Learning Forex Trading

How much is the minimum amount I should invest for my leverage if I will open new account?

500

Depends what broker are you going to use.

I am going to start with $500 as well... and with 1:200 leverage.. 😄

markjasonmanikan posted:
How much is the minimum amount I should invest for my leverage if I will open new account?

If you are new then dont go over $1000 (max) and when you get good experience in trading than even $10000 would be less...

markjasonmanikan posted:
How much is the minimum amount I should invest for my leverage if I will open new account?

You should start with 1:10 leverage

1:100 would be okayy aswell ... People go crazy with 1:400++

AliKhan1 posted:
1:100 would be okayy aswell ... People go crazy with 1:400++

The truth is that extreme leverages are not the best for the new trader. Leveraged trading might seem attractive as it could be amazing controlling $40000 with just $100 when you use a leverage ratio of 1:400. But with what I have seen in the forex practically, leverages might seem lucrative with the possible profit you could make from a leveraged account but the true reality is that it requires good experience to properly operate a highly leveraged account and eventually not get a margin call. Especially as there is no guaranty that prices wouldn't go against your direction. On the highest end, I think a leverage of 1:20 is almost enough if well done with proper risk management.

Ja, some spectacularly bad answers here. For most MT brokers around you need about $100k if you intend to have any chance to make it at all.

The reason is very simple. Regardless of how much leverage you have, most of them have 0.01 lots minimum trade size on 100 000 unit size lots. The brokers that do offer small lot sizes are for the most part not reputable with one notable exception.

To put that into perspective, the value of your trade is : current price x lot size x lots

So in EurUsd at current prices 1.09 x 0.01 x 100 000 = 1090.

If your account has $200 in it, or $500 or even $1000 your minimum trade sizes are far more than the actual value of your account. In fact when you get to $100k only is it about 1%.

Doesn't matter what you're going to do, the account will not survive unless you're one of the top 1% of traders in the world. That's why so many people fail at fx. You're better off taking that money and buying beer with it or watching movies or buy the wife something. Putting a few hundred into fx is just a waste of time and money.

There is one broker that will allow 1 unit trades. Oanda. I suggest opening an account with them and doing a demo till you're happy you can pull it off. Then start with very small trades and up your trade sizes as a percentage of equity as your confidence grows.

Ultimately it's your DD that decides how much money you can make. Not your leverage and not your start amount.

In my opinion:

Leverage needs are different to every trader, depends on your strategy and how much money you plan to risk on every trade, anything above 5% risk per trade is suicide, 3% is already a good number.

If (for example) you plan to eventually open an account with $5,000:

1. open a $5,000 demo account and trade with that for a few months untill you become profitable. That way you will have time to test and try your system and emotions.

2. Once you are profitable on demo start with a real account, but fund it only with $1,000 (out of your $5,000), wait until you are profitable, at least one month.

3. Deposit up to half of your capital, wait until you are profitable. At least one month.

4. Deposit the whole amount

You wil:
a) learn to trade first with demo funds,
b) you will learn to control your emotions first with a small amount of money
c) You will not risk your capital until you feel safe and you can really trade
d) You can use all the time it will take you to become profitable to save the money to finally fund your real account
 

Demo isn't going to teach you how to trade so beware. It's going to teach you how to use the platform and that's it.

paull3000 posted:
In my opinion:

Leverage needs are different to every trader, depends on your strategy and how much money you plan to risk on every trade, anything above 5% risk per trade is suicide, 3% is already a good number.

If (for example) you plan to eventually open an account with $5,000:

1. open a $5,000 demo account and trade with that for a few months untill you become profitable. That way you will have time to test and try your system and emotions.

2. Once you are profitable on demo start with a real account, but fund it only with $1,000 (out of your $5,000), wait until you are profitable, at least one month.

3. Deposit up to half of your capital, wait until you are profitable. At least one month.

4. Deposit the whole amount

You wil:
a) learn to trade first with demo funds,
b) you will learn to control your emotions first with a small amount of money
c) You will not risk your capital until you feel safe and you can really trade
d) You can use all the time it will take you to become profitable to save the money to finally fund your real account
 

Professional traders use 1.5 -2% maximum per trade,anything above this is nuts.Open a demo to get some practice,but you wont really know how to trade until you have a live trade on,plus demo is set up differently to live accounts,find a true ECN broker so there is no conflict of interest.Leverage isn't really the problem if you understand it and act sensible with your stops.No over night positions until you get a feel for the market.

It is up to you to decide what is this minimum amount, broker and type of account should be taken to consideration. Personally I first time deposited minimal amount and used minimum leverage. I believe mini accs teach well without much risks.

Put minimum amount into your account until you get good at a particular strategy,then you can add to it.
Leverage is not the problem,it's where you put your stop loss is,I have never had a problem with leverage,if anything it's a positive,don't be afraid of leverage.

It's all up to you for the capital of your live account, and try to look a broker for some possible leverage (for e.g 1:2000, gotta try to find some brokers who offers that kind of leverage)

Well, in this case, pay extreme attention to the main rules of money management. I guess it's not a secret for anyone that high leverage without proper money management can destroy one's account very quickly. Excuse me if it has been mentioned lots of times already, but I think it's better to note that one more than skip another time.

arigoldman posted:
Demo isn't going to teach you how to trade so beware. It's going to teach you how to use the platform and that's it.

Of course you can learn trading on demo. Its the same as real.
Hard point is to handle psychological burden when you trade real money.

markjasonmanikan posted:
How much is the minimum amount I should invest for my leverage if I will open new account?

$100 with 1:500 leverage if you're ready for it and it still affordable to lose...

It's not how much you should put in ,it's how much are you going to risk on each trade,where you put your stop loss,what product are you going to trade,is there news events around your entry,etc.