Interview 2: How Much Investment Do I Need To Begin Trading?

[DickSeng]

@BSSMDBS I dont think so. The trade will automatically close. But you are seeing in the wrong way. Its not one trade that will give you the money. It is over a 100 trades with net wins that give you your profit. Put 1-2% per trade. If you average 10% a month, year end your equity would be approximately 300%. This is not a quick get rich game but rather a business.

[BSSMDBS]

Hi, could you tell me how much you could lose in spread betting if you put £1000 in to an account with a ratio of 1:100. Is it possible to lose more than the initial £1000 deposit in one trade if you used up all of your leverage?

thanks

[Gafnndotcom]

Great video also check gafnn dot com

[KungFuChess]

I like that blank look on his face after he catches himself saying the word "gambling"

[CDPuffer]

I look at is as playing poker. Yes, you can loose your shirt if you don't know what you are doing but you can also learn how to play the game. There are professional poker players and professional traders, there aren't any professional slot machine players. You can learn to play the market like you can learn to play cards.

[G5ive1]

@KungFuChess The pause and facial expression are due to the spokesman attempting to comprhend that which is being said on his speakers, in reference to the market (News) possibly. watch again.

[peruface]

Only trade about 3-1, and only risk 2-3% of Your capital

[stuntman2600]

loose a £1000, thats 50% of your balance. i dont think so! you should never trade at 100-1, the professionals only trade about 3-1, and only risk 2-3% of their capital.

If you forget to put your stop losses on, you could blow it all in just a few trades. Dont get greedy and only risk a small amount, it will take longer but if you keep your winnings in there it will soon rise.

[LitheInvestments]

500:1 leverage means 20 pips blows your account, not including the pip spread against you

[DJHELLRAZA]

andy i wouldnt even answer this mans Q's ive been tradeing for 6 mouths off a ECN Broker masterforex makeing 500 a week on 0.50 lots because my capital was only 3,000 st8 Scalping...

[FXThug]

100:1 is a lot, Most people do 4:1 bit more for intraday

[matgetah08]

This show greed..!! Putting all monitors in front with 24 hours stick on them..No freedom in life..

[BluePin75]

I personally trade on 25K, with max 4:1 (usually 2/3:1 leverage). 100 to 1?? Man, that's staggering,,,way too much. 10:1 is way too much too! You'd want to be very experienced and patient for the right trades

[BluePin75]

Interesting but he's right. If you have a good system and wait for the tightest best place to enter, very close to your stops in trades that will either move in your direction very quickly or it will give you very quick warning to get out, then there's no problems. Keep a journal, print out your charts, have your best setups and a checklist so you don't IMAGINE A TRADE, get in and get paid, get out! Depends on your time frame though. High leverage may be better for short traders, like myself.

[tywilliams100]

It sounds so great. A panacea to all your capital problems. It wont be. Leverage is not the answer. oh as as for the $1000 you put up - that wont last long if you have a leveraged postion go against you which kind of happens unless you post your trade at exactly the right time - which not amount of info / data will identify for you.

[Andyoyo]

ur right I didnt understand how forex when I made this comment. High leverage is common in forex because daily changes are in fractions of a percent many times

[Andyoyo]

I wouldn't recommend even 1:2 leverage it's too easy to blow your account

[xtmotorcycle]

There's even some that give 1:500 leverage :P

[melvinh007]

@xtmotorcycle - do you mean 500:1? If so, then that forex company need to comply with the regulations. Fund Managers can not offer that amount of leverage or they will be shut down now a days.

[pomp0nnette]

Great advice, 100 times leverage...100pips and you're wiped out.that's how most of the people lose their money on the forex market, even if it's just small amounts.that's a really really hard job, stop saying the contrary and fooling people please!

MAking money consistently and over a long period is almost impossible with a 100X leverage, even with less...

[arseneremy]

Great explanation on how leverage in Spot Forex works but you didn't answer the question in the title. To answer the question, I would've added exact dollar amounts in there. As an experienced full time trader, I would summize trading minimum $20k per standard lot traded using max 2% risk/trade giving youmax stop of 40 pips per trade. Given volatility nowadays, one may need to reduce lot positioning in widening stop losses. Great vid and absolutely LOVE the trading room!

Your friend,

Arsene