If you have any questions how much capital or capital how trading forex, the following explanation will attempt to determine the amount of capital, it is.
Perhaps for the new insight into the world of forex or re-entry from the forex business, you will find great the great capital for forex companies. So often the questions such as these:
1. how much capital is required for forex trading?
2. the amount of capital is ideal for forex trading?
3 the amount of capital is necessary for trade be saved?
With regard to the amount of capital needed for forex trading, in fact it should be calculated and included in the planning of trading operations. Meaning must be attributed to what strategy will be used in trade as well as the type of management of money because it will be used to implement the strategy.
But for the new starting forex is certainly not may not have been able to get on a stage like that. But with regard to the determination of a few things to consider what this capital forex in general, here:
1. The Number of Times You Want to Make the Transaction?
A way to see how this is not good because it is, without a doubt, our capital will be exhausted, but made in the early stages of negotiation, but we are not a loss, but we have to think how we would have been if the capital runs out. If ever we will be permanently lost, and all the capital that we would surely out, then run the benefits that we can take is your trading experience.
So that the business experience, we get more then the focus is to have the opportunity to conduct transactions as much as possible. In reality, there is no denying is that Forex actually made money with money through a transaction. Means that each transaction is a fruit of the chance to win money is greater. It could therefore deduct capital in forex trading, will be exchanged on occasion, on the occasion of making offers to earn money.
Capital = Cost per transaction X amount of transaction opportunities
Transaction cost is a capital that is absent in a single transaction. How to calculate, please open the position of 1 lot and then look at how changes in the capital of each a pips. From there can multiply capital changes between each nuggets with the number of pips of losses.
His theory:
If you use the leverage 1: 500 for trading 1 lot of margin required is $20 and each 1 pips price moves its capital shall be increased or reduced by a $1. To acquire 20pips and requires 20 pips then your loss if the transaction, lose for $20.
If you want 10 times the operation before executing capital, capital of the meaning of $200 is required.
2. The Benefit Cattle Property
Our goal is to rough trade is to earn an income, we can enjoy or that you are using meets our needs. What happens if we spent a few hours a day of negotiation so that the results can not be found or is not sufficient to fund our lives.
In addition to this profession is a profession that merchants should make more money than the amount we produce as an employee. If you are currently an employee with a salary of $4 million a month ago, has decided to stop working and to become a full time, that deserves the benefit of a month if it was $ 200? Or if he is currently working as an employee in hours of work 8 hours per day with the salary of Rp. 4 million, are then change from one day to the next day for up to 8 hours with the deals of generates only a small $100 per month, would be what is the profit that you earn what you are worth the time?
We think that the commercial results must be greater than his salary if the profession of merchant as an employee because he was on a par with lawyers, doctors, accounting and other who are independent, not having a boss and depends on the company or the employer. In addition to trade results must be compatible with the time we spend in trade. This understanding, we can now determine the benefit of target per month.
Then ask, what is merit that we expect great results that may exceed your income if your position as a temporary employee transacts petty?
But the decisive factor lies in the magnitude of the benefits:
1. the transaction batch size
2. the number of points acquired during the victory of transaction
3. frequency (number of transactions) of the transaction
If formulated benefit, amount = number multiplied by the change in the capital by transaction by pips has multiplied the number of pips that had increased the frequency of transactions
Here following you for commercial results that deserves the capital required,necessary so that we can do the lot size Treaty is appropriate to achieve the profit target.
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