Is it possible to start a forex trading journey with $10? yes it is possible; but it’s not advisable. To start a successful forex trading journey, you need something more than $10. These days, we are very lucky to have brokers who accepts a minimum deposit of $5 or even less, but to be very clear, equity (which is your capital) is important, but getting the right knowledge is more important.
I was sharing a story with my mentees; I had two friends, one of them started with $1000; while the other started with $10, right now both of them are almost at $450 within 2 months. The person who had $1000 made bad trading choices and his equity get down to $500 within 2 trading days; while the person with $10 made good trading choices and his equity grows to $450 within two months.
Let me be clear, these two traders had the same level of knowledge and experience in the Forex Market, but yet, the person with the bigger equity was loosing money while the person with the smaller equity was making good money. The difference between the two of them was trading psychology and risk management.
In the course of my trading journey, I have been fortunate to meet with great traders who are very good at analyzing the Forex market but not too good in taking trades. I had this same issues when I stared trading but I was able to overcome it with some tricks. This article is a complete guide to every Forex trader that desire to have make a sustainable living from the Forex market, even with as little as $10 equity.
How to Start your Forex Trading Journey with just $10
With a daily volume of $6.6 trillion, the forex market is the largest financial market in the World. Like I always say, there is so much money in the Forex market, so if you are not part of the winning team, it’s high time you joined the team. To join the team is very simple. One of the things I asked most of the people that reach out to me via email is to study candlestick pattern, understand trendlines, and the explore the opportunities in the Forex market.
What do I need to be a Successful Forex Trader?
Most newbies feel that if they just lay their hands on $10,000, they can rush in to the market and make millions daily, but this is not entirely true; while this can work in some case based on luck and a good mentor. It is not a sustainable strategy.
These are what you need to succeed in the Forex market; Knowledge, strategy, equity and risk management
Get the right Knowledge
The first thing you need to be successful in the Forex market is the right Knowledge. That is while all Forex brokers advised every newbies to start with a demo account. Starting with a demo account is not bad, we all started from somewhere, so I am always very sad when I meet newbies who just want to rush in and make millions overnight.
You don’t need to know everything just understand price action; market structure, trendline, supply and demand. You can get all this for free, there are so many free tutorials on them on YouTube and all over the internet. Don’t just watch or read, learn how to draw trendlines, spot market structure, how to place sell and buy limit, how to open and close trades, etc., practice them on your demo.
Develop a trading Strategy
Based on what you have learnt, start developing your trading strategy. To have a successful and sustainable forex trading journey you need a working strategy. It’s from your strategy that you will decides your trading capital, the pairs you will be trading, your conditions for entering a trade, your conditions for exiting a trade, your lot size and daily profit/loss percentage.
Once you are done with your strategy, you can start to implement the strategy on your demo account first.
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Balanced up with Equity
I started my forex trading journey with $100 and today I have an account size of over $12800 and I am withdrawing close to $4000 monthly. This was only possible because, I got the right and I was not afraid of taking risk. However, if you don’t have up to $100, you can start with as low as $10, or even $5 and grow your equity with time.
Learn to manage Risk
The secret to success in forex trading is risk management. You must have seen the disclaimer that forex is risky. My dear friends it is very true, forex can make you or destroy you. From my experience two thing every trader must fight against are: Fear and Greed. Fear comes in two shapes, fear of losing out (known as FOMO) and fear to place trades or stay too long in the market based on your analysis. Then greed is just a one way traffic to blown account; some people don’t even care about their margin level they want to make it big that’s while they can use big lot with a small equity so that they can cash out big time.
If you want to have a successful trading journey; learn to manage risk very well. Eliminate all form of fear and greed while in the market and trade based on your laid down trading strategy.
Getting a good broker is very important. When selecting a broker, consider their deposit and withdrawal option, years in the forex industry, leverage and the response time of their customer care service. I use Deriv and I strongly recommend them based on their experience in the market; their withdrawal and deposit options are always instant.
If you want to start your forex trading journey with just $10, get the right knowledge, develop a strategy, balanced it up with your equity and have a good risk management strategy. Please don’t trade all forex pairs, just pick two or three, study and understand their market structure, then flow with it.
Best of luck.