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

[Jingles]

gfulton interesting ideas.

Al Brooks says you must keep trading real money no paper accounts. He says you must have enough money to trade daily for 3 years. because it will take 3 years of every day making trades to finally be able to break even. if you dont have enough money you should not start trading.

He insists that you trade with real money and make at minimum one trade a day every day. he wants more than 1 trade a day but that the trader must take a trade every day. no days off. for 3 years to break even. He insists that NO paper trading is allowed. it must be real money. TRADING IS DIFFICULT.

of course he says that you can find something with low money risk on each trade. that is possible with mini and micro Forex contracts and also trading just a few shares of something.

for example one might risk only $1 on a trade. that is much better than no money at all on the trade.

 

[arigoldman]

gfulton interesting ideas.

Al Brooks says you must keep trading real money no paper accounts. He says you must have enough money to trade daily for 3 years. because it will take 3 years of every day making trades to finally be able to break even. if you dont have enough money you should not start trading.

He insists that you trade with real money and make at minimum one trade a day every day. he wants more than 1 trade a day but that the trader must take a trade every day. no days off. for 3 years to break even. He insists that NO paper trading is allowed. it must be real money. TRADING IS DIFFICULT.

of course he says that you can find something with low money risk on each trade. that is possible with mini and micro Forex contracts and also trading just a few shares of something.

for example one might risk only $1 on a trade. that is much better than no money at all on the trade.

I've never heard a bigger nonsense than this. At least not lately.

 

[Jingles]

I've never heard a bigger nonsense than this. At least not lately.

Well you have to look around more. there is nonsense all over the internet.

Don't blame me that you can not find more nonsense. I find it everywhere.

It helps when I know I am insane. that way I blend right in with the nonsense.

Try it you might like it. I am sure your mind can think up some nonsense that everyone will appreciate. here let me show you how to do it once again.

Ok I'm ready. I have some more nonsense to share with the world.

"I've never heard a bigger nonsense than this. At least not lately."

That was pretty funny. I like to laugh at nonsense.

 

[Mr Sept]

Well you have to look around more. there is nonsense all over the internet.

Don't blame me that you can not find more nonsense. I find it everywhere.

It helps when I know I am insane. that way I blend right in with the nonsense.

Try it you might like it. I am sure your mind can think up some nonsense that everyone will appreciate. here let me show you how to do it once again.

Ok I'm ready. I have some more nonsense to share with the world.

"I've never heard a bigger nonsense than this. At least not lately."

That was pretty funny. I like to laugh at nonsense.

...................

 

[idimitrov]

Start with that amount of money that you can afford to lose.

 

[radex78]

Start with that amount of money that you can afford to lose.

This is golden rules investing money in high risk business inlcuded forex, and still there are type business that included as high risk namely HYIP or high yield investment programme, but usually this is only money game

 

[Alexander1]

You can start a demo to participate

 

[juuan]

Start with that amount of money that you can afford to lose.

This is exactly the answer

 

[DavyBFX]

Start with that amount of money that you can afford to lose.

Completely agree. I'm a beginner and for at least my first year trading am only putting in what I can afford to lose.

 

[progix]

Completely agree. I'm a beginner and for at least my first year trading am only putting in what I can afford to lose.

This is very good idea and better if you can practice demo account as well in order to learn forex processes more easily.

 

[s.taylor]

Absolutely right, always start with only that much amount which you can easily afford to lose. However, what one can do is start with demo trading and then gradually starts with small real account.

 

[greg.darren]

Absolutely right, always start with only that much amount which you can easily afford to lose. However, what one can do is start with demo trading and then gradually starts with small real account.

True that! A beginner should only risk the amount he can afford to lose as beginning can be quite rough at times. Emotional crunches, revengeful trading all these mental blocks can lead to huge losses. I too feel demo trading is essential before proceeding with a live account. Practice a demo for some months till you start making some consistent profits and then go for a micro account. That’s how a beginner should start trading.

 

[s.taylor]

True that! A beginner should only risk the amount he can afford to lose as beginning can be quite rough at times. Emotional crunches, revengeful trading all these mental blocks can lead to huge losses. I too feel demo trading is essential before proceeding with a live account. Practice a demo for some months till you start making some consistent profits and then go for a micro account. That’s how a beginner should start trading.

Totally agreed! Also demo platforms can be used effectively for testing strategies by all the amateurs as well as professional traders.

 

[tradethetrade]

Awesome advice provided by the community and I agree that the amount varies vastly by personality, markets and instruments.

One point that was not discussed is the importance of spending some money on quality education first. We all have heard that the best education opens at 9:30 and closes at 16:00 and it is called the Stock Market, but before you start pushing buttons, you must have theoretical knowledge to understand what is going on when you push the buttons.

