Recommended account size

[XxQuote399]

Hello,I would like to know what is th account size and leveraged recommended to trade Foreign Exchange

Whats the recommended leverage and total risk ?

Thanks

 

[Jack_Larkin]

Before you've developed and statically proven that your trade plan or discretionary trading methods result in a positive expectancy: $0 (demo) to $200

Once you've gotten a system/method that works for you, then you can ratchet up the risk and account size to what you're comfortable with.

As for leverage, that all depends on your trading style... Try to think of each trade on their own and where your stop will be placed, generally speaking, you don't want to risk a lot on each individual trade.. so if your stop is a given number of pips away, and you want to risk 1% of your capital, then adjust your leverage accordingly so it fits the trade.

 

[Enzzo]

Hello,I would like to know what is th account size and leveraged recommended to trade Foreign Exchange

Whats the recommended leverage and total risk ?

Thanks

I agree with Jack_Larkin...

There are a lot of different things to consider regarding account size and leverage....

If these are gonna be your first steps into this world, initially you wanna learn the game as much as you can.... understand the market you are gonna trade, what moves and/or affects it, which one are their main players and what they "like" to do to move it, understand the dynamics of the Forex market in general, understand money and risk management, etc, etc..... then you want to put an action plan together, a method to take advantage of it.... and then practice this plan and improve it little by little.....
Then, I'd go with a tiny account to trade pennies (I am not a big fan of demo accounts.... it is not that they are not useful at all, as each individual has his own point of view regarding this, but for me, they have never worked, as they take away a huge part of the game, which is "the real money" and the psychological part attached to it..) to get some confidence and eventually get the style of trading you are more comfortable with....

after all this, you will want to evaluate in a realistic way, blending your trading style, risk profile, etc,etc... what are your goals in trading financially speaking (like the income you would like to achieve in a monthly basis...).....

then, you will have a pretty accurate idea about the account size you need to meet that goal, and how much leverage you are comfortable to use to do so, looking at your trading style and stats...

Hope it helps you a little

 

[timsk]

Hi XxQuote399,
This FAQ should tell you most of what you need to know:
How Much Money Does a Trader Need To Start Trading?
Enjoy!
Tim.

 

[Jeff - Axiory]

Hello,I would like to know what is th account size and leveraged recommended to trade Foreign Exchange

Whats the recommended leverage and total risk ?

Thanks

Hi XxQuote399,

Some helpful answers here already. This is a slightly different approach but might give you some more options.

Everyone is different when it comes to opening an account and how much to deposit. The higher the leverage the higher the risk and the amount you invest depend on the minimum lot size.
So for example I would say if there is 0.01 lot possibility then $3.000 account might be enough but this can vary

However, there are other options if you have less experience or would like to invest less money.

1. You could follow another trader and his strategy such as a trader in Multitrader Axiory MultiTrader - Axiory, Forex Broker. This is where you can follow another trader's strategy. All the available traders results are published on our website for you to view and decide which one would be best for you.

2. Another popular way for people to learn to trade is to open two accounts. The first would be with a trader from our Multitrader platform while simultaneously self trading on a second account. This will let you follow the experienced trader alongside with using what you have learnt on your self trading account.

Have a look at Multitrader as there are many different strategies you can follow on there.

I hope this is of some help for you but if you do have any further questions then please don't hesitate to ask.


Kind regards,

Jeff.

 

[timsk]

Hi Jeff,
It all sounds too good to be true - and we all know what that usually means! Still, I'll keep an open mind.

Can you tell us please, if new and inexperienced Axiory clients follow an established swing trader who makes say, one trade per day on average, what percentage of the newbies maintain a positive equity curve on a consecutive weekly basis?
tim.

 

[The Leopard]

If you want to trade for a living, the bigger the better.

Obviously it depends on where you are, but if you are intending to live off your trading, I think at a minimum you should be using something like £100,000 or $150,000.

Take whatever you think you can make in a year and halve it. So if you think you can make 100%, assume you'll average 50%. That's £50,000 - less if you plan on growing the account.

I think a lot of people have unrealistic expectations about starting with 10 grand, running it up to a couple of hundred by compounding because they should be able to make a couple of percent a day, etc etc, then sitting back and collecting their 4 grand a day thereafter.

That kind of scenario is unlikely to happen.

 

[Jeff - Axiory]

Hi Jeff,
It all sounds too good to be true - and we all know what that usually means! Still, I'll keep an open mind.

Can you tell us please, if new and inexperienced Axiory clients follow an established swing trader who makes say, one trade per day on average, what percentage of the newbies maintain a positive equity curve on a consecutive weekly basis?
tim.

Hi Tim,

Very good question thanks.
Not an easy one to give an exact answer on though. All the traders information is outlined on the Multitaders page, and this gives you their history of trades and what you could expect from each trader.
Apologies for not giving an exact answer but what would you consider a newbie to be and how long would they be trading for?

Regards,

Jeff

 

[timsk]

Apologies for not giving an exact answer but what would you consider a newbie to be and how long would they be trading for?

