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What Level Of Capital Is Effective?
cydiver70
post Oct 16 2012, 07:25 AM
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Greetings to everyone,

I have read that in order to be profitable when trading with Forex leverage products (spread bets) you should at least have a minimum capital to invest. A friend of mine, stated that he wouldn't even try with anything less that 10000. This capital is required to be able to sustain a loss and an acceptable drawdown when prices move against you.

I would say that it depends on the leverage and the type of strategy you are following. What would you say?


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angeloscyprus
post Oct 16 2012, 10:45 PM
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Once a great broker said that anyone who tries with less than 10,000 will loose all hiw money for sure . On the other hand , if you trade very carefully with less than 10,000 mabey you can make it .

I have developed a system playing with less than 10,000 , but as you can understand profits are according to the capital , so with 5,000 for example your profit margin wont be the same as with 10,000 , but also the DD is not so big .

So in a few words as much you start with the more you will make , on a monthly bases profit result .

angelos
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kaitokids
post Nov 24 2012, 09:34 AM
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QUOTE (cydiver70 @ Oct 16 2012, 10:25 PM) *
Greetings to everyone,

I have read that in order to be profitable when trading with Forex leverage products (spread bets) you should at least have a minimum capital to invest. A friend of mine, stated that he wouldn't even try with anything less that 10000. This capital is required to be able to sustain a loss and an acceptable drawdown when prices move against you.

I would say that it depends on the leverage and the type of strategy you are following. What would you say?


Yes, I am agree with you, how profitable our trade is depend on the leverage and the type of our strategy we are following, but how much profit we can get will be depend to how much capital we have too, I use 1 : 500 leverage to trade, with my first deposit $100, I get the profitable trade with it, but it's not a big profit because of my little capital.


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cydiver70
post Nov 24 2012, 11:08 PM
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QUOTE (kaitokids @ Nov 24 2012, 06:34 PM) *
Yes, I am agree with you, how profitable our trade is depend on the leverage and the type of our strategy we are following, but how much profit we can get will be depend to how much capital we have too, I use 1 : 500 leverage to trade, with my first deposit $100, I get the profitable trade with it, but it's not a big profit because of my little capital.


Two points:



  1. I personally don't like low leverage. Even if it has been stated that a low leverage is safer. The reason for choosing a higher leverage is because almost all of my strategies are using multiple positions. With a higher leverage you can always open more positions but you should be careful with your selected lotsize. I prefer to adjust my risk by Lotsize selection. Therefore for a micro account for instance the higher the leverage the higher the flexibility is.
  2. With such a low capital I would only use a micro account with high leverage and very low tickvalue. Going with a standard account for instance with $100, and a tickvalue of 100000 for EURUSD, the possibility to loose your initial deposit even with trades with as low as 0.01 Lotsize is almost certain.


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onlymid
post Nov 28 2012, 12:05 AM
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1:100 - 1:200 is good for new trader.

Bigger leverage could make you lose you account faster. Micro account or mini account are good for amateur trader.
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50shadows
post Nov 29 2012, 09:47 PM
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That all depends on your experience and trading strategy. I think if you have profitable trading strategy, you worked successfully with your broker more than 2-3 months, you can try such a high level of the deposit.
But that surely it's not nice for the newbies and people who haven't made their strategies perfect enough
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Peter99
post Dec 27 2012, 10:59 PM
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i think it depends on how much you want to earn from this market
if you want to earn much money then you have to invest much too,so you can trade with big lots, but you should know this market is dangerous so keep learning and practice before invest your money
good luck
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Cpeters
post Mar 19 2013, 06:05 PM
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When I first started out, I opened a $50 account with profiforex. It was adequate for my trading needs back then but if you have the money and you're confident enough that you wont be losing my money, why not invest a bigger amount right? more investment, more returns... more risks too. tongue4.gif lol
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sheng80
post Apr 3 2013, 09:43 PM
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Not everyone can afford to invest 10000 in the forex market. And having 10k invested doesn't always mean you'll succeed anyway. Heck, I've seen people start out with $100 dollars a couple years back and now they're living off of forex. It's not the amount of capital you invest that matters, it's how you use it.
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UMOFX IB
post Apr 19 2013, 08:20 AM
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QUOTE (cydiver70 @ Oct 16 2012, 08:25 AM) *
Greetings to everyone,

I have read that in order to be profitable when trading with Forex leverage products (spread bets) you should at least have a minimum capital to invest. A friend of mine, stated that he wouldn't even try with anything less that 10000. This capital is required to be able to sustain a loss and an acceptable drawdown when prices move against you.

I would say that it depends on the leverage and the type of strategy you are following. What would you say?

The more you will invest in Forex the more chances of earning a good profit will be. So it basically depends on the experience and knowledge of the trader how they make and follow some good strategies to generate reasonable profit from risky Forex market. 10000 is the good amount for trade if trader can afford to invest.


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ExtremeBlogger
post Apr 28 2013, 09:06 AM
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If you trade without drawndowns, and always use stop losses you can trade even a $100 account without problems.
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ForexAdvantage
post May 1 2013, 02:00 AM
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QUOTE (cydiver70 @ Oct 16 2012, 07:25 AM) *
Greetings to everyone,

I have read that in order to be profitable when trading with Forex leverage products (spread bets) you should at least have a minimum capital to invest. A friend of mine, stated that he wouldn't even try with anything less that 10000. This capital is required to be able to sustain a loss and an acceptable drawdown when prices move against you.

I would say that it depends on the leverage and the type of strategy you are following. What would you say?


The more capital, the easier to trade. When you have "mini" accounts, it is obvious that you have to accept a higher risk limit to produce sufficient profits --> riskier, larger drawdowns.


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Rambo35
post May 2 2013, 03:56 AM
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That depends on the trader, but you need to have realistic expectations. With a smaller account you can't expect to earn as with a big account.


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