As most people agree, forex is one of the best ways to earn a lavish income in the shortest period. However, we often hesitate to get into the forex market because we think that we do not have enough money to get started. However, it is not true that you must have a lot of money to start trading. It may sound unbelievable, but you can start with only $300 and take it to a large amount like $30,000.
Is It Really Possible? Things to Keep in Mind
Having the right mindset
Mindset is everything when it comes to forex trading. I always make sure to have the right mindset before I enter the market. Otherwise, I will lose more than I gain. If you are a trader, you must keep in mind that although forex trading is a great way of earning money, it can also take away everything in an instant. You may end up losing all the money in your account by making even a tiny mistake. It is a must to be prepared for losing money so you can try and avoid risk management. For risk management, traders also need to learn about entry and exit points. With the right entry point, it is possible to generate profits instantly. It means that you can even turn your $300 into $30,000 with the perfect entry point.
Choosing the Right Broker
In forex trading, choosing the right broker is the primary key to be successful. Many brokers offer great services like small spreads and high leverage. I have also seen brokers that offer a minimum of $10 every time I want to deposit funds in my trading account. However, there are some sketchy brokers as well that you need to look out for. If you can find a regulated forex broker that is ideal for your requirements and standards, then you are all set to start forex trading.
Employ the Ideal Trading Strategy
To be a successful forex trader, one must have good knowledge about how the market works. I can find the right trading strategy only when I understand my own requirements, as well as the price movements in the market. With the right execution of the right strategy, gains can be limitless. You should always keep in mind that all strategies work differently from each other. A strategy that does not work for you may work for another trader. If you want to find the perfect strategy suitable to your requirements, try to understand the concept of the strategy first. When you understand the concept, it is time to master its execution. Forex trading is a profession just like any other profession and it needs a lot of time to master it. Remember that money is not the only thing you are investing, but you are also investing a lot of time. So, do not let it all go in vain by rushing things. Be committed to trading and obtain as much knowledge as you can before entering the real thing.
Go for Long-Term Trading
When it comes to earning profits, I see long-term trading to have a lot more potential than day trading to help me gain in trading. You need to have the patience to turn your $300 to $30,000 in forex trading.
Long-term trading is not trading for just a few days. You may need to hold your trade for weeks or even months. It indeed requires strategy, a lot of patience, and persistence, but with long-term trading, you can achieve your goal.
Stages of the journey from $300 to $30,000
$300 is the minimum amount you need to start your journey of forex trading because it is required to open a mini forex account. While trading a mini account, the lot sizes are 10,000. It means, when you trade one mini lot, you trade 10,000 worth of currency, for example, $10,000. The perk here is that you do not need $10,000 to control the lot. The broker would allow you to trade a mini lot if you have $100 on margin. Hence, you can trade $10,000 with only $100 in your account.
Keep in mind that you can trade only one mini lot with $300 in the account. Now, if you continue winning your trades and gain money, it is great. However, if you encounter loss and go below $300, be careful about your trades.
By winning trades, you can reach $400. It is time to move on to step two, which is trading two mini lots on trades. It will help you earn twice as fast as before. However, if you lose trades and it results in dropping your account below $400, revert back to step one and trade one mini lot.
You should take the next step when your account reaches $600. This is when you can start trading three mini lots. You can shift to trading four mini lots when the account reaches $900. Continue increasing your trades as it is displayed on the table below –
When you reach $10,000, it is time to take a big step. You can stop trading mini lots now, and instead, go for regular lots. All you need to do is changing your account type from mini to regular. You can open a regular account with $2,000. However, it is not recommended to open it unless you have $5000 in your account, while $10,000 is a safe number. Proceed with your trades as displayed in the table below –
So, as you can see, it is not impossible to reach $30,000 even when you start trading with a very small amount like $300. All you need to do is following the steps with patience. Make sure you do not rush any step. As mentioned earlier, always remember to revert back to the previous step and decrease your number of lots if you lose money and the account drops below the amount required for the particular step.