This question is very popular among traders who are just starting to get used to the field of forex trading and are confused as to what is the right capital to start trading?
To make it easier for you, let's look at some levels of capital value used and its explanation.
Figures ($ 10 - $ 99)
Many new traders will be attracted to the promotions offered for starting capital as low as this. This is because there is very little capital and traders will not feel too lost if they lose all trading capital.
However, it is not appropriate to start trading with this low capital.
Figures ($ 100 - $ 999)
If followed, capital at this level is still seen as a low value to start trading. For traders starting with this amount of capital, they use it to train psychology in trading, discipline, and risk management.
The value is not so great if the trader loses all his capital, but not so high to generate a lucrative profit.
Figures ($ 1000 - $ 9999)
After consistently generating profits with tested trading techniques for a certain period of time, traders will be more confident to trade with this much capital.
Capital at this level allows the trader to start generating passive income in addition to his fixed income.
If traders succeed in making 10% profit per month, they will generate $ 100 equivalent to around 400 Malaysian ringgit for spending and additional income.
Figures ($ 10,000 - $ 99,9999)
The next level with 5 digit capital has entered a different level of higher for a trader.
With a profit target of around 5% per month is enough to generate a lucrative income. At this time, traders are more confident to leave a permanent job and focus on making forex trading their full-time career.
Figures ($ 100,000 - $ 999,999)
At the professional level, traders with account capital reaching a value of 6 figures will generate high income with only a low percentage target.
The target of around 2% to 3% is enough for a trader to live luxuriously as a result of the profits earned.
