What is the amount you can start trading Forex? Basic rules for trading on a live account.
Many novice traders are wondering: what amount you can start trading Forex? This question is complex and requires a detailed approach. Today, most brokers do not place high demands on the required minimum deposit, usually ranges from 1 to 100 dollars. However, as practice shows, this amount is very often not enough for a profitable Forex trading. Regardless of what you use a strategy for each open transaction recommended set is not more than 5% of the size of the deposit. Only in this case, you can count on the fact that the investment will bring a profit over time. The second important issue is the amount of profit that you want to get away from their strategy. It should be noted that the history of how the trader earned $ 1,000 a month, having on his account $ 100, are either fictional or very risky. On average, any strategy provides an increase to the deposit from 15 to 20% per month at a moderate risk. So, if you want to earn $5-10 per day, the minimum deposit to trade Forex should be between $500 and above.
With what amount is best to start working on Forex?
Depending on the strategy used can also vary the size of the minimum deposit. The greater the volume of stop-loss, the higher the risk, and therefore requires a greater amount of the deposit. If you are using a trading strategy based on scalping, the recommended deposit must be at least $ 500. The essence of scalping is short on time execution of the transaction with a minimum stop-loss and take-profit. This makes it possible to increase the risk per trade to 10% and get a good profit to 50% per month. It should be borne in mind that scalping refers to high-risk strategies, and in the case of non-compliance with money management, and the recommended size of the deposit may cause it to sink.
Trading systems based on the use of different indicators are less risky, but at the same time suggests a small profit. If skalpingovye strategy applied on the timeframes M1 or M5, the indicator trading system is recommended by the M5 and above. Thus, the higher the timeframe, the less market noise and more accurate input. In contrast to the strategy of scalping Indicator give a small deposit growth - 10-15%. For every $ 100 it is recommended to use 0.01 lot that will be around $ 15-20 a month. This is a small but stable amount that can multiply by a proportional increase in the deposit. The best is the minimum deposit Forex, the amount of which is not less than 1000 dollars.
Considered the most profitable strategy, which are based on technical or fundamental analysis. If the indicator tend to lag behind the strategy, the trading system on technical analysis are the most accurate, but require specific knowledge. The most precise signals are observed on the daily charts, with the deal can last from one hour to several days, and the number of entries in the market is usually no more than 5-7 per month. Chance to get a stop-loss is markedly reduced, but increased the risk more than 5% is not recommended, so it's best to start with a minimum deposit of $ 1 000, but the best is a deposit of 5 000 - $ 10 000, which will get a good profit without being constantly in front of a computer monitor.
If you do not currently have the required amount, you should focus on sharpening the strategy on a demo account, you trade Forex with a deposit of $ 100 or less. Failure to money management can lead to a rapid draining of the deposit and the disappointment in trading on the foreign exchange market. It is better to spend this time with benefit by trading on a demo account, but accumulated enough money, go to a real trade.