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This is a discussion on Forex Articles within the General Discussion forums, part of the Trading Forum category; Although some Forex brokers will let you start trading with as little as $1, you will need to deposit at ...

      
   
  1. #161
    Senior Member ArticleMan's Avatar
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    How Much Money Do I Need to Start Trading Forex?

    Although some Forex brokers will let you start trading with as little as $1, you will need to deposit at least $12 with a broker offering nano lots or $120 with a broker offering micro lots in order to day trade safely. The amount of money you need to start will depend upon your broker’s:
    and your.

    In order to trade Forex effectively, you need a Forex broker. Trying to trade Forex using a regular bank account or a money changer is too costly and slow to be a realistic option. So, the starting point to answering this question is, what is the minimum deposit required by a Forex broker?

    Forex brokers won’t let you trade with real money until you have deposited their required minimum deposit, which these days is usually about $100. However, there are Forex brokers that require no minimum deposit at all, so theoretically you could start trading Forex with as little as $1. Unfortunately, if you try to trade Forex with such a small amount of money, you will quickly run into several problems, starting with minimum position sizes and maximum leverage.

    Forex Broker Minimum Position Size and Maximum Leverage

    The vast majority of Forex brokers will not let you make a trade sized smaller than 1 micro lot (0.01 lots) which is worth 1,000 units of the base currency.

    Forex Brokers Offering Nano Lot Trading

    FXTM is a regulated Forex broker offering trading in nano lots. Their highest maximum leverage offered is 1000 to 1 and their minimum deposit required is $10. There are several other brokers also offering trading in nano lots. Oanda, for example, takes it even further and allows you to place a trade with a position size as low as $1 or 1 unit of any other base currency, meaning you can trade with $1 without using any leverage.

    How Risk Management Affects Deposit Size

    We looked earlier at the minimum amount of money you need to enter just one trade. Yet Forex trading involves taking a large number of trades. Even a position trader who might aim to stay in winning trades for a few weeks or even a few months would probably expect to take at least ten trades over a year, and shorter-term traders such as swing traders or scalpers many more trades than that.

    How Stop Losses Affect Deposit Size

    You should never enter a trade without inputting a hard stop loss. The hard stop loss tells your broker that when the trade has gone against you by a certain amount, to close the trade immediately. Although the stop loss will not always be executed at the exact price given when markets are volatile, it is a useful and very important way to limit your risk and control your losses.

    How Much Money Do I Need to Position Trade Forex?


    Position traders look for trades which take several days or even weeks or months to complete, and so usually need to use stop losses of about 100 to 150 pips. Assuming you don’t want to risk more than 0.5% of your account on any trade, and that you will never lose more than 20% of your account, you should start with a deposit of at least $2,500 to $3,750 at a Forex broker offering trading in micro lots, or at least $250 to $375 at a Forex broker offering nano lots.

    How Much Money Do I Need to Swing Trade Forex?


    Swing traders look for trades which take from between about one to eight days to complete, and so usually need to use stop losses of about 30 to 60 pips. Assuming you don’t want to risk more than 0.5% of your account on any trade, and that you will never lose more than 20% of your account, you should start with a deposit of at least $720 to $1,440 at a Forex broker offering trading in micro lots, or at least $72 to $144 at a Forex broker offering nano lots.

    How Much Money Do I Need to Scalp or Day Trade Forex?

    Scalpers or day traders look for trades which take only seconds, minutes, or perhaps a few hours at most to complete, and so usually need to use stop losses of about 5 to 10 pips. Assuming you don’t want to risk more than 0.5% of your account on any trade, and that you will never lose more than 20% of your account, you should start with a deposit of at least $120 to $240 at a Forex broker offering trading in micro lots, or at least $12 to $24 at a Forex broker offering nano lots.

    Can I Start Forex with $100?

    The calculations discussed above show that it is absolutely possible to trade Forex safely starting with an initial deposit of $100, if you use a Forex broker offering nano lots or smaller, and you are day trading, scalping or swing trading.

    Is It Worth Trading Forex with a Low Minimum Deposit?

    A final issue to consider is, even if you can trade Forex safely with a small amount of money such as $50 or $100, is it really worth it? It all depends how much these sums of money mean to you and how much time and effort you are going to put into trading Forex.

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  2. #162
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    The small country of Belarus has recently become the focus of attention as it increased its number of licensed forex brokers to 20. Numbers are expected to rise, as this previously overlooked nation is accumulating international attention. This increase of brokers has prompted the Belorussian president to sing a document that makes local forex trading tax exempt.

    The wind of change dates all the way back to 2016, when the country introduced a new regulation on FX operations that quickly was set in motion. Before then, brokers were not regulated in Belarus, which not only bread many unverified brokerage firms, but also stained the country’s image in the eyes of the global forex industry.

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  3. #163
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    Forex Trading During a World Crisis

    How Do You Know When it’s a World Crisis?

