FX Q&A

What will it take to make $500 per day currency trading?

QUESTION:
I only have $10,000 to start with. How should I plan my trades so that I can make $500 per day currency trading?

ANSWER:
That’s a great question. Many beginning traders who attempt to make big money currency trading fall into the trap of ‘unrealistic expectations’ and I will take this opportunity to show you what I mean.

The currency trading market has received a lot of attention over the years due to all the wonderful benefits it has to offer, including accessibility and trading volume in particular. You have no doubt read about (or heard of) people who are making five, even six figures every month in this market.
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Is currency trading in the forex market really worth the risk?

It is common knowledge that most investors fail at finding success in forex currency trading. In fact, it is not uncommon to hear that 90% of traders loose money in this market.

Despite all of this, the currency market is not a trading opportunity you want to turn your back on.

Ironic as it may sound, the market that has left a sour taste in the palettes of many traders still holds great promise. After all, for every defeated investor who populates the failing group, there is a small group of investors who fit squarely into the successful group. It stands to reason: if 10% of forex traders are succeeding beyond the wildest dreams of most investors, there must be a secret to their success. And indeed, there is.
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How much money should I start trading currencies with?

You can start trading currencies with very little money. Depending on your objectives (and, how much money you want to make), this can be good or bad.

In the case of starting small (with only $300)…

It is true that you can open a Forex Trading Account with a broker with as little as $300. But, as a general rule, you should plan to loose no more than 1 – 2% of your account balance in any given trade. 2% of a $300 account is $6. When you equate your looses to figures (rather than percentages), you can then easily see what sort of account you will be able to safely trade with (and thus, how much money your likely to make).
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