If you want to make a living by trading in the Forex market the first thing you need to take care of is having a sufficient starting capital. If you do not have enough money for a normal deposit, then you have to admit that you will not make a living by trading forex in the near future.
How much money do you need as a new forex trader?
The exact amount of money that you need to trade will be different for everyone. In other words, if you plan to effectively manage the risk in each trade you will need enough money at your disposal so that you can open a large position and earn enough money to keep yourself and your family safe without risking too much in one transaction.
Having enough trading capital will allow you to keep your trades for a longer period of time and avoiding margin call or stop-out levels.
It is easier to start trading as a part-time employment and consider the Forex market as an additional way to earn some extra cash. However, you can still trade and earn consistently money every month, even if you do not have enough capital.
Create your own trading plan
Nevertheless, instead of getting under pressure – to make a lot of money quickly, it’s better to focus on creating a plan, gaining experience and getting confidence in trading in the financial markets. Even if you have enough money as a starting capital, but you do not know how to trade in the Forex market then you will most likely lose it anyway. When we started trading, we started small, and then when we learned we started gradually building our capital.
Remember that you should always use only your own money for trading.
You need to focus on how to become a good trader, not how much money you can make.If you are a good trader, then people themselves will carry money to you so that you trade for them and everything will be fine (there is funds and private investors who are looking for good traders to trade for them, but you have to be a good trader).
The best advice we can give at the beginning of your career is to become a part-time trader, but constantly improve! Everything will be fine if you start right from the beginning.
Consistency is key
So, yes, you will need to have a lot of money to make a living only by trading, but you still have to consistently trade and trade profitably. If you cannot profitably trade with a small or medium deposit, you will not be profitable to trade on a larger account.
After all, we should all build our own trading strategy and set a money management plan according to it. Keep in mind that it is never a good idea to trade using the “all in strategy” as sooner or later you will burn your trading account.