How Much Money Do You Need To Trade Forex Professionally? (Podcast Episode 5)

How Much Money Do You Need To Trade Forex Professionally? (Podcast Episode 5)


this is the Forex Q&A podcast this is VP
your host professional Forex prop trader with a brand new podcast every single
Monday answering user submitted questions now if you wanna submit a
question you may do so and whether or not it makes the show I will still
answer it to the best of my ability you just go to nononsenseforex.com hit
the ask VP tab and fill the little form and I will get back to you as soon as I
possibly can with the most honest and direct answer I can possibly give well a
lot of people don’t like my answers but I don’t care if you like my answers the
answer that I will give you is likely not the answer you’re going to find on
the internet right now most advice you’re going to find on Twitter and on
YouTube is not only not going to help you it’s probably gonna end up hurting
you in the end you need an honest and direct approach
straight from an actual professional and that is what this free podcast gives you
every single Monday and this episode is a really good example of what I just
talked about so many websites YouTube videos Twitter handles love to do
nothing more but blow smoke directly up your asshole with this question and I
want to address it right now again fair warning most of you traders out there
especially the ones who are just starting out are going to hate this
answer it’s a very sobering answer to a very common question I get but again
stick with the podcasts listen to it all the way to the end because as usual I
always offer somewhat of a silver lining a way out if you would if the initial
answer to my question is not what you wanted to hear but I have a feeling this
one’s gonna sting a bit let’s go ahead and get to it Sean from Boca Raton
Florida asks how much money do I need if I want to trade Forex professionally now
please don’t get me wrong I love it when you guys send me questions but a lot of
them are quite vague or have some type of ambiguous nature to it and this one
is no exception first I want to get this out of the way
when you say professionally this is the most loosely tossed around term out
there when people try to qualify themselves in terms of how they trade
Forex by definition trading professionally just means you’re trading
real money regardless of how big or small that is
so be very careful going forward when you hear anybody say I’m a pro Forex
trader I trade Forex professionally because all that could mean and they’re
not lying when they say it is I don’t trade a demo account anymore I trade a
real account that doesn’t mean they’re good at it that doesn’t mean they’re
living off the money they’re making that doesn’t mean that somebody hired them to
trade on their behalf it just means they trade a real money account so if that is
what you’re asking and I doubt that’s what you’re asking Shawn but if if
that’s the question you really had I think the answer is usually depending on
your broker 500 USD some might even go lower than that to start but usually
five hundreds the minimum if I recall keep in mind there only so many
brokerage platforms available to us here in the United States you know globally
you know you have a lot more options and some of those might go as low as 50 to
$100 who knows you don’t really need that much and this is great news to a
lot of starting out forex traders because you usually don’t start out with
a lot of money especially if you’re in your 20s you typically don’t have that
much money to throw around especially money you just can’t afford to lose
right away but if you were anything like me when I started out you probably made
this critical mistake stop me if you’ve heard this one you went somewhere online
to learn about forex and how to trade it you learn how to read a chart which you
didn’t know how to do before but turned out to be easier than you thought and
you learned all the cool little tools you can add to it to be able to predict
better which way price is going to go and lo and behold every example they
showed you whether it was a trend line or Fibonacci or the RSI indicator in the
examples they would show you worked like a charm worked perfectly made a bunch of
pips called a trend or a reversal just at the right time and you thought to
yourself hot shit look at that all I have to do is use one of these tools or
a combination of the tools that they’re showing me right now apply it to my own
trading and the sky’s the limit really and you’re telling me the do to leverage
I can get $50 for every $1 I put in the market or if I’m outside of the United
States I can – I can do even better I could have $100, $200 for every one dollar
I put in the market well this changes everything it’s just a
matter of time before I turn this $500 into Millions
I mean think about it just you just have to put this trend line on a chart wait
for it to bounce off it and just do that over and over again and I figured we you
know two three years from now I can quit my job in two years three years time
this $500 can easily be six figures I might as well go ahead and just put a
down payment on a new car right now it’s only a matter of time really and then
you go pick your platform you go set your little account up and what happens
that little system you put together that little method with the trend line and
the indicator and the Bollinger Bands work sometimes didn’t work all the time
only worked about half the time and that’s just not enough because your
money management skills were never developed and the combination of those
two things is a very bad combination and then there’s that one trade that just
wipes you out because you went short price went long and instead of
abandoning the loss which you should have done you figured it was just a
matter of time before that stochastic oscillator just started to finally make
its way back upward and everything was going to be all right but it didn’t and
now your money’s gone now if this example hits a little too close to home
understand that I’m not making fun of you I’m making fun of myself because
this is exactly what happened to me three times over and I don’t want that
to happen to you some people can’t afford to blow out three trading
accounts and some people will get their money blown out one time and quit for me
I don’t know what it was either I really felt like I had something and I just
persevered on probably coupled with the fact that didn’t want to wait tables
anymore and there’s such a desperation there at the time but I kept going and
it worked out but I realize how rare that is and even though maybe that’s the
best thing that can happen to you in terms of your overall growth is to
really really get crushed once twice maybe more I want to put you in a better
position than that to start I don’t want you thinking that that five hundred one
thousand dollar deposit is going to make any kind of dent in your overall state
of well-being thanks to Forex it’s just not enough you
should deposit it and trade it because you need to get used to trading real
money after you’ve demoed for a while because
especially emotionally the two things are very very different you need to get
over that emotional hump just understand that you’re not going to turn that
