I don’t have a 3 year plan, but I’ve been profitable over the last 3 years and profitable overall by well over 100% of what I’ve put in. Maybe I am a happy-go-lucky gambler, but I’d say it’s more a case of I’m figuring out what works, learning and becoming more profitable as time goes by.
I don’t have a 3 year plan to make x amount of money, nor do I have a plan to quit my job and live off this. It’d be great if I could make a significant amount of money to do that, but it’s not something I give more than a fleeting thought.
I have to say that with a consistent track record like yours, you’re clearly not a happy go lucky gambler.
But most new traders never get to be consistent. what I was getting at is that for many new traders making a winning trade for enough money to order a pizza isn’t going to satisfy them. even if they could do this day after day after day and even if they could compound their position sizes and therefore profits, they get either scared or impatient or both very early on and ramp up their risk levels.
Without a level headed 3yr plan, taking into account trade frequency, position size and risk tolerance, many traders who realise they still can’t afford a Lamborghini after 3yrs throw everything at the next 5 trades and lose it all.
I completely agree with the sentiment. Making a few pounds isn’t enough to justify doing this and usually leads to making oversized bets and ultimately blowing the account. I don’t think you need a 3 year plan as such, but you need enough money that you will make a return that feels worthwhile without risking the account on one or two trades.
I think there is no specific amount to start with. As long as you are comfortable. For newbies yes I would suggest starting with a small amount, in case any losses are faced they would be able to handle it .
Success in trading is not measured by money. Its about percentages.
If you make 100% profit per year, you are a star, you are in the elite of the trading world.
If you start the year with £1,000 and you make £1,000 in profit in the year, you are a ten times better trader than the guy who starts with £20,000 and ends the year with £22,000. Even if he used twice as much money, he would still be rubbish compared to you.
There are no particular sums of money which you can devote to trading. You know, these days you can start off with 10$ and I know the brokers which offer such an opportunity. Anyway, you should decide on yourself which sum of money you can allocate without any bothers. It’s necessary!! If you will allocate a huge sum of money, then your trading is for nothing because everything you will do is to try to save up the money and it will lead to one result - losses.
This isn’t a golden rule, but the fundamental one. Allocate as much money as you can throw away. Literally… For example, you know that you can go outside and put 100-200$ into garbage and forget about it. So, this is the sum you should use for trading.
I could not agree more, there is no rush in forex, don’t be in competition with others. Make sure to grow at your own pace and gradually increase your funds, so long your broker allows for these conditions. In my early days with Forexchief, I started with a small capital since they allow an affordable minimum account size that will not blow your account with very good trading conditions.
This is something newbies should consider if possible, start small and grow from there.
I have more than once compared trading to driving.
So, if you are a crazy driver, hurtling along a slippery road in the dark, you are going to crash and burn. Is your behaviour less idiotic because you’re driving a cheap car?
I say any amount that is allowed. Once you’ve got the demo trade down, go try on a real account with real money and see how your trading changes. Really good lesson.
The OP said a wise statement, one must begin with a demo account, only then they shall know the worth of how the money works in the forex market.
As a beginner I recommend people to start with a capital they are comfortable losing. A beginner’s first priority in forex trading should be how to prevent losses. In my opinion, having good savings is very important.
There is no predetermined limit on the minimum amount of capital that must be invested in the market. You are able to get started with an affordable sum of money, and if the business is profitable, you are able to increase the capital later on.
I would recommend that you begin with money that you are comfortable with. Don’t just blindly follow anyone. Because a big amount will result in big losses and vice versa, just trust your instincts.
It is always better to start with a small amount and then grow your account as you gain experience and find new ways to bring in profit. Practising on a demo account will give you the experience and confidence boost you may need before you start live trading.