One of the most attractive things about forex trading is that it can be so profitable that you don’t need massive amounts of capital to invest, you can start from a few hundred dollars, but a mistake new traders often make is to be under capitalized. Making 100% profit on $1,000 in a year is ok, you end up with an extra $1,000, but making 100% on $10,000, then you’re heading into a living wage territory. In some countries that could let you live like a king, but in most developed countries that could have quite an impact on your living standards, an extra $10,000 in your bank account every year is not to be sniffed at.
Initial Forex Investment.
Start with $100 in your account, there are plenty of brokers out there that you can open an account with small amounts, this is the prudent thing to do, you don’t want to dive into forex trading with $5,000 and promptly lose it. However you don’t want to be expecting to make a fortune from such a small investment, it’s so easy to see the potential of making 100% a month, and start you on the road to thinking I can double my money every month and I’ll soon be into the thousands. This expectation leads you to over trading and trying to take short cuts which just don’t work in forex, quite the contrary in fact it can lead you on a continuous path of over trading and loosing money. It is much better to build up a reasonable amount of capital by other means, through saving or working, it will be a much quicker and easier process than trying to make silly percentages from a small amount of capital.
Start Trading a Forex Account with $5,000 – $10,000.
$5,000 to $10,000 is a reasonable sum depending on your circumstances, you need an amount that will make it at least worth while, it may be ok trading with a few dollars to test the water and get the feel for forex, but once you have a working strategy you need a boost of capital so you can make a tangible profit. If you’ve got $100 in your account and even if you only trade part time 6 or 7 hours a week, you can’t realistically make more than $10 a week at most, you’d be better off working at McDonalds for $10 an hour and putting that money into your trading capital. Quick results will come occasionally in forex, but they are very much the exception rather than the rule, so be patient, make steady profits and take those exceptional trades as a bonus rather than your income.
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