What Is The Minimal Amount To Start Forex Trading?

This article is for educational purposes only.

This question depends on the type of trade you are. When I started trading, I trade all the timeframe. For those who do not have prior knowledge of forex. There are different time frames in forex trading: 1H, 2H 4H, 1D,1W, and 1M.

The H stands for an hour, the D stands for Day and W stands for a week. I want to make this article as short as possible. So if you know nothing about forex, you can read my previous articles or better still comment on any topic you want me to cover.

During those early days, I traded any timeframe, I just wanted to make money. But this is wrong, you must for a timeframe that matches your personality. For me, it is the 4H timeframe.

Now, this is the part where you ask why. That is because I am a swing trader. Swing trader. Who is a swing trader? I like to trade on the wave of the market, a swing trader can be in position for a week or at least three days.

Now there are different other types of traders, which include: day trader, scalpers, swing traders, and position traders. Day traders only stay on a trade for a day. While scalpers can only stay in a position for 5minute.

Thus, because these different traders, trade different time frame, they will all require different startup money. For a scalper, staying only for 5minute, the price will not move more than 150pip. Therefore, a small startup fund will be required, like say 30USD. But for a swing trader like me, you will need up to 200USD funds. Position traders will need 500USD because they can stay a trade for 2weeks or more.

'Finally, the higher the time frame the higher the pip movement and stop loss( this is an amount of dollar you want to lose, should the trade not go your way). So, I will say demo trade on the different timeframes, find the timeframe you are comfortable with, and use a dollar amount that will enable you to trade even if loss your first ten trades.