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

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Babyblush

Active member
132 4
My opinion after three years of trading experience is that its the trading system which is more important than the amount of money which should be deposited to trade in the forex market.
 

malaguti

Senior member
2,275 428
My opinion after three years of trading experience is that its the trading system which is more important than the amount of money which should be deposited to trade in the forex market.
bloody great answer!!! You can start with £100 or you could start with £10,000 you will lose it or return on it. When I knew I had a system worth trading, I put down £300 and I'll be damned if I've ever topped it up since.
£300 was at the time, my maximum drawdown. I knew I would have been doing something wrong had I lost it. I didn't.

Of course I've blown a couple of accounts, but that was when I didn't have a system..not so now.
Sound advice Babyblush (y)
 
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small_beer

Junior member
19 2
My opinion after three years of trading experience is that its the trading system which is more important than the amount of money which should be deposited to trade in the forex market.
I don't think so. The more money you have, the more you can diversify, the more losses you can take without abandoning your trading.

More money means a greater staying power. A good trading system is a must, but systems fail, that's why you need a good cushion.
 

brettly

Junior member
15 1
I don't think so. The more money you have, the more you can diversify, the more losses you can take without abandoning your trading.

More money means a greater staying power. A good trading system is a must, but systems fail, that's why you need a good cushion.
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.
 

rob_klo

Junior member
25 1
How much? For starters, not less than 5 grand and you need to be prepared to lose it all without affecting your lifestyle. Otherwise, don't even think about it.

But I agree, more is better.
 

malaguti

Senior member
2,275 428
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

Active member
132 4
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.
 
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Splitlink

Legendary member
10,850 1,231
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.
 
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resistance

Member
89 1
$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

Active member
109 1
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

Junior member
20 2
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

Active member
238 0
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

Junior member
15 1
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

Member
74 2
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.
 
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