This is probably the number one question asked in investing. When you are trying to get involved in any make money online scenario these are things you need to look at. Exactly how much money do I need to put in to get anything out of this. With Forex or trading in any market you are trying to learn a lifelong skill that can bring financial freedom to your world if done correctly.
What kind of money am I looking at investing in order to trade forex? Would you believe that you can get started trading forex for 100% absolutely free. All you need is a computer and internet connection. Yes, that is correct you can start with forex for free. Now are you aren’t going to become a millionaire overnight by not investing a dime of course not.
All you need to do is go to a broker you can find a list of brokers to use if you are in the U.S. by CLICKING HERE or you can simply google brokers. Then you will just need a FREE tradingview account and/or to download MT4. From there you can start trading any strategy you want with money you won’t lose.
Is this the best way to learn? It is the best way to learn what not to do that is for sure. At some point you will need to get serious about your wins and losses before going live. Even after going live for your first time you will want to use smaller lot sizes (1% risk) before getting up to 2-3% risk. If you are patient you are more likely to get there then if you just jump up to 4%+ risk and blow your account right away.
I was this way when I first got into forex. I learned a strategy using Harmonic Patterns very easy and it was a checklist of 5 or 6 different things depending on the pattern itself. So I was doing great. Then after couple weeks of trading, I saw a lot of trades that were still going the right direction without 2-3 of the rules. So my thoughts were why not just use 3 of the rules and go from there.
Sure enough, I actually won a few trades in a row well my account was growing but not fast enough. I got greedy and upped my lot size and I lost a couple trades in a row. So I started revenge trading and guess what before I knew it I blew over 40% of my account just like that in one day.
Lesson learned. Compound interest is about just looking at the risk to reward not the actual amount of money you are getting back. It is hard to do but it is a must. If you can get 3% a day on average it doesn’t matter the money just continue winning and you will get to that end goal.
Trading with demo money is a great thing to do at first. One area that can hinder your ability is most brokers have a LIVE server and a separate (slower) DEMO server. So do your research on that. It won’t make a huge difference if you are using larger stop losses but once you are looking for more precise entries it can hinder your trades. You can check out our list of BROKERS HERE. Again do your own research as well.
A lot of brokers will allow you to deposit as little as $10.00 and from there you can setup different trading accounts. So for me I have long term and short term trading accounts so I can keep my trading strategies separate. It works much better and once setup it doesn’t make much of a difference. I take most of my trades from my phone so it is just selecting the correct account number then placing the trade. I do all of my charting on tradingview.
Trade Forex With 50 to 100 Dollars
You can start with almost any amount in forex to trade. However, I would suggest starting out with 50 to 100 dollars at least because your mindset will probably get in the way if you don’t. You are more likely to start over leveraging starting at a smaller dollar amount. Let’s say you start with $10 well a 3% risk is $0.30 cents which is tough to do with micros lots that are around $0.10 cents per pip. But even at that when you risk 1:3 you are going to get back less than $1 dollar especially with any spreads which will cause people to get impatient most of the time.
By starting with an even $100.00 it makes your 1-3% risk a nice round number of $1-3 dollars then your reward also gets better. So if you take a 1:5 risk to reward trade and win you will get $5 bucks back. Analyzing trades once you get your VOT (volume of trades) in won’t take but a few minutes if you are trading a simple strategy. So if it takes you 15 minutes to take a $5 trade that is already up to $20 bucks an hour you have the potential to earn for your time. Again I know I said not to look at the money but your mindset, in the beginning, will more than likely need this incentive until you can just focus on the trade and know you are getting that 1-3% return.
With $50.00 it is the same and you can still use micro lots safely with most trading strategies except if you are using something like a 100 pip stop loss. This is where you may want to look into getting into scalping which is what a lot of newer traders do until they can build up there capital. One newer paradigm strategy I have used and still do at times is the QuickFire Strategy using the Harmonic Scanner. The free strategy I give away you can also use on smaller time frames for scalping which means a smaller stop loss as well.
Related Questions (From Our Readers):
Is It Easy To Trade Forex?
It can be easy trading yes. The free strategy you can have is a free strategy it is literally looking for a flip on the indicators and there is even a free way to get alerts. So you get the alert set your stop loss and click buy/sell and you are in. It isn’t usually the actual trading that is hard it is the mental side of trading that takes professional traders a long time to build up.
The other thing is learning the ins and outs of trading can be difficult to find the correct information on youtube or for free on the internet. After all who do you believe? I started out searching youtube when I first looked at trading forex there was some good information but again it is tough to sort out who to follow. Then in the back of your mind you start looking for someone else then start following them just like shiny object syndrome. The best thing you can do is get a strategy going that you like maybe a short-term scalper strategy along with a longer-term strategy. That way you can get some time in trading no matter what.
How Much Do You Make With Forex Trading?
Sky is the limit with forex. I won’t give you an exact number but I do make a full time living trading and I also do SEO work on the side as well. I walked away from my job to take everything to the next level 6 months before my daughter was born so I could be a stay at home dad. I have completely replaced my job and hope to be in the millionaire club in the not so far future. My wife does still work so that may be a goal as well although she does like her job, but she does want to get back into barrel racing so I might just have to make her do that full time as well.
How Much Do Forex Traders Make A Day?
This is where a trading plan comes into effect. Most traders I know go for 1-5% a day on average. So what this means that if you make a huge trade of 10% ROI you can take the rest of the week or month off depending on your trading plan. When traders become professional traders you learn to take a break while you are ahead.
The 3 Professional Traders I referenced above that I follow probably make between $20-50k a day on average. I say on average because you aren’t going to make a certain amount everyday. You are going to have losing days and days where there just aren’t any trades. Professional traders will take a perfect setup and still lose at times. But if the setup isn’t perfect that also won’t take the trades.
Can I Start Trading Forex With $1?
Short answer yes. You will likely have to deposit at least $10.00 at first but you can setup a sub account with your broker for $1 then just use micro lots at 10 cents a pop.
The reason why I would want to start with more is because a lot of brokers depending on where you live you may need to deposit via bitcoin currency and there is some fees with that. Or there may be a minimum wire amount you need to send and your bank may charge a wire fee. These are questions you can ask your broker which a lot of the time will have a live chat option as you visit their site. Some brokers do just let you deposit via a debit card with no fees.
One of the brokers I use now actually will refund you the wire fee into your trading account which can run from $10-25.