No wonder why inexperienced investors’ first question is usually this: Can I start trading Forex with just $100? Moreover, often, they wonder if it is possible to earn a living by trading Forex? Well, the answer to both questions will be explained in this article. Also, we will share with you five examples. So, keep on reading.
Can I Start Trading Forex With $100?
Yes, you can. Typically, margin trading allows traders to open trades with small amounts of money. However, the live trading is different than trading on a demo account. You may lose through the first or even the second $100 in less time than it took to deposit it. Generally, when it comes to trading Forex, you should not fear any loss. Each loss can help you learn from your mistakes.
So, if you have lost $100 a couple of times, and you haven’t quit, then you are ready to experiment with other strategies. Moreover, the more you practice your skills in live trading sessions, the sooner you will start earning money. First, you will double the account balance. Then you will increase it again. When it comes to trading Forex, time and experience are crucial factors. Also, the key is to learn why you failed. By acknowledging your weakness, you can adjust accordingly.
Further, many experienced investors advise beginners to keep notes on their trades. This way, you can keep track of your weaknesses and strengths over time. For example, have your emotions affected your decision making? What was the feeling you felt when you had trades open? Also, when you write everything down, you will notice if you need to learn how to control your emotions.
Is it Possible to Earn a Living By Trading Forex?
Well, the answer here is the same. Yes, you can. However, it will take years before you can reach this level. Moreover, when you are not afraid to lose money in order to practice, and you are not a quitter, then you can indeed master your trading skills and eventually start earning a living.
By grasping all the little details, there will come a time when you will double your account balance. Also, it is a good indicator if you manage to double your account twice. Once you achieve this, you might be ready to start working towards earning your living by trading Forex.
However, don’t expect to achieve excellent results in a month or two. It might take up to 2 years or even longer to actually see positive results. So, be patient as it takes time. Otherwise, you might experience a spectacular failure.
When Should I Start Trading Forex?
Many investors make the same mistake of not practicing enough on a demo account. Before you risk your own money, it’s wiser to master your trading skills. In other words, you should first open a demo account. By doing so, you can try out your strategies with virtual money. Also, you can try the strategy of other experienced traders.
However, the first thing you need to do is to learn the basics of Forex trading. Understand how the market works. Practice on a demo account because it allows you to become familiar with trading. Also, it will help you decide on whether you want to put in actual money into your traders or you prefer using virtual funds.
Further, you should invest real money if you have done your homework first. Meaning you:
- Have learned all terms and you understand how they are co-related
- Know how the market works
- Have learned the basics of Forex Trading
- Know the bid-ask spread you are facing
- Have practiced on a demo account for a while now
- Study the Charts
- Have understood the volatility and risk involved
The main reason why people start trading Forex is due to the high possibility of being able to make profits. Not only this, but it is possible to earn profits with only a small capital outlay. However, many essential aspects need to be covered first. Otherwise, you will lose everything you have invested in your account balance.