The million dollar question in forex trading - How much should I start with in forex trading. Technically you can start with as little $5 USD. Yes you heard it right & no limit to upside. But with $5 USD do not expect some fireworks. There is no one straight answer to what's the ideal amount to invest in forex trading. It depends on quite a few factors which we will be getting into right away.
The first factor to consider is this, how much money are you willing to lose. if its $10, $1000 or more. Whatever that amount is is the amount you should consider investing. Second thing is understanding that the higher amount you have in your trading account, the lesser is the risk and there is higher possibility of making gradual returns on your account provided you trade sanely.
Let me explain to you how this works. Lets say you are aiming to make a $100 per week. Now if you invest just a $100, you are aiming to make 100% return per week which can end up in high risk trading.
But if you start with $1000 & aim to make $100 per week, that is still a much lower risk as now you are aiming to make just a 10% of the account. Thirdly, enough money on your account allows you to keep your trades running for longer in case you are on a wrong position, this way you can actually wait for the trades to come back into your favor. These are the important pointers to consider while thinking about how much to invest in trading.
Trading is a business, not a casino. As a trader, you are a businessman, not a gambler.