Aside from investment capital, extreme investing may call for additional operating expenses. And remember, this is a business, so you need to have a business plan that projects your expenses. It's likely you have some or all of these already, but the following is a list of some of the expenses you can anticipate:
- computer system
- Internet hookup and monthly fees
- trade books and periodicals to learn the trade
- data feed and software for market information
- monthly fees for your data hookup
Expect to pay $150 per month for services and necessary research support sources. In any case, you will need to be online with a computer that doesn't make you tear your hair out because it's so slow. If you have an older Macintosh or a 486 PC, take it straight to your nearest charitable organization and be prepared to get new stuff (cha-ching!-that can run another $3,000 or more).
Trading stock options, trading in junk bonds and getting involved in IPOs require a slightly less fancy computer setup than does day trading. You don't need rocket execution speed, but you may want a bigger screen to play with graphs. No matter where your extreme investing takes you, though, you do have to spend money to get up to speed. Books, newsletters, seminars and other educational opportunities are available for free or for a fee; most are available over the Internet.
At this point, you don't have all the information you'll need to begin extreme investing, but you have a rough idea of the costs involved in getting set up for this venture.