What is a good starting investment for FX trading?
There is no easy answer to this - over 40 years ago i started a business with minimal capital and over those years it grew.
Would it have grown more rapidly with a larger capital start? - maybe, then maybe the discipline of limited funds helped survival in difficult times.
Trading is like any business - lots of work is actually more necessary than lots of capital.
Never risk more than you can afford to loose.
There is no set answer. Depends on how much money you got
Here are some topics that may help you out with your question.
If you’re thinking of putting real money into forex trading, you must already be consistently profitable with a stable strategy using a demo account.
If you aren’t yet demo trading, get at least one demo account right away.
Don’t gamble with money you can’t afford to loose
Are demo accounts free and do they consist of purely hypothetical scenarios?
Demo accounts are free (in my case with FBS).
About the ‘hypothetical’ scenario part, the FX prices are real though, but the demo dollars are fake (like monopoly money --just for simulation / play).
Well I just tried FBS last week, I hope my answers are correct. Correct me if I’m wrong thou.
Yes, demo accounts are free. So you can have more than one and try out different brokers, different strategies. The prices ought to be identical to the real prices seen in a real money account from the same broker.
That’s awesome! Did you learn about FX trading through FBS or BabyPips?
This is not easy to answer. Some traders tend to start off with $100 to test the waters, and some started with $1000 to go all the way in. I think it falls on you whether you are ready to trade with $100 or $1000.
The one thing I should let you know that you should be prepared before starting on trading.
I personally think $100 is too small and $300 is the minimum, but that’s just based on my experience. I feel like I’d have blown my account in weeks with $100.
As of now, as for the exact sources, I can’t say for certain… As I think nowadays you can learn from many sources, as there are many freely available sources online. I have learned from many2 unmentionable sources, here there youtube mostly too I think.
I am very much beginner in forex myself. I have been wanting to try trading forex for some time now, and that COVID has given me the time, and the recent AUD dip (fall) has provided the push to jump in.
As for your original question: “Never risk more than you can afford to loose” is a very very very good advice BTW. It is better if you are comfortable &/ confident with the $20 in your account, that you would be a defensive $200 account holder imo.
There are few stories of peoples starting small (hundreds or even tens of dollars) and multiplied their capital after some time, there are also plenty plenty plenty of stories of people starting big and losing out all their money…
SO be Wise…
You start with what you can afford to lose
My two “cents” (pun kinda intended)…
Start with what you can afford to lose, as others have replied. Should be able to keep living without the money in your trading account.
Start with enough to accommodate your risk management (surprised no one else here mentioned this yet?). I have enough in my account, and keep my positions small enough, to only risk about 1% of the account in a trade.
There is no good starting amount. Trading is about learning the basics of how it works. If you do not have a trading plan, system, goals that are achievable and a strategy that is profitable you will lose your money. It took me one year of and - $600 in losses to finally realize I was trading wrong. Once I stopped doing all of the things that were not working, and started getting into demo trading with a plan, and strategy I started winning more trades. Now, I am growing my live account with a deposit of $55. I now have more control over my emotions, mindset, and I know what kind of trader I am, and how I want to trade. I am seeing better results, and am happy with them. So, you cannot think about how much money will it take to make more money, but think instead of how will I trade to make the money i want to? Once you can master a solid trading plan and system you will be profitable with the deposit that you put in. Always start at the basics of understanding how to read what the market is doing so you can know how to place your trades. Good luck on your trading journey.
Best answer to the question I’ve seen so far. Agreed.