ASKING YOURSELF THE RIGHT QUESTIONS
TIER ONE TRADER:
DEPOSIT UP TO £5,000
This tier is all about the trader who is starting out on their trading journey. This is a good place to start if you are limited to what you can afford to lose. However, it is important to be realistic as to how much you can make from a £5k deposit. Here’s why.
It comes down to mind set and perceived risk. If you deposit £5k and are prepared to lose £1k you’re setting yourself up with a realistic trading goal. Below is an example of this scenario.
2% of £1000 = £20. The problem with this is you have to pay the spread. As most spread betting platforms start at £1 point, if you trade gold for instance the spread is around £5. Out of your £20, you make £15. In the current volatility a 15 pip stop can be hit in a matter of seconds. You literally have no margin for error.
£1k accounts come with margin requirements which means you can only trade a maximum of £3 a point. If you wanted to trade an averaged position (the best way to trade volatility) you are at 50% of your stop (£5 spread cost) simply by placing one more trade.
If you set a 1-2% risk parameter as a stop on each trade based on your capital. 2% of £5000 = £100. This gives you up to 10 consecutive losing trades before you are stopped out of your total £1000 limit. What is the likely hood you will lose 10 trades for a max stop loss 10 times in a row?
You simply, mathematically and statistically, have more chance of winning in the short term with more capital. The reason 90% of traders fail is because they enter the markets under capitalised. The good news if you deposit £5k you still have the ability to make money and enjoy trading. With my help at this tier 1 level I can help you with.
- Free access to my iView charts
- A 1-1 mentoring session
- Access to my live webinars
- Introduction to a broker that will give you the best spreads and value for money
If this sounds like you, get in touch to see how I can help you become the type of trader you envisage. At this tier and level of deposit you will need to invest in your understanding of how the markets work.
My iView charts are one of the best way to monitor how markets move and correlate. Consistency is key trading and once you master the charts you are on your way to mastering trading.