Forex practice trading for teens 500 starting fund?

Question

I have been practicing trading for very little time with a practice account on forex.com It has become quite addicting to me as i am doing it right now. I intentionally started with 500 because that is what i plan on puting in I have had a 10% profit average each day but i have devoted around 8 hours daily. Today I made a killing off of the usd/euro I was told that paper trading is usless because you wont make the same decisions. I agree but i have made myself feel as if this is my money because in a sense it is because if i dont make a profit I dont not plan on put my actually cash in has anyone ever done forex with little money and made a signifacant profit?

Answer 1

Forex traders are notorious for losing as a whole. Is it possible to be succesful, yes but this market is one of the more difficult ones. I know some succesful traders that started with 10K-50K.

The less money you start with the harder it gets to make money due to commisions, slippage, and just inevitable drawdowns. If you start with $500 and buy a minimum lot on EUR.USD which is 10,000 (in eur, its always in the first pair listed in the currency pair) you have placed a trade for $15,000.  Thats 30:1 leverage. If you lose about 30 pips you will be margined out. Considering the spread is (3 pips each way) thats 6 pips total, you literally cannot make a mistake much more than 20 pips. Thats simply impossible. My own stops are set at 30 pips on EURUSD and thats pretty tight for its range.

Also have you considered the interes rates on the 14,500 that you borrow to place that order (its not free money). You will prob pay about $50 of interest per month, which is 10% of your account.  

The odds are not with you, and that is if you have an hoenst broker. A dishonest one will chase your stops to take your positions out and take your money. If you are wondering if a broker is good a rule of thumb is that if they give you 100:1 leverage or more on accts of $250 or $500 they arent reputable at the very least. They basically want your 500 nothing more.

My advice from experience is this, keep practicing until you save up a a few thousand. Look at brokers like Interactive Brokers and Oanda. I use IB. They will give you 50:1 leverage but IB needs a min 5K account. You should avoid trading at more than 20x leverage and preferably below 15X. I trade in between 10 and 20X.

Answer 2

Trust me brother it's much easier if you just buy a trading system; been there, done that. I was trading @ 19 and financially stable by 20; I haven't worked a day since.

What you do (and what I did) is make sure it has a 60 day money back guarantee first; then make sure you can use a demo account. Use the demo account for 59 days and if you see you can make profit you keep the system and invest your real cash. If there's no profit to be made you get a refund; there's literally no risk when buying one.

If you're interested I found reviews of the top 3 Forex trading systems: http://forex-tracer.the-perfect-solution...

Answer 3

Use this: http://technicalanalysisforex.com

My bro makes good money with it... $400/day on average!

Answer 4

It doesn't really matter how much money you have in your trading account, as long as you are making money.

What's good about starting with a small amount is that there is less ego and emotion involved with your trading.

When I was getting started trading forex, I started with only $300. I made good, and was able to grow that account 220% in a span of 14 months. I haven't been that lucky since.

Answer 5

you can start actual trading with such a small capital but you need to educate yourself on how to utilise your limit orders and stop loss rates, else, you may lose your entire capital if the situation turn against your favor.  i would suggest you consider your options in this site.  for a minmum deposit of $100 which you can also use to trade later, you can avail of the services of a personal Account Service manager who will walk you through the various techniques, fundamental and technical analysis while doing your trades. basically, you need to learn the basic strategies for controlling risks so that big losses can be avoided while maximising potential gains.