Smart Money

[JonnyFX]

Do not borrow or use your credit card to fund.

Also, the mindset when you are demo-ing is a
world apart from actual live trading with your
hard-earned money. So, never fool yourself.
Demo-ing is always easy and way easier than
when your real money is on the line showing
-500 or more on your trade.

[kia4ever]

I'm a beginner at this, (I have been trading live for about 3 weeks now and have been demoing for about 2 months)

Any ways, what you are contemplating I actually did, I took out a 5000 dollar loan at 7% annual interest, and I don't regret it. The thing is I'm 21 and I'm on an army course right now, so I got the money to risk. Also my course is not boot camp (which I already finished) so I have my afternoon's off. At 7% interest I only need to make about a dollar a day, so far I have made about 200 dollars, another 150 and I'm interest free for the year.


But there is a huge difference between real and fake, with fake I was averaging around 200 a day, no way in hell I'm going to try that with this money. I'm going to put in 5000 every 2-3 months and just double what I'm investing, I calculated by the time I have 50 000 grand using my current "wussy" method I should be able to make about 2-3 grand a month, which is a decent amount.

If you ask me I say go for it, try to make a dollar or two dollars a day, but trust me you'll make more if u take things safe, and have patience, I made 30 dollars today, doing nothing. That's money I didn't have yesterday, I know it's not impressive, but It's a numbers game, I had to pay my bank a dollar today for the interest on the 5000 ( oh ya my broker gave me 40 cents to )

[Cdawg]

Good for you kia!

If I had found out about FX trading when i ws 21, i would take the risk as well i think.

As I'm a wee bit older and possibly wiser (???), I tend to look at what is the worst thing that could happen. So if I happen to blow my account (which i'm not planning on doing EVER) then at least i won't have the feeling of losing 5k and still owing it to the bank or whom ever.

My plan is to add funds every month untill I have a decent balance to generate a nice return but only after 1 year of succesfully trading my mini account.

I think by slowly ramping up your account balance, by the time you get to where you want to be, the numbers wont bother you and as 2pips pointed out, you'll get alot more practice time. I dont think i could handle jumping from $1k to $100k in 1 day mentally.

Best of luck to you!

[ravel96]

Many people think that taking a loan is a great idea. As has already been said, once you're trading with the pressure to create returns to justify the loan, you can easily become an entirely different trader.

If you are really confident, then just stick with a small account, and build it over time until you have the $5,000.00 level that you wish to have. If you really are adept at this, then that will certainly happen in time. There's no hurry. Don't apply pressure to yourself that is unnecessary.

[pipraider]

haven't you ever hear of the terrible wallstreet stories... people borrow money in order to trade (some were professionals) who end up in serious financial problems, I would stick with the babypips statement "if you have 10k you can go mini, if you have 1k go micro, if you dont have that much then demo trade"

You havent even been trading very long and already gone through one account I say demo trade in my opinion.

Never think of potential profits but the potential risk

[kia4ever]

oh btw I forgot to mention, that on the 5000 I'm not using the profits to pay off my loan because that would create unnecessary stress, I pay 100-200 bucks a month out of my paycheck for the loan. Then I wait to save up another five thousand to deposit that, I have to pay 25 dollars each time so I'm not going to deposit money monthly, but ya 5000 is a magical number. I would never go in with a thousand

[kia4ever]

Originally Posted by Cdawg

Good for you kia!

If I had found out about FX trading when i ws 21, i would take the risk as well i think.

As I'm a wee bit older and possibly wiser (???), I tend to look at what is the worst thing that could happen. So if I happen to blow my account (which i'm not planning on doing EVER) then at least i won't have the feeling of losing 5k and still owing it to the bank or whom ever.

My plan is to add funds every month untill I have a decent balance to generate a nice return but only after 1 year of succesfully trading my mini account.

I think by slowly ramping up your account balance, by the time you get to where you want to be, the numbers wont bother you and as 2pips pointed out, you'll get alot more practice time. I dont think i could handle jumping from $1k to $100k in 1 day mentally.

Best of luck to you!

Thanks for the kind words cdawg, my goal is too reach 100 grand, it's strange, the more money you have the safer this thing gets, I trade at 50 times leverage, and I go in with such a smallamount that I need to make 50pips to make any money, so I don't really stress out, if I mess up, I just lower my average. That's why I call it the wuss technique, but so far it's been working

[pipraider]

If you are planning on actually doing thins always remember bulls make money, bears make money while the pigs get slaughtered, don't get greedy and go over the money management once again.