xysoom: Can I Start Trading With $100?
Can I Start Trading With $100?
I‘ve been running a trading channel on Youtube for a while now and a lot of people ask me whether it’s possible to trade with only $100.The answer is, technically YES, you can trade with $100 because a lot of brokers have no minimum deposit requirements nowadays.But if youre looking to get rich with $100, you can forget about it because only 0.01% of traders can grow it consistently without blowing it up.To get more news about WikiFX, you can visit wikifx official website.
You can‘t earn much from a $100 account. To those people who spam you with videos like “I turned $100 into $10,000 in one week”, they probably tried it 20 times before they get lucky this one time. That is what they don’t show you.
When youre able to have such huge growths within such a short period of time, you would have to throw your risk management out the window.
Often times, most traders blow all their profits out in just 1 bad trade.
So my point here is this, treat it like a practice account. Use it to practice trading live. If you treat it like a get-rich-quick account, you will blow it up really fast.
Also, don‘t expect to use a $100 account to quit your job unless you’re the 0.01% of traders I was talking about who is experienced enough to execute it.
Everybody can trade with a $100 account, but not everyone can handle it properly.
Its just like how everybody can drive a normal car but not able to drive a Ferrari at 200km/hour and still come out of it without a scratch.The reason a lot of traders blow their small accounts is that they either dont see the small sum as something that is significant to them or they over-leverage their positions.
If you‘re only earning $2 and $4 profits from your small account, it’s easy to get impatient and fall into the temptation to increase your lot size beyond acceptable levels.
Many traders grew their $100 to $500 in 3 months and only took 1 bad trade to wipe out their past 3 months of hard work. They just couldnt resist the temptation to increase their risk exposure to speed up their account growth.
In fact, the smaller the account, the larger is the temptation to rush the whole entire process. If youre not careful, you will learn the lesson the hard way.
Even if your $100 account grows by 1% a day, the ending balance and profits arent as exciting as what the trading commercials portray to you.
Theres just too much marketing hype nowadays about starting with a small account and getting rich from it.