Forex trading has become so easily accessible through Online Forex Brokers with just as little as a $5 start up capital. Is it even possible to trade successfully with such a small amount?
Hello amazing readers, It’s been a while since I published a new blog post except for the weekly economic news. Do you guys see the new clean look of this blog though, I can’t get over it. I hope you love it and you’ll also find it easy to navigate through. I cannot thank the designer enough for this stunning website and mostly for the top of the range service that they offer, they are truly amazing. You can view their portfolio Here. Let me get back to the business of today.
A lot of times I get people asking me about the minimum capital to start a live Forex trading account. I always try to be as realistic and practical as possible through my answers.
How realistic is trading a very small account?
You can walk into a shop and see R9.99 Per Kilo on chicken, but walking inside the shop does not mean you’ll come out with a R9.99 full chicken (you may not come out with any chicken at all) this is simply because you don’t really want to buy 1 kilo and obviously you’ll end up paying way more than R9.99. This is just me trying to simplify my explanation and just to get my point across (I’d love a nicely grilled piece of chicken right now though)
The same goes with Forex Brokers, they have their set minimum amount which does not really mean it will make sense to you. It can be extremely challenging to trade a very small Forex account, It’s reality. A while ago I published a blog post just to give an idea of how much can one start a live account with. I did that to share a realistic approach towards Forex returns. You may view the post Here.
Your earning potential is highly linked to your Capital
Not everyone has a privilege to start a live Forex account with at least $1000 or more. I have always maintained that it is not only about your trading capital but it is mostly about you (which is why I focus more on trading psychology). It is also the truth that your earning potential is highly linked to your start up capital. We need to keep it real. You may like to read this post about Forex returns Here.
The way you can nurture and grow a small Forex account is the same as you can do with a bigger account. These two require the same discipline and money management.
Tips on how to grow a small Forex trading account
First of all, you need to accept the fact that you won’t make much from a smaller account. Secondly, you need to start viewing your Forex trading account as an investment. You can set aside a portion from your other income such as your salary or business. If you don’t have any other income, this is the reason why you need to have another income stream. Find a way to earn an income (there’s always a way if you look hard enough). By all means, find that other income so you can be able to invest more in your trading capital. Add this portion to your Forex trading account month after month just like you’d do with your savings account.
How much can you set aside per month to invest in your Forex trading account?
I don’t know, but let’s say you can manage to set aside R1000 (you can even take from the money that you use for entertainment if you have to). Deposit it into your Forex account. This will not only increase your trading capital, but it will definitely shift your mindset and help you to view your Forex trading account as a serious investment opportunity that it is. It will surely become one of your real investments and you won’t be easily moved by what social media feeds you regarding Forex trading.
Forget the hype and keep it real for your sake
Most traders still believe in all the hype that is sold to them on social media regarding Forex trading. When you get to this stage where you are no longer hyped up and easily influenced by a “get rich overnight” mentality, you start to see progress. Progress is what you need and unfortunately you won’t find it overnight.
Is it bad to start small?
Starting small is OK and it also has its advantages. That thing can teach you lots of patience which you’ll always need by the way. But you don’t have to stay small. Investing more money helps in creating a better trading environment where you don’t worry much about chasing a number of pips because you can take just a few pips which can give you tangible profits. You also want to see your efforts of logging in to your trading account being rewarded.
I am so sorry if you were expecting a Forex trading system which will supercharge your smaller account and turn it into a million bucks overnight. This was just me stopping by and giving you practical tips which I’ve personally used.
I hope this helps. If you find it valuable, please help me to reach out to as many people as possible by sharing this post using the share buttons. Thank you so much for stopping by and reading. Happy trading , don’t forget to keep it real and contact me for private coaching.
I must say, it felt so great to type this post, I guess it’s the environment (my stunning site, sorry to keep on mentioning it but I just can’t get over it, I promise to keep it to myself next time, today is my first day akere). Stay tuned for more practical Forex tips and also subscribe so you can receive my weekly blog posts straight to your email. To subscribe, just tick on ”
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