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Small Investment...

Discussion in 'Beginners Bootcamp' started by Sully, Feb 19, 2015.

  1. Sully

    Sully Recruit

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    Hi Guys,

    This is my first post here at FPA, I'm very new to Forex coming over from trading Binary Options for 10 months......Yeah, I know right!

    I've been reading into the Military School for a couple of weeks now, slowing chugging through the the great information provided. I'm also following Jarratt Davis very closely to gauge how he trades the fundamentals as this way of trading is really what brought me over to the light.


    The question I have is, not having thousands at my disposal to invest with, would $200 be a reasonable deposit to begin with?

    Any feedback on small investments would be highly appreciated, I plan to start a demo account shortly and use that until I feel comfortable enough to use a live account but I just trying to feel for what kind of deposit amount I could see respectable returns from.

    Thanks in advance :)
     
  2. Pharaoh

    Pharaoh Colonel

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    It's always a good idea to start with demo. When you are ready to go live, then a very small amount is a wise idea. Avoid bonuses - too many brokers use those to tie up your funds.
     
  3. bigdolly

    bigdolly Sergeant Major

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    200$ should be enough for testing purposes. You'll most probably lose them but spend wisely trying market with micro and nano lots to get the feel of spreads, execution, entry and exit slippage, etc. I strongly recommend to arm with trading system and set a MM rules before vigorously careering into live side of trading, otherwise it could turn into gambling easily.

    What about broker choice? Have you already decided on some of them?
     
  4. downtrend

    downtrend Sergeant

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    It depends on your withdrawal plan. Once I started with $25 and took that to $662 in 7 months of trading. If you are aiming to compound, then you can keep your profits in your account and can increase it to a big account.
     
  5. RahmanSL

    RahmanSL Major

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    First & foremost, your mindset should be preconditioned to take the forex market as an investment instrument and not a gambling venue where you simply dump your money on "buy" or "sell", get lucky and withdraw.

    Start on any amount of money that you can afford/spare and do yourself a big favor by going with a well regulated broker. Practice good money management, trade small/cautiously/patiently, and trade only what you are familiar with and is reasonably sure with.
    Whenever you have some more spare cash, deposit that into your trading account to build it up like as you would with a bank fixed deposit account.
    Over time, with trading profits and additional spare funds, your trading account should and will grow to a size where you might be able to trade full time.
     
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  6. RahmanSL

    RahmanSL Major

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    To drive home the points in my above posts, I signed-up for a "live USD100 no-deposit-bonus" trading account with Capital One Forex (yah,yah, yah....I see the review on them here too :p) starting 16-Feb-2015 and has 30 days to comply with their T&C before I can withdraw any "profits".
    As shown on the attachment, I have more than doubled the initial USD100 no-deposit-bonus BUT I am not sure I have fully complied with their T&C :p

    However, the point of this post is to show, and to prove to Traders starting out with small account size can gradually build up their trading account with lots of patience, practice good money management, and add more spare money into the trading account to build it up over a period of time....i.e if I want to continue to build up that trading account, I will indeed need to add more spare cash as I can afford.

    I hope Newbies and Wannabe Traders now have a better understand of what I am talking about :cool:
     

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  7. NicholasM

    NicholasM Corporal

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    I think you are on the right track. Starting with a demo, and then going live with a small amount. That is on point. However, as for respectable returns, I think with that amount you should get that out of your mind for now, otherwise it could tempt you towards leveraging your account at high levels, which is not good, because then, you $200 could be blown out by your first trade. So as you go in with a small figure, it would be wise to keep the risk levels as low. This also gives you an opportunity to prolong the life of your first live (testing) account.
     
  8. bigdolly

    bigdolly Sergeant Major

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    Yeah, it's true regarding leverage. That's why to avoid exposing your account to extra risk choose 1:200 leverage to open enter market with no more than micro volumes. 200$ will linger for a long time there :D
     
  9. downtrend

    downtrend Sergeant

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    I agree with you, a small investment with low leverage can be useful as long as you don't deviate from your money management. It even works with any amount of investment.
     
  10. nahiyar

    nahiyar Private, 1st Class

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    A small investment like $200 is good to start when you are starting trading as you are learning. Just keep your lot size at 0.01. When you want to earn good money then you need big investment too.
     
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