    There are two simple rules to use that will tell you whether you are in a real “world crisis” or just a more normal smaller crisis. The first rule is, are markets moving consistently with abnormally high volatility? You can measure this by applying the average true range indicator over the long term and comparing it to the recent daily ranges of stock, Forex, and commodity markets. If the current ranges persist for several days at levels far above their long-term averages, and stock markets are mostly going down, then it is obvious that a major crisis is going on.

    The second rule is not mathematical, it is emotional – is everyone you know who follows the news saying in fear “Oh, I can’t believe this is actually happening, it can’t be real”? When you have aware people talking like this and crashing stock markets on very high volatility, you have a true world crisis.

    How to Trade a World Crisis

    Trading Forex, stocks, or commodities during a world crisis is very dangerous, but also potentially extremely profitable. Here are ten great rules a trader in a world crisis should follow to not only be profitable, but also to avoid completely blowing up their trading account:

    1. Expect market moves each day to be at least as big as the biggest daily move so far since the crisis began.
    2. It is totally possible for a stock market to fall by 50% within just a few days.
    3. A world crisis is the only time when it makes sense to short stock markets. During more normal, moderate crises, short sellers tend to find themselves trapped by dip buyers.
    4. The part of a world crisis which gives the best trading opportunity is the first few weeks. In fact, the first days of the crisis is the very best time to open new trades.
    5. Keep trade position sizes small. This is very, very important. It is tempting to open big trades as if you are right you will make a fortune. Don’t do it. Adjust down to factor in the very high volatility.
    6. Keep stop losses tight, relative to the volatility. Don’t make the mistake of thinking that because the volatility is high, you need to make stops extra-wide to give your trades a chance to survive. It doesn’t matter if you lose trades if you keep your trade position sizes small, as even winning traders lose lots of trades.
    7. Don’t pay any attention to support and resistance levels, even in Forex, as they will almost always be overpowered by the strong sentiment and general lack of liquidity. The only exception should be when the price has already made a very large move for the day, as large as a recent day’s average move, and is showing strong signs of reversing.
    8. Don’t exit a trade too early by looking for profit targets. Wait for reversal price action, even if on a short time frame. If you try to pick exit targets, you will almost always be far too conservative and miss out on great profits on the winners – this is just human nature.
    9. Don’t feel like you need to trade everything. It is probably enough to trade one major stock market index, one major commodity, and one Forex pair at any one time, although you might want to switch between them at times. Remember that market correlations are usually extremely high during a world crisis, so keep the total risk of three open trades in mind as well as the high volatility when you size your positions.
    10. Don’t trade when you are feeling panicky! During a world crisis, you or people close to you might face danger. It is not easy to make a trading decision if you are worrying that your sneeze might be the start of coronavirus! If your mental health is suffering, take a break – there will be another great opportunity tomorrow.


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  4. #164
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    when a trader is a newbie in Forex , the first thing he or she should be doing to do more of the learning. The beginner traders do not know which road to take in Forex and that is why they are always getting confused, it is better when they take their practicing and learning very serious so that they can learn better.

  5. #165
    Junior Member David I Pooler's Avatar
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    Quote Originally Posted by Fin Candy View Post
    when a trader is a newbie in Forex , the first thing he or she should be doing to do more of the learning. The beginner traders do not know which road to take in Forex and that is why they are always getting confused, it is better when they take their practicing and learning very serious so that they can learn better.
    It seems to me that for a beginner, the best and most effective way will be to find a mentor who will teach you, control and motivate you. It will be more expensive, but it is worth it. Forex trading is versatile due to the different trading styles, Forex strategies, and Forex systems that can be used. In the Forex market, there are traders of all levels of proficiency, and each type of trader will have different ways of working. One of the features of Forex is the split between the traders who want to manually trade, and those who want to utilise automated trading. https://algofxpro.com/fxrobots On this page you will find examples of FX robots that will help you optimize your trading process. Overall, AlgoFxPro Forex Robots are user friendly and provide easy access to good customer support - contact details are clear and they answer almost immediately, which technically serves a user well - which is one more reason why they are in the list of top Forex robots providers.
    Last edited by David I Pooler; 04-30-2020 at 09:08 AM.

  6. #166
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    Is Forex Trading Profitable?

    A few important conclusions can be drawn from this data:

    • All the largest retail Forex / CFD brokerages report very similar data, so it is reasonable to assume approximately 70% of all retail CFD traders lose money.
    • The percentage of losers is very similar between brokers, suggesting it is the market and the traders themselves, not the brokers, who are responsible for their clients’ long-term losses.
    • Although this data includes clients trading non-Forex products, there is no reason to believe results differ between clients trading Forex and non-Forex CFDs.
    • Even retail Forex traders seem to be more profitable than is widely believed, as traditional estimations of 80% to 90% as losers appears to be an over-estimation.

    Why do 70% of Retail Forex Traders Lose Money?

