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Learning to Trade the Forex Market Essential Elements of a Successful Trader How to Read a Chart & Act Effectively 45 Ways to Avoid Losing Money Trading Forex Transition from Demo Trading to Real Money Trading Beware of Fraud at Forex Seminars About Forex Demo Accounts About Forex Micro Accounts |
About Forex Micro AccountsWhen foreign currency brokers began serving individual traders online in the late 1990s, the minimum trade size was often worth approximately $100,000. While real money accounts could be opened with only a few thousand dollars for highly leveraged trading, the financial risks for new traders when trading currency pair lot sizes of 100,000 was considerable - especially when real account trade execution was often different from what new traders were used to using online demo systems. You should not underestimate the psychological challenges of switching from demo trading to real money trading. Fortunately, a better option is available for becoming acclimated to real money trading and testing your psychological ability to withstand the routine losses and gains associated with day trading. Micro accounts offering currency pair lot sizes of 1,000 each allow a lower risk transition for new traders from demo trading with no money at risk to real money forex trading. Not all brokers offer micro accounts. Two firms that do are FXCM Micro and PFG FX - with PFGFX Lite. Any loss you incur in micro trading can more easily be considered to be part of the "tuition" you pay within the learning process necessary to become a confident trader. In day trading, confidence is everything and not likely to be developed overnight. If you cannot handle the psychological stresses associated with trading micro lots with real money at risk, there is no point in scaling up to larger lot sizes. Individuals in search of a high-paying profession often spend years in post-graduate education and tens of thousands of dollars or more attaining an MBA, law degree or medical degree. With this in mind, we do not think people interested in developing a substantial income as independent forex traders should expect to develop the necessary skills within a few weeks or months. Very few people have the inate ability to get rich quickly as day traders. If you take the time to gain extensive experience with micro lot trading before scaling up to larger financial stakes, you will be more likely to succeed long-term and perhaps to eventually become richer than most lawyers and doctors.
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