Is it worth starting with a $100 account?

Beginner Questions
1

Is this possible? lets say i am using 1:10 leverage that is 100x10=$1000
But I should only risk 2% of my account which is $2 in this case which equals to $20 with 10x leverage so now i am risking 20% of my $100 account? should I risk $0.2 which equals $2 with 10x leverage?

Lets say i go for a 70pip(0.60%) TP and 35pip(0.30%) SL with a 10x leverage this would be a 6%TP 3%SL
So 2+6%=$2.12 or 2-3%=$1.94

So with a $100 account risking 2% with 10x leverage I would make $0.12/trade or lose $0.06/trade this also excludes fees

I must’ve missed something here… Or is it like this? :thinking:

14 Likes
2

Yes, sure it; worth with $100 to start forex trading. You should use 1:500 leverage and trade with 0.05 lot. 70 pips/day is diffficult to reach. But, with 0.05 lot you can reach 40 pips to get $2 profit.

6 Likes
3

2% of your account is $2 regardless of the leverage. I don’t think you understand what leverage is.

I think you might need more than a 1:10 leverage account, otherwise all of your money will be used as margin and you have no room for a trade going the wrong way. It doesn’t mean you should use the high leverage, it just gives you more breathing space before a margin call.

I don’t have a clue what all of your maths is about… Have you traded demo?

13 Likes
4

0.05 lots is still too high, 0.01 is more appropriate

16 Likes
5

So I should trade $2 at 0.01 lots with 500 leverage?

1 Like
6

If your broker comes within the ESMA jurisdiction you will not be able to trade with 1:500 leverage as from next month.

3 Likes
7

i agree with Carlos - except that even 0.01 is too high for a $100 account

0.01 lots would be about right, for most people, with a $200-$300 account

personally, i wouldn’t start a live account with less than $200, to trade 1 microlot

7 Likes
8

I see, this is oanda with 100EUR demo account with 100 leverage. Trade value is 1 EUR so 1% of account, 70 pips equals to 0.01 EUR I dont understand

3 Likes
9

Manxx is correct. I don’t think it is even worth worrying about this issue until we see the “Unintended consequences” of that stuff and how the brokers adapt and adjust their “micro accounts” to cope with it. Otherwise you’re just wasting “thought power” on something we know will be irrelevant before you get a chance to practice it ! :slight_smile:

4 Likes
10

yea with $100, i would start with 0.01 lots, the absolute min

5 Likes
11

you’re right about that, $300 - $500 is a good starting amount for a micro account

2 Likes
12

Agree with you; consistently 70 pips are really massive! Even, for the new traders; it’s too hard to make this target routine wise.

1 Like
13

Only pro,s get 1:500 now A pathetic 1:30 for retail
So you may be able to get 10p per pip off your 1 trade ur able to open

2 Likes
14

If you can manage a small account with your strategy and plans then you can do this.

3 Likes
15

Listen friend. Everything is theory until you try it out. My advice is to demo your strategy with $100 to see if it works. Just keep in mind that in demo all trades get executed and in live trading that’s not the case. If you can’t produce a positive return with $10, you won’t produce one with a $1,000. The $200 and $300 minimum advice may be well intended, but it’s useless without a proven, consistently profitable system.

You should get into the habit of demoing with a start balance that is the same as the balance you intent to start your live trading of any new strategy with. Make sure to start with the smallest lot size your broker allows and built up your experience and confidence.

28 Likes
16

that’s what I’m doing now. I started demo trading a $300 account this week and im up by 10 bucks lol i don’t care about how much I earn on the demo, but about the pips I gain. I just want to have an awesome strategy that I can use when I open my LIVE account, and will start off with a bit more at that time as well.

7 Likes
17

Pips gained or lost and the amount gained or lost are directly correlated, so you should care. Strive to master your strategy to reduce losses and increase winnings at your target price. As long as you consistently gain, you’re strategy is good enough. Don’t aim for things like 90 percent winners. It might happen but it hardly does and especially not in the beginning stages. You’ll get better along the way. Keep practicing every day.

8 Likes
18

You can open an Oanda account and trade 100 units = 1 cent per pip… or even 1 unit = 1/100th cent per pip. :smiley: It’s great if you are new and does not have much capital to start with. You can trade a strategy with 1000 pips stops… trading at 100 units you would need to lose 1000 pips to lose $10!!! if your strategy loses 1000 pips i think you need to make a new one hehehehe… Good luck!

2 Likes
19
  1. From a psychological standpoint, it’s better than a demo account. Even a small amount of money makes you want to take your more trades seriously than a demo account. Every penny counts!
  2. If you do slightly better than break even, your account will probably have gained more money in a short time than a money market account over a year.
5 Likes
20

Starting a live account with little investment is a great thing to do. At initial stage chances for the wrong trading are very high. At initial stage you also don’t know well about the market because you don’t have full knowledge and experience about the forex market.

3 Likes