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How much money do you need to safely trade forex

  • #101
  • Aug 25, 2017 3:04am Aug 25, 2017 3:04am
Let me add this to the discussion. A lot of newbies start with account sizes that are too small anyway. You can't open a $100 account and expect that you will make great trading decisions 9/10 unless you are extremely disciplined. Most newbies open these small accounts with the mindset of I will take huge risks and gamble my way to 5k or 10k and then start trading safely once I get there, which is complete rubbish.
  • #102
  • Aug 25, 2017 3:17am Aug 25, 2017 3:17am
We can start trading as little as 10 usd with .01 Lot......but every thing depends on risk to reward ratio....
  • #103
  • Aug 25, 2017 4:48am Aug 25, 2017 4:48am
Hi Folks !
Regarding the minimum amount of capital needed I can add my 2 cents.
I started in 2006 with a 10.000 € live account and accumulated
it up to 250.000 € in 2015.
I have a full time job as a chemical engineer and only could trade
the longer time frames (4h, daily, weekly)
In the next 2 years I will relocate to Colombia because I found my loved one there ;-)
Based on the living expenses in Colombia (appr. 1500-2000 € a month) I'm ok with a
20% yearly return of my capital.
Before quitting your job you need a capital base for max. 24 months plus
your trading capital.
Example :
Monthly salary : 5000 $ x 24 months => 120.000 $
Trading Cpital : 120.000 $
Total minimum needed => appr. 250.000 $
The fact that I go to Colombia leaves some safety margin ;-)

Happy trading and good luck
  • #104
  • Aug 26, 2017 4:04pm Aug 26, 2017 4:04pm
Quoting Madinvestor
Let me add this to the discussion. A lot of newbies start with account sizes that are too small anyway. You can't open a $100 account and expect that you will make great trading decisions 9/10 unless you are extremely disciplined. Most newbies open these small accounts with the mindset of I will take huge risks and gamble my way to 5k or 10k and then start trading safely once I get there, which is complete rubbish.
right on the nail head
people leave, but this thread will go on for ever
  • #105
  • Aug 27, 2017 1:04am Aug 27, 2017 1:04am
Quoting charterjoe
{quote} Ive been saying this for years. All the folks who cant trade $100 without busting it, think they can survive with 10s of thousands. Never understood why that is.
I dont agree on it . Some strategies requires you to take incrimental profits on the way or to have a wide stops . i personally think we need an amount that we could trade with less risk and at the same time would enable us to complete use the strategy . I would say 2000$ is a good amont of money to trade forex safely .
>>> BE INTENTIONAL
  • #106
  • Aug 27, 2017 5:32am Aug 27, 2017 5:32am
for most people $0.00 is the safe amount!
I live entirely from the growth of my personal trading account
  • #107
  • Aug 27, 2017 2:52pm Aug 27, 2017 2:52pm
Quoting falkborn
{quote} I dont agree on it . Some strategies requires you to take incrimental profits on the way or to have a wide stops . i personally think we need an amount that we could trade with less risk and at the same time would enable us to complete use the strategy . I would say 2000$ is a good amont of money to trade forex safely .
thank you for your reply
people leave, but this thread will go on for ever
  • #108
  • Aug 27, 2017 8:58pm Aug 27, 2017 8:58pm
You can start of with as little as $500 or $1000 with this strategy,

Its the Trades dynamic index please see post link attached.

