I totally agree with the idea that trading small account will only demotivate you.
It can be good to trade microlots persuing educational purposes. I also think that it is better to learn to trade real money instead of trading demo for too long. However, when you become more and more experienced and skillfull, you’ve got to expand your trading budget, otherwise you’ll just simply lose any interest in this activity and give it up. It is of vital importance to keep on growing, however, you cannot grow as a professional trader if your budget doesn’t grow. It should expand hand in hand with your skills and knowledge and that is the only way for you to keep motivated and carried away by trading.
1 Like
Trading small accounts brings about lots of fuss and small profits.
I wouldn’t say that trading microlots is an ultimately useless thing. I mean that I used to trade small amount of money in order to learn how to trade. Such an approach made me understand what trading is all about and whether it is suitable for me. I share the idea that it is next to impossible to learn to trade on demo account. There are so many different factors which demo accounts really miss such as psychological factor, slippages and spreads and so on. That is why it is much more efficient to learn trading from investing real money into it. Surely, it was too scary for me to deposit all of my savings into it right away, which is why I started with trading microlots.
However, I do support the idea which was expressed in this post that trading small accounts doesn’t really make sense. You’ve got either to take huge risks in order to get some tangible profits, or you’ve got to follow money and risk management and get ultra small profits.
2 Likes
In a nutshell, you are right on the note that trading with a small account is not worth it. However, I do completely agree with all your statements. Trading on a small account does not mean one has to take more risk. It is to be 2%-5% per trade. Thus, if someone trades with a small account, his profit would not be an amount that he can meet his expenses. Last but not the least, a trader must be consistent and skilled if he wants to deal an account with decent amount of investment.
2 Likes
I am currently in a small account challenge and I agree with this. The level of stress is very very different. Cause of this account, I start to doubt to enter trades that usually give me big wins.
1 Like
I also started from 100 USD and then gradually increased my equity as I saw progress. I never used leverage more than 1:100 to avoid unnecessary risks
1 Like
Trading small accounts is for learning. You are not going to make 100k on a 1k account just won’t happen. But if you open a 1k account and at the end of the year you are up 10 percent, you are possibly ready to move up to 5k, rinse and repeat until you are moving a yard per month, you will be rich just Like Mike
The Ever Attentive VIPER
1 Like
I think as a new trader, we should start with a small account.
1 Like
Honestly speaking the account size doesn’t really matter instead your focus should be on on establishing consistency and a trading system that works.
2 Likes
Trade only amount that you afford to lose. When for minimum 6 months small account will be profitable, then it is worth of upgrading it to bigger, else loosing less is less painful than loosing big.
1 Like
Trading small amount is really worth when you’re new to forex. I always say to a newbie rather to go demo or start from small amount till you not become confident.
1 Like
A tiny fraction, allowing you to own a small amount of a publicly-traded company.
You can make money through dividends, but also through trading as your stock values go up (or lose if they go down).
There are many different strategies for trading, even for those who don’t have a lot of money to start with.
1 Like
Post Answer
Trading with a small account is worth only for beginners looking for live trading experience and lower risks.
For higher profits and better trading conditions, the standard account is a better choice.
1 Like
New traders should use a small account to practice. The forex market is very volatile, and if they don’t have enough experience, they will lose all their money.
1 Like
@jacob.N I agree with you because as a beginner one can not take high risks. Over a period of time once he gains some experience then he can opt for trading a big account, but should still trade only the amount one can afford to lose.
1 Like
You have to understand that trading with small account is very useful for beginner who cannot and do not want to take a high risk in trading. That’s why many brokers are offering services so that you can try trading in small account, knowing that there is no large profit can be made.
1 Like
Starting with a small account is reasonable because you’re in your learning phase and take minimum risks. However, in forex, the more risk you take the more you earn. To make considerable profits, you can’t trade with small capital.
1 Like
For beginner traders using a small account is an advantage because smaller accounts have lower risks and capital involved in it.
Big account or small account, the skills and discipline required are the same. If you can make 6% profit per month, keep doing it month after month. That way you will double your account in a year.
If you can double your account in a year, keep doing it year after year.
How is it possible to make 6% per month? You need a consistent strategy which you can follow consistently.
Having a bigger account is like having a bigger engine in your car - it won’t make you a better driver, you will just arrive at the scene of the accident sooner.
3 Likes
I really liked it, inspired!
1 Like
It all relies on how good you are at trading and managing your money.
1 Like