Hello everyone, first off I just want to say how awesome BabyPips is and what a great community you guys have here. I’ve been reading the forums for a while but this is my first time posting.
I’ve been successfully trading demo for about a week now and think I am ready to open a live account to at least gain some more experience and take it to the next level. In the BabyPips school it states that the number one reason why new Forex traders fail is because they fail to open an account with enough funds to allow for enough margin and leverage.
I’m considering opening a mini account with GFT Forex with $1000 and they offer a 400:1 leverage. My question is, is this a smart move or am I jumping the gun and need to wait and open an account with more funds?
In my opinion you are jumping the gun. One week of demo is not even enough time to learn how your platform works, let alone figure out a system or even learn the indicators. When you try a new system it always seems to have a winning streak off at first then the true system comes into play. Also if you only have $1000 then open a micro account. Don’t risk too much.
One week of successful demo trading means nothing. However, I do think you learn the fastest, take it more serious, and remember your lessons when real money is on the table.
$1000 is plenty to start with in general, but that brokers minimum lot size is 10k.
Depending on your strategy, you probably won’t be able to handle a string of losses/large drawdown trading a 10k lot. You probably won’t be able to set reasonable stops either, again depending on your strategy.
I’d look into Oanda or FXsol to start with after you demo their platform to learn it. Consider starting with a smaller amount of money as well, $250 or less is reasonable.
First thing first, 1,000 for a mini account is too little. You have to go micro. Secondly, I would encourage you to go to a live account when you feel the time is right. I think the sooner you move onto trading real money then you will gain real experience. Just be prepared to loss everything you put in and don’t get discouraged if you loss it all. Perhaps take only a tenth of what you where going to put in and start a live account with that and change your position sizing accordingly.
Firstly i think personally its not a smart move to trade with $1000 mini Lots and having 400:1… you are risking your whole protfolio.
I agree with swordofrue very much, you should start with Micro lot, build yourself from there… and 400:1 Nah, never go for such leverage At all. Its way risky
Consider 100:1 or max 200:1 thats all…
Make a plan, dont be greedy and think 1000 will get $10000 in a month or something… Smooth play.
$1000 is a good money to start with, But focus in trading Micro lot.
GFT is a good broker. But sometimes what i see spreads increases alot during news time, which is hard for a newbie at all to trade in.
However all the guys who replied are truely intellectual and i agree with whatever swordofrue suggested. You shall have the guts if you lose all the money, but if u lost it all dont lose it without not learning anything… Play around, it takes my friend… But once you learn from your mistakes, you rule.
For micro lot trading you can go with the broker i am live with STIFX. And there are other brokers too who offer micro lot trading, so go for it. And best luck from all of us.
And truely babypips rocks for sure…
Cheers.
Philipwa I am touched you agree with me A question for you, are you living in Washington by any chance? Also, I would like to give a shout out to Oanda, they allow ANY lot size! That is truly amazing! Also, a note on leverage, I don’t take advantage of more than 1:10. Remember leverage is a double edge sword and until you have a lot of experience you probably should keep the blades dull
Thanks for the advice guys, you really got me rethinking things. I would open a mini account and trade microlots but the only problem is that I have tried out alot of brokers and platforms and DealBook360 on GFT is the one I am most comfortable with and I feel it’s alot better than the others I have tried, especially in regards to charting. I have been demo trading with them starting with $5,000 and have been consistantly making profits trading regular 100K lots. So what i am probably going to end up doing is opening a mini account with them and start with $5,000 trading 10K lots and with 100:1 leverage.
And sorry but starting with $50 or $250 just seems kind of silly to me. If i’m going to do it I want to do it right.
A question for you, are you living in Washington by any chance? Also, I would like to give a shout out to Oanda, they allow ANY lot size! That is truly amazing! Also, a note on leverage, I don’t take advantage of more than 1:10. Remember leverage is a double edge sword and until you have a lot of experience you probably should keep the blades dull