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  1. #1
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    Start more to gain more

    Well, just like another business, forex trading needs capital to grow and to gain enough profit to you. Most of the broker apply minimum deposit for clients who open real account. But, of course clients can start trading with more capital than minimum deposit applied by broker.

    We see it looks stupid that we deposit with more capital than broker required. Funding account with bigger deposit for new investment.

    Forex trading is very different with another investment. In forex, investor active do trading and self to decide the investment instrument to choose. With good calculation, You can decide yourself to choose your own buy or sell order and get profit. But the opposite, if your decision is wrong, you may get loss in your investment account.

    Let us do simple calculation below
    Consider now AUDUSD is at 0.8564. It means to open order 1 lot with 10.000 (1 pip=1USD) contract size which needed margin requirement 1% from capital. So we need margin 0.8564 x 10.000 x 1/100 = 85.64 dollars. To open position buy or sell we need 85.64 as margin requirement.

    Let say, I start my forex investment. I start with initial capital $150, it means the rest of my account is $150 - $85.64 = $64.36 as the rest margin to hold of the movement that contrary with my order.

    Imagine my position is buy at rate 0.8564. Then in hours AUDUSD down to 0.8500 so my buy position is out of margin. My position is in margin call and the position is automatically closed by broker.

    In this case, because I put too minimum fund to anticipate the movement of the market. My account is get margin call because too minimum rest margin to hold the position. Remember that, as trader I can not predict 100% right the movement of the market.

    So, how many capital is needed?
    This question depend on your trading style, maximum drawdown dan how expert you predict the market. As more expert, you can start trading with smaller capital.

    But, simple way. Please to start trading with small capital. If you decide to do not put stop loss in your trading because it is too hard to calculate the stop loss and get large profit it is well done. But you must understand you must start with enough capital to start trading and of course stay away from over sizing.
    It is better to open 1000USD with 1usd per pip.

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    Registered user techboy's Avatar
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    What is important for me is to use certain percentage in order to get the right lot size, for example if you have an equity of 1000$ and I choose to risk 3%, so I can risk 30$ for a trade, now the lot size will still vary on how big your stop loss will be,it should go beyond 30$, if your stop loss is 30pips then we can use .1, but if your stop is 60pips you can only use .05, because if you use .1 with bigger stop loss your equity will have huge loses. Lot sizes should be dynamic depending on the size of our equity.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    [lang=ar]I`m really agree with you that we when we tray more trades we are willing to make more profit so we may find ourselves are able to get more chance to more than one trade . also we may be able to less of the losses trades . all of the market conditions can be used to serve our purpose[/lang]

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    I do not think it is a good thing to start more. Although it might make the trader to gain more, but that is not the main thing, the main things is the success of the account, and the success of the account will only come by the way the trader is serious in doing it. It is mainly a mart decision to start small till you are matured to handle big money.

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    I dont think that if you start more you will gain,I see the more you practice is the more you gain,If you want start trading in forex market we should open a demo account,In that demo account we can practice trading in that market and try with practice to discover the reasons of gain and we developed it and the reasons of loose and try to avoid it,

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    Registered user Hukam's Avatar
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    Even we can do trade by taking less risk rather than that, our main motive should be learning in starting but due to greed most of new trader's don't understand that, we all try to make a lot of money in starting big risk, I think only a few trader's learn in a good process in starting, most of newbies don't try to learn about their trading system learning

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    [lang=id]started with low capital or zero, it was not the obstacle for me, and used cents account, it gave me enough room or margin to sustain the order, and collected some profit and compounded them , the balance grew step by step and tried to repeat my works with always put my trading on the safest way, not easy for this, because the emotion easier triggered and we have to control it as best as we can[/lang]

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  8. #8
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    i guess the problem here was caused by you as a trader who set the lots size too big, it is not good to use, we need to see our capital and calculate for how much pips or margin is needed for trading per trades, so it is better to take a look at risk management and money management, and also the important thing here is how good analysis we can make it and how good we can handle some situations

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    Quote Originally Posted by techboy View Post
    What is important for me is to use certain percentage in order to get the right lot size, for example if you have an equity of 1000$ and I choose to risk 3%, so I can risk 30$ for a trade, now the lot size will still vary on how big your stop loss will be,it should go beyond 30$, if your stop loss is 30pips then we can use .1
    Of course at least, it needs minimum capital to start trading. Many broker lower their policy about to start trading, but they increase the leverage. I think broker will suck newbies trader. Newbie trader do not think too deep about start more to gain more with standard leverage.
    Quote Originally Posted by nosa33 View Post
    I`m really agree with you that we when we tray more trades we are willing to make more profit so we may find ourselves are able to get more chance to more than one trade . also we may be able to less of the losses trades . all of the market conditions can be used to serve our purpose
    In many other business, it needs more capital to make business capitalism.

    Quote Originally Posted by alaa_22 View Post
    I dont think that if you start more you will gain,I see the more you practice is the more you gain,If you want start trading in forex market we should open a demo account,
    I'm talking about trader who ready to join in the real account, trader already pratice well in demo account before

    Quote Originally Posted by Hukam View Post
    Even we can do trade by taking less risk rather than that, our main motive should be learning in starting but due to greed most of new trader's don't understand that, we all try to make a lot of money in starting big risk, I think only a few trader's learn in a good process in starting, most of newbies don't try to learn about their trading system learning
    It does not matter to start with small initial balance, but if we try to start more out capital we will have bigger probability to gain more

    Quote Originally Posted by samprazaan View Post
    started with low capital or zero, it was not the obstacle for me, and used cents account, it gave me enough room or margin to sustain the order, and collected some profit and compounded them , the balance grew step by step and tried to repeat my works with always put my trading on the safest way, not easy for this, because the emotion easier triggered and we have to control it as best as we can
    You may be a patient trader, you have a great idea about many big things come from tiny. Like it

    Quote Originally Posted by newentry View Post
    i guess the problem here was caused by you as a trader who set the lots size too big, it is not good to use
    Use big lot to earn more, its natural as trader hope to set trading forex as forex trading for living.

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  10. #10
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    Quote Originally Posted by alaa_22 View Post
    I dont think that if you start more you will gain,I see the more you practice is the more you gain,If you want start trading in forex market we should open a demo account,In that demo account we can practice trading in that market and try with practice to discover the reasons of gain and we developed it and the reasons of loose and try to avoid it,
    Forex trading business is all about our hard work without any hard work nobody can become a successful trader. We can start with low capital in starting and can learn properly about this business first. A good step by step learning can help us to learn about each single term of this business. I am not saying that we will gain everything but we will able to make consistent profit at least

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