Those that have considered a career in trading often ask many questions in the beginning regarding many different topics, however, one of the most common themes seems to revolve around money. After all, the main reason why you would choose to trade forex would be to make money, so this raises a lot of questions about whether it is actually possible to do so or if trading is simply too good to be true. Stay with us to get answers to some of the most common money-related trading questions.
Q1: How much money do you need to start trading?
A1: If you’re willing to start with a mini account, you can usually start trading with a very small amount of money, with some entry barriers as low as $1. Of course, it would be wise to try to deposit more than this so that you can place at least a few trades before you need to top up your account. If you’re looking to open a standard account or better, you’ll need to commit to making a larger deposit, usually in the field of $100 – $500 or more.
Q2: Can trading make me rich?
A2: Absolutely! However, you need to know that there are several factors that will affect how much money you make. For example, if you only deposit $100 at first, you can’t expect to become a millionaire rapidly. Other factors, like the effectiveness of your trading plan, your experience, market conditions, etc. will also affect how much money you make.
Q3: How much money can I make trading?
A3: Once again, this depends on several factors. In one study that has been published, it was found that a $30,000 deposit could yield over $3,000 in profits per month if you were to make several trades a week. Still, this is only a ballpark estimate because results would be different for every trader.
Q4: Can I quit my job to become a full-time trader?
A4: Technically yes, but we wouldn’t recommend quitting immediately. It’s a good idea to start trading part-time so that you can ensure you have realistic expectations and to make sure that you’re good at trading. If you’re seeing consistent profits and know that you could make enough to support yourself, then you could make the move to full-time trading.
Q5: Why should I become a trader when money isn’t guaranteed?
A5: It’s true that profits aren’t guaranteed, but trading does offer several perks. For one, you could make a lot of money in a short amount of time instead of getting paid by the hour like you would with a regular job. This is a great way to make money in your spare time from the comfort of your own home, which makes the risk worth it for many people.
Q6: What if I’m interested in trading but I can’t commit to making a deposit?
A6: The best place to start would be with a demo account, which will allow you to trade in a live environment with virtual money. Since there’s no risk, you can walk away from the demo at any time with no obligation to open a live account. If you do well, you’ll probably feel more comfortable making a deposit.
Q7: Aren’t most brokers scammers?
A7: Some are, but many aren’t. You do need to research any potential broker you’re looking at beforehand so that you can avoid falling victim to any scams. It’s better to stick with more popular brokers and to double-check their regulation status. If the broker passes these tests, you’re safe to open an account.
Q8: What if I lose all the money I invest in my trading account?
A8: Unfortunately, you’ll be out of luck if you lose your deposit because of your own trading choices. This doesn’t mean you should give up, but it is usually a sign that you might have opened an account too quickly. If this happens you should open a demo account with no financial risk and spend some time learning about trading, then you’ll be more prepared and less likely to lose the next deposit you make.
Q9: I know I can open a trading account with a small deposit, but is there really a point?
A9: Did you know that many brokers offer bonuses that will double your starting deposit, along with welcome bonuses that give you free money to trade with? There’s nothing wrong with starting small either, as long as you start somewhere. Over time, your account balance will grow.