Is it bad to trade with a small amount of money
It is a little bit worse than not trading with any money (i.e., learning on a paper trading account until you know how to manage risk with position sizing) and a lot less worse than trading with a few thousand dollars and learning the hard way how to lose your shirt.
which amount is more appropriate for you it depends on your trading knowledge , with good real skill there is a chance to bring good profit by a small amount , on the other hand any kind of big amount can be useless if there is no perfect knowledge and experience.
bring a perfect knowledge as basic and trade in a micro account , i think the beginners should focus on this strategy , amount not a big deal for any beginners level.
amount is really a big deal or not , i think you will get the answer from demo trading where you could see the performance how it works.
there is no one who can predict the real faction of this market with certainly, so it is really difficult to survive in this volatile trading place with a little amount of money.
for the beginners level i think $500 is enough for survive successfully. never kick off live trading with more balance.
A small amount of money will not stop you trading, but a large amount does not make trading easier.
The basic requirement is a consistently profitable strategy. If you have this - and you can run it - you will make money from any account size. If you don’t have it, you will lose money, whether you start with a thousand or a million.
Keep in mind the objective is not to be rich beyond your wildest dreams and buy a Ferrari. It is to have enough money to live on comfortably and never have to work hard again for the rest of your life.
2 Likes
its a very good reply with some good information, thanks for your nice team.
If you are completely new I’d ask why risk any money. Plenty of places you can put that money to work outside of forex to make more money until you are good enough to not just blow it straight away.
Low investment prevents risk management in trading. This requires adequate investment. It is possible to gain satisfaction by making profit.
No its not bad. Before you do, understand what you’re trying to achieve and what your aims are. Make sure they are realistic. Then manage your risk. Good luck.
It’s not bad to start with a small balance however, it can be more challenging. You need very strict risk management to prevent blowing the account quickly. If you are new to trading I would advise you to work on a demo account first to gain knowledge and understanding without risking anything.