When a trader uses small

@LukeRachel Yes without risk management, it's not possible to survive in the forex market. Unfortunately many people do not follow any risk management team.

It would be necessary to clarify what we are talking about at all. Sometimes it is better to start with a small amount, especially if the trader does not have enough experience.

Akasuki posted:
@LukeRachel Yes without risk management, it's not possible to survive in the forex market. Unfortunately many people do not follow any risk management team.

Of course, risk management is important for every trader.

It’s better to deposit more if possible, but some may not have a lot of funds to start with. It also ain’t advisable to take out loans for trading. Fortunately, some brokers do cater to those that would like to start with a small investment. I also think that low entry barriers make more timid traders feel confident enough to make that first deposit whereas a minimum in the thousands would be intimidating.

HeavLeighGill26 posted:
It’s better to deposit more if possible, but some may not have a lot of funds to start with. It also ain’t advisable to take out loans for trading. Fortunately, some brokers do cater to those that would like to start with a small investment. I also think that low entry barriers make more timid traders feel confident enough to make that first deposit whereas a minimum in the thousands would be intimidating.

This is the real thing, your reasoning inspired me. In fact, there are many brokers in trading who allow you to trade with little investment. But with this small investment there are many obstacles to overcome.

Proper risk management is mandatory for every trader.

I can agree with you actually. Small capital in my opinion should be used only in two main situations. If you are a novice and you want to understand the mechanics of the market, so you can open a position with couple of dollars and close it with 0.5$ for example, or with minus 0.5$. By these techniques you will be able to stay with your deposit and you wil be able to learn trading.
Another situation where you can use small deposit is when you want not to stay for too long in trading. If you want just to get acquinted with trading activity and no more. You will lose all your deposit and you will understand that it's not the activity you want to run.

In many ways, the strategy really depends on the trader himself. Strictly speaking, the result depends on this.

In this case, the result depends on the trader himself. It is important that the trader himself understands this.

SteveHanks posted:
Proper risk management is mandatory for every trader.

It really is no matter how experienced and if one doesnt use it one will soon be taught to use it

Risk management and money management is important issue in forex trading this is ned to be handled with discipline, greedy maybe will become the big enemy for all traders, sometimes trader becomes greedy because overconfident, the market is very dynamic, there is no exact pattern that will always become a true signal, sometimes trader must ext on loss position.

FXOday posted:
Risk management and money management is important issue in forex trading this is ned to be handled with discipline, greedy maybe will become the big enemy for all traders, sometimes trader becomes greedy because overconfident, the market is very dynamic, there is no exact pattern that will always become a true signal, sometimes trader must ext on loss position.

I agree with you.

That depends on individual goals. If you are already experienced and are trading for profits then it is important to invest a sufficient amount in your trading account. However, if you are a beginner, your goal should not be to make maximum profits but to learn different aspects of trading. At such times, I don’t think it’s wise to put a large amount on stake.