$100 forex strategy

Can You Really Start Trading Forex with $100 or Less?

The answer to this question is, yes. However, the real question should be – Can I really start trading Forex with less than $100 and actually avoid the need to re-deposit? The answer to this question is also yes, but there‚Äôs a lot more that you’ll need to know in order to make that work. So, without further ado, let’s get started!

Are you ready for the big secret to succeeding in Forex? Net profits on 5 to 10 pips daily. That’s it? Yes, that’s it. There is no need for setting huge goals, just grab your 5-10 pips and you’ll get there. How do I do that, you ask? By using a reliable trading strategy. Or perhaps a few reliable strategies that can be used over and over again throughout the trading day. The goal will be to lock in some fast profits and then stop trading for the day. Get in, get profit, and get out.

Here’s the problem that most traders have, or should I say create. They try to earn a million dollars in a single day. While there is nothing wrong with having goals (all traders do), the more reliable path to becoming a millionaire from Forex trading is the slow and steady approach. Slow and steady requires self-discipline. Starting out with $100 or less is already going to be a challenge, so you will need to be disciplined and continually remind yourself that even small profit amounts will eventually add up to large profit amounts.

Each month, you’re going to be provided with approximately 20 days for Forex trading. That means there are around 220 days for trading each year. Now, do just a bit of math and you’ll quickly see how profits can add up and compound over that period of time. Even with starting out with just $100 in your FX account, it is possible to eventually be earning thousands each week. Do you know of many other businesses that allow you to start with just a few bucks and potentially become a millionaire within the span of 6 months to one year?

Is it really that simple? No, not exactly. There will be losing days now and again, and these will of course set you back a bit. On the flip side, there will also be days when you earn more than your goal. Those days will help you to recoup losses and will put you ahead of schedule if you have more good days than bad. Realistically, it should take about a year and a half to earn your first million from Forex trading. Even so, I believe that most people would say that they would happily wait that amount of time to earn a million.

The bottom line is that you can start with very little money and become a millionaire. Discipline, one or more solid strategies, and a willingness to be okay with cashing in on just a few pips a day will get you to where you want to be. Start now. Don’t wait even one more day. The sooner you start trading, the sooner you will become the next Forex success story.

Gambling

Trading or Gambling? The Honest Truth about Forex

It is not uncommon for Forex trading to be seen as synonymous with gambling, as it brings with it uncertain returns. In reality, FX trading is based on sound analysis and its results are not left to chance. Those who become Forex traders only have to keep themselves in check in order to run a controlled risk and avoid unwelcome results. Trading is not gambling and they do not run the same risks. Those new to Forex will do well in reading what follows and consider it as they set out to be successful in trading.

Trading Strategies and Market Analysis

Serious and successful Forex traders take the time to analyze the data they have available and establish a trading strategy to follow. Contrary to those who gamble, Forex traders take the time to learn the market and determine milestones to achieve as they trade, thus leaving little to chance. Even though Forex markets can fluctuate, there are some measures that make it possible to mitigate any unnecessary risk. Strategies and market analysis make all the difference as well as choosing the right broker.

Managing Risks

Gamblers are completely unaware of what might happen next; it is all left to chance. In FX trading, this does not hold true. In fact, stop losses and many other tools are available so the trader does not incur monumental losses. On the contrary, properly managing risk may actually result in considerable gains. This attention to risk will allow for the optimization of profits while diminishing risk.

The Balance in Risk and Reward

A big difference between a Forex trader and a gambler lies in the focus on risk. A gambler disregards the risk and focuses on the rewards, whereas the effective trader balances both and has a strong consideration for risk. Being able to assess rewards, risk and market fluctuations is at the heart of establishing a sound strategy for trading. Being blinded by the promise of rewards, like a gambler would, can only eat away at your profits and place you in unnecessary risks.

Keeping Emotions in Check

Time and time again, Forex traders compromise their profits by making decisions based on emotions rather than analysis and facts. Similar to gamblers, greed and fear can blind the person to the point of disrupting the gain to be had by trading. The best Forex traders tend to be calm and understanding of the implicit risk while not allowing themselves to be rattled enough to deviate from their trading strategy.

To the outsider, Forex trading and gambling may appear very similar. There are risk and rewards involved and it appears as though the individual is the one making the call based on chance. In reality, the trader has a lot of information at his fingertips, as well as tools to avoid unnecessary losses. On the contrary, the gambler is forced to leave his hand entirely to Lady Luck. The points made above should be helpful to the novice trader, helping one to know how to conduct oneself as different trading situations are presented.

Who Should or Should Not Be Trading Forex?

