How much money do you need to start forex trading?

This is a one of the most common questions I get asked. So how much money (trading capital) do you need to start forex trading? There are many variables to the answer, and it falls down to the the situation of the trader. If you want a simplistic answer, then the minimum I would say is 6 figures upwards (starting at $100,000 USD). I’ll explain my reasoning later in another post.

First let’s start off with a question:

What do you want to get out of Forex Trading? A side income? To live off Forex trading? As that will change the amount of trading capital you will require.

If you want to live off forex trading as income, then I would say you really do need a minimum of 6 figures to start out, 5 figures ($10,000 USD upwards) is possible but the emotional pressure may impact your trading and trading results.

As a side income, then how much are you expecting. What are you happy with? 10% a month? 10% a year? To beat the banks and their low interest rates? The answers will impact your dedication to trading.

After answering that question: What trading results do you expect out of your Forex Trading?

When I ask traders this I normally get blank faces and a story from what they read online about a forex trader that and turned $1,000 USD into $1,000,000 USD and became an instant millionaire.

There are very very rare cases like this. That’s the case of expectations vs reality, as the majority of traders lose their money but marketing in this industry has ‘get rich’ written all over it. I remember signing a risk disclosure form with a professional brokerage firm and they were very clear that more of their traders lose than win.

Let’s break down the trading results, for examples sake, let’s say you wanted to get $1,000 USD a month (or a year if you wish) from your trading.

If you started with trading capital of:

  • $100. You would need a return of 1,000%.
  • $500. You would need a return of 200%.
  • $1,000. You would need a return of 100%.
  • $5,000. You would need a return of 20%.
  • $10,000. You would need a return of 10%.
  • $100,000. You would need a return of 1%.

Re-read that. You can play with the numbers, increasing the trading goal to $3,000, $10,000 etc. Really think about which one of those returns is consistently sustainable? Then let me know your answer. If you can grasp this, it will give you an extra edge few traders really understand or have bothered to think about.

As a final note, trading capital is important but what is even more critical is your depth of knowledge and actions towards forex trading are more important. Which comes down to preparation and dedication to your forex trading goal.

Good luck,

Robin

My crazy idea

Hello there fellow Forex Traders!

I have decided to start a blog. What is this thing!? It’s absurd, I say! And quite frankly, I have how clue how to use it.

But hey-ho. The crazy idea is to share my insights in Forex Trading with all you lovely people. I may go at a tangent and digress in with insights in entrepreneurship and art of doing good business.

I guess I should talk more about who I am?

A one army marching band of a solo Forex Trader living in and Asia. You can read more in the about section.

What is this Forex Millionaire Trader site?

Firstly it is a place for me to post my thoughts, insights on Forex Trading and Investing. On the blog and website I will share and answer questions from Traders. If you want to ask questions please use the contact page.

I have crafted and plan to craft Special eBook Reports and have a newsletter with more in depth information. That will be for Phase II.

The initial concept was for it to be a Forex Traders Club. For now, that will have to wait.

I look forward to our journey together.

Playing to win!

Robin