initial deposit into anything significant and those websites out there
that say that you can make 20 pips 50 pips 100 pips a day guaranteed are
completely full of shit all of them I can promise you this
anybody who’s put some real time in and has traded this market can tell you
that market conditions don’t always allow for this amount of pips to be made
that’s how we know they’re lying now rather than go off on a tangent about
these scammers online that promise things and don’t deliver let me go ahead
and answer the question well how much money do you need to trade
professionally and again if you hate this answer stick around I hope I’m
going to give you a way out but the real answer is a lot you need a lot of money
to be able to pull a good enough return to actually live off of what you make
trading Forex so let me let me give you a very sobering example let’s say you
have $100,000 in your savings account that you don’t need and you could
legitimately afford to lose so first up I think that puts you in the top 2% of
all earners in the United States and I think globally that definitely puts you
in the top 1% very very few people out there have that luxury but let’s just
say you’re one of those people alright let’s let’s play make-believe let’s
pretend now in forex for an entire year what is a good rate of return well any
type of investing listen at the stock market for example I think average is
what 11 percent every year and and that’s excellent fortunes have been made
just putting money into the stock market and then just doing nothing for 40 years
because of all that compound interest over time now if you can beat eleven
percent that’s really good and that’s not something a new trader is
going to be able to accomplish that that takes some time to get to that level
there are rich people in New York City that give their financial advisor
tens of thousands of dollars sometimes more just to eke out 13-14 percent return
year after year to them that is certainly worth the money that is
upper-echelon rarefied air type stuff but let’s say
they you even go beyond that let’s say you are now like the Warren Buffett
level who does 20 21 % right about every year give or take on average let’s just
say you could pull it to 20% return in spot forex year after year in a $100,000
account that is a profit of $20,000 before tax now is that living
comfortably to you is that the lifestyle you’re looking for as a professional
trader it better be because that’s all you’re getting because if if you spend
that $20,000 you make now you have no chance to earn compound interest you’ve
taken that out of the equation you’re just living off of what you make on a
$100,000 account making an extraordinary 20 percent return a year after all those
stars lined up just perfectly you’re making a few thousand dollars over the
poverty line just think about that not what you wanted to hear was it well
there is another way and this way involves a lot less money out of your
pocket you can take the route I took I didn’t have a hundred thousand dollars
in my bank account I don’t have anywhere near that I waited tables and I bought
my condo in 2007 which was the dumbest time to buy and so needless to say I
didn’t have a ton of disposable income just laying around at the time but I
learned that there are people out there and there are companies that will give
me money to trade on their behalf provided that I’m really good at what I
do and I can prove consistent results over time so step one is get really good
at forex trading put a system together that works and fine-tune it and perfect
it get good at dealing with losses get good at dealing with wins and be able to
hammer out really good consistent results year after year because you’re
gonna need at least a year’s worth of performance to show these people and
this can be on demo account this can be in a very small trading account as long
as you show a really solid percentage and consist
results over an extended period of time you can get companies to look at you but
they will also have their own tests for you you will also have to be able to
trade in a what is it kind of a probationary period where you will have
to show them in real time how you do so if you fudged your numbers in any way or
you can’t perform under pressure you’re going to get exposed but if you are
legit and you have a really good system in place and you know how to trade it
there are prop firms out there there are hedge funds out there they would like to
have you you have to be legitimately good because even if they hire you you
have to maintain that level of profitability over time and that in
itself is very hard to do I’m proud of the fact that I’ve been with my prop
firm since 2014 and I’m still standing and I’m still doing well that really
separates the actual professionals from the pretenders
so overall the good news is yes you can trade professionally with very little
money you just have to be good at what you do and you have to be able to prove
it and there is no better place to learn how to do that then right here on the
Forex Q&A podcast on nononsenseforex com and on the no nonsense forex YouTube
channel I didn’t have that blunt honest person telling me what I was doing right
and wrong that’s why it took me three blown-out trading accounts in five years
just to even get looked at by somebody you now have that strength in your
corner but only if you want it and if you do subscribe to this podcast
subscribe to my youtube channel and make sure nononsenseforex.com is the one
place you go when you’re looking for real forex trading advice that you can
actually use and that won’t lead you down the wrong path like everything else
does believe me I went down that path it sucked it was horrible over 99% of
all traders go down that path and they get nowhere you now have an opportunity
to do much better than they do in a much shorter amount of time but it will not
be overnight if you’re all about quick money and instant gratification I have
nothing to say to you this podcast is for people who want to get there the
right way in a way that makes them sustainably profitable now if you feel
like I delivered on this podcast I gave you an answer that nobody else gives you
and whether you liked it or not learn something as a result give me a like on
iTunes like I said you subscribe it means a lot the podcast
is just starting out and I honestly don’t care if I get a ton of subscribers
on anything I do I just hope those of you who took the time to seek this out
and those of you who decided to ditch all that stupid conventional wisdom and
join up on my team and line up with my way of thinking I want to make your
forex trading dreams come true just like mine did if over time I can amass a
small group of just absolute killers I’ve done my job so we’re gonna keep
this train rolling and we’re gonna start getting a little more technical a little
more advanced questions as we go forward I have a couple more basic questions I
think I want to get out of the way but then we’re really gonna start to sharpen
those edges so get excited traders you should be excited but we have so much
more to uncover and every time we do it’s gonna get you that much closer that
much closer to becoming the Forex trader you’ve always wanted to be I will see
you in episode 6 and until then go out there and get it