If you want to trade Forex, then you must be willing to learn how to trade and be very adaptable. Trading is a skill, the same as many other skills. Once you learn how to trade, you simply know it. While practice does make perfect, not all are willing to actually practice. With that in mind, let’s take a look at who should or should not be trading Forex.

forex brainAre You Smart Enough to Trade?

Knowledge is power, but this does not necessarily mean that only the wisest owls succeed at trading Forex. Anyone can learn to trade. The problem comes in when one wants to trade but does not want to take the time to learn. Are you smart enough? Of course you are. Are you dedicated enough? Only you can answer that question. If the answer is no, then it’s best to save your money and not start trading.

Experience Does Count

It can be tough to break even at first, and even tougher to generate profits when you are new to FX trading. Experience does play a major role in earnings. Over time, traders learn more and adapt to various market conditions and strategies. There will be challenges along the way, and experience can help one to deal with them. If you truly want to earn from the markets, be prepared to remain committed to trading for a long time.

Can You Handle the Emotions?

 

Trading can be emotional. There are highs and lows that come with trading, and these cannot be escaped. The highs some when the markets are moving as you wish, seemingly bending to your will. The lows, of course, come when the losses are adding up. Some of the best traders are the ones that are able to recognize the impact that emotions can have on investment decisions. Even better is the ability to control them. Patience is an absolute must. If patience is not your strong point, start with a demo account and see how well you do.

The Ups and Downs of Trading

Many compare Forex trading to running a business, and that is a good comparison. When you view it as a business, you can eliminate some of the emotion that can cause problems. Any business is also going to have ups and downs as well. Money management is necessary to help you to overcome losses. Do keep this in mind when formulating your general strategy for trading in the Forex market. Analysis is important, but will not prove valuable unless you have a money management strategy in place.

If you are still reading, then you likely now know whether or not you have what it takes to trade Forex. If not, reflect back on the information above and give it some thought. With the will to succeed and some discipline, literally anyone can trade Forex for profit. This is both good and bad, as we know that just because anyone can; it does not mean that anyone will put 100% effort into it. Knowing what it takes to succeed is half the battle, and you now have that knowledge! If you’re ready to start trading, next you will want to pick a broker. Read about our favorite broker here.

Choosing a forex broker

Top 7 Things to Consider when Selecting a Forex Broker

One of the toughest decisions that a trader will make when preparing to trade Forex is which broker to choose. There are currently hundreds of FX brokers in operation, which can make the selection process rather tough. Some are of course better than others, so, how do you choose? The following list will tell you exactly what to look for when screening brokers.

1. Regulation

Anyone who has ever traded (and most who have not) have heard of regulation. Working with a regulated broker does provide some peace of mind. However, it is not always safe to assume that all unregulated brokers are bad. The fact is, some are quite good. If you are considering trading with a broker that is not yet regulated, ask if funds are segregated. If they are, you can consider that a green light to find out more about that broker and consider using them.

2. Spreads

Traders who primarily use 4-hour or daily charts may not consider spreads to be of great importance. However, those who plan on trading with shorter time-frames do need to pay attention to the spreads that are being offered by a broker. Competition among brokers is intense, and as a result, there are some great spreads being offered.

Spread

3. Leverage

Leverage amounts can vary quite a bit from broker to broker. Leverage as high as 500:1 may be offered. Keep in mind that higher risk comes with higher leverage, but if you are perfectly fine with that, feel free to seek out a broker that offers higher leverage amounts.

4. Demo Accounts

New to FX trading? If so, please consider creating a demo account. These are practice accounts which allow you to trade within a trading platform, risk-free. Not only do they assist with the learning process, but they also give you the chance to test out a specific broker. Most reputable Forex brokers now offer demo accounts to prospective clients.

5. Trade Size Options

If you want to avoid financial risk while learning to trade well, pay special attention to the allowed trade sizes. If you want to trade mini lots, micro lots and generally smaller positions, be sure to ask the broker what the smallest allowed trade size is. Brokers such as JAFX currently allow traders to trade micro lots.

6. Minimum Deposit Amount

Nearly every broker has a minimum deposit requirement. However, some have the minimum set very low. If you want to test the deposit and withdrawal process of a broker, it is not a bad idea to deposit a small amount initially. Pay attention to withdrawal fees though, as those could exceed your deposit amount.

7. Charting Software

Most brokers offer the MetaTrader trading platform. There should be no charge to access this highly popular trading software, and it will include a charting package. There are other charting software options out there, so if you do not want to use MT4 (or 5) for some reason, you may need to expand your broker search.
The fact of the matter is that the perfect Forex broker does not exist, but do not let this discourage you, as there are some excellent ones. Broker reviews can provide some insight, as can social media. Commit to doing some homework and your broker selection is sure to be the right one.