great in theory, but in reality it is really just a bunch.S. Now, lets say you can generate 20 a year (on average). Its something you have to gauge. Nobody who understands these facts would put ALL their trading money in their trading account because it is simply not necessary. . Divide that by 4, and you get 242,500. Please leave a comment below if you have any questions about. Starting with 500 gives some flexibility in how you can trade; 100 doesn't. EUR/USD, buying or selling one micro lot, your stop loss order must be within 10 pips of your entry price.
Conversely, lets say a guy in Australia has 2 million dollars free to trade with, he is obviously not going to put all of that in his trading account, because he doesnt need. The only difference is the capital of your trading account. The 2 rule really started as a way for investors to spread their risk capital amongst a diversified spectrum of stocks and investments, but it was never intended to be used the way that many Forex traders use it these days. So, how much money can you make from Forex Trading? Do you want to learn a new trading strategy that allows you to profit in bull and bear markets? Not a lot, right? Whist the 2 rule may protect you as a beginner, youll probably never really move forward because youll be trading a very small amountyou have to up the ante and have confidence as your trading skill improves. I cannot think of many investments that yield anywhere near 100 ROI a year.