The key to being able to trade forex successfully – time and time again – is to realise that what really matters is your average trade forex trading ratio, i. e., all your profits versus all your losses. If you think about it, it shouldn’t take you very long to realise that as long as you’re incurring big losses, your profitability ratio is doomed to mediocrity. So, your first order of business should be to get your losses under control (or, better yet, off the map). The next order of business is trading only when you’re absolutely sure that you can make a profit. This means watching momentum like a hawk and only trading into rising momentum.
The size of your initial trade forex trading capital is not a pertinent trading issue. Anyone that can consistently make a profit isn’t going to have a small capital base for that long. Besides, now that there are forex brokers offering “micro” and “mini” accounts for as little as $1, capital requirements have ceased to become an issue.
Can You Trade Forex With A Small Amount Of Capital?
Compared to other capital markets, the forex industry is almost unique in how little money you actual need in order to get started. Over the last 10 years, there has been a plethora of brokers offering micro and mini accounts that have initial cash deposit requirements hovering close to $1. Of course, each of these brokers have certain other account requirements and for this reason alone, you need to take your time opening up an account, researching each firm quite thoroughly. A key issue is where the company’s headquarters is located. After all, you will want to get your money back and you need to make sure that you have sufficient regulatory support in that matter – before you invest anything.
Make Your Capital Stretch When You Trade Forex
The curious thing about most brokers is that they offer the same leverage ratios to holders of micro and mini accounts as they do to owners of “standard accounts” (e. g., 200:1). This means that even though you might only start with $50 in your account, you actually have the same chances of profitability as someone who has $50 million in an account. So, at the end of the day, what really matters is the quality of your trading strategy – not the initial size of your trading capital. Work on perfecting a consistently winning trading strategy – trying to cut any losses incurred, along the way, down to the bone – and you should have a very bright forex trading career.
Trade Forex To Make Your Little Capital Big
According to the “Triennial Central Bank Survey”, completed in April 2013 by the Bank For International Settlements, 24.1% of all daily trading flows are in the EUR/USD (making this currency pair the most widely trading on the planet). This means that, on most days, EUR/USD trading volumes will be high and spreads should be tight, allowing for very cost-effective trading to occur. Thus, using a 1-hour EUR/USD chart with a pair of weighted moving averages (“WMAs”) and an “Awesome Oscillator” (to help gauge the pace of momentum) might be an effective trading strategy. Set the first WMA to 8-periods; input the second WMA to 20-periods. Trade all crossovers – in the direction of the crossover – only if momentum is increasing.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS