FAQ How Much Money Does a Trader Need To Start Trading?

[malaguti]

True. But having all that money can inevitably lead to taking greater risks and therefore losing (or winning) more. And that's the biggest point I think, winning small or big, losing small or big it's all relevant. Being level headed about your trading is what matters. A win is a win, a lose is a lose regardless of the amount.

work on your drawdown, know what that amount is and size accordingly. If you can trade 300 and turn that around, you can trade higher amounts. if you cant, then that cushion you talk of, will likely just be stuffing. Anyone who says you need 5k im sorry but that's just wrong.
If you can trade 300, then that will multiply. of course you wont be able to live off it, but it will save you many thousands if that system of yours was wrong.
when you know you can, then you can add. Try to use the strategy to make the money, trade off the broker and you will likely never touch that initial capital of yours.
It worked for me, so thats the only reason why i say this. Give it a try brettly.

 

[Babyblush]

The start up cost is relatively low in the forex trading business and thus anyone can get started with few hundreds and earn good income provided they have some realistic targets which can be reached easily.

 

[Splitlink]

The start up cost is relatively low in the forex trading business and thus anyone can get started with few hundreds and earn good income provided they have some realistic targets which can be reached easily.

Your last line is where most fail. The possible profits are so tempting that novice traders are inclined to go for them, instead of taking more modest amounts.

 

[The Leopard]

Most traders can end up as millionaires if they start right and correctly capitalised. All they need to do this is start with a billion, and don't trade for too long.

 

[resistance]

$500 is a good start for new traders . They should check their skills with this money either they can manage this or not. If they do well in trading they should invest a good amount to get good profits. Low amount do not supports to get smart income.

 

[yellowfloyd]

I think it depends on the individual and the amount of money they wish to risk. Normally firms have financial criteria that clients have to meet before trading.

 

[pro_fx]

I will first trade with bonus money which broker gives. Sort out the forex brokers like Greenvautl Fx's We Deposti You Trade bonus offer which was introduced some time back. This kind of offers surely benefit beginners like us. So, no investment is actually required for trading first time. It is better that way.

 

[bigmistake]

I open my first account in HotForex with $10. It's a micro-account. And I think if you want to earn some profit for spending for your personal needs. $500 or higher is better.

 

[brettly]

Agree. If you think about the risk .5-1.5% per trade. $1000 seems to be a great starting point. ie 5-15$.
With multiple trades more equity is obviously a better thing.

 

[Shadowman540]

Another great thread, so as far as account size goes we only have to put up an amount to cover our max potential draw down, cover margins in the max number of possible trades we would take given our money management rules on total exposure?, and have our "actuall max account",earning interest instead of sat there doing nothing.

 

[trade2bpro]

is $50 enough for a start in Forex?

 

[brettly]

No. I don't think $50 is enough. Cpl of bad trades and you will have zip.

 

[pennystockwhizzkid]

$50 is no where near enough to start trading.. $1,000 is the bare minimum

 

[Shadowman540]

Just out of interest, is there any info on average account sizes, and max account size for retail brokers?

 

[satriani]

for start it is better to put small amount of money. After a year if things go well, you can put more and more.

 

[victoriajensen]

I too agree. It's not wise to invest a lot of money right away, before you've found out just how well you do on a live account. It's just not the same, psychologically speaking, as when you trade on a demo account. Obviously the demo account is an absolutely mandatory step to trading with real money.

 

[Simran_Roy]

Its totally depends on traders wealth, they can start with small amount or can invest according to their margine.

 

[big tymer]

depends what your purpose is. If you are trying to gain experience when you are new to trading, make sure it is enough that if you blow up it is enough for you to feel the pain. starting with a small amount and blowing up and thinking "oh its only $1000 no biggie". but if your account was $10,000 and you blow up you may freak out.

I am not a fan of paper trading. you will learn more with real money on the line than you would without the risk of a real loss. when you are paper trading you never have to worry if your trades will make money so you can eat and pay the rent.

 

[hjg]

That would depend on the type and size of the trade. This is a rather general question. Please provide more parameters.

 

[ph_trader]

yeah blowing a 10k account is a pain, but there are people that lose more than that in a single trade, and im NOT one of them /LOL