    Now that we have established that for about 70% of people who try it, Forex trading is not profitable, we should ask why. After all, if markets are random as the classic “efficient markets” hypothesis suggests, then shouldn’t winners and losers be divided at roughly 50 – 50?
    An even division between winners and losers might make sense if Forex were a zero-sum game, as there has to be a loser for every winner, and vice-versa. Yet retail Forex / CFD trading is not a zero-sum game, it is a negative-sum game, because the retail Forex trader:

    • Must pay either a spread, a commission, or both in order to enter and exit a trade.
    • Must usually pay an overnight fee on any open trades which are held over 5pm New York time.

    This means that the odds are stacked against the retail Forex / CFD trader. However, it is not impossible to overcome these odds, as the 30% of profitable retail traders can testify.
    Some years ago, one large retail Forex brokerage released data which showed two clear differences between profitable and losing traders. Traders who:

    • Made higher deposits into their accounts, and
    • Used lower true leverage

    were more likely to be profitable. We’ll examine each of these factors in turn, although they are related, because traders with lower deposits tend to use higher leverage.
    Why are Better Capitalized Forex Traders More Successful?

    Retail Forex traders who make larger deposits may be more likely to take their trading seriously, because they have more money at stake, and know instinctively that their chance of making a meaningful profit is greater too. For example, a trader who deposits $100 and makes a return of $20 should be just as proud of themselves as a trader who deposits $10,000 and makes a return of $2,000 as it is the same trading achievement – a 20% return. Yet very few people anywhere in the world will be able to get very excited over making $20. So, to some extent, this might be just a question of focus and meaning.
    Why are Forex Traders with Lower Leverage More Successful?

    A characteristic of retail Forex trading is the relatively high leverage offered by many Forex / CFD brokers, especially those located outside the European Union (Australia allows leverage on Forex as high as 500 to 1). Many brokers also allow accounts to be opened with deposits even lower than $100. This means that a lot of retail Forex traders might deposit $50 and use 400 to 1 leverage to make one trade sized at $20,000. This trader will then either wipe out their account or maybe triple it, which would then probably lead to another over-leveraged trade with a similar result. While there is some logic at work here – a series of winning, highly leveraged traders would a way to make a huge return quickly in theory – the odds against such a gamble resulting in anything except a blown account after a few trades are vanishingly small.

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  7. #167
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    When the best time to trade

    Best Time of the Month to Trade Forex

    Many traders believe that Forex markets tend to behave differently right at the beginning or end of a calendar month. The logic behind this belief is that large investment institutions often decide to change their investments at these times. If this belief is true, we should expect to see evidence that trend reversals and relatively higher volatility have been more likely to happen at the turns of months.

    Best Day of the Week to Trade Forex


    The day of the week can be an important factor in trading Forex, but its importance will vary depending upon whether you are a day trader or a longer-term swing or position trader.

    Day traders do not leave trades open over a weekend when markets are closed, so do not have to worry about risks associated with doing that.
    Best Day of the Week for Swing / Position Traders


    I mentioned earlier that there is an advantage for longer-term traders in entering new trades as early in the week as possible. There are additional factors to consider depending upon whether your strategy is trading trends or trading ranges.
    It is widely believed that the Forex market usually begins the week indecisively, changing direction over Monday and Tuesday before starting to trend more decisively from Wednesday to Friday.

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  8. #168
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    How to Trade Forex in Nepal

    Forex trading in Nepal has become easier to get involved in over recent years, which have mostly seen strong economic growth and the increasing availability of fast internet.

    Is Forex Trading Legal in Nepal?


    Forex trading is completely legal, as long as traders remain compliant with local tax laws, which include a capital gains tax on Forex profits.

    The Best Forex Brokers in Nepal

    There are no international Forex / CFD broker with a physical presence in Nepal, and there are no such brokers anywhere in the world currently accepting deposits in Nepalese Rupees. This means that effectively, anyone in Nepal looking for a broker has a very wide variety of choice, as there are very few Forex / CFD brokers who place any restrictions on accepting a new client resident in Nepal, and there are no unique geographical issues driving choice of best broker.

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  9. #169
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    Forex trading business is the most standard way of money making! Such as, here I can use pending orders, if I get any historical level of market then I use pending order strategy so willingly! Without any good entry point, I donít open my trading chart because it kills my trading momentum! In addition, I am very sensitive on my entry quality!

  10. #170
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    A Simple and Profitable Trading Strategy

    What is a Trading Gap?

    A “gap” in the market occurs when the opening price is either higher than the previous session’s high price (gapping up), or lower than the previous session’s low price (gapping down).

    Forex Articles-eurusd-h4-fx-choice-limited.png


    Gaps can be important in trading because there is a widely held belief among traders that gaps are usually filled quite quickly, which provides an opportunity for Forex traders to make a likely profit, because the most likely short-term direction of the price can be successfully predicted.

    A gap is defined as being filled when the current market price returns to enter the price range of the previous session.

    We can draw some exciting conclusions from this data that can help build a profitable gap trading strategy:
    • The smaller the price gap, the more likely it was to be filled quickly.
    • All price gaps in EUR/USD were more likely than not to be filled by Wednesday London time, no matter how big they were.
    • Price gaps in USD/JPY were more likely than not to be filled by Wednesday London time if they were less than 75 pips wide.

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