Hi Jeff,
A newbie is someone who stumbles upon a forum like T2W and decides to give trading a go - without any real idea of what they're getting into. Their knowledge is virtually zero; ditto with their experience. An offer like Axiory's sounds great because, to those that don't know any better, it sounds like they can't go wrong. If you'd answered in reply to my question that everyone does very well, then there would be a stampede to the Axiory website to sign up - and I'd be at the head of the queue! Obviously, it ain't that simple, which means that not everyone does consistently well over time.

The point I'm really driving at is that the Axiory service - from what I understand of it - isn't really suitable for novices. Even the totally automated account mirroring option isn't appropriate because the newbie won't have a clue what to do when their account has a drawdown - which it will - sooner or later. Anyone who doesn't understand the basics of trading, especially risk and money management principles will, almost inevitably, come unstuck with a service like Axiory's. Given the comments by XxQuote399 in his/her opening post - s/he appears to fall into this category. On that basis, I think s/he would be unwise to go down this route - at least until s/he has enough knowledge to answer the question in the OP for themselves.
Tim.

 

[Jeff - Axiory]

Hi Jeff,
A newbie is someone who stumbles upon a forum like T2W and decides to give trading a go - without any real idea of what they're getting into. Their knowledge is virtually zero; ditto with their experience. An offer like Axiory's sounds great because, to those that don't know any better, it sounds like they can't go wrong. If you'd answered in reply to my question that everyone does very well, then there would be a stampede to the Axiory website to sign up - and I'd be at the head of the queue! Obviously, it ain't that simple, which means that not everyone does consistently well over time.

The point I'm really driving at is that the Axiory service - from what I understand of it - isn't really suitable for novices. Even the totally automated account mirroring option isn't appropriate because the newbie won't have a clue what to do when their account has a drawdown - which it will - sooner or later. Anyone who doesn't understand the basics of trading, especially risk and money management principles will, almost inevitably, come unstuck with a service like Axiory's. Given the comments by XxQuote399 in his/her opening post - s/he appears to fall into this category. On that basis, I think s/he would be unwise to go down this route - at least until s/he has enough knowledge to answer the question in the OP for themselves.
Tim.

Hi Tim,

Completely agree in regards to airing on the side of caution when starting to trade.
As we know, Forex is never 100% safe, and there has to be a degree of research and understanding before trading on any live account.
I hope I did not come across that everyone should invest their life savings, as this is completely the opposite of what we believe in.
Axiory has tried to implement such tools, that a novice investor can manage and understand when following a trader from either Trade Leaders or Multitrader.
An investor has the option to withdraw their money at any time, and we are currently putting notifications in place for an investor to have as much information as possible and they can then make a decision of how they would like to proceed.
At every step of the process, we constantly reiterating that investors should monitor the level of risk and not to risk money they don't have. I would also like to make it clear that Axiorys only objective is for their clients to be profitable, and that's what we are here for.
In regards to XxQuote399 looking at trading Forex, I would recommend he/she starting off slow, researching, practicing on a demo account and reading as much as possible. I was trying to make the point that there is other services in place rather than going from nothing to being a self trader overnight.

Kind regards,

Jeff

 

[ph_trader]

if you are new to forex and never traded on a live platform ever, I'd say trade a small account micro even 100-500 dollars or even less to test live trading coz it can be really different from demo specially execution. practice with, go for lower leverage untill you find your self ready fundamentally and emotionally, thts what i did when i joined hotforex and i did blow my first account, newbies tend to think they are ready but i was not best of luck mate

 

[XxQuote399]

hello,i ve been trading for about 2.5 years,fx 1 year but i took mainly as a learning process...

what would be the expected returns for small fx accounts ? I mean,will they be average as the big funds or a small amount can grow faster ?

thanks for all the answers

 

[samirdu16]

hello,i ve been trading for about 2.5 years,fx 1 year but i took mainly as a learning process...

what would be the expected returns for small fx accounts ? I mean,will they be average as the big funds or a small amount can grow faster ?

thanks for all the answers

hello, may I ask you which broker you are actually using, and about your question I believe it all depends on the brokers features and also how good is the trader and if still investing the profits or letting them grow with all the deposit

 

[XxQuote399]

im with alpari pro (currenex)

I have some doubts with the lenght of the trades,im mostly a swing trader with 3-6 months positions but theres a plenty of short term (10 days,5 days) trades but they enter into a trend and them turns to 3-6 months is there a way to treat differently the short and long term ?

 

[DMayzler]

Start small, and with low leverage. There are some brokers out there that have a minimum deposit and leverage as low as 1:50 Not sure if you can get these perks with brokers using MT4 but certainly with some web brokers like MahiFX you can get this.

 

[mingbao]

Before you've developed and statically proven that your trade plan or discretionary trading methods result in a positive expectancy: $0 (demo) to $200

Once you've gotten a system/method that works for you, then you can ratchet up the risk and account size to what you're comfortable with.

As for leverage, that all depends on your trading style... Try to think of each trade on their own and where your stop will be placed, generally speaking, you don't want to risk a lot on each individual trade.. so if your stop is a given number of pips away, and you want to risk 1% of your capital, then adjust your leverage accordingly so it fits the trade.

very good question and perfect answer by Jack