For every $50,000 in their account, most professional forex traders and money managers trade one standard lot.
For every $5,000 in their account, if they traded a mini account, they would trade one mini lot.
Give that some time to register in your mind.
Why do less seasoned forex traders believe they can succeed by trading 100,000 standard lots with a $2,000 account or 100,000 micro lots with $250 if professionals trade in this manner?
Never open a “mini account” with $250 or a “standard account” with merely $2,000, despite what the forex brokers may tell you.
Don't set yourself up to fail
Before opening a normal account, a mini account, or a micro account, we advise that you have at least $100,000 in trading capital, $10,000 in trading capital, or $1,000 in trading capital.
Open an account only if you are consistently good, of course.
Open a tiny account if you only have $60,000, then. Open a micro account if you only have $8,000 available.
If you have just $250, start a demo account and remain with it until you get the extra $750, at which point you should start a micro account. Find work if all you have is $1.
Remember what you just read if you don’t remember anything else from this lesson.
Okay, please read the previous sentence again and commit it to memory. Brokers may allow you to open an account for little $25, but that does NOT mean you should.
This is why:
Since most new traders don’t fully get what “leverage” and “margin” actually mean and how it affects their trading, we think the majority of them establish a forex trading account with the absolute minimum deposit.
It’s imperative that you are well informed on the significance of trading with leverage and free from any ignorance.
We promise that if you don’t have a firm grasp of leverage and margin, your trading account will be blown!
