I want to start trading live. I’m not yet consistent in my profits but trading on a demo account is making me lose interest. How much should I start with that is substantial enough but won’t hurt so bad in case I lose it all?
You could try live micro accounts offered by some regulated brokers. Do not expect to get rich quick, or to lose loads, but IMO it is your best starter.
ok, so basically, you want to start driving a car, you know something how to do it, but you don’t want to spend time to get more knowledge and experience. Ask yourself, is trading for me? Regards Greg
You know yourself better. You are the one who knows how deep your pockets are. So I would say, going live is not a bad idea, but as for how much you should start with, its all up to the depth of your pocket.
The answer is to only trade what your happy to lose, so really only you hold the answer to this question.
If it was me, I wouldn’t be looking to jump into live trading knowing that I’ll probably gonna lose my money. However, the choose is yours. I would wait until I’m constantly profitable in a demo account.
This is what I’m currently doing, and to make it a little more exciting I’m keeping a log of my trades on this forum (link below). By doing this I’m documenting my progress whilst also sharing with the fellow community which in turn is making it more real, as I don’t want to fail in front of everyone. This means I’m taking the time to follow my strategy rather than being reckless behind closed doors. Also, by sharing, the other community members are able to help with advice on what I am or aren’t doing right.
I recently learnt something I can share.
One general rule of thumb is to risk no more than 1-2% of your account balance on each trade. So if you have $10,000 to start with risking 1-2% per trade would mean risking $100-$200 per trade. But it’s up to you to decide how much you’re comfortable risking
Yes. This is risk management at its finest. If you only risk 1-2% of your account for each trade you will be able to perform a ton more trades before you blow your account. If you were to risk say 5-10% of you account per trade you would have a lot less trades before going bust.
In poker we call this a chip and a chair. The longer you have at least one chip you can still sit in the game. In trading, the longer you hold onto your account balance the longer you get to trade, and hopefully make a profit.
only you can answer this - especially the “won’t hurt” part!
as a rule of thumb, don’t trade 1 microlot with less than $250 in the account - doesn’t apply to everyone, depending on exactly what you do, but it’s a good rule of thumb for very many people, anyway
Alright, listen up. I get it. You want to start live trading because demo accounts are getting boring, and you’re ready for the real deal. But let me tell you, you need to be careful. It’s not just about having fun and making some quick cash. You need to have a solid plan and risk management strategy in place.
Now, when it comes to the amount to start with, you don’t want to be reckless and throw in all your savings. You need to start with an amount that won’t hurt you too much if things go south. It’s like gambling; you don’t want to bet all your chips on one hand. It’s recommended to risk no more than 2% of your account balance on a single trade.
So, if you’re comfortable losing $1000, then start with a $5000 account balance. This gives you some room to make mistakes and learn without blowing up your account. Trading is a long-term game, my friend, and consistency is key. You need to start small, gain experience, and gradually increase your balance as you become more successful.
Just remember, trading is not a get-rich-quick scheme. It takes time, effort, and discipline. But with the right mindset and approach, you can achieve success over time.
some brokers offers micro accounts for as low as $1
Find out what the broker minimum deposit amount is and then risk what you’re willing to lose
Bro, don’t go for live trading as long as you are not good at demo trading. Losing in live trading will hurt you much more. Don’t worry about your interest because you can regain your interest once you start trading live.
Thanks for sharing that tip Amy! Risk management is crucial in trading, and the 1-2% rule you mentioned is a great guideline to follow.
I used to overtrade a lot, and it cost me a bunch of money. But, instead of learning from it, I kept doing it again and again on other trades.
You may know what a midfielder is and understand the basics of a good system for a football team, such as the 4-4-2 formation. But is that enough to start a coaching career? Unfortunately, no.
To become a successful coach, you should invest time in learning from a variety of sources and gaining experience coaching youth teams (demo account) before taking on a larger, more challenging team (real trading).
If you rush into coaching without proper preparation, you risk being fired and damaging both your emotions and finances. Take the time to learn and develop your skills, and best of luck on your journey.
I apologize for using a football analogy, but as a passionate fan, it was the best comparison I could think of!
Best of luck
Initially you should invest small capital into micro account and definitely you have to avoid over-trading. Try to find opportunities and trade in small proportion so you can survive in the market with profit.
I’m not expecting to get rich quick. I just want to have a feel of things which I’m not getting with a demo account. Thanks @steve369.
Great example. Right now it’s like I keep on reading a book to no end. I just want to at least practice in the parking lot for example. I don’t want to go to the freeway or anything like that. I just want a little experience of how it is to actually drive a car than just keep on reading how to.
Thanks for the advice @Pauley1. That was my initial plan too but I’m starting to lose interest and thinking of ways to make it interesting again.
Thanks @flamingoproxy. If you were in my shoes, how much would you start with?