We must have a plan in which there must set some goals, as you travel the road to them and what you do to potential mishaps that may arise or surely arise. Having a plan does not guarantee success at all but it is much better to have it get it clear.

It is assumed that you have been training and practicing for at least one year with your trading system, so you have to have data on it, for example, maximum drawdown expected. Suppose the maximum drawdown wait is 30%. If we review the lesson on the pip and you will see a standard lot is $100,000. When trading 1 lot in pairs like EUR / USD the benefit is $10 per pip of profit and loss is $10 for every pip lost. So, do not count the pips of commission you get from the broker, with a movement against only 30 pips would have lost $300 thereby doubling the maximum drawdown, it would lost more than half of the money in the account and there would be the only limit of a call margin. Obviously in this case, 500 USD not be the amount of money needed to start because it would be too risky for trading conditions for the broker and trader’s trading style.

Now suppose the same conditions as above but instead for the broker it only allows operations with 1 lot per 0.1 changed. To reach that point, it would be disastrous with 300 pips loss. And with 150 pips, the loss would have reached the maximum drawdown. This situation is a lot more lenient. And it can be worth $500 as starting capital, or may not, depending on the objectives and other characteristics of the trader’s trading style.