What is Forex Capital
If you ask how much capital forex trading or how much capital for forex business, the following explanation will try to determine the amount of capital it.
Maybe for those of you who just plunged into the world of forex or the term just start a forex business, you will find out how much capital forex business. So often ask questions like this:
1. How much capital is required for forex trading?
2. What is the ideal capital for forex trading?
3. How much capital is required for trading to be safe?
Regarding the amount of capital needed in forex trading, it should actually be calculated and included in the trading plan. It means to be associated with what strategy will be used in trading as well as what kind of money management will be used in carrying out the strategy.
But for the new start this forex business may not have been able to arrive at such a stage. But regarding the determination of how much capital forex is in general here are some things to consider:
1. How many times do you want to make transactions?
This way of looking like this is not good as it is certainly our capital will run out, but it is in the early stages of trading although we do not want loss but we must think about what if our capital runs out. If we are definitely going to loss and all our capital will out, then the benefits we can take is his trading experience. We can benefit from the feeling of trading and the lessons of mistakes made.
forex trading opportunities
So, for the trading experience that we get more then the focus is to get the opportunity to make transactions as much as possible. In reality it is undeniable that forex trading is making money with money through a transaction. That is every transaction is one chance to make bigger money. So it can be concluded that in forex trading, capital that we will exchange with opportunity, that is opportunity to make money-making transactions.
So Capital = Cost per transaction X Number of transaction opportunities
Transaction costs are the lost capital when making a single transaction. How to calculate, please open position 1 lot then notice how much change of capital for every one pips. From there you can multiply between changes in capital per pips by the amount of pips losses.
The theory:
If the leverage you use is 1: 500 then for trading of 1 lot required a margin of $ 20, and every move price 1 pips of your capital will increase or decrease by $ 1. With 20pips profit target and stop pips 20 pips then if your transaction loss, you lose for $ 20.
If you want 10 times the transaction before your capital runs out, it will cost $ 200.
2. The merit of profit gained
Our goal of trading roughly is to earn income that we can enjoy or that can be used to meet our needs. What does it mean if we trade a day spent several hours while the results can not be enjoyed or not enough to finance our lives.
capital forxex deserve
Besides profession trader is a profession that we expect to make more money than the amount we generate as employees.If you are currently employees with salary Rp.4 million a month ago you decide to stop working and switch to full time trader, what is it worth if profit a month are you only $ 200? Or if this time by working as an employee with 8 hours working hours with a salary of Rp.4 million / month, then you trade overnight as much as 8 hours with small transactions that only generate $ 100 / month, what profit you get is proportional to your time?
We should think that the trading result should be bigger than your salary if as an employee because the trader's profession is level with lawyers, doctors, accountants and others who are independent, have no boss and are not dependent on superior or company. In addition, trading results should be commensurate with the time we spend to make trading. From such an understanding then we can now set monthly profit targets.
Next ask ourselves, what is it worth we expect a great result that could exceed your income if your position as an employee while you make small transactions?
Whereas the determinant factor of profit is:
1. Lot size per transaction
2. The number of pips earned during a win transaction
3. Frequency of the transaction (number of transactions)
Which if formulated, Total Profit = lot size per transaction X capital change per pips X number of pips earned X transaction frequency
From here it can be concluded that to get a decent trading results enjoyed, required a more appropriate capital so that we can make transactions with the size of the lot is appropriate for the achievement of profit targets.
3. Security of exposed Margin call
Many of us assume that the capital determines our security from being hit by a margin call or from bankruptcy. As if the greater our capital will be more secure. In case we understand more deeply, I am sure you agree that security can we can only if we master the science of trading.
forex capital security
Opinion that the greater the capital will be more secure this applies only to traders who use money management type martingale. The rule of the martingale system is how many times loss, how much capital lost during the last transaction win, then the result is profit. That's why the greater the capital he can perform multiple transactions to get 1 winning transaction.
So, for those of you who will not use martingale trading, you must be sure that the security depends on your satisfaction in the science of trading. The amount of capital we can use to hold the floating loss with a reasonable stoploss distance, from the condition of the market that is not regular so that when the market moves back regularly our position is still open and will generate profits.
That is the consideration to answer the question of how much capital forex, if you ask on Siembah.com the amount of forex capital according to the above considerations then Siembah.com will suggest for $ 400.
The reason is that with a capital of $ 400 you have the opportunity to trade more with the size of 1 lot of transactions, so the profit of trading results can be more enjoyable enjoyed, and with equity $ 400 distance exposed enough margin call.
You may ask like this:
Why not advise his forex capital of $ 1000? or all $ 5000?
The question is are you sure you can manage that much capital and make it bigger? If not sure, you can follow the advice of Siembah.com. hopefully useful.
So what if you do not have as much capital as suggested?
Provide the appropriate capital that you can prepare. But if you seriously want to cultivate forex business, you will definitely try bigger. The minimum capital of the seriousness of this business is $ 100.
Hopefully this discussion is useful and can re-arrange from the beginning of our trading business so that it can produce profits that are comparable to our business to pursue the forex business.
