eToro – Forex Trading Forum

[Apelli]

Hey everyone!
im new to forex in general, made a demo account and downloaded eToro today, ''won'' a few bucks in the pratice mode. Found it fun, so i decided to upgrade my account and deposit 50 USD.
But I got very nervous @ all this when i read about the Leverage...

so my question is, if I Deposit @ 25 USD, then i will automaticly get a leverage on x400(=10000) aye? if i then loose.. can i loose more money then i have deposited to my eToro account?
if i did a bad Trade, and lost with @ 2%. then it will look something like this:

10 000x0.02=200USD-25USD=175 USD in debt?



Apelli

[TheChosenOne]

Hi Apelli - your enthusiasm is great - but my advice is don't rush things. Spend a few weeks on the demo.

I'm new to eToro but have spent some months learning about forex - you could build a good second income from forex, but live and learn - go to the eToro Help pages and read some of the great posts on this forum.

To answer your question - you can never lose more than you have invested. So you would never be 175 dollars in debt (to use your scenario) - you would have lost all your capital.

eToro will assign you an account manager who will help you learning of forex and the eToro platform.

[Tropezienne]

Hello Apelli and welcome to the eToro forum - you have chosen a great platform for you future forex career - but take heed of what has been said before in reponse to your question.

Forex requires a long-term learning curve (months, not days) - and not a steep learning curve - just a gradual immersion into what can be a good second income and in time a very nice main income for just a short spell of time in front of your computer each day.

You need to learn two things - about forex (naturally) and how to use your chosen forex platform.

My advice would be to just let that 50 dollars sit in your real account for now and go back to the practice account. Learn how to get the most out of the eToro platform methodically - use the Help pages that can be accessed via the 'Help' tab at the bottom of the platform screen.

You have jumped in at the deep end by worrying about the leverage on your real account before you have experimented for some time on the practice account - you need to learn about pips, and spreads and the nature of different currencies.

Select just one or two currency pairs and get to know how they behave at different times of the day by watching the charts. Also, don't trade all of your capital - 2% is enough, maybe 5%.

Don't expect to earn vast riches from forex ( who knows - you may get lucky with an exceptional trade one day, but this is not usual) - do aim to gain just a few pips each day.

I aim to gain a minimum of 10 pips each week - believe me this is very modest - but by compounding my capital increases nicely and by only risking 5% of my capital on one trade a day I only lose a little if I lose.

Your enthusiasm is great - and forex can be fun - but get rid of any intemperate urges to trade on the practice platform - if you fall below the 2000 virtual dollars that you have there - you can set yourself a challenge to make it back up - and then you will be moving in the right direction as far as developing your trading skills and discipline is concerned.

Keep coming back to the forum - to read the great posts here and to let us know how you are getting on.

[Apelli]

Thanks for the replys, was very helpfull =)

Past week ive been 'studying' www.babypips.com, wich has given me a better understanding about Forex.
thanks for replys and tips, im going back to my pratice account =)

Apelli.