For today’s forex-related article, I want to address the question of what quantity of cash you need to successfully make a living from trading forex. This is obviously not a straightforward subject to answer, and there is no fixed rule; but I'm able to shed a little light on the topic.

If you had a big bank of, say, 100,000 GBP to trade with, then naturally with the right trading system and money management talents, you could quite conceivably make, say, 20% gains a year, and so make a pleasant little salary of 20,000 GBP.However, if you simply leap right in with your 100,000 GBP without any trade experience, then you might just as easily lose the lot!

I'd suggest that, with no regard for what amount of cash you have available to trade with, you must start with a demo account using virtual funds. Trade with this first and try to be worthwhile over three months or even more (if your trading methodology means you only take 1 or 2 trades every month, then you must potentially do a longer test). Make sure you make one hundred trades before heading off to a live account so that you know that your trading methodology 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 methodology as before and try to be worthwhile for a couple of months. If you are not successful, return to the drawing board and review your methodology. If you are making consistent gains, then you can trade with a bigger trading bank and start 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 to take a salary out of it.

It may take years if you commence with a little trading bank “but the principle is always the same whether you have 100,000 GBP or 2000 GBP in your trading bank “you have to make consistent profits. If you can’t do that on a demo account, then I advise that you leave your money where it is.

If you are new to currency trading, and would like to learn foreign exchange trading, or you have an interest in foreign exchange system reviews, then you'll find much more useful content at www.eforexsystemreviews.com

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