There is one big and common misconception
among individuals that forex trading requires traders to have big capital and only traders
with big accounts can make money in forex. Well, Is this really true or is it just a
misconception? Welcome to forex monopoly, my name is Daksh
and I am a professional forex trader and CEO of forexmonopoly.com. In this video, we will talk about how much
money do you really need to start forex trading and bust some most common myths regarding
this topic. Myth no.1 – you need big money to make money
in forex. I started trading with $100 then lost
that account and then invested $10,000, and then lost this account too. It took years for me to become successful
and honestly I have blown up a lot of accounts. So, I have traded a small 2 figure account
and even a 6/7 figure account, and trust me when I say this, you don't require huge capital
to earn money in forex. You need a proper mindset and some realistic
goals. I have made money with a small 2 figure account
and also with 6 figure account. Also, I keep on doing these little challenges
over my Instagram, where I convert small accounts into big ones.
Recently, I converted $200 account into
$5000 and I have done this many times in the past. So, if you think you need a big trading account
to make money in forex, have a look at these screenshots. I have the link to my Instagram profile down
in the description, make sure you follow me there for tips related to forex, crypto, and
investing. Myth no. 2 – Only big players make money in forex? Well, that's an excuse which many traders
make to hide their failure. I know that's harsh, but it's the truth.
Big institutional traders do have an advantage
in forex but that doesn't mean they will always win. Both the institutional and small traders have
equal opportunities in the forex market. Yes, big traders may make more money than
small traders but then even the losses will be big. Risk and profits go hand in hand in trading. Small capital or big capital, the risk taken
is the same. It is a common risk management method of not
risking more than 1% of the total capital at any given time on any given trade. What we want to infer from this is that traders
must not get discouraged after they hear that they cannot make it big in forex if they start
with less capital. Traders that look to trading as a get rich
quick scheme will never be able to succeed in it, as they will never be able to manage
risk properly according to their expectations.
For instance, a trader with a capital of $100
will risk $1 per trade, while a trader with a capital of $10,000 will risk $100 per trade. The risk taken by both traders is the same
in relation to the capital at their disposal. Their profits will also vary as their risk
taken varies. The former will profit way less than what
the latter will profit considered their analysis works. Everyone can make money in forex if they have
the skill and the right mindset. If you don't have it, you will end up blowing
even a multi-million dollar account. So, the question is
How much money does one need to start forex trading? The answer to that is,
One can start forex trading with as low as $10.
But then it all depends upon the leverage
one is using and the risk he/she is willing to take per trade. If someone with leverage of 10x is willing
to open an account with $50. It won't work as he won't be able to open
a trade with an account that low. If someone with leverage of 100x is willing
to open an account with $50. It will work, he will be able to open trade
but the problem this time will be that he will have to risk more than 1% of the account
per trade. The next thing you have to look after is the
type of trading style. If you are into scalping, the risk per trade
will be low and so you can use a small trading account. But then if you are into swing trading the
stop loss or the risk per trade will be higher and so you will need a little big trading
account. So, a $100 account will be good to start with
if you are into scalping or day trading and
