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Posted by Felix Okoli on Friday January 20, 2012 17:20:58:

There could able a couple of ways you can make money trading forex with $1000 and you udon't really have to answer to anybody, afterall it's your money, but in order to be successful at doing so, you should try following some basic rules and sticking with the strategy that works best for you.

Here are some simple rules if you want to trade forex with $1000:

- Risk only about 1% per trade. For example, you can risk $10 per trade on 50 pips.
- Use a good risk to reward ratio for eg 1:2
- Get to know the trend
- Trading the trend should be preferred to scalping short trades
- Buy from lows and sell from highs

Let me give an example of how you can grow $1000 to about $1500 or $2000 within a month using the above rules

Capital: $1000
Stop loss: 50 pips
Target profit: 100 pips
No of open positions: About 5
QTY per position: 1000 units
Preferred currency pair: EUR/USD

Considering the EUR/USD market today which was a little bit bearish, if you started selling from 1.2988 and targeted 1.2888, you could have gained almost 100pips and this would earn you 0.0100*1000 = $10 and for 5 positions, that would amount to $50 per day and that's assuming you started selling from highs but if you came in somewhere in between, you should have gained around 50 pips each if selling from new highs and that would give you $5 profit each.

One trick if you are selling or rather short selling using different positions is just to spread your risk. You may place a first sell at 1.2950 and another one at 1.2960 and so on. When opening multiple positions for sell, make sure you try to open a new position from a much higher price than the former one so it helps in giving your more profit and staying power. The same goes for buying when opening multiple positions, buy from lower lows and sell from higher highs with little amount of capital.

By the time you get to a month, you should have been able to accumulate over $1000 profit which is considered a success.

So opening about 5 positions a day from different prices and with about 1% of trading capital can make you big money. Don't overtrade with your capital and risk margin call like many newbie forex traders in Nigeria do. Imagine someone opening a position worth $500 when he only has about $2000! Now that's over 25% of your capital and you should close such trade as soon as you can.

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Comments:
Re: How to trade forex with $1000 Reply by Kuton on Wednesday February 22, 2012 at 9:29:15:

I have been losing money too often but I can now see the reason from your wonderful advise. Thanks

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Re: How to trade forex with $1000 Reply by Okeson on Friday December 20, 2013 at 22:35:34:

Sounds good.
The secret to making good money lies on trading the daily time frame(swing) along the direction of the trend.this is best done using price action at retracement levels. Where u look for pin bars and or engulfing candle formations.doubling ur account every month is a bad trading habit as u would lose ur account due to overtrading. Less is more simple!

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