Is $600 enough to start trading the forex?
Question:
Answer:
With minis ($10,000 lots) you could trade with a $600 stake.
Based on your situation, I'm concerned about whether you really realize what you're getting yourself into. Forex is one of the more risky plays out there and despite all the promotions about Freedom Rocks (a multi-level marketing scheme) being safe and how easy it is to have money coming in daily, it's still very risky and people regularly lose their money using it.
Here is a quote from someboy posting on the Investor Village Forex Message board:
"Freedom 'Rocked"
Both FR trading accounts have been liquidated by the broker due to insuffucient equity.
So much for the "set-it and forget-it" theory of currency trading."
So I would suggest that as a student with limited funds, you decide whether or not you can afford to lose your $600 because it is a real possibility.
you can start small first
good luck
yes, you can trade forex minis
yes...$600 is more than enough..or u can get loans also
melgonz,
You can certainly start with $600 however I would suggest going to a 400:1 leverage for better interest earnings. I would be happy to spend the time with necessary to get you started. Why don't you open a trial account and start it with $600 and see where it goes then invest your own money from there. I started with a mini account myself so I can completely sympathize with your position. You are wise to considering investing!
Give me a call or send me an e-mail and I will get you set up with your demo.
Looking forward to hearing from you,
Brandon Wells
877-773-5345
http://www.yourforexinvestor.com...
bjwells@yourforexinvestor.com
Yes you can nowdays.
You don't need to go 50:1 oanda now.. you can go 400:1 with IBFX - then you can also use MT4 and an EA created by a member of the IBFX forums to help yourself out.
If you wan't to be cautious.. stick with just 2 pairs mate!
Okay, lets think what happens in a typical forex scenario and then you can make your own decision :
What is the stop loss ? Say 30pips. Which is real easy on a 4 hourly chart. Unless you sit there looking at the miuntes chart.But hey look its a probability game. The market is wide and deep. It has no feeling. After a while humans make mistakes.
Okay say 30pips. Thats $30 on the mini. Given $600, you have 20 trades to go.
Okay nobody has a string of bad lucks say you win 10 and lose 10. Fair enough. If you have that kind of ratio, you are real good already. 50% win/loss ratio ??!!
But you might be losing money IF the sum total of profitable trade in monetray terms is half that of the sum total of losing trades in monetray terms. You still lose.
So okay instead of 20 trades you have 40 trades before you are out and out.
Say you make 10 trades a day. Losing 150pts each day . In four days you are out !! How easy is it to make 10 trades ? In 1 hr you could make 10 trades.
The odds is against you. Is it worth $600. Definitely !! The lesson you learnt from it is worth MORE than that.
Ps. The line between fishing, gambling and trading is very blurry. ...4 days of 10 trades, losing $150 a day. or 150points.
USD/YEN movement from Hi to Lo could be in excess of 200 points. Without counting the houly Hi and Lo which in sum total of 1000points or more.
Are you seeing the picture ? I am cautioning you. Not discouraging, who knows you might be the "bill gates' of forex. BUT please work out the math of the business. The math of forex before you even go near it.
4 Days to burn $600 ?? I know you might be raring to go. But hold on. Do your research. If its that good it can wait for you if not dont sweat it.
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