Minimum investment

[downtrend]

My day job gives me $260 per month(if my local pay is converted to dollars). So from trading even if I get 100 - 150$ per month, that is a very huge additional side income for me. And this (100-150$) is even possible to made on a 400$ account. (I can do this)

 

[iMusingKiMi]

My day job gives me $260 per month(if my local pay is converted to dollars). So from trading even if I get 100 - 150$ per month, that is a very huge additional side income for me. And this (100-150$) is even possible to made on a 400$ account. (I can do this)

Firstly, what are your profession? What you good at? Then, I will advise you to quit your job immediately. USD 260 per month, you can easily find this income on internet. Use your internet connection wisely.

 

[OlafYom]

Does a minimum investment depend on a leverage you use? What leverage can you recommend? It seems that a high leverage can bring you more money, but risks are higher too.

 

[mageral]

To continue with the question, I've noticed that freshforex does not have a min deposit at all. It is perfect although I understand that trading with less than 200$ is rather problematic.

Spam Cat is hungry after cleaning up all your spam for FreshForex. Spam Cat wll now eat you.

 

[RahmanSL]

Does a minimum investment depend on a leverage you use? What leverage can you recommend? It seems that a high leverage can bring you more money, but risks are higher too.

For small investment....e.g USD200....I would suggest you go with high leverage....e.g EXNESS on 1:2000....that would boost your trading by 2,000 times...i.e USD400,000...
Do not over trade....i.e entering too many trades at any one time....stick to making one or two 0.10 lot size trades.....which, on 1:2000 leverage on popular EUR/USD require USD5.51 Margin, and each Pip value: USD1.00.......or on 1.0 lot size, Margin required is USD55.07 and each Pip value is USD10.00.....go to EXNESS site and click on "Tools" and then "Trader's Calculator/Currency Converter" for more details.
I would strongly recommend to practice on a Demo account with initial capital set with the money....i.e USD200....you intend to invest. That way you can try out all the various levels of trades you can make safely on your real live account.

VERY IMPORTANT: Try to close ALL open trades by Friday of each week because EXNESS automatically change the high leverage down to 1:200 over weekends & public holidays.

Also, leverage will automatically be reduce as your account grow to certain size....e.g USD0 to USD2,999: 1:2000, USD3,000 to USD9,999: 1:1000, etc..

 

[iMusingKiMi]

Does a minimum investment depend on a leverage you use? What leverage can you recommend? It seems that a high leverage can bring you more money, but risks are higher too.

Even with only USD 1,000 account, I will recommend use only 1:200 (Myself was trading 1:100). Higher leverage is just to encourage trader to open more trades. Of course you can choose not to open trades, but in psychology, humans get greedy and that's the time you will see your beautiful MC if its against you.

 

[iMusingKiMi]

Let's take another example which I use a leverage of 1:100.

Opening USD on 0.1 STD LOTS is about USD 109.00 for this leverage. Hence, if you have 20 pips STOP LOSS of 0.2 STD LOTS, it takes your risk of 4% in your account which cost you only about USD 218.00 on margin requirement. You can already take such a high risk of trading which usually professional recommend on 2-5% as your money management for risk per trade. If you put 0.3 STD LOT, it cost you only roughly at 33% of your account balance on margin requirement and with the same stop loss already hits of 6% risk per trade. This create more safer trading environment rather than going 1:500 or even 1:1000 or so on.

Therefore in my point of view, any leverage higher than 1:200 trading is no more difference going to gambling in a casino, especially by opening another position which involving on correlation instruments.

 

[NicholasM]

To continue with the question, I've noticed that freshforex does not have a min deposit at all. It is perfect although I understand that trading with less than 200$ is rather problematic.

It depends on what your goal is. For instance, if your are looking to try out different strategies and currencies, then even a $100 account would do perfectly well. I know that some people prefer to use the demo account, but in my opinion, if after using the demo account for practice you feel that you still need more practice, then do not open another demo account, but rather a live account funded with a small amount that you are ready to lose bit by bit. This is because live trading is quite different from demo trading in several aspects, and you may need to learn this without risking a lot of money. make sure you trade using micro- lots and keep leverage low to afford yourself several trades.

 

[Kokomaster]

To continue with the question, I've noticed that freshforex does not have a min deposit at all. It is perfect although I understand that trading with less than 200$ is rather problematic.

I think it will be more nice you invest what you can afford to loose. Some brokers set minimum investment while some others are open to invest even for a dollar amount. I trade with my broker and I invest what I can afford while trading with the hope of gaining good amount.

 

[OlafYom]

Many thanks for your answers! They are really useful! I realized that a leverage depends on which leverage broker gives your either