Questions about Initial Deposit and Leverage

Magnifique

Recruit
Messages
1
Hello everyone,

I am just starting out with Forex and would like to begin trading with real money in the next few weeks. I have been playing with a practice account for three weeks now and turned the fake $50,000 into ~$117,000. I am not sure if that is good or bad; as starting out with a lot of money is probably easier.

Anyway, I have $2,500 that I would like to start out with. Is a goal of making ~$25-40/day with such an amount realistic? Also, what leverage would you suggest I use for such a small account?
 

Pharaoh

Colonel
Messages
19,743
What you want is for an account to have more leverage than you plan to ever use. Then, if you happen to catch the mother of all trends, you can keep adding to your open positions without having to worry about running out of margin.

For daily use, I don't think "margin". I think "maximum loss". For all trades, set a SL which will limit how much of your account you will lose if the trade immediately goes against you (leave a little extra - slippage can and does happen). Read this for more info:

http://www.forexpeacearmy.com/community/threads/how-to-manage-risk-while-forex-trading.2272/

If you keep the max risk from one trade to a few percent and for all open trades to no more than 5-8%, you shouldn't ever find yourself running out of margin.
 

nahiyar

Private, 1st Class
Messages
781
I started forex trading with $500 . It was half of my saving I had that time. I use reasonable leverage not much high in trading. If you had experience of trading in demo even then to avoid high investment when go to live. After some time grow your account when you r trading is smooth and profitable.
 

EURUSD

Sergeant Major
Messages
1,133
I think these amount already in good amount to start in real account, so far I am only trade with small capital in my account, often only make deposit less than one hundred dollar, so I like with high leverage, but if start with these number hence will use low leverage to prevent greedy
 

EuroTrader

Sergeant Major
Messages
1,039
I think these amount already in good amount to start in real account, so far I am only trade with small capital in my account, often only make deposit less than one hundred dollar, so I like with high leverage, but if start with these number hence will use low leverage to prevent greedy
If we are trading with less deposits then the risks in our trading will also come down. This will enable us to trade freely as the amount of loss will get limited :)
 

downtrend

Sergeant
Messages
868
First start with little amount from your $2500, lets say with $500. Trade on it in practice mood, turn that $500 to $1000 using good money management, when you do that only then start with all of your money in trading.
 

ForexVerified

Private, 1st Class
Messages
582
Hello everyone,

I am just starting out with Forex and would like to begin trading with real money in the next few weeks. I have been playing with a practice account for three weeks now and turned the fake $50,000 into ~$117,000. I am not sure if that is good or bad; as starting out with a lot of money is probably easier.

Anyway, I have $2,500 that I would like to start out with. Is a goal of making ~$25-40/day with such an amount realistic? Also, what leverage would you suggest I use for such a small account?
Better start out small, like 0.02 lots and increase as you get better and more comfortable.
 

nahiyar

Private, 1st Class
Messages
781
Yes low investment and minimum lot is a good practice for beginners. We can trade in high risk any time but avoid this as a new trader . when you had good command on trading you can do trading with big lots . Your initial deposit should be 30% of your saving rest of the amount should be kept as back up.
 
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