Hello,
I’m a beginner who’s still learning about Forex and I intend to go live in 6 months.
I’ve seen many people say that Forex is not a get rich quick scheme. That I agree with.
But is it possible to make a good side income (say a couple hundred a month) from trading, with relatively low capital (say 5000$ to 8000$).
Thanks
you can make way more than a couple of hundred bucks a month if you plan on starting with 5-8k, but that’s too much in my opinion.
Thanks. It’s just that I see way too many posts warning against wanting to get rich quick. It had the effect of me lowering my expectations to the point where I started thinking it might just not be worth it, unless you already have a good amount.
For years, we have seen Hollywood movies selling us the idea of finance gurus, who get rich overnight with their courage and intelligence. Now, how many people have become really rich with finances? If we see the list of Forbes, the vast majority of the world’s 100 richest are not bankers, they are people who have companies that produce “things” and make money with them
Trading, more than a job is a philosophy. It is based on the fact that, with little work and much ingenuity, you can “win” the market with small operations with a lot of leverage (that is, you put your money € 1 but buy options for € 400, for example).
But there are many types of Trading, and among them, in which you can win the most, and lose, is in the Forex.
My recommendations:
• Don’t even think about putting money in before knowing anything. There are trading platforms that can be “played” with fictitious money. If you want to try, do it from there.
• Research in Forums, articles and videos about Forex. Although the best courses can be paid, there is a lot of free content that will help you get started.
• Spend a lot of time. You can’t pretend to make money on a recurring basis if it’s a hobby that you spend a couple of hours a month on. If you want to earn a lot of money, then you will have to spend a lot of time.
I agree and I intend to put in time and effort. Also now I’m reassured I can start small and experiment first.
But not everyone is influenced by movies and far fetched success stories. I just think that keeping the reward in mind helps during the journey. And that reward should not be too small or one will lose interest.
Stuff that’s been mentioned already study the how and the technical first then through and account practice and test all this and at same time develop your trading strategies and triggers back test and when you happy open a live account for let’s say 2k and only ever risk 1% or less depending on your confidence as when you trade with real money the whole Psychology changes be strong minded trust yourself if in doubt don’t do it
It is almost imposible to build profit expectations without any information on strategy, attitude to risk, and psychological issues.
First of all it is important to keep in mind that risk and profit potential are closely related, so if you would like to get more profit, you will have to expose your account to higher risks. For sure, you can vary risk in a range from 1:2 to nearly 1:15 (for rare mid-term strategies). Conservative professional traders managing henge funds could earn nearly 20% annually. If you would like to have higher yeld, you will have to increase your risk.
The main idea that making first steps in trading you should not make assumtions on future profits because it is almost impossible to predict your future performance accurately enough to build financial plans. Thus, you will be able to conduct planning only after several month of trading on real account when you will have a track of record and calculations on trading statistics.
I would definitely start with a practice account, no doubt about it. However, practice accounts can be misleading depending on the broker. They’ll give you $100k, $500k, even $1 million to start and you’ll take unrealistic risks which may earn you thousands. Don’t fall into this habit because you will lose it all on a real account. Practice accounts are typically designated to teach you the basics, and some run their charts in loops rather than in real time.
Find a broker where you can open a practice account with, I’ve found OANDA to be very reputable and their practice and live accounts don’t differ, plus their platforms are very user friendly and easy to read. Next, open a sub account and transfer ONLY the cash you plan to work with in real life, so $5000 to $8000 in your case, then you go from there.
Like the rest have said: Work, work, work, until you’ve developed a strategy you’re happy with. It takes a lot of time and patience, but with consistency, dedication and will power you cam get there.
Can’t agree with some replies. To my mind, $5-8K is the minimum to trade on the forex if you are looking for consistent profits which are big enough to live on. We recommend having $20-25K as a good start. Considering 5% monthly income as a possible return over a year term, you will be looking for about $1,000-$1,500 net profit.
Though, you have to choose either you are becoming a trader by yourself or you trust your money to professionals (as you do when you have any dental pains).
My expectation from forex trading is to earn money in realistic manner. I have put my sufficient time in learning the basics of trading with the help of demo trading account. But still I am learning. however, what I simply love about forex trading is: I can earn money with the forex as per my liquidity needs.
Thanks for your replies. I am still demo trading myself. These expectations are long term. I’m thinking about starting small, and after gaining experience quitting my job becoming a full time trader. I just wanted reassurance that the journey is worth it from people who have been there. I am more confident and motivated now.
Whatever amount you want to make consistently; you need to make sure 1st your own trading skill!
In your case it’s better to start from the trading on some demo account so you would have some ideas about that case, see my point ? I do get that you have some capital which is very very good, but wait out with that, you can do more over time.
you don’t need 20k to start trading forex, or to become profitable. You can start with much less than that
I believe $20K is the good amount to trade in the forex. We were talking here about a hypothetical amount to have to leave on it.
that’s an amazing amount, but not necessary to start with
I would say, an amazing amount is about $200,000. Some people come to us with such deposits and ask to trade as risky as possible.
Much as it pains me given your reasons for posting: I have to agree with you re: capitalization requirements (for ANY market).
I still don’t understand why 99.9% of traders (around here that is) believe that they can start out with a minimal amount of funds and be able to make it in this business. It’s just not going to happen. And don’t fool yourself into thinking it is because you have access to loads and loads of leverage that it’s going to be possible. It’s just not going to happen. At some point or another: that leverage will be the direct cause of you wiping out no matter how good or how special you think you are. And without decent capital: trading will never be anything more than a hobby and you will slowly bleed away your limited funds. It may take some a few months while others may accomplish this in a day. But the end result will be the same eventually. And being under capitalized or trading with a minimum amount of capital will in and of itself teach bad habits. No person in their right mind is going to be happy committing hours, days, or weeks to make $10 in a month (even if that $10 represents a 50% gain or some or the other ridiculous percentage gain for the month). Sooner or later the trader will get fed up and impatient with this and start over trading or going balls-to-the-wall on a trade. And, well, once again: the end result will be the same.
Anyway. Here’s a link to an article that popped up yesterday and that was originally posted on another thread by @PipMeHappy some time ago. Makes for some interesting reading for those of you who don’t quite get it yet.
https://www.netpicks.com/reasons-traders-fail-1-undercapitalization/
But and as always: the above and the information on the link will be ignored for the simple reason it’s not anything that anybody WANTS to hear.
I’m doing very well without starting with a 20k account every week lol but to each is own. If you have the skill and use proper risk management, it’s not necessary
Hey.
For sure there will be exceptions. But VERY few though. And if you’re doing great and with far less capital and high leverage: I could not be happier for you (and I sincerely mean that). And I can tell you that if that’s the case: you’re in the top ONE percent that are able to control their greed and adhere to their risk management rules whatever they may be.