For today’s forex-related article, I would like to address the question of how much money you want to succes

sfully earn a living from trading forex. This is definitely not a straightforward question to resolve, and there is not any fixed rule; but I will shed a little light on the topic.

If you had a large bank of, say, 100,000 GBP to trade with, then naturally with the correct trading technique and money management abilities, you could quite possibly make, say, 20% gains every year, and therefore make a pleasant small income of 20,000 GBP.However, if you just jump right in with your 100,000 GBP without any trade experience, then you could just as easily lose the lot!

I'd suggest that, regardless of how much money you have available to trade with, you must begin with a demonstration account using virtual funds. Trade with this first and try to be profitable over three months or more (if your trading methodology means you only take a few trades a month, then you should doubtless do a longer test). Make sure you make 1 hundred trades before moving on to a live account so you know that your trading strategy is sound.

When you move on to a live account, fund it with 2000 GBP or thereabouts whatever you can afford “but not too much. Continue your trading strategy as before and try to be rewarding for a couple of months. If you are not successful, go back to the drawing board and review your methodology. If you are making consistent profits, then you can trade with a bigger trading bank and begin to make some real money.

If you don't have any more funds to trade with, then just keep it small and slowly build up your bank till it is sufficiently big to start taking a salary out of it. It may take years if you begin with a tiny trading bank “but the principle is always the same whether you have 100,000 GBP or 2000 GBP in your trading bank “you have got to make continual profits. If you can’t do that on a practise account, then I recommend that you leave your cash where it is.

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