A declaration of independence to your Bank Account Manager

by Werner Hochleitner

Dear Mr. Smith!

I hereby hold the following truths as self-evident, that all investors are created equal, that they are endowed by a their Accounts Manager with certain unalienable Rights, among these are to invest wherevere I want to for an pursuit of Happiness

That to secure my point!

I hereby apologize to all US-citizens for the blasphemy but I hope you get the idea and don´t get mad at me for abusing the "Declaration of Indepence" for the cause of proving a point!

Have you ever though about what a Fonds Manager does the whole day and what they have to keep in mind when working on the capital markets? 

In 2016 I saw a video from an professional Future Trader (no name dropping here) who said in an interview:  “When you want to start as an Investor or a Trader you should have at least 500.000.- Dollars, everything else is just childsplay”


What a prejudiced and actually insulting talking!

It´s like, if you do not got born rich, you have no right to participate. Sorry, I have a different opinion!

Fortunately I´m not alone!

More and more professionals agree that 10.000.- or even less are more than enough to get started!

Yes, getting started NOT become a millionaire!

It has become an accepted truth

There are opportunities to start as an Investor with a small account.


You can do it a similar way the big players do.


It´s possible and it´s also not a hard thing to do.


What you need to invest in forefront is time.

Without analyzing yourself regarding your risk preferences, regarding the time of how long you want to get involved and a few more of those you better should not start.

I want to show you some guidelines of how to approach the endeavour the best and easiest way. Without losing the focus on the small account size.

Talking about size

In a portfolio, size matters thats a fact, but different than you may think.

Let me explain that in more detail

Lets do some real basic calculations:

Yes, you can start with 1.000.- but results that will make you more happy could be archieved with a starting capital of about 10.000.- (my recommendation)


The problem with everything under 10K, is that you may get disappointed by the amount of your returns.


Making 15% a year, sounds ok for someone who has 100.000.- on his trading account, but doesn´t look that impressive when on a 1K account and you just got 150.- more within a year

With a 10K account you would have got 1.500.-, thats already nice.

A Friendly Reminder

Let me remind you at this point that the inflation is 2% and you get around 0,3% on your savings passbook and even less as your account interests.


This just in case that you think 15% a year is not much! (Yes, with Daytrading, a higher interest rate is possible, e. g. Dan Zanger made 400% a year and more)


A portfolio is something that is made for safety oriented investors, it´s asset allocation and asset diversification

That brings the safety to this kind of investing. If one of the products in your portfolio fails, the others are there for the rescue...

This really needs to get into your head! 

Another Example:

You put 5.000.- on your brokers account.

  • 3.000.- gets invested in 2 different ETFs and an additional Fonds.
  • 1.000.- you use for swing trading on Blue chips (the biggest names on the markets)
  • 1.000.- you use for daytrading

Job done, safety installed, portfolio created and you still have the option to do daily, more riskier investments.

2 more reasons people tend to have when thinking about building a Portfolio are the following:

  • I don´t want to sit aside the computer all day, I want my money work for me
  • I don´t trust the Bank, I want to have full control over my investments.


OK, the later one is a little tricky and depends on your experiences with your Bank but the first one is something we can talk about

An Investment Portfolio is a commitment for the long run

It´s not something you check every 20 minutes if something has changed

What you search for is a constant, safety oriented growth of your account size

Safety costs % in annual growth but let me point this out one more time: Portfolio Investment is safety oriented asset allocation for long time investments, means over years!

How it works

With constant growth, the compound interest effect comes into play

Lets break it down with the above mentioned example of an initial investment of 10K and annual increasing rate of 15%.

1 year 10.000.-

2 year 11.500.-

3 year 13.225.-


7 year 23.130.-       more than doubled the initial deposit


10 year 35.179.-      you see where this leads too

Given, the examples are broken down to the core ideas but you see where it could end up

One more reason to learn about creating an own portfolio, maybe as a unique savings plan for your kids?


Investing and building up a portfolio with a small account, is that even possible?

Yes, is it!

And remember:

It´s about getting started and not about to become a Millionaire!!!