What is a good amount for a beginner to start trading forex. I’m asking because I noticed that when selecting a demo account you usually can’t go lower than $10000 so I was wondering if that was the ideal amount to start trading or if it’s okay to invest a smaller amount.
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If a newbie can spare say $100 it will be nice, so they can afford to enter several positions especially when there is pullback
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You will blow a $100 live account as you will get greedy, and picking up a few dollars here and there is not what you expected.
I would suggest you practice on a demo account, aiming to develop a profitable strategy and process you will stick to for every trade, before moving on to a live account. Limit your risk exposure to 1% for each trade for starters, keep to a max of 5% per open trades.
IMO, a minimum of $500 would only brings you a small profit that will buy you lunch, while $5,000 at 1% brings you $50.
However, you will also experience losses, and at $50 a time you will see why you need a large account size to hopefully prevent you from blowing it - as long as you keep risk exposure small.
I’ve had 13 consecutive losses on different pairs while I was practising on a demo account a few years back. So beware.
Best of luck.
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No, there have so many brokers where you’ll be able to use small demo trading capital like $100! Honestly, big amount in demo is meaningless!
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If you are profitable & consistent enough then you can start with a small trading capital; as a new trader you should start with tiny amount!
When you start trading you will probably not have a huge capital to trade with. You can start very small.
The bigger risk is to put in too much capital - if you deposit so much money into your trading account that you need to withdraw profits each month so you can pay your bills, you will never break out of this hand to mouth cycle. The idea is to grow your capital by a percentage every year: withdrawing capital is like deliberately making some of your trades into losers.
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IS there anyway i can reach you on any social media bro?
mind giving names?
just send me a message on this site.
Is there a way to send a direct message?
@goodbadboy You can change your demo account balance though. Like I received a balance of $10000 on my demo account with AAAFx. Later I asked the team if they could change it and they did. Just start live trading with an amount that you are comfortable with. For demo, I think it doesn’t really matter if it’s more or less as long as you are implementing risk management.
Calculate how much to put in your account by comparing your strategy with your targets.
Dreams aren’t targets. Targets aren’t strategies.
If you don’t have a strategy, you can put whatever amount of capital you like into your account, it won’t make any difference.
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You need to detach your thinking from monetary amounts and focus on the growth you can achieve. End of the day if you can’t get together a decent capital amount for trading you can always look to a prop firm to get decent capital but you need to be a half decent trader first and foremost. Use what you can afford to lose. Your goal is to keep your capital safe and that is the hardest part so invest what you can afford to lose. If you are keeping it safe and making profit you can always add to it remember.
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This is the best way to learn and understand the market using minimum risk.
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Invest what you can afford to lose. Start your demo account with the balance that you will start your live account with down the track. That way, the profits/losses you experience in demo will be the same as live and you should feel comfortable with that after demo trading for a period of time.
As someone else said, don’t think about the dollar value, think in percentages. If someone said to you they made 1% return on their investment every week, that would sound pretty good wouldn’t it? If I said I made $1 a week, would that impress you? Probably not. What about $1,000 a week? Probably! Depending on the value of the investment, these returns are actually the same (1% return on $100 account is $1 and 1% return on $100,000 is $1,000).
Don’t be greedy! Don’t risk your capital trying to make big $$, focus on the percentage and do the hard yards in demo and you can be successful. Good luck!
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Good advice to digest indeed