starting balance question

[keen2learn]

hi everyone

right im 27 years old work full time and i want to start out trading forex pips part time i was told i should start with £3-£5,000 but as i dont have that sort of money i have £100 maximum spare now i know i can start trading with that my question is what is the maximum i could make each day trading only 1% of my balance e.g £1 (what seems to be what you should do).

i was told with that £1 trade you should make about £3 day which is £60 a month is that correct, if so then if you let your money build to £200 then trade 1% of that e.g £2 then that would be £6 a day then that would be £120 a month and then every houndred you make move up trades £300 = £3, £400 = £4 and so on, per trade still in 1% risk is it possible to carry on like that (maybe not them figures everyday but close) and eventually make good money (no get rich quick sceme) i'm in it for the long haul use it to boost my retirement fund so let my money build up and don't touch it im very patient person.

how long as a time frame if the above is right would you say it would take in months/years till im in a possition to start making £1000 a week first benchmark and how much would you need in the trading account to achieve that trading 1% of account balance

thanks

keen2learn

 

[paszkman]

Have you tried trading on a demo account?

 

[itspossible]

^^x 1000

 

[verial]

Try a demo account with the amount you plan to invest. See if you can profit on that demo account before you play with real money.

Alternatively, get into stock options. You can start safely with $3,000 (see my thread on how I did exactly that).

 

[tomorton]

A more usual way of starting your money management plan is to calculate 2% of your trading capital, and set this as the maximum amount in £ that you would risk losing on a trade. You have to bear in mind that 30 or 40% of your trades will be losers: losing your capital is the only way to get knocked out of the game, and you have be in it to win it.

this is not just a game of spotting entry points on a chart. You will need to have 3 prices in sight when you open a trade -
entry (there will need to be a chart pattern that justifies entering here),
stop loss (the price you will have to exit the trade at/before your max % loss: there will need to be a chart pattern that tells you once this level is reached, your entry pattern is neutralised and what you thought should probably happen now probably won't),
target (if the trade does go your way, you need to close it at some point so that price cannot drift all the way back to your entry and leave you with no profit banked: the chart should again suggest the level it would be safer to exit with profit at).

Don't try to make a set £ profit level: but do worry about only losing as little as possible. Definitely demo your trades with paper money to become consistent. There is really no hurry.

 

[Splitlink]

^^x 1000

?

Don't understand. Humour these old bones, please!

 

[NVP]

don't worry about where you start ....its where you finish that counts .......

N

 

[NVP]

Try a demo account with the amount you plan to invest. See if you can profit on that demo account before you play with real money.

Alternatively, get into stock options. You can start safely with $3,000 (see my thread on how I did exactly that).

yep that will work............start on the simple stuff ?

 

[fx turtle]

hi everyone

how long as a time frame if the above is right would you say it would take in months/years till im in a possition to start making £1000 a week first benchmark and how much would you need in the trading account to achieve that trading 1% of account balance

keen2learn

The real question is that: How long can my £100 last before I fund my account again.?

My answer is: Maybe a week or two.

 

[alexaherself]

i was told i should start with £3-£5,000

Whoever told you that could possibly be a very good person for you to stop listening to.

i was told with that £1 trade you should make about £3 day which is £60 a month is that correct

That would be 60% per month, on your £100 starting capital.

I know good, experienced, successful traders who have been in the game for many years, have studied all the books and "done their 10,000 hours" and are very pleased to make 6% per month, let alone 60%. Very few people ever get that far, and if you're one of the ones who do, you should expect it to take you (at least) years to get there.

Meanwhile, the post above this one is the one you need to take note of.

Good luck - and start with a "demo account" for your first year or so.

 

[Splitlink]

The real question is that: How long can my £100 last before I fund my account again.?

My answer is: Maybe a week or two.

In the beginning, that's about right but you have to start making money at some point! I think that funding the account by using a chequebook and the mail is a very good way of making yourself wait while you try to figure out what you have done wrong. Credit cards, etc. are a way of throwing money at the markets.

Ration your account so that you discipline yourself and don't gp mad.

 

[Fugazsy]

hi everyone

right im 27 years old work full time and i want to start out trading forex pips part time i was told i should start with £3-£5,000 but as i dont have that sort of money i have £100 maximum spare now i know i can start trading with that my question is what is the maximum i could make each day trading only 1% of my balance e.g £1 (what seems to be what you should do).

i was told with that £1 trade you should make about £3 day which is £60 a month is that correct, if so then if you let your money build to £200 then trade 1% of that e.g £2 then that would be £6 a day then that would be £120 a month and then every houndred you make move up trades £300 = £3, £400 = £4 and so on, per trade still in 1% risk is it possible to carry on like that (maybe not them figures everyday but close) and eventually make good money (no get rich quick sceme) i'm in it for the long haul use it to boost my retirement fund so let my money build up and don't touch it im very patient person.

how long as a time frame if the above is right would you say it would take in months/years till im in a possition to start making £1000 a week first benchmark and how much would you need in the trading account to achieve that trading 1% of account balance

thanks

keen2learn

My answer to you is this, do not worry about the money, learn how to trade in the mean time do not lose that 100, you should not by risking 1% per trade and when you have 2 consecutive losses go down to 0.5% pet trade till you have 2 consecutive wins, then you can go back to 1%.

If after ten trading days you finish with a profit you can increase you risk up to 2% per trade in steps but only when you finish with 10 trading days in positive.

So, do not worry about the money, learn how to trade, the money will come...