What Amount Of Cash Will I Need To Make A Living From Trading Currency Exchange?

For today’s forex-related article, I want to address the problem of how much money you need to succes

sfully earn a crust from trading currency exchange. This is obviously not an easy question to answer, and there is no set rule; but I can shed a little light on the subject.

If you had a large bank of, say, 100,000 GBP to trade with, then of course with the right trading methodology and cashflow control talents, you could quite possibly make, say, 20% gains every year, and therefore make a pleasant tiny income of 20,000 GBP.However, if you simply jump right in with your 100,000 GBP without any trade experience, then you could just as easily lose the lot!

I might suggest that, irrespective of how much money you have available to trade with, you need to begin with a demo account using virtual funds. Trade with this first and attempt to be worthwhile over a quarter or more (if your trading methodology means you only take one or two trades per month, then you must possibly do a longer test). Make sure you make at least one hundred trades before moving on to a live account so that you know that your trading technique is sound.

When you move on to a live account, fund it with 2000 GBP or thereabouts whatever you can afford “but not that much. Continue your trading strategy as before and attempt to be worthwhile for 1 or 2 months. If you are not successful, go back to the drawing board and review your methodology. If you are making regular gains, then you can trade with a larger trading bank and begin to make some real money.

If you do not have any more funds to trade with, then just keep it tiny and slowly build up your bank until it is big enough to start taking a salary out of it. It may take years if you begin with a tiny trading bank “but the principle is always the same whether you have 100,000 GBP or 2000 GBP in your trading bank “you've got to make continual profits. If you can't do that on a demo account, then I advise that you leave your cash where it is.

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