I’m still learning the ropes before I sit down and start demo trading, and but I don’t want to do that too long, I want to go into the live market.
However, FXCM is telling me there is a minimum deposit bonus of $50. How I am i supposed to trade with $50?
I have about $70 to trade with, but if micro lots are about $1000, how am I supposed to trade with this little money ?
Or am I missing something here ?
Apologies, I’m still learning.
If you have an account of $70. 1% risk per trade is 70 cents. Micro lots are worth 10 cents per pip. That would give you a stop loss of 7 pips.
It would depend on the leverage they give you but yes its possible to trade with that stop loss.
The likelihood is you’ll blow your account if you dont have a good understanding of risk management. My advice, for what it’s worth, is to work and save money. In the meantime work on your strategy.
I believe FXCM will let you trade with 1:400 leverage on FX, which means $70 will allow you to trade with $28,000 (70 x 400 = $28,000 account value).
Using high leverage is dangerous. Please take the time to understand about leverage and account margins, as well as risk management before opening a live account. Your best move would be to learn the Forex basics, then open a practice account to try out what you’ve learned until you feel confident enough that you won’t lose your hard earned cash.
New traders must come to understand quickly that high leverage is not a right, it is like a short-term loan. And a losing strategy never became a winner simply because someone threw more money at it.
Surely you have done some basic training(such as the school here) before depositing real money?
Actually, throwing money at a strategy can make it a winner. Analyze the COT report silly
COT is not something I have ever used. But its an interesting idea - could you put up a bit more detail?
Try different level of leverage on demo account so you will know what leverage appropriate to your fund. Also try other brokers, there are a few differences sometimes.
Is this what we’re talking about?
If so, I can understand the value of analyzing futures, but that doesn’t make throwing good money after bad with an underdeveloped strategy advisable. Maybe I’m missing something.
Yes, I agree. I’m not sure its a serious suggestion…
Thank you everyone! Appreciate the advice.