Have you ever wondered why some brokers let you start trading with 10 dollars deposit and others raise the initial deposit level up to $100? Believe it or not, but the limit is actually set in order to protect your money. To lose 10 dollars is much easier without drama, than $100 or $1000, that's why some brokers do not offer to their clients the access to cent accounts - they simply do not want to lose them. Also, this limit prevents speculators from playing with charts and allows them to accumulate a substantial amount of money for successful trading.
Main article sections:
- Why small deposit hurts your interests
- How to save up for the deposit?
- Deposit boosting method
- Pyramid trading strategy, a method to increase your deposit
- Rational pyramiding
- Trading psychology matters
The size of a trader's deposit is very important since it allows to trade with fewer risks. Beginner traders often have no money for safe trading: a vast number of newcomer traders are students, those who live on social benefits, and unemployed. Their deposit is often too small, like $10, so they can't trade safely. They will have to risk more than 2% of their deposit amount, and that is considered unsafe. Look, the average intraday movement in the Forex market varies from 20 to 50 pips. When the trader enters with micro-lot, the risk is equal to somewhat between $2 and $5, which is 20% and 50% respectively from a $10 deposit.
If your trading experience seems more disenchanting rather than promising, ask yourself: is your deposit ready to protect you from unexpected market moves?
Why small deposit hurts your interests
People say that a pessimist is a well-informed optimist. Remaining with empty pockets while trading is nothing new. Let's have a look at the worst first steps in trading:
- Start trading with $10 or so
- Start with borrowed money
- Spending utility savings for a deposit
All such inexperienced traders can think about is how to make a killing, but no one can trade wisely with that kind of trading psychology.
The main enemy of a trader at the start is greed. Ardent eyes, shaking hands and all that jazz. He wants to put up $10 right, but nothing works out. He bets 2, then 4, to get back those 2, after that the deposit vanishes, end credits, curtain fall. If you don't want to be disappointed in trading, remember:
- Do not make a deposit of your last or borrowed money.
- Do not expect anything from the market. You can't ask the market for obedience. No quick rise.
- Trading is a business, calculate the risks and keep on studying.
How to save up for the deposit?
The only money you should use for trading is your idle money. You can save up by holding back your urges for spending money on restaurants and weekends.
In the beginning, you are likely to earn some money in Forex trading, but also likely to lose. That is why you should not rely on trading as much as you can rely on your main source of income - your job.
Tune in to long-term saving as for your own business start-up. Mental discomfort will fade away if you combine trading with work: you will have enough money for a better living. Set a goal, "Save $1000 for deposit", stick it on somewhere like a fridge or a desktop.
Smart trader says: "I save up 15% of my salary monthly". "Too long…" - groans the rookie, "...and so difficult as well. Want it quick and easy".
But this approach doesn't work in Forex trading, where successful traders have been mastering one strategy for years.
Is it the mindset to blame? The right mindset trader always trades with micro lots, managing the risk, practices trading on demo accounts, attends courses and buys subscriptions. Never gives up studying. He saves up for some time and finally enters the market with a solid deposit of hundreds of dollars.
"Easier said than done", - you'll say. Where to get $5000 for Forex trading deposit to trade safely? Sounds like a lot of money, but not for a business start-up, where $5000 investment is a usual thing.
If the deposit you have is not too big and you have traded net positive for the last 2-3 months, there is a way to accelerate. You need a bug-free trading system tested on a demo and live accounts, risk surveillance, $200-$400 for a deposit. We'll teach you how to boost your deposit.