At the beginning of learning forex trading, most traders will be confused to determine how ideal initial capital? How many trading lots? Well, here are some benchmarks that can be used.
Intraday trading where trading positions are opened and closed on the same day is very popular among both beginner and experienced forex traders. But, at the beginning of learning forex trading, most traders will be confused to determine the benchmark sizes needed to execute buy and sell on the trading platform. What is the ideal starting capital? How many lots should you order? Well, here are some benchmarks that can be used to practice intraday forex trading for beginners:
1. Ideal minimum capital of 200-500 dollars
Many forex brokers offer opportunities for forex trading with super low capital, even just 1 dollar can be said. However, know that it is almost impossible to profit with such small capital.If the change is the free capital of the bonus broker, it doesn't matter because it can be considered as a training account only. But if you have plunged into real trading, then small capital will be very inadequate. Some traders consider the minimum capital for profit is 1000 Dollars. It could be like that, but according to some sources, the threshold is actually around 200-500 Dollars. Of course if it is bigger than that then there will be wider trading opportunities that can be taken, but if it is still a beginner, it is not recommended to invest too much funds.
2. Trading 0.01 Lot
No matter how much your initial capital is at the beginning of learning intraday forex trading, one rule that should not be denied is: open each position with only 0.01 lots.Tiny? indeed 0.01 lot is very small and will take a long time to reach high profit if it continues to trade with that size. However, remember that you are just learning, and the deposited capital is real money that you have previously collected with hard work. Do not rush to profit. Practice your patience by diving into the market using the lot 0.01 first.
This does not guarantee your trading account will not expire. But with this rule, your account will likely last longer and there will be more things to learn.
3. Follow the Specific Trading System
One of the biggest restrictions in trading is to open a careless trading position, based on a hunch, or just about. Therefore, no matter how simple your trading system is, what matters is first. With that, you can train discipline and see your ability to follow the rules of forex trading.4. Don't Use Timeframes Too Small
Although many traders can profit by using a 5 or 10 minute timeframe, but this is actually not suitable for beginners because it moves very fast, so you might not realize why it suddenly got a loss. It would be more appropriate to practice trading on a slightly high timeframe, but not too high, precisely between 15 Minutes, 30 Minutes, or 1H.©The three timeframes allow intraday trading, but traders can also monitor movements and market conditions more closely.
5. Don't trade too often
At the beginning of learning forex trading, because it was so excited, every time I wanted to open a position and take profits continuously. This is the passion that needs to be controlled. Hold your passion for trading, make sure you open and close your position to about 3-5 times a day. Suppose that volume is a target; if you have traded 3-5 times, it does not matter whether the total profit or loss results, it is time to close the laptop then go watch a movie in the cinema.Good luck!