Question about trading smaller indicies $5 points
- Thread starter Ronjohn
- Start date
Is your loss limited to your initial investment? If you lose more than $2,500, does FXCM take the loss, or you?
Unless one has a very wild move in currencies or some brexit kind of surprise with open positions over weekend likelihood of losing more than your investment is very rare in spotfx. Though if your broker is not a regulated one, he might move spreads in a such a way to make the loss more than the actual and take out your account beyond the balance you have.
An levered, undercapitalized ($2,500 - !) account is near-certain to zero out, but if the debit risk is taken by the broker, at least OP can treat his account like Vegas-style 'mad money' and enjoy the entertainment value.
This is a question you have to answer for yourself. If you're just asking if its possible or do people do it, yes they absolutely do. But they are in the top end of traders.
You basically need to already have a proven system or set up, that is repeatable. So you need to know how many consecutive max losers it has had in a row the last 5+ 10+ years, draw down, win rate, profit factor and all that.
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I believe Indexes required greatest knowledge of Price Action than currencies IMHO, so if not doing well in Demo in Forex, Indexes might be tougher for you. Those who make it in day trading, you can expect few years before becoming profitable, hardly anyone who trade for themselves become profitable first year unless they were very smart and a programmer, tested all their ideas first.
Much luck
You can spread ym vs es and get a margin break and at 1:1 will create a mini es. The spread and the commish will double so you'll need to look for larger moves and I think with 2k you can hold overnight if you go home spread.
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Yes. Look to make min of 10x over a year.