Forex mini trading is the perfect beginning to learn how to trade forex. It seems that everybody who starts to trade forex always sees and hears about these traders who have come from being dirt poor to being millionaires in just a span of a month. Now, I'm not saying that's impossible, but it is a little hard to swallow. The problem is many new traders believe that kind of hype, and go on to destroy their account in less than a week. Forex mini trading is the perfect remedy for that.
Usually two things happen when a person first starts to trade forex. Like, the example above, they hear so many success stories, that they think it can instantly happen to them. So they completely over leverage themselves. They put $2,000 in their account and trade using full lot sizes and wonder what happened to their money?
The other scenario is when people over demo. Demo trading should really not be a long term plan. You should try it out, get used the trading system, check for its accuracy and then start trading for real.
There is NO WAY demo trading can simulate trading with real money. Things like money management, psychology, how you handle stress cannot be taken account if your not playing for real money. How many times do you hear about a person who made hundreds if not thousands of pips on their demo account, only to trade miserably when they open a real account? There is a reason for it.
Forex mini trading is the perfect solution for that. It teaches a trader about money management because you are playing with real money but its not enough money that causes undue stress (at least it shouldn't). You really feel like you're in the market with all the big boys but without as much at stake.
So to answer the question of whether forex mini trading will make you rich or not? By itself, probably not. But it gives you two important lessons that every successful trader must learn: Money Management and How to Handle Stress. Frankly I don't know any millionaire traders who do not possess these critical traits.
| Jim Buhs has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex successfully was on a plain chart with no indicators, his profits soared. Click here to find out what he used to trade price action. |
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