Minimum investment

bullandbear

Recruit
Messages
4
I would like to hear your opinions of what will be optimal or desirable amount to start trading forex ?
I know that is recommended to don't invest more than you can afford to lose .. I think that anything less than 1.000 $ is not really serious capital to survive and gain something ?
There is just so much psychological pressure when capital is tight even when trading with micro lots ..
 
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downtrend

Sergeant
Messages
872
$1000 is a big amount in my country. If I have a $1000 account I can easily make enough cash from it following my trading method to help myself a lot working as part timer trader. But off course different countries have different living standards so this amount can be very less in any other region of the world.
 

Pharaoh

Colonel
Messages
19,783
It really depends on the individual. If losing $500 doesn't phase you, then you need an account with at least a few thousand to be able to "feel the pain" of loss. If losing $5 is a big worry, a $25 trading nanolots is more than enough.
 

iMusingKiMi

Sergeant
Messages
896
I think USD 1,000 is already a minimum requirement to start trading. Some member here say it is a lot in their country, and same as in my country. But think about it, if you treat Forex Trading as business, you can't find any business as low as USD 1,000. So it is not a lot when you take Forex as a business view.
 

iMusingKiMi

Sergeant
Messages
896
$1000 is a big amount in my country. If I have a $1000 account I can easily make enough cash from it following my trading method to help myself a lot working as part timer trader. But off course different countries have different living standards so this amount can be very less in any other region of the world.
I would rather advise you to stop trade now and get more experience about trading if you think USD 1,000 is a big account in trading and you can bag a lot of money. If putting couple hundreds of bucks to trade, you will have a lot of pressure even before a trade. I been through that kind of days, thinking that if I have USD 1,000 account will be doing better but actually it wasn't. It just mean you haven't ready for trading. Stop trading 1st, learn more, save money and bag yourself with more knowledge, prepare yourself and trade again when you have gotten ready everything. That's what I did previously. No offence, just my 2 cents view.
 

DavidC1

Private, 1st Class
Messages
69
What about a month's salary of wherever you are at now? Like the engagement ring theory ;)
 

RahmanSL

Major
Messages
2,536
The BIGGEST mistake and mindset of wannabe-trader is in thinking & believing that you can make fabulous amount of money in a very short time by trading the forex market. I TOO made that mistake and have, time and again, paid very dearly from that mindset.

All wannabe-trader should, right from the very beginning of their forex journey, develop a mindset to look at the forex market as another potential instrument/additional income for their INVESTMENT.

After reading & carrying out research on what the forex market is all about, practice on a Demo account (preset to actual amount of money you plan/intend to start a live account) to get the hang on how the trading platform works....which should take around 3-6 months and should be sufficient time for you to develop a trading system/style that best suit you (don't try to trade like other traders because what works for them might not work for you because you might not understand their logic & trading system).....then, if you consistently make profits through these months, start a live trading account with a well REGULATED broker.........and stay way, way away from exotic & Eastern bloc nation brokers.
Trade your own trading system and....very importantly.....add more funds into your trading account, when you have more spare cash, to build up the trading account over time. Treat your trading account like a fixed bank deposit account, BUT the interest generated by even the small daily/weekly/monthly profits WILL BE very much more than what any bank in the world will/can pay you.

If your starting capital is small (i.e below usd200) use high leverage (1:300-500) but trade in mini lots of 0.01 size and open maximum two(2) orders at any one time. An important item is to make sure your broker does not change the leverage over the weekend/public holiday (some brokers do that for their own protection against massive market spikes in the forex market).

And, importantly, never over-trade (open too many trade positions), practice good money management, be patient, never be impulsive, don't get greedy, have confidence in your OWN trading system/style.....but don't get over-confident and start thinking you simply cannot lost because you can and will if you start getting careless in making trades.
Lastly, try to keep informed on up-to-date on daily financial news especially on the currency pair/commodities/index/etc you are trading......and limit yourself to trading only one or two currency pair at any one time.
 
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