Mini Forex?

Question

Does anyone have experience trading Mini Forex? Is it profitable? 200:1 leverage on some accounts. What minimums do you trade with and work your way up to?

Answer 1

You can buy $100,000 worth of currency with $1,000 margin in a standard account. This would be the purchase of one standard lot, at 100:1 leverage. Or you can get 200:1 leverage in a mini account. Wo, how much trouble can we get into now?

Just because you "can" doesn't mean you "should" trade with this kind of leverage. Trading stocks with 2:1 leverage is considered risky.

What most people don't seem to realize, is that you don't have to trade with leverage at all. Just put $100,00 in your account, buy one lot, and you have zero leverage. Or put $10,000 into a mini account and buy one mini-lot, or $1000 and buy one micro-lot.

You can see that by controlling leverage, trading the Forex doesn't have to be any more risky than trading stocks or any other investment.

Go ahead and use real money to trade while you learn like most foolish people looking to get rich quick. But if you're smart, you'll trade a simulator while you learn for at least six months before you invest a penny. Here's the simulator site:

Other Forex sites:

http://www.expertworx.com/pm/Forex%20Market%20Educational%20Game.htm

http://www.premieretradeai.com/

http://www.forextv.com/FT/Video.jsp?channel=41

http://umgarticles.atspace.com/forex-trading.htm

http://www.fxstreet.com/rates-charts/usdollar-index/

http://forex-trading.bluecollarnews.com...

master trader?
http://www.robbooker.com/

useful e books:
http://www.rapidforex.com/
http://www.traderssecretcode.com...
http://www.1forextrading.com/

Answer 2

Forex Trading stands on 3 legs.
1. Psycholgy of Trading : Taking profit, loss. Handling profitable position and losing position

2. Money Management : Position sizing, Account equity..

3. Trade Management ie, Entry, Exit, Stop Loss, Profit trails


Your question relates to Money Management. Which is a good start. Many traders spent 80% of their time on Trade Management, looking at charts and analysing them to tatters. And miss the whole picture which is to grow equity

2 tips :
http://www.geocities.com/lcming/ForexForex

1. Win more than you lose in terms of numbers of trades
2. Win more than you lose in absolute $ terms
(2) is more important than 1.
eg, even if you lose 1 trade out of 2, but your absolute amount is 2:1 you might still come out ahead.

But you must manage this two ratio.
There is an utility tracker to help you monitor this
@ http://www.geocities.com/lcming/Forexbooks

I have answerd sveral questions on Forex and has been selected as best answers before. Just go to my profile.

or @ http://www.geocities.com/lcming/Forexhome

Good Luck !

Answer 3

More is the leverage, there is more risk involved. At the same time chance of making profit is also higher. So you need to make your decision wisely in order to make profit from forex.

Answer 4

It is very risky, at 200:1 leverage, if your currency goes down by only 1/2%, you lose it all.

Answer 5

1