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How much should you invest in trading
Vivek Nair (viiveknaiir)
Mitglied seit Feb 22, 2021
3 Posts
Feb 25, 2021 at 09:05
Mitglied seit Feb 22, 2021
3 Posts
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.
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.
Mitglied seit Jul 23, 2020
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Mitglied seit Dec 21, 2020
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Mitglied seit Jan 05, 2021
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Apr 23, 2021 at 13:49
Mitglied seit Mar 28, 2021
617 Posts
For starting one should not invest a lot. Many people think if they had big capital they would make a lot of money. But the truth is if you do not have enough skills and experience, you will lose all the money. No matter how big or small capital you invest.
Mitglied seit Jul 23, 2020
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Mitglied seit Mar 16, 2021
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Apr 26, 2021 at 10:50
Mitglied seit Oct 17, 2018
103 Posts
yeah good advice i feel $100 is good to start as you can use % growth and see how you are doing better as a new trader. but as stated if you are looking to make say $100 a week then you need 10X that. its better to start small lose small and learn first for sure
yana hansen (78678676)
Mitglied seit Oct 16, 2020
137 Posts
Apr 27, 2021 at 11:31
Mitglied seit Oct 16, 2020
137 Posts
I agree with you. You can keep your trades running for a longer time if you invest a bigger amount. I know a beginner should not be investing much, but you can’t really do much with $5 in my opinion. So, save up for a while and then go for it.
Mitglied seit Oct 26, 2020
37 Posts
May 05, 2021 at 11:29
Mitglied seit Oct 26, 2020
37 Posts
Pezza posted:Surely starting small is good for those who are still at the beginner level. It’s fine for familiarizing themselves with the concepts and terminology.
yeah good advice i feel $100 is good to start as you can use % growth and see how you are doing better as a new trader. but as stated if you are looking to make say $100 a week then you need 10X that. its better to start small lose small and learn first for sure
Mitglied seit Oct 05, 2019
37 Posts
May 05, 2021 at 11:33
Mitglied seit Oct 05, 2019
37 Posts
asidefellow posted:Agreed. better to start off with a small sum than regretting losing all the money in one go. As a beginner, one lacks knowledge and doesnt have much experience of how unpredictable fx markets can be. So its wise to not risk much.Pezza posted:Surely starting small is good for those who are still at the beginner level. It’s fine for familiarizing themselves with the concepts and terminology.
yeah good advice i feel $100 is good to start as you can use % growth and see how you are doing better as a new trader. but as stated if you are looking to make say $100 a week then you need 10X that. its better to start small lose small and learn first for sure
Mitglied seit Dec 17, 2020
15 Posts
May 07, 2021 at 09:37
Mitglied seit Dec 17, 2020
15 Posts
asidefellow posted:Isn’t $100 too low to begin? I thought it was just for micro accounts or something.Pezza posted:Surely starting small is good for those who are still at the beginner level. It’s fine for familiarizing themselves with the concepts and terminology.
yeah good advice i feel $100 is good to start as you can use % growth and see how you are doing better as a new trader. but as stated if you are looking to make say $100 a week then you need 10X that. its better to start small lose small and learn first for sure
Mitglied seit Oct 26, 2020
37 Posts
May 07, 2021 at 12:09
Mitglied seit Oct 26, 2020
37 Posts
marioharmon posted:Even if you go with a standard account, you can still manage to trade mini or micro lots. Going for a micro account with as low as $100 is okay too if a newbie just wants to practice. There is no such set limit with them and it totally depends on the trader. Like when I started trading, I went with 2 accounts - demo account for practicing strategies and micro account for practicing them in live conditions. This allowed me to focus on managing risk at a small scale without worrying so much about losing a high amount.asidefellow posted:Isn’t $100 too low to begin? I thought it was just for micro accounts or something.Pezza posted:Surely starting small is good for those who are still at the beginner level. It’s fine for familiarizing themselves with the concepts and terminology.
yeah good advice i feel $100 is good to start as you can use % growth and see how you are doing better as a new trader. but as stated if you are looking to make say $100 a week then you need 10X that. its better to start small lose small and learn first for sure
lovefortrading (perryjohn765)
Mitglied seit Sep 12, 2017
238 Posts
Mitglied seit Mar 29, 2021
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