It is little known that starting a forex business with a large capital amounting to millions or even billions does not necessarily lead to huge profits. Success in forex trading does not depend on how much capital you invest. On the other hand, people with less than 1 million rupiah capital can make 100% profit in a week, while people who have invested 100 million rupiah capital can lose their money in a week. The knowledge, experience and persistence of the trader really determines the success.
Use a display account until advanced
Also practice using a display account. Brokers offer demo accounts to novice traders to hone their skills. However, there are still many people who look down on the display label. Although the benefits are great to reduce wrong decisions and losses. If you practice demo account well, you can trade with less capital. Here’s how to play forex disciplinedly with minimal capital:
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Choose a Forex broker with low trading fees
Do not choose to register with a reputable broker in the US or the like, if you only have limited capital, instead choose a forex broker that offers the following facilities.
There is a commission-free feature. or low commission
The minimum spread for major pairs is below 30 pips. There is a swap-free feature.
Make sure your forex broker is licensed by the relevant authorities in their respective countries, such as the local forex regulated by CoFTRA.
You must properly control the following items:
Understand the use of online Forex platforms.
Learn how to analyze and trade forex.
Create a forex trading system and test its reliability yourself.
Using the forex trading system to earn at least 50% profit from the initial capital of virtual funds with a demo account.
Request additional virtual funds from the broker or open an additional demo account with the broker and then start training again from scratch.
If you are ready, you can play forex with small capital, here is how:
Prepare trading capital
The capital in question is not big capital, but cold cash. Cold money is the term for money that is not needed in the near future and can be released during bankruptcy. This is one of the keys to successfully playing forex with small capital, because it reduces the mental burden of making a profit, so you can instead explore more trading opportunities. The amount of capital is up to you, you can use a benchmark travel budget for a birthday or a friend’s medical budget.
Prioritize capital protection
Set a modest Target Profit (TP) and Stop Loss (SL) between 10-25 pips only. Don’t chase profits up to hundreds of pips, even if your capital’s resilience is minimal. As has been emphasized many times before, small capital traders don’t have much room to play. For this reason, if you are here, you should be able to serve. After determining the amount of capital to be used for the actual business, the next step is to determine the amount of consumption and trading.
Limit consumption and transaction volume
Rules regarding these two things should be established from the beginning so that you are not tempted to over-trade or over-use. Please note that for traders with small capital, the use of leverage and excessive trading volume is the most deadly source of loss. If you start trading forex with a capital of 1 million rupees or less, do not use leverage greater than 1:100 or trade more than 0.01 (micro lots) per trading position. Similarly, you should determine the number of trading positions open at the same time. If you use the size of 0.01 lots, but open 10 trading positions at the same time, the risk of loss is still big. We recommend that you only have 1-3 floating points at a time.
Use the high probability symbol
If you can create a trading system with a high Win Rate while practicing on a demo account, you can also apply the system to a real account. Actually, before you start trading, first make sure that the brand you are using can generate at least 60% winning rate. Traders with a lot of capital can manage the system in such a way that they are profitable even if the trading system loses many times. However, traders with small capital should use a trading system with a higher probability of winning (Win Rate) because the room for moving capital in Money Management is very narrow.
HOW TO PLAY FOREX WITH SMALL CAPITAL The only suitable trading technique is day trading with 30 minute (M30) to daily (Daily) time charts, learn more details on small capital trading on FOREXimf.
Quick Tips: How to Get Better at Forex Trading
Learn the real basics of forex trading. Check the page Learn forex from FOREXimf.com
Open a demo account And increase awareness by directly seeing how the market works
Consistent marketing practice According to the prepared strategy
Evaluation Every transaction to improve your analytical skills
Discussion With other traders, join the trading community