Please what’s the best minimum capital to trade Fx
500$ and 0.01 lot
I agree that should keep your low risk in the game, while others blow their accounts I’ve found that two $1,000 accounts with a lot size of 0.08 competing with one another keeps me focused.
The issue with $500 is there is no breathing space for the S/L - and apart from that, at such low capital you’ll probably reach retirement age before realising your financial freedom.
Money makes money is the mantra. Imagine trading a $100,000 account where the 1% risk is $1,000. In monetary terms, if you only make a grand on a monthly basis, it goes a long way to supplement your job’s income.
I think people can trade $500 accounts to start off. But there are strong limitations. Blowing a $500 account doesn’t hurt as much as blowing $2,000. That’s the price of the game. Either way, as a beginner greed will most likely get you. Trading a $60 0.01 lot on D1 and waiting 4 days for a $10 profit could be discouraging.
But that’s when you gotta focus on percent. Because that’s almost 17% which is quite nice. As a new investor, however, you’re looking at just $10.
I don’t know…
Just start your trading journey and see what happens. Maybe you can prove everyone wrong, maybe you’ll prove everyone right. Even if you start with $500, or less, you’ll find out soon if it’s a good idea for you or not. We all gotta start somewhere.
That made me laugh. My first live week, exactly a Hulk moment that caught me trading EUR/GBP on a ‘never ending’ downtrend in the London session. In five minutes of madness, I entered and exited five consecutive trades on the hourly chart, one of which was a counter trend, when I hit losses. You wouldn’t believe it.
Taught me a lesson, instead of making the $10 which I had closed, I came out with a $30 loss altogether. Thank heavens it was not a major event.
The irony is that the more you lose, the more humble you’ll become. The more humble, the more respect you’ll have for the market.
As a person living check to check, losing $100 may not humble you. But losing $5,000 will totally break your arrogance. If you’re determined to trade, you’ll ask yourself what went wrong and how can I fix it.
That’s when your trading will start to improve.
Simplae answer is what you can afford to lose but if you want an arbitrary number then I’d say $500-$1000 is still considered a small bank.
I assume that the question is asked by a beginner, that’s why I gave such a response. Of course, with $ 500 starting capital, getting a good return is rather impossible, but if someone is just starting to trade forex, opening an account with a capital of 10,000 or more is doomed to failure. A $ 500 account and proven long-term strategy is a good method to test the psyche and discipline of a new trader. If, with low capital, the novice trader is unable to discipline or exhausts himself mentally while trading, the large account will be even more of a problem.
A capital of $500 is sufficient to start with. You can start with less, but that restricts you in many ways with a lower leverage.
I agree with you completely
Simply start with something that you can bear to lose. Not that you will lose for sure, but still don’t be over optimistic. Prior to making a live trade and funding, do test your strategy on a demo account. Analyze the margin requirement and leverage impact and then make a decision.
$500 to $10,000 is good. The higher the balance, the more you’ll be able to hold trades for maximum profit.
There is no minimum capital to trade forex. You can trade with as much money as you want. It’s just that you will have to check whether your broker allows you to trade with the money that you want.
generally we traders always think capital is a big deal in trading but if you have not enough most powerful analyzing trade knowledge and experience then any kinds of capital can be useless.
I tell all the people I teach to never try to trade on less than a $500 account with micro lots.