Small Accounts <$5k

TODA.1

Newbie
6 0
Hello Everyone.
I would value your advice. Im currently looking for a market to trade, wether that be forex or penny stocks. With an account of c.$5k, is forex suitable to make (on average) good / or / better returns than penny stocks?

Value any advice.
PS I will reply to questions to aid clarification.
 

Steven2805

Junior member
32 4
Forget even asking which is better or more profitable..

The expected return is more to do with the individual person rather than the market, $5k should be alright for either but don't expect to walk away with it if your a beginner.

Good luck
 

tomorton

Legendary member
8,137 1,226
TODA.1 - You're UK-based so you can very readily access the market through spread betting with a small account. Use a reputable large firm, registered in the UK and regulated by the FCA.

They will offer spread bets on the most popular and liquid Forex curency pairs and stocks but not all offer SBs on penny stocks, not even if UK-listed: even if they do, the spreads between buy and sell prices plus the overnight charges if you hold long-term will probably kill your profitability.


At this stage, I've got to say chasing profit is not really your game, its managing risk to keep your account alive. If you can do that the profit will flow in anyway.

This advice is free. Note that fxmade2trade is a vendor so will probably be trying to sell you something (I've heard nothing bad about his services).
 
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tar

Legendary member
10,443 1,313
With an account of c.$5k, is forex suitable to make (on average) good / or / better returns than penny stocks?
No
 

richieforex

Member
60 5
You can make a good return on whatever money you invest! If you have a £100 account and get a return of £100 that is fantastic. The amount of money you invest has little impact on the return. You may make less because generally speaking you pay higher spreads/commissions on smaller accounts.
 

fxmade2trade

Active member
229 6
No I am not selling anything I rep a profitable trader that has a strategy you can Auto trade. I added vender because it is the right thing to do (given the options). On here, I state my personal opinions from a geopolitical perspective. If i can help I will
 

tomorton

Legendary member
8,137 1,226
No I am not selling anything I rep a profitable trader that has a strategy you can Auto trade. I added vender because it is the right thing to do (given the options). On here, I state my personal opinions from a geopolitical perspective. If i can help I will


Is the strategy free? If so, I am happy to withdraw my warning to TODA.1 (and other readers).
 

hatemypips

Established member
603 46
Hello Everyone.
I would value your advice. Im currently looking for a market to trade, wether that be forex or penny stocks. With an account of c.$5k, is forex suitable to make (on average) good / or / better returns than penny stocks?

Value any advice.
PS I will reply to questions to aid clarification.

Best advice is to diversify. Pick some good promising companies and tie up some money with them to the long haul (buy and hold strategy). The rest use to trade on currencies, they're more volatile so riskier. Pick some good broker with good reviews and start with small lots.Sure you will lost 200-300 bucks but will get experience worth of 2 years on demo..
Good luck
 

tomorton

Legendary member
8,137 1,226
Best advice is to diversify. Pick some good promising companies and tie up some money with them to the long haul (buy and hold strategy). The rest use to trade on currencies, they're more volatile so riskier. Pick some good broker with good reviews and start with small lots.Sure you will lost 200-300 bucks but will get experience worth of 2 years on demo..
Good luck


I hear lots of traders saying forex is more volatile than stocks, so as to be more risky. But what is the evidence?
e.g.
number of 5% or greater daily price changes in largest UK stock, Shell, in the 2000's = 29 up, 33 down:
number of 5% or greater daily price changes in largest forex pair, EUR/USD, in the 2000's = 0
 

hatemypips

Established member
603 46
I hear lots of traders saying forex is more volatile than stocks, so as to be more risky. But what is the evidence?
e.g.
number of 5% or greater daily price changes in largest UK stock, Shell, in the 2000's = 29 up, 33 down:
number of 5% or greater daily price changes in largest forex pair, EUR/USD, in the 2000's = 0

Can't say for the community but from my subjective experience I find Fx more volatile. I was in stocks with Ameritrade and in fx with Tickmill and find first carrying less risk but less profit for the same amount of capital. BTW do you consider the speed of price changes, I mean tick volume on both markets. It appears on stock market is quite slower..
 

barjon

Legendary member
10,604 1,742
I hear lots of traders saying forex is more volatile than stocks, so as to be more risky. But what is the evidence?
e.g.
number of 5% or greater daily price changes in largest UK stock, Shell, in the 2000's = 29 up, 33 down:
number of 5% or greater daily price changes in largest forex pair, EUR/USD, in the 2000's = 0

Well, fx moves too fast for my fingers - I guess it's because you are betting per 0.0001 that does it.
 
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fxstrategist

Established member
603 16
Depends on the leverage you want to use and the risk you want to take. With 5K or more, it doesnt really matter, you can either double your money or lose it all in a week or so. Then it is up to you.
 
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