Are you new to the trading world and ready to make the transition from a demo account to a real live account? Like many beginners, the question is how much money will I need to start the journey. This post will go straight to the point and give you an idea of what to know.
Before you start trading it is important to focus on learning, learning more and practising the skill. Next, put in hours and hours of practice with a demo account till you feel you have a strategy and are profitable. Being profitable is having a streak of more wins than losses consistently for a long duration. So let’s say you have done this and are ready to move on to the next stage. That’s moving on from using a demo account to a real and live trading account. It will be advisable to use an amount that doesn’t mean much to you, one you are willing to lose. This amount will vary per person but if you can lose one hundred dollars ($100) or equivalent start with that. For someone else, this amount could be less or more.
Trading a 0.01 lot size to grow your account
Start with one hundred dollars and use the 0.01 lot size. Doing this prevents you from blowing your live trading account with one trade. Practise taking out trades and sticking to your plan. Yes, you need a plan and you’ll need to stick to it. Trading is said to be a get-rich slow method, doing otherwise can lead to not sticking to plan and over trading, which will lead to losing everything.
You really need to have a plan and a strategy to prevent you from jumping into every trade. When you have a plan, you wait for your setup and stick to your risk management. This will help you build consistency, and master your psychology and emotions.
When you are doing this and everything is going well, meaning you have grown the account from about one hundred to two hundred, you can now add more or just keep growing it. Just don’t go crazy and throw your whole life savings in there.
Losses are part of trading so don’t be afraid of failing, let failure teach you a lesson and don’t give up. Go back to the drawing board, backtest and learn more. All the best in your trading journey.
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