…If pros trade like this, why do less experienced traders think they can succeed by [B]trading 100K standard lots with a $2,000 account[/B] or 10K mini lots with $250?
No matter what the forex brokers tell you, don�t ever open a �standard account� with just $2,000 or a �mini account� with $250…
I have to say that I’m confused.
I agree that you will be undercapitalized if you open a 2,000 account and then trade 100k standard lots.
But what if I trade [B]10K mini lots[/B] with a 2,000 account ?
This is good, right ?
Even if you’re usning propper money managament rules and risking only 2% of your account… that would still be enough for you to support several positions with 30 pips loss (for 1 PIP = 1 USD).
So that means one can still have some “fun” with a 2,000 account, trading 10K lots.
So that means opening a 2,000 account might not be a bad idea after all (providing that you only trade 10K).
What the babypips school is saying politely, which I do not have to,
is [U]“do not try to ice skate uphill”[/U] If the pros do not do it, why do
loser traders think they can?
Is it a bad idea to open a $2,000 account ?
But what if I trade 10K mini lots with a 2,000 account ?
This is good, right ?
I think it depends on what trading platform are you using. I personaly use Oanda where you can trade any amount you want - it can be even 0.01$, so there shouldn’t be any problems with that. Just adjust your trade size so you risk with 1 - 3% of your capital and go ahead. But that’s Oanda, I’m not sure about other brokers.
Hi Mike thanks for your reply.
I agree with your reply.
I think that the botomline is that it really doesn’t matter what size your account is, or the size of the lot you’re trading… as long as the following 2 are valid:
[ul]
[li]you’re risking 2% of your account each time[/li][li]you have enough “buffer” on your open position for when the market goes oposite to your expectation. In my case I usually set that between 20-40 pips.[/ul]It is all a matter of proportion.[/li]The bigger the account = the bigger the profit = the bigger the possible losses.
I started with about 500$ and am glad that I did, because I ended up giving much of that back TO the markers…I would suggest you start off with these small amounts first seeing as how your just considering to trade live, only trade a couple of cents first(find a broker that allows this, there are plenty), and only put in the remaining after about 3-5 months trading microlots semi-succesfully.
Would you rather blow 75%-100% of a small $500 account, or 2 grand? Your choice :), because it is almost gaurenteed you will one way or the other ATLEAST once
unless of course you somehow have the built in discipline to trade nano and micro lots on a 2k account knowing that you can trade larger…than knock yourself out, but to avoid temptation, just start smaller.
