Is it possible to start trading FOREX with $1000?

[natedredd10]

Originally Posted by charles1 Hi Aron, There's one trader who was a meat packing plant manager turned trader with like $25k, I think he said he took out $5k to live and traded with the $20k, and his wife was pregnant at the time. I just forgot the other one. Besides though Im at the point where I'm trying to branch out of my one currency I trade and learn other marktes, especially ones I can hedge against.

The odds are though this trader simply got extremely lucky, not to mention it strikes me as extremely irresponsible and degen gambler to do this with a pregnant wife...
Starting any kind of trading with min margin is simply poor bankroll management in general...Its quite helpfull to investigate how other gamblers outside trading manage bankrolls. Money doesn't just sit idal in an account if you don't have all your leverage juiced, its there to cushion variance during random streaks of drawdown in a winning system.
Part of the problem with traders and small accounts is alot are putting on 2X Kelly/far past optimal F per trade without even knowing it, especially in FX..which even a winning system will get destroyed under with a high degree of probability.
That is not even including the lack of being able to use any sort of trade management when only trading one unit.
If you only trade one unit you have to balance the chance you take that one unit up to 3 vs getting 2 jobs, busting your ass for a year and saving so you can start with 3.
You don't read too much on forums about the later because too many traders get in the business because they don't want to work and are lazy IMO.

[MightyMouse]

Originally Posted by thalestrader Not for nothing, MM, but from your posts someone might surmise that your plan does not include winning. You need to smile once in a while. Best Wishes, Thales

I am incredibly flattered that you follow my posts Thales. Thank you. Your flattery plus about 2 dollars, should be able to buy me a medium cup of coffee.

If you would like to post trades real time with me head to head, I will be more than happy to do so with you. You can also go back and read my posts making that request in the past too.

I know, I know, I know you have nothing to prove to me or anyone and won't waste your time. But, you see, if you have nothing to prove, you shouldn't make comments about others the way you do. Oh, "Not for nothing."

[MightyMouse]

Originally Posted by natedredd10 The odds are though this trader simply got extremely lucky, not to mention it strikes me as extremely irresponsible and degen gambler to do this with a pregnant wife... Starting any kind of trading with min margin is simply poor bankroll management in general...Its quite helpfull to investigate how other gamblers outside trading manage bankrolls. Money doesn't just sit idal in an account if you don't have all your leverage juiced, its there to cushion variance during random streaks of drawdown in a winning system. Part of the problem with traders and small accounts is alot are putting on 2X Kelly/far past optimal F per trade without even knowing it, especially in FX..which even a winning system will get destroyed under with a high degree of probability. That is not even including the lack of being able to use any sort of trade management when only trading one unit. If you only trade one unit you have to balance the chance you take that one unit up to 3 vs getting 2 jobs, busting your ass for a year and saving so you can start with 3. You don't read too much on forums about the later because too many traders get in the business because they don't want to work and are lazy IMO.

If I am not mistaken that trader is Tom Baldwin. He was mainly a scalper in the TBOND pit. They have or had a distinct advantage over screen traders. It's very difficult to stay lucky over a very long period of time, so I kind of discounted luck when I read about him. But it could be that he was on a lucky streak.

[thalestrader]

Originally Posted by MightyMouse I am incredibly flattered that you follow my posts Thales. Thank you. Your flattery plus about 2 dollars, should be able to buy me a medium cup of coffee. If you would like to post trades real time with me head to head, I will be more than happy to do so with you. You can also go back and read my posts making that request in the past too. I know, I know, I know you have nothing to prove to me or anyone and won't waste your time. But, you see, if you have nothing to prove, you shouldn't make comments about others the way you do. Oh, "Not for nothing."

69 cents will get you any size you want at McDonald's, MM.

I usually post at least a trade or two every day, and I try to very clear as to whether I am taking the trade or just posting a chart. I know that you know where you can find me. You have posted a comment or two there yourself, but you are welcome to post your trades there as well. Quite a few of us do, you know.

As for the rest, I was simply responding to a comment you made about Jon. That is how a forum works, isn't it? Or are you supposed to be allowed free swings while we stand around and clap?

Best Wishes,

Thales

You know where to find me, MM.

Best Wishes,

Thales

[MightyMouse]

Originally Posted by thalestrader 69 cents will get you any size you want at McDonald's, MM. I usually post at least a trade or two every day, and I try to very clear as to whether I am taking the trade or just posting a chart. I know that you know where you can find me. You have posted a comment or two there yourself, but you are welcome to post your trades there as well. Quite a few of us do, you know. As for the rest, I was simply responding to a comment you made about Jon. That is how a forum works, isn't it? Or are you supposed to be allowed free swings while we stand around and clap? Best Wishes, Thales You know where to find me, MM. Best Wishes, Thales

Thanks for the coffee advice.

[TAjammy]

try this, split up the 1000 into four different accounts of $250.

with each account spend 3 months, if one account goes bust in under 3 months, wait for the 3 months to end and trade another $250 account. do this for a year.

I highly reccomend joining a forex trading room, i remember joining one and has seriously helped, i don't day trade but swing trade but i can day trade thanks to these people. i left the room though.

Get in contact with professionals, if i hadn't done that i would be very very confused

[sicktrader]

I haven't read through all the posts in this thread, but in my opinion you should know what is the lowest starting amount based on your system. For me, I hit between 50% and 60% and I know this because of my trading data, not backtested data. As with any system, the risk of ruin is highest at the starting gate, so I would give yourself enough room to place at least five trades (unless you have a much higher win rate), with the 5th starting at a balance of around $510 if your margin is $500. I know that at some point I will run off a few losers in a row, so this takes into account the chance that it may happen at the start. While my balance is much greater than the $1,000, this is not different than the way I trade everyday. Each time I up the number of contracts I trade, I make sure that always eat 5 losses in a row before I am required downsize due to margin. So to answer the question, if your average loss is around $100-$150 per contract, then yes, you can easily start with around $1,000. At the same time, if you do not use sound money management, you will eventually get crushed. I move cash from my trading account to my bank account each time I double, and I maintain a cash reserve in order to post up more cash for those times when I experience a number of losses in a row which happens a few times a year.