Even if you start by trading fake money, it would greatly speed up your learning curve if you can master the foundation of risk management, position sizing, putting stops, strategic planning, what happens inside your head when you trade, different styles of trading, different instruments to trade and their risks and requirements.

Once you get a good grasp of what it takes to become a trader, you can then start pushing some buttons on a simulator.

There are tons of educational sites out there and I'd invest my money on one as a starting point to a trading career.

 

[liam.harper]

Awesome advice provided by the community and I agree that the amount varies vastly by personality, markets and instruments.

One point that was not discussed is the importance of spending some money on quality education first. We all have heard that the best education opens at 9:30 and closes at 16:00 and it is called the Stock Market, but before you start pushing buttons, you must have theoretical knowledge to understand what is going on when you push the buttons.

Even if you start by trading fake money, it would greatly speed up your learning curve if you can master the foundation of risk management, position sizing, putting stops, strategic planning, what happens inside your head when you trade, different styles of trading, different instruments to trade and their risks and requirements.


Once you get a good grasp of what it takes to become a trader, you can then start pushing some buttons on a simulator.

There are tons of educational sites out there and I'd invest my money on one as a starting point to a trading career.

It can also be another very important factor to be considered as a starting point to a trading career. As I always say learning is core essential part of forex trading and it is an ongoing process, so spending some money first on acquiring quality education is like building a strong foundation for your trading career. Initially you might not understand its relevance but with time when you form a base in the market you will surely get to know its importance.

 

[WklyOptions]

True that! A beginner should only risk the amount he can afford to lose as beginning can be quite rough at times. Emotional crunches, revengeful trading all these mental blocks can lead to huge losses. I too feel demo trading is essential before proceeding with a live account. Practice a demo for some months till you start making some consistent profits and then go for a micro account. That’s how a beginner should start trading.

Good advice here greg.darren!

Interestingly enough - I have been in the Far East doing consulting trading work with Family Office traders there for the past year. And in that time, I have run into many retail Far East traders in Shanghai, HK, Singapore.

Although there is substantial over-leveraged trading, over-betting = all causing many account blowups I watched there - there is ONE important belief they have there that may be an advantage: Risk Capital = Risk Capital!

What I mean is that if they opened a $10k account - they are not afraid to lose the $10k entirely. I am NOT saying that it is a smart idea if there is excessive leverage and over-betting which will definitely lead to huge Drawdowns and blowups.

But - my point is that new traders and many retail traders in the West have a bit of an incongruency on Risk Capital. They open a $5k account - but panic and become highly erratic in emotions and behaviors after losing $1k. Then the $5k was never true RISK Capital. The example would indicate a true Risk Capital of $1k - so bets and leverage had to be adjusted accordingly to the $1k true Risk Capital.

But then I can already hear the counter-arguments here - "my bets are too small", "it will take me forever to be able to live off my trading profits"...

Results-based trading reality:

1. Do not give up your day job - you should have an alternative income source to fund your daily and monthly living expenses separate from your trading account.
2. If you are a high performance trader and can generate monthly, quarterly profits, it should be put back into the trading account to allow reaching critical mass. Usually most successful traders that actually live off trading profits have minimum accounts of $100k to $250k.
3. Constantly withdrawing a small trading account to fund expenses and lifestyle is not congruent for professional income trading. Eventually - a small account (e.g. $10k) that is stressed repeatedly month in and month out (e.g., withdraw $1/mo) will get hit with multiple Drawdown periods - and this will cause a negative equity spiral leading to account failure/blowup.

If you are fortunate enough to be accepted into a formal trading internship program, usually these will have a stipend to help offset the incredibly damaging stress of having to meet living expenses off the trading account(s).

Hope this insight is helpful (even if a bit alarming and painful to accept...).

WklyOptions

 

[Dabis]

Donde entro para simular y juegar con el dinero de papel antes de entrar ajugar con dinero real..
Gracias...
Saludos

Translation:
Where can I come to simulate and play with paper money before entering to play with real money ..
Thank you...
regards

 

[Jenny FX]

In my opinion - at least 10 000 pounds.

 

[Colin86]

Hi,

From my personal experience I suggest to try with min deposits ( $250 ) first to learn trading room, markets, assets etc. Let's say Binary Options is a simple way to trade price fluctuations in multiple global markets.It is easy and intuitive process , If I believe the market is rising, I would purchase a CALL. If I believe the market is falling, I would buy a PUT.
I also use Signals from Binary Options Robot , it makes it even easier for me. These type of softwares offers various brokers so you can try trading on different platforms at the same time.

 

[piphoe]

https://www.xe.com/currencycharts/?from=XBT&to=USD

a handful of bitcoins