In today forex faq, we have a question from one of our fellow readers here in my blog asking me whether he can make profit with the amount he had deposited into his trading account.
Below is the question:
I just make deposit of $10 to enter the FX market, Do this deposit can make profit?
Yes of course, a trader can make profit in trading with any amount money he deposit into his account as long as he has a good strategy plus he has the discipline to stick to it.
However with just $10, I believe that you are trading on a micro account.
If you have been following me, you should know that I am a frank person and therefore will like to offer you the below analysis
Let says that you have a strategy that can grow your account by 30% per month and you will not be withdrawing any money from your account for 1 year so that the money can be grown compoundly.
You will grow your account to $233 in 1 year time.
The reason why I am stating this is because I am afraid that you are thinking of growing your $10 into a thousand in one month time like what most forex trading advertisement claim to be able to do.
Do not be mislead by those forex ads that you have seen.
If you are interested to make a decent income from trading forex, you have to stop believing in those ads.
It is really possible to make a decent income from trading forex but it is definitely not like what those forex ads claimed to be.
You can’t make $10,000 a month with just $100 account. The problem with those ads is that they never told you how much money the person had in his account to make the $10,000.
So let me show you how much you can grow your $100 into in 1 year.
Assuming that you have a strategy that grow your account by 30%, you will have grown your $100 into $2,329 in a year time.
Therefore in order to make more money in trading, you must have more money in your account.
In fact, you do not need to have a lot of money. The minimum amount to effectively make a decent income every month after a year is $1,000.
With $1,000, you will be able to grow your account to $23,300 in 1 year time assuming you have a strategy that wins 30% per month.
After that, you will be able to have a monthly income of a couple of thousands every month.
However before you can achieve that, you must spend sometime to formulate or learn a profitable strategy. Next you will need to practice what you have learned on a demo account for several months.
Once you have managed to make 2 consecutive months of profits on your demo account, you will be ready to do live trading to grow your money.
There is no short cut in trading and if you ever receive any emails telling you that they have a strategy that wins 50 trades in a row and they can grow your account by 1000% in a month, these are the act of marketers.
If you follow them, you will definitely get your account wiped out in no time.
Therefore if you are really serious about making a decent income from trading, the above are the only way to get there. The main purpose of creating this blog is to tell the truth about trading forex so that everyone here can benefit from it and decide if you are really suitable to trade forex.
There are people who just want to trade forex because they thought that it is a get rich quick scheme. Forex trading is a career that can allow you to make a decent income from home but it is definitely not a get rich quick scheme. You will need to spend time to learn and practice before you can start to make money.
Do feel free to contact via email or via the contact form on this blog if you guys have any question about trading forex.