This is important. In scalping, you trade with higher leverage so you need trading capital. In my opinion, a decent minimum is around 5,000$. If you have only something like 100-200$ then, of course, you can scalp on a smaller position as a training. Do not expect to make fortune with scalping when you start with 100$.
You need that capital. Do not expect that you go from zero to hero in few months. Do you have few hundreds of dollars? Not enough.
How to get trading capital
There are many ways to do that. You can save money or get some extra work. There are so many ways to earn money. It doesn’t have to be online. You can go and work on the weekends or whatever. Just figure it out.
Don’t borrow money for trading
This is super important. Just don’t, even if you have a big plan to earn huge money and payback from the earnings. It is so easy to lose money in trading that you do not want more psychological pressure from trading money you do not own. Trust me on that.
Do not to try trading capital from 100$
It may be possible, but that is a risky road to chose. Some people believe that they are super traders and can go from 100$ to 1000$ or 5000$ in a short time. That is a dangerous thinking. Because of that approach, you will most probably trade very risky, not follow a trading plan and you will lose that money very fast. Remember, if you have 100$ then use it to practice with small positions. In the meantime, try to find some extra source of income.
Protect your capital
You worked hard to save money for your trading capital, don’t waste it in a stupid way. Chances are that you are not a trading star, so you have to fight with the market like everyone else. Stick to your trading plan, cut losses, manage your positions wisely, don’t be too greedy. The common mistake risking too much. Just trade with positions which are adequate to your trading capital (so it means risk 1% and so on).
Withdraw profits, be carefoul with forex broker
Let’s say that you make money in trading on a regular basis. That is great. It is a good practice to withdraw some of your profits every month. The main idea here is that you risk only money from your broker account. If you put part of that money (from profit) in the saving account then you can’t lose them.
There is another thing – some brokers, ever big ones can’t be trusted for 100%. Everything can be fine and suddenly there will be a problem with your account, with money withdraw etc. There are many histories like that. You should be careful and always move part of the profits to the saving account.
Day trading and scalping guide - menu:
When you start:
- Forex scalping and day trading for beginners
- Best Forex broker for scalping and day trading
- Best Forex pairs for scalping and day trading
- News and economic data
- Scalping, day trading hours
- How many pips, how many pairs
- Leverage in forex scalping and day trading
- Money management
- Position management
- Time frames
- Trading capital
- Trading desk
- Forex scalping and day trading without indicators
- Day trading Bitcoin