Starting Forex Day Trading with Just $100
Something that some people will tell you about forex day trading is that you need a whole lot of money to be profitable, and what we mean here is that you need to have a whole lot of available capital in order to start trading. However, this is not really true at all, because there are plenty of beginner forex day traders out there who start with only a couple of hundred dollars. Now, while it is of course hard to start trading with such a limited amount of money, it is technically possible to start with as little as $100, and moreover to turn this into a full $1000 in just a single week.
Our very own Andrew, this past week did a challenge where the goal was to take $100 into turn it into $1000 through some simple forex day trading. For those of you who think that this is impossible to do, as you will see from all five of the videos (one for each day of the challenge), it is definitely possible.
Now, we aren’t going to include every video from every day, but we will talk about the beginning and the end, or in other words, we want to provide you with all of the tips that you need in order to forex day trade with just $100, and moreover, we will also be talking about how Andrew managed to achieve his goal. Let’s get right through it and provide you with all of the most important rules and tips for starting forex day trading with just $100.
Forex Day Trading with $100 – Important Rules & Tips
What we want to do right now to provide you with all the most important rules for forex day trading when you are starting with as little as $100.
Choosing the Right Account
Before you can start forex day trading at all, the first thing that you need to do is to choose the right type of trading account. Now, there are usually four types of trading accounts that brokers will offer, including standard, mini, micro, and nano trading accounts.
What you need to know here is that a standard lot size is 100,000 units, a mini lot size is 14,000 units, a micro lot sizes 1000 units, and a nano lot size is just 100 units.
Based on this it serves to reason about a nano trading account is the best option to go with if you are starting forex day trading with just $100. This type of trading account will allow you to trade with the smallest possible investments, and it also comes with the lowest possible fees and commissions.
If you start day trading with as little as $100, don’t expect to become filthy rich in just a few weeks or months. The simple reality here is that you won’t escape the rat race when you start forex day trading with just $100.
In other words, don’t set totally unrealistic goals of unlimited riches, when the fact of the matter is that you will probably still need your day job in order to survive, at least when you are in the beginning stages. The bottom line here is that you just need to be realistic.
Managing a Small Account as if it Were a Large Account
When you start day trading with just $100, another important tip for you to follow, is to always trade as though it were a very large trading account. In other words, treat those $100 as if they were $10,000. If you don’t have anymore money to spare, then losing $100 is just as bad as losing $10,000.
Therefore, you should always do everything in your power to manage risk as good as you can. Generally speaking this means that you should risk no more than two percent of their total trading capital on a single trade.
Only Trade Short Timeframes
When you are starting forex day trading with just $100, one of the best types of trading you can engage in is forex scalping trading, which means that trades are only open for five, 10, or 15 minutes at the very most.
This makes it much easier to trade with as little as $100, or even less, because it means that your take profit levels and your stop loss levels are very close.
When you are trading with just $100, using longer timeframes can be extremely difficult. Moreover, when you trade on longer timeframes, those trades are just open for way too long, and as a new trader, it can make things extremely difficult to follow.
Don’t Go Overboard with Leverage
another thing to keep in mind when you start forex day trading with just $100 is that you don’t want to use too much leverage. If you use way too much leverage, and you lose a trade, you will end up losing a whole lot of money that you just don’t have to spare, or that you don’t even have to begin with.
Generally speaking, as a beginner trader, using a leverage ratio of either 50 to 1 or 30 to 1 at the very most is recommended, and even this can be too much. As a newbie trader with such little money to spare, you really want to stay away from leveraging your trade as much as humanly possible.
Focus on the Trading Process
The other tip that you need to follow when it comes to day trading with just $100 is that you need to focus on the trading process, not on the profits period of course being able to make profits is a big deal, but with that being said your trading process is also important period in other words, what we need to say here is that you need to master some trading strategies that are effective and reliable.
Forex Day Trading with $100 – Final Thoughts
As you can see from the videos that we have included here today, Andrew was able to turn $100 into $1000 through some very simple forex day trading, and he did this in just four days. If you follow all of the rules and tips that we have provided you with here today, then there is no reason why you cannot do the same.
If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.