How to trade with $100 in a month

Forex Trading Nigeria

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Posted by on Sunday August 14, 2011 10:9:19:

Although, trading with a small amount like $100 may not be a good starting capital to start with as something like $1000 is most preferred as the latter would allow you to trade with a standard lot account size worth $100,000. A standard lot means 100,000 of the currency you are trading with so if you were just trading with $100, you may only be able to access $100*100 = $10,000 which is the credit or loan your broker can give to you.

That doesn't however mean that you can't trade with just $100 but the thing is that you may be limiting your profits. Anyway, it is equally good to start small, especially if you are not well skilled yet with forex trading.

Now, let's get to the main point here. How do you trade forex successfully for about 1 month with $100? How do you grow $100 over a period of about 20 days?
Here is what I suggest you do as there are many ways in which you can trade with it according to your discretion. But based on my own tips, here is what can keep you on the safe side for the long term:

1. Divide your $100 into 20 days to get a minimum amount of loss you can permit per day.

This would give you $5 so what you should now do is to be disciplined and focus your trades to be limited to only $5 using exit stop loss points. You will be able to see this when making an order with streamster. For instance, if you buy EURUSD at

2. Look for a low price to buy or a high price to sell from.

Make sure that you monitor the market trend to see if prices are really low and close to days low or really high and close to day's high.
Things you can use to monitor the market trend are forex indicators or even news events. You should go to a website that offers forex news reports like http://www.forexpros.com/economic-calendar/ and adjust the time to suit your location and then be able to know if buy or sell is the best option for you.

3. Make your entry with a buy(or sell) order using a stop price and immediately set your exit stop loss at a maximum of $5 and exit target at about $10.

This simply means for instance, you can use a risk:reward ratio of 1:2 so if you set an exit stop to limit your loss to $5, you should also set your exit target to at about $10 so you mostly have a chance of gaining more than if you lose. I prefer keeping a pip range of about 30 pips for loss and 60 pips for profit. So if you say buy EURUSD at 1.4030 and set your exit target or take profit(TP) at 1.4090, you then also set your exit stop loss at a price of 1.4000. So if you eventually lose as the price goes down to 1.4000, you would be losing 0.0030*$1600= $4.8.
So that means for you to trade using this method, your capital required would be $1600 for that trade itself. Now you only have $100 in your account and this gives you access to $10,000 trading capital using the leverage a broker like Marketiva offers you ie. 100:1. So out of your $100, you only have to stake out $16 to get $1600 worth of trading and at the same time your loss and profit are limited to $4.8 and $9 respectively.

4. Monitor your results:

If your predictions are good, you are likely to make $9.6 for every trade that closes in your favour

Best times for making buy trades are before and during the start of the European session such as 7 and 8am Nigerian time. However you should beware of news reports by closing your trades when the time for news is almost approaching as prices can swing heavily when high impact news are reported. Most forex news sites tend to list high impact news with 3 reds or just show the intensity of the report before the time.

The bottomline is to analyze the market first. Follow the trend, if the price is going up for the past few minutes or 4 hrs on the graphs, then buying is good as long as it has not reached it peak yet but selling is what you should do if price is dropping constantly over the past graphs you see on your chart for both the 1hr and 4hr time frames.

If you are successful with this strategy, it means that you can be gaining $9.6 per day of more if your make more traders per day at the end of about 20 days, you would have turned $100 to about $280 or more. The more trades you make in a day, the more your profit but don't overtrade as you can even lose $100 in a single day.