“So how much capital do you need? Let’s be honest here, if you’re consistent and you practice proper money management techniques, then you can probably start off with $50k to $100k in trading capital.”
Then it goes on to talk about saving up till you’re ready. It may take me a while to come up with 50k!!!
Hi Everyone (and Happy Wednesday by the way)
Okay, so I’m back in school and am on Risk Management - at the top of the page is what I cut and pasted from b/pips school.
All the way through the various posts here, I keep reading that one should start with a small/modest/tiny amount after demo trading, till they know for sure that their system works.
What then does this exerpt mean above - makes no sense to me - am I missing something??
I’m the first to admit I’m ‘blonde’ and do have very blonde moments (lots in fact), but I’m not blind! The above is what I just read and totally conflicts with all the (seemingly very sensible) advice given here…
Someone please shed some light when you have a moment… :51:
Well at the end of the day it really comes down to risk management. If your risk management is flawless, then you literally can start with any amount you please. The reason why some people suggest starting off small is because there can’t be many people in existence who can practice this perfect risk management right from the get-go. It takes a couple of hard earned lessons before you can handle the emotional side of trading, regardless of how amazingly accurate your system is - This begs the question - why not make those mistakes and learn the appropriate lessons on a small account first, instead of losing your house
This is where Oanda Java is great, because you can Trade with as little as 1 unit, even tho you have many more available… Where as MT4, your limited, to a differant degree, as 0.01 is the smallest you can trade, and you would need more then $20 for MT4. I have traded Oanda MT4, and $20 wouldnt cut it…
Cheers Guys, and I appreciate the advice and info here - it’s what I thought - you can start with a lower amount.
I’d be happy to go in with a good few dollars if I ‘knew’ what I was doing - hence the demo aspect first for a wee while (long run) and then start up small - I’m sure I mentioned earlier, I’m pretty cautious when it comes to money
Anyway, thank you again and good to know I don’t have to produce 50k !!!
Your very Welcome, Just dont drain the brain, take your time, keep notes, and make notes on index cards of things of great importance, then just leaf thru them daily, like before you start your trading, or learning…
Just a tip, baby steps, learn it like a 2nd grader, make comprehension of it, then move on…
It´s recommended to start with a small account. and always having a good risk management. Risking 2% it will be difficult to get bankruptcy. the problem is when you can´t put up with a trade that is loosing money. you wil try the price not to take the stop loss, you will close an winning position too soon, or you will try to recover from a loose with double risking.
It will probably happen when we trade a big account, risking 2%, that can be 500$, But if it happens with a small account, first of al we will have to manage our emotions. The biggest problem with big accounts is that we become too emotional with them.
I dont care what anyone says, the end result you want, is to be correct as often as possible. Sure, we are going to lose here and there, BUT, the object is to be correct, and profit from it.
You can finish the season 12-4, and still win the superbowl;)
My suggestion is to start with at least $1K and make your expectations low, like an ROI of 10-20% in a year. In this way, you won’t be wasting your time for a year learning and trading. Starting really small like $100 or less will set-up an expectation of higher return, which force you to trade large position that will blow your account in 1 hour.
If you blow 1K, go back to the drawing board and see what went wrong. Most likely, your emotions is the culprit (impatience, un-disciplined, etc). When you start to trade with lower capital, you might be thinking that “Oh, its only $20 or $100”, but you’ll keep topping up and before you knew it, all are gone.
$1K is a trade off between losing too much and wasting your time. There’s a lot you can do for $1K, so you’ll go in the market in a defensive mode and try to protect your capital.
If you happen to grow this in three months, then you can add more funds as you see fit.
Thanks guys for all your input here - I appreciate everyone’s views - different though they may be
For clarification, I for one, will ‘not’ be starting with mega bucks - I will start with a teeny tiny sensible amount till I am certain I know what I am doing and that I have a system in place that works - and of course all the other m/management etc that goes with it…
Am now in the middle of Margin - it seems hellish complicated :34: I’ve gone back to it twice now this afternoon and it’s still giving me utter brain damage.
Now I know all of the more experienced folk here will know Margin inside out upside down but I wonder, are any other Newbies out there confused by it - I’m reading it here in BP school and seriously my head hurts!!! I get some of it, probably a fair chunk but not ‘all’ of it.
I tend to read things several times if they confuse me, I’ve been (and still am) taking notes, especially on the bits that confuse me but I confess that Margin, for today, has gotten the better of me…
Hey it’s great if you can afford starting with $50k to $100k, but it is definitely not required for you to do so. Start with 1% or less of that amount and prove to yourself that you can do well with it.
I’ll check both of those videos out tomorrow - I’m sure the visual will help.
Thanks my friend and be lucky with your Pips! :53: (don’t laugh - I’ve discovered ‘smilies’ thanks to Clint, so now I’m trying them all out - except I’ve got absolutely no idea what they all mean - I’m just going by the expression lol)…
