There are a large number of people who try forex trading for the first time. As their numbers have increased, brokers have responded by making it easy to open a micro forex account with little money. Some brokers allow beginners to operate an account with less than $ 50. With a micro account you will have an opportunity to learn forex mechanics and even if you lose for the first time this will not be big money.
But trying to trade with such coverage margin is also a problem. Either you will get bored very quickly with tiny profits whenever the trade and move away from the idea of a micro forex account, or you’ll start taking big risks in order to make a little more money. Taking huge risks in the currency market is almost sure to delete your account in the short term. Then again, you have two options – recharge your account with another $ 50 or more and go through the same way of some minor wins, followed by a great loss and an empty account – or simply decide that the currency trading is only for the professionals.
However, you can use a micro forex account in a more sensible way that can produce the income you expect … in time. You can benefit from a small account, but you should not start too small. It is more realistic to start with a reasonable fee (from $ 200 to $ 600 would be OK), find a broker, and then use an appropriate system for a small account.
Not all systems are perfect for small accounts. You’ll see systems that promotes the success rates of the promise in the nineties (per cent), but beware. With a micro forex account probably also used very high levels of leverage, and high leverage means big losses when the inevitable leak occurs, so that you can not afford to take big risks.
For the beginner, with a little more money (and should not be in this business if you have a reasonable sum for work), another good idea is to use a forex account for micro-enterprises in the practice or testing of a system without taking too many risks. You may well have used a demo account and play money already, but not a bad idea to go live with real money as soon as possible. If you use an account you can trade micro, but keep the position size very small.
This allows you to make trades, take risks in the real world with real money, and discover how you react to stress in today’s market – even if you’re not playing very high stakes. If you do well, you can then gradually put more money in your account and eventually spend thinking about moving to a higher level and more adventurous, the mini account.
It is a must to read unbiased reviews before purchasing any forex currency software.