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Good Investment amount

Discussion in 'Beginners Bootcamp' started by Bharathi Dasan T, May 11, 2011.

  1. Bharathi Dasan T

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    Hi Guys,
    I have been reading how to trade and using demo accounts for few months now. I would like to Invest real money now and put my training to the test. So can anyone please tell me what would be the appropriate amount I need to invest?. I would like to profit $30 per week. I don't have alot of money to invest either, So please be nominal.

    Bharathi T :)
     
  2. Pharaoh

    Pharaoh Colonel

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    How has your demo trading been?

    For live trading, just start by assuming you'll probably get 2 less pips per trade than you did on demo due to slippage and requotes (could be more than 2 pips, could be less, but we need to have a basis for a calculation).

    What you'll need to do is figure out roughly what percent per week you've successfully made in demo (for at least several months), then adjust that percentage based on all trades ending 2 pips worse than the really did.

    Now, figure out how much money you would need to make your target income of $30 per week if you really kept making that same percentage.

    For example, if your adjusted profitability percentage was 1% per week, then you would need to start with $3000.

    Of course, I'd recommend starting with less. You need to test the broker out to see if that live account really compares with the demo. If it's a lot worse, your carefully planned and profitable demo trading system could end up losing you money on a live account.
     
  3. Bharathi Dasan T

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    Thanks Pharaoh

    Thanks for the quick response again, I will take this advice and decide the investment and post the results too. I am using 200:1 leverage and 0.1 Std lot. Please let me know if you have any comments on this, for real account.
     
  4. Pharaoh

    Pharaoh Colonel

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    When you start off, act like you've only got 5:1 leverage. You need to control your risk per trade even more tightly when starting, since you don't yet know how the broker's platform will react when the market gets volatile.

    This limits your losses if it turns out that your broker decides to try to give you "death by slippage".
     
  5. Bharathi Dasan T

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    Thanks again Pharaoh

    Thanks for the, I will keep that in mind.
     
  6. Romeo

    Romeo Sergeant

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    Be very careful, which broker you will choose to trade with.
    If you choose a cheap bucket shop, you will end up not even thinking about profits, but you will be begging them to give you your initial capital back!
     
  7. Anita V

    Anita V Private

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    Everything I've read so far makes the brokers out to be criminals, why on earth would anyone be willing to hand their money over if they're so untrustworthy. I for one am becoming very wary about trading live the more I read. Then again, I'm not profitable on a demo account at this point, so I guess I still have a lot to learn.
     
  8. dkami

    dkami Sergeant

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    Hi and welcome to FPA for starters don't deposit more than you can afford to loss but having said that you need money to make money so i would say 2k trading a .02 lot size this should be adequate for you to reach your goal of $30.00 a week with relatively low risk, O and i do think a 0.1 lot size for a small account is a bit large remember a stress free trader is a happy trader leverage can be your friend but also can end up as your worst enemy;)

    Good luck with your trading
     

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