In today forex faq, we have the question from one of our fellow traders asking me about the amount of money to have in order to start trading full time.
Below is the question
I came across your website while web surfing, and i must say i like what I see.
I have been trading just under a year now and still a lot more to learn. One question … how much money does one need to start trading full time?
Frankly speaking, the amount you need to have really varies with the amount of money you need to sustain your monthly expenses or the amount of salary you are currently drawing per month.
I will always suggest that you must make more than what you spend per month from forex so that your account can grow and eventually you will make more money.
The most attractive thing about forex is the ability to grow one’s money. For example, if you have $5,000 in your trading account and your strategy can grow your account by 25% per month, then you will be making $1,250. If your expenses is $1,000 per month, then you will only add $250 more to your trading account for the next month. Therefore you will see that your money grows very slowly per month.
Therefore It will be better for you to withdraw 50% of the winning to pay for your expenses and then leave 50% of the profits inside the account so that your account will grow faster over time.
If your monthly expenses is $1,250 for example, then you must make $2,500 per month from trading forex. If your strategy can make you 25% per month, then you must have $10,000 in your trading account. In this way, you will realize that your account is growing over time and eventually you will be able to keep more of the profits in the account.
For me, I do not withdraw my money from my trading account as I let it grow over time. That is why I trade binary option to cover my family expenses. You may want to consider learning binary option at the same time so that the income generated from it can be used to pay your bills while the profits generated from forex can be kept inside your account to grow.
This is just my suggestion as this is exactly what I am doing.
So you can use the method above to calculate how much you need to start trading full time. But first of all, you must always be able to generate consecutive months of profits in your demo account before you trade live.
Please do not risk your hard earned money by trading live with it without being sure of the strategy you are using or being sure that you can execute it perfectly.
If you are interested in learning binary option, below is a link to my Binary Option Mastery course.