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What should I open my mini account with?It is true that all clients who open a forex mini account with $250 or more get our exclusive trading ebook. Nevertheless, we recommend that customers start out with with $1000 or more if possible. Let me explain why we make this recommendation. We hear the same questions again and again from traders who are new to the forex market: "What is the minimum I can open a mini account with?" This just doesn't happen in the forex market. Novice stock and futures traders ask this same question all the time. The reason for this is that many feel that if they start with less, they don't have to lose as much sleep. This is a faulty way of thinking. Ex: Opening your mini account with more. Why?* Did you know that you can reduce your risk and maximize your trading potential by depositing more money in your mini account instead of less! Let me show you why. Let's say that you open a mini account today to trade currencies. Let's say that you only deposit $300 in your trading account. Let's say that you make up your mind to use a 15-pip stop loss on every trade, since 15 to 20 pips is commonly use by short-term forex traders (please read through free forex education section if you need more information). You also decide that you are going to take a position consisting of 3 mini contracts at a time (the forex mini e-book explains why trading multiple contracts at at time gives you greater flexibility). Let's say that your trading strategy gives you a buy signal on the EUR/USD pair. As a result, you buy 3 mini lots and set a stop loss 15 pips away from the entry price. This would be your potential exit point if the trade goes against you. Now, pause for a second and think if this makes sense or not. Each pip for a mini lot is worth $1 for the currency pair in question. Thus, a 15-pip stop is equivalent to a potential loss of $15. When we multiple this by a position size of 3 contracts, the potential loss on this trade is $45. You might be telling yourself, "Forty five dollars? That's no big deal!" In reality, as a percentage of your account size, $45 is 15%! This means that all you need are a few losing trades in a row to blow your account out of the stratosphere! Not a very smart way to trade. Same scenario with a $1000-mini account.* With a $1000-account, $45 represents less than 5% of the account value. Consequently, over 20 loosing trades in a row are required to bring your account to 0. In our free e-book, we strongly stress the fact that you should not risk more than 5% on any given trade if you are day trading. Consequently, we suggest that you start with $1000 or more in your mini account, and use proper money management (we will teach you this in our live training and in our forex mini e-book. What about if I use a smaller stop loss?* This may not help you. Due to the inherent volatility of any market, including forex, your stop losses can't be too small or else your losses can multiply quickly as you continuously get stopped out of the market (whipsawed); so using too small of a stop loss may not be feasible. What about if you have less than $1000 to open a mini account? The minimum is $250. $1000 is just what we suggest . Make sure that you read our e-book completely before you start trading live. But if you can open your FX mini account with $1,000, we recommend that you do so. Click here to open a mini FX account online. AFTER you open and fund your mini account, you will receive your account number in an email. Once you know your account number, you can request your free e-book. Click here to request your forex mini ebook.
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