Question about how much capital forex trading now you can already answer it yourself. Happy trading
Maybe for those of you who just plunged into the world of forex or the term just start a forex business, you will find out how much capital forex business. So often ask questions like this:
1. How much capital is required for forex trading?
2. What is the ideal capital for forex trading?
3. How much capital is required for trading to be safe?
Regarding the amount of capital needed in forex trading, it should actually be calculated and included in the trading plan. It means to be associated with what strategy will be used in trading as well as what kind of money management will be used in carrying out the strategy.
But for the new start this forex business may not have been able to arrive at such a stage. But regarding the determination of how much capital forex is in general here are some things to consider:
1. How many times do you want to make transactions?
This way of looking like this is not good as it is certainly our capital will run out, but it is in the early stages of trading although we do not want loss but we must think about what if our capital runs out. If we are definitely going to loss and all our capital will out, then the benefits we can take is his trading experience. We can benefit from the feeling of trading and the lessons of mistakes made.
forex trading opportunities
So, for the trading experience that we get more then the focus is to get the opportunity to make transactions as much as possible. In reality it is undeniable that forex trading is making money with money through a transaction. That is every transaction is one chance to make bigger money. So it can be concluded that in forex trading, capital that we will exchange with opportunity, that is opportunity to make money-making transactions.
So Capital = Cost per transaction X Number of transaction opportunities
Transaction costs are the lost capital when making a single transaction. How to calculate, please open position 1 lot then notice how much change of capital for every one pips. From there you can multiply between changes in capital per pips by the amount of pips losses.
The theory:
If the leverage you use is 1: 500 then for trading of 1 lot required a margin of $ 20, and every move price 1 pips of your capital will increase or decrease by $ 1. With 20pips profit target and stop pips 20 pips then if your transaction loss, you lose for $ 20.
If you want 10 times the transaction before your capital runs out, it will cost $ 200.
2. The merit of profit gained
Our goal of trading roughly is to earn income that we can enjoy or that can be used to meet our needs. What does it mean if we trade a day spent several hours while the results can not be enjoyed or not enough to finance our lives.
capital forxex deserve
Besides profession trader is a profession that we expect to make more money than the amount we generate as employees.If you are currently employees with salary Rp.4 million a month ago you decide to stop working and switch to full time trader, what is it worth if profit a month are you only $ 200? Or if this time by working as an employee with 8 hours working hours with a salary of Rp.4 million / month, then you trade overnight as much as 8 hours with small transactions that only generate $ 100 / month, what profit you get is proportional to your time?
We should think that the trading result should be bigger than your salary if as an employee because the trader's profession is level with lawyers, doctors, accountants and others who are independent, have no boss and are not dependent on superior or company. In addition, trading results should be commensurate with the time we spend to make trading. From such an understanding then we can now set monthly profit targets.
Next ask ourselves, what is it worth we expect a great result that could exceed your income if your position as an employee while you make small transactions?
Whereas the determinant factor of profit is:
1. Lot size per transaction
2. The number of pips earned during a win transaction
3. Frequency of the transaction (number of transactions)
Which if formulated, Total Profit = lot size per transaction X capital change per pips X number of pips earned X transaction frequency
From here it can be concluded that to get a decent trading results enjoyed, required a more appropriate capital so that we can make transactions with the size of the lot is appropriate for the achievement of profit targets.
3. Security of exposed Margin call
Many of us assume that the capital determines our security from being hit by a margin call or from bankruptcy. As if the greater our capital will be more secure. In case we understand more deeply, I am sure you agree that security can we can only if we master the science of trading.
forex capital security
Opinion that the greater the capital will be more secure this applies only to traders who use money management type martingale. The rule of the martingale system is how many times loss, how much capital lost during the last transaction win, then the result is profit. That's why the greater the capital he can perform multiple transactions to get 1 winning transaction.
So, for those of you who will not use martingale trading, you must be sure that the security depends on your satisfaction in the science of trading. The amount of capital we can use to hold the floating loss with a reasonable stoploss distance, from the condition of the market that is not regular so that when the market moves back regularly our position is still open and will generate profits.
That is the consideration to answer the question of how much capital forex, if you ask on Siembah.com the amount of forex capital according to the above considerations then Siembah.com will suggest for $ 400.
The reason is that with a capital of $ 400 you have the opportunity to trade more with the size of 1 lot of transactions, so the profit of trading results can be more enjoyable enjoyed, and with equity $ 400 distance exposed enough margin call.
You may ask like this:
Why not advise his forex capital of $ 1000? or all $ 5000?
The question is are you sure you can manage that much capital and make it bigger? If not sure, you can follow the advice of Siembah.com. hopefully useful.
So what if you do not have as much capital as suggested?
Provide the appropriate capital that you can prepare. But if you seriously want to cultivate forex business, you will definitely try bigger. The minimum capital of the seriousness of this business is $ 100.
Hopefully this discussion is useful and can re-arrange from the beginning of our trading business so that it can produce profits that are comparable to our business to pursue the forex business.
Question about how much capital forex trading now you can already answer it yourself. Happy trading
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