$5000USD to start, what should I do?
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  1. #1
    Join Date
    Dec 2006
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    7

    Default $5000USD to start, what should I do?

    ok, guys, i have around 5000USD to spare to invest into FOREX and i am deciding whether I should join Oanda or FXCM.

    i would like to ask, is 5000USD sufficient enough to use a 10:1 or even a 20:1 leverage?

    i would like to trade long term and may only open 10K-30K at a time.

    thank for your help

  2. #2
    Join Date
    Dec 2006
    Posts
    15
    If you want to trade long term you will have to have very wide stop losses. With $5000 you should open up a "Micro" and make sure you don't over leverage yourself. I know FxSol offers micro accounts, but I'm not sure if Oanda does. I know FXCM only offers mini accounts. A micro account will allow you to take huge swings so I think it will suit your long term trading style.

    Hope that helps.

  3. #3
    Oanda allows you trade micro lots and even smaller if you wish. I agree with fanatic. If you gonna trade with a 5k, stick to FxSol or Oanda although they're not my first choice. Due to your initial capital, you already limit yourself to broker choices.

    I would NOT even think of trading mini lots with 5k. That's suicidal. You will not last long in this market.

  4. #4
    Join Date
    Dec 2006
    Posts
    7
    so should i best apply for a '1k contract size' account at FXSOL???

    FLEXI Contract
    Contract Size..........................Currency Units
    1K .............................................. 1,000
    5K................................................ 5,000
    10K ("Mini" Contract) ....................10,000
    50K.............................................50 ,000
    100K ("Standard" Contract)............100,000


    http://www.fxsol.com/trading_platform/flexicontract.asp
    Last edited by conan; 12-14-2006 at 12:59 PM.

  5. #5
    Join Date
    Mar 2006
    Location
    Babypips, USA
    Posts
    534
    With only $5K USD, I would stick with trade 1K unit lots. You can practice sound money management this way - one of the keys to survival in this game!

  6. #6
    Join Date
    Dec 2006
    Location
    Pakistan
    Posts
    55
    i would recommend you FXCM as i am also trading with them. 5000 USD is good amount to start and you can make money. i am not sponsoring them at all. it is there simplicity and easy trading station that will facilitate you. start there mini trading account but first if you have traded some strategy on demo and know its rule and have confidence in that along with pure money management both in lot sizes and stop losses along with selection of currency pairs. if you dont have than this would be a sure way to destruction what so ever your broker may be.

  7. #7
    Join Date
    Dec 2006
    Posts
    7
    Quote Originally Posted by Pipcrawler View Post
    With only $5K USD, I would stick with trade 1K unit lots. You can practice sound money management this way - one of the keys to survival in this game!
    Quote Originally Posted by hello1234 View Post
    i would recommend you FXCM as i am also trading with them. 5000 USD is good amount to start and you can make money. i am not sponsoring them at all. it is there simplicity and easy trading station that will facilitate you. start there mini trading account but first if you have traded some strategy on demo and know its rule and have confidence in that along with pure money management both in lot sizes and stop losses along with selection of currency pairs. if you dont have than this would be a sure way to destruction what so ever your broker may be.
    Quote Originally Posted by piplicious View Post
    Oanda allows you trade micro lots and even smaller if you wish. I agree with fanatic. If you gonna trade with a 5k, stick to FxSol or Oanda although they're not my first choice. Due to your initial capital, you already limit yourself to broker choices.

    I would NOT even think of trading mini lots with 5k. That's suicidal. You will not last long in this market.
    hallo guys, thanks for your opinions. some of you are telling me it is Ok with 5K and some of you are telling me what to trade. i am really not sure what to do.

  8. #8
    Join Date
    Dec 2006
    Location
    Pakistan
    Posts
    55
    can you tell little bit about your trading experience.

  9. #9
    Join Date
    Dec 2006
    Posts
    7
    Quote Originally Posted by hello1234 View Post
    can you tell little bit about your trading experience.
    i have been playing with the FXCM demo account for one month

  10. #10

    Smile Practice more

    Conan,

    What has been your experience this past month?

    I would recommend that you practice some more before you try real money.

    Come up with a workable trading plan, practice, back test it and don't go trading real money until you are consistently proficient with practice money.

    Some recommend that you demo trade for at least 3-6 months before you try with real money

    My 2 cents

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