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How much money do you need to safely trade forex

  • #81
  • Aug 22, 2017 12:35am Aug 22, 2017 12:35am
The minimum amount, if no use of leverage, is $10,000,000. However, I do recommend higher amounts.

Trading with a leverage? This is a very risky business. Leverage is what silently kills most traders. That is like 99.99% guarantee (for the bankers) the traders will surely fail. The trader does not even have to trade, for the bankers to know the money is no more trader's property... it is all just question of time now. But if you have the $10 mil and no leverage in use? Then it is a completely different picture...

Either way, with or without a leverage in use, a good strategy is a must have, before start trading the financial markets. So, the right order of the question have just changed:

What strategy I must trade to stay profitable?

Once you pocket the right answer - you would never ask how much money will one needs to start trading... cause you will already know the answer.
Maadik Hugiis. IQ 69.
  • #82
  • Aug 22, 2017 1:13am Aug 22, 2017 1:13am
Risk 1%% only....
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -299
  • #83
  • Aug 22, 2017 5:10am Aug 22, 2017 5:10am
Quoting Copernicus
{quote} Great stuff Dave. It is a tough game....not least because of the variation of returns. In terms of reliable cashflow......well let's not go there. Even the $800,000 minimum capital requirement (which was after a back-of -the-envelope calc).....is probably a bit optimistic......and worse still is that you need to get to a trading standard comparable with the pro's to maintain that capital base. I personally feel that unless you are approaching or in retirement with a large capital buffer or just a cashed up one of the lucky few...it is probably...
To kind of piggy back on your point here, yes the cash flows can be very uneven depending on the strategy. Which means you better have good liquidity to cover bills in the mean time if you are going to do it full time.
  • #84
  • Aug 24, 2017 8:02am Aug 24, 2017 8:02am
Quoting Samer1970
{quote} I TRANSLATE YOUR WORDS INTO EXCEL SHEET IF YOU ARE REALLY SERIOUS AND YOU WILL FOLLOW EXACTLY WHAT YOU HAVE WRITTEN THEN AFTER ONE WEEK ( 5 DAYS OF TRADING ) HERE ARE YOUR RESULTS {image}
Hi Samer,

You did not pay very close attention to what I wrote. I will be aiming for a weekly average return of 3 %, to clarify that means that it is unlikely that I will reach a similar percentage return each day. In addition I will not have such a strong compounding effect since I will look to increase the trade size after at least evry 10 % of gains.
  • #85
  • Aug 24, 2017 8:15am Aug 24, 2017 8:15am
Quoting cfta
{quote} Hi Samer, You did not pay very close attention to what I wrote. I will be aiming for a weekly average return of 3 %, to clarify that means that it is unlikely that I will reach a similar percentage return each day. In addition I will not have such a strong compounding effect since I will look to increase the trade size after at least evry 10 % of gains.
Honestly, IMO trying to force a certain weekly return upon the market is not a great idea. Again, just my opinion and experience.
  • #86
  • Aug 24, 2017 9:15am Aug 24, 2017 9:15am
Quoting Madinvestor
{quote} Honestly, IMO trying to force a certain weekly return upon the market is not a great idea. Again, just my opinion and experience.
I agree, that's why the key word here is average, the 3 % is a goal but sometimes the weekly result will be negative due to irratic market movement, other weeks it will be flat due to lack of volatility and some weeks it will be 10+ % thanks to great market conitions and a bit of luck.
  • #87
  • Aug 24, 2017 11:54am Aug 24, 2017 11:54am
One thing is certain: if you can't trade a small account safely, then you can't trade a big account safely.
  • #88
  • Aug 24, 2017 12:20pm Aug 24, 2017 12:20pm
Quoting KarlKraus
One thing is certain: if you can't trade a small account safely, then you can't trade a big account safely.

