i am asking if anyone would like to know if it is possbile to be sucessfull off of only 500$. if so im willing to open a demo and bring it down to 500$ and trade it to see if it can make it to 1000$ without a magrin call. if you would like to know please reply so i know to get started 
.
Hi thepipkid.
I’m new on forex and trading only on Demo account (still trying to come up with a strategy I like), and I’m thinking of opening a live account in three or four months.
I don’t have a large start capital but I think I’ll start with something from 500$-1000$, so I’ll be more than interested what are the results gonna be.
The short and direct answer is NO!
I can also guarantee that YOU WILL DEFINATLEY turn your $500.00 USD into $1 000.00 USD on a demo account and I can also guarantee that YOU WILL DEFINATELY lose your $500.00 on a live account because you don’t have enough margin i.e. Mini Forex Account - $500.00 USD capital - minimum cost of a lot $50.00 USD - cost of a single trade therefore equals 10% of your captial - too high! In my honest opinion - the minimum capital required to trade $50.00 USD lots is $5 000.00 USD - then each lot or trade equals 1% - plenty of margin and even if you don’t obey the 1% rule and go wild and do get margin called the open positions will be closed one at a time until you have spare margin and you probably wont lose the whole lot one time.
Like I have said in a previous thread - take your $500.00 USD open a live account and think of the $500.00 USD as tuition fees. Only use the demo to become familiar with the concept and the trading platform (software). Do not be fooled into thinking that because you have turned a huge profit demo trading this will automatically happen with a live account. Trust me on this one.
And yes - I’m waiting for the arrows :o !!!
Regards,
Dale.
[B]everybody, hold your fire! [/B]
dpaterso i like your attitude. the 500$ spent learning on a live account is much more valueble than 500$ spent at a collage,
at leasts thats what i think :D.
thank you for you honsty and opinion. we are more alike then i thought.
Thanks ‘thepipkid’ - but if I were you I’d also get the old shield out!!!
Thanks again.
Regards,
Dale.
Thank you ntrader
no arrows man no arrows. with this info how does your numbers come together?
account ballance 500.00$ USD
margrin used for 2 positions 2.09$
spread used for 2 positions .80$
one lot controls 1,000$
leaverage 400:1
FX Sol
i so like that diamond shape
my dad said it might be like that
ntrader ive heard my dad tell many people to start with as much money as possible without putting yourself in money hurts.
OK - well - let’s not lose sight of the fact that the thread starters’ question was ‘Can you be successful…’.
Now in my mind - with those types of amounts - you then have to redefine the word ‘successful’ (I’m sure that is not how it it spelled but anyway).
I mean - successful to me would be making $1 000.00 and hour. Follow me?
If successful means being able to stay in the game for years on end without losing your capital but make $100.00 per year - then yes - those figures would work nicely!
And before anybody points you to one of my previous messages where I landed myself in the s**t - let me save you the trouble. My tuition fees are around $4 000.00 now - expensive lessons. But let me say this - it took me nearly a month and a half to lose $4 000.00 but it has taken me a week to make $1 200.00 - and this is telling me that my tuition fees were well spent!
Regards,
Dale.
Yes, I’ve also heard that a lot from other people. It’s just very hard for a student to start trading with $5000 or more. But thanks for advice anyway.
Sorry - I don’t mean to be come across as being harsh in my statements. If the truth be told I probably would not have taken my own advice in the beginning anyway.
Like I said - my tuition fees are heavy so I can at least say that I have already put my money where my mouth is.
Anyway - just a suggestion for you if you are a student and obviously don’t have $5 000.00 to throw around:
Could you not get say 5 or 10 of your mates interested in this and you could pool your money together, open a live account with a reasonable margin (that would allow the odd mistake while still experimenting and learning) and then, hopefully, you would all get a grasp of this magical thing called Forex and hopefully I’ll see you on Bloomberg one day!!!
Put it this way - I think that would be great - I mean - having a sort of club where each party has a vested interest in the thing and you could sit down and discuss strategy and opinions and ideas (hopefully one of your friends is an Economic Major). Sure you would have to split the profits up but would that be such a bad thing? I mean if you grew the account to something substantial you could very well get to a point very soon where each of the 5 or 10 members could have a go at buying a lot each as long as it did not exceed the 1% rule. That way you could gauge who of you has the talent and who does not and then those with the talent could trade for the others.
What do you think?
Regards,
Dale.
dpaterso,
You sound like a fellow member of the “School of Hard Nocks”
I spent some time there myself.
Yup - I’ve got a Doctorate from that school!
Dale.
LOL,
I forgot about the Doctorate.
I keep telling the kids I have a Masters.
not that school
he always talks about that school.
its easier to remember how to spell cc ss ll (successfull)
In order to be better insulated from a margin call…it would seem to make sense to use a lesser percentage of money and a higher margin ratio. Correct?
Now that is something that I did not factor in to my rantings and ravings - a higher margin ratio or leverage.
To the best of my knowledge though are you not still going to be in the same position overall - I mean - a higher leverage = higher risk - not sure.
Anyone?
Regards,
Dale.
I’ll back you on this point. Demo account is good for getting a feel for trading but in no way it is an indicator that you can be successful. I read in another thread that someone was going to demo for a year before trading for real. To me that is a waste of MANY months because once he/she goes ‘live’ it is a whole different game. To me it makes more sense to dive in with $500 you can afford to lose, trade very small amounts so you don’t lose it too quickly. The point is to learn and test your system with real money NOT to make big profits. If you still have half or most of your $500 after 1,2 or 3 months then I think your doing ok. If you have made some money after a few months then I think it is a no brainer to deposit more money and increase your trade amounts.
Hi, Dale.
Let me ask you something, are you psychic? Because you read my mind. I’m actually trying to introduce some of my friends to Forex, most of whom are very pessimistic about all this idea others have no idea what Forex means at all. In general I think this is a great idea to have a few people to manage one account. At first if you lose some money you don’t lose all YOUR money, but you lose only a part. Secondly if several people manage one account after a period of time you will see who is doing better than others and who shouldn’t do this at all.
I don’t know, it’s just my personal opinion. But anyway Thanks for your advice.
Regards, Vic.