How to protect a small capital amount in forex?

[Steve Carlson]

I do not have enough capital to invest in Forex. However, I believe my small capital is enough for my trading skill. I protect my trading capital by money management method. I always use stop loss. In addition, never I open my trade with high lots. Thus, I save my trading capital from big losses.

 

[wantus]

$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 with confidence. When you are consistent in profit taking increase lot size .

you can use even 100$ wisely and make a lot of good real trades to get understanding of spreads and slippage causes. For example my first deposit to Hotforex was 200 $ and using that money ( I lost them all though) I tried short and long positions, played in near and intermediate trends, S&R levels and even put into use some basic indicators like MACD and RSI

 

[TenkoFX]

The only way I know how to protect small investment is apply good money management and never do over trading. Stick with one currency pair only and set a trading rules or plan for you to follow everyday.

 

[pinyin]

the great thing is demo account. you can trade without lose. and you join in market with micro account. you can trade with small volume. you will get confident when you win with some order. it is important. if you suceed with small account. you will succeed with big account

 

[tradeview]

The best thing to do is study well, keep the risk low, and be patient, loses are always there, but with knowledge you will do good even if its just a 100 dollars account! minimize your risk to 2-5% or your capital only per trade and keep the lot size very very small 0.01

 

[avelaskes]

the protection of the capital in Forex is very important thing and it does not depend rather your capital is big a small. I have a few accounts with the different brokers. I have a small one with a new broker just to test their services and a big capital with the broker whom i trust. In both cases I use money management, risk management and stop losses.

 

[Rajesh]

I know the best way to protect the small capital from big losses that is you should always use stop loss according to your analysis. On the other hand, you have to follow the money management very strongly.

 

[wantus]

The only way that come to my mind is trading micro or nano lots of course you should expect less profit from your trading practices, but it will certainly help you to avoid heavy losses as well. It depends on what you aimed to: earn money or try out real trading environment.When I started Hotforex micro account with nano lots trading I was clearly realizing that no money will come to my pocket for next 6 month. Money deposited were assigned to pay for education..

 

[avelaskes]

For protection is very important to be attentive, trade with small volumes, practice on demo or mini accounts and use stop losses.

 

[TenkoFX]

Every traders must need to go with money management , because without proper money management people will never be able to make profit from their capital in long time . So if you want to make profit with small capital then just do it best for make best with Forex .

 

[budado]

Every traders must need to go with money management , because without proper money management people will never be able to make profit from their capital in long time . So if you want to make profit with small capital then just do it best for make best with Forex .

Its a combination of risk and money management. Good analysis and good trading strategy. Even if you do practice good risk and money management if your analysis is wrong then you can end up losing. And even if you have good analysis if your strategy is not good then you can end up having erratic earning.

 

[anosocialnet]

@Rajesh Stop Loss and Money Management is the best way of minimising Traders loss. And it is not only for Small Capital Traders but for all Traders that want to grow the Capital.

 

[sindarin]

@avelaskes: You can do it that way, trade with smaller volume so the risk of losing also still low, but if you already have bigger capital i don't think it is wrong to rise your volumes a bit and so you don't have to get so much pips.

 

[TenkoFX]

if you rtrade with small amount then you have to trade with small risk and small lot size.when you will trade you should not trade with more than 10% risk and avoid over trade.then you will able to protect your account from making zero

 

[Andrew Hoylr]

Very complicated topic to answer. Actually it is very difficult to protect small capital in Forex trading. If you want to save your little amount you must have a proper knowledge in Forex market. And it is clearly said without having passed a long period experience it is not possible for someone. So, by acquiring proper experience you can protect your little amount.

 

[Rajesh]

Actually, small capital is really risky for trading. Therefore, I am very sincere about my small investment. In fact, I am much careful about money management then I always open my trade by only 0.01 lot for my 100$ capital. I never break these rules. On the other hand, I am using stop loss and take profit according to my analysis. Thus, I safe my capital.

 

[Farmer Sharona]

This is very important,first you must have known forex market to the next level because that is what forex market,after trade your market with little lot size but if there's geniue market that come up you can go for big profit,but you should learn how to manage risk to reward rotion for better profit

 

[Johnson]

You need to place trades in small volumes, so that you can trade properly even with the small amounts and protect your capital even after loss in trades. So if you have small amount then you need to place trades according to your capital.

 

[CahCuncun]

You need to place trades in small volumes, so that you can trade properly even with the small amounts and protect your capital even after loss in trades. So if you have small amount then you need to place trades according to your capital.

We must be able to manage our trading capital in our account. How we can maximize it for trading. We must have good skills in managing money and also analyzing market when trading. Try to use demo account with small amount first to learn how to maximize it when trading.

 

[Johnson]

We need to have enough knowledge and skills of trading in order to apply our trading plan even in an account where trading capital is very small, so it doesn't matter that amount is small or big, so what we need to do is to manage that capital properly.