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Well, $3,000.00 is a pretty small amount. If ones truly wish to start out in this business, I generally suggest no less than $25,000.00
That's not to say that it's impossible with only $3,000.00. It's just that the strategy has to be different. For example, I started a "Challenge Account" where I publicly am managing a starting investment of $500.00, and only $100.00 addition deposit every month. I created a rule set, and strategy - that revolves around the size of the account as to
1) How often I'll trade so as not to be hit with drawdown and overtrading. If I have a trade within a month and have a win, then all the better. At the first loss, I have to wait until my next deposit that covers the size of that loss and then some.
2) Still increasing the account size, while simotaneously not killing the monthly deposits.
3) You can trade over the 3% to 5%, if your incoming deposits make sure that said risk is covered.
And yes, it means you can't afford much in the way of risk at this point. For example, a $3,000.00 account, 3% to 5% is between $90 and $150 per trade. Which calls for an understanding of technical analysis. You might be able to follow point 3, and risk, say, 10%. But only if you make another deposit of $300.00.
Following those money management principles? I've had 3 trades lately, with only 1 of them a winner. But I'm still up on my money.
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