What is the Appropriate Capital To Trade Forex?

Everyone has the opportunity to improve and increase their standard of living if you succeed in trading forex brilliantly, but you need to remember that forex is a high-risk business. It is a real business, high risk, and high return. When I say about high risk and high return, the crowd only focuses on "high return" and does not undermine the "high risk". In forex trading, you will hear an average tell about how wonderful it would be if profit as if you were pedaling a bicycle today and tomorrow can continue to carry Ferarri. Even though I say high return, I don't mean high return is such a description. So what does that mean?

The high return for me is if we can trade and profit 10% -20% a month from the capital is quite high. Even though it is busy comparing directly forex business with ASB, you must remember. ASB returns about 7% -8% a year while you shake your feet, but you don't expect to trade forex while shaking your legs and aiming to achieve 100% in a day. It is all absurd. Forex trade is like an investment that requires knowledge, just like stock trading, stocks market, index, everything requires knowledge. Mutual funds also need knowledge. But among all types, forex trading is the riskiest and the highest return because other instruments cannot provide returns like this.

If you want to trade forex, you need to know you want long-term or short-term profits. If you are thinking about the long term, please think about how fast you need the money, namely the return from forex trading. Crowds that lay wanting to make a profit every day and this thought is what causes failing to become a true forex trader, the dream of profits is too short and big.

I don't know what other people think and can do, but for me, if you can think about the profits you can earn every month 10% -15% of forex trading is good enough and this will minimize the risk you need to bear. Say in my opinion 15% of forex trading is considered correct and guessed.

How much capital is appropriate?

Crowds are trying to get into forex without planning, strategy, and goals, so continue to start trading with very little capital like USD50 or USD100. With a target of 15% a month from USD100, which is USD15, in Malaysian Ringgit the value is approximately RM45. A month of profit of RM50 is very small and this trader will feel unbalanced by his time on the forex chart. As a result of feeling unbalanced, he will continue to trade crazily to double the USD100 with the hope that next month he will get a profit of around USD1000, that is 1000%, do you think he can do it? Crowds will lose at this stage.

So I back it up with the correct management of Forex Money Management, for those who are at first and want to tame in forex, you need to think about the following matters. You need to put in the capital that you can afford to lose and USD1000.00 for me is logical capital for you to improve your standard of living with the start of forex trading. If you still don't have USD1000.00 and a forex technique that can give you a return of 10-15% a month, I suggest don't start real trading. You can continue to practice trading on the demo. Crowds will say "it's okay, please try USD100 first because you can test the trade." And I look at many traders like this, who at the end continue to repeatedly deposit USD100 because of repeated losses and emotional disturbances.

Why USD 1,000?

If your monthly minimum profit is say 20%, it is USD200 and around RM600. Comparison with the income of the am and middle-class workers who on average started out taming in the forex trading field, RM600 a month is enough to buy kitchen items, improve the standard of living, there is less money to pay for trains, and so on. That is enough for you to achieve consistently for 6-12 months before raising capital to improve your standard of living. And with your clear and correct eye from the start, you will not be lulled away making the same mistakes I said about before. It is all from my experience and observations throughout my time in this forex business, it is up to you to accept it or not.

You can also refer to the Post Train Installment Payments with Income Forex Trading - maybe you will learn something. Remember, this forex is not a get-rich-quick scheme, and is not a rocking foot laying program. Forex requires knowledge and real trading, no regular monthly returns from the broker, no return trades, no trades. Ops, to minimize your risk too, don't trade with the wrong broker, if it's not as good as you trade forex, it won't be useful if the “party” who manages your forex trading activities is the one you choose wrong.