Hi,
I was asking myself this question:“How is it possible to make profit with low deposits?”
I can’t understand people can make profit if they i.e. trade with a small amount as $10
Maybe i don’t understand,but can you explain me?
Thanks 
Richard, I think alot of people don’t make it in this business because they are undercapitalised. People in this site recommend as much as 50k to start. I think you can get by with less than that. I would think a bare minimum is $1000ish.
More important than the capital believe it or not is your trader psychology. After that is your technique.
I couldn’t imagine to have profits if you invest an amount as little as $50
This can be the reason why many people don’t stay long in the forex world.
I hear people telling they make profits of an average of 10% a week.
With only $50 you will have a profit of $5 a week,not much for all the hours you have to invest in the forex game.
Correct me if i’m wrong
Correct me if i’m wrong
You’re wrong!
You’re forgetting the magic of compounding. Using your example of starting with $50 and gaining 10% per week it is true that the first week you’ll make $5, but if you compound your earnings the next week you’ll be making $5.50, then $6.05, etc.
After 105 weeks your account will be over 1 millions dollars! That’s just a bit over 2 years.
Thanks a lot,you’re right about that
I also disagree about the minimum account size for starting live trading. I started with $250 and traded .1 lots for $.10/pip. I got in on a bad (for the market) week and ended up blowing that amount. A loss of $250 didn’t bother me too much, certainly less than if it had been $1000. I started over with just $100 this time and made some changes to my strategies and goals. I now trade as small as .05 lots and shoot for 10%/day. So far, I’ve hit that goal (on average) every day. After 6 trading days my $100 is now $175. I do not believe 10%/day is an unreasonable goal. Sure, it may not happen every day. One of my days I made $50, one I only made $2. I’m not spending hours at the computer either. For the most part I place my trades at the opening of a new daily candle and have everything closed within an hour. I’ve had to modify my preferred trading style (long term based on daily charts, greater draw down but greater profit) for a small balance (still basing trades on daily charts, but entering based on 1M and 5M to try to minimize draw down, close all trades at goal) but it’s working. $10/day may not seem like much, but the compounding example is very true. Even if I fall a little short and only double my account every month rather than every 2 weeks, I can have an account of $10000 inside of 6 months.
Just keep learning and practicing and find what works for you. DO NOT be afraid to start small and make small profits at first. One of the best sayings I’ve heard in regards to this is, [I]“I’d rather get rich slowly than go broke quickly.”[/I]
Thanks a lot for your info
I really like this : “I’d rather get rich slowly than go broke quickly.”
Hello brk1969,
You have reminded me my previous days when i started trading with this market. The same thing happened with me as you have written. But the difference is i had started my account with $100. After lossing money in trading i came to know that trading with strategy with this market would give me profits. I started trading in 2004. But in between i stopped trading due to some problems. Now once again i am making my mind to enter this market. In between i use to only study the market and read market news and give analysis and tips to my friends.
Happy trading.
Now i am wondering about another thing.
I was telling you about 10% from i.e. $50 , this means $5.
But if you trade pairs with just $50 ,i suppose a profit of $5 (10%) is quite a lot.
Am i right?
Maybe you can show me an example?
Thanks in advance 
Thank you for this. I have been concerned-having lost quite a bit & being left with $50+ that I should quit.
This has encouraged me.
Sarahmadeira
BRAVO!
Absolutely…
If you start with $1 you may as well buy yourself a lottery ticket, you may have more statistical chances of making money…
Think also, that the amount of TIME you would have to invest in trading $1 to turn it SAFELY into, say $100
(which would be incredible journey), would be hugely disproportionate to gains, potentially…
In the end, would you open a shop with $1? Indeed, you would not, because you COULD not! The fact that
a broker allowed you to open an account with $1 does not mean that you can make it work… You would be
gambling, basically…
So think again, and maybe save up in order to have enough money to give your trading a winning chance…
Yes, it can be done… but as the previous example has shown, there is no proof of anything in Forex because we are not talking bonds, indices, etc… unless you can identify a trend from early on, and ride it all the way to its maturity, you would probably do a lot of intra-day trading, which is riskier (with a smaller account) and more stressful/time-consuming… So time would be a huge investment…
We had a similar thread in Forextown recently:
http://forums.babypips.com/forextown/75201-need-advice-small-balance-trading.html
Please read… I also put in a link to yet another similar thread within it…
A lot of people dream of leveraged trading as their way to riches, and no matter how we act mature
and responsible, we all still dream of those millions… We may coat our emotions publicly with clever
technical language and percentages (We Love Percentages) but in the end we are all, as newbies,
still lured in by the promise of ‘Infinite Prosperity’ (no reference to Sangster, nudge nudge).
