Why back up capital is necessary in the trading ?
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Thread: Why back up capital is necessary in the trading ?

  1. #1

    Lightbulb Why back up capital is necessary in the trading ?

    I think the back up capital is very necessary for the forex trading and i think if you have the back up capital then you will have the manage the trading well and the reason is that the forex trading is unnecessary business and you will not know when you need the money in the trading so that's why i think the back up money is necessary in the trading what you think is it necessary?

  2. #2
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    Yes sam buddy you are saying right as we know that if we have a good capital we can escape from a huge loss so we should always have a good money in our payment processor or bank it will help us to manage our trades well and if anytime we are in situation of a big loss we can put our fund or fund our account at once so that's a very good point

  3. #3
    Forex trading is a risky business and demand patience and hard work. So we should start forex trading with minimum amount of capital order to secure our capital. I think we should start with 100 dollar and it will provide better rate with return. With increase our experience and knowledge we should increase our capital. In this way we will be in better position to earn and learn forex trading.

  4. #4
    of course backups capital it is extremely important and should not be forgotten in forex trading, because of no backup capital we will not be able to know when our stock is gone or still there, if we do not prepare for what we have means that we are not ready to trade forex

  5. #5
    back up capital is very necessary for a trader if we lost our capital in trading account then we invest our back up capital at the same time and continue our trading and also we have a chance to recover our lost on forex market

  6. #6
    Forex market being uncertain there is no guarantee that we shall earn from a particular trade or even will not make losses from it, so good traders keep themselves ready for the losses while expecting profits from their trade. Backup capital is helpful in case of sudden losses, and can be used to recharge the account in such situation.

  7. #7
    Quote Originally Posted by sam9630 View Post
    I think the back up capital is very necessary for the forex trading and i think if you have the back up capital then you will have the manage the trading well and the reason is that the forex trading is unnecessary business and you will not know when you need the money in the trading so that's why i think the back up money is necessary in the trading what you think is it necessary?
    Forex market has huge opportunity to make money, but the main thing is trader should protect his capital for daily trading or to hold the position. If A trader sustain himself for longer period of time then their is chance of recovery of his loss. So it is always advice to trade with small quantity and either trade with some part of your margin available or else keep backup if you loss present capital.

  8. #8
    I don't really understand with meaning "Backup Capital" in forex trading.
    If you mean backup capital in case we experiencing total loss (MC), well than always remember this rule "Always deposit your money for amount that we can afford to loose".

    So always use money to trade forex, where the money if its loss, will not disrupt the financing of our daily routine.

  9. #9
    Trader Russel2012's Avatar
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    Forex market is a critical business... A newbie trader can lose his all money.. So of course he needs back up money... But I want say a trader should enter in that real trading without becoming professional trader.. No need any back up money... Just practice on demo account and be expert then start trading with minimum 10000 $ then enjoy that great business with 20 % profit monthly... That's good enough In saa Allah..

  10. #10
    Capital reserves are necessary when trading forex, because it could be useful capital reserves to cover our losses in forex trading. And also capital reserves could also be used for trading again, if we just get stopped out when trading forex.

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