Frankly, having a small trading balance isn’t your advantage! But till now, you have the chance, you just need to make sure your trading skill 1st & have to follow the money management rule so tightly!
Imo, when you start trading, you should trade within your comfort zone. Avoid risks that you can’t afford to take. If small accounts help you with that, then they are not really a problem.
After demo trading, you will only know what the live market looks like. But not exactly how it functions! For that, you will have to trade in the live market and find out. Now that, without experience, you may not be able to handle large capital, it would be best if you use a small amount to trade and test the live market.
No, small account is the best strategy for beginners to use since it reduces risks and losses while gaining live training experience.
Even experienced traders use small accounts to try their new strategy and skills to recover easily if there are losses.
When we are making less profits then we will have to make some efforts to increase them.
In a small account, the profit ratio also remains small. But small account is effective for new traders who are verdant at trading. But things are different for experienced traders because they have been here for a long term and deserved a better profit. So, small accounts are not suitable for the professional traders.
Nobody becomes a pro trader on the first day of trading. Then, why take a big risk when you are not ready in the first place? Also, take risks as per your risk appetite and knowledge.
No, it isn’t. It’s better to keep your risks small until you are sure about your trading skills. You will have plenty of chances in the future to take bigger risks. Till then, polish your skills with a small account.
I don’t see it as a problem. Infact as a beginner when you lack skills and experience it only makes sense to start with a small account. I too started small with aaafx and have gradually grown my account. The key, I believe, is to focus on survival instead of chasing huge profits. Many would say that using high leverage helps but I beg to differ. Leverage can grow your account abruptly but it can also kick you out of the market in case the trade doesn’t go in your favour.
Actually, it depends on your trading experience. If you’re a beginner trader and want to trade with minimal risks, it is really a good idea to start with a Cent account as it allows traders to use the micro-lot size of 0.01. However, you must understand that the lower the capital, the lower the profit it be.
In contrast, if you’re an experienced trader, you can start trading with a Standard account as brokerage services deliver better services and perks for standard account holders.
Not at all, there’s no harm starting from a small account; just that you don’t earn high with small accounts.
I started out with around a $100 deposit and things went great from there! I wouldn’t feel discouraged by what you read because there are different opinions out there, but there’s nothing wrong with smaller accounts. Some people may not feel comfortable or have the access to thousands of dollars off hand, so it’s very common.
I do not see any problem with small accounts. I think they are perfect for beginners who are trying to adjust their psychology according to the live account.
It is better to take time and learn rather than to jump into bigger accounts and lose.
Thx for this reply! In this actual time of my life i have the same issue and your response was very insightful!
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most aspects of trading setups are same. only thing that differs between big capitals and small ones are how large can be your stop losses. if you are a day trader or scalper it maybe not a serious problem but if you want to be a swing or position trader , as you need to use bigger stop losses , it is almost impossible to have proper risk management (recommended 1% risk). for example 1% of a 50$ account is only 50 cents.(5 pips on a micro lot trade).
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