How much is the minimum amount to get started in ForEx with the SOLE PURPOSE of gaining EXPERIENCE.
I DON’T plan on gaining profit just yet. If I have to make a profit, I guess the goal is to have 1-2% profit at maximum. Losses are tolerable.
I don’t want to consider a demo account for the long-term (relatively speaking) because I heard that one could develop bad habits and overconfidence that can lead to huge losses if carried over to a live account. I will only utilize it to get used to the actual platform. But, other than that, I’ll go live immediately.
I am not debating whether to use Demo or Live. I will go live. I’m asking if this capital is enough.
Initially, I was planning to use $250. Is this enough? Or am I not able to get enough trades out of it? Do you think I need more?
What’s your opinion?
If your aim is just to gain experience then the amount of money it will cost is 0$.
There is something called demo trading where you can trade the real market with fake money. There are many brokers that allow you to demo trade.
I started with 300€ in Oanda, this allows me to make trades with 4 micro lots risking around 4% with 30 pips Stop Loss.
It’s the double of the risk I have been working with in the demo account (2%) and it doesn´t allow me to do things exactly as I want (i can only take partial profits with a granularity of 25% instead of the 5% I like) but its good enough and I cant afford 1.500€ for the moment.
Regarding what you herd of bad habits in demo account. That is not true. If you try to do your best and focus on the results you will do exactly in the live and demo account. I would even say it’s better a demo account because you will focus only in the process and the % results, not the money.
Thanks for the contribution. Initially, I only needed 5 trades at a time at minimum. Now that you’ve told me I can go for at least 9 trades, I’m very pleased. You’ve really helped me. Thanks.
But, what do you mean by “Java”? Is it the programming software you’re referring to? What is it?
Micro accounts are always better than demo accounts (providing you have some demo experience) as it gives you the ‘real’ trading experience. No one is attached to the money in their demo account but even with $100 in a micro account, when you start to lose or win, it’s a totally different feeling.
There are many brokers out there who can offer lower than $250. E.g. with my broker FXPRIMUS you can start as low as $100.
But to gain experience, I would recommend you to start with a practice account first. Make sure you are able to make profit CONSISTENTLY before you move to a live account.
there is a huge difference between demo and live trading… i made very resonable profit in demos… and then go for live… but lost my 60% account in first day… the reason is GREED/FEAR… you can’t train your self with money management and emotions when you are not live… but i recomend you to go for demo and research work… but if you go live be read for loses believe me if your a good trader forex will give you back all you have lost with a great experence
Just train yourself much better, and treat Forex the better way. In this way you could earn much. Be satisfied with what you earn. This can prevent you from being greedy.
Exactly. I know I can’t teach myself the extremely important values of emotion in ForEx trading using Demo accounts. That’s why I’ll start as soon as I’m used to the platform itself. Thanks for the contribution.
“Be satisfied with what you’re earning”. I find that a really good quote - especially in starting in the ForEx as a newbie. I’ll keep that in mind. Thanks for the contribution.
Do the demo,and while it may differ from live account, the experience should get you started on it. And on the live account, would suggest you start with micro or nano account, nothing larger until you think you are ready to invest more.
Hope this is the first you that you are going to do live trading. $250 is a good amount specially for a newbie. Trade with micro lots and maintain your risk level at 1 - 3 %. Hopefully you can gain lot of experience and sustain in the market. Other thing is try to find a good broker. Forex peace army will help you to find a good one. Good luck on trading.
If you treat your demo as if it was real money, you won’t have that problem. What I’m saying is, don’t take a trade just to take a trade on your demo. You should already have a system you’re planning to trade if you want to go live right?
Take that system and trade the demo just like you would live. Justify each trade you enter according to the rules of your trading plan knowing in the back of your mind, if you don’t stick to the plan when you go live you will lose real money.
You’re much better off making your mistakes for free on a demo account; just don’t develop bad habits by treating the money as not “real”.
Now, some people will say demo is worthless because it doesn’t have the same emotional toll on you as trading live, BUT, say I was to open a live micro account, risking $2.00 per trade, that might as well be the same as a demo account emotionally to me because working my 9-5, that’s not very much money. In order to truly feel the emotional toll of going live, a loss would have to hurt. Then you can get that horrible feeling of a 2-5% drawdown and try and stop yourself from revenge trading.
Bottom line, demo like it was real, and then go live when your ready to go live. Don’t waste $250 messing around in a live account. Just my 2 cents.
Yup! If you are not serious enough, you can kiss that $250 goodbye. Stick with the demo, learn all about the market and demo like its the real deal. And after a while and a few pips in the green, make the decision to move to live account, pref micro.
