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How to protect a small capital amount in forex?

Discussion in 'General Trading Forum' started by sjhoik, Jan 8, 2013.

  1. sjhoik

    sjhoik

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    Hello friends,
    how to protect a small capital amount in Forex? if you have 100$ in your account how can you protect it from loss ,witch lot size do you use ?how do you use your money management ,i mean if you lose your first trade and the second ,do you keep trading at the same lot or change it ?
     
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  3. garryjohn258

    garryjohn258

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    I think If you have low budget and you want to invest in forex trading then you should have knowledge about the stock market prices before to invest then your risk of loss may less.
     
  4. budado

    budado

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    If you have small capital its better that you don't trade in forex at all. Or at least invest in cents account in this way you can trade your small capital. But don't expect you earn big since you have small capital. A good 10% a month profit is enough to make you earn good money each month.
     
  5. PROPENSITY100

    PROPENSITY100

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    I think the big drawback in Forex trader is using the doubling strategy. I mean that some Traders after losing a trade double the volume in the next trade with the intention of not only recovering the previous loss but make a gain too. However if we do a little maths we will know this strategy is very bad and mostly results in the eroding of the entire capital.

    So I never increase my trading volume only because I have lost my previous transaction. my trading volume depends upon the level of confidence I have on the trade.
     
  6. monyitomon

    monyitomon

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    Just trade for the sake of experience it actually depends how much you wanna earn with such small capital because if you are not hoping a big return just small then I guess it's just good to target at least 20% of your investment a month. Just for some extra bucks.
     
  7. budado

    budado

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    Do you mean Martingale strategy? Actually its not a forex trading strategy at all. Its a casino betting approach that some genius think its also good to try in forex but actually its not. In fact Martingale strategy is against all forex trading rules. So its better we stick to money and risk management rules.
     
  8. Razor1911

    Razor1911

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    When a trader uses small capital then it is very hard to manage the account and survive because we eventually need some good margin so that even when the market shows any retracement, we don't get caught up by margin call. So its always advisable not to use low investment.
     
  9. rexway

    rexway

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    Well tthere is no big deal protecting a small capital from been loss rather the only solution is that we ned to reduce the lots which we are using to trade and enter the market with in forex that is all.
     
  10. ryuken

    ryuken

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    I don't think there is any fixed formula for the protection of the samll capital. depending on the spread, there is not much we are going to gain anyway. so the low amount has that problema dn nnot something under the control of the trader. it is based on the broker limits.
     
  11. Cutiekc

    Cutiekc

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    [MENTION=19710]ryuken[/MENTION],thats right there is no fixed way of protecting our capital perhaps we can achieve that if we should stick to to our rules and trading plans,which is to say that we are the only one incharge of how to control our funds in here,where by invest what w ca afford lossing.
     
  12. kasual

    kasual

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    in order to protect the capital and make it growing, traders should have good trading system or strategy and have good money management plan. both condition should applied together and its no use if traders have good trading system but have no good money management plan, or otherwise have good MM but have no good trading system.
     
  13. rexway

    rexway

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    Well I think that the best way to do this is by we trading with small capital this will really help us alot in so many way and having a good stoploss point is another advantages as well.
     
  14. kasual

    kasual

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    small capital can't generate high amount of profit and to make it become growing, traders should patient and keep stick with their money management plan. logical approach and not greedy is really important in this matter and if traders force to chase high profit in one order only, maybe will cause them get bad result.
     
  15. budado

    budado

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    I really don't mind if my small capital can't generate big amount of profit. As long I'm making profit I'm happy. In forex trading its more about how stable our strategy and our analysis. If we have 1 dollar capital and earn 10 cents per month. its seems a small amount. But if we going to increase our capital to 10 dollars then its 1 dollar profit a month. 100 dollars then its 10 dollars profit a month and if we have 10,000 dollars capital its will be 1,000 dollars capital so not bad right.
     
  16. ryuken

    ryuken

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    I think we can cosnider the small capital and then go ahead with the money that we can get from the capital in the forum bonus. though it may not much last and it also needs to be more compared to many other types of the capital. I guess we should consider having some good amount in hand.
     
  17. Taha Nizam

    Taha Nizam

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    in order to protect the capital and make it growing, traders should have excellent software system or strategy and have decent management plan. both condition should applied together and its no use if traders have excellent software system but have no decent management plan, or otherwise have excellent MM but have no excellent software system.
     
  18. Nazmul01

    Nazmul01

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    Protect a small amount is very difficult.If you want you properly use the prefect tread.
     
  19. riddick09

    riddick09

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    We can only "protect" our capital if we apply risk management but isn't confusing that word to be used better than to have lower the risks maybe but protect the money, and yet Forex involves risk so, we should have know that there will no safe or protection that will happen. Or better not to trade if we don't want to lose our money.
     
  20. sindarin

    sindarin

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    To protect? first be careful when you want to trade, make sure you know what you are going to do. small amount of deposit is good as the first time, but people need to be careful when they going to trade even you have small amount of profit later with your carefullness, also try to control your own emotion, if you can do that then you will protect your small capital.
     
  21. Master Forex IB

    Master Forex IB

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    $100 is enough to get trading practice in start . Yopu can use this capital wisely if you use small lots as 0.01 top 0.03. Not try for bigger lot or standard lot. Micro lots will protect your capital. You will bw low in loss , low in profit. It is good to learn trading with confidence. When you are consistent in profit taking increase lot size .
     
    pinyin likes this.