I’m not sure what’s meant by the person who originally said it. But one way of understanding it would be this.
Let’s say you have an account that has grown from $50 and you can now safely open 0.02 lots. When it goes in some profit you close 0.01 (half) and leave the other half to keep running. Assuming it’s in good profit your SL should also be in profit.
Just wanted to say that you seem to be devoted to a valued life. You value your parents and that says alot about your character… Just take your time learning and the money that you put in should be a good start… Have you ever heard of trading binary, its a short time frame execution. I started with binary learning and if you study the indicators and the way they can work for you its a good start… Just thought I would do a mention. I personally now am a beginner with MT4 forex and have found it to be a little more involved with leveraging, margins , stop stop loss and take profit along with market execution etc… Binary is basically a put or a call on a set of currencies. Well Good luck to you, I hope the best
A newbie opening a live account with a live account witb $50 is not advisable. You will most likely blow that account the sooner one thinks. You have to understand the market thorough and thorough and also the important times of the day to trade. Trade microlots and you need to keep a large margin to keep your trade going if conditions not favourable in the time. Do not over trade.
I agree that getting started with any amount of money that you aren’t comfortable losing is not advisable. However, $50 is better to lose than $5,000. Could you imagine blowing that account? No matter what amount you start with, you’ll still have losing trades.
One more advice: try to distract yourself away from money. A good indicator that you fail to do that is being regret about missed opportunity or thinking too much or too long about loss/ lost trade. If it happens to you, then know you are still not ready to trade and earn big money.
Of course I can’t say 100%, but I think it’s too small capital to make a profit, you can try to make trades this way, but you won’t be able to make a stable income, even if we are talking about $10.
at least you receiving plenty of advice on here, firstly there is no pre conceived ideas of what your profits are going to be daily, weekly ect , this is a positive too because there will not just be disappointments but also pleasant outcomes "you cant make things happen in your favour all the time "
yes, initially you can trade with small investment as you may not wish to lose money at first. Expectation should not be much in-front of small investment as its low risk involved.
There is much more that depends on what restrictions on minimum trades your broker gives. If you can use $1-2, you can try…
Oh, well, there’s just no chance… Think about the amount of at least a few hundred, or you’re at great risk of being left with nothing!
Thanks for this. It’s quite handyi.
Yes that’s how to reply. Lol
It is always a good for a newbie to start trading with low amount and after some period of trading and gainning some experience you can increase your investment and can make more profit. One more thing it will always better for a new trader to start trading with demo account and trade with it for atleast 3 months to get good experience.
Trading with low capital you are forced to use high leverage because you are unwilling to modify some psychologically comfortable profit targets (“50 USD a day to make off living”). Don’t fall into the trap of your dreams. Leverage kills trading fast. Try to set as low leverage as possible. It’s better to sacrifice with comfortable profit targets, rather than taking excessive risks and dream.
Trading with small balance and its best to start of trading with small if your a beginner or just entering into live trade its good to start off with small balance so the risk is minimum and the lower the balance the risk is lower.
Low interest rates and taxes on capital make it simply impossible to make any money with your savings account. Luckily, it’s also possible to trade using small amounts.
You can start Forex trading with an amount which is as little as $50. But there is a general rule of thumb in Forex to not to risk more than 2% of your capital. So, with a $50 account, you can only risk $1 at a time. One cannot really expect a reasonable profit with that. The account will be as good as demo account.
If you want to be able to go for higher lot sizes and reasonable profit, you need to go for large capital like $1000 to $2000 atleast. Still don’t expect profit right away.
One can surely open an account with small balance but treat it like a demo account and use it as an opportunity to learn. At the same time, be very cautious and follow a good risk management. Trade with the lot size of 0.01 as you cannot go any lower than that. You can increase your capital slowly.
What he said.
I hope you’re not discouraged by what people are saying. Believe it or not, they’re saying it for your benefit. Medicine never tastes good.
If you want to build your self-esteem and confidence through trading, I say keep going. Even after you’ve lost a bunch of trades, try to learn from your mistakes, and don’t quit!
slow and steady can make good profit from a humble amount, but rookie numbers like 50-40 usd its just disrespect tothe market, atleast manage $300 to begin with. i recommend this amount to start and with proper management, it only grows and never looses the capital.
Trading with low capital you are forced to use high leverage to achieve some moderate profit targets like (50 USD a day). But unfortunately it is fraught with higher risk of losing everything. That’s why one of the goals on risk-management side should be the focus on reducing leverage.