Start Out Small, Gain Experience
When you are just starting out, be a small trader. Even if you have a lot of risk capital you should start out with a mini account. At this time you need to learn the industry and it’s terminology, the way your brokers does things, the way the platform works, how to use some indicators, how to control your emotions, how to manage your money, how to handle losses, how to handle winning trades, etc. If you need help starting out with a good strategy, I would highly recommend the free online forex trading course called “JumpStart”, which can help you consistently make 25-30 pips a day.
If you open an account with $250 or $2500 or more then you should only trade no more than 10% of your account at any one time. On a $250 account you should not trade any more than10% of your account at any time or $25. That equals out to 0.5 lots. Yes that is only about 50 cents per pip but you will be around to trade another day while you are learning. You could do 0.2, 0.2, 0.1 lots on three different trades for your 0.5 lots.
Look at it this way: 0.2 lots on 20 pips is about $4.00, if you do that for 20 days your account is up to $330, up by $80. This is a about a 32% increase for the month. If you do the 0.5 lots making 20 pips a day then you are up by $200 for a total amount of $450. This is about a 80% return for one month. I am not saying you will be able to do this in the beginning. I am saying you need to start out small while your are learning the forex market. The money is there if you are around long enough to get it. It is not a sprint, it is more like a marathon. You must think long-term.
You can be in a mini account for a long time and still make money. Use this time to analyze your good and bad trades. Many times you will learn more from your bad trades.
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5 Responses to “Start Out Small, Gain Experience”
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Since I have never traded before and I have looked at many other forex trading courses, with some of the most sillest guarantees. Such as making 100′s pips per day, and I am not saying you can’t do that, but give me a break. Why is your course free? Is it hopes of getting people to buy your platform, or what? There are several other sites that do offer a free trading course, but then they want you to spend hundreds and thousands of dollars on their “advanced courses”, or other things. Will your “free” course actually teach me how to trade, give me “education and knowledge” of the forex mkts, or simply just giving me little “tidbits” of information to “capture” me into getting other courses? Also where do you folks come from, I mean the USA, Germany, etc.?
Please respond if you wish. I figure that if I don’t get response then there is no reason for me to come back to your site.
Thanks
Don
Please respond to me and let me know
sir,how can i invest in mini forex trading?
kalaiselvi on September 25th, 2009 10:44 am go to the main page. Start with Jump Start, and go from there. This is what I have done and now working through Launch Pad. Learning a lot. Learning to get pips the right way.
@Don, I am new to trading as of Nov 2010, I’ve followed the jumpstart and I can honestly say, it works! Basically if you follow what the Norwoods outline you can be profitable. Understand I’m trading .50 lots and on my last 20 trades, I’m up close to $400.00.
I was skeptical at first, but I believe there are few people who are still honest and not just trying to get you for all you have.
Forex success takes time, patience, and dedication, you def need to start small and give yourself time to learn how to trade. Great article Pip Wrangler!