65 thoughts on “How Much Money Do You Need To Trade Forex Professionally? (Podcast Episode 5)

  1. Finally true, real talk! Unlike all the rest of the scammers and BS youtubers out there! I'm not a complete beginner, but I know I have more learning to do.I have finally found a REAL MENTOR! Thanks VP!

  2. Im new at this. decided in august to learn forex.after listening to maybe 500 or more videos i thought there must be a better way than just indicators except one kept sticking out the atr. I punched up the atr and thats how i found your channel. I have listened to all your material and have subscribed im subscriber # 822

  3. Grate podcast !
    I would have 2 questions for you if you could please answer.
    1 Would you know or heard about Anton Kreil ? If yes
    2 What do you think about the Institute of Trading that he manage and training people to trade?
    Thanks and best of luck!

  4. VP, thanks for the honest and constructive advice. Your down-to-earth and no-bs style has helped me focus on key elements (risk management, trading plan, entry and exit strategies) to become a better forex trader. Kudos!

  5. Come to India,man. Start teaching forex. Millions of traders will take your class given how logical, legit your content is.

  6. I am so glad that i am a new trader and the i found you. I was thinking 2 weeks ago to buy a course around 600 dollar haha all based on the dirty indicators. So i don't need to reset my thinking on forex and start over. Many thanks sir all off your videos are solid and honest i think. And its good to spend little time on the job but still get it done. Even for me cause i am a simple truck driver and don't have a lot off spare time. Best regards

  7. So far I'm getting a lot of clarity from watching your videos! You clearly know the forex industry in depth. But if I understood correctly are you saying you can't make a proper living by trading forex with (for example) $100,000 dollar account? If that is the truth and I'm sure you're being honest with us does that mean forex is a waste of time for traders who want to trade retail for a living? Thank you in advance if you answer me, I really do appreciate you taking the time!

  8. You got it guys,you are better off investing your savings in a long term stocks with a financial advisor,thats the message of this episode.

  9. Openbaring de cirkel is eindelijk rond! Same Story and not to much learned just enough to understanding the avoids and the plan making is now a real thing i can do myself no doubts x

  10. Then how are their people starting with 500 and now have a 15k account in less than a year. If you are good 5 to 10 percent a day is possible. I started with 50 dollars and that is 10c a pip. Not a lot but it's real money after beasting on my demo so it's good to practice and keep learning with. Risk management is key. I'd let trades go 20 percent negative on my demo until the reversal and end profitable. Not as easy on real money. Trade 10k and you get about 50 a pip. I think 10k is the amount to make enough return to live off of and build a solid account.

  11. I wonder how much of the trading strat has to be revealed to get in with a prop firm. Showing results seems obvious, but I wonder if they want to know "everything" before they take you on?

  12. How to do it for real video .8k views
    how to get rich overnight easy video .. 2million views
    Forex is 99 % of peoples biggest challenge they will ever have , its a big dream they are sellling … for their own dreams

  13. Another Eye Opening Podcast, I cannot Thank You Enough VP!!! As the other Jason said, "I have finally found a REAL MENTOR!"

  14. VP… YOU ARE THE FUCKING MAN! Seriously… it is so refreshing to meet someone who speaks honestly and is 100% real and doesn't give any fluff on Forex. Thank you… I will make the daily chart my new friend hehe!