https://www.forexfactory.com/showthr...0#post10231290

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  • #109
  • Aug 27, 2017 10:20pm Aug 27, 2017 10:20pm
Money doesn't guarantees the safety, the safety is guaranteed by the knowledge and experience and skills that we gain to trade Forex.
  • #110
  • Aug 28, 2017 7:36am Aug 28, 2017 7:36am
Quoting falkborn
{quote} I dont agree on it . Some strategies requires you to take incrimental profits on the way or to have a wide stops . i personally think we need an amount that we could trade with less risk and at the same time would enable us to complete use the strategy . I would say 2000$ is a good amont of money to trade forex safely .
Still disagree. Forex, unlike other liquid markets allows you to trade in unit sizes so small that even with wide stops you can most likely find a position size that will accommodate even the smallest account. People just trade with too much size generally. A lot of traders vary their position size based on how they feel. I don't agree with that approach but it works for some. Mine is always a product of the risk I am taking which is always 1 - 2%.
  • #111
  • Aug 28, 2017 9:28am Aug 28, 2017 9:28am
Quoting Madinvestor
{quote} Still disagree. Forex, unlike other liquid markets allows you to trade in unit sizes so small that even with wide stops you can most likely find a position size that will accommodate even the smallest account. People just trade with too much size generally. A lot of traders vary their position size based on how they feel. I don't agree with that approach but it works for some. Mine is always a product of the risk I am taking which is always 1 - 2%.
The smallest unit size you can trade with Forex is .01 lots . Now there are many strategies out there which opens 3 / 5 positions per pair per trade . So , that is why i said its a matter of what strategy you follow then analyse if you are able to completely follow the money management rules of that system and risk just 1% of the equity .My system requires you to open 5 positions to trade per pair and the amount that i say to my students is always 2000$ .
>>> BE INTENTIONAL
  • #112
  • Aug 28, 2017 9:47am Aug 28, 2017 9:47am
Quoting falkborn
{quote} The smallest unit size you can trade with Forex is .01 lots . Now there are many strategies out there which opens 3 / 5 positions per pair per trade . So , that is why i said its a matter of what strategy you follow then analyse if you are able to completely follow the money management rules of that system and risk just 1% of the equity .My system requires you to open 5 positions to trade per pair and the amount that i say to my students is always 2000$ .

Why would you fix the amount at $2000? does it not depend on the size of your account?
I live entirely from the growth of my personal trading account
  • #113
  • Aug 28, 2017 10:48am Aug 28, 2017 10:48am
Sometimes usd500 is more than enough to begin with.

I am not trying here to brag or to tease or to sell anything.

Yes true
now how to trade with this small balance
well
hedging hog the daily chart
2 trades = one sell and one buy
close on profit open one with same size and same order
that's it
in few days your account will be doubled
come on
are you crazy
no i am not
but i always say to all traders :

The forex market is a crazy unpredictable space so you must be crazy and randomly trader

all of you out there ( and i am one of you too) like to analyse and predict and wow my prediction was great and on next day wtf i lost a perfect wining trade.

B4 few years back i was trading hedging hog strategy- i had built nice ea and posted it here... Few of you worked on it and only one trader use it and won and still wining by using that ea .

I decided to rebuild it

to develop this bad ea that only one profitable trader "was" using the original one

he sent me his account statement and he began with usd1,893 and now his account usd674,444....................................................!!!!

I was shocked

really

really

he stopped trading and he advised me.... Develop it and go on your life....


So yes in hedging hog many pairs you can begin with small and graw your account balance
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #114
  • Aug 28, 2017 10:48am Aug 28, 2017 10:48am
Quoting behof
Hi Folks ! Regarding the minimum amount of capital needed I can add my 2 cents. I started in 2006 with a 10.000 € live account and accumulated it up to 250.000 € in 2015. I have a full time job as a chemical engineer and only could trade the longer time frames (4h, daily, weekly) In the next 2 years I will relocate to Colombia because I found my loved one there ;-) Based on the living expenses in Colombia (appr. 1500-2000 € a month) I'm ok with a 20% yearly return of my capital. Before quitting your job you need a capital base for max. 24 months...

well done, what happened between 2015 and now?
I live entirely from the growth of my personal trading account
  • #115
  • Aug 28, 2017 10:51am Aug 28, 2017 10:51am
Attached Image (click to enlarge)
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GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #116
  • Aug 28, 2017 10:58am Aug 28, 2017 10:58am
WHY HEDGING HOG

