When starting out live, smaller or larger better? | Forex Factory

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When starting out live, smaller or larger better?

  • #1
  • First Post: Sep 23, 2007 6:42pm Sep 23, 2007 6:42pm
When i eventually start off with a live account what is the best way to begin, with the largest account balance i can muster or say just throw a grand in?

I hear alot of disagreement in this area, some think being under capitalized is the worst thing for a newbie and that in theory everyone should start with alteast 25-50k. Others say just put in a very small amount maybe because you are expected to lose it right off or perhaps to put you mentally at ease more.

Anyone with experience live care to post their thoughts?
  • #2
  • Sep 23, 2007 6:44pm Sep 23, 2007 6:44pm
Start small. Your first several months trading live are about building confidence in your system, not doubling your account. The more seriously you treat your small account the better you'll be prepared for a larger one later.
  • #3
  • Sep 23, 2007 9:04pm Sep 23, 2007 9:04pm
Phil is dead right on this one.

Here is my suggestion, for what it's worth.

Try starting out with a little mini-account. Maybe something like $500. Once you get comfortable, (i.e. consistently profitable) add a few hundred to it.

As time goes on, perhaps you will only add a few bucks here and there. After a while, your returns will outweigh your deposits.

Clockwork71
  • #4
  • Sep 23, 2007 9:31pm Sep 23, 2007 9:31pm
Quoting saskgui
When i eventually start off with a live account what is the best way to begin, with the largest account balance i can muster or say just throw a grand in?

I hear alot of disagreement in this area, some think being under capitalized is the worst thing for a newbie and that in theory everyone should start with alteast 25-50k. Others say just put in a very small amount maybe because you are expected to lose it right off or perhaps to put you mentally at ease more.

Anyone with experience live care to post their thoughts?
I would suggest you ask yourself this question when you Understand what the Bold above Means.
  • #5
  • Sep 23, 2007 9:57pm Sep 23, 2007 9:57pm
Quoting Bemac
I would suggest you ask yourself this question when you Understand what the Bold above Means.
If you are trading non-lots (pennies per pip) $500.00 is plenty to start with.
Binary Options Trader
  • #6
  • Sep 23, 2007 11:25pm Sep 23, 2007 11:25pm
Thx for the input guys. Since i am leaning towards Onada due to variable lot size a small amount does sound like a workable idea. The idea of rewarding consistency with additional money sounds better than blowing up a larger account due to lack of discipline and if the small account goes down the tubes it is time to revaulate my psychology anyway.
  • #7
  • Sep 24, 2007 12:27am Sep 24, 2007 12:27am
Oanda is a very good place to startout, small order size and intrest paid on your positions as well as your account balance.
Thats where I started and I am still with them, just wish they had trailing stops, other than that no complaints.
Same Whore .... Different Dress
  • #8
  • Sep 24, 2007 12:58am Sep 24, 2007 12:58am
Quoting clockwork71
Phil is dead right on this one.

Here is my suggestion, for what it's worth.

Try starting out with a little mini-account. Maybe something like $500. Once you get comfortable, (i.e. consistently profitable) add a few hundred to it.

As time goes on, perhaps you will only add a few bucks here and there. After a while, your returns will outweigh your deposits.

Clockwork71
a 500 dollars account would likely be a micro account unless he's on heavy leverage...saskgui, that should be a good place to start. You'll double it in no time and then bust it in a few seconds, these things happen. The sooner you bust it the faster you get the picture. after a few rounds of busting and a a few grands worth of TT-ing money, you should be able to think properly.

regards
jest
  • #9
  • Sep 24, 2007 9:58am Sep 24, 2007 9:58am
Start small. Micro account 0.01 lot or even less with Oanda with which you can trade whatever lot size you want (even 50$ if you want, that is 0.0005 lot )
  • #10
  • Edited 11:11am Sep 24, 2007 10:41am | Edited 11:11am
Quoting saskgui
When i eventually start off with a live account what is the best way to begin, with the largest account balance i can muster or say just throw a grand in?

I hear alot of disagreement in this area, some think being under capitalized is the worst thing for a newbie and that in theory everyone should start with alteast 25-50k. Others say just put in a very small amount maybe because you are expected to lose it right off or perhaps to put you mentally at ease more.

Anyone with experience live care to post their thoughts?
There's lots of good advice above, just to add a little (good or bad) - when you are investing, it's a bad idea to put more than 10-20% of your capital into risky ventures. That holds pretty much for small and large....If you are starting out in FX, and have 1000$ and no other investments, put 800-900$ into a savings account and 100-200$ into something like Oanda, that will let you move forward at your own speed, trading micro lots. Everytime you double your account, move half of the profit out, try upping your trading level, but always make sure to put a low maximum rate on how much money you will be willing to bleed back into the account if you are not profitable. The main idea is to survive and protect your capital while you learn the ropes - that way you won't wind up hanging yourself with them
  • #11
  • Sep 24, 2007 11:15am Sep 24, 2007 11:15am
Quoting saskgui
Thx for the input guys. Since i am leaning towards Onada due to variable lot size a small amount does sound like a workable idea. The idea of rewarding consistency with additional money sounds better than blowing up a larger account due to lack of discipline and if the small account goes down the tubes it is time to revaulate my psychology anyway.
Don't overlook Interbank FX as well, they offer nano-lots on their mini accounts too.

Unfortunately, you will one day have to lose some big money to really understand the Forex. It's just like if you want to become a boxer, you have to get hit in the face, really hard, at least once, before you can really understand what it's all about.
Binary Options Trader
  • #12
  • Last Post: Sep 24, 2007 1:33pm Sep 24, 2007 1:33pm
Melpheos I was going micro either way however now i am thinking starting with 1k at Onada with 10c pips as it should work out fine with my system. There will be times that i will have more than one trade open so if i am not to exceed my 1% rule i am thinking 500 me be a little small .

Good advice Halifax on not risking my whole portfolio in forex. Another reason to start small.

Yoda there is much more to losing than just money.
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