Mini Forex Trading Strategies

Mini Forex trading is a good place to start for people just entering the forex market. The mini forex allows you open an account that is at a reduced amount. It requires a smaller capital compared to regular forex accounts, a minimum of $300. WAIT, etoro offers a forex trading account at only $50. They also give $200 opening bonus. Signup with Etoro. With mini forex trading, you can control a $10,000 currency position.

The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

What are the perks of mini forex trading? With just a small stake involved, you get to enjoy free trading platform and benefits that regular forex traders get to enjoy. These would include state-of-the art trading software, charts and resources. With a leverage of 200:1, the trader can trade in a commodity regardless of the amount of money available to him or her.

Mini forex trading also allows for lesser losses as the contract size is only 1/10th the size of a standard forex account. There is also greater flexibility with regards to customizing trades and minimizing risks. Ideal for those with smaller capital, the trader has a chance of investing in more areas of the market with lesser risk as there is lesser capital to be lost. He need not be hesitant with his transactions as there is lesser capital involved.

With the same freedom enjoyed by regular forex traders, a mini forex trader can trade as many lots as he likes. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. In this way, the trader also builds up his confidence in his trading skills at the same time slowly increase his profit and trading position in the market. He gets to manage his money before going for the higher stakes in regular forex trading

The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. For practice, a neophyte in forex trading can practice through paper trading. But in the real market, he can start small with mini forex trading. There is lesser capital involved and the practice builds up the trader's trading gameplan for future explorations in regular, higher stakes forex trading

Lets look at a mini forex trading example:

On a regular account, a 35-pip stop loss is equal to a loss of $350. Since a mini forex account is just 1/10th of the standard forex account, this is amounting to $35 only. If you trade in units of 10,000, the trader is given more flexibility in terms of customizing his trades and lessening the risks of loss. You can try mini forex with (Etoro Start account at $50, they give you $200 free, so it becomes $250 acccount.

They say that business is for the risk-taker. But if you're just starting out, it's wise to be cautious and carefully think about your moves. In the world of foreign trading, mini forex accounts provide the wisest and best option especially for the novice trader. It requires lesser capital, lesser emotional investment, and slowly builds up your skills and confidence as a trader. It's a stepping stone to prepare the trader for the higher stakes in the more advanced world of foreign trading.