i just read this and i want to know What do think?? Is that true:-(((?
what about to start by 300$ to try with is that mean i will lose?!
Don�t ever open a �standard account� with just $2,000 or a �mini account� with $250. The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don�t understand how leverage really works.
Don�t set yourself up to fail.
[U]We recommend that you have at least have $100,000 of trading capital before opening a �standard account�, $10,000 for a �mini account�, or $1,000 for a �micro account�.
So if you only have $60,000, open a �mini account. If you only have $8,000, open a �micro� account. If you only have $250, open a �demo account� and stick with it until you come up with the additional $750, then open a �micro account�. [/U]
The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don�t understand how leverage really works.
The part in red is the main idea behind this whole section.
The warning is[B][U] DO NOT[/U][/B] attempt to trade with
$300 as though you are trading with $3000.
You will not survive too long in the market if you trade with
a pip value greater than 10 cents.
It is a long haul, but keep your eyes on pip count not monatary
gain, until you can bring your account up to a large enough level.
There are many reasons why new traders fail quickly but it is certainly true that the risks they take in terms of leverage are truly staggering and it is almost inevitable they will take a fatal hit
If your going to start with $300 there’s only one broker you should be considering and that is oanda. They allow variable lots which allows you to adjust your risk up to the last cent.
Could you please give me the names of other brokers besides Oanda that allows to any size trade such as 10 cent per pip and will be cool if this broker offer MT4 platform
You wont find a reputable broker other than oanda who allows that kind of position sizing. You could use mt4 for your charting and oanda to place your orders.With $300 as your opening balance oanda is really your best bet.
For the 10 cent/pip brokers I have seen both Alpari and Interbank FX who use Metatrader 4. In both cases you can use lot sizes (at least for demo…which is where I am) of .01 giving 10 cent pips. I know NOTHING of their real trading policies, record, etc.
Speaking of this, the other day I was house cleaning and I found 11 cents by the washing machine. More money than I had made demo’ing, but I’m still trying.
In response to Interbanks trading methods…yes, you can start off trading with just a penny a move if you have a much smaller account size…I know this b/c it’s the way I started for a couple of weeks. It’s good for practicing and getting a head start on learning the actuall game, but not much more than that. If you want to make money, then you need a much bigger acount size…atleast a grand as some else here mentionned…perferbly 5k to make some decent returns each month without presure.
But that’s just me, I can live off of 500 - 1k a month easily and live a very comforatable life style…so it all depends on your means of living.
I wouldn’t consider myself as a newbie but I did open my trading account with $300. Trading mini lots. I usually trade 1 full lot for majority of my system, if I’m only 75 to 80% sure, I’ll open .5 lots and still make a little bit of profit.
I really don’t think the main problem is undercapitalization(is that a word LOL) but I think new traders have unrealistic expectations. I demoed for 3 years before going live. All of my demo accounts were opened with $250. Because I knew I would at least put that much in.
When I first started out, I figured if I could just make $15 a day, that would be more than I had. When I doubled my account, I doubled my goal to $30 a day. Now, I just trade my system and what I’m happy with making for the day. I don’t want to get greedy. As that is the main reason for failure in my opinion.
I don’t even look at pips anymore as pips to me are not as important as lot sizing. Its all about size right? If you don’t think so, ask your wife or girlfriend.
All of my demo accounts were opened with $250. Because I knew I would at least put that much in.
When I first started out, I figured if I could just make $15 a day, that would be more than I had. When I doubled my account, I doubled my goal to $30 a day.
Dude, thats a 6% daily return, and a wee bit on the high side if you ask me.
Anyway, i’m using IBFX (interbank) trading microlots at the moment whilst learning the ropes and I’m still demo trading as well. You can trade anywhere from .1 of a lot and up to where ever your comfortable. In addition you can basically select just about any leverage setting you want from 400:1 down.
I chose IBFX just cause of the MT platform and the unlimited Demo account (it is supposed to expire after 20 days, but only does if you dont use it), i’m sure others are just as good.
I am demo trading with a $5k account balance cause that is where i will really start when i feel i’m ready, but no rush to do that as yet.
Now look back at that post and look how I put ‘‘if’’ in there. 15 pips a day is very doable for me. Thats why I started at that point. I realize that is a good return, but it doesn’t happen everyday, but on average.
EUR/USD is likely the easier to handle because the pip values don’t change as price does, which is the case with USD/CHF. Makes it that much easier for one just getting started to do risk calculations and the like.
Which leverage range should i start “Margin%” ?
As much as will allow you to trade the position size you will be trading based on the risk you are taking on each position.
Thanks to all good guys who writen babypip school, Everyday i learn something new and find answers to my questions:)
I just finished : The Number One Cause of Death for Forex Traders
Very honest and true espically this part:
"[U]Forex trading should be treated as a job or business. Don�t think that just because brokers allow you to use high leverage with a low minimum deposit that you can �make a quick <insert choice of currency here>� or �get rich quick�. Approach the currency markets with respect.
Be realistic in your expectations and be willing to properly educate yourself[/U]"