start up capital?

[davidh1819]

Hi Everyone after reading many books on trading I finally started to open a few spread betting demo accounts and was very surprised by the point per point units they do in some cases 0.001 of a price is a point. The system I am butting together is a daily trend following system which would require me to have a position open for at leased a week or 2 in most cases. I initially planned to start an account with £1000 trading commodities unaware that most units are quoted in such small decimal places which would make my stop losses very close to the price as im not going to risk 2% or more of my account in one trade. It now seems that for my stem to work under these conditions I will have to start with at leased £5000 which I do have in the bank but I feel its to much to start off with

Any advice would be much appreciated

 

[shadowninja]

Is spreadbetting an option for you until you build a bigger account? Could be a hell of a lot cheaper than anything else.

 

[doberman]

with a finspreads acount you can place bets of 10p for the first 6 weeks

 

[meanreversion]

You're going to struggle with a daily trend system on that level of capital, for the reasons you've outlined. For example, you might take a position in GBP/USD with a stop 100 pips away.. let's say you do £1/point, then you're risking 10 pct of your capital right there.

Why don't you demo trade for 3 months and see how you get on. I know that seems a long time, but the markets will still be there when you're finished.

 

[davidh1819]

You're going to struggle with a daily trend system on that level of capital, for the reasons you've outlined. For example, you might take a position in GBP/USD with a stop 100 pips away.. let's say you do £1/point, then you're risking 10 pct of your capital right there.

Why don't you demo trade for 3 months and see how you get on. I know that seems a long time, but the markets will still be there when you're finished.

yes i am goint to demo trade for a lot longer than 3 month i think patience is very important i plan on trading mainly commodities not foreing exchange but i think £5000 is what i am going to need which is a lot if your new to the game