How much money do I need to start trading?

[dbphoenix]

Good advice thanks.
I'm not experienced to the world of trading. And I have use only demo account for practice. This is another example of losing money due to depositing a small amount to trade and using big leverage.

Whether your account is large or small is not as important as understanding what you're doing. A large account provides false security, and as often as not encourages the trader to hold onto losers and even double down, eventually wiping out the acccount just as surely as trading a small account with too much leverage.

Study. Practice. Put together a consistently-profitable trading plan. Then you will be at least marginally prepared to begin trading with real money. Practicing without such a plan has no purpose.

Db

 

[Revorocks]

Whether your account is large or small is not as important as understanding what you're doing. A large account provides false security, and as often as not encourages the trader to hold onto losers and even double down, eventually wiping out the acccount just as surely as trading a small account with too much leverage.

Study. Practice. Put together a consistently-profitable trading plan. Then you will be at least marginally prepared to begin trading with real money. Practicing without such a plan has no purpose.

Db

Well said, a trading plan is extremely important IMO.

Another thing about account size, smaller accounts can be harder to trade carefully, especially if you don't care about the amounts. It doesn't feel meaningful to be trading a £1000 account, making £30, £60 here and there etc. This can make you prone to risking more, or looking for higher returns using more leverage, right stops etc, often a recipe for disaster.
Once you find profitability you need to just be patient and build your account over time.
Just scale it up, as it grows the % returns should be the same, just the £ amounts increase as your account grows.

Obviously you have emotions to deal with as it grows but that's a different topic.

 

[zaysev36]

Well said, a trading plan is extremely important IMO.

Another thing about account size, smaller accounts can be harder to trade carefully, especially if you don't care about the amounts. It doesn't feel meaningful to be trading a £1000 account, making £30, £60 here and there etc. This can make you prone to risking more, or looking for higher returns using more leverage, right stops etc, often a recipe for disaster.
Once you find profitability you need to just be patient and build your account over time.
Just scale it up, as it grows the % returns should be the same, just the £ amounts increase as your account grows.

Obviously you have emotions to deal with as it grows but that's a different topic.

But the bigger the account, the more ability you have to play on sudden opportunities. Which results in larger profits from volatilities.

 

[forker]

First to say, I am a total beginner watching Online Trading Academy DVDs to get educated and inspired. What is the minimum amount of money to start day trading? I live in a poor country so 200-300 $ a month in profit would be great to me!

You can do that with 300 in your account but you will only have 1 open position at a time on it unless you subdivide into smaller trade sizes.

 

[forker]

And for the record I know this post is old

 

[dbphoenix]

But the bigger the account, the more ability you have to play on sudden opportunities. Which results in larger profits from volatilities.

Or larger losses.

Doesn't anybody think about risk anymore?

 

[zaysev36]

Or larger losses.

Doesn't anybody think about risk anymore?

If one thinks about risk much, he would decide his best option is to not trade at all We should always aim for best results, shouldn't we?

 

[timsk]

Hi zaysev36,

If one thinks about risk much, he would decide his best option is to not trade at all

The only people who reach that conclusion are those who aren't prepared to take any risk - no matter how small. People who fall into this category are those who only ever put their money in a low interest bank or building society account and, even then, lose sleep worrying about it. Trading most definitely isn't the game for them.

If you're going to trade, then you absolutely have to be prepared to accept risk. What matters is that you do everything in your power to minimize it and to quantify it. In other words, the losses on losing trades are as small as possible and don't exceed a predetermined maximum. The bottom line is that trading is all about risk, so you can't really think about it too much. And ignoring it is a sure fire recipe for disaster.

We should always aim for best results, shouldn't we?

Well, yes, in as much as I've never come across a trader who aims for the worst results! What matters though is that your trading is conducted within the structure of a well researched and tested plan, as opposed to blindly hoping for the best results and thinking that a positive mental attitude will win the day.
Tim.

 

[aag100]

i know this post is old but still a very relevant question.
Who ever asks it will most likely be a beginner to the game and probably with very little knowledge of it.
So i would say start with as little as possible,what you can afford to lose.And if you manage to stick around for a few years you will learn how much you need.
.........my jade stone moment.

 

[NVP]

The % allocation of funds and money management rules never changes with size of capital available........if you are dumb enough to over leverage or not use the correct stake percentages per!trade then you will!lose!whatever you have over time

From 1 dollar to ten million dollars.......you will lose it

N

There's a great old trading joke

How,do,you get a million dollar trading account in a year ?........

...answer

Give a dumb trader 10 million dollars in his account a few months before the deadline

 

[zaysev36]

There's a great old trading joke

How,do,you get a million dollar trading account in a year ?........

...answer

Give a dumb trader 10 million dollars in his account a few months before the deadline

Nicely said It's not about how much money you need to start trading, it's about how much money you are ready to loose learning.

 

[NVP]

the only other thing I would mention about capital base sizes is a simple one ...the more you leave in a brokers account the more you will lose if they go bankrupt ...........

optimise your accounts by keeping them to minimum whilst also allowing you to leverage to levels required and stakes per trade needed .........

you can do pretty well only carrying $5-10k max in 1 account .......... and have a few if needed ...............unless you are going into big school $75+ per pip you don't need t ocarry much (based on conditions of broker and relationship) ..........$100-200+ per pip they may start to want a few bucks in the tin more but hey its up you

this is all based on scalping though ............I don't trade any other way these days

N

 

[radex78]

Nicely said It's not about how much money you need to start trading, it's about how much money you are ready to loose learning.

Yes just spent money that afford to lose, one advantage forex right now broker already offer small as initial capital even use one dollar also already can start in real account, but maybe use one hundred dollar is good for learning in real account

 

[zaysev36]

Yes just spent money that afford to lose, one advantage forex right now broker already offer small as initial capital even use one dollar also already can start in real account, but maybe use one hundred dollar is good for learning in real account

You sound like a Forex booster to me Couldn't you at least be more subtle with it?

 

[Mr Sept]

....MORE, than whatever you have.


:smart: