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Forex trading with little money – Is it possible?
A question I get a lot.
Is it possible to make money with very little start-up capital in Forex Trading?
The answer unfortunately is nope.
But not for the reasons you might think.
The answer is no because of the mindset the people asking these questions are in. They are in a scarcity mindset. They are thinking it is not possible to make a lot of money…. Sounds strange but everyone successful who I know (wealth success) doesn’t have the slightest part of scarcity. They are abundant.
But, without getting off topic too much here is why it’s not a good idea to start with little trading capital.
Why It’s Not A Good Idea
When you start with a little amount of money you are not committing to yourself. The pyschology of the mind states that if you don’t fully commit to something, the chances of you seeing it through, whatever that might be, are slim to none. This is the same reason why marriages fail when both parties are not fully committed to one another. It’s the same reason businesses fail. It is also the same reason why if you asked this little money question, you would fail too.
Translation: “Can I trade with little money.” = Can I risk a little bit of my time and money and not lose too much….
Once we get past the obvious mindset and commitment issues behind the question, we hit the scale issue…. What does this mean?
If you have only a little amount of capital to get started… How do you expect to make £10,000/month down the line?
The answer I receive — “I’m only looking to make a little bit of additional income.” = See part 1 (commitment.) Same issue.
But if your goal was say £1000/month and you only invest £1000. How on earth do you think you will make 100% a month? This isn’t cryptocurrency and we aren’t going to be risking 20% of our bankroll on each trade! Are we! Are we?
Knowledge is the bomb.
Implemented knowledge is the bomb.
Knowledge that has been back-tested into a regimented plan of attack. What to look for, what actions to take when specific set-ups take place. How to find these set-ups. What usually happens. How much to invest. All these questions are essential, you might know a lot about forex, but if you have no plan, no implemented action…. You will make no money (at best).
Time is a huge one. Do you actually have the time to learn & implement your skills and knowledge. If the answer is no then the solution below is the only way.
But fear not, there is a solution!
Learn before you do.
Most people rush into Forex and lose a lot of money following the slimy gurus that charge $2000+ for courses selling the dream.
That’s not how to make money. You make real money by helping people. Think of the biggest companies in the world. They help people do something, whether that’s move from A to B. Whether that’s write a document, search a question or anything.
The solution is SIMPLE. It’s not EASY to do though as it requires a lot of discipline (before it turns into a habit of course.)
Year 1 – Hustle, LEARN & Save
Do not make 1 single trade in your first year of trading forex.
I’ve said it before and I’ll say it again.
The key to success in trading is very similar to success in investing & business generally. You have to learn BEFORE you do. This is where everyone goes wrong and why 95% of people lose money.
Learn & train your mind.
If you learnt and trained your mind into what to look for in the markets for 2 hours per day, every day for 1 full year, that’s 700 hours of hardcore training. You will know more than 95% of people. You will also have a plan, a strategy and a trading formula that suits YOU not anyone else. When to trade, what to look for etc.
But there is a critical difference in this time.
Save money at the same time.
See this is the issue people have when they ask questions like – can I make money with no money in Forex? – The answer is NO. Forex trading is an investment. If you invest little money you will make (actually probably lose) little money.
Whereas if you save for an entire year and learn in the process you have the potential to make a great amount of money. I’ve done posts in the past on how much I think forex traders need to get started. The truth is; The more the better if you truly believe in your skills.
Back to my points above, if you don’t have the; time, knowledge, skills, confidence or patience… You will end up throwing away a lot of money.
If you give yourself a year though you will be an extremely disciplined trader.
Then once you have confidence to make 5% a month, then invest your savings. Of course bankroll management is of the uttermost important, but of course after an entire year of studying you will be familiar with how to trade with correct bankroll management and a larger sum of money actually makes this easier. Can you imagine sticking to 1% per trade with only $500? That would only be $5…. How much money you going to make from $5?
Whereas if you start with $20,000. Suddenly 1% is $200. That will make you listen.
Of course you can utilise leverage but I wouldn’t recommend going too high on leverage generally as it is extremely risky.
Anyway, I hope that answered the “can I trade with little money” question that a lot of people have been asking me recently and feel free to check out the course & join the email list to get updated when new posts go live!
Thanks for reading.