How to trade Forex with $100 for 20 days

Forex Trading Nigeria

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Posted by on Tuesday September 25, 2012 15:26:42:

I just want to share with you guys on a strategy I would use to trade forex safely with $100. Actually, trading with $100 is not idela as it is like buying shares with N15,000 - You don't expect to make big money with that. It is more ideal to trade forex with $1000 and more if you already know what yo uare doing.

Can one actually make profit with $100? Well yes you can and it may require a sufficient amount og hardword and learning.

The learning curve
When we were in school, there is something that is called the learning curve and the theory behind it was that the more of an activity that a person performs, the more he gets better at doing it, although he may have to incure some losses as at the starting stage.
It is the same way with trading forex, if you are new, you would lose a bit at the start and your losses would reduce over time and turn to profits if you are the kind of person that learns from his mistakes.

The strategy
Well here is my strategy and it's simply a way I would tade forex with $100 if I wanted to. There are many ways to trade forex with $100 but not many ways to trade profitably.

Put the following things to mind
- Target is to trade for 20 days
- Target is to make at least $5 a day
- Risk:Reward would be set at 1:1 and that means I would risk about $5 to gain $5
- My currency pair would be EU or GU
- Simply price action - Buy low sell high

Simple steps
- At about 7 or 8 am Nigerian time, I log into my platform and buy about 500 units of EU
- Set and exit target of about 40 pips and stop loss of 40 pips
- If I win, I would gain $2 and if I lose, I would lose $2.
- I repeat the strategy about 2 or 3 times a day and only when I feel that the market price is under priced or the trend is going up

With 2 wins a day, I would gain $4 and the more wins the more gain I would make

This is just a simple trading strategy you can use to grow your capital. There are a lot of things you can learn about forex that are not included here but this is just to help guys with a basic way on how to trade and at the same time maintain your capital.

It is quite possible to trade $1 for 1 pip or even $10 for 1 pip but that is not the way professional traders work. You would only lose your capital with such aggressive trading strategy.

There is a rule to at least limit your exposure or risk to only about 2% of your entire capital per trade. So if you have only $100, risking $1 or $2 per trade would be ideal rather than risking $10 or $50.