How much should a trader start out with in their account to begin trading CL. Curious?
Depends on their risk profile. If you want to practice the 5% / 6 money management rule that Darrell teaches… about $20,000 if you have want to have a 20 pip stop. Plus, you need to factor in your drawdown and you usually want to have several times your max drawdown.
These are all numbers that you need to figure out for yourself. If you don’t have that kind of capital, just understand that your risk of ruin is MUCH greater.
Thank you. So what should I start out with. my capital is $3000. Nadex, Forex, or Stocks. Thanks
honestly, I have about the same, and I am going the way of forex… You can trade down to 10 cents per tick, and keep risk exceedingly low in forex, and still get the same types of movement as you would with futures…I would look at going with ninjatrader brokerage, through FXCM, as you can start with a 2000 dollar account this way, and keep your risk on each trade very much in hand…
I’d agree with what Yoshi said. It’s much easier to manage risk properly with forex, if you have a smaller starting capital.
Or if futures focus on instruments like dx and nq $5 a tick.
