How much money should you have in your FOREX acount in order to earn an income?
- Wednesday, January 21, 2009, 13:11
- Forex
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- 3 comments
ej105 asked:
I'm planning to add funds to my account online FOREX and am asked what would be the appropriate amount of money to start with where the customer can generate enough income to earn an income out of my profits. I know just need at least $ 1000 to play in the market but quell'importo is not enough to make money on. What should I have in my account where I can start to compose the small profit that I make here and there?
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You should have at least $100,000.00 in it.
That way you don’t have the extreme risk of using their 50 or 100 to one margin where you lose your entire investment if a currency drops only 1 or 2%.
FOREX Margin, just say NO!
Earning a living with Forex is dependent on three factors. First, your starting account balance. Second, your actual performance level. And third, your living requirements.
If you are opening an account with $500…the answer is no…you will not be able to make a living at Forex. Even $1000, $5000, $10,000 or $25,000 would not be enough of an initial account size to make a comfortable living in the Forex market.
The next area of importance is your skill as a Forex trader or the effectiveness of the strategy that you follow. If you are a 50/50 trader and win on half of your trades and lose the other half you cannot make a living at Forex. If you have the time, the patience, the discipline and the knowledge to make at least 20 pips in 4 out of 5 days of daily trading you may have a good shot at making a living from the Forex market.
I also personally know quite a few conservative Forex hedge traders that consistently make over 8% return per month.
Here is where things get interesting. Let’s say that you have an account of $100,000. If you were to earn over 8% per month and only draw off 4% ($4000) per month you may be able to live quite comfortably with that income level. And your account balance would continue to grow, more than doubling every 18 months.
So I guess a good goal would be accumulate an investment amount of $100,000 before deciding to simply live off of your Forex investment. It is amazing to me how many people are working very hard while they have well over $100,000 sitting in CDs, money market accounts and mutual funds earning only 3% to 10% per YEAR.
The final point to keep in mind is to decide if you want to spend the bulk of your time sitting in front of the computer day trading, or you want to go through the stress of hoping that you guess the news releases correctly as a fundamentals trader. Or would you prefer to be a conservative Forex hedge trader spending about 30 minutes a week to manage an account of any size.
I wish you well and I hope that you can soon realize your goal of generating a comfortable living through Forex trading.
I have an analysis looking the results of different Forex strategies that you may find interesting. It will help show you what is achievable and what is not.
paul
i think u will find help in
i hope this can help