approach growing money
in a wise and methodical way. So, thanks for hanging out.

19 Replies to “Can You Get Started With $100? (Stock Market For Beginners)”

  1. I really was respected your early videos and things that you spoke about, but now i am very sceptical about these things that u promote. What happens Clay, are you still the same one that i watch a few months ago? Are those sites and apps legit? And let's be honest, with 100$ you can only succeed to be in the 90% of those people who lose money in the market. All the best Clay.

  2. Hi Clay, I just finished the first part of the CTU, thank you for such extensive training. I wasn't expecting 25+ hours, but every part was solid information with no filler. I feel far more prepared to begin trading now. I'm intending to be able to leave my day job in a few months, and I feel now I'll be able to replace my current income. Looking forward to the rest of the course, again thank you!

  3. A promo for Webull? — the demonstration for growing $100 into thousands is hilarious. Making money is so easy. Wonder why every trader is not a millionaire?

  4. Unless you know what to look for this is probably the worst time to learn to trade even experienced traders in general. Most People dont understand only reason stock market is going up right now is becuase the federal reserve is printing money and giving it "banks" (investment banks) then buying up all the sell orders to make the market seem "normal" even tho is so blatantly manipulated. And you got people like this. Shill or not he should know better. Ask yourself why are insiders selling? It's a game called dumb money and smart money. I got out and went all in on silver becuase while all the paper assets ballooned silver stayed for most of the time. Looks into it you will not regret that choice

  5. Just getting into trading and I opened an account with $100? I started with that amount not because I think I can turn it into a lot of money in a short amount of time but because I can afford to lose $100. It might be flawed but I figure if I can become consistent trading with $100 then I should be able to grow my account from there. I don’t see the logic in opening a $24000 trading account just to blow it up trying to trade big. Once I get that much money in my account I will have the experience to handle trading with that much money.
    This is just my opinion and you know what they say about opinions lol

  6. Hey clay. I really need some advice about how to get started trading. I've searched over 300 videos on how to do it. I'm sick of leaving pay check to pay check and I have 500 dollars to start with but only want to put in 200 into etrade that I just opened up. I got like 4 apps for simulated trading and 3 apps on the basics. I'm really cautious about how to spend money on this and taking baby steps

  7. I need like a step by step guide on what to do. All these numbers and floats and stuff looks so overwhelming that I just dont understand. There is so much to research and I dont want to rush into things. One things I've learned is emotionally doing this will ruin me so I want to go in prepared and knowledgeable

  8. So to make things clear for my sake: do we need a broker for online trading? should we open up a new bank account for this money? Does the money get taxed?

  9. I started trading a week ago and for my first week I made $20 I've put in $200 out of pocket. I know that is probably plenty to start out with, to get my feet in to trading but I was wondering when it I should invest more and how much. I know I should wait till I understand exactly what I'm doing. just want you opinion if possible or anyone else in the comments thanks

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