Required Trading Account Size To Make $100-200 A Day From Forex
In this video, I share the math behind the required trading account size to make $100-200 per day as a Forex trader. Vlog #183.
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The reason why I think it's important to look at this is that many aspiring traders ask me what amount of money they need to make a living off trading. The answer is often lower than some experienced traders would say.
However, it's very important to stop and think about whether you are looking to simply live or instead to grow an account. After all, constantly taking money out of your trading account reduces the pace at which your account grows.Taking money out of your trading account reduces the pace at which your account grows. Click To Tweet
Let's jump on the whiteboard to do the math!
What If You Don't Have That Required Trading Account Size?
A lot of traders get discouraged when they hear they need $50k to make a living off trading.
Wasn't trading supposed to be an easy money-making scheme?
No, it's a profession.
Let me remind you: the moderate cost to study in a private college in the United States is averaged $49,320 in 2016-2017 (source: College Data).
However, if you do not have the money to start trading for a living up front, there are alternatives. You can use OPM (Other People's Money), which is the way I favored.
By using other people's money, you can expect to need a bigger account size since you will only collect 25-30% of the profits. In this case, you would need a 3x-4x account.
Listen: Raj Turner: Increase Your Trading Capital By $70,000
Listen: 095: A Forex Trader’s Knowledge On Trading Other People’s Money – Rauan Khassan
If you are aspiring to trade for other people, you might want to consider checking out the Desire To TRADE Academy where I’ll help you do precisely that!