Quote:
Originally Posted by pipdiddy
YES! Starting with $750 on a mini account is suicidal. We discuss that in our Leverage lesson.
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And to reinforce this idea lets talk about some money management. Personally I only want to risk 1% or less per trade. So 1% of $750 is $7.50. So being a good trader like you are your stop loss would have to be $7.50 away from your entry. Now figure in the spread! It is even shorter! So on a XXXvsUSD pair with a 2 spread you are looking at a 5 pip move before your stop should be hit, if you are being smart. When can a 5 pip buffer be good enough for an individual? Maybe if you are scalping, but when are newbies good at scalping? Also, scalping requires a ton of initial capital to make it worth your while. So yes $750 on a mini just won't work.
However, what about a micro? I think you can manage it on a micro more so than a mini. In the babypips articles they say $1,000 for a micro, but I think you could get by on less. So perhaps consider a micro? Or just save that $750 up for that $10,000 for the mini.