I am new in trading. I have started very recently.
I have opened an account, but there are things I dont understand yet.
I have for example opened and closed a sell position from 1.39484 down to 1.38190 at some point.
I have done only about 10 GBP. My account has 1000 GBP and my risk is 3%.
Leverage is 1:500. Is it normal to have such gains? What should I do to gain more please, without changing my risk management? I am sorry I started to trade after having spent a while to learn…but I feel I have missed a lot…
Thank you guys
So basically I will have to keep going, and the more my account will grow the more I will make…I thought leverage would help me but it is like I have no leverage. Why sorry?
You’re going completely the wrong way to becoming successful. Unless you’re lucky, with your present set up, you’ll blow your account - that’s inevitable.
FX is never a get rich quick vehicle unless you’re already a millionaire, mainly because you will suffer losses. That’s normal. and if you get one bad trade, you’ll decimate your account at your leverage and risk level.
This set up will delay the inevitable:
Request your broker to reduce your leverage to 100:1 (or less)
Trade micro lots between 0.04 - 0.08.
Risk ony 1% per trade. Set yourself a daily risk exposure, say 5% and stick to it like glue. DO NOT OVERTRADE.
With a $1,000 capital - and with specialist skills learnt - it will still take you years to make enough per month to pay your bills.
That’s the reality. And perhaps that’s what you need to comprehend why 90% of newbies fail.
Thanks for your help and for your answer.
Indeed, I thought GBP 1000 would be sufficient to start, had no idea that sum would be irrelevant to start with as brokers set a minimum of sometime $200 to be able to open an account
I will reduce my leverage for sure, thanks and will set my risk management to 1% from 3% initially
I have set a trading plan, and have sticked to it religiously
So, how do newbies who start with less than GBP 1000?
How can i go in the right direction step by step please?
Thanks a million
Exactly, step by step. This is a game of percentages - if your strategy is a loser, it doesn’t matter whether you start with £1000 or £1million, you will still lose money, maybe eventually all of it.
thanks for your message.
I understood earlier that starting from GBP 1000, even with a very good set up in terms of risk management etc would take a lifetime to be able to pay my bills. So, how do beginners start trading with this kind of deposit or even lower deposit into the journey of a FX trader please? I am lost. I ve been studying the subject for so long, it is killing my dream a little bit further, posts after post. Can you highlight me on that please? All I want is to understand if I can transform my dream into reality. Yes, failure would be unavoidable, I completely realise that, and i am ready for it. So far, after my 5th trade, I haven’t lost any pound so far. I am not saying i am good, as I am a beginner, but I try to do my best being realistic, hence why messages, feedbacks from the babypips community are so important to me.
Cordially
If you can make 6% profit per month on your account you will double your account in 1 year. If you can do this for 10 years your account will be £1 million. But a million is not necessary: after 6 years your annual income would be £32,000 - enough to live on surely? In the meantime, you only have to keep yourself alive with subsistence income from employment.
The problem is a consistent winning strategy that doubles the account every year, but which never has any really big losing years.
Making low gains is still okay. There are many traders who struggle to make any at all. Forex is a risky business and if you think that you will be able to take advantage of it without doing much hard work, you may repent later. It’s better to learn and understand things before it’s too late.
Yes. The less risk I take in trading, the more secure my account will be. If I take more risks in the hope of extra greed, the amount of loss will be higher.