Is 50$ amount enough to begin with in forex? Where can this take me to?
yes it’s enough if you trade a small enough lot size. I started with 50 with Oanda, they let you trade as small as 1 unit of base currency. currently I’m trading half a micro lot which is 500 units of base currency. But I use free metatrader demo account with ibfx for charting purposes.
You can do it!
Thanks for your motivating words!
Mike (TalonD) answered your first question.
The answer to your second question depends on you.
Can you learn how to trade successfully? That means: Can you learn how to (1) select good trades more often than bad ones,
and (2) manage your trades, from entry to exit, with good money management techniques?
If you can do those two things, then you can trade ANY SIZE account successfully — which means, you can grow that account steadily and consistently from tiny, to not-so-tiny, to large, to whatever size you have the motivation to go for.
Are you [B]motivated, and focused, and disciplined[/B] enough to become a successful trader?
Clint
yes you can start and learn with $50, I am. I opened an account with $50 at FXCM, it’s a micro account and you trade lots of 1000. In three weeks i pushed it up to $70, but have dropped back to $55 this week as i tried new ideas. good luck to you.
70$ in three weeks!That’s great.
But the “School” recommends to start with atleast $1000.That’s a bit too much for me right now.
$50 is enough to trade with if your broker allows tiny lot size. I think you will find if $50 is an amount you feel comfortable risking on a learning account you wont follow good MM. You will over trade and over leverage, you will develop bad habits. You should put enough money in your account so your MM rules allow you to risk an amount you don’t want to lose. If you follow your rules the rest of your account wont be at risk.
That has been my experience with small live accounts. If you have the discipline to follow your own rules on a small account than you are off to a better start than me. I am doing much better with a larger account, not really much larger than what you are talking about starting.
Exactly what Mattw2009 said, its a hell of a lot of work for a small reward the temptation to develop bad habits is strong. Why do you think brokers allow such small accounts?
I am not saying don’t open a $50 dollar account the things you will learn about how you trade with real money is worth 50.
So 10% risk could result in 5 times the profit per trade, ie; $100? and 5 times the profit = a year end profit of +10,000. Yes?
I agree wholeheartedly with what most have said. Starting with $50 is a good way to get your feet wet and at least get the feel for how live trading is different than demo trading. That difference may just be psychological; at other times the broker you’re with may be the reason for a harder transition (e.g. slippage, spreads variance etc).
The benefit to that small amount is the knowledge gained of how a live market is trading and FEELING it. Once you are profitable, theres nothing to say you can’t deposit a few hundred more, therefore allowing you to risk a higher dollar amount while still keeping even a 5% risk per trade.
Being consistent is the key. You will have losing streaks but a trader who makes erratic trades could have a blown account in no time.
I am of the same mind as you. If the amount you are trading is so small, the price of a soda lets say, does that really motivate you? Speaking for myself, starting with a larger amount will probably be the way I go. Having said that, until I get used to the feel of being live, I will probably trade in very small lot sizes and gradually increase until I reach my comfort level.