Can a person start trading Forex with $100 ? Yes it is possible to begin your journey of online trading with as little as 100 dollars. Forex trading is a monetary exchange market that involves all the aspects of exchanging, buying and selling currencies at determined or present-day prices. The forex market is currently the most accessible monetary market worldwide, and which requires a small amount of cash for opening an actual account. However, though most forex brokers only need a small amount as initial deposit, it does not indicate that it’s the recommended minimum.
As a beginner in the world of online trading, your recommended start-up capital should be 100 dollars. It is not advisable to start trading Forex with a large amount of money since you can suffer enormous losses when utilizing online trading as your source of income. The chances for you reaping huge profits are much same as the likelihoods of suffering enormous losses. Therefore, as a beginner trader, it is vital you use a small amount first so that you can enhance your skills and confidence level before you begin using higher amounts in your Forex account. Here are some tips you should know about if you opt to start Forex trading business with as little as 100 dollars:
How to Start Forex Trading Business with 100 Dollars
If you are a fast leaner, you can begin trading Forex with as little as 100 dollars, and within three months find yourself making as much as 90 dollars a month. However, before you risk your 100 dollars, it is vital you first search for a reputable broker that will give you solutions which will help you improve the chances of trading Forex successfully. A reputable Forex broker like Forex.com and XM will guide you on the basics you need to know about Forex and also teach you how to open a free demo account that you will use to improve your trading skills prior to using an actual account.
In addition to collaborating with a reputable and trustworthy broker, you must also do your homework properly about Forex by using the various reputable sources such as video tutorials and magazines among other materials offering information about Forex trading. This will help you discover own tricks that will aid minimize losses and maximize returns accordingly when using your money in a real account.
Once you have gathered enough confidence, you can now start with 100 dollars on an actual account. When using an actual account, the best trick is trying to grab approximately 5 to 10 pips daily. This means your target should be trying to get an average net profit of 5 to 10 pip daily.
The problem with most Forex traders is to try overreaching in order to make a killing in a single day. Though it may work for some, chances are very slim. As a beginner trader, you can begin from virtually nothing and find yourself a millionaire in duration of less than 12 months. The secret here is to ensure you take very small profits on a daily basis. These small profits that most traders overlook can help you create for yourself a fortune in a short span of time.
How to Make Returns When Starting Forex Trading with 100 Dollars
Once you find a reputable Forex broker and open an account with them for 100 dollars, your risk for every trade will be limited to one dollar per trade i.e. 1% of 100 dollars. When placing a trade, for instance the USD/EUR selling or buying one micro lot, you must make sure that your stop loss order is within ten pips of your initial entry price.
Because every pip is worth 0.10 dollar, in case you will choose 11 pips as the stop loss order, it means your risk will be 11X0.10 dollars= 1.10 dollars. Therefore, choosing a stop loss order of more than 10 pips is not proper since you will attain more risk than what is allowed by the broker.
As a beginner trader, be notified that forex trading is not a get rich quick scheme. You must ensure you do your research always so that you can discover own tricks that will help you enhance your trading strategies and hence earn higher returns overtime.
Whether you will choose to start your Forex trading business with 100 dollars or a higher amount, as a beginner trader ensure you first begin with a demo account so that you can gather the relevant skills and confidence before you start trading on an actual account.