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How much do I Need to start trading?? I was shocked when I saw this. Please reply

  • Post #1
  • Quote
  • First Post: Dec 15, 2006 7:14pm Dec 15, 2006 7:14pm
I am learning trading. I just read this from a forex tutorial and I am shock. If this is true, so only peopel with large somme of money can trade forex??
Please read bellow:
I you want o know where, I can provide a ling to this information:
No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works.

Don’t set yourself up to fail.

We recommend that you have at least have $100,000 of trading capital before opening a “standard account”, $10,000 for a “mini account”, or $1,000 for a “micro account”.

So if you only have $60,000, open a “mini account. If you only have $8,000, open a “micro” account. If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”.
stick with oanda and open your account with 100 bucks..Then learn trading!

eazy
Working towards CME membership
At the top of this Beginners Forum is a 'Sticky' called "Money Management". Study that thread until you REALLY understand what it is trying to teach. You will then understand the reasoning behind the advice you were given concerning acct. size.
Quoting abgcompu
I am learning trading. I just read this from a forex tutorial and I am shock. If this is true, so only peopel with large somme of money can trade forex??
Please read bellow:
I you want o know where, I can provide a ling to this information:
No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works.

Don’t set yourself up to fail.

We recommend that you have at least have $100,000 of trading capital before opening a “standard account”, $10,000 for a “mini account”, or $1,000 for a “micro account”.

So if you only have $60,000, open a “mini account. If you only have $8,000, open a “micro” account. If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”.
In trading, there is no bullshit. You either make money or you don't.
Quoting mrgreen
At the top of this Beginners Forum is a 'Sticky' called "Money Management". Study that thread until you REALLY understand what it is trying to teach. You will then understand the reasoning behind the advice you were given concerning acct. size.
Ok.
I am going there now.
Thanks
Demo Account vs Micro Account for the beginner.

Demo Account to learn how everything works: the dealing desk operations, spreads, price action, time factors, news, indicators, drawing tools, general mechanics of trading, etc,, etc...

Micro Account to actually try trading with real money... albeit fractions of the dollar. Preservation of Capital is rule # 1 ( kind of like the Hippocratic Oath doctor's take, First -- " do no harm". )
Learn how it feels to win and lose. Learn the flexibility to add to and scale out of positions. ' There's nothing like the real thing, baby'.

Lou
...what do you mean scale out of positions?






Quoting Lou
Demo Account vs Micro Account for the beginner.
Demo Account to learn how everything works: the dealing desk operations, spreads, price action, time factors, news, indicators, drawing tools, general mechanics of trading, etc,, etc...

Micro Account to actually try trading with real money... albeit fractions of the dollar. Preservation of Capital is rule # 1 ( kind of like the Hippocratic Oath doctor's take, First -- " do no harm". )
Learn how it feels to win and lose. Learn the flexibility to add to and scale out of positions. ' There's nothing like the real thing, baby'.

Lou
Quoting ANALEX
...what do you mean scale out of positions?
Scaling in and out means buying different quantities at different prices and scaling out means selling different quantities at different prices...Most large traders & market makers always use scaling in and out because they can't go long with their entire position at once or else the market will spike immediately and also because they want to accumulate their entire position at a good average price at the end of the day....


Thanks,

Nader
Great explanation, Nader.

Thanks.

Lou
  • Post #9
  • Quote
  • Last Post: Dec 18, 2006 12:21am Dec 18, 2006 12:21am
Quoting abgcompu
I am learning trading. I just read this from a forex tutorial and I am shock. If this is true, so only peopel with large somme of money can trade forex??
Please read bellow:
I you want o know where, I can provide a ling to this information:
No matter what the forex brokers tell you, don’t ever open a “standard account” with just $2,000 or a “mini account” with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works.

Don’t set yourself up to fail.

We recommend that you have at least have $100,000 of trading capital before opening a “standard account”, $10,000 for a “mini account”, or $1,000 for a “micro account”.

So if you only have $60,000, open a “mini account. If you only have $8,000, open a “micro” account. If you only have $250, open a “demo account” and stick with it until you come up with the additional $750, then open a “micro account”.

I am in total agreement with that tutorial, cos it is the plain truth. It took me a long time to realise that fact, so my friend listen up, and don't be in shock.
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