How much should you invest in trading

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.

In my opinion, starting trading with only $10 USD is good for learning purpose. For good investment I recommend $500 to $1000.

The more you invest, the more you can develop your skills. Because it is never possible to survive in trading without developing skills. I think it is better to make a minimum deposit of 1000 USD.

As a beginner, you must not invest a big amount. You better start small so that you stay safe.

That entirely depends on your capital and how much you want to spend on trading.

tiahsherman posted:
As a beginner, you must not invest a big amount. You better start small so that you stay safe.

Yes. I agree with you. Most traders think that the more you invest the more you can make profits. It is not true.

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.

Always start with low capital. Try to focus on growing this capital into a big one.

'It depends on how much you want to invest and if you are confident enough to get back more than what you have invested.

I've used to trade with $10 a trade but gain more but using leverages and slowly raised it to 50 or 100 once I gained the knowledge about it.'

Trading should be done with the amount of investment that can be used to maintain money management and risk management.

Always invest small amount unless you start making money on consistent basis. Once you are making regular profit, you can invest big money.

tiahsherman posted:
As a beginner, you must not invest a big amount. You better start small so that you stay safe.

Good point. Beginner traders have less knowledge so trading with big investments is more likely to result in loss.

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

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.

Pezza posted:
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

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.

asidefellow posted:

Pezza posted:
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

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.

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.

78678676 posted:
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.

Very good suggestion.

asidefellow posted:

Pezza posted:
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

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.

Isn’t $100 too low to begin? I thought it was just for micro accounts or something.

marioharmon posted:

asidefellow posted:

Pezza posted:
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

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.

Isn’t $100 too low to begin? I thought it was just for micro accounts or something.

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.