CFD/FX Options strategy 

How much are you going to invest?

One of the main questions when you have everything set to trade is: how much are you going to invest. There are many tips about this to be found on the internet, but we’ll discuss the most important ones here. If you follow our tips on how much to invest, you’ll have the exact right amount set in no time. There are 2 types of investments you can make. First you have the total investment, or what we call the deposit. The other one is the investment per trade. We’ll give you tips on both.

Your Deposit

The deposit is the amount of money you will put into your account. This is the total sum you will use to trade. If you run out, you can always deposit more, so it’s not a lifelong decision your making when depositing money. However, we have 2 tips to take into account when depositing.

1.Can you afford it?

The most important rule for putting down a deposit is making sure you can afford the deposit. This means that you must never deposit money that you cannot afford to lose. If you don’t have enough money to pay your bills, you definitely don’t have enough money to trade. Remember: trading means taking a risk. You can lose, and you must be able to cope with it without losing your house or going hungry.

2. Check the bonuses

With the above in mind, there is another tip. If you can afford to lose more than the minimum required deposit amount, you can choose to deposit more. Should you always choose the maximum amount? Maybe, but you can also look at what you get for your money. Look at the account type that gives you the best bang for your buck. A nice bonus and maybe a training, for example.

Your Investment Per Trade

For the investment per trade there is a basic rule most novice traders use. They use the 5-percent rule, meaning you invest 5 percent of your deposit (plus bonus) per trade. So for example, you have an account at FINMAX to which you have deposited 500 dollars. The account manager has given you a bonus of 100 percent (note that this is just an example, the actual bonus may be lower or higher). This means you have 1000 dollars in your account. As a novice trader, you should not invest more than 50 dollars per trade.


Related posts

Leave a Comment