If you are a beginner then keep it low for sure but if you have some experience with trading in the past and came back after a break or something then first update yourself about the market entirely and try to practise a few times then see how you are performing and then I guess you will know how much to trade with.
No matter how many times beginners ask this question, at the end of the day, it depends on each person’s individual budget and plan and how much they wish to spend according to their financial situation. Of course, expectations should be achievable.
Whatever your investment size is, try to pick up a secure broker. Insecurity is a big issue of brokers as traders are mostly victim to it. The securer a broker is, the more trustworthy it is among traders. But it’s the facility where most of traders are failure. You can choose ECN broker to invest your capital safely.
If you’re just starting out, please do not invest huge amounts. Start small and then expand as you learn the process. As you gain experience, you will get better at making wise decisions, use it to your advantage to make consistent profit.
Furbelows posted: If you’re just starting out, please do not invest huge amounts. Start small and then expand as you learn the process. As you gain experience, you will get better at making wise decisions, use it to your advantage to make consistent profit.
I think everybody choose themselves. But your right that you need to invest the amount with which the investor is ready to part easily. It doesn't have to be the last money.
There is no limit as to how much you should invest in trading forex. Many people start with affordable capital for example $100, whereas big and experienced traders trade with capitals as huge as $100,000 or more. Remember that higher the trading capital, higher is the profit (if you win), because as an average trader makes 2% to 3% per trade. On the other hand, you might also be tempted to use leverage, but if you do so, remember to use Stop Loss in your trade, because if the market turns against your predictions, the negative side of leverage can blow your bank account.
I know that you know that your profits in the forex market depend on the amount you put at risk. But if you are just starting out, keep aside your zeal to make money and focus on learning so that you trade properly and don’t lose anything you can’t afford.
What you use for trading depends on the level you are at and your affordability. Making big gains would need big risks but if you are just starting out, you can keep them low until you know that you are capable of taking bigger risks.
Oh I would like to say the best invested amount to start is $1000. Because if your amount much less you need the leverage about 1:200. And as I know not every broker can provide you with this. And of course do not forget about your trading strategy. That also includes a certain amount of investment.
See, Forex trading is a multi-trillion dollar business. There is no limit to how much money you can invest in the market. There is neither a maximum nor a minimum requirement in order to engage in trade, and neither can be changed.
Don’t wait for anyone to tell you how much you should invest per trade. It should solely be your trading decision on the basis of how you understand the market movements and how well you can take advantage of them. Use a small amount to trade if you are not sure about your trades and if you are sure, you are free to take any risk you want. Just make sure you stick to your risk management strategy to stay safe in the long run.