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Better to trader forex or futures with small account?


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Better to trader forex or futures with small account?

  #1 (permalink)
trader343
tulsa ok 74145
 
Posts: 3 since May 2014
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Thanks Received: 1

I am trying to decide if I should focus in on forex or mini futures with a small account size of $2000. I was thinking mini forex as i have studied it intensely for quite some time but would like some feed back as to if maybe sugar 11, grains, or another mini future may be better. Thanks

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  #3 (permalink)
 
lovetotrade's Avatar
 lovetotrade 
Rockledge, FL
 
Experience: Advanced
Platform: Sierra Chart
Broker: Gain Capital, OANDA
Trading: GBP
Posts: 416 since Oct 2014
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I have been where you are, and I am a firm believer in starting in the forex markets. I started with a micro account with $90, and it was the best $90 I ever spent lol. After previously making good money, and then blowing up some option accounts, I started very conservatively.

Micro is 10 cents a pip, so with no emotion in the trade I was able to focus on market functionality and profitability. Then once I was profitable with my $90, I threw in another $500 and bumped up my leverage. It takes time to become comfortable with larger and larger $ on the line, so this helped me become comfortable gradually, and to prevent me from adding money to an account that wasn't profitable. Because even if you took a hit and lost half, you could now reduce your leverage to half, and trade back up to that amount without blowing up the account. As compared to futures where your leverage will stay the same till your account hits zero, well until you get a margin call anyway.

Another big plus is being able to trade and scale out in multiple contracts in forex, that you could not do in futures with that account size. I trade a small futures account with one contract, but my goal is to play things quite conservatively until I get my account to where I can trade at least two contracts. But I never would have even have opened the account at $2k, I believe you might as well throw that money out the window. You will gain a little market experience, but it will be very quick and very expensive.

I ended up making the most money trading the forex monthly and weekly charts where you can really catch the large price swings. If the day trading seems tough at first, I would switch to the longer term charts. If you cannot be profitable in longer term trades, it will be near impossible making it day trading. Where so many other factors come into play that are even harder to control.

I used FXCM and had a great experience with them.

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  #4 (permalink)
 Cloudy 
desert CA
 
Experience: Intermediate
Platform: NT7, various
Broker: various, TDA
Trading: NQ,ES
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Thanks for the informative forex trading post.


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  #5 (permalink)
 prouser 
Zurich/Switzerland
 
Posts: 79 since Oct 2014


trader343 View Post
I am trying to decide if I should focus in on forex or mini futures with a small account size of $2000. I was thinking mini forex as i have studied it intensely for quite some time but would like some feed back as to if maybe sugar 11, grains, or another mini future may be better. Thanks

Start at a FX broker that allows to trade with small sizes, i.e. Oanda (smallest trade size 1 unit) or similar ones. Don't go to a broker that is located in Cyprus or similar countries having no regulations.

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  #6 (permalink)
sharpshoota
Bodoe , Norway
 
Posts: 143 since Jun 2014
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Another alternative is f.ex. the ETF called DBA

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  #7 (permalink)
sledmt
Kalispell montana
 
Posts: 158 since Jan 2015
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How does spread trading futures play into this mix?

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  #8 (permalink)
 
empty's Avatar
 empty 
Louisville, Kentucky
 
Experience: Intermediate
Platform: Sierra Chart, TastyTrade
Broker: Various
Trading: Futures, Options
Posts: 100 since Oct 2012
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sledmt View Post
How does spread trading futures play into this mix?

Can you clarify what you're asking? When you're trading a futures contract such as 6E that is the future contract on the EUR/USD spot.

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  #9 (permalink)
 haonkered 
Houston, Texas, United States
 
Experience: Advanced
Platform: TradeStation
Trading: Futures
Posts: 25 since Jun 2013
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Can't confirm for sure but I imagine most futures accounts will require 5k starting capital. With Forex surely much less is required.

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  #10 (permalink)
 
torroray's Avatar
 torroray 
Malaysia
 
Experience: Beginner
Platform: Multichart DT
Broker: MB Trading
Trading: Fx
Posts: 272 since Nov 2009
Thanks Given: 52
Thanks Received: 61


Start with Ninja Brokerage with 1,000.

Trade M6E, tick size is $1.25 per contract.

Daytrade Margin is $250.

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