How to trade Forex with $200

Forex Trading Nigeria

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Posted by on Saturday October 22, 2011 14:9:1:

If your startup capital is $200, you can still trade forex with it although it may not be as rewarding or easy as it would be if you were trading with $1000 and more. However this doeds not mean that you can't trade successfully with $200, you just need to follow the rules involved.

Here is how you can do it using Marketiva streamster platform:
- Log into streamster
- Make sure there is money in your live account
- Decide on a currency pair to trade with. I prefer Eur/usd
- Go to the top left of the platform and look for the daily high and low prices for the currency pair
- Check the current price under offer
- Put your chart on 15 mins and also 1 hr
- If chart is rising and current price is close the day's low, then click on buy
- Your normally buy by clicking on the price under offer related to your currency pair
- Enter the quantity of euro you want to buy. e.g 1000 units
- Enter your buy price which should be close to the current price. Make sure you have changed the price type to stop rather than market price on the dialog box that pops up
- Enter also the exit price at about 80 pips and stop loss at 40 pips too
- Allow your position to be created and it will close automatically when it hits any high or low price.

Example:
If you buy 1000 eur/usd at 1.3500 and set exit target as 1.3580 and stop loss at 1.3470. This simply means that if you win, you would automatically gain 500*0.008 = $4. Now assuming you created 4 positions using the same method by maybe buying at newer lows, then you could also have gained $10. That also means that if you lose, you only lose 500*0.004 = $2
With $200, you could buy up to $20,000 worth of currencies but there is a rule that you should'nt tie more than 2% of your capital in any position. In our case 2% of $200 equals $4 but we are only risking $2 based on a risk:reward ratio of 1:2 we are using.

So even with 2 wins and 2 losses a day for 20 days, you would have gained a net sum of $80.

The more capital you have the higher the volume of transactions you can make, even if it means replicating this method used here. So even getting $80 to $100 a month from just $200 start up capital is a profitable business since that is almost a 50% turnover.

If you trade 5 trades a day for 20 days and win at least 3 a day, you would be making



Comments:
Re: How to trade Forex with $200 Reply by babatunde rahmon on Wednesday February 12, 2014 at 10:45:54:

Simply direct and understanding. Hope every ither trader could learn from this