I’ve been trading for almost two years now in the Crypto space and for the past few months I’ve been trading with a ~$10k account, always cashing out profits on a weekly basis.
I’ve never traded forex but I’m skilled in technical analysis and I would like to give Forex a shot problem is I only have around $1k I can use to trade in the Forex space.
Is it even worth it? Will I even see a weekly return, I plan to use leverage to make the $1k significant but will that even be enough?
This is not a helpful reply. But I am sort of in the same boat as you. I just opened an account with $1000. I am planning on using it for a couple of months and if I see I am consistently making profit then I will increase my deposit to take bigger positions. Answering your question if it is worthwhile: I think it depends on you. I think a $1k account is better if your approach is that you are going to test FX waters. But profits probably won’t really be worthwhile. I think you should test with $1k and see if you are profitable. And if you see that you are making profits consistently then scale up. You can use a demo account for testing as well, but I think a person’s psychology, especially a newbie’s psychology, doesn’t allow you to do the same trading you would do in a real account.
More experienced people will be able to provide with better answers.
I’ve been using a demo account to mess around and it’s easy making money on a demo account with a standard strategy. I’m still trying to figure out Leverage. Is it possible to earn ~$10 per pip? w/ $1000 is probably the better question to ask.
Definitely a better question, and easier to answer, too.
The short answer: no.
Here’s how to look at it: with a $1,000 account and 1% position-sizing (strongly recommended!!) you want to risk no more than $10 per trade. So even if you have only a 20-pip stop-loss (and that’s small), you’d need 20 pips to represent $10. Therefore $0.50 per pip. Nowhere near $10 per pip.
For $10 per pip, on the same basis, you’d need a $20,000 account.
And if you routinely used a 40-pip stop-loss, you’d need $40,000.
You might not always use the same stop-loss size. You might relate it to the volatility and vary it to some extent (also recommended) so those are only examples, not “gospel”. But I advise you not to try more than 1% position-sizing for your first year, and not to trade a funded account at all until you’ve had plenty of practice on a demo account.
EUR/USD, for example, is $10 per pip per full lot (and therefore $1 per pip per minilot and $0.10 per pip per microlot), regardless of the size of leverage you’re using.
(I think possibly you’re confusing “leverage” and “position-sizing”? Postion-sizing refers to the proportion of your account that you’ll lose if your trade’s unsuccessful and the price hits your stop-loss, and I’m suggesting that that should never be more than 1% of your account on any individual trade, so that with a $1,000 account, you can never lose more than $10 on any individual trade.)
Since you are traded with Crypto currencies already, you can take the risk of 1K. But before going with live trading accounts, do spend good time in demos to get an acquaintances with the real forex trading.
Isn’t 2% risk a more popular number used by most people? Obviously the lesser, the better. In BabyPip’s course as well, 2% is mentioned. But I see you preference is 1%.
I advise you to work on demo accounts first. You should be able to work with demo accounts first. Thousand dollars are too much to start your very first trading. Trading with a less amount and see how it works out. Just remember, loss is easy than success in trading.
Hi. I trade with a $1K account and I think if you are new to this it’s enough to start with. After time you can increase your account with more fund.
First I think it’s better to try yourself out with a demo account and after you successful there for 3 months you can think about opening a Live account.
About the income I don’t really understand your question. Your position can go positive during the day, but can also be a losing trade for several days. Your income will also depend on your trading style and strategy.
I hope i was helpful, let me know if your want to more abut Forex
I always advise new traders to take a start on the Forex market with a micro account as it will help you to know about your strengths and weaknesses. It will also help you to work on staying patient in different situations. $1000 account is far more worthy if you have a good technique and wise approach. Thanks!
I have been trading for more than two years and anyone can start with a $1,000 and learn how to trade profitable. If you learn to analyze the market by finding the primary direction on a DAILY chart and waiting patiently for a Low Price to Buy or High Price to Sell. Then you can go to 60 Min or 15 Min timeframe and find an entry with “Small Risk”.
I have used this approach to find trades with 50 Pips Risk and 150 Pips Reward. Then you can use 20 cents per pip [$10.00 Risk] to make $30.00.
When you do this two or three times per week successfully for six months you can then consider increasing your trading capital to $5,000 or more. Now you can use the same approach and trade $1.00 per Pip.
The most beautiful thing about Forex Trading is that when you learn to trade successfully with $1.00 per Pips then you can use the same knowledge to trade $10.00 per Pip.
I’m looking at starting up with £1000, trading GBP/USD.
I see 2% risk being thrown a lot but will stick to 1%.
Was looking at £1 per pip, 10 pip stop loss but I may just go with £0.50 per pip, 20 pip stop loss just to play it safe.
There are brokers that allow micro lots too, so $4 dollar commission per lot doesn’t seem like a big deal at all, in EU was have max leverage of 50:1 too which shouldn’t be a problem either.
Looking at 4 hour chart for trends and then finding an entry point in 15 min chart, so on that note it seems like I should be using 20 pip stop losses instead of 10 unless there’s really good momentum going and I can afford to take 10 pip stop loss.
Is it even worth opening an $X account?
Absolutely. You’re able to gain experience and prove you’re able to be profitable. Just go with the best lot for your account, so 1000 for micro as many others have already said.
Learning forex and trading forex successfully is liken growing. babies crawl, stand, walk and then, run. Go on demo for three months if you are successful then go live with a $1k account. If you are still successful, the scale up your account to any five figures or more. Don.t risk more than 1% (of at most 2%) of you tradind account on any trade