I found that the maximum number of people from the lower-earning country headed to the forex. Deposit 10-20$ and expecting to get 100-200$ in that month! It could be possible due to high leverage. But we know very well that leverage is a double-edged sword and that’s why they lose money.
So, some say 10% some say 20% is enough for a professional trader. But what will happen to them? Who have only 50-100$ as savings and willing to trade in forex. The monthly return will be 10-20$ depending on the balance. Which is very low! They need at least 100-200% . Which is funny to some “Pro Trader”. But they can’t stay longer in that game who make a goal of 100-200% return in a month.
Is Forex not for them? Or, is there another answer?
Any trader who is new to the trading business should concentrate on being able to make anything at all before even thinking of trading professionally for a living.
Once you are making some kind of profit then the next step is to see if you can continue making profits consistently over a period of time and in different market conditions.
A professional trader needs more than just an income. Earnings will fluctuate according to markets as much as one’s own skills and you will need a substantial reserve fund to carry you through the difficult times, as well as excess earnings to build up your reserve fund and accumulate some kind of nest-egg for the later years.
But you do not have to think of trading as becoming a professional or nothing. There is a whole range of activity and satisfaction from just trading to build your capital and drawing out now and again for pleasure items like a holiday or furniture or hobby equipment and so on.
Full-time trading is fraught with dangers and difficulties such as restrictive regulation changes, health problems, loss of interest or inspiration, structural changes in market behaviours, sudden financial problems. family issues, and so on.
A small balance trader needs to be aware of, and satisfied with, the limitations on winnings and seek consistency rather than fortune. But small streams lead to big rivers and, well, who knows, …
I aim to withdraw nothing from my account until Im making my target annual percentage profit every year. At that point I will start to withdraw the annual profit on a monthly basis.
Trading is a serious business that requires a lot of skills and knowledge. Due to high leverage people have unrealistic expectation. For long term business you have to be skilled and need good amount of money to trade. For learning purpose one can do trade with small amount. But for living you need a good amount.
Even 2% return is huge. It’s not the percentage but the consistency which is the most important. Expectation should match with your capital and capabilities.
So, In my view, I think 5$ per day from a 50$ account is possible if he or she uses high leverage and trade with consistency. Am I right or there is a deep hole in front of me to take my small account right away?
I saw some trader trade and save the money for the future. They combined their money 10-20 years for the future savings. But I am talking about the people who have trading knowledge and have the market edge but can’t gain significant amount due to low balance besides they need to spend their gains on their monthly bills.
What is your suggestions for them? Take 50% of the gain and leave 50% gain on the account? Or take the whole amount?
Yes, that’s my point also. I am talking about low account balance because 50$-100$ is a lot to a people of lower earning countries. But It seems like they are come to Forex game and lose their money for unrealistic goal. But on the other hand 50$-100$ is also a good amount to them as a monthly earning.
Isn’t it possible to gain 100%-200% and withdraw them all after the end of the month?
( I am thinking realistically. Because it is more realistic to the people of low earning country. )
If my broker can multiply my order/position 100-500 times ( I am referring to leverage ), why a new trader can’t except 100-500% gain on monthly basis?
Because I see some people who sell their land and 90% of their property to stay in the trading game and lost everything. (It’s like a addiction to them)
Personally, I would not recommend anyone to try trading with capital of only $50 except as an interesting pastime or hobby.
If you are seeking a $5 per day return from a $50 account then you are most likely talking about day trading. It might sound easy on paper but day trading is not easy at all. The moves are erratic and meaningless and only reflect uneven changes in buying and selling. To trade this kind of market requires exceptional discipline and accuracy on entry timing. That is not something easily achieved day in day out consistently.
The problem with such a small balance is not so much where to place a target but where to put a sensible stop. For example, if you trade just one microlot for 10c per pip you need 50 pips to make your target, but that is not easy with day trading. So you are more likely going to try 5 microlots and look for 10 pips to get your $5. But a 10-pip stop is far too close. No one can gauge every trade entry so well that the market does not back up at least 10 pips. So the stop out rate would be fatal. But if you choose a 20-pip stop (which is still too close for comfort) you will lose $10 on each stop out. That means you now have to win three trades at $5 to maintain you target of $5 per day.
The other major problem with an equity of only $50 is that there is no room to drop below that level from early losses and still have enough equity to take the required positions.
I do not believe anyone with only $50 will succeed in building their account by earning a net 10% profit every day.
Most of the potential problems cannot be prevented and can only be overcome or circumnavigated by having sufficient back up funds to compensate. Maybe training for a new career or moving to a different region for work etc.
Even many professional traders look for income from other sources such as training courses, mentoring, or YouTube advertising and so on.
In my opinion it is not a wise decision to try and make trading one’s sole source of income unless one has a large capital reserve to fall back on.
No, my suggestion for anyone who needs trading to let them live is don’t trade. Let an employer take the risks you cannot afford and work for them for a salary - then the only risk you’re taking is the possibility you might need to find a better job with a higher salary.
And this is not a matter of account capital size either - I would say even people with a million dollars account capital should not be trading if they need to take money out of their account to pay their bills.
I don’t think one can really talk about cent accounts and being a professional full-time trader in the same thread, the gap is enormous.
Personally, I think that if such a person with a very low equity really wants to trade then they should start with a demo account and trader it diligently and systematically until they reach a stage of proven consistency. But even that will not guarantee success when going live.
But having achieved a level of proficiency for a significant period of time then they could start with a cent account and gradually build from that. But that is going to be a long climb to reach a reasonable income level without taking excessive risks.
I understand what you are saying about a small level of earnings being an adequate salary in some regions. But regrettably the markets, pip values, and risks are the same for everyone so a low equity account is at a distinct disadvantage right from the start.
This is not actually true. It seems the real level is nearer 75%. This from a couple of ESMA regulated European brokers:
" CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money."
" Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money."
Of course, the percentage could be higher in other brokers which are either non-regulated or registered and regulated in the jurisdiction of “Gonnaripyouoff” etc.
and willing to trade 
in forex. The monthly return will be 10-20$ depending on the balance. Which is very low! They need at least 100-200% 
. Which is funny to some “Pro Trader”. But they can’t stay longer in that game 
who make a goal of 100-200% return in a month.
