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How To Use Mini Forex Trading Accounts To Your Advantage

By : Peter Lim
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If you are desirous of entering the field of forex trading but are held back because of the fear of inadequate capital and insufficient knowledge, mini forex trading accounts may be a possible answer to your pressing need.

As a statistical fact, only about 10% of the traders are consistently profitable in trading. How then can you increases the chances of your being successful as a profitable trader, seeing that you are facing difficulties of capitalisation and skill?

Firstly, you only need a very low capital to trade in forex using a mini forex trading account. In a mini forex trading account, forex brokers are willing to give you a very high margin. The leverage is as high as 200:1. In other words, in the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1 (10,000/50 = 200).

By trading mini lots like this, your risk is reduced. Your potential loss is substantially less because of the small capital involved when compared to the normal full trading account.

Secondly, I am sure you have heard the sorrowful tales of those who lost their money trading in forex or stocks and shares or futures and commodities. As only about 10% of forex traders consistently make money, the next question is how can you increase the chances of your success as a mini forex trader?

In trading, applied knowledge is the key to wealth creation.

So your task is to acquire that important knowledge and learn to trade profitably. With the advent of technology and the high speed desktop computers, it is now possible to shorten the learning curve. By finding a mentor who is experienced and successful, you can very quickly clone yourself into the mould of your mentor, following his most profitable trading techniques.

You can now gain years of trading experience by spending weeks on a trade simulator, practising your best selected forex trading strategy under the guidance of your mentor. If that is not enough, you can still reduce the risk further by using a demo account before you start trading.

Coupled with the use of a mini forex trading account, the risk is substantially reduced in trading.

Once you are consistently profitable in your simulated trades and your profitable trades are substantially more than your losing trades, then it is time for you to apply that knowledge and enter the real world of forex trading using a mini forex trading account.

By adopting a proven trading technique from a successful mentor, acquiring the necessary trading experience and skills with a trade simulator and practising on a demo account, you will have the best opportunities to start creating wealth from day one of your trading career as a forex trader.

Be aware of the downside risks as well because like all trading, mini forex trading do carry some risk. Follow the risk management principles in your trading methodology and keep to your safety stops. You can be on the way to become a profitable and successful trader with mini forex if you follow this proven method of learning and education.

About the author:
Be sure to read Part #2 of this article to discover how you can acquire the powerful trading knowledge from an experienced mentor to trade mini forex successfully in the shortest possible time. Click here now for Mini-Forex Trading Part #2 or visit forextrading-secrets.blogspot.com" target=_blank>http://forextrading-secrets.blogspot.com


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