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Thread: How Much Capital Do You Need For Forex Trading?

  1. #1
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    Default How Much Capital Do You Need For Forex Trading?

    It takes money to make money. You need trading capital. Everyone knows that, but how much does one need to get started in forex trading? The answer largely depends on how you are going to approach your new start-up business.

    First, consider how you are going to be educated. There are many different approaches in learning how to trade: classes, mentors, on your own, or any combination of the three.

    While there are many classes and mentors out there willing to teach forex trading, most will charge a fee. The benefit of this route is that a well-taught class or great mentor can significantly shorten your learning curve and get you on your way to profitability in a much shorter amount of time compared to doing everything yourself.

    The downside is the upfront cost for these programs, which can range from a few hundred to a few thousand dollars, depending on which program you go with. For many of those new to trading, the resources (money) required to purchase these programs are not available.

    For those of you unable or unwilling to pony up the cash for education, the good news is that most of the information you need to get started can be found for FREE on the internet through forums, brokers, articles and websites like BabyPips.com. We should all thank Al Gore for inventing the Internet. Without him, there would be no BabyPips.com.

    As long as you are disciplined and laser-focused on learning the markets, your chances of success increase exponentially. You have to be a gung ho student. If not, youíll end up in the poor house.

    Second, is your approach to the markets going to require special tools such as news feeds or charting software? As a technical forex trader, most of the charting packages that come with your brokerís trading platform are sufficient (and some are actually quite good).

    For those who need special indicators or better functionality, higher-end charting software can start at around $100 per month.

    Maybe youíre a fundamental trader and you need the news the millisecond it is released, or even before it happens (wouldnít that be nice!).

    Well, instantaneous and accurate news feeds run from a few hundred to a few thousand dollars per month. Again, you can get a complimentary news feed from your forex broker, but for some, that extra second or two can be the difference between a profitable or unprofitable trade.

    Finally, you need money/capital/funds to trade. Retail forex brokers offer minimum account deposits as low as $25, but that doesnít mean you should enter immediately! This is a capitalization mistake, which often leads to failure. Losses are part of the game, and you need to have enough capital to weather these losses.

    So how much trading capital do you need? Letís be honest here, if youíre consistent and you practice proper risk management techniques, then you can probably start off with $50k to $100k in trading capital.

    Itís common knowledge that most businesses fail due to undercapitalization, which is especially true in the forex trading business.

    So if you are unable to start with a large amount of trading capital that you can afford to lose, be patient, save up and learn to trade the right way until you are financially ready.

  2. #2
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    We can use small amount for trading here. Leverage in a broke can be maximized for trading. Even in TenkoFx, trader can use 10 USD for trading in forex. And with that amount,we can learn more about forex, how to minimize the risk in forex, manage account and also psychology

  3. #3
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    everyone has massive chances in getting good profits because of the high rate of fluctuation. Traders only have to follow the strategy precisely to avoid any risk of losing too much.In essence, a trading plan gives a forex trader all the information they need to initiate a trade, liquidate the trade for a profit or take a small loss if the trader was in error. a trade management is the key to success, for 1:500 leverage ratio upon my Tickmill ECN account, I use 2% risk for each trade, in other words I use 0.01 lot size for each 500 deposit amount. which appear a stress free trading setup for daily uses.

  4. #4

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    i think we can put our saving on forex market. we will trade with good emotion. we do not have any pressure. we will make money better. and we can use forex bonus we will have more money in account. we will have higher profit with the same risky.

  5. #5
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    I know some traders who started with 200$ and after a year of trading had about 1000$. I guess it's a good outcome for newbies. How much money do you need is a difficult question anyway, because so brokers don't allow you to trade less then 1000$ initial deposit. So, choose a broker which requires small initial deposit (micro deposit) or doesn't require it at all (like freshforex) and start with the amount of money comfortable for you.

  6. #6

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    now i suggest you need 500$ in your account. if you want earn 200-300$ per month. it is great for you. each trader should be great. we can earn more money when we encrease our money in account. when we need more money for expense we need more money in account

  7. #7
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    I think it is upto trader himself that how much money he can use in Forex trading. I think you can start trading with small amount. Also you can start trading with Demo account to learn the basics of forex and then trade with real account.

  8. #8

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    i think we can make more money with it. each trader should be get the capital with free money. we don't put all our money in this market we can get high pressure in trade.

  9. #9
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    Most brokers allow you to open 3 types of accounts-Mini, Standard and premium
    With mini accounts you can open an account for as small as capital as $250.Other accounts need heavier initial investment.

  10. #10
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    Thanks for this useful information. It is very much helpful for the beginners who wish to gain proper amount of knowledge.

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