SIMPLY BCZ THE BROKER IS EATING SMALL ACCOUNTS BY THE SHIT MARGIN

MOST OF YOU DO NOT CARE ABOUT MARGIN VALUE EITHER BCZ YOUR BALANCE IS TOO MUCH BIG OR SIMPLY YOU ARE DUMP

IF YOUR ACCOUNT LEVERAGE IS 1:500 THEN ON EACH 0.01 LOT IN ONE DIRECTION YOUR BROKER WILL REMOVE 2.5 USD FROM YOU EQUITY
AND IF YOUR ACCOUNT IS VERY SMALL THEN FEW TRADES AND WITH ANY SHOCK IN THE MARKET...... YOUR ACCOUNT WILL BEGIN SINGING MARGIN CALL MARGIN CALL

BUT ON HEDGING TRADING EVEN IF YOU MAKE SEVERAL TRADES, THE SELL WITH OPPOSITE WILL BE ZERO MARGIN

THE WHEN YOU TRADE

AFTER DOUBLING YOUR ACCOUNT , AND YOUR EQUITY MORE THAN BEGINNING........... GO AND CLOSE ALL TRADES AT ONE SHOT

YEA

THEN BEGIN THE CYCLE AGAIN

Attached Image (click to enlarge)
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GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #117
  • Aug 28, 2017 11:06am Aug 28, 2017 11:06am
I AM RUNNING MY DEVELOPED EA OF HEDGING HOG ON DEMO AND REAL ACCOUNTS FOR REAL TESTING

I LIKE TO BEGIN WITH 500 USD

THE RESULTS TILL NOW 3 TIMES THE BEGINNING ACCOUNT IN FEW DAYS USING ONE PAIR AND 0.03/0.06 TRADES ONLY

THE DEFECT IN THIS STRATEGY IS THE EQUITY

I HAD MANY DISCUSSIONS WITH ONE NON-POLITE TRADER B4 FEW YEARS BACK ABOUT EQUITY... BUT I KNOW THAT HE WAS RIGHT.....

EQUITY IS THE KEY

NEVERTHELESS WITH HEDGING HOG STRATEGY YOUR ACCOUNT EQUITY WILL INCREASE SLOWLY ... BUY AFTER FEW DAYS IF YOU BEEGIN SMALL IT WILL RECOVER AND INCREASE

I HAVE NOTICED THAT THE RATIO BETWEEN THE EQUITY AND THE ACCOUNT BALANCE AFTER FEW DAYS IS 1.5:4

THIS IS GOOD

AND YOU WILL NOT WIPE OUT YOUR ACCOUNT

Attached Image (click to enlarge)
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GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #118
  • Aug 28, 2017 11:12am Aug 28, 2017 11:12am
STILL SURVIVING THE HUGE SPIKES IN THE MARKET
THE HEDGING HOG CAN BE ON TF 4 HR AND TF 1 HR

DO NOT TRY IT ON LESS TIME FRAMES LESS THAN 1 HR

BEST IS ON DAILY


Attached Image (click to enlarge)
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GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #119
  • Aug 28, 2017 11:25am Aug 28, 2017 11:25am
And one last thing, b4 i did not use stop loss, but now as i have analysed that trader account statemnt, he was using "mental' stop loss
so i will add stop loss on negative under the ma or negative above the ma

it will increase the equity ... Let's try it.
GUYS BE AWARE FROM HUNTING YOUR STOP LOSSES BY YOUR BROKER & BY "GHOSTS"
  • #120
  • Aug 28, 2017 11:44am Aug 28, 2017 11:44am
0 - Zero - Nada - Null

The only way to safely trade forex as a retail customer is to do it with a demo account.

You can win by luck in a negative sum game with all odds against you, but there is no safe way to do it and you will one day run out of luck.
For 90% of all retailers this is just a question of a few months. The higher the leverage that faster you destroy your account. There is a reason why brokers offer such high leverages. An astonishing amount of retail "traders" is in constant denial of facts and keep losing, because the snake oil sellers deploy a several 100Mio Marketing Machine on full trottle to distort the real picture.

99.8% will pay a high price in the long run. The remaining 0.2% are getting smart enough to quit or switch to the other side of this business and sell shovels instead of digging for gold.
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