With what amounts to rational to start trading on Forex

If you are a beginner, information on how much you can enter the Forex market will be relevant for you. At the moment, brokers have become less demanding, so the minimum deposit amount starts from 1 to 100 USD. We want to take off your pink glasses and say that the minimum deposit is often not enough and to raise large sums from the start will not work.

 

Regardless of the strategy you have chosen, you need to put about 5% of the deposit amount on an open transaction, only this practice can provide you real profit. Of course, it all depends on what profit you expect. The Internet is teeming with articles about how novice traders with a hundred dollars earned a thousand dollars a week - but this is just a myth (or major risks with a leverage).

 

Often, the increase in deposit from a successful transaction is about 12% -20% per month, taking into account high volatility and minimal risks. In order to earn from 5 to 15 dollars a day, the minimum deposit for Forex trading must be at least $ 500 (or even higher).

 

Your chosen strategy has a huge role in earning a primary income and an input deposit. If you work with stop-losses (which have a large volume and increase risks), the size of the initial deposit should be as large as possible (as far as personal finances allow you).

 

If you prefer to work according to the scalping strategy (these are short-term transactions with minimum stop loss and take profit), the minimum deposit should be at least 500 USD. In this case, the risk on the transaction will be about 10%, but the profit will be about 50% of the initial deposit. Do not forget that scalping is always a high risk, so you should be vigilant and ready to lose your deposit.

 

At the start, it is most rational to use various trading indicators, however, it is worthwhile to understand that working with them does not promise high profitability. When scalping, you need to start working with time frames (from M1 to M5) if you prefer to work with indicators, set time frames from M5 and go higher. Do not forget that the higher the time frame the more accurate entries and less market noise.

 

With indicator strategies, the deposit growth is 10-15, that is, for every 100 USD invested, it is necessary to use 0.01 lots (it turns out from 15 to 20 USD per month). This strategy significantly reduces the risks, but thanks to it, you can slowly but surely increase the starting deposit. The size of The optimal deposit for accessing Forex is about 1,000 USD.

 

Strategies based on fundamental and technical analysis are considered the most profitable, however - this is not easy, for their use it is necessary to be a guru in the field of economics. Indicator strategies have a big minus - they tend to be late in submitting data.

 

The most accurate trading signals are observed on daily charts, it will be convenient that the duration of the transaction can last from one day to a week, and market entries will vary from 4 to 7 per month. This suggests that the minimum deposit should start from 1,000 USD, but do not expect big profits. An introductory deposit for obtaining explicit income starts from 5,000 - 10,000 USD.

 

We understand that not everyone owns such large amounts, therefore, it is necessary to pay attention to the chosen strategy and be content with minimal income. Remember the importance of money management, because any non-compliance with it can lead to a rapid loss of finances and complete disappointment in the stock market. Start trading with a demo account, train, accumulate your starting capital, and only then start going to Forex.

28 May, 2020
137
views

Read more:

Trading for Muslims

16 October, 2020

The main thing about patterns

09 October, 2020

Binary options: basic

08 October, 2020

Traders and investors - what's the difference

24 September, 2020

How to make money on «black gold»

10 September, 2020

Choosing assets for trading

07 September, 2020

What is the essence of the volatility process

27 August, 2020

Currency pricing

30 July, 2020

Why bitcoin will replace Fiat money

23 July, 2020

Features of the Federal reserve system of the United States

15 July, 2020

Restrictions on Forex

10 July, 2020

Evolution of stock trading

02 July, 2020

Stock indices: the S&P 500, NASDAQ and AMEX

11 June, 2020

The Dow Jones Industrial Average: stock index first

25 June, 2020

How to trade during the crisis in the European Union

04 June, 2020

Commodity market: features of gold trading

18 June, 2020

How to identify market trends using fundamental analysis

25 March, 2020

Arrange a call