HOW MUCH TRADING CAPITAL DO YOU NEED FOR FOREX TRADING - PowerPoint PPT Presentation

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HOW MUCH TRADING CAPITAL DO YOU NEED FOR FOREX TRADING

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Everyone knows that, but how much does one need to get started in Forex trading? The answer largely depends on how you are going to approach your new start-up business. – PowerPoint PPT presentation

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Title: HOW MUCH TRADING CAPITAL DO YOU NEED FOR FOREX TRADING


1
HOW MUCH TRADING CAPITAL DO YOU NEED FOR FOREX
TRADING
  • Reference
  • https//www.platinumtradingacademy.com/

2
Index
  • How Much Trading Capital Do You Need For Forex
    Trading
  • First
  • Second
  • Finally

3
How Much Trading Capital Do You Need For Forex
Trading
  • It takes money to make money.
  • You need Trading Capital.
  • Everyone knows that, but how much does one need
    to get started in Forex trading? The answer
    largely depends on how you are going to approach
    your new start-up business.

4
FIRST
  • Consider how you are going to be educated.
  • There are many different approaches to learning
    how to trade classes, mentors, on your own, or
    any combination of the three.
  • While there are many classes and mentors out
    there willing to teach Forex trading, most will
    charge a fee.

5
  • The benefit of this route is that a well taught
    class or great mentor can significantly shorten
    your learning curve and get you on your way to
    profitability in a much shorter amount of time in
    comparison to doing it all by yourself.

6
  • The downside is the upfront cost for these
    programs, which can range from a few hundred to a
    few thousand dollars depending on which program
    you go with.
  • For many of those new to trading, the resources
    (money) required to purchase these programs are
    not available.

7
  • For those of you unable or unwilling to pony up
    the cash for education, the good news is that
    most of the information you need to get started
    can be found for FREE on the Internet through
    forums, brokers, articles and some websites.
  • As long as you are disciplined and laser focused
    on learning the markets, your chances of success
    increase exponentially.
  • You have to be a gung-ho student, if not you will
    end up in the poor house.

8
Second
  • Second is your approach to the markets going to
    require special tools such as news feeds or
    charting software? As a technical Forex trader,
    most of the charting packages that come with your
    brokers trading platform are sufficient (and
    some are actually quite good).
  • For those who need special indicators or better
    functionality, higher end charting software can
    start at around 100 a month.

9
  • Maybe you are a Fundamental trader and you need
    the news the millisecond it is released.
  • Well, instantaneous and accurate news feeds can
    run to a few thousand dollars per month.
  • Again, you can get complimentary news feed from
    your Forex broker, but for some, that extra
    second or two can be the difference between a
    profitable or unprofitable trade.

10
Finally
  • You need money/capital/funds to trade.
  • Retail Forex brokers offer minimum account
    deposits as low as 25, but that doesnt mean you
    should enter immediately.
  • This is a capitalization mistake, which often
    leads to failure.
  • Loses are part of trading, and you need to have
    enough capital to weather losses.

11
  • So how much trading capital do you need?
  • Ideally, more than 50,000, but lets be honest it
    really depends on what type of trader you are and
    how often you will be looking at the computer
    plus how much can you afford to lose?
  • Below are the gross income data and other
    supporting data generated by the PREMIUM SERVICE
    in 2016.

12
Premium Service 2016 
  • PREMIUM SERVICE 2016
  • 2016 completed TOTAL TRADES 7071
  •  
  • MICRO LOT TRADING
  • Single-Lot trades cost 0.10 cents each
  • 512 trades cost to trade 51.20 income generated
    1,120.90.
  •  

13
  • MINI LOT TRADING
  • Single-Lot trades cost 1.00 each
  • 512 trades cost to trade 512.00 income generated
    11,209.00
  • STANDARD LOT TRADING
  • Single-Lot trades cost 10.00 each
  • 512 trades cost to trade 5,120.00 income
    generated 112,100.00

14
  • From my perspective in 2017 the monies
    required to operate
  • MICRO LOT ACCOUNT you need up to 5,000.00
  • MINI LOT ACCOUNT from a minimum of 5,000.00 to
    20,000.00
  • STANDARD LOT ACCOUNT above 20,000.00
  • It is common knowledge that most businesses fail
    due to under capitalization, which is especially
    true in the Forex trading business.

15
  • I know that many people will say a minimum of
    50,000.00 is required, but in the real world
    this is simply NOT always feasible as not
    everybody has access to that amount of money.
  • I have proven that with single-lot trading you
    can make money from Forex Trading with smaller
    balances using trade disciplines.

16
Thank You
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