I’m still very new to all this stuff (still in the learning phase, going through Undergrad in babypips school) and I’ve become interested in naked trading. I’ve done a little bit of reading / watching youtube videos from an Australian naked trader (don’t know if I can post his name) and I’m planning on getting a book about it as well. I’ve seen that a couple people around here use this approach, like FXAlTareeq, and I was wondering if any of you could point me in the direction of some free naked trading resources. Is this a viable trading method?
The other question I had was about initial capital. I plan to create my first live Forex account in mid January with an initial investment of $1000. I’ll be practicing with a demo account first, but I know that to get real experience I need to try it with my own money. I only plan to trade micro lots until I see consistently profitable trades. My main question is this: Is $1000 enough to really get started in trading Forex? I fully intend to transition into full time Forex trading as my career, but I worry that starting at $1000 will never get me there.
Any input on these subjects would help me a lot. Thanks!
Great question Mswithers. The proper amount to start is the amount you’re okay with losing if everything goes wrong AND the amount in which you can practice proper risk management. If your % risk per trade is very low and your usual stops are wide, obviously you’ll either need a larger account and/or a broker that has no minimum position size. Of course, those numbers are different for everyone. But whatever your risk tolerance is, remember to take is slow as you get used to the psychological effects of live risk management, and remember that trading is a wealth building business, not a get rich quick scheme. Take it slow to learn the nuances and stay consistent with your efforts, and you’ll be off to a good start. Hope this helps!
Thanks Pipcrawler! I will probably be following the “2% per trade” idea in terms of risk management. I don’t plan on taking any of my profits out of my account except to pay taxes, so hopefully that will allow me to grow my account at a reasonable rate. I just look forward to the day when I can trade normal lot sizes!
Naked Trading is the basis of Forex. Not sure about free resources, but there is a great book with the same name by Alex Nekritin and Walter Peters.
Thanks Forex Verified! I haven’t heard of Alex Nekritin, but Walter Peters is the youtube personality that I watch, and whose book I will probably be getting. Now I have another big name to look into.