Trading is a professional and business. The answer to your question can only be how much do you want to start your business with? How much does it take to develop a professional like becoming a lawyer, a teacher or an engineer? Does it take only $100? my answer is a big no.
Like all professionals, you need to develop your skills first and you require deliberate practice. Go slow and take your time to learn. Trading requires time, energy, money, and perseverance.
The market waits for nobody, and you need to have the right mindset if you are to become a successful trader. Your resources/funds will determine how long you will survive in the field of professionals. But ensure that your starting capital can at least make you motivated to learn from your mistakes and profit from your experience.
The lower the better for the beginner before they can gradually increase the amount in time
Yup this is also what happened to me. People always say don’t lose money if you don’t have to but in my case, I had no interest in it because I had no actual “skin in the game.” It wasn’t until I traded with a small amount did things get real-ER for me.
As little as your broker allows you to open an account with and as much as you can afford to lose.
Frankly, find a legitimate broker that offers micro account and trade with cents only.
I think that the best advise here would be to start with amount which you will be relaxed to lose. Higher from that would put a lot of pressure on you, so there is possibility that you will lose your trading momentum as you will become too stressed
This is right!
I suggest the same, better to start with a lower amount.
There’s no fixed amount for that. Someone who’s already rich can afford to shell out some thousands, while an average worker like me should not invest more than a $1k in the beginning.
If you have just started trading and you want to learn then start with a smaller amount since forex trading involves risk. If your motive is to make a living out of it then start your account with a higher amount and leverage. According to many people, high leverage involves high risk but it will also help you to increase your profits
This is a very interesting topic and I enjoyed reading all the replies. I have started trading on my live account with $30. It’s a very small amount because I am not prepared to take a huge risk as of now. I am planning to invest a larger amount as soon as I understand it better
Hey @Biancajerry36, the problem with trading with such a small amount is you will either end up risking a large % of your account on each trade or if you stick with a maximum % risked per trade then you will most likely not be able to put your stop losses where you should due to the minimum $/pip you can trade.
Personally I would recommend starting a demo account WITH the amount that you believe you will be able to reasonably get to in your live account - Ideally I would aim for at least $1000. Then continue to save up in your live account and practice in your demo. Then once you get to that amount and are comfortable with your demo - go live.
May the pips be with you,
Nathan
Money is not the main thing. The main thing to survive in this market is proper knowledge. Without a proper knowledge you can not make money from this market.
I think you should keep it to a minimum of $50 to $100. This will reduce your risk of losing a big amount and you will be able to practise on a live account without much worry. Micro accounts are the best to start with if you want to learn.
This is a question I’ve thought about a lot. I’ve got a small amount put aside as a trading fund (around £450) that I plan to use when I eventually move from demo (hopefully in the new year). Its enough that I will not be impacted if I lose it but it will also give me some ‘skin in the game’ as I will not be overly keen on frittering it away. Just deciding whether to deposit it in one go or do £150 a time to give myself 3 bullets, so to speak (with scope to drip feed or top up this balance upon successful trading). I believe that will be a sufficient amount to begin with based on 2% risk and the minimum 400 unit lots my broker allows to be opened.
After you have been consistently profitable demo trading, open your live account. Put in just enough money so that you can run the smallest number of simultaneous trades your plan demands - 1 or a very small number. Put in so little that you don’t need to pull some out again to pay your bills.
Now focus on the percentages and the long game. Leave the profits in the account. You will not get rich but you could be financially secure in about 10 years.
This is very good advice, I think. Unfortunately, many people come to trading because they are in need of money; not because they are looking for a new hobby.
Right out the gate, I started trading positions that were too large. I had to get humbled before I started trading 0.01 lots.
Even I agree with you. I feel that many people don’t enjoy trading specially beginners as they struggle initially. They just jump into forex trading before understanding the concept so it is important to enhance your knowledge in order to enjoy it and eventually it will bring you good returns
you can open the account with any amount but remember put only that much amount of money which you can afford to loose.
Enough to safely cover your risk level. 500-1k min with 0.01 lots
I think this is a reasonable start. Waiting to save up $100k is insane for many people.