Newbie Forex Traders Need To Start Small And Think Big

November 21, 2018
Newbie Forex Traders Need To Start Small And Think Big November 21, 2018 Clive Nelson

One of the most important questions that a newbie trader often has to deal with is just how much money should they put down on a single trade.

When starting out, everything looks very appealing and new traders get lured into spending most of their capital from the outset.

Remember it is always good to start small, especially when you are new to forex trading. What is more important is how you go about using your capital as it could very well determine if you have a successful forex trading enterprise or end up losing it all.

Start Out With Small Investments

There are thousands of forex traders who have been extremely successful with their forex trading and have made millions of dollars. However, these successful traders will be the first to tell you that their success did not come overnight but took a number of years. They started out small and as they found success and gained confidence, they increased their investments and earned bigger profits.

The new generation of forex traders are not very good at the waiting game. They want big profits immediately and are willing to take unnecessary risks that will make them rich overnight. However, they usually end up losing most of their investments and then go away defeated believing that they were never good at forex trading.

Leverage Different Forex Accounts

Before newbie traders can start investing, it is always advisable for them to learn as much as they can about forex investing. One of the best things they can learn at the start is the different forex accounts available to them and how they can use each account to their advantage.

No Capital: Many forex newbies are not aware that there are account options available that will allow them to get into trading without any capital. This is because forex dealers offer free demo accounts that come with a no deposit bonus. This means they don’t have to invest any money from their pocket but can use the free bonus money to start trading.

Min Investment Accounts: These accounts usually have a max of $250 and the mandatory amount to invest is around 0.01 percent. These are great for newbie forex traders.

Med Investment Accounts: Traders who have built up their confidence can try this account which ranges between $1,000 to $5,000. Day trading and swing trading are great using this account.

High Investment Accounts: When you are sure you have hit the big league and have a lot of capital to play with, you can upgrade to this account which usually starts out with a minimum of $50,000. This is the highest level and exposes the trader to all of the different trading platforms.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.

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