Ive been saying this for years. All the folks who cant trade $100 without busting it, think they can survive with 10s of thousands. Never understood why that is.
Thanks I do this often.
  • #89
  • Aug 24, 2017 12:27pm Aug 24, 2017 12:27pm
Quoting KarlKraus
One thing is certain: if you can't trade a small account safely, then you can't trade a big account safely.
beg to differ.
you have a minimum lot size, you cant really get around, and that define your ability to size your trade, and in turn your risk.
A. you have 100$ account, and the minimum lot size is 0.01 lot, 10 cents per pip
B. you have a 100k $ account, and the minimum lot size is still 0.01 lot, 10 cents per pip.
but with the larger account (B.) comes the flixibility.
you can have 1000x the position size to match the risk of account A, but you can have 1/1000th of the risk and anything between those numbers too.

brokers came up with the ever increasing leverage, like 1:1000, even 1:3000, or infinite leverage!!, to suck in hopeful average joe trader who is ignorant to the fact that his hands tied up, and his playing field largely limited.
there is always, always another trade!!
  • #90
  • Aug 24, 2017 12:57pm Aug 24, 2017 12:57pm
Quoting cfta
{quote} Hi Samer, You did not pay very close attention to what I wrote. I will be aiming for a weekly average return of 3 %, to clarify that means that it is unlikely that I will reach a similar percentage return each day. In addition I will not have such a strong compounding effect since I will look to increase the trade size after at least evry 10 % of gains.
good to see weekly progress, the excel sheet can be formated for any period
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #91
  • Aug 24, 2017 1:29pm Aug 24, 2017 1:29pm
Depends on how you trade. If you trade prudently and actually want to have a chance in profiting? $10K. If you trade like you are in a casino, you need infinite amount of capital just like when you visit a casino with the difference that in casinos, you at least would get nice food, good drinks, plushy hotels and acceptably good-looking women.
Make your losses in demo. Earn your profits live.
  • #92
  • Aug 24, 2017 4:48pm Aug 24, 2017 4:48pm
Quoting Samer1970
A DREAM {image} ===================================================================================== A REAL STORY {image} ===================================================================================== A VERY SAFE REAL STORY {image}
Do you mind if I ask your age?
  • #93
  • Aug 24, 2017 5:32pm Aug 24, 2017 5:32pm
Higher leverage will just accelerate what is going to happen anyway. If you mean by safe that you lose your money slower, yes perhaps lower leverage could be considered
Quote
safer.
You can safely lose your funds in a year instead of 2 months
The only safe thing you can do regarding trading would be to logoff FF and trading platform and never open those again. If you still want to continue, get used to taking risks, because that is what traders do. They take risks. They do not make safe decisions. Safety is for other jobs.
  • #94
  • Aug 24, 2017 5:59pm Aug 24, 2017 5:59pm
How much money do you need to safely trade forex ?

What in blazes are you talking about?
There is no "safe" way to trade forex.
The only "safe" way is to trade fake money on a demo account.
  • #95
  • Aug 24, 2017 7:08pm Aug 24, 2017 7:08pm
Quoting gravitist
How much money do you need to safely trade forex ? What in blazes are you talking about? There is no "safe" way to trade forex. The only "safe" way is to trade fake money on a demo account.
Attached Image
people leave, but this thread will go on for ever
  • #96
  • Aug 25, 2017 2:23am Aug 25, 2017 2:23am
You don't need to trade safely.

start small morons... risking 100% on a $200 account is better than risking 2% on a $10.000 account.
  • #97
  • Aug 25, 2017 2:31am Aug 25, 2017 2:31am
This thread question makes me cringe 7 times over and then some more, as if the deposit amount determines the risk of your strategy. (Sigh)
  • #98
  • Aug 25, 2017 3:02am Aug 25, 2017 3:02am
Quoting TwFXtrader
{quote} Do you mind if I ask your age?
10 years
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #99
  • Aug 25, 2017 3:22am Aug 25, 2017 3:22am
Quoting Aussi
{image}
Here the key :

100.000 usd = 10 lot
1.000 usd = 0,1 lot ( only 1 order buy or sell )
( Leverage 1:100 or 1:50 )
do not go further from this formular.

So you will have enought time to rethink and fix the problems or any mistake
  • #100
  • Aug 25, 2017 3:50am Aug 25, 2017 3:50am
How much money do you need to safely trade forex ??

As per my knowledge, if this is a question of newbie then i will suggest to open up a 50-100$ account type micro (1 Lot = 1,000) with leverage around 1:500 and risk 1-5 % max per trade till you gain more confidence on your trading skills knowledge and strategy with discipline. after good results on consistent basis, your mind will decide better and optimum dissension. the more you learn the safer it becomes.
In the court of lord, only love and devotion is counted...
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