  15. If only this podcast added something other than advice it would be the best trading stop ever, but advice can only get you so far!!!

  16. Your approach/perspective is something I haven’t seen by anyone else. Discovered your channel recently and started watching your podcast at the beginning of your channel.

    Most people tell and explain something about FX like it’s simple like that… can’t trust that. Easy doesn’t exist if you’re looking for true success, and there ain’t no recipe.

    I’m not new to FX, but I ain’t a expert neither.. the further you go, the more you feel like you don’t know and doubt starts coming. I really think you can’t trust nobody in this business (online 🤷🏼‍♂️), but for you VP, you feel different and I love listening to your podcasts. There are a lot of things that we are on the same level with. You are straightforward and things you say sounds to make sense. You are very inspiring and we can learn a lot from you, not only technically, but most importantly the way of thinking, the mindset.

    Like I said earlier “you can’t trust nobody”, which is true I think. I just mean that you’ve gotta think for yourself at the end. And you are helping great right there. You make me think about how things work and make me review myself. It’s like, you’re not showing and giving us the fish… you are showing and teaching us how to catch that fish. I can go on telling shit, but it’s difficult telling my message through here.

    Long story short, I’m gonna watch every podcast of you since the beginning and then stay up to date with new releases. Just love hearing your thoughts. You are a blessing VP❤️

  17. I have been on your train for a week now. I have learnt more in this week, than I have since 2010. I have to get all the bullshit out of my head.

  18. with those % i'd invest in mutual fund and forget it. But if I have 100k trading acct i'd have that % monthly

  19. i have to watch this video almost every week. yes my system that i’m creation is decent so far . but i must play the long game with this. Yes i’ll like to not work a normal job right now but hopping into the markets ASAP is the worst things you can do.

  20. Traders way 1:1000 leverage. Pax Forex you can start with 10 USD if you do that, make sure it is cent account

  21. I like the answer it's realistic and without any nonsense. It depends where one lives too in many places outside the US gaining 20K or even 10K extra changes everything. It's possible to easily live off 20K very comfortably.

  22. 100k*10% will indeed give 10k per year… But what if you use leverage? Just a 10x leverage will bring this 10k to 100k which is something you can live off isn't it?

  23. Great Channel here straight forward no BULLSHIT, have been trading for 5 years losing and spinning my wheels. Finally found something I can follow and believe in ,THANKS VP for putting this out there for us to learn the RIGHT way to do this.

  24. When someone says something is their profession, it means they make a living off of it. So I don't consider someone that trades real money a professional if they still have a job. That's like  me saying I'm a professional basketball player because I play pick-up games at the park.

  25. I did the calculations a long time ago about how long it would take to get anywhere on maximum income with stocks and blue chips – I needed to already be a millionaire to get anywhere. But this time, I find myself excited about learning about forex. Going back to the calculations and the % of failures it doesn't bother me this time. Thank you for this podcast, VP.

  26. Before I accessed this podcast, , I saw an ad about ANOTHER creator guiding viewers to PAY them learning forex.😅😄😂. Thanks again! I'm still laughing.

  27. tbh, the answer is so depressive !
    but i know this is the truth in the end..

    Thanks man.. what can i do to support you ? how can i help to keep your content up !?

  28. How about leverage. Trading with a 20 leverage and an account of 5000$ , that means that you are taking the wins or losses as you would trade with 100000$.

  29. So I did the calculations and after looking at every source I could: Taking the following into account…
    1. Given that I want to put 3% of capital into margin.
    2. 40:1 leverage
    3. Trading a currency pair that costs 1.8900. (The highest today)
    4. Micro Lots

    Total Capital:
    $1,575.00
    (3% Margin), $2,362.50
    (2%).
    $1,575.00 (40:1 Leverage), $3,150.00 (20:1)

  30. 15% per year, but you should mention that this is for daily timeframes (and that you see no way to make lower timeframes work), else people get confused.

  31. I remember the Draconian rules for just Americans I was a EA trader good one two, so I learned a lot from my EA’s on all my accounts live and demo and 500 to 1 was awesome if you new how to use it blown accounts of course I’m a tester love the Forex few make it emotionally most will do stupid things as emotionally most can’t be a robot that is what is required straight logical trades. Harder to do than you think one day you will be like ya I’m the man won some trades feeling rich few days latter get your ass kicked emotionally trading. This Guy Talking Awesome So True Everything I Have Heard Him Say!

  32. He didn't say you have to trade professionally. It's actually a pretty simple question in this instance (I know there are a lot of ways to word it which make it more complex) but I think this guy is just saying "to physically make a trade". With cryptos you can trade with pennies. Forex I think it depends on the exchange, but there's also a lot of crooked exchanges out there too.

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