How much should you invest in trading

I do not think there is a good or wrong answer to your question. In the beginning it is better to start small, and take little steps so as to learn while minimising your risks. I also suggest starting off with a demo account at first. It helped me a lot as I understood some tricks of the trade. At the end of the day it also depends on how much losses you feel okay with bearing, and how much risks you are willing to take. In my case I like to be quite careful.

there is no fix number, one should invest as much as he can afford to lose.

It is very important to understand the fundamentals of trading first before investing. Always invest in proportions, for example, out of 100% funds invest 40 save 60

it totally depends on how much you are willing to lose or afford to lose. if your income is $10000 you cannot go on depositing $20000 in the market. what will you eat after you lose. so these things needs to be taken care of.

The author said a worthy thing, about money management that depends on account balance. I started with 5k account that was blew during several bad days. It was the beginning and it was trading without knowledge.
So... if you are a beginner, it's better to start with at least 100 usd and just get some knowledge and exp during small trades.

This question is pretty hard to answer it is a sheer subjective matter. First of all, you should understand your objectives and what you want to achieve in the forex market. If you want to make some decent profits which will allow you to make trading your full time job, then you need to have a pretty large deposit. You need to calculate how much money you need for living every month and multiply this number by 10, at least. If you want to learn how to trade properly, I believe that it is better to start with a budget of $5000-$10000. In this situation you'll learn how to control your emotions and use money and risk management and get the results which will motivate you to keep the learning going. Surely, if you don't have such money right now, you can deposit whatever sum you want, but you should take into account the facts that 1) you'll hardly earn anything tangible, 2) if you want to have good results, you have to take big risks.

Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.

Well, managing risk requires good investment. Which will help me make a profit on my account.

AliaDare posted:

Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.

Well, managing risk requires good investment. Which will help me make a profit on my account.

Completely agree, like if you risk 1% of your account and you have 1000 in your account you would need to lose a lot of trades without winning one. It is key to let variance have some room and then you can focus completely on nailing down your entries and all the other important things. It is so key to make sure you're comfortable in a trade that when it goes into DD you are not getting nervous at the red number. It is a skill to learn but can definitely be learned

The higher the amount, greater is the profit. But for beginners, a minimum of $100 is enough.

CraigMcG2020 posted:

AliaDare posted:

Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.

Well, managing risk requires good investment. Which will help me make a profit on my account.

Completely agree, like if you risk 1% of your account and you have 1000 in your account you would need to lose a lot of trades without winning one. It is key to let variance have some room and then you can focus completely on nailing down your entries and all the other important things. It is so key to make sure you're comfortable in a trade that when it goes into DD you are not getting nervous at the red number. It is a skill to learn but can definitely be learned

The better my investment, the better my risk management.

What you can afford to lose is my opinion. I think this will help deal with the loss aspect of trading.

In the beginning don't invest too much money. Few 100 bucks is enough. Even lower than that. Once you start making money on consistent basis you can invest big amount.

Most financial planners advise saving between 10% and 15% of your annual income. A savings goal of $500 amount a month amounts to 12% of your income, which is considered an appropriate amount for your income level.

The investment must be reasonable, and you must understand that the amount you are investing is likely to be lost.

Another point would be that it must be an amount that allows for sensible risk management. If your account is too small to allow you take a 1% risk then wait until you have more disposable income to start with.

Depends on how much you want to invest. If you'd prefer to start small, you could open an account with a broker that only requires a $10 deposit or so and deposit more money later on or build on that. On the other hand, you could deposit hundreds or thousands if you're very confident. I think the most important rule is not to go into debt when it comes to depositing in your trading account, meaning that you shouldn't borrow money or take out a loan, and to only invest money that isn't designated for important things like groceries or bills. That will help you avoid going into debt from trading and if you do lose money you won't have to scramble to pay it back.

Oh, you can invest $100 or $1000 or $100000. Everything depends on your own finance, your knowledges, and your time. Yeah, time is really important. Because you need a lot of time for forex. you need to trade, constantly monitor the market and so on. So think about it.

I started with a small amount because I wasn’t 100% confident and didn’t want to lose a large amount of money if it turned out that I wasn’t good at it. Later on, I deposited a lot more once I saw good results.

HeavLeighGill26 posted:
I started with a small amount because I wasn’t 100% confident and didn’t want to lose a large amount of money if it turned out that I wasn’t good at it. Later on, I deposited a lot more once I saw good results.

thats the way to go for sure. Like you need to be comfortable with the amount you lose on each trade other wise you will intervene on a good trade or cut a trade going well because the amount is more than you expected