I too agree. It's not wise to invest a lot of money right away, before you've found out just how well you do on a live account. It's just not the same, psychologically speaking, as when you trade on a demo account. Obviously the demo account is an absolutely mandatory step to trading with real money.
depends what your purpose is. If you are trying to gain experience when you are new to trading, make sure it is enough that if you blow up it is enough for you to feel the pain. starting with a small amount and blowing up and thinking "oh its only $1000 no biggie". but if your account was $10,000 and you blow up you may freak out.
I am not a fan of paper trading. you will learn more with real money on the line than you would without the risk of a real loss. when you are paper trading you never have to worry if your trades will make money so you can eat and pay the rent.
Once you factor in living expenses and life’s curve balls, it’s no wonder that most traders end up failing at their dream. It’s funny in a way because most people think of trading as a risky profession, as if we are all going out trying to feed our families by playing the lottery In actuality, day trading can be a serious business and would probably have a better brand if its participants had a better understanding of the financial requirements to play the game.
If this article wasn’t enough in terms of providing you with insight into your psyche, please visit our section on day trading psychology section of the site. Here you will find more articles that cover risk profiles and the emotions of trading.
I wouldn't start with such low capital. £50 is not enough to start making a sufficient amount of money. You might as well use a demo account if you're thinking of starting with £50. I would recommend to start with couple of hundreds, between £500-£1000.
This will give you something to dip your toes in the market if you're a beginner.
Start with an amount you can afford to lose. Something substantial enough so that if you lost it you be de disappointed but not enough so that it will bankrupt you. Trading comes down to dealing with your emotions and money is what drives the feelings that will ultimately make you or break you.
If you are worried about losing the money, the best way to earn whilst you learn is by following someone who is successful. Copy their trades, earn some money, learn how to be profitable then you can go it alone and have the confidence to invest whatever you are comfortable with.