How Much Trading Capital Is Needed in Forex Trading?

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shaunna75

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If you are planning to do Forex Trading then one of the decisions that you need to consider is how much trading capital to trade with. You need to have a a bigger capital when trading but usually those who are starting up can only spare a small capital. This can still work for them if they choose their market carefully, being a disciplined trader and knowing how to manage their risk so that they can protect what they have and avoid totally losing them. Also make sure to use major currencies.
 
This is a good question I feel the other way to look at it is how much leverage should you be using I feel if you had 20000 in the account and was trading 1-5 leverage you would stand a better chance than 1-500 leverage with 200 in the account. you need to look at what your drawdown could be as well.
 
Wile E Trader said:
This is a good question I feel the other way to look at it is how much leverage should you be using I feel if you had 20000 in the account and was trading 1-5 leverage you would stand a better chance than 1-500 leverage with 200 in the account. you need to look at what your drawdown could be as well.
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This is actually a very good point to think about. You can start trading Forex with $ 100 in your pocket, or $1000, but it has to be amount you can lose, give somebody and forget about it forever and everything should be fine and cool. I like leverage 1:100.

John.
 
why not decide what your stops will be and then assume you have ten losing trades on the trot

that's at least how much (plus aome more) you should have not to be wiped out

if you dont think that can happen then dont trade at all
because it can

if you dont like the number ten then try thirteen
its lucky for some
 
I think as more as you can, if you haven't a lot of money try to start from 100$, it is doog summ for beliave in yourself!
 
Right this kind of leads on to a question I was going to ask...
Where can you trade for 1p a pip, I have been using Gekko which is 10p, but I will just look the option of 1p a pip so I can experiment.

BTW please don't say Finspread I know they offer 1p a point but this is only for 8 weeks, I'm looking for something long term.
 
I would change your question: What kind of capital do I need?
 
I think that you need at least $500. This will get you a mini account and you still have some wiggle room if you start off bad. Also, you can start with less depending on the deposit bonuses you receive. I know a great site that is fairly new that gives out great bonuses on top of what you already get from the broker itself. Let me know if you are interested.
 
Joseff said:
I would change your question: What kind of capital do I need?
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I think that the best capital we have is our knowledges and our head on our shoulders, if you have it will be enough for start trading!
 
Hey guys, registered a little while back but only posting now.

I've got a similar question, would I be risking too much at 2% gain per day if I've got $1million dollars of capital?
 
Yeah, sounded so stupid from hindsight, haha.

I guess I should word it with... is it realistic to have the 2% gain with that amount of capital?
 
Grev said:
Yeah, sounded so stupid from hindsight, haha.

I guess I should word it with... is it realistic to have the 2% gain with that amount of capital?
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2% are 2% it does not matter how much capital you are investing.

I only trade since 2 months on demo accounts with a conservative and prudent approach 2% should be possible no question about that, if not I might as well but my money in the bank...
 
Demo to learn at first. Then really small amount (say $100, many brokers offer it now). Then, as you become consistent, increase your account size.

Starting big has no sense, because chances that you blow your first account up are very high.
 
cornixforex said:
Demo to learn at first. Then really small amount (say $100, many brokers offer it now). Then, as you become consistent, increase your account size.

Starting big has no sense, because chances that you blow your first account up are very high.
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Do you know any brokers that offer small spreads on mini-accounts? All I have found had rather high spreads 2pips and more, not floating etc.
 
kingcontraryman said:
Do you know any brokers that offer small spreads on mini-accounts? All I have found had rather high spreads 2pips and more, not floating etc.
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Oanda comes to mind first. Very flexible position size and pretty tight spread most of the time (1.2 pips for EURUSD now as I am writing this post).
 
wow, not bad you can set the lot size yourself. pretty cool when planing to just push pennies around to test the strategies. ^^
 
kingcontraryman said:
wow, not bad you can set the lot size yourself. pretty cool when planing to just push pennies around to test the strategies. ^^
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Yup, ideal for learning. Your account can be real, but you risk literally pennies per trade, which allows to learn on real money, but without pain and grow your real account by compounding with maximal effectiveness if you are consistently profitable. :)

I use Oanda for over 5 years already and didn't experience any problems.
 
One thing that I have done is start a demo account and through meeting criteria I was able to earn a sponsorship to a real money account. So I got the practice and when I finally got the sponsorship I was ready to trade with real money.
 
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