How much money you need to trade forex?

How much money you need to trade forex?

Does it take a lot to fund your trading account?

We already talked about how much money you are going to need to initially to open your account and start trading forex, but right after your account was opened and trades started to flow, you for sure will experience losses. That means that you are going to have a budget to support your trading account.

So, how much money do you need to stay in forex trading?

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Well, while thinking upon this question you need to take into consideration absolutely all of the possible things that can influence your trading: trading strategy, your broker, the platform you are trading on, time of the day and so on. It is not an easy question to answer – how much does it cost to support a trading account.

I will tell you this – your every-month payments are going to fully depend on your win rate, that’s for sure.

Let’s say that you win 60 trades out of 100. That means that you have a 60-percent win rate. And that is a good number. Now, let’s say that you lose 15 pips on your losing trades and win 20 pips on your winning trades. You are still profitable. With this amount of win rate and winning pips it is quite likely that your account is going to support itself without you having to pour additional money into it.

Here win-risk reward is a pivotal point for both your trading and your risk hunger. One can’t exist without the other, but when you have your money at stake the perspective changes. You start being careful and refuse to take rush decisions. And I say that that IS the way to go.
But we are getting off the track here. We were talking about your forex account funding.

In reality I have read a lot and here what everyone is saying – count your pips and implement your trading strategy correctly, lower your risk hunger and try and increase your win rate to the highest possible percentage and you are not only going not to have to think about additional funding of your account, but will actually be able to make living off of it by turning your initial deposit into thousands of dollars. And that is a real art of trading, right here.