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Author Topic: How To Trade with just $20?  (Read 41541 times)

Offline Eliza Abrams

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Re: How To Trade with just $20?
« Reply #180 on: December 21, 2017, 11:09:49 PM »
Do you know about micro accounts?
Why do you say it's a joke. I think it is a sensible attitude to trading. If people can't trade profitable, better they lose $20 on a micro acc than $20K on live

I was trying to express a similar sentiment. Those accounts exist and people do use them, for training if not for anything else.

Yeah... For something else too.
I'm going to open one more micro account for participating in a contest. Why not? I'll invest just $5 or something like that and win up to $3000. Well, just for fun. Just for fun :)

I'd wish you good luck, but trading isn't a matter of luck, so I wish you success instead. :)

Offline y5nitro

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Re: How To Trade with just $20?
« Reply #181 on: January 20, 2019, 03:33:57 PM »
I fully support newbies who would like to start with $20. I find it as a good approach. They need some time to feel the market and learn trading, so it is better to put $20 at risk than higher amount. During time they can always increase this amount and switch to other accounts

Offline AJCapital

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Re: How To Trade with just $20?
« Reply #182 on: January 21, 2019, 12:21:56 PM »
You should use a cent account.

With $20, you won't have much room for drawdowns, even if you opened the minimum position size, 0.01 lot.

However with a cent account (google it if you don't know what it is), your margin will be equivalent of having $2000 in your account.

Regards,
AJ

Offline Hilapur

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Re: How To Trade with just $20?
« Reply #183 on: February 18, 2019, 09:41:36 AM »
I always believe that you need to focus on the learning aspect than the amount of money invested. It doesn't matter how little money you have. You need to learn the basics and fundamentals of forex trading before investing a large amount of money. You will definitely lose it.

Offline Eliza Abrams

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Re: How To Trade with just $20?
« Reply #184 on: February 18, 2019, 12:32:16 PM »
I too think the best way to do it is to use a cent account. Obviously, your profits will be comparable to your account size.

Offline Loperte

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Re: How To Trade with just $20?
« Reply #185 on: March 12, 2019, 12:35:34 AM »
I also think that cent account would be suitable for your $20 initial investment. Just try to develop good strategy on demo account which can bring you 5-10% per month. You will achieve your target of $100 without any problems but it will probably take you some time

Offline Eliza Abrams

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Re: How To Trade with just $20?
« Reply #186 on: March 12, 2019, 01:57:50 PM »
If a person is a newbie they will probably lose their first account, even if it's a small account. It's part of the learning process, more often than not.

Offline drunkfx

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Re: How To Trade with just $20?
« Reply #187 on: March 17, 2019, 09:44:14 AM »
You should use a cent account.

With $20, you won't have much room for drawdowns, even if you opened the minimum position size, 0.01 lot.

However with a cent account (google it if you don't know what it is), your margin will be equivalent of having $2000 in your account.

Regards,
AJ

It depends on which profit targets you set. You can take high risks and expect high returns or make several low risk trades expecting same profit targets. But remember that transaction costs increase with the number of trades made. That's why I prefer to make only several trades in a month with decent risk taken to save up on costs. Setting SL will help you to keep risk under control.

Offline Ggeyda

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Re: How To Trade with just $20?
« Reply #188 on: April 23, 2019, 11:30:28 AM »
It is true what Drunkfx has mentioned. Transaction costs needs to be accounted, especially when trading such a small amount. So, you need to have very good developed strategy, which is not allowing too much loss and be very careful with leverage trading

Offline Eliza Abrams

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Re: How To Trade with just $20?
« Reply #189 on: April 23, 2019, 03:52:07 PM »
That's a good point. I confess I rarely think of the transaction costs which is a big oversight on my part.

Offline StephanieHalloran

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Re: How To Trade with just $20?
« Reply #190 on: May 01, 2019, 03:58:47 PM »
Automate with robo-advisors. When you only have $100 to invest, the last thing you want is large broker fees. ...
Invest in Dividend Stocks. ...
Invest in short-term cash investments. ...
Lend to others. ...
Invest in your own personal development. ...
Invest in ETFs. ...
Index funds. ...
Buy individual stocks.

Offline Eliza Abrams

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Re: How To Trade with just $20?
« Reply #191 on: May 02, 2019, 03:10:27 PM »
Diversification is great, but most retail traders don't have the knowledge and the funds to invest in that many instruments.

Offline BrandonHolly

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  • Scalper, still learning to trade.
Re: How To Trade with just $20?
« Reply #192 on: May 23, 2019, 03:24:15 PM »
It's pretty hard question to answer. You may start with 20$ but will take time to get 100$. You have to understand that it's 500% of your account. So Bassicaly the newbie have to consider a good money management. Start with 3-5 % of your account on each trade. Always set stop-lose.

Offline grobanjosh

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  • Mostly trade wih EA's.
Re: How To Trade with just $20?
« Reply #193 on: May 24, 2019, 10:40:08 AM »
It's a challenge to start with that amount, it's similar as to learn to how to swim on a kids pool. However let's do the math on a Forex Account:

Use this information for our example:

Microlot = 1,000 units (Minimum lot size)
Example = EUR/USD
Margin (Good faith deposit) = USD$12 per Microlot (Amount to set aside when you place a trade)
Available Margin = USD$38 ($50 - $12)
Volatility = EUR/USD can move on average 110 pips.
Cost of the Pip = $0.10 (On Microlot)
Roundtrip Cost = $0.08 (Microlot)
Spread = 0.5 pips (EUR/USD)

1st you open 1 microlot and the market move against you 110 pips, you lose $11.13 ($11 + $0.08 + $0.05)

Your new balance is $38,87

2nd trade = Same, the market move against you 110 pips, you lose $11,13

Your new balance is $$27,74

3rd trade = Same, the market move against you 110 pips, you lose $11,13

Your new balance is $16.61

4th trade = Same, the market move against you until your balance is $12. At this point the broker activates a Margin Call and close your position.

Offline Hilapur

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Re: How To Trade with just $20?
« Reply #194 on: August 05, 2019, 04:39:04 PM »
Great trading idea from Grobanhosh. I think that you should try it first on a demo account and see how it is going. Since, you are entering market with minimum funds, try to accumulate your profits during time. Grobanjosh, what do you think?

 

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