In this post, I will explain How to Start Trading Forex with 100 USD?
The higher the balance, the lower the risk in the forex market. Besides that you should always balance between the lot size and your balance.
There are two ways for you to start trading forex with 100 USD as follows:
- Using the manual / semi-manual trading method by opening a buy / sell position then you set the TP and SL. This can be done using indicators / manual analyais.
- Using Expert Advisor (EA) for automating your trades.
Let me elaborate on point number 2 first. To start trading forex with 100 USD using EA, you must understand that this balance is way less than you think if to be self managed by any EA. Therefore, you should consider trading using cent or micro account provided by some brokers such as Roboforex.
However, the profit that you will see when using cent account will be equivalent to cents not in dollars. That will be farily small profits obviously compared to your small entry balance.
Always remember, you should have some Patience, Self-Confidence, Stable when trading Forex.
Do not start trading without knowledeg even when using automated trading robot that has millions of positive reviews, never.
Now, let’s talk about number 1:
Manual / semi-manual trading using indicators. This is my preferred method of trading with small or high balance regardless. I enjoy low drawdown and most of the time my eqyuity if higher than my balance. That’s how you as a trader supposed to manage your trades. Always target positive equity so that at least you can withdraw your profits without waiting for your balance to expand for leveraging the drawdown.
First of all, there isnt a term called “semi-manual” trading in the forex market, I’m just differentiating between the pure manual trading and trading with EA with the help of managing the directions.
Manual trading can be with or without using indicators. Buy for sure you will need to draw the support and resistance levels, raising and falling channels, calculate the trend using ATR, etc. huge thing altogether when you repeat this for each pair, every couple of hours!
But, now you can have these completely done for you by yourself! Read this post word by word, Practice then implement in a low scale. Play big when you become familiar with it.
These indicators will tell you “go ahead and buy / sell now or wait” it will be obvious buy / sell opportunity.
Stay away from trading metals such as XAUUSD / XAGUSD with small balance. Never ever touch them. Or, you will regret.
Remember, if you are trading in small time frames such as M5, M15, M30 do not trade during or just before critical news. The price will always go against your expectaitons before it corrects itself.
Investors / banks will buy to sell from high or sell to buy from low.
In this example, we are in H4 time frame chart. The trend indicator is at H4, Channels indicator is at H1, M15 and M5 as you can see the M15 is in downtrend "for retest above the resistnace “changed to support level” before the price climb again. Now the price has touched the bottom edge of the raising H1 channel → price will climb “2nd confirmation”.
Pro traders must see more than 3 confirmations to enter a trade or set the direction for the trading robot to carry on as follows “in this example”:
- Resistance level now changed to Support level “below the current price level”.
- H4 trend is strong uptrend “watch out for pullbacks”
- H1 channel is raising and the price retested the bottom edge
- EMA60 is below EMA20
Then it is worth checking the D1 time frame with the same setup of all indicators loaded on the same chart.
You should expect a major pull back at the next resistance “High risk Local Sell opportunity for 1 or 2 days” then continue the uptrend above the resistance level.
When using the above forex trading strategy, you target huge pips, but you will suffer a bit of additional charges by your broker called “Swap”. These swap charges will accumulate as long as your open positions are in the blue “floating profit”. However, they are not too high compared to the profits you are making from the marjor moves during the week.
A quicker and more stressful forex trading strategy is to follow the same strategy but with smaller time frames. This will be a daily scalping, and the result is smaller pips, probably no swap charges but your ECN / Raw spread broker commissions will be substantial in this case.
This may sound lengthy and complicated for some traders but for sure for newbies who were expecting that they can convert 100 USD to 500 USD in one week. You can’t do it if you are newbie, otherwise you will be very lucky and you will lose them some time later along with your balance.
Do not rush in trading, by all means stay calm when trading. It’s all about Psychology.
I hope that you find this post helpful and informative enough for you to Start Trading Forex with 100 USD.
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