I plan on starting with 3-4K, would love to just hear how some of the more seasoned traders would manage an account with this starting capital.
Personally I like 3% risk per trade. I’m targeting 100% growth annually (or 5% per month). I find risking 3% per trade allows me to mostly meet my growth goals while keeping my drawdown within acceptable limits. Of course, the win rate of your system comes into play there.
A 4k starting account is nothing to scoff at. Double it every year and you’ll be able to start living pretty comfortably in 5 years.
I’ve been demoing for several months - I’ve turned a nice “profit” and taken enough trades to see my edge play out. I’m planning on going live at the end of the month and 4k was actually going to be my initial deposit too. I’m going to deposit in increments. I’ll start with 1k in May, and if I’ve turned a profit after 2 months (July) I’ll deposit another 1k. If I’m still profitable after another 2 months (September) I’ll deposit the last 2k.
Best to start off slow, perhaps 1% risk per trade or even less, until you get used to those wins and losses being real. Ramp it up once (or if) you build a track record of profitability. Have a drawdown kill switch in place so you know when to halt trading (it might be 20%, so with 1% risk, you’d need 20 losing trades before you stop).
Oooo! That deposit method is quite brilliant! Thanks for sharing that idea (consider it mine now muwhaha) It not only keeps your $$ safe (you don’t blow your entire 4k in a brain fart/greed/fear what have you moment) and it gives you incentive to continue on the right path. I like it! I am still reading the school on here, so I haven’t even gotten to learning systems yet. Mostly been reading the forums and doing the school while I finish up my last semester. Once college is over I plan on learning FX full steam ahead. I’ll have a lot of time on my hands then woot.
if your new -
start with $500 bucks or [U]less[/U] - and see how it goes for a month.
Do a little math for yourself too - here is mine.
with $500 - and at the recommended 3% risk - - lets say divided into a 15 pip stop - that is oh umm about $1 per pip value
1-loss
2-loss
3-loss
8-losses in a row is ? $120 Plus spreads of just guessing 2pips per trade so another $16 gone
OR
4000k account
lets just say a $5,000 accnt to make the math easier - everything is 10x worse eh!
now 3% on a 15 pip sl is $150 risk PER TRADE?
8-losses in a row is ? so a $1200 loss plus spreads of $160 bucks
It is up to you what to do - - but as a new trader (if that is what you are) I actually recommend $100 starting and Use the tiniest lot size available – why lose 10x more than you have too?
Oh didn’t I mention anything about winning? hmmm wonder why?
[QUOTE=“Kevin LaCoste;620240”]Best to start off slow, perhaps 1% risk per trade or even less, until you get used to those wins and losses being real. Ramp it up once (or if) you build a track record of profitability. Have a drawdown kill switch in place so you know when to halt trading (it might be 20%, so with 1% risk, you’d need 20 losing trades before you stop).[/QUOTE]
Agreed.
Keep your leverage beneath 10:1 across the board and focus on the process not the results.
In my book, if you can pull down 1-5% a month, for 6+ months straight with drawdown less than 5-10% on a live account…you’re onto something.
Set reasonable goals and you’ll survive.