If you were trading other products, like stocks, you may find brokers only allowing it with 1:1
(i.e. zero) leverage, so you would need 10,000 to open a 10,000 position, and so on… Unfortunately,
the Forex retail market lures undercapitalised people (like myself, I hold my hand up among them)
into trading markets, when, really, it would be better (in my opinion, please shoot me now) if they
did not allow this… They allow it because it makes them a lot of money… that is why Forex/retail
trading has BOOMED in the last few years… Like in casinos, where ‘the house always wins’, so in Forex
a lot of dreamers put money into the broker’s pockets in the hope of making a million, but, in reality,
they will soon go bust and have given the broker more free money to make THEIR, not the trader’s,
first (or second) million…
It is an easy game for those who have the connections and can open up a brokerage… and us, the
little people, will just keep on feeding the gravy train…
So, think again: why trade Forex? Are you chasing millions? If not, why start so small? Would you open
a business (a shop, a doctor’s studio, a veterinary practice, a sport training centre) with $1? Or $100?
Of course not… you would be laughed at for even suggesting it… So if you want SERIOUS returns, then
you should invest SERIOUS money… I, myself, am saving up for this, but am trading an undercapitalised
account, so I do not expect to make it big… I am just keeping my skills up and, when the time is right,
I will invest appropriately into this…
But for now, I am not dreaming of millions any more… I am just content to learn trading as a business
set of skills and let others bust their accounts in the gold rush
Ah, whoever said this was easy!!
This is a very god math. Can you please explain to us how we can do that. I am so whiling to make a 1 million of dollars for two years.
Trade micro lots (0.01) and work your way back up, penny by penny. It can be done
I agree, it is possible, but would be a very long road to travel, and you would be very likely to get frustrated because it would seem you are not making any headway at all with such small amounts. But, by basic math, if you can grow your account by average of 10% (in a positive account balance direction) every month, then sooner or later you will be at the millions of dollars range just by how it works. That is presuming also that you started at a young enough age to make it worth that effort. That amount, currently at least, would be more than you would get from a standard savings account here in the U.S., at least in the part of the country where I am.
PipMeHappy has hit the nail on the head. Trading a small account is purely to hone your skills & ability & prove to yourself that you can actually trade successfully.
If you want to make a proper living out of forex trading, you need the capital to back such a venture. If you had said capital, you wouldn’t immediately start trading with 50k & no knowledge. Therefore you learn how to trade with a smaller account, prove that you can be consistently profitable & then inject further funds.
Also you wouldn’t take a job working 37hrs a week for £150 a month so as mentioned by other guys, the time that you put in to trading ideally needs to be remunerated at a satisfactory level.
Well said!!!
minimum balance like $1 or $5 is not for profits this amount in micro accounts will trained traders for real trading . They will having habit to use less risk in trading and manage amount within their limits. Trader’s need some good amount of investment if they want good profits.
There are, and always will be, some people who imagine that if they use a very high strike-rate method with huge leverage and constant compounding, they’ll be able to “get rich (relatively) quick”. The key difference between them and the people buying a lottery ticket for £1 is that in the case of lottery tickets, it has a measurable, definable chance of working, and there really [I]are[/I] some huge winners.
That said, there [I]are[/I] some significant differences between demo-trading and live, small-account trading, and I certainly wouldn’t criticise anyone opening an Oanda account (for example) with $500 to take advantage of their infinitely flexible position-sizing, just to test something out with “real money”, and have done that myself, in the past.
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