How Much Money Do You Need to Invest in the Forex Market
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#434: How Much Money Do You Need to Invest in the Forex Market
In this video:
00:24 – How much should I invest?
00:50– When I started trading
01:25 – You don’t need a lot of money but you do need to learn how to trade
02:30 – Take a look at Blueberry Markets
03:20 – How do I make a living from my trading?
04:07 – Trading with a Prop firm
04:50 – Other ways to earn income from your trading
05:50 – Get onto one of my free webinars to learn more
06:33 – Feel free to share this video and podcast
How much money do you really need to invest in the Forex market to make it worthwhile? Let’s talk about that and more, right now.
Hey traders, Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 434.
How much should I invest?
I got asked a question this week by a guy in the US and he said to me, “Andrew, how much money should I really need to be investing into the Forex market to make it worthwhile? To make my time worthwhile to do this?” And it’s an interesting question, because most people think you need a large amount of cash in order to be a good trader, in order to make it worthwhile.
When I started trading
And when I started trading some 17 years ago, I thought I would need like hundreds of thousands of dollars. And because I lived in New Zealand, I thought that I would need to put like a $100,000.00 on the New Zealand/US dollar and wait for it to rise or fall, and let’s say it was at 70 cents wait for it to rise to 75 cents, take that money out and then go and do the same thing again. That’s what I thought Forex trading was. And I think a lot of people do the same thing; they think you need a large amount of money, large amount of capital, in order to make any significant gains.
You don’t need a lot of money but you do need to learn how to trade
Now, the great news is the reality is far from that, it’s the complete opposite. You don’t need a lot of money, but what you do need to do is learn how to trade properly. With that, you need to realise that there’s two things that affect you with your trading: one is your head, and the other’s your heart basically your emotions. And if you can control your emotions by having very low-risk trades and high reward to risk trades, things you hear me talking about all the time, the great thing about the Forex market is you use leverage. With leverage, you only need small movements but you need to have good, consistent, steady gains with low risk and low draw down. So small losses lead, reasonably large gains. That’s the key to making your trading work. You need a strategy to actually be able to do that.
Then when you look to live with real money, I suggest somewhere between $1,000.00 and $5,000.00 or pounds depending on where you live in the world. And there’s lots of other ways that you can make money through your trading, and I’ll talk about that shortly. But one thing that I would strongly suggest if you are at that stage where you’re ready to go to real money to a live account.
Take a look at Blueberry Markets
Have a look at Blueberry Markets over in Australia. They’re a great broker, highly successful brokerage team, great people. You will not find better customer service out of a broker. I challenge you to find a better customer service anywhere. They’re fantastic. Really look after their clients. Decent, honest broker. Good, tight spreads. Regulated, everything that you need. So unless you’re in the US and I don’t think you can open an account with them, there may be a few other countries around the world, but pretty much all other countries can open a live account through Blueberry Markets. Check them out, I’ll put a link here as well.
So once you go live, and you understand the emotions of trading on real money… Because losing money hurts. You get great emotions in a positive way when you have some gains.
How do I make a living from my trading?
But you’re thinking, okay how can I make a living out of $1,000.00 to $5,000.00 on my account? Even if I made 100% in a year, I might be making $5,000.00. I can’t make a living, Andrew. That’s not an issue. What you can do then is you can do what a lot of our clients use is they use prop firms. A prop firm is where you start with a relatively small amount of money, of someone else’s money, another company’s money, on a profit share basis, using their rules, draw downs, et cetera. That’s where you need assistance like ours that has good steady returns with low risk and low draw downs. What you can do is you can build up to accounts; some of them are in the millions of dollars, I believe. But I know a lot of our clients are trading prop firm accounts in the hundreds of thousands of dollars.
Trading with a Prop firm
Now let’s say, for example, you’re at $100,000.00 with a prop firm and you’re a 60-40 revenue share, so you keep 60%, they keep 40%. And let’s say you make 10% in a month. You’re not going to do that all the time, but for round numbers let’s call that 10% in a month. That means you’ve just earned $6,000.00 in that month for knowing how to trade, and it’s on someone else’s money. Well, you start doing that on several prop firms and then you’re proving to them that you can trade and you move up to $200,000.00 or $300,000.00, whatever it might be. And you can see there how you can start to gain quite substantial incomes through not even trading your own money.
Other ways to earn income from your trading
Now on top of that you might want to invest some of that back into your own account. You could start trading for a few friends and family possibly, of course look into that legally to see what the regulations are wherever you live. But you can sell trading signals, you can have copier accounts, you can do all sorts of things. But you’re just trading once. You’re only trading on one account and behind the scenes you can have the set up to copy on other accounts all these kind of really cool features. But it’s no extra work for you, whether you’re trading on a $1,000.00 account or a combined million dollar account.
But the thing is, the question at the beginning was how much do I need to invest? Well, you need to invest your time and some money to learn how to do this. But once you can do that, your actual own real money that you invest doesn’t have to be that big for some quite incredible returns. So there are ways to do this, it all comes back to knowing what you’re doing, knowing how to trade first. And that’s where we can step in and help you.
Get onto one of my free webinars to learn more
So each week, if you’ve not been on my free webinars we hold a free webinar for new traders and a free webinar for the more experienced or frustrated pulling your hair out ready to give up type trader. There’s lots of those out there I know. So it doesn’t matter which you’re on, pick the right webinar for you. I’ll put again a link to both on this post here. Jump on to one of them, look what we do, how we can help train you, teach you. Come on board with our community and make this work for you. So I hope that answers the question. I hope that surprised you as well in a good way, that you don’t really need a great deal of your own money to do very well out of this. Again, it comes back to the power of knowledge. That’s really what it is. And I hope that helps.
Feel free to share this video and podcast
Feel free to share this video and podcast with anyone who you think may be interested in getting into the wonderful world of Forex, or people that you know that are just frustrated, it’s not working. We can definitely help. This is Andrew Mitchem at The Forex Trading Coach, I’ll see you this time next week. Bye for now.
Episode Title: #434: How Much Money Do You Need to Invest in the Forex Market
Click Here to attend the New Traders Webinar (Less than 6 months Experience)
Click Here to attend the Experienced Traders Webinar (More than 6 months Experience)
Click Here To Learn More About Blueberry Markets
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