Christian O. : What is the best amount of fund to start trading Forex?
SME Guide’s Answer:
We advise you start trading FX with small amount of money depending on your level. You can risk higher at the beginning and reduce your risk accordingly as you become more profitable. This is not the normal norm as far as forex is concerned, but I have found that it works and I call it aggressive forex trading.
For example, If you decided to start trading with $500.00; I will advise you make your 1 pip to equal 0.1 (i e, it will take you 5,000 pips to wipe out your equity) if you move the account to $2,000; I will advise you to make your 1 pip 0.2 (i e, it will now take 10,000 pips to wipe your account) You grow in that order. You can decide to be more aggressive, it all depends on your risk tolerance.
Kindly note that excessive reduction of risk does not in fact helps a trader to become profitable or not to lose his or her money. What actual helps a trader remain profitable is trading with accurate knowledge of the market as well as trading without fear of losing money. Someone may start with $100,000.00 and reduce risk so low and still wipe out all the account and another person can start with only $200.00 and increases his risk and succeed in taking the account to over $100,000.00. You just have to know what you expect from the market. Please, ensure that you are not motivated by greed here if not, you will wipe your account no matter how big or small it is.