Do you have to start off with some serious capital to do well?

To be potentially profitable I mean how much would a newbie need in his bank account to actually start using Forex properly (after taking time to learn in demo accounts) bear in mind not everyone has a thousand dollars in their account they can just risk so is there a more realistic amount people can start with that may generate some reasonable profit if they play their cards right in time?

I just plan to study the hell out of how this works using demo accounts then eventually get to putting a few hundred on the line but I am worried if I did profit any, that the money gotten would be too small based on the relativley low amount I risked.

So how does it work? to be a competant trader do you have to really start off with some serious capitol or you just won’t make much to really carry on with it if you do reasonbly well predicting.

Hi DT,

This is a good question, and one that certainly can be answered with a big dose or realistic and rational reasoning. Many new traders come into this industry with the intention to make big profits from small investments - and although this [I]can[/I] be done, the element of time needs to be taken into account. In essence, even though the markets can move ‘fast’, your account progression should be slow and steady with an overall goal of generating consistency. At the end of the day, consistency should be every traders goal; once achieved, the next goal then becomes to remain consistent.

Positive expectancy is also key - it’s perfectly acceptable to have bad days when trading; days when you lose money. This is a game of probabilities, and success should be averaged out over the medium term.

Coming back to your question; it’s important to realise that the average successful full time retail trader is making in the region of 5% to 10% per month - more than likely much less. This may seem small, but professionals are more geared to understanding drawdown and capital preservation, rather than capital maximisation. It’s no secret that professional traders very much have the objective of producing profits, but at the same time they want to risk as little as possible (the amount they risk is positively correlated to potential drawdown [the maximum % loss generated on account]) - I’m sure you are starting to see the dilemma here? There is a trade off between staying safe and keeping a stable account whilst also wanting to make profits by having to take calculated risks. Its not easy to find a middle ground, and this will be different for each individual as we all have different personalities.

It goes without saying that you get the occasional retail trader who pipes up suggesting that it’s perfectly achievable to make 20%, 30% or even more each month. This is absolute garbage, incorrect, misleading and uneducated advice from non-professional retail traders who have not crossed the line from novice to full time professional. This is not an opinion of mine because the amount that successful full time retail traders make backs this up. Unfortunately you will start to see that many retail traders are not rational, therefore the way that you and other new traders decipher advice will be of significant importance. There is a lot of good advice here, and also a lot of misguided, incorrect and proven to be wrong advice; which regrettably members still try and shout home about as being correct.

There is no reason why you can not start with a small account - however remain realistic and learn the correct methods. Don’t worry so much about not having $20k-$50k to open an account with. If you can show consistency on a small account over a good period of time then the money will come.

[U]All you have to do is look at a paper example[/U]

Opening account balance $1,000 - Five years later (60 trading months)

  1. Profit of 5% per month on average = $58K
  2. Profit of 10% per month on average = $305k

Learn the basics and learn them well. 5% to 10% profit per month on average may seem small, but you’ll soon be laughing when you have a six figure account…

I was listening until this bit. Sounds like some sort of sales pitch to me.

Yes totally agree 5 to 10% is v gd already. It not i Wan pour cold water on u. But it the fact. Consistency is v important. Nv think n take forex as a fast earning tool. In the end u b more aggressive if u lost n even lost your account… Learn the basic trade with caution learn price action. Nv take short cut. Ask qns if don’t understand, a lot of people here will gv u advice. It also help u shorten your learning cos alot of them come n learn the hard way which no body teach them. Learn earn pips keep pips n earn pips again.

Yes u r right. It sale in a form. Forex is your business. Wat u do in your business? Want sale to be good right? If your business hv 5 to 10 % sale increases I’m sure u b laughing

You’re welcome to take it anyway you like - but im unsure how you have come to this assumption.

start with 100.000$ account balance, once you know how to trade.

Start with 100$ to learn how to trade.

It is a very easy calculation of percentage.

You need 50.000$ a year to have a decent life without too much worries of money. Thats 50% of 100.000$ each year. thats a account growth of 50% and with that you make more than most profesional managed funds which are run by people who studied years and learned the industry for years as their main job, not hobby or part time.

or in other words said: no trading is not for people who have no money and want to become rich. trading is for people who are wealthy, have money and want to become rich.

You need years to learn how to trade. And the possible future benefit is determined by the financials you posses now.
If you have few thousand $ to trade then there are professions you should consider more to lay focus on and invest years of learning. If you have 100.000$ and more and already developed a profession which gives you financial security in your life you can cnonsider investing years of learning into trading.

And this was my point exactly.

Be careful though TURBONero, just in case you make it sound like a sales pitch also :wink:

heeh good point. thou i dont mind people giving me their money so i aswell dont mind if they think im selling them something.

to all: yes pls send me your money, ill return; nothing that has value :smiley:

I can’t help but think that the clue is in the name of the OP ‘DeafToned’; when the advice is loud and clear!

The big problem with the retail market is that when trying to give quality advice it really needs lowering to a tone that is accessible to brand new retail traders - I guess knowing your audience is key here. At least the guys in your thread seem on the ball, good to see some excitement back in BP!

Hey, im new here, i actually read the whole thread, 5-10% seems reasonable. i’ve not been through the whole training bit yet, but i will. i can see how the aggressive nature without thinking about your account balance could very easily swing both ways though. i suppose it comes down to what people want to hear, probably doesn’t want someone saying to take it easy…just wants someone to say yes to give him an excuse to go an put it all on a trade, may as well go do red/black down a casino if you’re going to do that though.

K sorry I was a but abrupt before. I was just wary of the last bit is all but yes I see conflicting info though it seems someone said you do need capital when you start to make this worth while and then someone else says its not that important so I don’t really know which it is.

can you plant a flower without a seed?

can you open a plantation planting 1000 flowers to sell them and make money on it with 5 seeds?

to make money you need to have money. no matter what business it is.

you have no money? you dont do business.

In the same sense there are a lot of businesses that started from the very bottom with nothing…if you have patience and expectations that arent beyond measurable then youd be able to start with a smaller capital. It can be done both ways but it depends on you. Can you be patientwith a smaller amount and build it steadily, or you wanna jump in the deep end with a much larger sum of money and risk more.

K I think I get it. Basically you can slowly build if you don’t start with much. Thankyou all.