As you do due diligence to research about forex trading, one of the most important questions you have to answer is how much money you will need to get started. You can base your decision on how serious a trader you intend to become, how long you want to stay in the trading business and the platforms you want to use. Additionally, you will need to decide which platforms would best serve your objectives and whether forex social trading is something you would be interested in.
For the majority of novice traders, social trading presents irresistible opportunities that quickly get you started even when you have little experience on forex trading. For those interested in social trading, a good place to begin to gather the necessary information is InvestinGoal. This website will guide you through getting started with social trading, including helping you determine how much money you should add to your account to get started. All the same, here is a summary of the considerations you have to make to determine how much money you should start with in forex trading.
Practically all forex trading platforms will allow you to start trading with a virtual/demo account where you can experiment, take risks and try out strategies without spending real money. This means you can get started without any money. Nevertheless, you will still be required to deposit money into a real account for you to make money in forex trading.
These initial deposits vary from one platform to another and from one type of account to the next. Different accounts will require different amounts of deposits because they offer varied services. A good number of these accounts will require you to deposit a minimum of $200.
Don’t Be Oblivious to the Risks Involved
The rule of thumb in forex trading is: don’t do trades that use more money than you can essentially afford to lose. Take a close look at your personal finances and determine what you can and cannot afford to lose. That, coupled with your personal attitude towards risk will help you decide how much money you should get started with.
At the very beginning, it might serve you better to trade conservatively, resisting the urge to succumb to the idea of making a lot of money in a short time. This approach will somewhat shield you from distress and agony in the event that you lose your money. One common approach is this: don’t risk more than 2% of your total risk capital in a single trade.
Start Small and Grow
However strong the urge to go big at the initial stages of forex trading, don’t allow yourself to risk large sums of money. Wisdom lies in starting conservatively and using practical money management principles to grow, one trade at a time.
Using this approach, you can get started with as little as $200 and do small-sized trades until you discover certain trading strategies that work best for you. Remember to also put your heart and soul into it; those who make a living in forex trading will tell you that it takes a lot of hard work and unbending relentlessness to succeed.