What do you recommend as the minimum amount for starting out?
Are you demo trading or live trading. It would help if you told us that. But if you’re demo trading, it makes sense to use a balance similar to what you’d use when you go live.
1 Like
Providing you have developed a profitable strategy and process which you would stick to for every trade, and are an experienced trader, I agree $5k minimum gives you breathing space to control your risk exposure in a live market environment.
Anything less is a gamble, which you could succeed for a while if you get lucky. As it is, I use a $2.5k account as a long term hobbiest, but I’d would be unlikely to succeed in making a living which pays for my bills and lifestyle.
Hope that helps.
3 Likes
[quote=“blueskies18, post:1, topic:929381, full:true”]
What do you recommend as the minimum amount for starting out?
[/quote
If you are confident enough then surely you can start with a good amount; but don’t invest your full capital in your early stage of trading; since there is nothing like100% in Forex!
1 Like
it depends on your financial state with trading ability , if you have good knowledge including exact money management then you are able to bring good amount of profit by any short balance , if not any kind of large amount can be useless.
message is simple but effective , no way to deny ,
100 usd. If you are profitable, you should be able to grow 100 usd. Then add more money into your account, if that is going well.
Yes you will not earn big suddenly, but you will build stability…which is more important.
I started with $10. Obviously that didn’t go very far, but I was anxious and didn’t have a lot of money at the time so it helped me feel better. It was also nice to find a broker that would allow such low deposits (I went through CedarFX but there are others that don’t make you deposit the $100 or more that others do). I remember depositing $100 shortly after and I felt a little more confident, then I slowly added to my account over time. My husband would give me money every week to invest, sometimes it was a small amount and other weeks we’d deposit a bit more, just depending.
1 Like
At $2.5k, how many times have you withdrawn in the last year? Asking because I’m thinking whether I should increase my account size :))
If you’re on demo, and literally just getting started, I don’t really think that amount matters. Your risk management per trade is more important.
I haven’t withdrawn any as I had successful green months, and I add to it most months.
If you add (say) $350 each month, even incorporating losses, you could increase your account by c.$3,500 over 12months. That gives you leeway to increase lot size while retaining the same risk percentage exposure.
1% of $2,500 is $25, and 1% of $5,000 is $50. That’s why to make decent profits to pay for your outgoings, compounding a small account size is crucial.
Read the Richest Man in Babylon.
It totally depends on how much you can afford to lose really? Everybody has different circumstances. Some people can only afford to lose $10, whereas others $10k!
Exactly, in fact this is the most important of the market. Our emotions can put us in a confused state when we lack proper risk management.