For about a week ago, I was looking at my paypal account with 40$ on it. and I thought. It would be nice if it could invest them in someting, but where?
Then I started searching on the net for paypal investment, and suddenly I ended up on etoro’s homepage. I did’nt have enough to invest there but this god my interest and I started to read about forex.
Now, my question is is it possible to slowly start trading with a little as 20$?
And what strategy should be used?
I know its recommended to start with a lot more, but for me it just for fun and a way to learn how it all works.
Some borkers even give you 20$ to start with for free
Im thinking on using 5 min to 1 hours charts and use about 30 min each day, and take profit about 2% on each investment.
There are a few other brokers with nano lots. I happen to use and like Oanda and would say they are a good choice for a nano account.
Keep in mind $20 probably wont make you rich. I do think you should demo long enough to learn the platform you will be trading with then open a real money account. Even $20 thats real will give you a better feel for how trading works and you never know if you are lucky or good you might be able to treat yourself to a pizza with your profit in a few weeks;).
Read the Baby Pips School and learn how to manage your risk. Parts of the school will tell you that you need more capital. You do when you get serious. $20 is the start of a good cheap education.
I just got a $10 account up to about $60 in 30 days it was way more work than it was worth in real money. I decided to go for the big one because I could not maintain the hrs of screen time my trading required. the account now has about $35 in it:D. A $10 or $20 account can be fun and a good way to test strats.
The way I did it was with strict money management ,lots of trades and aggressive compounding strategy.
If the $20 account has lot size is small enough so that 1 pip = 1 cent it would be the same as trading a regular $2000 account with 1 pip = 1 dollar so it would be a pretty good learning experience to trade the 20 dollar account.
I started an FXCM account with $50 on tuesday of this week and am now at 81.93. All I have been doing is scalping GBP/USD volatility though. I had my first margin call but only because the amount I had staked ended up going below my balance because I had 2 lots open and it swayed a little too far haha.
It shouldn’t ever be about [B]how fast [/B]you can turn ‘X’ amount into ‘Y’ amount.
Instead you should focus on learning how to, and making quality trades and growing your account steadily, rather than over-eagerly racing to make big profits.
“Quality Trades”? seems to me Robshan is perfectly well on the right track. His method seems to work for him. He wins, he wins, if he starts loosing he will find out fast too.
Any winning trade WAS or IS a Quality Trade. Any loosing Trade was a S#$@W-Up.
1)Demo trade for a month
2) Save US$ 500 and open a real account
3) After you blow your account (trust me you will), demo trade for another month
4) Save US$ 500 and open a real account. This time follow your rules and learn form the first experience. Try to make a reasonable goal, maybe 10% a month to start, and then keep increasing your goals little by little.
4) Once you are profitable in a real account, save some more money and send
it to your account.
I am a newbie too.I wish to start with 20$ in oanda.Cause they support paypal.
I have a question,what leverage will be best for me.Oanda support 10:1 to 50:1 leverage.currently i changed mine to 30:1.
Can anybody explain how this works.What leverage will be good for 20$ investment?
It depends on your strategy, not on the amount of cash your using, I use 50:1, but I have a very specific strategy that uses that high leverage, to make high profits on a small number of pips.
I like FXCM and have an account with them their platform is great. I would recommend at least $500 to start with because the minimum lot size( 1 micro lot) may cause you to risk a lot per trade. If you are going to start with less than that I would go with a broker that offers nano lots or flexible trade size.
This is a babypips sister site, I’m sure babypips would like to point out that since they wouldn’t want to be biased, that there are other review sites available!
If you want to gable you can start trading right now but what I would suggest before you start trading real money, you should trade for months if not years a demo account until you learn and feel comfortable with technical analysis and fundamental analysis (economic fundamentals, CPI, PPI, GDP…) You also must follow the news of both currencies in the pair (example EUR/USD, USD/JPY) The next thing you need to do is create a strategy with money management control. Since now a year or two have passed and now you understand the currency, you can start trading real money. Make sure you do all of this with extreme discipline.
