Firstly, excuse my English, Let me explain to you my situation, so you can understand the big picture, I’m 20 years old college student from Tunisia, I have no part-time job and no way to generate a passive income, I’m enrolling in the course of school of pipsology, but the problem is that I’m planning to start trading with just $50 ($75 max) … Which is not advisable according to the instructor, I understand why but as I mentioned before the reason, I’m not greedy nor gambling for high profits, just want to daily profits of 10 to 20 bucks to cover my needs and stop asking parents because it’s embarrassing, so I want your advices and guidelines fellas, thanx
Basically you wan’t to make 20% return per day it entails extremely high risk. If your initial trading capital is 50 USD, reasonable profit target is 1-2 bucks per day max, trading with small lot size like 0.01-0.02
That’s okey for a start, I can manage with it, any tips (strategies, risk management, methodology) ?
Stop thinking about your gains and losses in terms of $ and start thinking in percentages. If you have $50 and want to make $10 a day and need to withdraw $10 a day to cover your costs you will always have $50.
The idea of trading a small account is to simply let it grow. Control your risk so that you never risk more than a certain percentage. But as your account grows the $ that make up that percentage will naturally increase, and so will your gains. If you can only make 6% profit per month, you will have doubled your money in a year.
How exactly should I start with that balance ? WHAT I have found in internet is just for medium and relatively big accounts
Start trading on demo for sometime first of all. Its okay to start with $50-$60 dollars, you just need to find a broker whose deposit requirements are low.
Look at the process of the trade 1st and the money looks after its self, if you look for big gains all the time you will blow the account
It sounds as though you are trying to live on the proceeds from a $50 trading account as a new trader. I hope that I am misreading you, but if not, then I’m sorry to say that that is not possible. You can’t possibly trade $50 and live off the proceeds. Sorry to be blunt. If that were possible, millions of people would be doing it.
Not totally, that’s not the case, I want to make tiny profits just to feel productive and boost my self esteem
The guidelines are simple, the only problem is to follow them, accepting gradual progress.
For intraday scalping:
- Set daily profit target (1% of equity).
- Set daily loss limit (preferably to be less than the profit target).
- Set number of trades per day (arbitrary)
- If you hit daily stop loss limit you stop trading. Same if you hit daily take profit.
- One, two, five, ten trades tell nothing about performance of your trading strategy. Start to look for something new/adjust trading system using results of 150-200 trades.
- Start from simple support/resistance lines. They still have a lot of potential and tend to play out quite well on the distance of 150-200 trades assuming strict risk control.
- It’s my personal observation, but let me mention it: Our mind tends to make decisions which are mentally comfortable and avoid decisions which cause tensions inside us. If you fear to lose you tend to lag behind market price: waiting for confirmations too long and starting to buy when the price has already risen enough and sell when the price has dropped. Winning trades are often a result of mentally tough decisions (buy when it looks like that everybody sells and market is in heavy downtrend, “it’s obvious” that it will go lower, etc.)
Can I suggest that you to start off with demo trading before actually trying out on real account? And start with less amount is a good idea but do not expect too much or you will blow the account.
Great, but I’d counsel you not to wrap up your self-esteem with your trading results. I’d steer clear of daily profit targets, for instance, as the market is the market. Some days it will be more helpful than others, so your trades will go better on some days than on others. If you blow your $50 then it doesn’t mean that you’re destined to be a bad trader. It just means that you were learning, or that the market wanted to bit back a bit. At that low level of investment it’s hard not to take what feel like significant losses. So don’t tie your trading performance to you self-image. Lots of us have losing trades from time to time, particularly when we were just starting out!
Hiya, you will need to try and slowly build your balance, which could take some time. Unfortunately forex is not a way to get rich quickly and requires lots of discipline. Good luck!!
Unless you are trading with 0.1 lot size, there is nothing you can achieve with that capital. You also consider scalping since you don’t have enough to hold off a trade.
True. I started off trading .01. Now I’m at .05. I lost so much money before, trading a standard lot. It’s better to start with the micro even if you have plenty of capital, especially for us newbies.
- Demo trade for a while during and after completing the pipsology course
- Get a broker that allows you to open a micro account (1:1000 leverage). This way, you don’t have to risk a large % of your account per open trade
- After proving to yourself that your strategy works, and you understand the market to a certain level (this is what demo trading is for), open a live micro account
- Trade only 0.01 lots and don’t have more than 3 or 4 trades open at any one time
- Trade on lower TFs so your account can survive the drawdowns
- Trade like this until you reach about $200, then increase lot size to 0.02 and so on.
- If you manage to get your account to $100 this way, trust me, you can get it to $200 and more
- DEMO TRADING IS IMPORTANT
- THIS IS NOT FINANCIAL ADVICE, THIS IS JUST WHAT I DID. MOST BEGINNER TRADERS ARE
LIKELY TO BLOW THEIR FIRST ACCOUNT
…like i did last friday on my very first live account trading using M5 tf and without setting SL. My $100 account was over in less than 30 minutes. I have learnt alot since.
Kindly repeat the process again and again. I just want to confirm something.
I don’t think posting 2 weeks of data is proof of anything whatsoever. You’ve managed to make a very good return when the markets are moving huge amounts every day. You don’t even need a good entry point most days, the market goes like a steam train in one direction.
When you’ve been doing that sort of percentage every month for a year, get back to us and you can tell me it can be done. But so far, you’re down about $8,000, so telling somebody they can live off $40, when so far you’ve had 2 lucky weeks in the fastest moving market for a decade is disingenuous.