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From a pro. trader:
Some thoughts on what you need in order to be a successful retail FX trader
"I’ve just been asked the question and as I’ve been doing it for over 10 years myself, I feel that I’m qualified to give some sort of an answer so here goes: You will need at least a
A $50k trading account.
A good understanding of how the market works and a broad network of information.
A very responsible bank/broker who offers fair pricing and doesn’t only make money when you lose.
Intraday leverage use of around 10:1 increasing very occasionally to around 25:1 on the few occasions in a year when you are 98% sure.
Medium-term positional leverage of between 3:1 and 5:1 (probably should add here that this will increase once the position is in profit and can afford more).
Monthly risk should not exceed $20k (really shouldn’t even get close!).
Daily risk depends to large extent on how the month has been going; risk more if you’re in profit, risk very little if you’re losing.
The ability to think like a trader.
The last is the most important. If you get that then all else will come naturally. Getting trades right doesn’t matter much (well obviously it does if you get them all wrong!), what’s important is what you do with good and bad trades.
Do all this correctly and you should be able to make $200k per annum from your trading." |
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