Bill White Says: A Practical Guide to Trading Forex with Forex.com
Forex trading is an exciting yet challenging way to speculate on currency movements. Whether you’re a beginner or an experienced trader, platforms like Forex.com, operated by StoneX Financial Ltd., provide a straightforward way to enter the market with a small investment and build your capital over time. However, as with any form of trading, risk management and patience are key.
Getting Started with Forex.com
One of the biggest advantages of Forex.com is that opening an account is quick and easy. You can start trading with as little as $100–$200, making it accessible even for those new to the market. The process is simple:
Register an Account – Sign up online with basic personal details.
Verify Your Identity – Provide the required documents for compliance.
Fund Your Account – Deposit funds via bank transfer, card, or e-wallet.
Download the Trading Platform – Use Forex.com’s web platform or MetaTrader 4/5 for advanced charting tools.
Start Trading – Choose a currency pair and place your first trade.
Trading with a Small Investment: The Slow but Steady Approach
If you’re starting with a small balance (say $100–$200), patience is essential. Many traders fail because they risk too much too soon. The key is to trade small and let your capital grow over time rather than chasing quick profits.
Let’s break it down:
The minimum trade size for Forex.com is 1,000 units (1 micro lot) of a currency pair.
If you sell EUR/USD at 1,000 units, you’re risking around $30 per minimum position.
If the market moves against you significantly, this can exceed your available capital, leading to a margin call and wiping out your account.
Maximum recommended position with a $100 deposit? No more than two contracts, and even that is risky.
Understanding Pips and Profit/Loss
A PIP (Percentage in Point) is the smallest price movement in Forex. For most currency pairs, 1 pip = 0.0001 of the price.
If you trade 1,000 units (1 micro lot), each pip movement adds or deducts $0.125 from your balance.
If a trade moves 10 pips in your favor, you make $1.25.
If it moves 10 pips against you, you lose $1.25.
This may seem slow at first, but it minimizes risk and allows you to build experience before increasing trade size.
Why Do 75% of Traders Lose Money?
According to Forex.com, 75% of retail traders lose money. Why?
Overleveraging – Using too much margin and getting wiped out on a bad trade.
Lack of Patience – Expecting fast profits and making impulsive trades.
Emotional Trading – Letting fear and greed dictate trades instead of logic.
Not Having Extra Capital – Being unable to add funds to protect positions.
If you go slow, trade conservatively, and stay below 50% leverage, you can increase your chances of being in the winning 25%.
Bill White Says…
"It's true that 75% of traders lose their money, but you can increase your chances of being part of the 25% by going slow, staying below 50% leverage, and having extra capital available when needed."