A very common Forex related question is ‘How much money do I need in my Forex Trading Account to start trading with?’
My initial response is often ‘Have you earned the right to trade a Live Account in the first place?’ Now that may well sound a little pompous but to me there seems little or no point in trying to trade Forex in a Live Account until you have demonstrated that your chosen strategy actually works and that you are disciplined enough to make consistent profits in a Demo Account first.
Agreed that there are big differences between trading a Demo and a Live Account mainly around controlling emotions such as Fear and Greed, but why enter the Live Markets if you haven’t yet established whether or not you have a definitive edge?
However, once you have demonstrated a consistently profitable track record in a Demo account (3 – 6 months or even a year to 18months) then you do need to think about how much money you need to start with. This is my advice: Continue reading